Answer |
|
No. According to the terms of the statute itself, R.S. 33:2955 applies to:
■ Municipalities;
■ Parishes;
■ School boards; and
■ Any other political subdivisions of the state as defined in LA Const. Art. VI, Section 44.
La. Const. art. VI, § 44(2) defines “Political subdivision” as a “parish, municipality, and any other unit of local government, including a school board and a special district, authorized by law to perform governmental functions.”
In the case of City Courts, there is no authority stating that City Courts are specifically subject to R.S. 33:2955.
City Courts in existence at the time the 1974 La. Constitution was adopted were retained from the 1921 La. Constitution by Article V, Section 15. Thus, City Courts are clearly part of the judicial branch. Yet, City Courts are specifically defined as political subdivisions subject to the Local Government Budget Act pursuant to R.S. 39:1302(e). The Audit Law at R.S. 24:513(A)(3) includes City Courts as local auditees. Further, the Louisiana Governmental Audit Guide provides that given the fiscal dependence of the city court on the municipality, City Courts are often considered a part of the municipal reporting entity.
Although it may be unclear whether City Courts are subject to R.S. 33:2955, many subject themselves to it as part of their investment policy, according to audit reports submitted to the LLA. As a good business practice, R.S. 33:2955 is the safest way to invest public funds. Until there is some authoritative guidance from the Courts, the Legislature or the Attorney General in the case of those public entities whose status is under R.S. 33:2955 remains unclear, the LLA will continue to recommend R.S. 33:2955 as a sound investment policy for these entities.
Louisiana Legislative Auditor website: 07/05/2025 12:19:53 AM
|