Can a Louisiana parish coroner's office issue bonds to advance future opioid settlement payments?

Plain-English summary

The Jefferson Parish Coroner asked whether his office could independently issue bonds against its share of a $33 million opioid settlement allocated to Jefferson Parish. The parish intended to bond out its own share but not the portions that other entities, including the coroner's office, would receive. The opinion answers the coroner's question only.

Why the coroner's office qualifies. Louisiana's constitution places the office of coroner within the article concerning the judicial branch. Other statutes classify coroners as political subdivisions for specific purposes: La. R.S. 39:1302 under the Local Government Budget Act, La. R.S. 42:62(9) for dual officeholding, and La. R.S. 42:1441 for state liability coverage. The AG concluded that coroners' offices are political subdivisions under Louisiana law.

What the office may do. La. R.S. 39:1410.60(A) requires political subdivisions to obtain the State Bond Commission's consent and approval before issuing bonds. On that basis, the AG concluded that a coroner's office may issue bonds for its anticipated opioid settlement funds with that approval. The opinion does not decide the bonding authority of any other settlement recipient.

When it may proceed. The coroner's share had not yet been fixed. The AG said bonding against that income was premature until an amount certain of the parish's award was identified as the Jefferson Parish Coroner's Office share. Once that happens, it recommended contacting the State Bond Commission for authority to issue bonds.

What this means for you

If you are the Jefferson Parish Coroner. Identify the amount allocated to your office before pursuing bonds against that anticipated income. Then contact the State Bond Commission for its consent and approval, as the opinion recommends.

If you are another Louisiana coroner. The AG's analysis concerns coroners' status as political subdivisions and the bond statute's approval requirement. The opinion decides the requested question about Jefferson Parish's opioid settlement allocation; it does not evaluate a different office's revenue or a proposed bond issue.

If you are reviewing the parish's settlement plans. The parish's decision to bond out its own share did not answer whether the coroner could bond out the coroner's share. This opinion says the coroner's office may seek approval after its amount is known. It gives no opinion about sheriffs, health agencies, or other recipients.

Common questions

Q: Why does the AG treat a coroner's office as a political subdivision?
A: Although the coroner's office appears in the constitution's judicial-branch article, the AG cites statutes that classify coroners as political subdivisions for the Local Government Budget Act, dual officeholding, and state liability coverage.

Q: Can the coroner issue these bonds without State Bond Commission approval?
A: No. The opinion quotes La. R.S. 39:1410.60(A): political subdivisions may issue bonds only with "the consent and approval of the State Bond Commission."

Q: Why was an immediate bond issue premature?
A: The amount of settlement money allocated to the Jefferson Parish Coroner's Office was uncertain. The AG said an amount certain must be identified as the office's share before bonding out that anticipated income.

Q: Does this opinion authorize every recipient of the parish settlement to issue bonds?
A: No. It addresses only the Jefferson Parish Coroner's Office. Other recipients' legal status and bonding authority are outside the question the AG answered.

Q: Does the opinion approve a specific transaction or bond amount?
A: No. It says the coroner should contact the State Bond Commission once the office's share has been determined. The Commission's consent and approval would still be needed.

Background and statutory framework

Constitutional placement. La. Const. art. V, § 29 creates the office of coroner within the judicial-branch article of the Louisiana Constitution. The constitutional location is one reason coroners can look like state-level judicial actors.

Statutory classification. Three Louisiana statutes treat coroners as political subdivisions:

• La. R.S. 39:1302 (Local Government Budget Act) groups coroners under "political subdivisions."
• La. R.S. 42:62(9) (Dual Officeholding and Dual Employment Law) lists coroners along with sheriffs, clerks of court, tax assessors, and registrars of voters as separate political subdivisions for that Part.
• La. R.S. 42:1441 (state liability coverage) classifies coroners along with other political subdivisions for liability purposes.

Bonding statute. La. R.S. 39:1410.60(A) provides that political subdivisions may issue bonds with the consent and approval of the State Bond Commission. The provision is the general gatekeeping requirement for local-government public debt in Louisiana.

Opioid settlement context. The Jefferson Parish Coroner's request reflects the national opioid multidistrict litigation against pharmaceutical manufacturers and distributors. The Jefferson Parish Coroner said its office would receive part of the parish's $33 million settlement award over 18 years. Jefferson Parish intended to bond out its own share, and the coroner asked whether its office could independently bond out its portion.

Liz Murrill is the Attorney General of Louisiana. Ryan M. Seidemann signed Opinion 24-0029 as Assistant Attorney General.

Citations and references

Constitutional provisions:

• La. Const. art. V, § 29 (creation of coroner's office within judicial-branch article)

Statutes:

• La. R.S. 39:1302 (Local Government Budget Act; political subdivision classification)
• La. R.S. 39:1410.60 (bond issuance authority)
• La. R.S. 39:1410.60(A) (State Bond Commission consent requirement)
• La. R.S. 42:62(9) (dual officeholding; political subdivision definition)
• La. R.S. 42:1441 (state liability coverage; political subdivision classification)

Source

• Landing page: https://www.ag.state.la.us/Opinions
• Original PDF: https://www.ag.state.la.us/Opinion/Download/24-0029

Original opinion text

STATE OF LOUISIANA
DEPARTMENT OF JUSTICE
OFFICE OF THE ATTORNEY GENERAL
P.O. Box 94005
BATON ROUGE, 70804-9005

LIZ MURRILL
ATTORNEY GENERAL

June 6, 2024

OPINION 24-0029

13 CORONERS
Honorable Gerry Cvitanovich, M.D.
Coroner, Jefferson Parish
La. Const. art. V, sec. 29
La. R.S. 42:62
La. R.S. 39:1302
La. R.S. 42:1441
La. R.S. 39:1410.60

[Harvey, LA 70058]

With the permission of the State Bond Commission, coroner's offices are political subdivisions that are authorized by law to issue bonds.

Dear Dr. Cvitanovich:

You have requested an opinion from this office regarding whether the Jefferson Parish Coroner's Office ("JPCO") qualifies as a governmental entity that is entitled to bonding authority under the law. Specifically, you have related that, as a result of recent settlements of multidistrict lawsuits against opioid manufacturers to which JPCO was a party, your office shall receive a portion, for disbursal over the next 18 years, of the $33 million dollar settlement award allocated to Jefferson Parish. Although Jefferson Parish intends to bond out its share of the award, it does not intend to do so for other entities (including JPCO) that will receive portions of the award. Based upon these facts, you seek an opinion from this office that answers the question of whether JPCO meets the qualifications under Louisiana law to independently bond out its portion of the award.

Coroners occupy dual roles under Louisiana law. Though they are constitutionally-created entities and serve some functions as state entities, statutory law classifies coroners as "political subdivisions" of the State. The Local Government Budget Act also classifies coroners under the category of "political subdivisions" in La. R.S. 39:1302. Accordingly, though constitutionally-created as part of the State judicial branch, it is our opinion that coroners' offices are political subdivisions under Louisiana law.

Pursuant to La. R.S. 39:1410.60(A), "political subdivisions" may only issue bonds with "the consent and approval of the State Bond Commission." Accordingly, because coroners are "political subdivisions" they may issue bonds for the anticipated opioid structured settlement funds allocated to them with "the consent and approval of the State Bond Commission." Importantly, though, you note in your opinion request that "...the exact amount of these settlement funds to be allocated to the Coroner is uncertain at this time...." Unless and until an amount certain of the $33 million award allocated to Jefferson

OPINION 24-0029
Honorable Gerry Cvitanovich, M.D.
Page 2

Parish is identified as JPCO's share, it is premature to bond out that anticipated income. Once that amount has been determined, we recommend that you contact the State Bond Commission for the authority to issue any such bonds.

We hope that this opinion has adequately addressed the legal issues you have raised. If our office can be of further assistance, please do not hesitate to contact us.

With best regards, I am,

Very truly yours,

LIZ MURRILL
ATTORNEY GENERAL

Ryan M. Seidemann
Assistant Attorney General

LM/RMS/cw

1 See La. Const. art. V, sec. 29 (creating the office of coroner within the portion of the Constitution that deals with the judicial branch of State government). Cf., La. R.S. 42:62(9) which, for dual office holding purposes, classifies coroners as a "political subdivision" of State government along with other local government units. See also La. R.S. 42:1441 (classifying coroners along with other "political subdivisions" for the purposes of State liability coverage).