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

Plain-English summary

Jefferson Parish Coroner Gerry Cvitanovich, M.D., asked the Louisiana AG whether his office could issue bonds against its share of the multidistrict opioid settlement against pharmaceutical companies. Jefferson Parish itself intended to bond out its larger share of the $33 million the parish was allocated, but the parish did not plan to bond out the smaller shares earmarked for entities like the coroner's office. The coroner wanted to do it independently. The AG said yes, with two important conditions.

The first issue was whether the coroner's office is the kind of governmental entity that can issue public debt at all. The AG worked through the dual nature of the coroner role under Louisiana law. La. Const. art. V, § 29 creates the office of coroner in the article that deals with the state's judicial branch, so coroners do have a state-judicial character. But for many statutory purposes Louisiana classifies coroners as "political subdivisions" of the state. The Local Government Budget Act (La. R.S. 39:1302) puts coroners in the "political subdivisions" category. La. R.S. 42:62(9) does the same for dual-officeholding analysis. La. R.S. 42:1441 does it for state liability coverage. Taken together, the AG concluded that coroners' offices function as political subdivisions for purposes that matter to bonding authority.

That classification matters because Louisiana's general bond statute, La. R.S. 39:1410.60(A), allows "political subdivisions" to issue bonds, but only with "the consent and approval of the State Bond Commission." So the legal authority to issue bonds is there, conditional on State Bond Commission sign-off.

The second issue was timing. The coroner's request mentioned that the exact dollar amount the coroner's office would receive from the $33 million parish allocation was not yet certain. The AG flagged this as a practical problem. Bonding out an uncertain future revenue stream is premature; once the coroner's allocation is set, the office can return to the State Bond Commission with a specific figure and a specific bond proposal. The AG recommended waiting until the coroner's share is identified, then proceeding with the Commission.

What this means for you

If you are a parish coroner sitting on incoming settlement disbursements. The legal authority to bond against the future payments is there. To use it, do three things: (1) wait until your office's share is finalized in writing, not just estimated; (2) prepare a written application to the State Bond Commission documenting the revenue stream, the proposed bond structure, and the use of proceeds; and (3) engage qualified municipal bond counsel before filing, because the Commission's approval process tests technical compliance with state debt laws as well as the project's public purpose.

If you are advising a parish government on settlement-fund administration. When a parish receives a global allocation that is then divided among several local entities (coroner, sheriff, public health, addiction services), each downstream entity may independently bond against its own share. The parish does not have to bond out the entire allocation. Decisions can be entity-by-entity.

If you are a State Bond Commission staffer reviewing the application. The legal basis for treating coroners as political subdivisions for bonding purposes is settled by this opinion and prior law. The substantive questions for the Commission will be the standard ones: is the future revenue stream sufficiently identified, is the debt service plan sound, does the use of proceeds serve a public purpose, and is the security structure consistent with La. R.S. 39:1410.60.

If you are a bond counsel structuring this transaction. Pay particular attention to the settlement payment schedule and assignability under the settlement agreement. Opioid settlements typically run over many years (18 years here). Investors will want clarity on subordination if the parent allocation entity (the parish) faces claims against the same funds. Pledge-of-receivables language and intercept mechanisms common in tobacco-settlement bond transactions are a useful structural analogue.

If you are a journalist or watchdog covering local opioid-settlement spending. The opinion confirms that coroners can borrow against future settlement payments. That mechanism can accelerate funding for forensic upgrades or addiction-related coroner services, but it also locks in the use of those settlement dollars to debt service for years. Public meetings of the parish, the coroner's office, and the State Bond Commission are the places to track whether and how that borrowing happens.

Common questions

Q: Aren't coroners part of the judicial branch? How can they issue bonds?
A: Coroners are constitutionally placed in the judicial-branch article (La. Const. art. V, § 29), but for most statutory purposes Louisiana law classifies them as political subdivisions. The AG looked at La. R.S. 39:1302, La. R.S. 42:62(9), and La. R.S. 42:1441 and concluded that the political-subdivision classification controls for bonding purposes.

Q: What does "with the consent and approval of the State Bond Commission" actually involve?
A: The State Bond Commission reviews proposed public debt for compliance with statutory authority, financial soundness, and conformity with the state's overall debt management policy. The Commission meets monthly. The application package typically includes a description of the proposed debt, projected debt service, source of repayment, use of proceeds, and consent from the issuing body's governing authority.

Q: Why did the AG tell the coroner to wait?
A: Because the coroner's share of the $33 million was not yet a fixed number. Bonding out an unknown future revenue stream is impractical because you cannot size the debt, and the Commission will not approve a vague proposal. Once Jefferson Parish identifies the coroner's specific allocation in dollars, the office has a number it can bond against.

Q: Can other Louisiana coroners use this opinion as authority?
A: The opinion's reasoning generalizes. Any Louisiana parish coroner facing the same fact pattern (future settlement disbursements, desire to bond out an income stream) can rely on the political-subdivision analysis here and approach the State Bond Commission. Specific facts will affect the Commission's review.

Q: Does this only apply to opioid settlements?
A: No. The opinion's reasoning is about general bonding authority, not opioid-specific. Any future revenue stream of the coroner's office that the Commission accepts as bondable security could in principle be bonded under La. R.S. 39:1410.60. Practically, future settlement streams and certain dedicated fee revenues are the realistic candidates.

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. Louisiana parishes and various sub-entities were allocated shares of negotiated settlements payable over multiple years. Jefferson Parish's $33 million allocation was structured to be disbursed over 18 years. The parish planned to bond out its own portion. The coroner asked for separate authority to do the same with the smaller coroner-specific share.

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

Best-effort transcription from a scanned PDF. Minor errors may remain, the linked PDF is authoritative.

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

[Footnote: 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).]