Could Louisiana's private security board buy land for an office without the state capital outlay process?

Plain-English summary

The Louisiana State Board of Private Security Examiners asked whether it could buy land and eventually build an office without going through the state capital outlay process. The 1998 attorney general opinion said it could not. Although the board had statutory authority to acquire property, it was a state budget unit and therefore had to follow the capital outlay procedures for the proposed project. The opinion's syllabus said this remained true when the board used self-generated funds.

The office also pointed to the law making the commissioner of administration an essential party to transactions involving state immovable property. Its answer addressed both the capital outlay process and the commissioner's participation.

Currency note

This opinion was issued in 1998. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

State agency boards at the time

The opinion treated the board as a budget unit because it was a state agency with separate appropriations. The board's authority to purchase property did not remove the capital outlay requirements for land and office space.

State property officials at the time

For a transaction involving state immovable property, the quoted statute made the commissioner of administration an essential party. The opinion applied that provision to the board's proposed acquisition.

Common questions

Q: Could the board use its own funds to avoid the capital outlay process?
A: The opinion said no. Its syllabus expressly applied the process even when the board used self-generated funds.

Q: Did the board have legal power to buy property at all?
A: The office said the board was given authority to purchase or acquire property, but that authority remained subject to the state procedures it identified.

Q: Who had to participate in the land transaction?
A: The opinion quoted R.S. 39:11 (A), under which the commissioner of administration was an essential party to transactions involving state immovable property.

Background and statutory framework

The board proposed buying land for a future office building and asked whether R.S. 37:3274(B)(10) let it bypass capital outlay procedures. The office relied on La. R.S. 39:101's annual capital-project request process and the definition of a budget unit in R.S. 39:2(7). It classified the board as a budget unit and said the capital outlay requirements applied. It then cited R.S. 39:11 (A) for the commissioner's role in acquiring state immovable property.

Citations and references

• R.S. 37:3274(B)(10) (board property authority discussed in the opinion)
• La. R.S. 39:101 (capital-project request process quoted in the opinion)
• R.S. 39:2(7) (budget unit definition discussed in the opinion)
• R.S. 39:11 (A) (commissioner of administration's role)

Source

• Landing page: https://www.ag.state.la.us/Opinions
• Original PDF: https://www.ag.state.la.us/Opinion/Download/98-0213

Original opinion text

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

~,~te ol
One American Place
301 Main Street, Suite 600
DEPARTMENT OF JUSTICE
P.O. Box 94005
CIVIL DIVISION
TEL.: (504) 342-7013
BATON ROUGE
FAX (504) 342-2090

RICHARD P. IEYOUB
70804-9005
At-tORN EY GENERAL
J U N E 0 21998

OPINION NUMBER 98-213

90-B-1 PUBLIC LANDS

R.S. 37:3274, 39:2, 39:11, 39:101-128
Mr. Frank D. Blackburn
Blackburn & Sulzer, Attorneys
State Board of Private Security Examiners
5937 Jones Creek Road
must comply with capital outlay process in
Baton Rouge, LA 70817
acquiring land and building office space for
its use, even when using self-generated funds.
Dear Mr. Blackburn,

You have requested the opinion of this office on behalf of the Louisiana State Board of Private Security Examiners (the Board) regarding the purchase of land with the intention of eventually constructing an office building to house the Board. You inquire specifically regarding procedures to be used in conjunction with the provisions of LSA- R.S. 37:3274(B)(10), and whether this statute allows the Board to acquire this property and erect an office facility thereon without following the capital outlay process for the acquisition of property.

La. R.S. 39:101 states, in pertinent part:

A. (1) Except as provided in Paragraph (2) of this Subsection, no later than the first day of November each year, the head of each budget unit shall present to the facility planning and control section of the division of administration a request to all expenditures for capital projects falling within the definition contained in R.S.
39:2(9). A copy of the request shall also be submitted by the head of each budget unit to the legislative fiscal office, the Joint Legislative Capital Outlay Committee, the House Committee on Appropriations, the House Committee on Ways and Means, the Senate Committee on Finance, and the Senate Committee on Revenue and Fiscal Affairs. Such annual requests shall contain and constitute the feasibility study required pursuant to Article VII, Section 11(C) of the Constitution of Louisiana and shall include projects proposed to be funded within the next five years.

Page 2

Mr. Frank D. Blackburn
OPINION NUMBER 98-213
Page -2-

According to the LSA-R.S. 39:2(7), the "budget unit" referenced in the above statute includes any spending agency of the state for which separate appropriations are made, or which operates upon dedicated revenues, or which may be declared to be budget units by the Board of Liquidation of State Debt. The Louisiana State Board of Private Security Examiners is an agency of the state for which separate appropriations are made and is given the authority to purchase or acquire property. Since the Board is classified as a budget unit, it must also comply with the capital outlay requirements and procedures set forth in La. R.S. 39:101- 128.

Lastly, we must look to R.S. 39:11 (A) which provides as follows:
mo The commissioner of administration shall administer and supervise lands, waterbottoms, and facilities owned or leased by the state of Louisiana. The commissioner shall be an essential party to all transactions involving immovable property in which the state has an interest.
No such immovable property shall be acquired, transferred, leased, or encumbered without the commissioner being a party to the transaction.

In conclusion, it is our opinion that pursuant to the provisions of R.S.
37:3274(B)(10), the Louisiana State Board of Private Security Examiners, as an agency of the state, must follow the capital outlay procedures and requirements found in the LA. R.S. 39:101-128 as well as the provision found in R.S. 39:11 (A).

I trust that this answers your inquiry. Please advise if we may be of any further assistance to you in this matter.

Very truly yours,

R!CHARD P. IEYOUB
ATTORNEY GENERAL A

Q,~ANT ATTORNEY GENERAL