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January 5, 2000

DONATION OR EXCHANGE OF MOVABLE PROPERTY
BETWEEN POLITICAL SUBDIVISIONS

By:John Gallagher
Staff Attorney

On October 23, 1999, Louisiana voters approved a new constitutional amendment which opens the door to a cooperative effort among municipalities and governmental entities. Act No. 856 became operative when the voters approved Act No. 1395, a proposed amendment to Article VII, Section 14(E) of the Constitution of the State of Louisiana, allowing the donation or exchange of property between or among political subdivisions for purposes of public safety. This action authorized the enactment and implementation of Act No. 856, which was passed by the Louisiana Legislature during the 1999 Regular Session of the Louisiana Legislature. Act No. 856 enacted LA. R.S. 38:2320, later redesignated as LA. R.S. 38:2319.21, becoming effective on November 24, 1999.

LA. R.S. 38:2319.21 allows political subdivisions to donate or exchange movable surplus property between and among political subdivisions whose functions include public safety. Smaller cities and towns can benefit from this statute by obtaining used equipment from other municipalities through donations and exchanges. It is reminded that the equipment involved must pertain to public safety. Now, smaller communities needing to upgrade existing equipment, such as fire trucks or law enforcement vehicles, have an additional way to obtain this equipment without draining the public funds or passing along the financial burden to their citizens.

Details regarding specific donations or exchanges under the provisions of LA. R.S. 38:2319.21 should be discussed among the municipalities involved in the transaction. Attached is a copy of LA. R.S. 38:2319.21. Feel free to contact me at the LMA if you have any questions at (225) 344-5001 or (800) 234-8274, or in writing at P.O. Box 4327, Baton Rouge, Louisiana 70821-4327.