Louisiana House Bill HB370

Louisiana 2011 Regular Session

• Introduced: 4/25/11
• Refer: 4/25/11
• Report Pass: 5/10/11
• Engrossed: 5/18/11
• Refer: 5/19/11
• Report Pass: 6/19/11
• Enrolled: 6/22/11
• Chaptered: 7/7/11
• Passed: 7/7/11

Caption

Authorizes the State Bond Commission to issue bonds secured by unclaimed property monies for the completion of I-49 (EN SEE FISC NOTE SD EX See Note)

Impact

The bill significantly impacts Louisiana's financial and legal landscape regarding how transportation projects can be funded. By utilizing unclaimed property funds, the bill not only creates a revenue source outside of traditional taxation methods but also sets a precedent for public-private partnerships in the completion of essential infrastructure. Furthermore, it introduces mechanisms for contesting bond validity, thereby ensuring transparency and legal recourse for stakeholders concerned about the bond issuance process.

Summary

House Bill 370 authorizes the State Bond Commission to issue bonds that are secured by unclaimed property receipts to fund the completion of the I-49 project in Louisiana. The bill allows for the proceeds from these bonds to be used specifically for the construction of parts of Interstate 49, particularly sections running from Shreveport to the Arkansas border, and from Lafayette to New Orleans. With the expectation of leveraging federal funds, this project aims to enhance transportation infrastructure within the state, expected to have significant economic implications for the region through improved logistics and access.

Sentiment

The general sentiment around HB 370 appears to be supportive, as there seems to be a recognition of the need for improved infrastructure within Louisiana. Advocates argue that completing Interstate 49 will bolster economic growth and improve travel safety. However, there are subtle concerns regarding reliance on unclaimed property and the potential implications for future funding priorities, which could open up debates about economic equity and resource allocation across the state.

Contention

Notable points of contention include the legal protections afforded to bondholders and the provision that the issuance of these bonds shall not create any obligation for the state to levy taxes or make appropriations for their payment. This raises questions about accountability and the long-term financial commitments of the state. Furthermore, while the bill provides mechanisms for contesting bond validity, there are concerns about how accessible these processes might be for the average citizen or local entities who may want to challenge the issuance on the grounds of public interest.