Louisiana Senate Bill SB233

Louisiana 2011 Regular Session

• Introduced: 4/25/11
• Refer: 4/25/11

Caption

Provides for the establishment of the Louisiana Infrastructure Bank for the financing of eligible projects. (8/15/11)

Impact

The bill is expected to significantly affect state laws related to the financing of infrastructure projects. By creating an independent entity that can incur debt and issue bonds, SB233 allows for the provision of financial assistance to governmental units and private entities engaged in infrastructure development. Importantly, loans and financial commitments facilitated through the bank will not count as net state tax-supported debt, thereby easing potential burdens on the state's financial obligations. Additionally, the bank will be exempt from taxation, which may incentivize investments and project financing.

Summary

Senate Bill 233 proposes the establishment of the Louisiana Infrastructure Bank, a dedicated entity aimed at financing eligible public infrastructure projects across the state. The bill outlines the creation of a revolving loan fund managed by a board of directors, with participation from various state officials and representatives from the banking community. This infrastructure bank is designed to enhance mobility and safety, promote economic development, and improve the quality of life for Louisiana residents by funding essential infrastructure improvements.

Sentiment

The sentiment surrounding SB233 appears to be generally positive among proponents who highlight the necessity of a structured approach to fund critical infrastructure projects in Louisiana. Supporters argue that a dedicated infrastructure bank could streamline funding processes and enhance investment in public infrastructure, which is crucial for the state’s growth. However, there may be concerns regarding the oversight and governance of the bank, particularly regarding how funds are allocated and managed.

Contention

Notable points of contention may arise concerning the potential centralization of power within the infrastructure bank and the financial implications for local governments. Critics may express concerns about the governance structure, particularly about the composition of the board of directors and the appointment processes, which could affect local input in decision-making. As the bank will prioritize projects based on feasibility and economic benefit, discussions about equity in project selection and funding distribution may also emerge, emphasizing the need for transparency and accountability in its operations.