HLS 15RS-1094 ORIGINAL
2015 Regular Session
HOUSE BILL NO. 756
BY REPRESENTATIVES OURSO AND LAMBERT
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
TRANSPORTATION: Provides relative to Grant Anticipation Revenue Vehicles
(GARVEE) Bonds
1 AN ACT
2To amend and reenact R.S. 48:27(A), (B), (C), (D)(1)(a), (E), (H)(12), and (J), relative to
3 Grant Anticipation Revenue Vehicles Bonds; to provide for technical corrections; to
4 provide for the definitions of certain terms; to provide relative to the authority of the
5 State Bond Commission; and to provide for related matters.
6Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 48:27(A), (B), (C), (D)(1)(a), (E), (H)(12), and (J) are hereby
8amended and reenacted to read as follows:
9 ยง27. Grant Anticipation Revenue Vehicles
10 A. Short title. This Act Section shall be known and cited as the "Grant
11 Anticipation Revenue Vehicle Act of 2002".
12 B. Legislative findings and determinations. (1) The Legislature of
13 Louisiana hereby finds and determines that the rapid growth of the economy of this
14 state has prompted new and ever-increasing uses of public highways, roads, and
15 other transportation infrastructure, and it is critical to the well-being and quality of
16 life of the citizens of this state that the state address, on an accelerated basis, the
17 long-term transportation needs of this state. The Legislature of Louisiana further
18 determines that current transportation funding mechanisms do not provide adequate
19 revenues to keep pace with the increasing demands of the state's transportation
20 system.
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1 (2) By utilizing revenue anticipation bonds for the financing of state
2 transportation projects that may be financed, in whole or in part, with federal
3 transportation funds, a significant amount of up-front revenues can be generated for
4 such transportation projects. This will enable the design and construction of
5 transportation projects on an accelerated basis. Utilizing revenue anticipation bonds
6 to finance federal-aid transportation projects and state transportation projects will
7 result in significant cost savings to the state, since such transportation projects can
8 be completed at present day costs and at an accelerated pace.
9 (3) The Legislature of Louisiana further finds and declares that the bonds
10 authorized herein constitute revenue bonds as provided in Article VII, Section 6 of
11 the Constitution of Louisiana and the payment of the bonds with the amounts
12 authorized herein is permitted under Article VII, Section 27 of the Constitution of
13 Louisiana as part of the department's program for state highway construction.
14 (4) It is hereby determined that the issuance of the bonds and the program
15 as herein authorized are in all respects public and governmental purposes for the
16 improvement of the health, safety, welfare, comfort, and security of the people of the
17 state, and that said purposes are public purposes and that the State Bond Commission
18 on behalf of the state of Louisiana will be performing an essential governmental
19 function and meeting a public obligation in the exercise of the powers conferred
20 upon it by this Act Section.
21 C. Definitions. Whenever used in this Act Section, unless a different
22 meaning clearly appears in the context, the following terms shall mean the following:
23 (1) "Act" means this Act.
24 (2) "Bonds" means bonds, notes, or other evidences of indebtedness.
25 (3)(2) "Constitution" means the constitution of the state, as amended
26 Louisiana Constitution of 1974.
27 (4)(3) "Department" means the Department of Transportation and
28 Development of the state of Louisiana.
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1 (5)(4) "Federal transportation funds" means funds paid or reimbursed to the
2 department by the United States Department of Transportation including, without
3 limitation, future Federal Highway Administration obligational authority or Federal
4 Highway Administration reimbursement funds and any other monies payable under
5 Title 23 of the United States Code, as amended from time to time.
6 (6)(5) "Qualified federal-aid transportation project" means any state project
7 that may be financed, pursuant to Article VII, Section 27(B) of the Constitution of
8 Louisiana, in whole or in part, with federal transportation funds means any project
9 to be constructed, in whole or in part, with monies appropriated out of the
10 Transportation Trust Fund, Article VII, Section 27 of the Constitution of Louisiana,
11 including, but not limited a new bridge across the Mississippi River connecting
12 Louisiana Highway 1 to Louisiana Highway 30.
13 (7)(6) "State" means the state of Louisiana.
14 (8)(7) "State Bond Commission" means the State Bond Commission of the
15 state, acting on behalf of the state.
16 (9)(8) "State matching funds" means fees, rates, rentals, taxes, tolls, charges,
17 grants, or other receipts or income derived by or in connection with a transportation
18 project or undertaking, other than federal transportation funds, that may be used by
19 the department to pay the costs of any qualified federal-aid transportation projects
20 or state transportation projects.
21 (10)(9) "State transportation project" means any state transportation project
22 other than the projects enumerated in Act No. 16 of the 1989 First Extraordinary
23 Session of the Louisiana Legislature, including, but not limited a new bridge across
24 the Mississippi River connecting Louisiana Highway 1 to Louisiana Highway 30.
25 D. Power to issue bonds; repayment; principal amount of bonds.
26 (1)(a) The State Bond Commission, or its successor, on behalf of the state,
27 is hereby authorized to issue bonds for the purpose of financing any qualified
28 federal-aid transportation project or state transportation project, including, but not
29 limited a new bridge across the Mississippi River connecting Louisiana Highway 1
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1 to Louisiana Highway 30, secured by a pledge of and payable from any of the
2 following:
3 * * *
4 E. Resolutions; trust agreement, publication; peremption. The State Bond
5 Commission shall authorize the bonds by a resolution or resolutions adopted by the
6 State Bond Commission. However, the State Bond Commission shall not authorize
7 the issuance of bonds pursuant to this Section unless such bonds and the projects to
8 be funded by them have been previously approved by the Joint Committee on
9 Transportation, Highways and Public Works House Committee on Transportation,
10 Highways and Public Works and the Senate Committee on Transportation, Highways
11 and Public Works. The bonds issued pursuant to this Section may also be secured
12 by a trust agreement by and between the State Bond Commission and one or more
13 corporate trustees or fiscal agents which may be any trust company or bank having
14 the powers of a trust company within or outside the state. Such resolution or trust
15 agreement may provide that the trustee bank shall hold the proceeds of the bond
16 pending expenditure for projects as approved by the Joint Legislative Committee on
17 the Budget. The State Bond Commission after authorizing the issuance of bonds by
18 resolution shall publish once in the official journal of the state, as provided by law,
19 a notice of intention to issue the bonds, which notice shall include a description of
20 the bonds and the security therefor. Within thirty days after the publication, any
21 person in interest may contest the legality of the resolution, any provision of the
22 bonds to be issued pursuant to it, the provision securing the bonds, and the validity
23 of all other provisions and proceedings relating to the authorization and issuance of
24 the bonds. If no action or proceeding is instituted within the thirty days, no person
25 may contest the validity of the bonds, the provisions of the resolution pursuant to
26 which the bonds were issued, the security of the bonds, or the validity of any other
27 provisions or proceedings relating to their authorization and issuance, and the bonds
28 shall be presumed conclusively to be legal. Thereafter no court shall have authority
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1 to inquire into such matters.
2 * * *
3 H.
4 * * *
5 (12) Complete authority. This Section does and shall be construed to
6 provide a complete method for the doing of the things authorized hereby. No
7 proceedings, notice, or approval shall be required for the issuance of any bonds or
8 of any instruments or security therefor or any credit enhancement except as provided
9 herein. The provisions of this Act Section shall be liberally construed for the
10 accomplishment of its purposes.
11 * * *
12 J. Powers. The powers conferred by this Act Section shall be in addition and
13 supplemental to, and not in substitution for, and the limitations imposed by this Act
14 Section shall not directly or indirectly modify, limit, or affect, the powers conferred
15 to the department or the State Bond Commission by any other law.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 756 Original 2015 Regular Session Ourso
Abstract: Provides relative to the authorization of the State Bond Commission to issue
Grant Anticipation Revenue Vehicles (GARVEE bonds).
Present law authorizes the State Bond Commission to issue GARVEE bonds to finance the
accelerated construction of certain state transportation projects.
Proposed law retains present law.
Present law defines "state transportation project" as "any state transportation project other
than the projects enumerated in Act No. 16 of the 1989 First Extraordinary Session of the
Louisiana Legislature." (TIMED projects)
Proposed law adds that "state transportation project" shall also be defined as "including but
not limited a new bridge across the Mississippi River connecting Louisiana Highway 1 to
Louisiana Highway 30."
Present law provides for the pledge of certain federal highway funds received by the state
as security for the bonds.
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Present law provides that such bonds shall be issued by the State Bond Commission but only
after the issuance has been approved by the Joint Committee on Transportation, Highways
and Public Works. The Joint Legislative Committee on the Budget also approves
expenditures of the proceeds held by trustee banks. Further provides that the aggregate
amount of principal and interest on all bonds issued under this authority shall not exceed
10% of annual federal highway funds.
Proposed law provides for technical corrections.
(Amends R.S. 48:27(A), (B), (C), (D)(1)(a), (E), (H)(12), and (J))
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