Louisiana House Bill HB115

Louisiana 2016 Regular Session

• Introduced: 2/17/16
• Refer: 2/17/16
• Refer: 3/14/16
• Report Pass: 5/2/16

Caption

Requires the Joint Legislative Committee on Capital Outlay to approve line of credit recommendations for nonstate entity projects (EG NO IMPACT GF EX See Note)

Impact

The bill modifies existing laws to establish a clearer framework for capital outlay funding that includes more stringent checks on project approvals. This could lead to a more uniform application of funding policies, particularly benefiting projects that can significantly impact regional economic development or healthcare. By increasing the required advance notice for line of credit recommendations from five days to a minimum of 15 days before submission to the State Bond Commission, HB 115 allows for more thorough deliberations and prioritizations by the JLCCO, potentially improving project viability and accountability.

Summary

House Bill 115 aims to amend the capital outlay process by requiring the Joint Legislative Committee on Capital Outlay (JLCCO) to approve all line of credit recommendations for both state and non-state entity projects. The bill stipulates that any project designated as a non-state initiative that seeks a waiver of the local match requirement must be approved by the JLCCO prior to the waiver taking effect. This new process enhances oversight regarding the allocation of public funds and introduces a more structured approach to managing capital outlay budgets, ensuring that state interests are safeguarded in the funding process.

Sentiment

Discussion surrounding HB 115 reveals a generally favorable sentiment towards the new requirement for JLCCO oversight, as it aims to address concerns about misallocation of funds or prioritization of projects. Supporters argue that this measure will enhance fiscal responsibility and ensure that capital projects align more closely with state development goals. However, some critics express concerns that the increased bureaucracy may delay important projects and inhibit rapid responses to emerging needs, particularly in emergencies or critical infrastructure situations.

Contention

One notable point of contention relates to the waiver of the local match requirement. While the bill seeks to ensure that only justified requests are approved, some stakeholders argue that the need for JLCCO approval could hinder local non-state entities, especially in regions that may not have readily available funds for matching requirements. The balance between ensuring accountability in public spending and providing timely funding for essential projects may lead to ongoing debates among legislators and policymakers.