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 235 Engrossed 2016 Regular Session Talbot
Abstract: Requires the Joint Legislative Committee on Capital Outlay (JLCCO) to approve all line
of credit recommendations before the division of administration submits the list to the State
Bond Commission (SBC) for funding, local match waivers, and priority changes of capital
outlay appropriations.
Present law requires the legislature to enact a capital outlay bill which incorporates the first year of
the five-year capital outlay program as required by the present constitution which shall include the
appropriation of funds from specified sources, including proceeds of bonds, for capital projects to
be expended during the next fiscal year.
Present law limits general obligation bond funding of non-state entity projects to no more than 25%
of the cash line of credit capacity for projects in any fiscal year. Further defines non-state projects
as projects not owned and operated by the state except those determined by the commissioner of
administration to be a regional economic development initiative or regional health care facility
operated in cooperation with the state.
Present law requires non-state entity projects to provide a match of not less than 25% of the total
requested amount of funding. Present law provides for exceptions to the local match requirement
for certain emergency project, certain rural water system projects, and projects for non-state entities
which have demonstrated an inability to provide a local match provided a needs-based formula has
been established by rule.
Proposed law retains present law but requires the designation of a non-state project by the
commissioner of administration as a regional economic development initiative or regional health
care facility operated by the state to be approved by the JLCCO prior to the match requirement
provided for in present law being waived or prior to the project being considered a state project for
purposes of the 25% funding limitation for non-state projects.
Proposed law further provides that beginning July 1, 2016, all requests for the waiver of the local
match requirement shall be approved by the JLCCO prior to the waiver becoming effective. A
waiver not approved by the JLCCO shall be inapplicable and of no effect.
Present law limits general obligation bond cash line of credit capacity to $200 million annually
adjusted for construction inflation from 1994.
Proposed law changes the present law limitation of general obligation bond cash line of credit capacity from $200 million annually adjusted for construction inflation from 1994 to $250 million
annually adjusted for construction inflation from 2017.
Proposed law requires that prior to the submission to or approval by the Interim Emergency Board
(IEB) or the SBC of (any request to change the priority designation of a capital outlay appropriation
for any state or non-state entity as set forth in the comprehensive capital outlay budget) the request
shall first be submitted to and approved by the JLCCO. Requires the JLCCO shall conduct a hearing
on requests to change a priority designation of a capital outlay appropriation within 30 calendar days
of receiving the request and shall notify the IEB and the SBC in writing within five calendar days
of such hearing of any priority change approved by the committee. Further prohibits a priority
change from being submitted to the IEB unless the priority change has first been submitted to and
approved by the JLCCO.
Present law prohibits work from commencing and contracts from being entered into for any project
contained in the capital outlay act unless and until funds are available from cash sources indicated
in the act, or from the sale of bonds or from a line of credit approved by the SBC. Present law
exempts certain contracts for the Dept. of Transportation and Development from this prohibition.
Present law requires the JLCCO to make recommendations to the commissioner of administration
concerning nonstate entity projects to be granted lines of credit. Further requires the commissioner
to submit the list of projects to be recommended for lines of credit to the JLCCO a minimum of five
days prior to submission of the list to the SBC.
Proposed law changes present law by requiring the commissioner to make recommendations to the
JLCCO concerning state and nonstate entity projects to be recommended for lines of credit. Further
requires the commissioner to submit the list of recommendations to the JLCCO no less than 30 days
prior to the meeting date of the SBC in which the lines of credit are to be considered for funding.
Proposed law requires the JLCCO to make final recommendations by either approving the list of
recommendations or making changes to the list. Only projects which received approval from the
JLCCO can be submitted to the SBC for consideration of funding.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 39:112(E)(1) and (2) and (F) and 122(A); Adds R.S. 39:112(H)) Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the original
bill:
1. Require the JLCCO to approve the designation of a non-state entity project as a regional
economic development initiative or a regional healthcare facility prior to the designation
relieving a non-state entity of its local match requirement or prior to the project being
considered a state project for purposes of the 25% limitation of funding non-state
projects.
2. Require, beginning July 1, 2016, all requests for the waiver of the non-state match to be
approved by the JLCCO prior to the waiver becoming effective.
3. Change the general obligation bond cash line of credit capacity to be funded each year
from $200 million adjusted for construction inflation beginning in 1994 to $250 million
adjusted for construction inflation beginning in 2017.
4. Require requests to change the priority designation of a capital outlay appropriation for
any project included in the comprehensive capital outlay budget to first be approved by
the JLCCO prior to being submitted to the IEB and the SBC.
5. Require the JLCCO to conduct a hearing on requests to change a priority designation
within 30 calendar days of receiving the request and to notify the IEB and the SBC in
writing within five calendar days of such hearing of any priority change approved by the
committee.