HLS 172ES-18 ORIGINAL
2017 Second Extraordinary Session
HOUSE BILL NO. 8
BY REPRESENTATIVE ZERINGUE
CAPITAL OUTLAY: Provides relative to the local match requirements for non-state
entities applying for capital outlay funding
1 AN ACT
2To amend and reenact R.S. 39:112(E)(2)(introductory paragraph) and to enact R.S.
3 39:112(E)(3), relative to capital outlay; to provide with respect to the capital outlay
4 process; to provide for the local match requirements for certain capital outlay
5 projects; to add certain requirements to the exception to the local match requirement
6 for certain non-state entity projects; to repeal certain exceptions to the local match
7 requirement; to provide for applicability; to provide for an effective date; and to
8 provide for related matters.
9Be it enacted by the Legislature of Louisiana:
10 Section 1. R.S. 39:112(E)(2) (introductory paragraph) is hereby amended and
11reenacted and R.S. 39:112(E)(3) is hereby enacted to read as follows:
12 ยง112. Capital outlay act
13 * * *
14 E.
15 * * *
16 (2) Non-state Except as provided for in Paragraph (3) of this Subsection for
17 Fiscal Year 2017-2018, non-state entity projects shall require a match of not less than
18 twenty-five percent of the total requested amount of funding except:
19 * * *
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 172ES-18 ORIGINAL
HB NO. 8
1 (3) For Fiscal Year 2017-2018, the commissioner may reduce the local
2 match requirement for non-state entity projects to not less than ten percent of the
3 total project cost if the non-state entity completes the following requirements:
4 (a) Executes a statement of sponsorship which shall include certification by
5 the non-state entity that all lands, easements, and rights-of-way for the project will
6 be acquired, that all permits to construct the project will be secured, and that all pre-
7 construction activities including planning, designing, and engineering for the project
8 will be completed, all without cost to the state. The non-state entity shall execute the
9 statement of sponsorship prior to requesting a reduction in the local match
10 requirement from the commissioner.
11 (b) Executes an agreement to assume all maintenance and operation costs for
12 the project and all future alterations to the project without cost to the state.
13 * * *
14 Section 2. The provisions of this Act shall be applicable to the funding of all non-
15state entity projects included in the capital outlay budget for Fiscal Year 2017-2018.
16 Section 3. This Act shall become effective upon signature by the governor or, if not
17signed by the governor, upon expiration of the time for bills to become law without signature
18by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
19vetoed by the governor and subsequently approved by the legislature, this Act shall become
20effective on the day following such approval.
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 8 Original 2017 Second Extraordinary Session Zeringue
Abstract: Adds authority for the local match requirement to be reduced to 10% if certain
requirements are met.
Present law requires the legislature to enact a capital outlay bill which incorporates the first
year of the five-year capital outlay program including the appropriation of funds from
specified sources for capital projects to be expended during the next fiscal year. Present law
establishes a process for applying for capital outlay funding as well as a process for
reviewing and evaluating applications.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 172ES-18 ORIGINAL
HB NO. 8
Proposed law retains present law.
Present law requires non-state entities applying for capital outlay funding to provide a match
of not less than 25% of the total requested funding amount with the following exceptions:
(1)Projects deemed to be an emergency by the commissioner of administration.
(2)Projects for which a non-state entity has demonstrated its inability to provide a local
match. Present law requires the division of administration to promulgate rules
establishing a needs-based formula for determining the inability of a non-state entity
to provide the required local match.
(3)Projects for rural water systems servicing less than 1,000 customers to extend or
connect waterlines to other water systems.
Proposed law retains present law but adds authority for the commissioner to reduce the local
match requirement for non-state entity projects for FY 2017-2018 to not less than 10% of
the total project cost if the non-state entity meets the following requirements:
(1)Executes a statement of sponsorship which includes certification that all lands,
easements, and rights-of-way will be acquired, that all permits to construct the
project will be secured, and that all pre-construction activities such as planning,
designing, and engineering will be completed, all without cost to the state.
(2)The non-state entity executes an agreement to assume all maintenance and operation
costs for the project and all future alterations to the project without cost to the state.
Proposed law requires the non-state entity to execute the statement of sponsorship prior to
requesting a reduction in the local match requirement from the commissioner.
Proposed law is applicable to the funding of all non-state entity projects included in the
capital outlay budget for Fiscal Year 2017-2018.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 39:112(E)(2)(intro. para.); Adds R.S. 39:112(E)(3))
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.