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 189 Original 2017 Regular Session DeVillier
Abstract: Reduces the cash line of credit capacity designated for non-state projects to no more than
10%; repeals the exception to the local match requirement for non-state projects which
demonstrate their inability to provide for their 25% local match; and requires the Joint
Legislative Committee on Capital Outlay (JLCCO) to approve state and nonstate project line
of credit recommendations before the division of administration submits the list to the State
Bond Commission for funding.
Present law requires the governor to submit his capital outlay budget which implements the first year
of the five-year program capital outlay program and the bond authorization bill for the sale of bonds
to fund projects included in the bond portion of the capital outlay bill to the legislature no later than
the 8
th
day of each regular session.
Present law authorizes capital outlay budget requests submitted after Nov. 1
st
to be included in the
capital outlay act if the budget request meets all of the applicable requirements as provided in present
law, except for time of submission, and the project is an economic development project
recommended in writing by the secretary of the Dept. of Economic Development (DED), the project
is an emergency project recommended in writing by the commissioner of administration, the project
is for a non-state entity which meets certain present law requirements, or the project is located in a
designated disaster area and it meets certain present law requirements.
Proposed law retains present law.
Present law defines the term "economic development" as the following:
(1)Improvements on public or government-owned property for attracting or retaining a specific
new or existing manufacturing or business operation that benefits La.
(2)Facilities or improvements on public or government-owned property that generate new,
permanent employment or which help retain existing employment.
(3)Facilities or infrastructure improvements on public or government-owned property necessary
for the manufacturing plant or business to operate.
Proposed law changes the definition to "economic development project" and expands the definition
of the term to mean a recruitment or retention project undertaken or sponsored by DED which meets
all of the criteria set out in present law. Present law limits general obligation bond funding of non-state projects to no more than 25% of the
cash line of credit capacity for projects in any fiscal year.
Proposed law reduces the amount of cash line of credit capacity for non-state projects from no more
than 25% to no more than 10% of the cash line of credit capacity. Proposed law further requires the
commissioner to divide the portion of cash line of credit capacity granted to non-state projects
equally among the parishes.
Proposed law requires that of the portion of cash line of credit capacity each fiscal year granted to
state projects, the commissioner shall designate no less than 50% for highway and bridge projects.
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 repeals the present law exception for non-state entity projects for which the non-state
entity had demonstrated its inability to provide a local match.
Present law requires the JLCCO to make recommendations to the commissioner of administration
concerning non-state 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 State Bond Commission (SBC).
Proposed law changes present law by requiring the commissioner to make recommendations to the
JLCCO concerning state and non-state 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 July 1, 2017.
(Amends R.S. 39:112(C)(2)(b)(intro. para.), (E)(1) and (2)(b) and (c), and 122(A))