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 Reengrossed 2017 Regular Session DeVillier
Abstract: Adds restrictions to the allocation of cash line of credit capacity for capital outlay
projects and requires the Joint Legislative Committee on Capital Outlay (JLCCO) to approve
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 follows:
(1)Improvements on public or government-owned property for attracting or retaining a 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 a manufacturing plant or business to operate.
Proposed law changes the definition of "economic development project" as a project which meets
one of the following:
(1)Improvements on public or government-owned property for attracting or retaining a new or
existing manufacturing or business operation that benefits La. and generates new, permanent employment or which helps retain existing employment.
(2)Facilities or infrastructure improvements on public or government-owned property necessary
for a manufacturing plant or business to operate.
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 retains the amount of cash line of credit capacity for non-state projects but requires the
commissioner to divide 10% of the portion of cash line of credit granted to non-state on a pro rata
basis of population and number of homesteads in each parish in proportion to population and the
number of homesteads throughout the state. The remaining 15% of the cash line of credit capacity
granted to non-state projects in any fiscal year shall be prioritized for highway, bridge, or economic
development projects as defined in proposed law.
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.
Proposed law requires the establishment of 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.
Proposed law adds a provision exempting projects included within Section (1)(A) of Original House
Bill No. 2 of the 2017 R.S. of the Legislature from the requirements of present law relative to
requiring entities to re-submit and update capital outlay applications. Further deems these projects
to have timely resubmitted capital outlay applications for Fiscal Year 2017-2018, and as such
authorizes them to be eligible for cash and noncash lines of credit for Fiscal Year 2017-2018.
Applicable to the funding of all non-state entity projects included in the capital outlay budget for
fiscal years commencing on and after July 1, 2017.
Effective July 1, 2017.
(Amends R.S. 39:112(C)(2)(b), (E)(1) and (2)(b) and (c), and 122(A))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the original
bill:
1. Change the definition of "economic development project".
2. Delete the reduction in proposed law of the amount of general obligation bond (GOB)
funding of non-state projects each year.
3. Change the division of the amount of cash capacity of GOB funding reserved for non-
state entities by requiring 10% of the amount of GOB funding to be divided on a pro rata
basis of population and number of homesteads and the remaining 15% to be prioritized
for highway, bridge, or economic development projects.
4. Change the local match requirement for non-state projects from not less than 25% of the
total requested amount of funding to not less than 25% of the total project cost.
5. Authorize the 25% local match requirement to be reduced to 10% if certain requirements
are met.
6. Add an exemption for projects in Section (1)(A) of House Bill No. 2 Original version of
this 2017 R.S. of the Legislature from certain requirements in present law regarding the
re-submission of project applications.
The House Floor Amendments to the engrossed bill:
1. Delete authorization that the 25% local match requirement can be reduced to 10% if
certain requirements are met. 2. Delete basis of the local match requirement of 25% of the total project cost.