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 122 Original 2018 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 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 nonstate 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 (GOB) funding of nonstate 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 nonstate projects but requires the
commissioner of administration (commissioner) to divide 10% of the GOB allocation of cash line
of credit granted to nonstate projects on a pro rata basis of population and number of homesteads in
each parish in proportion to the population and number of homesteads throughout the state. The
remaining 15% of the GOB cash line of credit capacity granted to nonstate projects shall be
prioritized for highway, bridge, or economic development projects as defined in proposed law.
Proposed law requires that of the portion of GOB cash line of credit capacity each fiscal year granted
to state projects, the commissioner shall direct no less than $3M to each DOTD highway district to
fund projects deemed to be either deferred maintenance projects or drainage projects within the
geographic boundaries of each district. Further requires the commissioner shall designate no less
than 50% of the remaining GOB line of credit capacity to be directed to highway and bridge projects.
Present law requires nonstate 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.
(2)Projects for which a nonstate 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 nonstate entity projects for which the nonstate
entity has demonstrated its inability to provide a local match.
Present law requires the JLCCO to make recommendations to the commissioner 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 State Bond Commission (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.
Applicable to the funding of all nonstate entity projects included in the capital outlay budget for
fiscal years commencing on and after July 1, 2018.
Effective July 1, 2018.
(Amends R.S. 39:112(C)(2)(b), (E)(1), (2)(intro. para.), and (2)(b) and (c), and 122(A))