HLS 18RS-519 ORIGINAL
2018 Regular Session
HOUSE BILL NO. 478
BY REPRESENTATIVES BACALA AND DAVIS
FUNDS/FUNDING: Dedicates a portion of the state sales and use taxes on sales of motor
vehicles for transportation projects based on a cost-benfit analysis
1 AN ACT
2To amend and reenact R.S. 47:481 and R.S. 48:77, relative to the dedication of revenues to
3 transportation related matters; to change the dedication of certain taxes imposed on
4 motor vehicles; to provide for the creation of the Highway Capacity Fund as a
5 special treasury fund; to provide for deposits into the fund; to provide for the uses
6 of the fund; to provide for the determination of transportation projects to receive
7 funding out of the fund; to provide for an effective date; and to provide for related
8 matters.
9Be it enacted by the Legislature of Louisiana:
10 Section 1. R.S. 47:481 is hereby amended and reenacted to read as follows:
11 §481. Disposition of collections
12 Except as provided in R.S. 47:480, all fees and taxes provided for in this
13 Chapter, including the permit fees, shall be paid to the state treasurer on or before the
14 tenth day of each month following their collection and shall be credited to the
15 account of the Transportation Trust Fund, the State Highway Improvement Fund,
16 state highway fund No. 2, and the New Orleans Ferry Fund, and the Highway
17 Capacity Fund, as provided by law.
18 Section 2. R.S. 48:77 is hereby amended and reenacted to read as follows:
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HLS 18RS-519 ORIGINAL
1 §77. Transportation Trust Fund; Highway Capacity Fund; dedication and uses of
2 certain monies for transportation purposes
3 A. Beginning Fiscal Year 2017-2018 2020-2021 and each year thereafter,
4 from the avails of the taxes imposed by Chapters 2, 2-A, and 2-B of Subtitle II of
5 Title 47 of the Louisiana Revised Statutes of 1950 from the sale, use, lease or rental,
6 the distribution, the consumption, and the storage for use or consumption of motor
7 vehicles which are taxable pursuant to said Chapters 2, 2-A, and 2-B, and after
8 satisfying the requirements of Article VII, Section 9(B) of the Constitution of
9 Louisiana relative to the Bond Security and Redemption Fund, the treasurer shall
10 deposit the following percentages into the Highway Capacity Fund for use as
11 provided in Subsection B of this Section:
12 (1) For Fiscal Year 2020-2021, twenty percent of such avails.
13 (2) For Fiscal Year 2021-2022, forty percent of such avails.
14 (3) For Fiscal Year 2022-2023, sixty percent of such avails.
15 (4) For Fiscal Year 2023-2024, eighty percent of such avails.
16 (5) For Fiscal Year 2024-2025 and each fiscal year thereafter, all of such
17 avails.
18 B.(1) There is hereby created, as a special fund in the state treasury, the
19 Highway Capacity Fund. The monies in the Highway Capacity Fund shall be subject
20 to annual appropriation by the legislature. All unexpended and unecumbered monies
21 remaining in the fund at the end of any fiscal year shall remain in the fund. The
22 monies in the fund shall be invested by the treasurer in the same manner and all
23 interest earned shall remain to the credit of the fund.
24 (2) Monies in the Highway Capacity Fund shall be not be used for operating
25 costs of the Department of Transportation and Development.
26 (3) Monies in the fund shall be appropriated and expended as follows:
27 (a) Not less than twenty-five percent nor more than fifty percent shall be
28 dedicated to projects with a total cost of two hundred million dollars or more.
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1 (b) Not less than twenty-five percent nor more than fifty percent shall be
2 dedicated to projects with a total cost of less than two hundred million dollars.
3 (c) Not less than twenty-five percent nor more than fifty percent shall be
4 dedicated to safety projects.
5 (d) Not more than ten percent shall be dedicated to economic development
6 projects.
7 (3) The selection of projects shall be based on a cost-benefit analysis that
8 shall be developed by the Department of Transportation and Development as
9 follows:
10 (a) By July 1, 2018, the department shall:
11 (i) Write cost-benefit analysis guidelines and formulas.
12 (ii) Identify potential projects.
13 (b) By July 1, 2019, the department shall:
14 (i) Submit cost-benefit analysis guidelines and formulas to the Joint
15 Highway Priority Construction Committee for review and approval.
16 (ii) Submit a list of projects to the Joint Highway Priority Construction
17 Committee to identify additional projects that the committee would like the
18 department to analyze.
19 (c) By January 1, 2020, the department shall finalize the project priority list
20 based on guidelines and formulas approved by the Joint Highway Priority
21 Construction Committee.
22 (d) By July 1, 2020, the department shall begin letting projects on the
23 approved list.
24 (e) The department shall regularly review the cost-benefit analysis guidelines
25 and formulas and submit the guidelines and formulas for review and approval by the
26 Joint Highway Priority Construction Committee every four years.
27 C. Beginning Fiscal Year 2018-2019 and each year thereafter, and after
28 satisfying the requirements of Article VII, Section 9(B) of the Constitution of
29 Louisiana relative to the Bond Security and Redemption Fund, the treasurer shall
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1 deposit an amount equal to an increase in general fund revenues as certified by the
2 Revenue Estimating Conference as being attributable to the provisions of Acts 2015,
3 No. 257, but not in excess of one hundred million dollars per fiscal year, to the funds
4 to be dedicated for use as provided by Subsection B D of this Section.
5 B. D. The monies dedicated pursuant to Subsection A C of this Section shall
6 be deposited to the funds specified for the following purposes:
7 (1) The first seventy million dollars of the total monies shall be deposited
8 into the Transportation Trust Fund to be used exclusively for state highway
9 pavement and bridge sustainability projects in accordance with the Department of
10 Transportation and Development definitions of such projects.
11 (2) After compliance with the provisions of Paragraph (1) of this Subsection,
12 ninety-three percent of the remaining monies shall be deposited into the
13 Transportation Trust Fund to be appropriated and expended as follows:
14 (a) Not less than thirty percent shall be dedicated to highway priority
15 program projects classified as capacity projects in accordance with the Department
16 of Transportation and Development definitions of such projects.
17 (b) Twenty-five percent shall be used exclusively for port construction and
18 development priority program projects as provided in Chapter 47 of Title 34 (R.S.
19 34:3451 through 3463).
20 (c) The remainder of the monies after compliance with Subparagraphs (2)(a)
21 and (b) of this Paragraph shall be used exclusively for highway priority projects.
22 Such projects shall be specifically for state highway pavement and bridge
23 sustainability in accordance with the Department of Transportation and Development
24 definitions of such projects.
25 (3)(a) After compliance with the provisions of Paragraph(1) of this
26 Subsection, seven percent of the remaining monies shall be deposited into the
27 Louisiana State Transportation Infrastructure Fund established in R.S. 48:86 as
28 provided in Acts 2015, No. 431. The monies deposited in the Louisiana State
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1 Transportation Infrastructure Fund pursuant to this Subsection shall be used
2 exclusively for final design and construction and shall not be used for studies.
3 (b) If the Act [Acts 2015, No. 431] which originated as House Bill No. 767
4 of the 2015 Regular Session of the Legislature fails to pass and is not enacted into
5 law, the monies allocated to this Paragraph shall be deposited into the Transportation
6 Trust Fund and used exclusively for port construction and development priority
7 program projects as provided in Subparagraph (2)(b) of this Subsection.
8 (4) None of the monies deposited into the Transportation Trust Fund or the
9 Highway Capacity Fund pursuant to this Subsection Section shall be appropriated
10 to the office of state police.
11 Section 2. This Act shall become effective on July 1, 2018; if vetoed by the governor
12and subsequently approved by the legislature, this Act shall become effective on July 1,
132018, or on the day following such approval by the legislature, whichever is later.
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 478 Original 2018 Regular Session Bacala
Abstract: Dedicates, in increments beginning in FY 2020-2021, sales tax on motor vehicles
into the Highway Capacity Fund for highway projects funded on a cost-benefit
analysis.
Present law provides for the deposit of the amount of certain mineral revenues received by
the state into the Transportation Trust Fund. Present law provides that the money shall
come from the avails of the state sales and use tax on motor vehicles.
Proposed law retains the dedication of mineral revenues in present law but deletes reference
to the avails of the state sales and use tax on motor vehicles.
Proposed law creates the Highway Capacity Fund as a special treasury fund and dedicates
a portion of the avails of the state sales and use tax on motor vehicles to the Highway
Capacity Fund as follows:
Percent Fiscal Year
20% 2020-2021
40% 2021-2022
60% 2022-2023
80% 2023-2024
100% 2024-2025 and thereafter
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Proposed law prohibits the monies in the Highway Capacity Fund from being used for
operating costs of the Dept. of Transportation and Development (DoTD) or to be
appropriated to state police and allocates monies in the fund on a cost-benefit basis for
projects as follows:
Percent rangePurpose
25-50% Projects with a total cost of $200 million or more
25-50% Projects with a total cost of less than $200 million
25-50% Safety projects
<=10% Economic development projects
Proposed law requires DoTD to develop guidelines and formulas for the cost-benefit analysis
for review and approval of the Joint Highway Priority Construction Committee and provides
for DoTD to develop the final list of projects by July 1, 2020. Further requires DoTD to
review the cost-benefit analysis guidelines and formulas for review and approval by the Joint
Highway Priority Construction Committee every four years.
Effective July 1, 2018.
(Amends R.S. 47:481 and R.S. 48:77)
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