Louisiana House Bill HB779

Louisiana 2018 Regular Session

• Introduced: 4/2/18
• Refer: 4/3/18

Caption

Establishes a temporary dedication of a portion of certain revenues available under the Uniform Unclaimed Property Act for purposes of the Comite River Diversion Canal project (OR -$20,000,000 GF EX See Note)

Impact

By reallocating a portion of the revenues from the Uniform Unclaimed Property Act, HB 779 intends to ensure that the necessary funds are available for the Comite River project. This measure is seen as vital for addressing local concerns regarding flooding and infrastructure. The bill also provisions for the issuance of unclaimed property bonds to support these initiatives, thereby expanding the financial mechanisms available to fund critical development projects across the state. The annual limit on bond payments is set to increase from $15 million to $35 million, emphasizing the legislative intent to bolster state infrastructure finance.

Summary

House Bill 779 aims to enhance funding for the Comite River Diversion Canal project by increasing annual deposits into the Unclaimed Property Leverage Fund. Specifically, the bill proposes to increase deposits from $15 million to $35 million per year for a period of five years starting July 1, 2018. This increased funding is intended to facilitate the construction of the Comite River Diversion Canal, a crucial infrastructure project that seeks to alleviate flooding issues and improve regional water management. Additionally, the bill establishes the Comite River Diversion Canal Account within the Unclaimed Property Leverage Fund to manage these new financial resources effectively.

Sentiment

Overall, the sentiment surrounding HB 779 appears to be largely supportive among legislators who recognize the need for improved infrastructure funding. Proponents argue that the Comite River Diversion Canal project is essential for not only addressing current flooding issues but also for providing public safety and environmental protection. However, some concerns have been raised regarding the long-term implications of increasing reliance on unclaimed property revenues to fund infrastructure. Critics caution that fostering a sustainable financial strategy is imperative and that such funding sources should not compromise other essential state services.

Contention

One notable point of contention is the sustainability of the increased funding mechanism established by HB 779. Critics express concern that by dedicating a substantial portion of unclaimed property revenues to one specific project, the state might inadvertently limit funds available for other essential services and projects within the same time frame. Furthermore, the bill's reliance on bond payments poses a risk if future revenues from unclaimed properties do not meet expectations, which could lead to financial shortfalls in servicing these bonds. This aspect of the bill raises questions about fiscal responsibility and the need for careful planning moving forward.