HLS 19RS-257 ENGROSSED
2019 Regular Session
HOUSE BILL NO. 497
BY REPRESENTATIVE ABRAMSON
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
CAPITAL OUTLAY: Prohibits the disposal or sale of projects funded through the capital
outlay budget under certain circumstances
1 AN ACT
2To enact R.S. 39:125.1, relative to projects in the capital outlay budget; to limit the disposal
3 of projects which received capital outlay funding; to require certain approval before
4 a project is disposed of or sold; to provide for certain requirements and limitations;
5 to provide for applicability; to provide for an effective date; and to provide for
6 related matters.
7Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 39:125.1 is hereby enacted to read as follows:
9 ยง125.1. Disposal of projects which received funding through the capital outlay
10 budget; limitations; requirements
11 The owner of a project that received funding through the sale of general
12 obligation bonds for acquiring lands, buildings, equipment, or other permanent
13 properties, or for the preservation or development of permanent improvement
14 through the capital outlay budget may sell or otherwise dispose of the project while
15 repayment of the bonds, including debt service, by the state is outstanding but only
16 with the prior approval of the commissioner of administration and the approval, by
17 a majority vote, of the House Committee on Ways and Means and Senate Committee
18 on Revenue and Fiscal Affairs, including any conditions or requirements that the
19 property owner shall meet prior to disposing of the project.
Page 1 of 2
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 19RS-257 ENGROSSED
HB NO. 497
1 Section 2. The provisions of this Act shall be applicable to the funding of all projects
2included in the capital outlay budget for fiscal years commencing on and after July 1, 2019.
3 Section 3. This Act shall become effective on July 1, 2019.
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 497 Engrossed 2019 Regular Session Abramson
Abstract: Authorizes the owner of a project which received capital outlay funding through
general obligation bond (GOB) proceeds to sell or dispose of the property with the
prior approval of the commissioner and the House Committee onWays and Means
and Senate Committee on Revenue and Fiscal Affairs.
Proposed law limits the owner of a project that received GOB funding through the capital
outlay budget from selling or otherwise disposing of the project while repayment of the
bonds, including debt service, is outstanding without the prior approval of the commissioner
of administration and the House Committee on Ways and Means and Senate Committee on
Revenue and Fiscal Affairs, hereinafter "legislative committees". The legislative committees
must approve the sale or disposal of the property by a majority vote. Further, proposed law
requires the property owner to meet any conditions or requirements prior to selling or
disposing of the project.
Effective July 1, 2019, and applicable for all projects included in the capital outlay budget
for fiscal years commencing on and after July 1, 2019.
(Adds R.S. 39:125.1)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the
original bill:
1. Change proposed law from a prohibition to an authorization for the owner of a
project that received GOB funding through the capital outlay budget to sell or
dispose of the project while repayment of the bonds are outstanding. The
authority to dispose or sell the property requires prior approval of the
commissioner of administration and the legislative committees.
2. Require the property owner to meet any conditions or requirements prior to
disposing of the project.
3. Remove the requirement of the property owner to repay the total amount of
funding the project received through the capital outlay budget and the
requirement to pay a penalty.
Page 2 of 2
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.