GREEN SHEET REDIGEST
HB 497 2019 Regular Session Abramson
CAPITAL OUTLAY: Prohibits the disposal or sale of projects funded through the
capital outlay budget under certain circumstances.
DIGEST
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". Both legislative committees
must approve the sale or disposal of the property by a majority vote.
Proposed law requires the property owner to obtain an opinion from state bond counsel that
the sale will not affect the tax exempt status of the bonds at the owner's cost and further
requires the property owner 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.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Revenue and Fiscal Affairs
to the engrossed bill
1. Add a requirement that the property owner obtain an opinion from current bond
counsel to the state that the sale will not affect the tax exempt status of the bonds
at the owner's cost.
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Prepared by Leonore Heavey.