RÉSUMÉ DIGEST
HB 497 2019 Regular Session Abramson
Proposed law would have prohibited the owner of a project that received general obligation
bond (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 would have been required to approve the sale or
disposal of the property by a majority vote.
Proposed law would have required the property owner to obtain an opinion from state bond
counsel, at the owner's cost, that the sale would not have affected the tax exempt status of
the bonds. Would have further required the property owner to meet any conditions or
requirements prior to selling or disposing of the project.
Proposed law would have been applicable to the funding of all projects included in the
capital outlay budget for fiscal years commencing on and after July 1, 2019.
(Proposed to add R.S. 39:125.1)
VETO MESSAGE:
"Please be advised that I have vetoed House Bill 497 of the 2019 Regular Session.
House Bill 497 would have required approval by majority vote of both the House Committee
on Ways and Means and the Senate Committee on Revenue and Fiscal Affairs, not only
interjecting political decision making into the affairs of non-governmental entities, but also
violating Art. II, Sec. 2 of the Louisiana Constitution, which provides for a separation of
powers between the branches of state government. Furthermore, each entity that receives
capital outlay funding signs a cooperative endeavor agreement that already provides for
sufficient protections for protecting taxpayer dollars."