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 277 Original 2021 Regular Session Bishop
Abstract: Adds restrictions to the allocation of cash line of credit capacity for capital outlay
projects and requires the House Committee on Ways and Means and the Senate Committee
on Revenue and Fiscal Affairs to approve line of credit recommendations before the division
of administration submits the list to the State Bond Commission for funding.
Present law requires the governor to submit his capital outlay budget which implements the first year
of the five-year capital outlay program and the bond authorization bill for the sale of bonds to fund
projects included in the bond portion of the capital outlay bill to the legislature no later than the 8th
day of each regular session.
Present law limits general obligation bond (GOB) funding of nonstate projects to no more than 25%
of the cash line of credit capacity for projects in any fiscal year. Further defines nonstate projects
as projects not owned and operated by the state except those projects determined by the
commissioner of administration (commissioner) to be a regional economic development initiative
or regional healthcare facility operated in cooperation with the state.
Proposed law eliminates projects determined by the commissioner as regional economic
development projects from being eligible to be classified as nonstate projects.
Proposed law retains the amount of cash line of credit capacity for nonstate projects but requires the
commissioner to divide 40% of the GOB allocation of cash line of credit granted to nonstate projects
on a pro rata basis of population and number of homesteads in each parish in proportion to the
population and number of homesteads throughout the state. The remaining 60% of the GOB cash
line of credit capacity granted to nonstate projects shall be prioritized for highway, bridge, flood
control and flood prevention projects, or economic development projects as defined in proposed law.
Further defines "economic development project" for purposes of proposed law.
Proposed law requires that of the portion of GOB cash line of credit capacity for each fiscal year
granted to state projects, the commissioner shall direct no less than $2,100 for each state highway
mile located within each highway district to the Dept. of Transportation and Development to fund
projects which are deemed the highest priority by the district engineer within the geographic
boundaries of each highway district.
Proposed law authorizes the allocation to highway districts to be used to fund costs for the lease or
rental of movable equipment necessary for construction of deferred maintenance or drainage
projects. Further requires the commissioner to designate no less than 50% of the remaining GOB cash line of credit capacity to be directed to highway and bridge projects.
Proposed law prohibits, beginning July 1, 2021, nongovernmental entity projects from being eligible
for capital outlay funding; however, any project which commenced prior to July 1, 2021, may
continue to participate in the capital outlay program until the project or current phase of the project
is complete.
Present law requires nonstate entity projects to provide a match of not less than 25% of the total
requested amount of funding. Present law authorizes limited exceptions to the local match
requirement.
Proposed law increases the local match requirement from 25% of the total requested amount of
funding to 50% of the total requested amount of funding and expands the entities required to provide
local match to include projects for colleges and universities managed by a board of supervisors.
Present law requires the Joint Legislative Committee on Capital Outlay (JLCCO) to make
recommendations to the commissioner concerning nonstate entity projects to be granted lines of
credit. Further requires the commissioner to submit the list of projects to be recommended for lines
of credit to the JLCCO a minimum of five days prior to submission of the list to the State Bond
Commission (SBC).
Proposed law changes present law by requiring the commissioner to make recommendations to the
House Committee on Ways and Means and the Senate Committee on Revenue and Fiscal Affairs
(committees) concerning state and nonstate entity projects to be recommended for lines of credit.
Further requires the commissioner to submit the list of recommendations to the committees no less
than 15 days prior to the meeting date of the SBC in which the lines of credit are to be considered
for funding.
Proposed law requires the committees to make final recommendations by either approving the list
of recommendations or making changes to the list. Only projects which received approval from the
committees can be submitted to the SBC for consideration of funding.
Present law limits the annual amount of GOB cash line of credit capacity which may be authorized
by the SBC to $200 million per year, adjusted for construction inflation from 1994. The amount may
be raised by a favorable vote of 2/3 of the elected members of each house of the legislature.
Proposed law changes present law by establishing the following specific amounts which may be
authorized each year:
(1)For Fiscal Year 2022, $300 million.
(2)For Fiscal Year 2023, $275 million.
(3)For Fiscal Year 2024, $250 million.
(4)For Fiscal Year 2025, and each fiscal year thereafter, $225 million. Proposed law retains authority for a change in the limit by a favorable vote of 2/3rds of the elected
members of each house of the legislature and adds authority for that approval to be accomplished
by mail ballot.
Applicable to the funding of all nonstate entity projects included in the capital outlay budget for
fiscal years commencing on or after July 1, 2021.
Effective July 1, 2021.
(Amends R.S. 39:112(E)(1) and (2)(intro. para.) and (F) and 122)