RÉSUMÉ DIGEST
ACT 505 (SB 277) 2022 Regular Session Cortez
Existing law (R.S. 48:77) provides that a portion of the taxes collected from the taxable sale,
use, or lease of motor vehicles, after satisfying the requirements of the Bond Security and
Redemption Fund, shall be deposited into the Construction Subfund (subfund) of the
Transportation Trust Fund. Provides that for FY 2023-2024, 30% of such avails shall be
deposited into the subfund and for FY 2024-2025 and thereafter, 60% of such avails shall be
deposited into the subfund.
New law retains existing law but adds the Megaprojects Leverage Fund created in new law
as an additional fund for deposit of the dedicated portion of the taxes collected from the
taxable sale, use, or lease of motor vehicles.
Prior law provided that in any fiscal year beginning with Fiscal Year 24-25, if the Revenue
Estimating Conference revises the Official Forecast resulting in a decrease of $100 million
or more from the Official Forecast at the beginning of the current fiscal year, the amount of
avails deposited into the subfund may not exceed $150 million for that fiscal year. New law
repeals prior law.
Prior law provided that no debt shall be issued which in the aggregate exceeded $150 million
that is secured by monies deposited into the subfund. New law repeals prior law.
New law (R.S. 48:77.1) creates the Megaprojects Leverage Fund in the state treasury and
directs the state treasurer to deposit into the Megaprojects Leverage Fund 75% of the portion
of the avails of the tax on the sale, use, or lease of motor vehicles dedicated pursuant to
existing law (R.S. 48:77), not to exceed $160 million in any fiscal year.
New law creates four special accounts in the Megaprojects Leverage Fund, into each of
which shall be deposited 25% of the amount deposited into the Megaprojects Leverage Fund
each year as well as any other monies appropriated to each special account each year. The
four special accounts are the I-10 Calcasieu River Bridge and I-10 Improvements Account,
the I-49 South Leverage Fund Account, the Mississippi River at Baton Rouge and
Connections Account, and the I-49 North Leverage Fund Account. Provides that if a project
is completed and issued final acceptance and any outstanding debt secured by the special
account has been paid or defeased, no more deposits shall be made into that account and any
monies in that account shall be divided equally between the remaining accounts that are
eligible to receive deposits.
New law provides that, if prior to the issuance of bonds for the project, the secretary of the
Dept. of Transportation and Development (DOTD) determines it is not within the best
interests of the state to proceed with a project for which an account has been created in new
law, he may submit a request to the House and Senate Committees on Transportation,
Highways and Public Works not to proceed. If the committees approve the request, new law
provides that no more deposits shall be made into that account and any monies that would
have been deposited in that account shall be divided equally between the remaining accounts
that are eligible to receive deposits. Further provides that within 30 days of the committees'
approval, the unexpended and unencumbered balance in the account is to be divided equally
between the remaining accounts that are eligible to receive deposits.
New law provides that once all projects described in existing law and proposed law have
either been completed and issued final acceptance or the secretary's request not to proceed
with the project has been approved, and any outstanding debt issued pursuant to new law has
been repaid or defeased, then no further deposits shall be made into the Megaprojects
Leverage Fund.
New law requires DOTD to obtain approval from the Joint Legislative Committee on the
Budget before entering into a public-private partnership with respect to one of the four
megaprojects except for public-private partnerships for which solicitations began before
August 1, 2022.
New law provides for the investment of monies in the fund. New law provides that monies in the fund shall be appropriated only for (1) debt service on
bonds issued pursuant to new law and (2) transfer to the Construction Subfund for certain
projects enumerated in existing law and proposed law. The existing law and new law projects
eligible for funding pursuant to new law are:
(1)Replacement of the I-10 Calcasieu River bridge and I-10 improvements from the
I-210 interchange west of the river to the I-210 interchange east of the river.
(2)Upgrades to US 90 to interstate standards from the I-10 and I-49 interchange from
Lafayette to New Orleans.
(3)A new Mississippi River Bridge at Baton Rouge with freeway-level connections from
I-10 west of Baton Rouge to I-10 east of Baton Rouge on LA Highway 1 and LA
Highway 30.
(4)Upgrades to I-49 North where I-49 is not yet upgraded.
New law provides for the issuance of bonds secured by the motor vehicle sales and use tax
deposited into the Megaprojects Leverage Fund, provided that the total amount of funds
pledged shall not exceed $25 million per year from any of the four accounts created in new
law. Proceeds of the bonds shall be deposited into the subfund.
New law provides for the creation of the Motor Vehicle Sales and Use Tax Bond Fund, to
be administered by a trustee selected by the State Bond Commission (commission), into
which shall be deposited such portion of the motor vehicle sales and use taxes that are
taxable and transferred to the commission.
New law provides that the bond resolution may contain provisions respecting: custody of the
bond proceeds; investment of the motor vehicle sales taxes; credit enhancement devices for
the bonds; the collection, custody, and use of the pledged revenues or other monies pledged
therefor; reserves, sinking funds and other funds; covenants for the establishment of pledged
revenue coverage requirements of the bonds; the issuance of additional parity or subordinate
bonds; and covenants deemed necessary in order to better secure the bonds. Provides that the
bonds are negotiable instruments, a valid and binding pledge, and exempt from state taxation.
New law provides that the bonds issued pursuant to new law shall not be full faith and credit
obligations of the state.
New law provides that the bond resolution shall set forth the series, date, maturities, interest
rates, redemption terms and priority on revenues. Bonds may be sold by competitive bid or
negotiated sale. New law provides for a 30-day preemption period.
New law provides that the bonds shall not be included as "net state tax supported debt"
pursuant to existing law (R.S. 39:1367).
Effective June 16, 2022.
(Amends R.S. 48:77(A), (C)(intro para), and (C)(1) ; adds R.S. 39:1367(E)(2)(b)(ix) and R.S.
48:77.1 and 77.2; repeals R.S. 48:77 (B) and (E))