SSHB155 416 4023
HOUSE SUMMARY OF SENATE AMENDMENTS
HB 155 2023 Regular Session Butler
CAPITAL OUTLAY: Establishes the Louisiana Rural Infrastructure Revolving Loan
Program to provide financial assistance to local governments and political subdivisions for
certain capital infrastructure projects
Synopsis of Senate Amendments
1.Condition implementation of proposed law on the appropriation of funds by the
legislature.
Digest of Bill as Finally Passed by Senate
Proposed law establishes a revolving loan fund in the state treasury to be known as the "La.
Rural Infrastructure Revolving Loan Program Fund", hereinafter "fund", which shall be
maintained and operated by the Dept. of the Treasury. Proposed law provides for the source
of monies deposited into the fund including the deposit of funds for the repayment of
principal and interest on loans and other obligations made to local governments financed
from the fund. Provides that funds may be used to finance loans and obligations for projects
of
local governments if reserves for expenditures for the administration of the fund that the
department deems necessary and prudent are retained in the fund.
Proposed law requires money in the fund to be invested by the state treasurer in the same
manner as money in the state general fund and requires interest earned on the investment of
the money in the fund to be credited to the fund after compliance with the requirements of
present constitution relative to the Bond Security and Redemption Fund. All unexpended and
unencumbered money in the fund at the end of a fiscal year shall remain in the fund.
Proposed law limits the maximum amount of a loan that may be funded through the
revolving loan fund to $1.5M.
Proposed law defines a "local government" for purposes of proposed law as a political
subdivision with a population of less than 15,000 according to the latest federal decennial
census. Further limits a local government to one loan from the revolving loan fund until the
loan is paid in full; however, once all of the principal, interest, and any other fees and
obligations due under the loan agreement are paid in full, the local government may apply
for a new loan from the revolving loan fund.
Proposed law requires a local government to comply with all of the following in order to be
eligible for a loan pursuant to the provisions of proposed law:
(1)Demonstrate it has financial resources and a financial strategy for the duration of the
lifecycle of the project to ensure the project is sufficiently funded, maintained, and
replaced as needed.
(2)Be in good-standing and comply with audit requirements provided for in present law
at the time of applying for and receiving the loan as well as during the duration of the
term of the loan.
Proposed law authorizes the Dept. of the Treasury to promulgate rules in accordance with
present law (Administrative Procedure Act) as are necessary to implement the provisions of
proposed law including rules to adopt a schedule of reasonable fees and charges to pay for
the costs of administering the fund and rules to respond to emergency requests.
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Proposed law requires that before a loan or other assistance may be requested from the
commission, the project shall first have been approved by the "certifying department".
Designates the State Bond Commission (SBC) as the certifying department for emergency
requests.
Proposed law defines an "emergency request" as an eligible infrastructure project request
submitted by a local government between legislative sessions that is essential to alleviate
conditions that are hazardous to life, health, or property. "Emergency request" includes
projects that have an anticipated useful life of less than 20 years and a value or cost of less
than $50,000 that would not otherwise qualify for funding in an approved infrastructure
program.
Proposed law, with respect to a bond, note, or other evidence of indebtedness of a local
government issued through a loan, provides for the same requirements concerning interest
rates and public notice as provided in present law concerning the adoption of a resolution or
ordinance authorizing the issuance of indebtedness.
Proposed law authorizes a local government to pledge as security for a loan and any ancillary
fees or other costs, any revenues from its general revenue fund, sales taxes, sewer user fees,
assessments, parcel fees, or ad valorem property taxes.
Proposed law exempts from taxation, any interest on bonds, notes, or other evidences of
indebtedness issued through a loan.
Proposed law for purposes of security of debt or performance obligations of debt for projects,
authorizes the commission to issue and deliver evidences of its guarantee of the debt of other
entities, and to execute pledges of the monies on deposit in the commission, including
payments pursuant to letters of credit. All evidences of indebtedness, guarantees, and pledges
delivered pursuant to this authority shall constitute limited obligations of the commission and
shall not be secured by the full faith and credit of the state.
Proposed law provides that the withdrawal of monies from the revolving loan fund to pay
debt service on any bond, note, or other evidence of indebtedness, obligation of guarantee
of any debt, or pledge to secure any debt, or fees and associated costs to administer a loan
shall not constitute or be subject to appropriation by the legislature.
Proposed law authorizes the legislative auditor to review all applications for compliance with
the provisions of proposed law.
Proposed law requires, beginning Jan. 1, 2026, and every two years thereafter, the SBC to
issue a report to the House Ways and Means Committee and the Senate Revenue and Fiscal
Affairs Committee which includes information on the number of loans approved by the
commission, outstanding loan balances, including principal and interest, the status of any
debt sold to provide monies for the fund, costs incurred by the SBC to administer the fund,
and the status of rules adopted by the SBC.
Present law provides for the definition of "net state tax supported debt" and includes those
issuances excluded from the definition.
Proposed law retains present law and adds as an exclusion, any bond, note, certificate,
warrant, reimbursement obligation, or other evidence of indebtedness issued pursuant to
proposed law.
Proposed law conditions implementation of proposed law on the appropriation of funds by
the legislature.
Effective July 1, 2023.
(Adds R.S. 39:462.1-462.8 and R.S. 39:1367(E)(2)(b)(x))
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