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 940 Engrossed 2024 Regular Session Turner
Abstract: Authorizes the issuance of up to $1.681 billion in bonds to fund deferred maintenance
projects included in the College and University Deferred Maintenance Capital Improvement
Program
Proposed law establishes the College and University Deferred Maintenance Capital Improvement
Program to address the deferred maintenance and capital improvement needs at public postsecondary
educational institutions in La. Proposed law grants the Bd. of Supervisors of La. State University
and Agricultural and Mechanical College, the Bd. of Supervisors for the University of La. System,
the Bd. of Supervisors of Southern University and Agricultural and Mechanical College, and the Bd.
of Supervisors of Community and Technical Colleges (hereinafter collectively "boards") the
authority to facilitate the financing of deferred maintenance and capital improvements projects.
Proposed law defines a "project" as improvements addressing deferred maintenance of public
facilities including the complete renovation of buildings with significant deferred maintenance
needs; utility infrastructure; drainage, street, sidewalk, and site infrastructure; the demolition of
public facilities, and any other improvements to address deferred maintenance needs, to be financed
as authorized and provided in proposed law. The term "project" shall not include new buildings or
building additions, other than minor additions required for code compliance or improved access to
a public facility.
Proposed law defines a "public facility" or "public facilities" as buildings, equipment, and other
permanent property or immovable property of the system under the supervision and control of the
board.
Proposed law defines "system" as the La. State University System, the University of La. System, the
Southern University System, or the La. Community and Technical Colleges System.
Proposed law authorizes the board of a system, at its discretion, to fund projects or to fund these
projects through financing programs provided by the La. Local Government Environmental Facilities
and Community Development Authority pursuant to present law (R.S. 33:4548.1 et seq.) or a public
trust duly organized pursuant to present law that has the state as its beneficiary, with the approval
of the State Bond Commission.
Proposed law provides for the requirements and limitations for issuance of the bonds including the
maturity dates, term of the bonds, interest rates, denominations, and price. Proposed law exempts projects financed or constructed on behalf of a system from the present law
requirement of being included in the annual comprehensive capital budget or to obtain legislative
approval.
Proposed law requires projects financed or constructed on behalf of a system to be managed and
administered by a corporation, regardless of the source of revenues used to fund the projects. Further
provides for requirements that the corporation must adhere to including disclosure of property
interests of any party contracting with the corporation in connection with a project, its
responsibilities and those of any party contracting with the corporation in the development of a
project, disclosure of contracts the board enters into, responsibilities of any party contracting with
the corporation with respect to the financing of a project, and adoption and maintenance of a policy
on conflicts of interest.
Proposed law requires the president of a system to be provided reasonable notice of and all materials
relating to and be allowed to attend and participate in all meetings of the corporation's board of
directors and of any committee of the corporation charged with the procurement, management, or
oversight of a project.
Proposed law requires each board member of the corporation and each member of his immediate
family who derives anything of economic value directly, through any transaction involving the
corporation or who derives anything of economic value of which he may be reasonably expected to
know through a person which has bid on or entered into or is in any way financially interested in any
contract or transaction under the supervision or jurisdiction of the corporation to disclose certain
information in compliance with the Code of Governmental Ethics as provided for in present law.
Proposed law requires the corporation to hold a public hearing in accordance with present law (Open
Meetings Law) prior to beginning construction or management of any project in excess of $1 million
of total installed costs and to issue a request for qualifications or request for proposals to select
contractors for any project in excess of $1 million.
Proposed law requires the corporation to publish minutes of all meetings on the board's internet
homepage in accordance with the Public Records Law as provided for in present law.
Proposed law requires the corporation to establish procedures for and to use a public announcement
system for solicitation of letters of interest from qualified contractors and to provide a request for
qualifications package or request for proposals package to any contractor who submits a letter of
interest. All required information shall be identified in the package and in standard response forms.
Further provides for items interested contractors must include in their responses to the request for
qualifications package or request for proposals package.
Proposed law requires the corporation to evaluate and grade all responses received from solicitation
of offers or to alternatively allow an advisory committee to evaluate and grade all responses.
Proposed law provides for factors the corporation must consider as part of its selection process.
Proposed law requires the corporation to establish a process for selection of qualified contractors and obtaining approval in writing for the letting of the contract from the board and to continuously
review and monitor the status of and contractor performance for each project that the corporation
undertakes.
Proposed law provides with respect to annual reports the corporation is required to make available
on the internet and make available for public inspection. Further requires annual reports to be
submitted to the commissioner of administration and the Joint Legislative Committee on Capital
Outlay by April 30 in the calendar year following the calendar year that is the subject of the annual
report. The corporation is required to maintain annual reports, books, and records directly pertaining
to the expenditure of project funds, for a minimum of three years following final completion of the
project and shall be subject to audit by internal or external auditors selected by the board.
Proposed law authorizes the board to grant leases of property under its supervision to a nonprofit
corporation or to an entity authorized to issue bonds for the purpose of financing projects. Further
limits the term of any lease agreement to not more than 30 years.
Proposed law prohibits monies from being appropriated for any project until July 1, 2026, and
prohibits bonds, notes, or other evidences of indebtedness from being issued for any project or by
any system for a project to be financed pursuant to proposed law after July 1, 2036.
Proposed law provides that the maximum amount of bonds that may be issued to finance projects
pursuant to proposed law is $1.681B, together with other requirements including but not limited to
costs of issuance, if any, credit enhancement and related costs. The monies shall be allocated as
follows:
(1)The Southern University System, $153 million.
(2)The University of La. System, $523 million.
(3)The La. State University System, $752 million.
(4)The La. Community and Technical College System, $253 million. Proposed law requires the commissioner of administration to approve the cooperative endeavor
agreements (CEA) entered into by the parties for any project prior to commencement of any work,
including planning and design. Further requires each CEA to include an annual appropriation
dependency clause.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Adds R.S. 17:3369.1-3369.3)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Education to the original bill:
1. Increase the amount of project costs that triggers a requirement for a public hearing prior
to beginning construction or management of the project from $250,000 to $1 million.
2. Increase the amount of project costs that triggers a requirement for the corporation to
issue a request for qualifications or request for proposals to select contractors for any
project from $250,000 to $1 million.