Louisiana House Bill HB496

Louisiana 2019 Regular Session

• Introduced: 3/29/19
• Refer: 3/29/19
• Refer: 4/8/19
• Report Pass: 4/29/19
• Engrossed: 5/20/19
• Refer: 5/21/19
• Report Pass: 5/27/19
• Refer: 5/28/19

Caption

Establishes the Unclaimed Property Revolving Loan Commission to provide financial assistance to local governments and political subdivisions for certain capital infrastructure projects (RE INCREASE SG EX See Note)

Impact

The enactment of HB 496 has significant implications for state laws and local government financing structures. It enables local entities to access financial resources through loans for infrastructure projects while also assuring that the interests on any bonds or notes associated with these loans will be exempt from taxation. This leads to an increase in local funding opportunities for critical infrastructure without adding to state tax burden, thus preserving the state's overall financial health and revenue streams.

Summary

House Bill 496 establishes the Unclaimed Property Revolving Loan Commission within the Department of the Treasury. This commission is tasked with providing financial assistance to local governments and political subdivisions for eligible infrastructure projects. The initiatives included in this bill aim to address the financial challenges local governments face when attempting to meet match funding requirements for federally supported infrastructure projects. By generating a low-interest-rate revolving loan fund, the bill seeks to support infrastructural investments that are crucial for communities.

Sentiment

The sentiment around HB 496 appears to be generally positive among proponents, mainly local governments and associations that advocate for infrastructure development. Supporters emphasize that the commission will ease the financial strain on local agencies and promote infrastructure enhancements statewide. However, there could be concerns among certain factions regarding oversight and management of these funds, as well as the potential for increased dependencies on loans rather than direct state funding.

Contention

Notable points of contention surrounding the bill include discussions on the qualifications for board members overseeing the commission and the potential for bureaucracy in the approval process for loans. Some stakeholders may argue about the levels of local control versus state oversight in the facilitation of these loans, fearing that excessive regulations could hinder accessibility for smaller local governments looking to fund necessary infrastructure.