Louisiana HB 122: CAPITAL OUTLAY:  Provides relative to capital outlay reform (RE DECREASE GF EX See Note)

Bill Text

HLS 18RS-417 REENGROSSED
2018 Regular Session
HOUSE BILL NO. 122
BY REPRESENTATIVE DEVILLIER
CAPITAL OUTLAY: Provides relative to capital outlay reform
1 AN ACT
2 To amend and reenact R.S. 39:112(C)(2)(b), (E)(1), (2)(introductory paragraph), (b) and (c),
3 and (F), and 122(A) and to enact R.S. 39:112(H), relative to capital outlay; to
4 provide with respect to the capital outlay process; to provide for certain definitions;
5 to provide for certain requirements for nonstate projects; to provide for changes to
6 the amount and allocation of cash line of credit capacity each fiscal year; to provide
7 with respect to the local match requirements for certain projects; to provide relative
8 to line of credit recommendations for projects; to require the approval of certain line
9 of credit recommendations; to require the inclusion of certain information
10 concerning state indebtedness within the capital outlay act; to provide for
11 applicability; to provide for an effective date; and to provide for related matters.
12 Be it enacted by the Legislature of Louisiana:
13 Section 1. R.S. 39:112(C)(2)(b), (E)(1), (2)(introductory paragraph), (b) and (c), and
14 (F), and 122(A) are hereby amended and reenacted and R.S. 47:39:112(H) is hereby enacted
15 to read as follows:
16 §112. Capital outlay act
17 * * *
18 C.
19 * * *
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.

HLS 18RS-417 REENGROSSED
HB NO. 122
1 (2) For purposes of this Section, the following terms shall have the following
2 meanings unless the context clearly indicates otherwise:
3 * * *
4 (b) "Economic development project" means a recruitment or retention
5 project undertaken or sponsored by the Department of Economic Development or a
6 political subdivision or other public entity which has economic development as part
7 of its stated mission or purpose, which meets one of the following:
8 (i) Improvements on public or government-owned property for the purposes
9 of attracting or retaining a specific new or existing manufacturing or business
10 operation that benefits Louisiana.
11 (ii) Facilities or improvements on public or government-owned property and
12 that generate generates new, permanent employment or which help helps retain
13 existing employment.
14 (iii) (ii) Facilities or infrastructure improvements on public or government-
15 owned property necessary for the manufacturing plant or business to operate.
16 * * *
17 E.(1)(a) General obligation bond funding of non-state nonstate projects shall
18 be limited to no more than twenty-five percent of the cash line of credit capacity for
19 projects in any fiscal year. Non-state Nonstate projects are those projects not owned
20 and operated by the state except those projects determined by the commissioner of
21 administration to be a regional economic development initiative or regional health
22 care facility operated in cooperation with the state. No project by a nongovernmental
23 entity shall be eligible for capital outlay funding. The allocation of general
24 obligation bond cash lines of credit for nonstate projects shall comply with the
25 provisions of Subparagraph (b) of this Paragraph and the allocation of general
26 obligation bond cash lines of credit for state projects shall comply with the
27 provisions of Subparagraph (c) of this Paragraph.
28 (b) Of the allocation of the general obligation bond cash lines of credit
29 granted in any fiscal year for nonstate projects, the commissioner shall divide ten
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CODING: Words in struck through type are deletions from existing law; words underscored
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HLS 18RS-417 REENGROSSED
HB NO. 122
1 percent of the allocation among the parishes on a pro rata basis of population and
2 number of homesteads in each parish in proportion to the population and number of
3 homesteads throughout the state. The remaining fifteen percent of the general
4 obligation bond cash lines of credit granted in any fiscal year to nonstate projects
5 shall be prioritized to highway or bridge projects, flood control and flood prevention
6 projects, or economic development projects. For purposes of this Subparagraph, the
7 term "economic development project" shall mean any project undertaken by a
8 nonstate entity which is determined by the governing authority of the parish in which
9 the project is located to benefit the parish and which generates new, permanent
10 employment.
11 (c) Of the allocation of general obligation bond cash lines of credit granted
12 in any fiscal year for state projects, the commissioner shall direct no less than three
13 million dollars of cash line of credit capacity to each Department of Transportation
14 and Development highway district to fund projects which are deemed by the district
15 engineer as either deferred maintenance projects or drainage projects within the
16 geographic boundaries of each district. The allocation to highway districts may be
17 use