Louisiana HB 2: CAPITAL OUTLAY:  Provides for the comprehensive Capital Outlay budget (Item #3)

Bill Text

ENROLLED
ACT No. 4
2026 Regular Session
HOUSE BILL NO. 2
BY REPRESENTATIVE BACALA
1 AN ACT
2 To provide with respect to the capital outlay budget and the capital outlay program for state
3 government, state institutions, and other public entities; to provide for the
4 designation of projects and improvements; to provide for the financing thereof
5 making appropriations from certain sources; and to provide for related matters.
6 Be it enacted by the Legislature of Louisiana:
7 Section 1.(A) The following sums or so much thereof as may be necessary are
8 hereby appropriated out of any monies in the state treasury from the sources specified, from
9 federal funds and self-generated revenues belonging to the state of Louisiana and/or
10 collected by boards, commissions, departments, and agencies thereof, all for making capital
11 outlay and for the purposes and in the amounts specified herein for the Fiscal Year
12 commencing July 1, 2026, and ending June 30, 2027, subject to the conditions thereafter
13 provided:
14 A project with funding payable from General Obligation Bonds Priority 1
15 indicates that the funding for the project includes the reauthorization of funding which was
16 previously granted as a line of credit by the State Bond Commission in Fiscal Year 2025-
17 2026. As used in this Section, the term "general obligation bonds" means state general
18 obligation bonds or other evidences of indebtedness payable from the Bond Security and
19 Redemption Fund. The amount set forth in this Section opposite each project, or so much
20 thereof as may be necessary, is hereby appropriated and payable from the source of funding
21 indicated; provided, however, amounts appropriated and payable from federal funds may be
22 encumbered or expended only to the extent such amounts shall have been committed or
23 received. Pursuant to the provisions of R.S. 39:82, funds for planning, acquisition,
24 construction, and major repair projects appropriated by this Act may be retained until
25 completion of the project, even if no bona fide liability exists on the last day of the fiscal
26 year.
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HB NO. 2 ENROLLED
1 This Act shall constitute the comprehensive state capital outlay budget for the
2 2026-2027 Fiscal Year. Projects set forth which are payable from the proceeds available
3 from the sale of general obligation bonds shall have the priorities as indicated. The Request
4 for Line of Credit form used by the attorney general and Bond Counsel in evaluating
5 Louisiana Constitutional, Internal Revenue Code, and applicable income tax regulations
6 shall be filed with the commissioner of administration, State Bond Commission, and state
7 attorney general. No general obligation bond cash lines of credit shall be granted to fund
8 any lower priority project prior to the granting of general obligation bond cash lines of credit
9 to fund all higher priority projects (the "general rule"), except as hereinafter provided. This
10 prohibition against funding a lower priority project shall not apply upon a showing of an
11 impossibility or impracticality either to proceed with all unfunded higher priority projects
12 or to proceed with the funding of such projects or any part thereof through the issuance of
13 general obligation bonds for any reason. Such showing shall be stated in reasonable detail
14 in a certificate or certificates signed by the state agency responsible for administering the
15 funding, and filed with the commissioner of administration and the State Bond Commission
16 (hereinafter referred to as "the Commission"). Upon a determination by the Commission
17 that proceeding with such a project or the funding thereof through the issuance of general
18 obligation bonds is impractical or impossible, the Commission may then proceed with the
19 sale of general obligation bonds or the granting of cash lines of credit without regard to the
20 priority of the unfunded projects determined to be impossible or impractical.
21 Upon recommendation by the state agency responsible for administering the
22 funding, if it is determined at any time that proceeding with the project or with the funding
23 thereof is no longer impossible or impractical, the State Bond Commission may rescind the
24 certificate of impossibility or impracticality and may proceed with the project or with the
25 issuance of general obligation bonds or the granting of cash lines of credit to fund the
26 project. Alternatively, the Interim Emergency Board (hereinafter referred to as "the Board"),
27 upon reviewing certificates as described above and determining that proceeding with such
28 projects or the funding thereof through the issuance of general obligation bonds is
29 impossible or impractical, may designate a lower priority for such projects. The Board's
30 determination and lower priority designation shall be submitted to the members of the
31 legislature for their approval in accordance with the provisions of Chapter 3-B of Subtitle