HB 3 — CAPITAL OUTLAY: Provides for the Omnibus Bond Act

HLSENROLLED 26RS-675 ENGROSSED Regular Session HOUSE BILL NO.

3 BY REPRESENTATIVE BACALA CAPITALAN OUTLAY:ACT To enact the Omnibus Bond Authorization Act of 2026, relative to the implementation of a five-year capital improvement program;

Provides for the Omnibus Bond Act AN ACT To enact the Omnibus Bond Authorization Act of 2026, relative to the implementation of a five-year capital improvement program;

The legislature hereby recognizes that the Constitution of Louisiana provides in Article VII, Section 11, that the governor shall present to the legislature a five-year Capital Outlay Program and request implementation of the first year of such program, and that the capital outlayprojects approvedbytheapproved bythe legislature areareto to be made part ofthecomprehensivestatecapitalbudgetwhichshall, in turn,beadoptedbythelegislature.

The continued carrying of the Pageaforesaid 1unissued bonds on the financial statements of 8the HLSstate 26RS-675under ENGROSSEDthe HBabove NO.described circumstances operates unnecessarily to the financial detriment of the state.

3Accordingly, aforesaidthe unissuedlegislature bondsdeems onit necessary and in the best financial statementsinterest of the state underto repeal all Acts, except any Act authorizing the aboveissuance describedof circumstancesrefunding operatesbonds unnecessarilyand toAct 41 of the financial2006 detrimentFirst Extraordinary Session, providing for the issuance of general obligation bonds in the state.Page 1 of 7 HB NO.

Accordingly,3 theENROLLED legislature deems it necessary and in the best financial interest of the state to repeal all Acts, except any Act authorizing the issuance of refunding bonds and Act 41 of the 2006 First Extraordinary Session, providing for the issuance of general obligation bonds in the state which cannot be issued for the projects contemplated, and in their stead to reauthorize general obligation bonds of the state for those projects deemed to be essential, and to authorize new projects.

It isistheintent theofthelegislature intentthat ofthelegislaturethatthisthis Actshall constitute theOmnibus Bond Authorization Act of 2026 and, together with any Act authorizing the issuance of refunding bonds and Act 41 of the 2006 First Extraordinary Session, shall provide bond authorization, as required by Article VII, Section 6 of the Constitution of Louisiana, for those projects to be funded totally or partially by the sale of general obligation bonds and included in House Bill No.

It is the further intent of the legislature that in this year and each year hereafter an Omnibus Bond Authorization Act shall be enacted providing for the repeal of state general obligation bond authorizations for projects no longer found feasible or desirable,thereauthorizationofthosebondsnotsoldduringthepriorfiscalyearforprojectsdesirable,thereauthorizationofthosebondsnot sold duringthepriorfiscalyearforprojects deemed to be of such priority as to warrant such reauthorization, and to enact new authorization for projects found to be needed for capital improvements.

ToprovidefundsforcertaincapitalimprovementprojectstheStateBond Commission is hereby authorized pursuant to Article VII, Section 6 of the Constitution of Louisiana to issue general obligation bonds or other general obligations of the state for Pagecapital 2improvements for the projects, and subject to any terms and conditions set forth on the issuance of 8bonds HLSor 26RS-675the ENGROSSEDexpenditure HBof NO.monies for each project as is provided for in the 2026 Capital Outlay Act.

3Section capital5.(A) improvementsToprovidefundsforcertaincapital forimprovement theprojects projects,authorized andprior subject to anytermsthis Act and conditionsbythis setAct, forthwhich onprojects theare issuancedesigned ofto bondsprovide or the expenditure of monies for eachreimbursement projectofdebtserviceongeneralobligationbonds,theStateBondCommissionisherebyauthorized asPage is2 providedof for7 inHB theNO. 2026 Capital Outlay Act.

Section3 5.(A)ENROLLED Toprovidefundsforcertaincapitalimprovement projects authorized prior to this Act and by this Act, which projects are designed to provide for reimbursement ofdebtserviceongeneralobligationbonds,theStateBondCommissionisherebyauthorized pursuant to Article VII, Section 6 of the Constitution of Louisiana, to issue general obligation bonds of the state, hereinafter referred to as "project bonds", for capital improvements for the projects and subject to any terms and conditions set forth on the issuanceofbondsortheexpenditureofmoniesforeachsuchprojectasprovidedinthe2026 Capital Outlay Act the terms of which require such reimbursement of debt service.

(B) Withoutaffecting,restricting,orlimitingthepledgehereinmadeofthefullfaith andcreditofthestateofLouisianatothepaymentofthegeneralobligationbondsauthorized bythisSectionandwithoutaffecting,restricting,orlimitingtheobligationofthestatetopay the same from monies pledged and dedicated to and paid into the Bond Security and RedemptionFund,butinordertodecreasethepossiblefinancialburdenonthegeneralfunds of the state resulting from this pledge and obligation, the applicable management board, governingbody, or state agencyfor which anyof such project bonds areissued, in the fiscal year in which such project bonds are issued and in each fiscal year thereafter until such projectprojectbonds bonds and the interest thereon arepaid, shall transferandmakeavailabletransferand tomake theavailable stateto thestate treasury, for deposit in the Bond Securityand Redemption Fund, designated student fees or revenues or other revenues in an amount equal to the debt service on such project bonds in such fiscal year.

In addition, the applicable management board, governing body, or state agency, in the fiscal year in which such project bonds are issued and in each of the nine immediatelysucceedingfiscalyearsthereafter,shalltransferandmakeavailableto thestate treasury from designated student fees or revenues or other revenues, for credit to a reimbursement reserve account for such project bonds which shall be established in an account designated in the reimbursement contract hereafter provided for, monies in an amount equal to one-tenth of the average annual debt service on such project bonds, and each such reimbursement reserve account thereafter shall be maintained in said minimum Pageamount 3by offurther 8transfers, HLSif 26RS-675necessary, ENGROSSEDfrom HBdesignated NO.student fees or revenues or other revenues bythe applicable management board, governing body, or state agency to the state treasury.

3 amount byfurther transfers, if necessary, from designated student fees or revenues or other revenues bythe applicable management board, governing body, or state agencyto the state treasury.

When the general obligation bonds and the interest thereon issued hereunder have been paid, an amount remaining in the reimbursement reserve account, as prorated to such authorized project,Page shall3 beof transferred7 byHB theNO. state treasurer to the applicable management board, governing body, or state agency.

3 ENROLLED project, shall be transferred by the state treasurer to the applicable management board, governing body, or state agency.

A reimbursement contract hereundershall beauthorizedbyresolutionofthebeauthorizedbyresolutionoftheapplicablemanagementboard,governing applicablemanagementboard,governing body, or state agency, or board or byact of the chief executive officerif no governingboard exists.

Page(D) 4The obligation to make the reimbursement payments as required by a reimbursement contract may be represented bythe issuance by the applicable management board, governing body, or state agency of 8its HLSnonnegotiable 26RS-675revenue ENGROSSEDobligation HBin NO.the form of a bond or other evidence of indebtedness, hereinafter referred to as "reimbursement bond".

3 (D) The obligationreimbursement tobond makeshall thebe reimbursementissued paymentsin asa requiredsingle bybond aform, reimbursementwithout contractcoupons, mayin bethe representedprincipal bytheamount issuanceequal byto the applicableaggregate managementprincipal board,amount governingof body,project orbonds, stateshall agencybe ofregistered itsin nonnegotiableprincipal revenueand obligationinterest in the formname of aand bondbe orpayable otherto evidencethe ofState indebtedness,Bond hereinafterPage referred4 toof as7 "reimbursementHB bond".NO.

The3 reimbursementENROLLED bond shall be issued in a single bond form, without coupons, in the principal amount equal to the aggregate principal amount of project bonds, shall be registered in principal and interest in the name of and be payable to the State Bond Commission, shall bear interest at a rate or rates equal to the interest rate or rates payable on the project bonds, and shall be payable as to principal and interest at such times, in such manner, from designated student feesorfees or revenues,or other revenues,revenues,and and be subject to such termsandconditionsasshallbeprovidedintheauthorizingresolutionordocumentexecuted byachiefexecutiveofficer,whereapplicable.Thisauthorizationshallbesubjecttoapproval by the State Bond Commission and the Office of the Attorney General, and when so acceptedandapproved,theauthorizationshallconstituteandbethereimbursementcontract for such authorized project, as required hereunder.

(E) Inadditiontotheotherpaymentshereinrequired,reimbursementcontractsshall provide for the setting aside of sufficient student fees or revenues or other revenues in a reserve fund, so that within a period of not less than ten years from date of issuance of project bonds there shall be accumulated in a reserve fund monies equal to a sum not less Pagethan 5the ofaverage 8annual HLSdebt 26RS-675service ENGROSSEDrequirements HBon NO.such project bonds.

3 than the average annual debt service requirements on such project bonds.

Thereservefundrequiredhereunder may consist of a reserve fund heretofore or hereafter established to secure payments for reimbursementbondsoftheapplicablemanagementboard,governingbody,orstateagency, provided that (1) payments from said reserve fund to secure the payments required to be made under a reimbursement contract shall be on a parity with the payments to be made securing outstanding bonds and additional parity bonds and (2) no additional parity reimbursementbondsPage shall5 be issued except pursuant to the establishmentandmaintenance of an7 adequateHB reserveNO. fund as approved bythe State Bond Commission.

3 ENROLLED reimbursementbonds shall be issued except pursuant to theestablishmentandmaintenance of an adequate reserve fund as approved bythe State Bond Commission.

Thebonds authorizedto besold bythe State Bond Commission pursuant to this ActshallAct beshall issuedbeissuedand and sold in conformitywith the provisions of Article VII, Section 6 of the Louisiana Constitution, R.S.

39:1430.1, and anyamendments thereto adopted prior to, at the same time as, ororsubsequentto, subsequenttheeffectivedate to,of theeffectivedateofthisthis Act.

However,the provisions ofofR.S. R.S.

39:1365(9) shall not apply to any bonds issued hereunder in the form of variable rate and/or tender option bonds and that said bonds need not be issued in serial form and maymaymature mature in such year or years as may be specified by the State Bond Commission.

In connection with the issuance of the bonds authorized hereby, the State Bond Commission may, without regard to any other laws of the state relatingtotheprocurementofservices,insurance,orfacilities,enterintocontractsuponsuch terms as it deems advantageous to the state for (1) the obtaining of credit enhancement or liquiditydevicesdesignedto improvethemarketabilityofthebonds and(2)ifthebonds are structured as variable rate and/or tender option bonds to provide the services and facilities required for or deemed appropriate bythe State Bond Commission for such type of bonds, Pageincluding 6those of 8tender HLSagents, 26RS-675placement ENGROSSEDagents, HBindexing NO.agents, remarketing agents, and/or standby bond purchase facilities.

3The includingcost thoseof obtaining credit enhancement or liquidity devices and fees for other services set forth in this Section shall, if authorized by the State Bond Commission, be paid from the Bond Security and Redemption Fund as a requirementwith respectto the issuanceof the bonds authorizedhereby.Thebonds shall be general obligations of tenderthe agents,state placementof agents,Louisiana, indexingto agents,the remarketingpayment agents,of and/orwhich, standbyas bondto purchaseprincipal, facilities.premium, if any, and interest, as and when the same become due, the full faith and credit of thestateisherebyirrevocablypledged.

TheThesebondsshallbesecuredbymoniesintheBond cost of obtaining credit enhancement or liquidity devices and fees for other services set forth in this Section shall, if authorized by the State Bond Commission, be paid from the Bond Security and Redemption Fund asand a requirementwith respectto theissuance of the bonds authorizedhereby.Thebonds shall be generalpayable obligationson ofa theparity statewith ofbonds Louisiana,and toother thePage payment6 of which,7 asHB toNO. principal, premium, if any, and interest, as and when the same become due, the full faith and credit of thestateisherebyirrevocablypledged.

ThesebondsshallbesecuredbymoniesintheBond3 SecurityENROLLED and Redemption Fund and shall be payable on a parity with bonds and other obligations heretofore and hereafter issued which are secured by that fund.

The Treasurer is hereby authorized and directed to transfer to the Bond Security and Redemption Fund to be expended on general obligation bond debt service of therelatedbonds(includinganybondsissuedtorefinancesuchbonds)anyunexpendedbond proceeds balance of anygeneralany general obligation account created prior to 2020 having a balance of $10,000 or less.

Unless specificallyrepealed,thisspecificallyrepealed, this Act shall expire and be considered null and void andofnoand furthereffectonJune30,2027,exceptof asno tofurthereffectonJune30,2027,exceptasto anybonds authorized herein (1) which have been sold, (2) to which lines of credit have been issued, or (3) for which contracts for construction have been signed.

If vetoed bythe governorandgovernor and subsequentlyapprovedbythe legislature, this Act shall become effective on the dayfollowing such approval.

PageSPEAKER 7OF ofTHE 8HOUSE HLSOF 26RS-675REPRESENTATIVES ENGROSSEDPRESIDENT HBOF NO.THE SENATE GOVERNOR OF THE STATE OF LOUISIANA APPROVED:

3Page DIGEST7 ThedigestprintedbelowwaspreparedbyHouseLegislativeof Services.7

It constitutes nopart 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.