HB 776 — PORTS/HARBORS/TERMINALS: Modifies the Port Construction and Development Priority Program (EN SEE FISC NOTE LF EX)

ThePage keyword,6 one-liner, abstract, and digest do not constitute part of the6 lawCODING: or proof or indicia of legislative intent.

[R.S.

1:13(B) and 24:177(E)] HB 776 Engrossed 2026 Regular Session Bourriaque Abstract:

ModifiescertainprocedurestheDepartmentofTransportationandDevelopment utilizes in the Port Construction and Development Priority Program.

Present law (R.S.

34:3451) provides for definitions.

Proposed law adds the following definitions:

(1) "Benefitcostratio"meansthetotalbenefitsdividedbythetotalcostofaprojectwith the total cost being equal to the total investment, both public and private, required to implement the total project and derive the benefits and with total benefits being equal to the revenues and expenses, number of jobs, payroll benefits, spin-off benefits of payroll, shipping costs, or any other benefits that are determinable.

(2) "Large project" means a project with a total project cost between $40 million and $80 million with a benefit cost ratio greater than or equal to five, a return on the state's investment greater than or equal to three and ½, and a private investment of between 25% and 50% of the total project cost.

(3) "Standard project" means a project with a benefit cost ratio greater than or equal to one and a return on the state's investment greater than or equal to 275/1000 and 375/1000.

Presentlaw(R.S.34:3452(A))providesthatapplicationsforfundingofanyportconstruction or development project maybe submitted byanyport authorityon a quarterlybasis, except as provided in present law.

Further requires applications to be submitted to the Dept.

of Transportation and Development (DOTD) no later than the first of March, June, Sept., and Dec.

of each calendar year for consideration of funding or funding obligation authority in thefollowingfiscalyears.

Additionallyrequiresthatapplicationssubmittedbegovernedby present law.

Further requires information to be provided in the application pertaining to certain requirements.

Proposed law requires the maximum amount for participation in standard projects be $21 million,withamaximumallotmentof$7millionperyearperportandthemaximumamount for participation in large projects be $33 million, with a maximum allotment of $11 million per year per port.

Presentlaw(R.S.34:3452(D))authorizestheDOTDtocontractwiththeLa.StateUniversity Ports and Waterways Institute for any duties associated with the development of the port priority programs, including but not limited to the development, review, and evaluation of plans and specifications, and the development of the prior priority program list.

Further requires that the final determination of the port priority list remain with the DOTD and the joint transportation committees.

Proposed law modifies present law to change from the La.

State University Ports and WaterwaysInstituteastheonlyavailablecontractingentitytoanystatecollegeoruniversity.

Presentlaw(R.S.34:3453))providesfortheDOTD'srequiredprocedureforpublichearings regardingportpriorityprojectsandthedeterminationforthefinalprogramdecision.

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Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HLS 26RS-734 ENGROSSED HB NO.

776 requires that prior to the public hearings, the DOTD must publish the appropriate official notice of the hearing in the necessary journals.

Proposed law retains present law but changes the publication of the official notice from the necessary journals to the Official Journal of the State, beginning on July 1, 2027.

Presentlaw(R.S.

34:3457(A))requiresthe Transportation Trust Fund be the source ofstate funds for anyport project on the prioritylist approved in present law.

Further requires that prior to the commencement of any work, the presiding officer of each port authority involved in a project execute an agreement and statement of sponsorship to provide a 10% local match for the cost of construction of the project.

Proposedlawremovesthe10%localmatchrequirementandreplacingtherequirementwith project categories, based on the difference percentage local matches.

Proposed law (R.S.

34:3457(C)) creates categories for projects that require a local match, with different percentages for each category as follows:

(1) A standard project requires a 10% local match.

(2) A large project requires a 20% local match, subject to the legislature allocating additional Transportation Trust Fund dollars to the Port Construction and Development Priority Program.

Present law (R.S.

34:3473)providesfortheDOTD's requiredprocedurefor public hearings regarding dredging and deepening project evaluations and the determination for the final programdecision.

Furtherrequiresthatpriortothepublichearings,theDOTDmustpublish the appropriate official notice of the hearingon the dept.'s website.

Proposed law modifies present law by changing the publication of the official notice from the dept.'s website to the Official Journal of the State, beginning on July 1, 2027.

Directs the La.

State Law Institute to alphabetize and renumber definitions contained in proposed law.

(Amends R.S.

34:3452(A)(1)(intro.

para.) and (D), 3453, 3457(A)(intro.

para.) and 3473;

Adds R.S.

34:3451(6)-(8) and 3457(C)) Summary of Amendments Adopted by House The Committee Amendments Proposed by House Committee on Transportation, Highways and Public Works to the original bill:

1.

Make technical changes.

2.

Addthe definition of "benefit cost ratio"as thetotal benefitsdividedbythetotal cost of a project with the total cost being equal to the total investment, both publicandprivate,requiredtoimplementthetotalprojectandderivethebenefits andwithtotalbenefitsbeingequaltotherevenuesandexpenses,numberofjobs, payrollbenefits,spin-offbenefitsofpayroll,shippingcosts,oranyotherbenefits that are determinable.

3.

Addthedefinitionof"largeproject"asaprojectwithatotalprojectcostbetween forty million dollars and eighty million dollars with a benefit cost ratio greater than or equal to five, a return on the state's investment greater than or equal to three and one half, and a private investment of between twenty-five and fifty percent of the total project cost.

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Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HLS 26RS-734 ENGROSSED HB NO.

776 4.

Add the definition of "standard project" as a project with a benefit cost ratio greaterthan or equal to one and a return on the state's investment greaterthan or equal to two and three hundred seventy-five thousandths.

5.

Add a requirement that the maximum amount for participation in standard projects be twenty-one million dollars, with a maximum allotment of seven million dollars per year per port and the maximum amount for participation in large projects be thirty-three million dollars, with a maximum allotment of eleven million dollars per year per port.

6.

Add a start date of July 1, 2027 for the Department of Transportation and Development to publish the official notices in the Official Journal of the State, instead of necessaryjournals.

7.

Remove that the categorized projects in proposed law not be funded by state funds.

8.

Add the requirement that large projects requiring a 20% local match is subject to the legislature allocating additional Transportation Trust Fund dollars to the Port Construction and Development Priority Program.

9.

Delete "a very large project" from the categories requiring local matches.

10.

Directs the La.

State Law Institute to alphabetize and renumber definitions contained in proposed law.

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