The proposed legislation establishes the Louisiana Rural Infrastructure Revolving Loan Program, designed to provide funding for local governments to support essential infrastructure projects. This program will create a revolving loan fund managed by the Department of the Treasury, financed through grants, appropriations, and loan repayments. Local governments with populations under 15,000 will be eligible for loans up to $1.5 million, with the condition that they can only hold one loan at a time until it is fully repaid. The bill outlines eligibility criteria, including financial stability and compliance with audit requirements, and empowers the State Bond Commission to issue bonds and guarantee debts for eligible projects, while providing tax exemptions on the interest of such debts.

Additionally, the bill introduces new provisions regarding the issuance and management of debt by the commission, asserting that the legality of the debt and related resolutions will be conclusively presumed valid, with no court jurisdiction to question them. It specifies that interest on bonds related to loans will be exempt from state taxation and allows proceeds from these financial instruments to cover issuance costs. The legislation clarifies that any debt incurred by the commission will not count as net state tax-supported debt, ensuring it does not affect the state's overall debt limits. The legislative auditor will review loan applications for compliance, and the commission is required to report to the legislature every two years on financial metrics related to the loans. The implementation of this Chapter is contingent upon legislative appropriation of funds, with an effective date of July 1, 2023.