The bill, SB 318, aims to amend the capital outlay process for nonstate entities receiving funding for the acquisition or construction of buildings. It requires these entities to establish and maintain an escrow account dedicated to long-term major capital maintenance, with a minimum balance requirement of either 10% of the total project cost or $1,000,000. The bill specifies that the construction of buildings includes major repairs, renovations, and necessary equipment. Additionally, it outlines that once the escrow account reaches the minimum threshold, further deposits are not required unless the balance falls below 5% of the total project cost.

Key amendments adopted in the bill include a reduction in the required duration for maintaining the escrow account from 30 years to 25 years, and the establishment of rules and regulations for implementation overseen by specific legislative committees. The bill also exempts certain projects from escrow requirements and mandates that the division of administration create criteria for what constitutes long-term major capital maintenance. The proposed changes will take effect on July 1, 2024, and aim to ensure that nonstate entities are financially prepared for the maintenance of projects funded through the Capital Outlay Act.

Statutes affected:
SB318 Original: 39:1(A)(1), 39:112(E)(4)
SB318 Engrossed: 39:1(A)(1), 39:112(E)(4)
SB318 Reengrossed: 39:1(A)(1), 39:112(E)(4)
SB318 Enrolled: 39:1(A)(1), 39:112(E)(4)
SB318 Act 764: 39:1(A)(1), 39:112(E)(4)