House Bill No. 381 proposes an amendment to the Capital Outlay Act, specifically targeting the population threshold for municipalities seeking a waiver of the matching funds requirement for nonstate capital outlay projects. The bill increases the population limit from 6,000 to 9,500 for municipalities eligible for this waiver, while maintaining the existing requirement that parishes with a population of 12,000 or less can also qualify. The division of administration retains the discretion to waive all or part of the 25% match requirement for municipalities or parishes that demonstrate an inability to provide local matching funds.

The provisions of this bill will apply to projects included in the capital outlay budget for fiscal years starting on or after July 1, 2025, with the effective date of the law set for the same day. This change aims to provide greater financial flexibility for smaller municipalities, allowing them to undertake necessary capital projects without the burden of matching funds, thereby promoting local development and infrastructure improvements.

Statutes affected:
HB381 Original: 39:112(E)(2)