LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 511 HLS 21RS 858
Bill Text Version: REENGROSSED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: May 5, 2021 12:04 PM Author: MCFARLAND
Dept./Agy.: Transportation and Development
Subject: Provides for budgetary operations and funding for DOTD Analyst: Alan M. Boxberger
BUDGETARY CONTROLS RE SEE FISC NOTE GF EX See Note Page 1 of 2
Provides relative to budgetary operations and funding for the Department of Transportation and Development
Present law requires the treasurer to deposit the avails of taxes from the sale, use, lease, rental, distribution, consumption
and storage for use or consumption of motor vehicles into the TTF on certain triggering conditions in an amount equal to an
increase in SGF as certified by the Revenue Estimating Conference as being attributable to certain mineral revenues.
Proposed law provides for legislative review of departmental operations; requires the legislative auditor to commence a
comprehensive audit of DOTD to include operations, efficiency, and use of the Construction Subfund of the TTF-Regular;
requires the treasurer to deposit the avails of motor vehicle sales taxes into the Construction Subfund of the TTF beginning
with 10% of the total in FY 22 and increasing by 10% cumulative until 100% of avails are so deposited in FY 31; repeals
deposit of certain mineral revenues into the TTF on certain triggers; and requires DOTD to develop an online platform to
provide public access to Highway Priority Program information, specifies online content and requires raising public
awareness.
EXPENDITURES 2021-22 2022-23 2023-24 2024-25 2025-26 5 -YEAR TOTAL
State Gen. Fd. SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Agy. Self-Gen. SEE BELOW SEE BELOW SEE BELOW $0 $0 $0
Ded./Other INCREASE INCREASE INCREASE $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total
REVENUES 2021-22 2022-23 2023-24 2024-25 2025-26 5 -YEAR TOTAL
State Gen. Fd. ($47,370,000) ($95,940,000) ($146,010,000) ($197,080,000) ($249,600,000) ($736,000,000)
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $47,370,000 $95,940,000 $146,010,000 $197,080,000 $249,600,000 $736,000,000
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0 $0 $0
EXPENDITURE EXPLANATION
Proposed law will reallocate the appropriation of SGF totaling $47.4 M in FY 22 derived from 10% of the state sales tax on
the sale, use, lease or rental of motor vehicles into the Construction Subfund of the Transportation Trust Fund. The
percentage of motor vehicle sales taxes to be deposited into the Construction Subfund will increase by a cumulative 10%
annually until 100% of the avails are so deposited in FY 31.
LA Constitution Article VII, §27(B)(2) provides that, “monies in the subfund shall be appropriated and dedicated solely for
the direct costs associated with actual project delivery, construction, and maintenance of transportation and capital transit
infrastructure projects of the state and local government. The monies in the subfund that are appropriated by the legislature
to the Department of Transportation and Development, or its successor, shall not be utilized by the department for the
payment of employee wages and related benefits or employee retirement benefits.” These monies will generally be available
for appropriation in the Capital Outlay Appropriation Bill to provide for construction and project delivery or to DOTD in the
General Appropriations Bill for operating costs associated with project delivery and maintenance. While proposed law does
not create a direct, material change in specific expenditures within DOTD, monies derived from the state sales tax on motor
vehicles are currently appropriated out of the SGF to other general purposes statewide.
SEE EXPENDITURE EXPLANATION CONTINUED ON PAGE TWO
REVENUE EXPLANATION
Proposed law does not create a direct material effect on governmental revenues, but does require a deposit of SGF in an
amount equal to 10% of the state sales tax on the sale, use, lease or rental of motor vehicles into the Construction Subfund
of the Transportation Trust Fund. The percentage of motor vehicle sales taxes to be deposited into the Construction Subfund
will increase by a cumulative 10% annually until 100% of the avails are so deposited in FY 31. For illustrative purposes,
the LFO reports the reallocation of the SGF dollars as a negative to the SGF and an increase to Ded./Other in
order to illustrate that these revenues will be allocated to a specific purpose within DOTD rather than being
available to the legislature to provide for other general, nonspecific expenditures of the state as in present law.
NOTE: The amounts reported in the revenue block above for FYs 22 through 25 depict the 1/19/21 forecast by the Revenue
Estimating Conference for motor vehicle sales tax collections multiplied by the 10% cumulative increases (10% in FY 22,
20% in FY 23, 30% in FY 24, 40% in FY 25 and 50% in FY 26). The LFO assumes a 1.013% revenue growth for FY 26 as
reported in the revenue block, which is the average of the annual growth rates forecast between FYs 22 and 25.
Senate Dual Referral Rules House
x 13.5.1 >= $100,000 Annual Fiscal Cost {S & H} x 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Christopher A. Keaton
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Legislative Fiscal Officer
 LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 511 HLS 21RS 858
Bill Text Version: REENGROSSED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: May 5, 2021 12:04 PM Author: MCFARLAND
Dept./Agy.: Transportation and Development
Subject: Provides for budgetary operations and funding for DOTD Analyst: Alan M. Boxberger
CONTINUED EXPLANATION from page one: Page 2 of 2
EXPENDITURE EXPLANATION CONTINUED FROM PAGE ONE
Proposed law provides that no later than July 1, 2022, the LA Legislative Auditor (LLA) shall commence a comprehensive
audit of DOTD to include enumerated items such as operations, organizational efficiency, and use of the avails of the taxes
deposited into the Construction Subfund of the TTF-Regular. The audit findings shall be submitted to the speaker of the
House of Representatives and the President of the Senate no later than September 30, 2023. The LLA estimates
expenditures of approximately $11,000 SGR over the course and scope of the project in FYs 21 through 23 to perform the
required audit of the Construction Subfund and report on its findings (depicted in this fiscal note as SEE BELOW in SGR
expenditures). LLA will bill DOTD the amount incurred to perform the audit, which will result in a corresponding expenditure
increase by DOTD from available sources (depicted in this fiscal note as an INCREASE in Ded./Other expenditures).
Senate Dual Referral Rules House
x 13.5.1 >= $100,000 Annual Fiscal Cost {S & H} x 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Christopher A. Keaton
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Legislative Fiscal Officer


Statutes affected:
HB511 Original:
HB511 Engrossed:
HB511 Reengrossed: