LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 286 HLS 24RS 161
Bill Text Version: ENGROSSED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: March 21, 2024 5:03 PM Author: BRAUD
Dept./Agy.: Department of Transportation and Development
Subject: Exempts certain residents from payment of certain tolls Analyst: Kimberly Fruge
HIGHWAYS/INTERSTATE EG INCREASE SD EX See Note Page 1 of 1
Provides an exemption from tolls located in a parish with a public-private partnership project
Proposed law exempts a resident of a parish with a population of less than 25,000, in which a public-private partnership for
a bridge replacement is located, from the payment of tolls when the resident has purchased an exempt toll tag, presents a
certificate of motor vehicle registration, and provides proof of residency. Proposed law requires the Department of
Transportation and Development to adopt rules and regulations in accordance with the Administrative Procedure Act to
efficiently implement and enforce the provisions of proposed law.
EXPENDITURES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other INCREASE INCREASE INCREASE INCREASE INCREASE
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total
REVENUES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
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 result in a significant increase in expenditures for the Department of Transportation and Development
(DOTD) to cover the cost of the tolls for exempt residents. Proposed law exempts residents of a parish with a population of
less than 25,000, in which a public-private partnership (P3) for a bridge replacement is entirely located, from the payment of
tolls. DOTD reports that the only project that currently falls within this criteria is the Belle Chasse P3.
DOTD reports that, based on the agreement with the private providers, the department would be responsible for covering
the cost of the tolls for exempt residents. Based on initial projections, this equates to approximately $2.4 M in the first year
and a maximum of approximately $4.5 M in the last year of tolling (2054). This estimate only includes the auto-local option,
currently set at $0.25 a crossing. If all local vehicles are eligible, including medium and heavy trucks, this amount would
increase by an indeterminable amount. These expenditures are assumed to be Statutory Dedications out of the
Transportation Trust Fund - Regular. To the extent the department is unable to cover these costs, in whole or in part, SGF
may be required.
To the extent other P3 projects fall into this criteria in the out years, expenditures may increase further; however, if DOTD is
able to negotiate to include these exemptions or reduced costs in the contract, these costs will not be realized or may be
realized at a reduced rate for those projects. The likelihood of another P3 project that meets these criteria is finalized and
toll revenues collected in the five year window is indeterminable, but low.
REVENUE EXPLANATION
There is no anticipated direct material effect on governmental revenues as a result of this measure. Proposed law requires
an exemption toll tag to be provided to residents in parishes with a population of less than 25,000 with a P3 project. DOTD
reports that these tags will likely be supplied by the private provider maintaining the bridge and will not increase revenues
for the department.
Senate Dual Referral Rules House
x 13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
13.5.2 >= $500,000 Annual Tax or Fee Patrice Thomas
6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Deputy Fiscal Officer