Louisiana House Bill HB488

Louisiana 2026 Regular Session

• Introduced: 2/26/26
• Refer: 2/26/26
• Refer: 3/9/26
• Report Pass: 4/27/26
• Engrossed: 5/6/26
• Refer: 5/7/26

Caption

TAX/SEVERANCE TAX: Establishes the Belle Chasse Bridge Merit-Based Special Fund and provides for use of the monies in the fund (RE -$11,476,249 GF RV See Note)

Summary

HB 488 creates the Belle Chasse Bridge Merit-Based Special Fund in the state treasury and directs that it receive one-fifth of the recurring severance tax revenues collected in Plaquemines Parish that would otherwise go to the state general fund. The bill also amends the severance tax disposition statute to make this transfer an exception to the general rule that excess collections are credited to the state treasury. The fund is invested like the state general fund, retains unspent balances, and earns interest that stays in the fund. Money in the fund must be appropriated to the Department of Transportation and Development and used only for Belle Chasse Bridge-related purposes. Those purposes include reducing toll rates on the Belle Chasse Bridge public-private partnership project, paying amounts owed to the developer if DOTD exercises its early handback option under the contract, and funding DOTD projects or improvements in areas identified for an alternative facility under the P3 contract. The bill is effective July 1, 2026.

Impact

The bill changes state fiscal law by dedicating a portion of Plaquemines Parish severance tax revenue to a new special fund instead of the general fund, reducing general fund revenue by the amount diverted. It also creates a statutory funding mechanism tied specifically to the Belle Chasse Bridge P3 contract and DOTD, giving the department a dedicated revenue source for toll relief, contract-related obligations, and related transportation improvements.

Sentiment

The bill appears to have been broadly supported in the House, passing final passage unanimously 94-0. The available context shows no recorded committee transcript debate, and the measure advanced to Senate Finance, suggesting the main legislative sentiment was favorable toward providing a dedicated funding stream for the bridge project and associated obligations.

Contention

The principal policy issue is the diversion of severance tax revenue from the state general fund to a project-specific transportation fund, which has budget implications reflected in the fiscal note. The bill was narrowed in committee to limit the deposit to one-fifth of recurring Plaquemines Parish severance tax revenues, and floor amendments removed language that would have allowed use of the fund for annual consumer price index buy-down payments under the P3 contract. Those changes indicate some concern about the scope of the fund’s uses and the size of the revenue dedication, even though the bill ultimately passed the House unanimously.