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

HB 488 establishes a new special treasury fund dedicated to the Belle Chasse Bridge public-private partnership project by creating the Belle Chasse Bridge Merit-Based Special Fund under Louisiana Revised Statutes 48:250.4.4. The bill diverts one-fifth of the state's portion of severance tax revenues collected from Plaquemines Parish that would otherwise flow to the state general fund into this dedicated fund. The legislation amends R.S. 47:645(B)(2) to except this diversion from the standard severance tax allocation framework, ensuring the revenues bypass normal appropriation processes and flow directly to support the Belle Chasse Bridge P3 project. The fund monies may be invested consistent with state general fund investment practices, with all interest earnings and unexpended balances carried forward to the following fiscal year.

The Department of Transportation and Development receives appropriations from this fund with statutory restrictions on their exclusive use. The monies may be applied to reduce toll rates charged to users of the Belle Chasse Bridge, pay developer compensation if the state exercises an early handback option under the P3 contract, cover annual consumer price index buy-down payments required by the P3 agreement, or fund departmental projects and improvements within areas designated as alternative facilities under the P3 contract terms. This dedicated revenue stream protects funding for the bridge project from general budget pressures and annual appropriations battles, creating a long-term financing mechanism tied directly to Plaquemines Parish severance tax revenues. The practical effect ensures stable funding for toll reduction and contract obligations while preserving flexibility for related transportation improvements in the affected parish.

The fund operates within Louisiana's existing severance tax collection and allocation framework established in R.S. 47:645 and the constitutional limitations on severance tax use contained in Article VII, Section 4 of the Louisiana Constitution. The diversion occurs after all constitutionally mandated allocations, including Bond Security and Redemption Fund deposits under Article VII, Section 9(B), have been satisfied. The structure respects constitutional constraints while carving out a dedicated revenue source through legislative authorization. The P3 mechanism itself derives from the state's broader public-private partnership authority, and this fund represents a financing innovation that ties long-term operational needs of the Belle Chasse Bridge directly to the severance tax revenues generated within the parish it serves. The effective date of July 1, 2026 allows time for contractual coordination with the private developer and integration with existing P3 agreement terms.