HLS 10RS-1497 ORIGINAL Page 1 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Regular Session, 2010 HOUSE BILL NO. 1109 BY REPRESENTATIVE LAFONTA FUNDS/FUNDING: Provides relative to deposits into and transfers out of the Budget Stabilization Fund AN ACT1 To amend and reenact R.S. 39:94(C), relative to the Budget Stabilization Fund; to provide2 for the incorporation of monies in the Budget Stabilization Fund into the official3 forecast for the current fiscal year and the next fiscal year; to direct the treasurer to4 transfer monies from the Budget Stabilization Fund to the state general fund in5 certain circumstances; to suspend deposits into the Budget Stabilization Fund in6 certain circumstances; to provide for an effective date; and to provide for related7 matters.8 Be it enacted by the Legislature of Louisiana:9 Section 1. R.S. 39:94(C) is hereby amended and reenacted to read as follows:10 ยง94. Budget Stabilization Fund11 * * *12 C. The money in the fund shall not be available for appropriation13 incorporation into the official forecast except under the following conditions:14 (1)(a) If the official forecast of recurring money for the ensuing fiscal year15 is less than the official forecast of recurring money for the current fiscal year, the16 Revenue Estimating Conference shall incorporate a specified amount of the fund into17 the official forecast for the ensuing year pursuant to a concurrent resolution adopted18 by a favorable vote of two-thirds of the elected members of each house.19 HLS 10RS-1497 ORIGINAL HB NO. 1109 Page 2 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (b) If the legislature is not in session, the two-thirds consent requirement shall1 be obtained as provided in R.S. 39:87.2 (c) The amount of the fund that may be incorporated into the official forecast3 for the ensuing fiscal year shall not exceed either of the following:4 (i) The difference between the official forecast of recurring money for the5 ensuing fiscal year and the official forecast of recurring money for the current fiscal6 year.7 (ii) One-third of the fund balance, determined in accordance with R.S. 39:95,8 at the beginning of the current fiscal year.9 (2)(a) If a decrease in federal financial participation in state assistance10 expenditures for health or social services programs, including Federal Medical11 Assistance Percentages, creates a projected deficit for the next fiscal year, the12 difference between the current fiscal year's federal financial participation and the13 ensuing fiscal year's projected federal financial participation, not to exceed one-third14 of the fund, shall be incorporated into the next fiscal year's official forecast only with15 the consent of two-thirds of the elected members of each house of the legislature. 16 (b) The decreases in the projected federal financial participation and the17 projected deficit shall be incorporated into the continuation and five-year base line18 budget projection for the next fiscal year as presented to the Joint Legislative19 Committee on the Budget.20 (c) If the legislature is not in session, the two-thirds requirement may be21 satisfied by obtaining the written consent of two-thirds of the elected members of22 each house of the legislature in the manner provided by R.S. 39:87.23 (2) (3)(a) If a deficit for the current fiscal year is projected due to a decrease24 in the official forecast of recurring money, the Revenue Estimating Conference shall25 incorporate a specified amount of the fund into the official forecast for the current26 fiscal year pursuant to a concurrent resolution adopted by a favorable vote of two-27 thirds of the elected members of each house.28 HLS 10RS-1497 ORIGINAL HB NO. 1109 Page 3 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (b) If the legislature is not in session, the two-thirds consent requirement shall1 be obtained as provided in R.S. 39:87.2 (c) The amount of the fund that may be incorporated into the official forecast3 for the current fiscal year shall not exceed either of the following:4 (i) The amount of the projected deficit.5 (ii) One-third of the fund balance, determined in accordance with R.S. 39:95,6 at the beginning of the current fiscal year.7 (3) (4) In no event shall the amount included in the official forecast for the8 ensuing fiscal year pursuant to Paragraph (1) of this Subsection plus the amount9 included in the official forecast in the current fiscal year pursuant to Paragraph (2)10 of this Subsection exceed one-third of the fund balance, determined in accordance11 with R.S. 39:95, at the beginning of the current fiscal year.12 (5) If two-thirds of the elected members of each house of the legislature give13 consent for a specified amount of the fund to be incorporated into the official14 forecast, the state treasurer shall transfer the amount of monies so authorized from15 the fund to the state general fund.16 (4)(a) (6) No appropriation or deposit to the fund shall be made if such17 appropriation or deposit would cause the balance in the fund to exceed four percent18 of total state revenue receipts for the previous fiscal year. For the purposes of this19 Section, total state revenue receipts shall not include any monies received by the20 state from the Federal Emergency Management Administration or other federal21 sources providing disaster relief assistance.22 (b) (7) Notwithstanding any provision of this Section to the contrary, and23 except pursuant to a specific appropriation by the legislature, no appropriation or24 deposit to the fund shall be made in the same fiscal year in which a specified amount25 of the fund is incorporated into the official forecast or as an appropriation, use or26 withdrawal or transfer is made from the fund or until such time as the official27 forecast exceeds the actual collections of state general fund (direct) revenue for28 Fiscal Year 2008.29 HLS 10RS-1497 ORIGINAL HB NO. 1109 Page 4 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Section 2. Section 1 of this Act shall take effect and become operative if the1 amendment of Article VII, Section 10.3(C) of the Constitution of Louisiana contained in the2 Act which originated as House Bill No. of this 2010 Regular Session of the Legislature3 is adopted at the statewide election to be held on November 2, 2010 and at the same time as4 such proposed amendment becomes effective.5 Section 3. Sections 2 and 3 of this Act shall become effective on July 1, 2010. If6 vetoed by the governor and subsequently approved by the legislature, this Act shall become7 effective on the day following such approval.8 DIGEST The digest printed below was prepared by House Legislative Services. It constitutes no part of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)] LaFonta HB No. 1109 Abstract: Permits the Budget Stabilization Fund to be used if a decrease in FMAP creates a projected deficit. Prohibits deposit into the fund in the same fiscal year in which a portion of the fund is incorporated into the official forecast. Requires the treasurer to transfer the amount of monies authorized to the state general fund if 2/3 of the elected members of each house give consent for a specified amount to be incorporated into the official forecast. Present law establishes the Budget Stabilization Fund and provides for the monies to be deposited into the fund. Present law permits up to 1/3 of the Budget Stabilization Fund, subject to 2/3 approval of each house of the legislature, to be incorporated in the next fiscal year's official forecast if revenue estimates for the next fiscal year are less than the official forecast for the current fiscal year. Present law provides that if the legislature is not in session, the 2/3 requirement may be satisfied by obtaining the written consent of 2/3's of the elected members of each house of the legislature in a manner provided by law. Proposed law permits up to 1/3 of the Budget Stabilization Fund, subject to 2/3 approval of each house of the legislature, to be incorporated in the next fiscal year's official forecast if a decrease in federal financial participation in state assistance expenditures for health or social services programs, including Federal Medical Assistance Percentages(FMAP), creates a projected deficit for the next fiscal year. The amount that may be incorporated shall be the difference between the current fiscal year's federal financial participation and the ensuing fiscal year's projected federal financial participation, not to exceed 1/3 of the fund. Proposed law further provides that the changes in the projected federal financial participation and projected deficit shall be incorporated into the continuation and five-year base line budget projection for the next fiscal year as presented to the Joint Legislative Committee on the Budget. Present law further permits up to 1/3 of the Budget Stabilization Fund, subject to 2/3 approval of each house of the legislature, to be appropriated for the current fiscal year budget if a deficit for the current fiscal year is projected due to a decrease in the official forecast. HLS 10RS-1497 ORIGINAL HB NO. 1109 Page 5 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Proposed law permits up to 1/3 of the Budget Stabilization Fund, subject to 2/3 approval of each house of the legislature, to be incorporated into the current fiscal year's official forecast if a deficit for the current fiscal year is projected due to a decrease in the official forecast. Proposed law provides that if 2/3 of each house of the legislature approves a portion of the Budget Stabilization Fund to be incorporated into the official forecast, the state treasurer shall transfer the amount of monies so authorized to the general fund. Present law provides that no appropriation or deposit to the fund shall be made if such appropriation or deposit would cause the balance in the fund to exceed four percent of total state revenue receipts for the previous fiscal year. Further provides that total state revenue receipts shall not include any monies received by the state from the Federal Emergency Management Administration or other federal sources providing disaster relief assistance. Proposed law retains present law. Present law provides that except pursuant to a specific appropriation by the legislature, no appropriation or deposit to the fund shall be made in the same fiscal year as an appropriation, use or withdrawal is made from the fund or until such time as the official forecast exceeds the actual collections of state general fund (direct) revenue for Fiscal Year 2008. Proposed law provides that except pursuant to a specific appropriation by the legislature to the fund, no appropriation or deposit to the fund shall be made in the same fiscal year in which a specified amount of the fund is incorporated into the official forecast or an appropriation or transfer is made from the fund. Delete present law regarding FY 2008 collections. Section 1 of the Act becomes effective and operative if the amendment of Article VII, Section 10.3(C) of the Constitution of Louisiana contained in the Act which originated as HB of the 2010 RS is adopted at the statewide election to be held on November 2, 2010, and at the same time as such proposed amendment becomes effective. Sections 2 and 3 of the Act, which are the effective date provisions, become effective on July 1, 2010. (Amends R.S. 39:94(C))