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Regular Session, 2010
HOUSE BILL NO. 934
BY REPRESENTATIVE NOWLIN
COLLEGES/UNIVERSITIES: Provides for additional purposes for which public
postsecondary education management boards shall use revenues from oil, gas, and
mineral leases
AN ACT1
To amend and reenact R.S. 17:3367(C), relative to public postsecondary education2
management boards; to provide relative to the purposes for which public3
postsecondary education management boards shall use revenues from oil, gas, and4
mineral leases; to provide relative to certain capital projects; and to provide for5
related matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 17:3367(C) is hereby amended and reenacted to read as follows:8
ยง3367. Authority to execute mineral leases on college and university lands; term;9
use of revenues10
* * *11
C.(1) Revenues from oil, gas, and mineral leases executed by each board as12
authorized in Subsection A of this Section shall be allocated to the board which13
executed the lease, or its successor, and shall be used by the recipient board solely14
for the benefit of the college or university located on the leased properties. As to15
each such college or university, these revenues shall be in addition to any other16
revenues or funds appropriated or otherwise provided for or available to the college17
or university, and in no case shall any of these revenues be computed or considered18
by the division of administration or otherwise in determining the amounts to be19
appropriated to or for the college or university in the general appropriation act or any20
other act, and in no case shall these revenues, or any part of them, be computed or21 HLS 10RS-1617 ENGROSSED
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considered in determination of the allocation of funds under the Board of Regents1
appropriation formula for higher education.2
(2) The revenues received under this Subsection for a college or university3
shall be used for the following purposes:4
(a) To alleviate safety hazards and other bona fide emergency conditions.5
(b) To make needed major repairs to buildings, grounds, streets, and parking6
lots, purchase land, and upgrade utility systems of that institution.7
(c) For new capital construction or capital acquisitions.8
(d) For establishment of permanent endowment funds from which9
investment earnings are used for scholarships or as salaries or a supplement for10
salaries or for other expenses directly related to scholarly work for faculty members11
at the college or university.12
(e) For other operating expenses upon approval of the appropriate public13
postsecondary education management board.14
(3) Capital projects costing one hundred fifty thousand dollars or more shall15
be included in a capital outlay budget for submission to and action by the legislature.16
(4) In order to insure ensure that the highest priority shall be given to the17
projects aimed at preserving and improving existing facilities, the Board of Regents18
shall recommend priorities for emergencies and major repairs required on the college19
and university campuses.20
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)]
Nowlin HB No. 934
Abstract: Adds purposes for which public postsecondary education management boards
may use revenues from oil, gas, and mineral leases.
Present law authorizes public postsecondary education management boards, subject to the
approval of the State Mineral and Energy Board, to execute and fix the terms and conditions
of oil, gas, and mineral leases upon certain lands. Provides that revenues from such leases
shall be used by the recipient board solely for the benefit of the college or university located
on the leased properties. Specifies that such revenues shall be used for the following
purposes: HLS 10RS-1617 ENGROSSED
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(1)To alleviate safety hazards and other bona fide emergency conditions.
(2)To make needed major repairs to buildings, grounds, streets, and parking lots,
purchase land, and upgrade utility systems.
(3)For new capital construction or capital acquisitions.
(4)For establishment of permanent endowment funds from which investment earnings
are used for scholarships or as salaries or salary supplements or for other expenses
directly related to scholarly work for faculty members.
Proposed law adds other operating expenses upon the board's approval to this list of purposes
for which such revenues shall be used.
Present law requires capital projects costing $150,000 or more to be included in a capital
outlay budget for submission to and action by the legislature. Proposed law deletes present
law. Retains present law and provides that colleges and universities may undertake projects
costing less than $500,000 without being included in a capital outlay budget.
(Amends R.S. 17:3367(C))
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Education to the original
bill.
1. Deleted present law requirement that capital projects costing $150,000 or more
be included in a capital outlay budget for submission to and action by the
legislature.
2. Made technical changes.