Louisiana Senate Bill SB434

Louisiana 2010 Regular Session

• Introduced: 3/29/10
• Refer: 3/29/10
• Report Pass: 5/17/10
• Engrossed: 6/2/10
• Refer: 6/3/10

Caption

Constitutional amendment relative to deposits into the Millennium Trust and the Louisiana Fund. (2/3 CA13s1(A)) (EG SEE FISC NOTE SD RV See Note)

Impact

If passed, this bill would significantly affect the financial management of funds received through the tobacco settlement. The Millennium Trust has historically provided funding for health care and other state needs, so the reduction in its allocated funds could lead to a decrease in available resources for those programs. In contrast, the increase in allocations to the Louisiana Fund could provide greater immediate funding for state expenditures, but the long-term consequences for health-related initiatives may be concerning to certain stakeholders.

Summary

Senate Bill 434 proposes an amendment to the Louisiana Constitution regarding the distribution of funds from the Master Settlement Agreement related to tobacco litigation. The bill aims to adjust the allocation of money received from the settlement, specifically reducing the percentage deposited into the Millennium Trust from 75% to 25%, while increasing the amount deposited into the Louisiana Fund from 25% to 75%. This amendment seeks to modify the financial framework that currently governs the flow of settlement funds into these two trusts, reflecting changes in funding priorities.

Sentiment

The discussions surrounding SB 434 are expected to generate varying sentiments among legislators and the public. Proponents of the bill may argue that reallocation of funds better addresses current fiscal needs and prioritizes urgent projects within the state budget. Conversely, opponents could express concerns about the diminishing support for health programs historically funded through the Millennium Trust, fearing it may compromise public health interests and long-term health funding.

Contention

Notable points of contention may arise during legislative discussions on SB 434, particularly regarding the appropriateness of diverting funds from the Millennium Trust. There may be debates about the potential risks to public health initiatives that rely on stable funding from the Trust if the bill is enacted. Additionally, the proposed amendment will also require public approval, which could lead to further division among constituents, particularly those aligned with health advocacy organizations.