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Regular Session, 2011
HOUSE BILL NO. 384
BY REPRESENTATIVE PEARSON AND SENATOR GAUTREAUX
RETIREMENT/FUNDING: (Constitutional Amendment) Provides for a minimum of 10%
of nonrecurring revenue be applied toward reducing the balance of the unfunded
accrued liability of the state retirement systems
A JOINT RESOLUTION1
Proposing to amend Article VII, Section 10(D)(2)(b) of the Constitution of Louisiana, to2
provide for allowable uses of nonrecurring revenue; to provide for the payment of3
unfunded accrued liabilities; to provide for submission of the proposed amendment4
to the electors; and to provide for related matters.5
Notice of intention to introduce this Act has been published6
as provided by Article X, Section 29(C) of the Constitution7
of Louisiana.8
Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members9
elected to each house concurring, that there shall be submitted to the electors of the state of10
Louisiana, for their approval or rejection in the manner provided by law, a proposal to11
amend Article VII, Section 10(D)(2)(b) of the Constitution of Louisiana, to read as follows:12
§10. Expenditure of State Funds13
Section 10.14
* * *15
(D) Appropriations. 16
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HB NO. 384
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(2) Except as otherwise provided in this constitution, the appropriation or1
allocation of any money designated in the official forecast as nonrecurring shall be2
made only for the following purposes:3
* * *4
(b)(i) Providing for payments against the unfunded accrued liability of the5
public retirement systems which are in addition to any payments required for the6
annual amortization of the unfunded accrued liability of the public retirement7
systems, as required by Article X, Section 29(E)(2)(c) of this constitution; however,8
any such payments to the public retirement systems shall not be used, directly or9
indirectly, to fund cost-of-living increases for such systems.10
(ii) For Fiscal Years 2013-2014 and 2014-2015 the legislature shall11
appropriate no less than five percent of any money designated in the official forecast12
as nonrecurring to the Louisiana State Employees' Retirement System and the13
Teachers' Retirement System of Louisiana for application to the balance of the14
unfunded accrued liability of such systems existing as of June 30, 1988, in15
proportion to the balance of such unfunded accrued liability of each such system.16
Any such payments to the public retirement systems shall not be used, directly or17
indirectly, to fund cost-of-living increases for such systems.18
(iii) For Fiscal Year 2015-2016 and every fiscal year thereafter the19
legislature shall appropriate no less than ten percent of any money designated in the20
official forecast as nonrecurring to the Louisiana State Employees' Retirement21
System and the Teachers' Retirement System of Louisiana for application to the22
balance of the unfunded accrued liability of such systems existing as of June 30,23
1988, in proportion to the balance of such unfunded accrued liability of each such24
system. Any such payments to the public retirement systems shall not be used,25
directly or indirectly, to fund cost-of-living increases for such systems.26
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Section 2. Be it further resolved that this proposed amendment shall be submitted1
to the electors of the state of Louisiana at the statewide election to be held on October 22,2
2011.3
Section 3. Be it further resolved that on the official ballot to be used at said election4
there shall be printed a proposition, upon which the electors of the state shall be permitted5
to vote FOR or AGAINST, to amend the Constitution of Louisiana, which proposition shall6
read as follows:7
To require in Fiscal Years 2013-2014 and 2014-2015 that five percent of8
money designated in the official forecast as nonrecurring be applied toward9
the balance of the unfunded accrued liability which existed as of June 30,10
1988, for the Louisiana State Employees' Retirement System and the11
Teachers Retirement System of Louisiana. To further require that in Fiscal12
Year 2015-2016 and every fiscal year thereafter that ten percent of such13
nonrecurring revenue be applied to such purposes. (Amends Article VII,14
Section 10(D)(2)(b))15
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)]
Pearson HB No. 384
Abstract: Provides for a minimum amount of funds recognized as nonrecurring be applied
toward payment of the balance of the unfunded accrued liabilities which existed as
of June 30, 1988, for the La. State Employees' Retirement System and the Teachers
Retirement System of La.
Present constitution provides that any money designated in the official forecast as
nonrecurring shall be appropriated for the following purposes:
(1)Retiring or defeasance of bonds in advance of and in addition to the existing
amortization requirements of the state.
(2)Providing for payments against the unfunded accrued liability of the public
retirement systems which are in addition to any payments required for the annual
amortization of the unfunded accrued liability of the public retirement systems.
(3)Providing funding for capital outlay projects in the comprehensive state budget.
(4)Providing for allocation or appropriation for deposit into the Budget Stabilization
Fund. Article VII, §10.3(A)(3) and (C)(4) requires 25% of nonrecurring revenues HLS 11RS-500 ENGROSSED
HB NO. 384
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be deposited into the Budget Stabilization Fund unless the fund balance exceeds 4%
of the previous fiscal year's total state receipt.
(5)Providing for allocation or appropriation for deposit into the Coastal Protection and
Restoration Fund.
(6)Providing for new highway construction for which federal matching funds are
available, without excluding highway projects otherwise eligible as capital projects
under other provisions of law.
Proposed constitutional amendment retains present constitution and further provides that for
FY 2013-2014 and 2014-2015 a minimum of 5% of any money designated in the official
forecast as nonrecurring be applied toward payment of the balance of the unfunded accrued
liabilities for those liabilities which existed as of June 30, 1988, for the La. State Employees'
Retirement System and the Teachers Retirement System of La. in proportion to the balance
of such unfunded accrued liability of each system.
Proposed constitutional amendment further provides that for FY 2015-2016 and every fiscal
year thereafter the minimum amount applied toward payment of the balance of the unfunded
accrued liabilities shall increase to 10%.
Provides for submission of the proposed amendment to the voters at the statewide election
to be held Oct. 22, 2011.
(Amends Const. Article VII, §10(D)(2)(b))
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Appropriations to the
original bill.
1. Added that for FY 2013-2014 and 2014-2015 a minimum of 5% of any money
designated in the official forecast as nonrecurring be applied toward payment of
the balance of the unfunded accrued liabilities for those liabilities which existed
as of June 30, 1988, for the La. State Employees' Retirement System and the
Teachers Retirement System of La. in proportion to the balance of such unfunded
accrued liability of each system.
2. Increased the minimum amount to 10% for FY 2015-2016 and every fiscal year
thereafter.