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Regular Session, 2011
SENATE BILL NO. 144
BY SENATOR WALSWORTH
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
FUNDS/FUNDING. Provides relative to the sunset and abolition of certain special funds
in the state treasury. (7/1/11)
AN ACT1
To amend and reenact R.S. 49:308.5, relative to the state treasury; to sunset and abolish2
certain funds and statutory dedications; to provide for certain exceptions; and to3
provide for related matters.4
Be it enacted by the Legislature of Louisiana:5
Section 1. R.S.49:308.5 is hereby amended and reenacted to read as follows: 6
ยง308.5. Abolition and recreation of certain Sspecial funds and dedication of7
money 8
A. The legislature hereby finds that due to the number of special funds in the9
state treasury it is difficult for the governor, the legislature, and the public to assess10
the return on investment of the activities supported by such funds. In order to address11
this situation, the legislature finds that a system of transparency and accountability12
needs to be established and that the authority for such funds should routinely sunset13
after a full and comprehensive review of such funds unless the return on14
investment of the activities funded by monies deposited in such fund warrants the15
continuation of this method of funding. Further inducing competition for funding16
from the state general fund will put all activities on an equal footing and will allow17 SB NO. 144
SLS 11RS-278 ORIGINAL
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the governor and the legislature to better prioritize funding.1
B.(1) The division of administration shall establish a procedure to assure that2
the activities supported by a special fund are subject to the same level of3
transparency and accountability as activities supported by the state general fund. The4
procedure shall include the annual submission of reports no later than December first5
of each year for all entities and activities supported by appropriations from the fund.6
(2) The reports shall be submitted to the president of the Senate, the speaker7
of the House of Representatives, and the division of administration. The reports to8
the division of administration shall be submitted electronically in a form and format9
as specified and established by the commissioner of administration. The division of10
administration shall publish the reports in an electronic database so as to ensure11
transparency and accountability.12
(3)(a) Beginning October 1, 2009, and every two years thereafter, the division13
of administration shall develop a plan and schedule for the review of the special14
funds and dedications. The plan and schedule shall be submitted to the Joint15
Legislative Committee on the Budget for its review and approval. The plan may be16
adjusted annually as needed.17
(b) Each plan and schedule shall provide for the review of not more than18
twenty-five percent of the special funds and dedications. The plan and schedule shall19
specify the funds and dedications that are to be reviewed.20
(c) The Joint Legislative Committee on the Budget, hereinafter referred to as21
"the committee," shall conduct a review of the special funds and dedications as22
specified in each such plan and schedule.23
(4) No later than February 15, 2010 and every two years thereafter, the24
committee shall report the findings of each biennial review to the speaker of the25
House of Representatives, the president of the Senate, the governor, and the26
commissioner of administration.27
B. Beginning June 30, 2012, and every four years thereafter,28
notwithstanding any other law to the contrary and except as provided by the29 SB NO. 144
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Constitution of Louisiana and as further provided by Subsection C and D of this1
Section, all special funds in the state treasury are hereby abolished and any and2
all laws of the state which dedicate or otherwise provide for the use of money3
required to be deposited in the state treasury are repealed and superseded. The4
treasurer is therefore authorized and directed to transfer the balances of the5
abolished funds and deposit them into the general fund. The treasurer, upon6
receipt of such money, and after compliance with the requirements of Article7
VII, Section 9(B) of the constitution relative to the Bond Security and8
Redemption Fund, shall deposit the money in and credit it to the general fund.9
All interest earned on the investment of the money shall be deposited in and10
credited to the general fund.11
C. The Joint Legislative Committee on the Budget shall, no later than12
December 31 of the year before such funds shall be abolished, perform a full13
and comprehensive review of all such special funds and shall make14
recommendations on the continuance of such funds. Unless the legislature15
enacts a law to continue or recreate a fund, the fund shall be abolished in16
accordance with the provisions of Subsection B of this Section.17
D. This Section shall not apply to or affect the laws which dedicate or18
otherwise provide for the use of the following money or the laws which provide for19
the following special funds in the state treasury:20
(1) Special funds or dedications of money received by the state or by any21
state board, agency, or commission which is protected by the Constitution of22
Louisiana and laws effectuating such special funds and dedication or special funds23
containing money which is not required by the constitution to be deposited in the24
state treasury pursuant to Article VII, Section 9(A) of the Constitution of Louisiana.25
(2) Special funds in the state treasury established solely as a requirement of26
the terms, conditions, or requirements of:27
(a) Grants, donations, or other forms of assistance.28
(b) Court or regulatory agency orders or judgments.29 SB NO. 144
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(c) Contracts of the state or of its agencies, boards, or commissions, including1
contracts related to the issuance of bonds, notes, and other indebtedness.2
(3) Special funds and dedications of money provided by law for money3
received by or on behalf of a state board, agency, authority, or commission which is4
mainly composed of and represents members of a trade, business, or professional5
association from fees or assessments paid by the members of the trade, business, or6
professional association and which expends the money on market or product research7
and development.8
(4) Special funds and dedications of money provided by law related to the9
judiciary.10
(5) Special funds and dedications of money provided by law related to11
retirement funds.12
Section 2. This Act shall become effective on July 1, 2011.13
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Heyward Jeffers.
DIGEST
Present law provides that certain special funds in the state treasury will routinely sunset
unless the return on the investment of the activities funded by monies deposited in such
funds warrant the continuation of this method of funding.
Proposed law provides that beginning June 30, 2012, and every four years thereafter, all
special funds in the state treasury are abolished and any and all laws of the state which
dedicate or otherwise provide for the use of money required to be deposited in the state
treasury are repealed and superseded and the state treasurer is directed, upon receipt of such
money, and after compliance with the requirements of Article VII, Section 9(B) of the
constitution relative to the Bond Security and Redemption fund, shall deposit the money in
and credit it to the general fund. All interest earned on the investment of such money shall
be deposited in and credited to the general fund.
Proposed law requires the Joint Legislative Committee on the Budget will, no later than
December 31 of the year before such funds will be abolished to perform a full and
comprehensive review of all such special funds and will make recommendations on the
continuance of such funds. Unless the legislature enacts a law to continue or recreate a fund,
the fund will be abolished.
Effective July 1, 2011.
(Amends R.S. 49:308.5)