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Regular Session, 2011
SENATE BILL NO. 147
BY SENATOR CHAISSON
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
FUNDS/FUNDING. Constitutional amendment to provide relative to deposits into the
Budget Stabilization Fund. (2/3-CA13s1(A)) (7/1/12)
A JOINT RESOLUTION1
Proposing to add Article VII, Section 10.3(C)(5) of the Constitution of Louisiana, relative2
to the Budget Stabilization Fund; to provide for deposits into the Budget3
Stabilization Fund in certain circumstances; to provide for the interruption of4
deposits into the Budget Stabilization Fund in certain circumstances; and to specify5
an election for submission of the proposition to electors and provide a ballot6
proposition.7
Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members8
elected to each house concurring, that there shall be submitted to the electors of the state, for9
their approval or rejection in the manner provided by law, a proposal to add Article VII,10
Section 10.3(C)(5) of the Constitution of Louisiana, to read as follows:11
ARTICLE VII12
ยง10.3. Budget Stabilization Fund13
Section 10.3.14
* * *15
(C) The money in the fund shall not be available for appropriation or use16
except under the following conditions:17 SB NO. 147
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* * *1
(5)(a) If at any time mineral revenues exceed the base as provided in2
Subsubparagraphs (A)(2)(a) and (b), and monies in the fund are made available3
for appropriation or use as provided in Paragraph (C), no deposit of mineral4
revenues shall be made as provided in Subsubparagraph (A)(2)(a) in the fiscal5
year for which money in the fund is appropriated or for which money in the6
fund is incorporated into the official forecast nor for the ensuing fiscal year,7
except by specific appropriation by the legislature. Thereafter, deposits of8
mineral revenues shall resume as provided in Subsubparagraph (A)(2)(a) except9
in an annual amount not to exceed twenty-five percent of the most recent10
amount made available for appropriation or use as provided in this Paragraph11
until either the balance in the fund equals the maximum as provided in12
Subparagraph (C)(4) or an amount equal to the amount made available for13
appropriation or use is deposited into the fund, whichever is less.14
(b) Except as provided in Subsubparagraph (C)(5)(a) of this Paragraph,15
in the fiscal year for which money in the fund is appropriated or incorporated16
into the official forecast or for the ensuing fiscal year, deposits to the fund shall17
be made as provided in Paragraph (A) of this Section.18
Section 2. Be it further resolved that this proposed amendment shall become19
effective July 1, 2012.20
Section 3. Be it further resolved that this proposed amendment shall be submitted21
to the electors of the state of Louisiana at the statewide election to be held on October 22,22
2011.23
Section 4. Be it further resolved that on the official ballot to be used at said election24
there shall be printed a proposition, upon which the electors of the state shall be permitted25
to vote FOR or AGAINST, to amend the Constitution of Louisiana, which proposition shall26
read as follows:27
To provide that if at any time mineral revenues exceed the base provided by28
law and monies are withdrawn from the Budget Stabilization Fund, no29 SB NO. 147
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deposit of mineral revenues shall be made to the Budget Stabilization Fund1
in the same or ensuing fiscal year in which monies in the fund are2
appropriated or incorporated into the official forecast, except by specific3
legislative appropriation, and thereafter deposits of mineral revenues into the4
fund shall resume except in an annual amount not to exceed twenty-five5
percent of the most recent amount appropriated or incorporated into the6
official forecast.7
(Adds Article VII, Section 10.3(C)(5))8
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Martha S. Hess.
DIGEST
Chaisson (SB 147)
Present constitution establishes the Budget Stabilization Fund in the constitution and
provides the following revenues are to be deposited into the fund:
(1) Monies available for appropriation in excess of the expenditure limit.
(2) All mineral revenues received by the state in each fiscal year in excess of the base,
which, by legislative act, was increased to $850 million.
(3) 25% of any monies recognized by the Revenue Estimating Conference as
nonrecurring.
(4) Any other monies appropriated to the fund by the legislature including the balance
of any monies declared to be nonrecurring.
Proposed constitutional amendment retains present constitution.
Present constitution 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 constitution 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.
Proposed constitutional amendment retains present constitution.
Proposed constitutional amendment provides that if at any time mineral revenues exceed the
base and money in the fund is made available for appropriation or use as provided in present
constitution, no deposit of mineral revenues shall be made in the fiscal year for which money
in the fund is appropriated or for which money in the fund is incorporated into the official
forecast nor for the ensuing fiscal year, except by specific appropriation. Thereafter,
deposits of mineral revenues shall resume as provided in present constitution except in an
annual amount not to exceed 25% of the most recent amount made available for
appropriation or use until the balance in the fund equals the maximum or an amount equal
to the amount made available for appropriation or use is deposited into the fund, whichever SB NO. 147
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is less.
Proposed constitutional amendment further provides that all other deposits, except mineral
revenues, shall continue to be made to the fund in the fiscal year for which money in the
fund is appropriated or incorporated into the official forecast or for the ensuing fiscal year.
Specifies submission of the amendment to the voters at the statewide election to be held on
October 22, 2011.
Effective July 1, 2012, if approved by voters.
(Adds Const. Art. VII, Sec. 10.3(C)(5))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Finance to the original
bill.
1. Revises circumstances when deposits of mineral revenues do not have to be
made to the fund.
2. Authorizes legislature to appropriate mineral revenues to the fund in periods
when deposits of mineral revenues otherwise are not required to be made to
the fund.
2. Provides that when deposits to the fund resume they shall not exceed 25% of
the most recent amount made available for appropriation or use.
3. Adds effective date of constitutional provision.