SLS 11RS-449 ORIGINAL Page 1 of 14 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Regular Session, 2011 SENATE BILL NO. 148 BY SENATOR CLAITOR Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana. LEGISLATIVE SESSIONS. Provides for biennial legislative sessions. (2/3-CA13s1(A)) A JOINT RESOLUTION1 Proposing to amend Article III, Sections 2(A)(1), 16(A) and (E), Article IV, Sections2 5(G)(2) and 9, Article VII, Sections 10(B) and (C)(1), 10.1(C)(1), 10.4(A), 10.5(C),3 10.8(A)(2), (3), and (4), (C)(1) and (3)(b), 10.10(D)(1), 11(A) and (C), and (27)(B),4 Article VIII, Section 13(B), Article X, Section 13(A), Article XII, Section 6(A)(1),5 and Article XIV, Section 10 and to repeal Article III, Section 2(A)(3) and (4) of the6 Constitution of Louisiana, relative to legislative sessions; to provide that the7 legislature shall meet biennially in regular session in even-numbered years; to8 remove certain references to annual regular sessions and to regular sessions in other9 years; to provide relative to biennial budgeting; and to specify an election for10 submission of the proposition to electors and provide a ballot proposition.11 Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members12 elected to each house concurring, that there shall be submitted to the electors of the state, for13 their approval or rejection in the manner provided by law, a proposal to amend Article III,14 Sections 2(A)(1), 16(A) and (E), Article IV, Sections 5(G)(2) and 9, Article VII, Sections15 10(B) and (C)(1), 10.1(C)(1), 10.4(A), 10.5(C), 10.8(A)(2), (3), and (4), (C)(1) and (3)(b),16 10.10(D)(1), 11(A) and (C), and (27)(B), Article VIII, Section 13(B), Article X, Section17 SB NO. 148 SLS 11RS-449 ORIGINAL Page 2 of 14 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. 13(A), Article XII, Section 6(A)(1), and Article XIV, Section 10 and to repeal Article III,1 Section 2(A)(3) and (4) of the Constitution of Louisiana, to read as follows:2 ARTICLE III. LEGISLATIVE BRANCH3 §2. Sessions4 Section 2. (A) Annual Biennial Session. (1) The legislature shall meet5 annually biennially in regular session for a limited number of legislative days in the6 state capital in even-numbered years for not more than one hundred legislative7 days during a period of one hundred twenty-five calendar days. A legislative day8 is a calendar day on which either house is in session. No such session shall9 continue beyond the one hundred twenty-fifth calendar day after convening.10 The legislature shall convene at noon on the last Monday in January. No new11 matter intended to have the effect of law shall be introduced or received by12 either house after six o'clock in the evening of the twenty-third calendar day. No13 matter intended to have the effect of law, except a measure proposing a14 suspension of law, shall be considered on third reading and final passage in15 either house after six o'clock in the evening of the fifty-seventh legislative day16 or the eighty-second calendar day, whichever occurs first, except by a favorable17 record vote of two-thirds of the elected members of each house.18 * * *19 §16. Appropriations20 Section 16.(A) Specific Appropriation for One Year Appropriations.21 Except as otherwise provided by this constitution, no money shall be withdrawn22 from the state treasury except through specific appropriation, for an appropriations23 period not to exceed two years; however, such appropriations shall be allocated24 for each fiscal year. and no appropriation shall be made under the heading of25 contingencies or for longer than one year.26 * * *27 (E) Extraordinary Session. Except for expenses of the legislature, a bill28 appropriating money in an extraordinary session convened after final adjournment29 SB NO. 148 SLS 11RS-449 ORIGINAL Page 3 of 14 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. of the regular session in the last third year of the term of office of a governor shall1 require the favorable vote of three-fourths of the elected members of each house.2 * * *3 ARTICLE IV. EXECUTIVE BRANCH4 * * *5 §5. Governor; Powers and Duties6 Section 5. * * *7 (G) Item Veto.* * *8 (2) The governor shall veto line items or use means provided in the bill so9 that total appropriations for the any year shall not exceed anticipated revenues for10 that year.11 * * *12 §9. Treasurer; Powers and Duties13 Section 9. There shall be a Department of the Treasury. The treasurer shall14 head the department and shall be responsible for the custody, investment, and15 disbursement of the public funds of the state, except as otherwise provided by this16 constitution. He shall report annually to the governor and to the legislature at least17 one month before each regular session at such time as shall be provided by law on18 the financial condition of the state, and shall have other powers and perform other19 duties authorized by this constitution or provided by law.20 * * *21 ARTICLE VII. REVENUE AND FINANCE22 * * *23 §10. Expenditure of State Funds24 Section 10. * * *25 (B) Official Forecast. The conference shall prepare and publish initial and26 revised estimates of money to be received by the state general fund and dedicated27 funds for the current and next two fiscal years which that are available for28 appropriation. In each estimate, the conference shall designate the money in the29 SB NO. 148 SLS 11RS-449 ORIGINAL Page 4 of 14 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. estimate which is recurring and which is nonrecurring. All conference decisions to1 adopt these estimates shall be by unanimous vote of its members. Changes to the2 unanimous vote requirement shall be made by law enacted by a favorable vote of3 two-thirds of the elected members of each house. The most recently adopted estimate4 of money available for appropriation shall be the official forecast.5 (C) Expenditure Limit. (1) The legislature shall provide for the determination6 of an expenditure limit for each fiscal year to be established during the first quarter7 of the calendar year for the next two fiscal year years. However, the expenditure8 limit for the 1991-1992 Fiscal Year shall be the actual appropriations from the state9 general fund and dedicated funds for that year except funds allocated by Article VII,10 Section 4, Paragraphs (D) and (E). For subsequent fiscal years, the limit shall not11 exceed the expenditure limit for the current fiscal year plus an amount equal to that12 limit times a positive growth factor. The growth factor is the average annual13 percentage rate of change of personal income for Louisiana as defined and reported14 by the United States Department of Commerce for the three calendar years prior to15 the fiscal year for which the limit is calculated.16 * * *17 §10.1. Quality Trust Fund; Education18 Section 10.1. * * *19 (C) Reports; Allocation. (1) The State Board of Elementary and Secondary20 Education and the Board of Regents shall annually submit to the legislature and the21 governor not less than sixty days prior to the beginning of each regular session of the22 legislature a proposed program and budget for the expenditure of the monies in the23 Support Fund for each of the next two fiscal years. Proposals for such24 expenditures shall be designed to improve the quality of education and shall25 specifically designate those monies to be used for administrative costs, as defined26 and authorized by law.27 * * *28 §10.4. Higher Education Louisiana Partnership Fund; Program29 SB NO. 148 SLS 11RS-449 ORIGINAL Page 5 of 14 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Section 10.4.(A) Higher Education Louisiana Partnership Fund. (1) There is1 hereby established a special fund in the state treasury to be known as the Higher2 Education Louisiana Partnership Fund, hereinafter referred to as the "fund",3 consisting of monies appropriated annually by the legislature, grants, gifts, and4 donations received by the state for the purposes of this Section, and other revenues5 as may be provided by law; provided that no such monies shall come from the6 allocations provided in Article VII, Section 4, Paragraphs (D) and (E) of this7 constitution.8 * * *9 §10.5. Mineral Revenue Audit and Settlement Fund10 * * *11 Section 10.5. * * *12 (C) After making the allocations provided for in Paragraph (A), the treasurer13 shall credit thirty-five million dollars to the Coastal Protection and Restoration Fund,14 and thereafter any monies credited to the fund in any fiscal year may be annually15 appropriated by the legislature only for the purposes of retirement in advance of16 maturity through redemption, purchase, or repayment of debt of the state, pursuant17 to a plan proposed by the State Bond Commission to maximize the savings to the18 state; for payments against the unfunded accrued liability of the public retirement19 systems which are in addition to any payments required for the annual amortization20 of the unfunded accrued liability of the public retirement systems, required by21 Article X, Section 29 of this constitution; however, any such payment to the public22 retirement systems shall not be used, directly or indirectly, to fund cost-of-living23 increases for such systems; and for deposit in the Coastal Protection and Restoration24 Fund.25 * * *26 §10.8. Millennium Trust27 Section 10.8. Millennium Trust.28 (A) Creation. * * *29 SB NO. 148 SLS 11RS-449 ORIGINAL Page 6 of 14 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. (2) The Health Excellence Fund shall be established as a special fund within1 the Millennium Trust. The treasurer shall credit to the Health Excellence Fund one-2 third of the Settlement Agreement proceeds deposited each year into the Millennium3 Trust, and one-third of all investment earnings on the investment of the Millennium4 Trust. The treasurer shall report annually at the time and in the form fixed by law5 to the legislature as to the amount of Millennium Trust investment earnings credited6 to the Health Excellence Fund.7 (3) The Education Excellence Fund shall be established as a special fund8 within the Millennium Trust. The treasurer shall credit to the Education Excellence9 Fund one-third of the Settlement Agreement proceeds deposited each year into the10 Millennium Trust, and one-third of all investment earnings on the investment of the11 Millennium Trust. The treasurer shall report annually at the time and in the form12 fixed by law to the legislature and the state superintendent of education as to the13 amount of Millennium Trust investment earnings credited to the Education14 Excellence Fund.15 (4) The TOPS Fund shall be established as a special fund within the16 Millennium Trust. The treasurer shall deposit in and credit to the TOPS Fund one-17 third of the Settlement Agreement proceeds deposited into the Millennium Trust, and18 one-third of all investment earnings on the investment of the Millennium Trust. The19 treasurer shall report annually at the time and in the form fixed by law to the20 legislature as to the amount of Millennium Trust investment earnings credited to the21 TOPS Fund.22 * * *23 (C) Appropriations. (1) Appropriations from the Health Excellence Fund,24 Education Excellence Fund, and TOPS Fund shall be limited to an annual amount25 not to exceed the estimated aggregate annual earnings from interest, dividends, and26 realized capital gains on investment of the trust as recognized by the Revenue27 Estimating Conference. Amounts determined to be available for appropriation shall28 be those aggregate investment earnings which are in excess of an inflation factor as29 SB NO. 148 SLS 11RS-449 ORIGINAL Page 7 of 14 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. determined by the Revenue Estimating Conference. The amount of realized capital1 gains on investment which may be included in the aggregate earnings available for2 appropriation in any year shall not exceed the aggregate of earnings from interest and3 dividends for that year.4 * * *5 (3) Appropriations from the Education Excellence Fund shall be limited as6 follows:7 * * *8 (b) Appropriations shall be made each year to the Louisiana School for the9 Deaf, the Louisiana School for the Visually Impaired, the Louisiana Special10 Education Center in Alexandria, the Louisiana School for Math, Science and the11 Arts, the New Orleans Center for Creative Arts and the Louis Armstrong High12 School for the Arts, after such schools are operational, to provide for a payment to13 each school of seventy-five thousand dollars plus an allocation for each pupil equal14 to the average statewide per pupil amount provided each city, parish, and local15 school system pursuant to Subsubparagraphs (d) and (e) of this Subparagraph.16 * * *17 §10.10. Millennium Leverage Fund18 Section 10.10.* * *19 D. Appropriations. (1) The legislature may annually appropriate the bond20 proceeds credited to the Leverage Fund and all earnings, income, and realized capital21 gains on investment of monies in the Leverage Fund as recognized as available for22 appropriation in the official forecast of the Revenue Estimating Conference. The23 Revenue Estimating Conference shall include in its forecast of monies available for24 appropriation only that amount of earnings, income, and realized capital gains which25 are in excess of inflation as determined by the conference.26 * * *27 §11. Budgets28 Section 11.(A) Budget Estimate. The governor shall submit to the legislature,29 SB NO. 148 SLS 11RS-449 ORIGINAL Page 8 of 14 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. at the time and in the form fixed by law, a budget estimate for the next two fiscal1 year years setting forth all proposed state expenditures. This budget shall include a2 recommendation for appropriations for each fiscal year from the state general fund3 and from dedicated funds, except funds allocated by Article VII, Section 4,4 Paragraphs (D) and (E), which shall not exceed the official forecast of the Revenue5 Estimating Conference and the expenditure limit for the fiscal year. The6 recommendation shall also comply with the provisions of Article VII, Section 10(D).7 This budget shall include a recommendation for funding of state salary supplements8 for full-time law enforcement and fire protection officers of the state, as provided in9 Article VII, Section 10(D)(3) of this constitution.10 * * *11 (C) Capital Budget. The governor shall submit to the legislature, at each12 regular session the time and in the form fixed by law, a proposed five-year capital13 outlay program and request implementation of the first year two years of the14 program. Prior to inclusion in the comprehensive capital budget which the legislature15 adopts, each capital improvement project shall be evaluated through a feasibility16 study, as defined by the legislature, which shall include an analysis of need and17 estimates of construction and operating costs. The legislature shall provide by law18 for procedures, standards, and criteria for the evaluation of such feasibility studies19 and shall set the schedule of submission of such feasibility studies which shall take20 effect not later than December thirty-first following the first regular session21 convening after this Paragraph takes effect. These procedures, standards, and criteria22 for evaluation of such feasibility studies cannot be changed or altered except by a23 separate legislative instrument approved by a favorable vote of two-thirds of the24 elected members of each house of the legislature. For those projects not eligible for25 funding under the provisions of Article VII, Section 27 of this constitution, the26 request for implementation of the first year of the program shall include a list of the27 proposed projects in priority order based on the evaluation of the feasibility studies28 submitted. Capital outlay projects approved by the legislature shall be made a part29 SB NO. 148 SLS 11RS-449 ORIGINAL Page 9 of 14 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. of the comprehensive state capital budget, which shall be adopted by the legislature.1 * * *2 §27. Transportation Trust Fund3 Section 27. (A)* * *4 (B) The monies in the trust fund shall be appropriated or dedicated solely and5 exclusively for the costs for and associated with construction and maintenance of the6 roads and bridges of the state and federal highway systems, the Statewide7 Flood-Control Program or its successor, ports, airports, transit, state police for traffic8 control purposes, and the Parish Transportation Fund or its successor and for the9 payment of all principal, interest, premium, if any, and other obligations incident to10 the issuance, security, and payment in respect of bonds or other obligations payable11 from the trust fund as authorized in Paragraph (D) hereof. Unless pledged to the12 repayment of bonds authorized in Paragraphs (C) or (D) of this Section, the monies13 in the trust fund allocated to ports, airports, flood control, parish transportation, and14 state highway construction shall be appropriated annually for each fiscal year by the15 legislature only pursuant to programs established by law which establish a system16 of priorities for the expenditure of such monies, except that the Transportation17 Infrastructure Model for Economic Development, which shall include only those18 projects enumerated in House Bill 17 of the 1989 First Extraordinary Session of the19 Legislature and US Highway 61 from Thompson Creek to the Mississippi Line, in20 lieu of "US 61-Bains to Mississippi Line", and US Highway 165 from I-10 to21 Alexandria to Monroe to Bastrop and thence on US Highway 425 from Bastrop to22 the Arkansas Line, in lieu of "US 165-I-10 Alexandria-Monroe-Bastrop-Arkansas23 Line" and LA 15-Natchez, Mississippi to Chase in lieu of "LA 15-Natchez,24 Mississippi to Monroe", shall be funded as provided by law. The state generated tax25 monies appropriated for ports, Parish Transportation Fund, or its successor, and the26 Statewide Flood-Control Program, or its successor, and state police for traffic control27 purposes shall not exceed twenty percent annually of the state generated tax revenues28 in the trust fund; provided, however, that no less than the avails of one cent of the tax29 SB NO. 148 SLS 11RS-449 ORIGINAL Page 10 of 14 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. on gasoline and special fuels shall be appropriated for each year to the Parish1 Transportation Fund, or its successor. The annual appropriation for each fiscal year2 for airports shall be a sum equal to, but not greater than, the annual estimated3 revenue to be derived from the state taxes to be collected and received on aviation4 fuel for that fiscal year. Unencumbered and unexpended balances at the end of each5 fiscal year shall remain in the trust fund. The earnings realized in each fiscal year on6 the investment of monies in the trust fund shall be deposited in and credited to the7 trust fund.8 * * *9 ARTICLE VIII. EDUCATION10 * * *11 §13. Funding; Apportionment12 Section 13. (A)* * *13 (B) Minimum Foundation Program. The State Board of Elementary and14 Secondary Education, or its successor, shall annually every two years develop and15 adopt a formula which that shall be used to determine the cost of a minimum16 foundation program of education in all public elementary and secondary schools as17 well as to equitably allocate the funds to parish and city school systems. Such18 formula shall provide for a contribution by every city and parish school system. Prior19 to approval of the formula by the legislature, the legislature may return the formula20 adopted by the board to the board and may recommend to the board an amended21 formula for consideration by the board and submission to the legislature for22 approval. The legislature shall annually appropriate funds for each fiscal year23 sufficient to fully fund the current cost to the state of such a program as determined24 by applying the approved formula in order to insure a minimum foundation of25 education in all public elementary and secondary schools. Neither the governor nor26 the legislature may reduce such appropriation, except that the governor may reduce27 such appropriation using means provided in the act containing the appropriation28 provided that any such reduction is consented to in writing by two-thirds of the29 SB NO. 148 SLS 11RS-449 ORIGINAL Page 11 of 14 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. elected members of each house of the legislature. The funds appropriated shall be1 equitably allocated to parish and city school systems according to the formula as2 adopted by the State Board of Elementary and Secondary Education, or its successor,3 and approved by the legislature prior to making the appropriation. Whenever the4 legislature fails to approve the formula most recently adopted by the board, or its5 successor, the last formula adopted by the board, or its successor, and approved by6 the legislature shall be used for the determination of the cost of the minimum7 foundation program and for the allocation of funds appropriated.8 * * *9 ARTICLE X. PUBLIC OFFICIALS AND EMPLOYEES10 * * *11 §13. Appropriations12 Section 13.(A) State. The legislature shall make adequate annual13 appropriations to the State Civil Service Commission and to the Department of State14 Civil Service to enable them to implement this Part efficiently and effectively. The15 amount so appropriated shall not be subject to veto by the governor.16 * * *17 ARTICLE XII. GENERAL PROVISIONS18 * * *19 §6. Lotteries; Gaming, Gambling, or Wagering20 Section 6.(A) Lotteries. (1) The legislature may provide for the creation and21 operation of a state lottery and may create a special corporation for that purpose22 whose employees shall not be subject to state civil service. The net proceeds from23 the operation of the lottery shall be deposited in a special fund created in the state24 treasury entitled the Lottery Proceeds Fund. Amounts deposited in the fund shall not25 be appropriated for expenditure in the same calendar year in which they are received.26 The legislature shall annually appropriate from the fund only for the purposes of the27 minimum foundation program and no more than five hundred thousand dollars for28 services related to compulsive and problem gaming as may be provided by law.29 SB NO. 148 SLS 11RS-449 ORIGINAL Page 12 of 14 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. * * *1 ARTICLE XIV. TRANSITIONAL PROVISIONS2 §10. Offshore Mineral Revenues; Use of Funds3 Section 10. Funds derived from offshore mineral leases and held in escrow4 under agreement between the state and the United States pending settlement of the5 dispute between the parties shall be deposited in the state treasury when received.6 Upon such settlement, these funds and the interest from their investment, except the7 portion otherwise allocated or dedicated by this constitution, shall be used by the8 state treasurer to purchase, retire, or pay in advance of maturity the existing bonded9 indebtedness of the state or shall be invested for that purpose. If any of these funds10 cannot be so expended within one year, the legislature may appropriate annually, for11 capital improvements or for the purchase of land, ten percent of the remaining funds,12 not to exceed ten million dollars in one year.13 Section 2. Be it further resolved that this amendment, after its approval, shall14 become effective January 1, 2014.15 Section 3. Be it further resolved that this proposed amendment shall be submitted16 to the electors of the state of Louisiana at the statewide election to be held on October 22,17 2011.18 Section 4. Be it further resolved that on the official ballot to be used at said election19 there shall be printed a proposition, upon which the electors of the state shall be permitted20 to vote FOR or AGAINST, to amend the Constitution of Louisiana, which proposition shall21 read as follows:22 To provide that the legislature shall meet in regular session biennially in23 even-numbered years only, to remove certain references to annual regular24 sessions and to regular sessions in odd-numbered years, and to provide that25 the state shall operate on a biennial budget cycle. (Amends Constitution26 Article III, Sections 2(A)(1), 16(A) and (E), Article IV, Sections 5(G)(2) and27 9, Article VII, Sections 10(B) and (C)(1), 10.1(C)(1), 10.4(A), 10.5(C),28 10.8(A)(2), (3), and (4), (C)(1) and (3)(b), 10.10(D)(1), 11(A) and (C), and29 SB NO. 148 SLS 11RS-449 ORIGINAL Page 13 of 14 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. (27)(B), Article VIII, Section 13(B), Article X, Section 13(A), Article XII,1 Section 6(A)(1), and Article XIV, Section 10; repeals Article III, Section2 2(A)(3) and (4))3 4 The original instrument and the following digest, which constitutes no part of the legislative instrument, were prepared by Alden A. Clement, Jr. DIGEST Present constitutions provides that the legislature is to meet annually in regular session for a limited number of legislative days in the state capital, a legislative day being a calendar day on which either house is in session. Present constitution provides that all regular sessions convening in even-numbered years are to be general in nature and convene at noon on the last Monday in March, with such session lasting for not more than 60 legislative days during a period of 85 calendar days. Present constitution provides that all regular sessions convening in odd-numbered years are to convene at noon on the last Monday in April, with such session lasting for not more than 45 legislative days in a period of 60 calendar days. Present constitution further provides that during any session convening in an odd-numbered year, no matter intended to have the effect of law, including any suspension of law, can be introduced or considered unless its object is to enact the General Appropriation Bill, enact the comprehensive capital budget, make an appropriation, levy or authorize a new tax, increase an existing tax, levy, authorize, increase, decrease, or repeal a fee, dedicate revenue, legislate with regard to tax exemptions, exclusions, deductions, reductions, repeals, or credits, or legislate with regard to the issuance of bonds. Proposed constitutional amendment repeals these provisions of present constitution, and further provides that the legislature is to meet biennially in regular session in even-numbered years for not more than 100 legislative days during a period of not more than125 calendar days. Proposed constitutional amendment further provides that the legislature is to convene at noon on the last Monday in March, and no new matter intended to have the effect of law can be introduced or received by either house after 6:00 p.m. of the 23 rd calendar day, and no matter intended to have the effect of law, except a measure proposing a suspension of law, can be considered on 3 rd reading and final passage in either house after 6:00 p.m. on the 57 th legislative day or the 82 nd calendar day, whichever occurs first, except by a favorable record vote of two-thirds of the elected members of each house. Present constitution provides relative to the state operating on an annual budget cycle. Proposed constitutional amendment provides for the state to adopt a biennial budget cycle in conjunction with the biennial sessions provided for by proposed constitutional amendment. Effective January 1, 2014, if approved by voters. Specifies submission of the amendment to the voters at the statewide election to be held on October 22, 2011. SB NO. 148 SLS 11RS-449 ORIGINAL Page 14 of 14 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. (Amends Const. Art. III, Sec. 2(A)(1), 16(A) and (E), Art. IV, Sec. 5(G)(2) and 9, Art. VII, Sec. 10(B) and (C)(1), 10.1(C)(1), 10.4(A), 10.5(C), 10.8(A)(2), (3), and (4), (C)(1) and (3)(b), 10.10(D)(1), 11(A) and (C), and (27)(B), Art. VIII, Sec. 13(B), Art. X, Sec. 13(A), Art. XII, Sec. 6(A)(1), and Art. XIV, Sec. 10; repeals Art. III, Sec. 2(A)(3) and (4))