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Regular Session, 2011
SENATE BILL NO. 151
BY SENATOR JACKSON
FUNDS/FUNDING. Provides that once the balance in the Millennium Trust reaches $1.38
billion, 100% of the annual Tobacco Settlement Proceeds shall be dedicated to Health
Excellence Fund initiatives. (See Act)
AN ACT1
To amend and reenact R.S. 39:98.1(A)(3), (B), (C), and (D) and 98.3(A) and to enact R.S.2
39:98.3(B)(4), all relative to the Millennium Trust, the Health Excellence Fund, the3
Education Excellence Fund, and the TOPS Fund; to provide for the allocation of4
interest to the Health Excellence Fund, the Education Excellence Fund, and the5
TOPS Fund; to provide for the dedication of certain proceeds from the Tobacco6
Settlement Agreement to the Health Excellence Fund; to provide for the deposit,7
transfer, or credit of certain Settlement Agreement proceeds received by the state to8
the Health Excellence Fund; to provide for the uses of monies in the Health9
Excellence Fund; and to provide for related matters.10
Be it enacted by the Legislature of Louisiana:11
Section 1. R.S. 39:98.1(A)(3), (B), (C), and (D) and 98.3(A) are hereby amended12
and reenacted and R.S. 39:98.3(B)(4) is hereby enacted to read as follows: 13
SUBPART E. TOBACCO SETTLEMENT PROCEEDS14
§98.1. Creation of Funds15
A. There shall be established in the state treasury as a special permanent trust16
fund the Millennium Trust. After allocation of money to the Bond Security and17 SB NO. 151
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Redemption Fund as provided in Article VII, Section 9(B) of the Constitution of1
Louisiana, the treasurer shall deposit in and credit to the Millennium Trust certain2
monies received as a result of the Master Settlement Agreement, hereinafter the3
"Settlement Agreement", executed November 23, 1998, and approved by Consent4
Decree and Final Judgment entered in the case "Richard P. Ieyoub, Attorney5
General, ex rel. State of Louisiana v. Philip Morris, Incorporated, et al.", bearing6
Number 98-6473 on the docket of the Fourteenth Judicial District for the parish of7
Calcasieu, state of Louisiana; and all dividend and interest income and all realized8
capital gains on investment of monies in the Millennium Trust. The treasurer shall9
deposit in and credit to the Millennium Trust the following amounts of monies10
received as a result of the Settlement Agreement:11
* * *12
(3) Fiscal Year 2002-2003 and each fiscal year thereafter, seventy-five13
percent of the total monies received that year. However, beginning in Fiscal Year14
2011-2012 after the balance in the Millennium Trust reaches a total of one15
billion three hundred eighty million dollars, the monies received by the state as16
a result of the Settlement Agreement shall be allocated to the various funds17
within the Millennium Trust as provided in Subsections (B), (C), and (D) of this18
Section.19
* * *20
B.(1) The Health Excellence Fund shall be established as a special fund21
within the Millennium Trust. The treasurer shall credit to the Health Excellence Fund22
one-third of the Settlement Agreement proceeds deposited each year into the23
Millennium Trust and one-third of all dividend and interest income and all realized24
capital gains on investment of monies in the Millennium Trust.25
(2) Beginning Fiscal Year 2011-2012, and each fiscal year thereafter, the26
treasurer shall credit to the Health Excellence Fund one hundred percent of the27
Settlement Agreement proceeds deposited into the Millennium Trust and one-28
third of all dividend and interest income and all realized capital gains on29 SB NO. 151
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investment of monies in the Millennium Trust.1
(3) Upon the effective date of this Section, the state treasurer shall2
deposit, transfer, or otherwise credit funds in an amount equal to such3
Settlement Agreement proceeds received by the state between April 1, 2011 and4
the effective date of this Section, to the Health Excellence Fund.5
C.(1) The Education Excellence Fund shall be established in the state treasury6
as a special fund within the Millennium Trust. The treasurer shall credit to the7
Education Excellence Fund one-third of the Settlement Agreement proceeds8
deposited into the Millennium Trust and one-third of all dividend and interest9
income and all realized capital gains on investment of monies in the Millennium10
Trust.11
(2) Beginning Fiscal Year 2011-2012, and each fiscal year thereafter, the12
treasurer shall credit to the Education Excellence Fund one-third of all dividend13
and interest income and all realized capital gains on investment of monies in the14
Millennium Trust.15
D.(1) The TOPS Fund shall be established in the state treasury as a special16
fund within the Millennium Trust. The treasurer shall credit to the TOPS Fund one-17
third of the Settlement Agreement proceeds deposited into the Millennium Trust and18
one-third of all dividend and interest income and all realized capital gains on19
investment of monies in the Millennium Trust.20
(2) Beginning Fiscal Year 2011-2012, and each fiscal year thereafter, the21
treasurer shall credit to the TOPS Fund one-third of all dividend and interest22
income and all realized capital gains on investment of monies in the Millennium23
Trust.24
* * *25
§98.3. Appropriations from the Health Excellence Fund, the Education Excellence26
Fund, and the TOPS Fund27
A.(1) Appropriations from the Health Excellence Fund, the Education28
Excellence Fund, and the TOPS Fund shall be limited to an annual amount not to29 SB NO. 151
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exceed the estimated aggregate annual earnings from interest, dividends, and realized1
capital gains on investment of the Millennium Trust allocated to each fund as2
provided by R.S. 39:98.1(C) and (D) as recognized by the Revenue Estimating3
Conference. Amounts determined to be available for appropriation shall be those4
aggregate investment earnings which are in excess of an inflation factor as5
determined by the Revenue Estimating Conference. The amount of estimated6
aggregate investment earnings available for appropriation shall be determined by7
subtracting the product of the inflation factor multiplied by the amount of aggregate8
investment earnings for the previous fiscal year from the amount of such estimated9
aggregate investment earnings. The amount of realized capital gains on investment10
which may be included in the aggregate earnings available for appropriation from the11
Millennium Trust in any fiscal year shall not exceed the aggregate of earnings from12
interest and dividends for that year.13
(2)(a) For Fiscal Year 2011-2012, appropriations from the Health14
Excellence Fund shall be limited to the amount of Settlement Agreement15
proceeds credited to and deposited into the Health Excellence Fund as provided16
by R.S. 39:98.1(B)(2) and (3), and an annual amount not to exceed the estimated17
aggregate annual earnings from interest, dividends, and realized capital gains18
on investment of the trust and credited to the Health Excellence Fund as19
provided by R.S. 39:98.1(B)(2) and as recognized by the Revenue Estimating20
Conference.21
(b) For Fiscal Year 2012-2013, and each fiscal year thereafter,22
appropriations from the Health Excellence Fund shall be limited to the amount23
of annual Settlement Agreement proceeds credited to and deposited into the24
Health Excellence Fund as provided in R.S. 39:98.1(B)(2), and an annual25
amount not to exceed the estimated aggregate annual earnings from interest,26
dividends, and realized capital gains on investment of the trust and credited to27
the Health Excellence Fund as provided in R.S. 39:98.1(B)(2) and as recognized28
by the Revenue Estimating Conference.29 SB NO. 151
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(c) For Fiscal Year 2011-2012, and each fiscal year thereafter, amounts1
determined to be available for appropriation from the Health Excellence Fund2
from interest earnings shall be those aggregate investment earnings which are3
in excess of an inflation factor as determined by the Revenue Estimating4
Conference. The amount of realized capital gains on investment which may be5
included in the aggregate earnings available for appropriation in any year shall6
not exceed the aggregate of earnings from interest and dividends for that year.7
(3) Actual earnings from interest, dividends, and capital gains during the8
fiscal year in excess of the amounts estimated as available for appropriation shall be9
credited to the appropriate fund and available for appropriation in subsequent years.10
Appropriations from the Health Excellence Fund, the Education Excellence Fund,11
and the TOPS Fund shall include performance expectations to ensure accountability12
in the expenditure of such monies.13
B. Appropriations from the Health Excellence Fund shall be restricted to the14
following purposes:15
* * *16
(4) Beginning Fiscal Year 2011-2012 and each fiscal year thereafter, the17
annual Settlement Agreement proceeds credited to and deposited into the18
Health Excellence Fund as provided in R.S. 39:98.1(B) shall be used exclusively19
for initiatives to ensure the provision of health care services to the citizens of the20
state of Louisiana, including services provided by the hospitals operated by the21
Board of Supervisors of Louisiana State University and Agricultural and22
Mechanical College. Further, such proceeds shall be appropriated for23
programs and services that allow, to the greatest extent possible, for federal24
financial participation under Title XIX of the U.S. Social Security Act.25
* * *26
Section 2. Section 1 of this Act shall take effect and become operative if the27
amendment of Article VII, Section 10.8 of the Constitution of Louisiana contained in the Act28
which originated as Senate Bill No. of this 2011 Regular Session of the Legislature is29 SB NO. 151
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adopted at the statewide election to be held on October 22, 2011 and at the same time as1
such proposed amendment becomes effective.2
Section 3. Sections 2 and 3 of this Act shall become effective on July 1, 2011; if3
vetoed by the governor and subsequently approved by the legislature, this Act shall become4
effective on July 1, 2011, or on the day following such approval by the legislature,5
whichever is later.6
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Jay R. Lueckel.
DIGEST
Present law creates the Millennium Trust as a special permanent trust in the state treasury
to receive certain monies as a result of the Tobacco Master Settlement Agreement executed
November 23, 1998, and approved by Consent Decree and Final Judgment entered in the
case "Richard P. Ieyoub, Attorney General, ex rel. State of Louisiana v. Philip Morris,
Incorporated, et al.", bearing Number 98-6473 on the docket of the Fourteenth Judicial
District for the parish of Calcasieu, state of Louisiana; and all dividend and interest income
and all realized capital gains on investment of the monies in the Millennium Trust.
Present law provides that beginning Fiscal Year 2002-2003, and each fiscal year thereafter,
75% percent of the total monies received that year shall be allocated as follows:
1. Heath Excellence Fund which is a special fund established within the Millennium
Trust - the state treasurer shall credit to the Heath Excellence Fund one-third of the
Settlement Proceeds deposited each year into the Millennium Trust and one-third of
all investment earnings on the investment of the Trust.
2. Education Excellence Fund which is a special fund established within the
Millennium Trust - the state treasurer shall credit to the Education Excellence Fund
one-third of the Settlement Proceeds deposited each year into the Millennium Trust
and one-third of all investment earnings on the investment of the Trust.
3. TOPS Fund which is a special fund established within the Millennium Trust - the
state treasurer shall credit to the TOPS Fund one-third of the Settlement Proceeds
deposited each year into the Millennium Trust and one-third of all investment
earnings on the investment of the trust.
Proposed law provides that beginning Fiscal Year 2011-2012 after the balance in the
Millennium Trust reaches a total of $1.38 billion, the monies received from the Settlement
Agreement shall be allocated as follows:
1. Heath Excellence Fund - 100% of the Settlement Agreement proceeds and one-third
of all investment earnings on the investment of the trust.
2. Education Excellence Fund - one-third of all investment earnings on the investment
of the trust.
3. TOPS Fund - one-third of all investment earnings on the investment of the trust.
Proposed law provides that upon the effective date of the amendment, the state treasurer
shall deposit, transfer, or otherwise credit funds in an amount equal to such Settlement SB NO. 151
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Agreement proceeds to the Health Excellence Fund received by the state between April 1,
2011 and the effective date of the amendment.
Present law limits appropriations from the Health Excellence Fund, Education Excellence
Fund, and the TOPS Fund to an annual amount not to exceed the estimated aggregate annual
earnings from interest, dividends, and realized capital gains on investment of the trust,
adjusted for inflation, and as recognized by the Revenue Estimating Conference.
Proposed law retains present law limitations on appropriations from the TOPS Fund and the
Education Excellence Fund relative to interest, dividends, and realized capital gains on
investment of the trust.
Proposed law provides that for Fiscal Year 2011-2012, appropriations from the Health
Excellence Fund shall be limited to the annual Settlement Agreement proceeds plus an
amount of Settlement Agreement proceeds equal to such proceeds received by the state
between April 1, 2011 and the effective date of the Act, as well as the estimated aggregate
annual earnings from interest, dividends, and realized capital gains on investment of the
trust.
Proposed law further provides that for Fiscal Year 2012-2013, and each fiscal year
thereafter, appropriations from the Health Excellence Fund shall be limited to the amount
of annual Settlement Agreement proceeds credited to and deposited into the Health
Excellence Fund and the estimated aggregate annual earnings from interest, dividends, and
realized capital gains on investment of the trust, adjusted for inflation and as recognized by
the Revenue Estimating Conference.
Present law provides for spending investment earnings from the Health Excellence Fund for
the following purposes:
1. Initiatives to ensure the optimal development of Louisiana's children through
provision of appropriate health care, school-based health clinics, and early childhood
intervention programs, among others.
2. Initiatives to benefit citizens relative to health care through the pursuit of innovation
in advanced health care sciences.
3. Provision of comprehensive, chronic disease management services.
Proposed law retains present law and further provides that beginning Fiscal Year 2011-2012
and each fiscal year thereafter, the annual Settlement Agreement proceeds credited to and
deposited into the Health Excellence Fund shall be used exclusively for initiatives to ensure
the provision of health care services of the citizens of Louisiana, including services provided
by the hospitals operated by LSU. Further, such proceeds shall be appropriated for programs
and services that allow, to the greatest extent possible, for federal financial participation
under Title XIX of the U.S. Social Security Act.
Section 1 of the Act takes effect and becomes operative if the amendment of Article VII,
Section 10.8 of the Constitution of Louisiana contained in the Act which originated as
Senate Bill No. of the 2011 Regular Session of the Legislature is adopted at the statewide
election to be held on October 22, 2011, and at the same time as such proposed amendment
becomes effective. Sections 2 and 3 of the Act, which are the effective date provisions,
become effective on July 1, 2011.
(Amends R.S. 39:98.1(A)(3), (B), (C), and (D) and 98.3(A) and adds R.S. 39:98.3(B)(4))