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Regular Session, 2011
SENATE BILL NO. 52
BY SENATORS ALARIO AND THOMPSON
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 the TOPS
program. (See Act)
AN ACT1
To amend and reenact R.S. 39:98.1(A)(3), (B), (C), and (D) and 98.3(A), all relative to the2
Millennium Trust, the Health Excellence Fund, the Education Excellence Fund, and3
the TOPS Fund; to provide for the allocation of interest to the Health Excellence4
Fund, the Education Excellence Fund, and the TOPS Fund; to provide for the5
dedication of certain proceeds from the Settlement Agreement to the TOPS Fund; to6
provide for the deposit, transfer, or credit of certain Settlement Agreement proceeds7
received by the state to the TOPS Fund; to provide for the uses of monies in the8
fund; and to provide for related matters.9
Be it enacted by the Legislature of Louisiana:10
Section 1. R.S. 39:98.1(A)(3), (B), (C), and (D) and 98.3(A) are hereby amended11
and reenacted to read as follows:12
SUBPART E. TOBACCO SETTLEMENT PROCEEDS13
§98.1. Creation of Funds14
A. There shall be established in the state treasury as a special permanent trust15
fund the Millennium Trust. After allocation of money to the Bond Security and16
Redemption Fund as provided in Article VII, Section 9(B) of the Constitution of17 SB NO. 52
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Louisiana, the treasurer shall deposit in and credit to the Millennium Trust certain1
monies received as a result of the Master Settlement Agreement, hereinafter the2
"Settlement Agreement", executed November 23, 1998, and approved by Consent3
Decree and Final Judgment entered in the case "Richard P. Ieyoub, Attorney4
General, ex rel. State of Louisiana v. Philip Morris, Incorporated, et al.", bearing5
Number 98-6473 on the docket of the Fourteenth Judicial District for the parish of6
Calcasieu, state of Louisiana; and all dividend and interest income and all realized7
capital gains on investment of monies in the Millennium Trust. The treasurer shall8
deposit in and credit to the Millennium Trust the following amounts of monies9
received as a result of the Settlement Agreement:10
* * *11
(3) Fiscal Year 2002-2003 and each fiscal year thereafter, seventy-five12
percent of the total monies received that year. However, beginning in Fiscal Year13
2011-2012 after the balance in the Millennium Trust reaches a total of one14
billion three hundred eighty million dollars, the monies received by the state as15
a result of the Settlement Agreement shall be allocated to the various funds16
within the Millennium Trust as provided in Subsections B, C, and D of this17
Section.18
* * *19
B.(1) The Health Excellence Fund shall be established as a special fund20
within the Millennium Trust. The treasurer shall credit to the Health Excellence Fund21
one-third of the Settlement Agreement proceeds deposited each year into the22
Millennium Trust and one-third of all dividend and interest income and all realized23
capital gains on investment of monies in the Millennium Trust.24
(2) Beginning Fiscal Year 2011-2012, and each fiscal year thereafter, the25
treasurer shall credit to the Health Excellence Fund one-third of all dividend26
and interest income and all realized capital gains on investment of monies in the27
Millennium Trust.28
C.(1) The Education Excellence Fund shall be established in the state treasury29 SB NO. 52
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as a special fund within the Millennium Trust. The treasurer shall credit to the1
Education Excellence Fund one-third of the Settlement Agreement proceeds2
deposited into the Millennium Trust and one-third of all dividend and interest3
income and all realized capital gains on investment of monies in the Millennium4
Trust.5
(2) Beginning Fiscal Year 2011-2012, and each fiscal year thereafter, the6
treasurer shall credit to the Education Excellence Fund one-third of all dividend7
and interest income and all realized capital gains on investment of monies in the8
Millennium Trust.9
D.(1) The TOPS Fund shall be established in the state treasury as a special10
fund within the Millennium Trust. The treasurer shall credit to the TOPS Fund one-11
third of the Settlement Agreement proceeds deposited into the Millennium Trust and12
one-third of all dividend and interest income and all realized capital gains on13
investment of monies in the Millennium Trust.14
(2) Beginning Fiscal Year 2011-2012, and each fiscal year thereafter, the15
treasurer shall credit to the TOPS Fund one hundred percent of the Settlement16
Agreement proceeds deposited into the Millennium Trust and one-third of all17
dividend and interest income and all realized capital gains on investment of18
monies in the Millennium Trust.19
(3) Upon the effective date of this Section, the state treasurer shall20
deposit, transfer, or otherwise credit funds in an amount equal to such21
Settlement Agreement proceeds received by the state between April 1, 2011, and22
the effective date of this Section to the TOPS Fund.23
* * *24
§98.3. Appropriations from the Health Excellence Fund, the Education Excellence25
Fund, and the TOPS Fund26
A.(1) Appropriations from the Health Excellence Fund, and the Education27
Excellence Fund, and the TOPS Fund shall be limited to an annual amount not to28
exceed the estimated aggregate annual earnings from interest, dividends, and realized29 SB NO. 52
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capital gains on investment of the Millennium Trust allocated to each fund as1
provided by R.S. 39:98.1(B) and (C) as recognized by the Revenue Estimating2
Conference. Amounts determined to be available for appropriation shall be those3
aggregate investment earnings which are in excess of an inflation factor as4
determined by the Revenue Estimating Conference. The amount of estimated5
aggregate investment earnings available for appropriation shall be determined by6
subtracting the product of the inflation factor multiplied by the amount of aggregate7
investment earnings for the previous fiscal year from the amount of such estimated8
aggregate investment earnings. The amount of realized capital gains on investment9
which may be included in the aggregate earnings available for appropriation from the10
Millennium Trust in any fiscal year shall not exceed the aggregate of earnings from11
interest and dividends for that year.12
(2)(a) For Fiscal Year 2011-2012, appropriations from the TOPS Fund13
shall be limited to the amount of Settlement Agreement proceeds credited to14
and deposited into the TOPS Fund as provided by R.S. 39:98.1(D)(2) and (3),15
and an annual amount not to exceed the estimated aggregate annual earnings16
from interest, dividends, and realized capital gains on investment of the trust17
and credited to the TOPS Fund as provided by R.S. 39:98.1(D)(2) and as18
recognized by the Revenue Estimating Conference.19
(b) For Fiscal Year 2012-2013, and each fiscal year thereafter,20
appropriations from the TOPS Fund shall be limited to the amount of annual21
Settlement Agreement proceeds credited to and deposited into the TOPS Fund22
as provided in R.S. 39:98.1(D)(2), and an annual amount not to exceed the23
estimated aggregate annual earnings from interest, dividends, and realized24
capital gains on investment of the trust and credited to the TOPS Fund as25
provided in R.S. 39:98.1(D)(2) and as recognized by the Revenue Estimating26
Conference.27
(c) For Fiscal Year 2011-2012, and each fiscal year thereafter, amounts28
determined to be available for appropriation from the TOPS Fund from interest29 SB NO. 52
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earnings shall be those aggregate investment earnings which are in excess of an1
inflation factor as determined by the Revenue Estimating Conference. The2
amount of realized capital gains on investment which may be included in the3
aggregate earnings available for appropriation in any year shall not exceed the4
aggregate of earnings from interest and dividends for that year.5
(3) Actual earnings from interest, dividends, and capital gains during the6
fiscal year in excess of the amounts estimated as available for appropriation shall be7
credited to the appropriate fund and available for appropriation in subsequent years.8
Appropriations from the Health Excellence Fund, the Education Excellence Fund,9
and the TOPS Fund shall include performance expectations to ensure accountability10
in the expenditure of such monies.11
* * *12
Section 2. Section 1 of this Act shall take effect and become operative if the13
amendment of Article VII, Section 10.8 of the Constitution of Louisiana contained in the Act14
which originated as Senate Bill No. 53 of this 2011 Regular Session of the Legislature is15
adopted at the statewide election to be held on October 22, 2011 and at the same time as16
such proposed amendment becomes effective.17
Section 3. Sections 2 and 3 of this Act shall become effective on July 1, 2011; if18
vetoed by the governor and subsequently approved by the legislature, this Act shall become19
effective on July 1, 2011, or on the day following such approval by the legislature,20
whichever is later.21
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Jay R. Lueckel.
DIGEST
Alario (SB 52)
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, SB NO. 52
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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 - 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 - 100% 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 upon the effective date of the amendment, the state treasurer
shall deposit, transfer, or otherwise credit funds in an amount equal to such Settlement
Agreement proceeds to the TOPS 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 Health Excellence
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 TOPS 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 TOPS Fund shall be limited to the amount of annual
Settlement Agreement proceeds credited to and deposited into the TOPS 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. SB NO. 52
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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. 53 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))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Finance to the original
bill.
1. Technical amendments.