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Regular Session, 2011 ENROLLED
SENATE BILL NO. 52
BY SENATORS ALARIO, AMEDEE AND THOMPSON AND REPRESENTATI VE
JANE SMITH
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
dedication of certain tobacco proceeds; to provide relative to the Millennium Trust,3
the Health Excellence Fund, the Education Excellence Fund, and the TOPS Fund;4
to provide for the deposit of certain tobacco proceeds into the Health Excellence5
Fund; to provide for the use of monies in the Health Excellence Fund; to provide for6
the allocation of interest to the Health Excellence Fund, the Education Excellence7
Fund, and the TOPS Fund; to provide for the dedication of certain proceeds from the8
Settlement Agreement to the TOPS Fund; to provide for the deposit, transfer, or9
credit of certain Settlement Agreement proceeds received by the state to the TOPS10
Fund; to provide for the uses of monies in the fund; and to provide for related11
matters.12
Be it enacted by the Legislature of Louisiana:13
Section 1. R.S. 39:98.1(A)(3), (B), (C), and (D) and 98.3(A) are hereby amended14
and reenacted to read as follows:15
SUBPART E. TOBACCO SETTLEMENT PROCEEDS16
§98.1. Creation of Funds17
A. There shall be established in the state treasury as a special permanent trust18
fund the Millennium Trust. After allocation of money to the Bond Security and19
Redemption Fund as provided in Article VII, Section 9(B) of the Constitution of20
Louisiana, the treasurer shall deposit in and credit to the Millennium Trust certain21
monies received as a result of the Master Settlement Agreement, hereinafter the22
"Settlement Agreement", executed November 23, 1998, and approved by Consent23
Decree and Final Judgment entered in the case "Richard P. Ieyoub, Attorney24
General, ex rel. State of Louisiana v. Philip Morris, Incorporated, et al.", bearing25
ACT No. 386 SB NO. 52 ENROLLED
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Number 98-6473 on the docket of the Fourteenth Judicial District for the parish of1
Calcasieu, state of Louisiana; and all dividend and interest income and all realized2
capital gains on investment of monies in the Millennium Trust. The treasurer shall3
deposit in and credit to the Millennium Trust the following amounts of monies4
received as a result of the Settlement Agreement:5
* * *6
(3) Fiscal Year 2002-2003 and each fiscal year thereafter, seventy-five7
percent of the total monies received that year. However, beginning in Fiscal Year8
2011-2012 after the balance in the Millennium Trust reaches a total of one9
billion three hundred eighty million dollars, the monies deposited in and10
credited to the Millennium Trust, received by the state as a result of the11
Settlement Agreement, shall be allocated to the various funds within the12
Millennium Trust as provided in Subsections B, C, and D of this Section.13
* * *14
B.(1) The Health Excellence Fund shall be established as a special fund15
within the Millennium Trust. The treasurer shall credit to the Health Excellence Fund16
one-third of the Settlement Agreement proceeds deposited each year into the17
Millennium Trust and one-third of all dividend and interest income and all realized18
capital gains on investment of monies in the Millennium Trust.19
(2) Beginning Fiscal Year 2011-2012, and each fiscal year thereafter, the20
treasurer shall credit to the Health Excellence Fund one-third of all dividend21
and interest income and all realized capital gains on investment of monies in the22
Millennium Trust.23
(3) Beginning July 1, 2012, after allocation of money to the Bond24
Security and Redemption Fund as provided in Article VII, Section 9(B) of the25
Constitution of Louisiana, the treasurer shall deposit in and credit to the Health26
Excellence Fund the revenues derived from the tax imposed by R.S.27
47:841(B)(3).28
C.(1) The Education Excellence Fund shall be established in the state treasury29
as a special fund within the Millennium Trust. The treasurer shall credit to the30 SB NO. 52 ENROLLED
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Education Excellence Fund one-third of the Settlement Agreement proceeds1
deposited into the Millennium Trust and one-third of all dividend and interest2
income and all realized capital gains on investment of monies in the Millennium3
Trust.4
(2) Beginning Fiscal Year 2011-2012, and each fiscal year thereafter, the5
treasurer shall credit to the Education Excellence Fund one-third of all dividend6
and interest income and all realized capital gains on investment of monies in the7
Millennium Trust.8
D.(1) The TOPS Fund shall be established in the state treasury as a special9
fund within the Millennium Trust. The treasurer shall credit to the TOPS Fund one-10
third of the Settlement Agreement proceeds deposited into the Millennium Trust and11
one-third of all dividend and interest income and all realized capital gains on12
investment of monies in the Millennium Trust.13
(2) Beginning Fiscal Year 2011-2012, and each fiscal year thereafter, the14
treasurer shall credit to the TOPS Fund one hundred percent of the Settlement15
Agreement proceeds deposited into the Millennium Trust and one-third of all16
dividend and interest income and all realized capital gains on investment of17
monies in the Millennium Trust.18
(3) Upon the effective date of this Section, the state treasurer shall19
deposit, transfer, or otherwise credit funds in an amount equal to such20
Settlement Agreement proceeds deposited in and credited to the Millennium21
Trust received by the state between April 1, 2011, and the effective date of this22
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, 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
capital gains on investment of the Millennium Trust allocated as provided by R.S.30 SB NO. 52 ENROLLED
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39:98.1(B) and (C) as recognized by the Revenue Estimating Conference. Amounts1
determined to be available for appropriation shall be those aggregate investment2
earnings which are in excess of an inflation factor as determined by the Revenue3
Estimating Conference. The amount of estimated aggregate investment earnings4
available for appropriation shall be determined by subtracting the product of the5
inflation factor multiplied by the amount of aggregate investment earnings for the6
previous fiscal year from the amount of such estimated aggregate investment7
earnings. The amount of realized capital gains on investment which may be included8
in the aggregate earnings available for appropriation from the Millennium Trust in9
any fiscal year shall not exceed the aggregate of earnings from interest and dividends10
for that year.11
(2)(a) For Fiscal Year 2011-2012 appropriations from the Health12
Excellence Fund shall be limited to an annual amount not to exceed the13
estimated aggregate annual earnings from interest, dividends, and realized14
capital gains on investment of the trust and credited to the Health Excellence15
Fund as provided by R.S. 39:98.1(B)(2) and as recognized by the Revenue16
Estimating Conference.17
(b) For Fiscal Year 2012-2013, and each fiscal year thereafter,18
appropriations from the Health Excellence Fund shall be limited to an annual19
amount not to exceed the estimated aggregate annual earnings from interest,20
dividends, and realized capital gains on investment of the trust and credited to21
the Health Excellence Fund as provided by R.S. 39:98.1(B)(2) and as recognized22
by the Revenue Estimating Conference and the amount of proceeds credited to23
and deposited into the Health Excellence Fund as provided by R.S.24
39:98.1(B)(3).25
(3)(a) For Fiscal Year 2011-2012, appropriations from the TOPS Fund26
shall be limited to the amount of Settlement Agreement proceeds credited to27
and deposited into the TOPS Fund as provided by R.S. 39:98.1(D)(2) and (3),28
and an annual amount not to exceed the estimated aggregate annual earnings29
from interest, dividends, and realized capital gains on investment of the trust30 SB NO. 52 ENROLLED
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and credited to the TOPS Fund as provided by R.S. 39:98.1(D)(2) and as1
recognized by the Revenue Estimating Conference.2
(b) For Fiscal Year 2012-2013, and each fiscal year thereafter,3
appropriations from the TOPS Fund shall be limited to the amount of annual4
Settlement Agreement proceeds credited to and deposited into the TOPS Fund5
as provided in R.S. 39:98.1(D)(2), and an annual amount not to exceed the6
estimated aggregate annual earnings from interest, dividends, and realized7
capital gains on investment of the trust and credited to the TOPS Fund as8
provided in R.S. 39:98.1(D)(2) and as recognized by the Revenue Estimating9
Conference.10
(c) For Fiscal Year 2011-2012, and each fiscal year thereafter, amounts11
determined to be available for appropriation from the TOPS Fund from interest12
earnings shall be those aggregate investment earnings which are in excess of an13
inflation factor as determined by the Revenue Estimating Conference. The14
amount of realized capital gains on investment which may be included in the15
aggregate earnings available for appropriation in any year shall not exceed the16
aggregate of earnings from interest and dividends for that year.17
(4) Actual earnings from interest, dividends, and capital gains during the18
fiscal year in excess of the amounts estimated as available for appropriation shall be19
credited to the appropriate fund and available for appropriation in subsequent years.20
Appropriations from the Health Excellence Fund, the Education Excellence Fund,21
and the TOPS Fund shall include performance expectations to ensure accountability22
in the expenditure of such monies.23
* * *24
Section 2. Section 1 of this Act shall take effect and become operative if the25
amendment of Article VII, Section 10.8 and the addition of Article VII, Section 4.1 of the26
Constitution of Louisiana contained in the Act which originated as Senate Bill No. 53 of this27
2011 Regular Session of the Legislature are adopted at the statewide election to be held on28
October 22, 2011 and at the same time as such proposed amendment and addition become29
effective.30 SB NO. 52 ENROLLED
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Section 3. Sections 2 and 3 of this Act shall become effective on July 1, 2011; if1
vetoed by the governor and subsequently approved by the legislature, this Act shall become2
effective on July 1, 2011, or on the day following such approval by the legislature,3
whichever is later.4
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: