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Regular Session, 2011
SENATE BILL NO. 53
BY SENATOR ALARIO
FUNDS/FUNDING. Constitutional amendment to provide 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. (2/3 - CA13s1(A))
A JOINT RESOLUTION1
Proposing to amend Article VII, Section 10.8(A)(1)(c), (A)(2), (3), and (4), and (C)(1) of the2
Constitution of Louisiana, all relative to the Millennium Trust, the Health Excellence3
Fund, the Education Excellence Fund, and the TOPS Fund; to provide for the4
allocation of interest to the Health Excellence Fund, the Education Excellence Fund,5
and the TOPS Fund; to provide for the dedication of certain proceeds from the6
Settlement Agreement to the TOPS Fund; to provide for the deposit, transfer, or7
credit of certain Settlement Agreement proceeds received by the state to the TOPS8
Fund; and to specify an election for submission of the proposition to electors and9
provide a ballot proposition.10
Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members11
elected to each house concurring, that there shall be submitted to the electors of the state, for12
their approval or rejection in the manner provided by law, a proposal to amend Article VII,13
Section 10.8(A)(1)(c) and to add Article VII, Section 10.8(A)(1)(c), (A)(2), (3), and (4), and14
(C)(1) of the Constitution of Louisiana, to read as follows:15
ยง10.8. Millennium Trust16
Section 10.8. Millennium Trust.17 SB NO. 53
SLS 11RS-130 ORIGINAL
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(A) Creation.1
(1) There shall be established in the state treasury as a special permanent trust2
the "Millennium Trust". After allocation of money to the Bond Security and3
Redemption Fund as provided in Article VII, Section 9(B) of this constitution, the4
treasurer shall deposit in and credit to the Millennium Trust certain monies received5
as a result of the Master Settlement Agreement, hereinafter the "Settlement6
Agreement", executed November 23, 1998, and approved by Consent Decree and7
Final Judgment entered in the case "Richard P. Ieyoub, Attorney General, ex rel.8
State of Louisiana v. Philip Morris, Incorporated, et al.", bearing Number 98-64739
on the docket of the Fourteenth Judicial District for the parish of Calcasieu, state of10
Louisiana; and all dividend and interest income and all realized capital gains on11
investment of the monies in the Millennium Trust. The treasurer shall deposit in and12
credit to the Millennium Trust the following amounts of monies received as a result13
of the Settlement Agreement:14
* * *15
(c) Fiscal Year 2002-2003 and each fiscal year thereafter, seventy-five16
percent of the total monies received that year. However, beginning in Fiscal Year17
2011-2012 after the balance in the Millennium Trust reaches a total of one18
billion three hundred eighty million dollars, the monies received as a result of19
the Settlement Agreement shall be allocated to the various funds within the20
Millennium Trust as provided in Subsubparagraphs (2)(b), (3)(b), and (4)(b)21
and (c) of this Paragraph.22
* * *23
(2)(a) The Health Excellence Fund shall be established as a special fund24
within the Millennium Trust. The treasurer shall credit to the Health Excellence Fund25
one-third of the Settlement Agreement proceeds deposited each year into the26
Millennium Trust, and one-third of all investment earnings on the investment of the27
Millennium Trust. The treasurer shall report annually to the legislature as to the28
amount of Millennium Trust investment earnings credited to the Health Excellence29 SB NO. 53
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Fund.1
(b) Beginning Fiscal Year 2011-2012, and each fiscal year thereafter, the2
treasurer shall credit to the Health Excellence Fund one-third of all investment3
earnings on the investment of the Millennium Trust. The treasurer shall report4
annually to the legislature as to the amount of Millennium Trust investment5
earnings credited to the Health Excellence Fund.6
(3)(a) The Education Excellence Fund shall be established as a special fund7
within the Millennium Trust. The treasurer shall credit to the Education Excellence8
Fund one-third of the Settlement Agreement proceeds deposited each year into the9
Millennium Trust, and one-third of all investment earnings on the investment of the10
Millennium Trust. The treasurer shall report annually to the legislature and the state11
superintendent of education as to the amount of Millennium Trust investment12
earnings credited to the Education Excellence Fund.13
(b) Beginning Fiscal Year 2011-2012, and each fiscal year thereafter, the14
treasurer shall credit to the Education Excellence Fund one-third of all15
investment earnings on the investment of the Millennium Trust. The treasurer16
shall report annually to the legislature and the state superintendent of education17
as to the amount of Millennium Trust investment earnings credited to the18
Education Excellence Fund.19
(4)(a) The TOPS Fund shall be established as a special fund within the20
Millennium Trust. The treasurer shall deposit in and credit to the TOPS Fund one-21
third of the Settlement Agreement proceeds deposited into the Millennium Trust, and22
one-third of all investment earnings on the investment of the Millennium Trust. The23
treasurer shall report annually to the legislature as to the amount of Millennium Trust24
investment earnings credited to the TOPS Fund.25
(b) Beginning Fiscal Year 2011-2012, and each fiscal year thereafter, the26
treasurer shall credit to the TOPS Fund one hundred percent of the Settlement27
Agreement proceeds deposited into the Millennium Trust, and one-third of all28
investment earnings on the investment of the Millennium Trust. The treasurer29 SB NO. 53
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shall report annually to the legislature as to the amount of Millennium Trust1
Settlement Agreement proceeds and investment earnings credited to the TOPS2
Fund.3
(c) Upon the effective date of this Subsubparagraph, the state treasurer4
shall deposit, transfer, or otherwise credit funds in an amount equal to such5
Settlement Agreement proceeds received by the state between April 1, 2011 and6
the effective date of this Subsubparagraph to the TOPS Fund.7
* * *8
(C) Appropriations. (1)(a) Appropriations from the Health Excellence Fund,9
and Education Excellence Fund, and TOPS Fund shall be limited to an annual10
amount not to exceed the estimated aggregate annual earnings from interest,11
dividends, and realized capital gains on investment of the trust allocated to each12
fund as provided by Paragraph (A) of this Section and as recognized by the13
Revenue Estimating Conference. Amounts determined to be available for14
appropriation shall be those aggregate investment earnings which are in excess of an15
inflation factor as determined by the Revenue Estimating Conference. The amount16
of realized capital gains on investment which may be included in the aggregate17
earnings available for appropriation in any year shall not exceed the aggregate of18
earnings from interest and dividends for that year.19
(b)(i) For Fiscal Year 2011-2012, appropriations from the TOPS Fund20
shall be limited to the amount of Settlement Agreement proceeds credited to21
and deposited into the TOPS Fund as provided by Subsubparagraphs (A)(4)(b)22
and (c) of this Section, and an annual amount not to exceed the estimated23
aggregate annual earnings from interest, dividends, and realized capital gains24
on investment of the trust and credited to the TOPS Fund as provided by25
Subsubparagraph (A)(4)(b) of this Section and as recognized by the Revenue26
Estimating Conference.27
(ii) For Fiscal Year 2012-2013, and each fiscal year thereafter,28
appropriations from the TOPS Fund shall be limited to the amount of annual29 SB NO. 53
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Settlement Agreement proceeds credited to and deposited into the TOPS Fund1
as provided in Subsubparagraph (A)(4)(b) of this Section, and an annual2
amount not to exceed the estimated aggregate annual earnings from interest,3
dividends, and realized capital gains on investment of the trust and credited to4
the TOPS Fund as provided in Subsubparagraph (A)(4)(b) of this Section and5
as recognized by the Revenue Estimating Conference.6
(iii) Further, for Fiscal Year 2011-2012, and each fiscal year thereafter,7
amounts determined to be available for appropriation from the TOPS Fund8
from interest earnings shall be those aggregate investment earnings which are9
in excess of an inflation factor as determined by the Revenue Estimating10
Conference. The amount of realized capital gains on investment which may be11
included in the aggregate earnings available for appropriation in any year shall12
not exceed the aggregate of earnings from interest and dividends for that year.13
* * *14
Section 2. Be it further resolved that this proposed amendment shall be submitted15
to the electors of the state of Louisiana at the statewide election to be held on October 22,16
2011.17
Section 3. Be it further resolved that on the official ballot to be used at said election18
there shall be printed a proposition, upon which the electors of the state shall be permitted19
to vote FOR or AGAINST, to amend the Constitution of Louisiana, which proposition shall20
read as follows:21
To provide relative to the portion of the monies deposited in and credited to22
the Millennium Trust each year from the Tobacco Master Settlement that23
once the balance in the Millennium Trust reaches a total of one billion three24
hundred eighty million dollars, one hundred percent of the annual Settlement25
Proceeds shall be allocated to the TOPS Fund to support state programs of26
financial assistance for students attending Louisiana postsecondary education27
institutions; to provide for the deposit, transfer, or credit of certain monies28
in the Millennium Trust to the TOPS Fund for such purpose.29 SB NO. 53
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(Amends Article VII, Section 10.8(A)(1)(c), (A)(2), (3), and (4), and (C)(1))1
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Jay R. Lueckel.
DIGEST
Present constitution 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. Provides
for the investment of monies in the Millennium Trust.
Present constitution 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 constitution 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 constitution 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 constitution 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. SB NO. 53
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words in boldface type and underscored are additions.
Proposed constitution retains present constitution 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 constitution 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 constitution 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.
Specifies submission of the amendment to the voters at the statewide election to be held on
October 22, 2011.
(Amends Const. Art. VII, Section 10.8(A)(1)(c), (A)(2), (3), and (4), and (C)(1))