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Regular Session, 2011 ENROLLED
SENATE BILL NO. 53
BY SENATORS ALARIO, AMEDEE AND THOMPSON AND REPRESENTATIVES
ARNOLD, AUBERT, AUSTIN BADON, BOBBY BADON, BILLIOT,
BROSSETT, HENRY BURNS, CARMODY, CARTER, CHANEY,
DIXON, DOVE, DOWNS, ELLINGTON, FOIL, GUILLORY, GUINN,
HARDY, HENDERSON, HINES, HOFFMANN, HONORE, HOWARD,
HUTTER, SAM JONES, KATZ, LEGER, LIGI, LOPINTO, MORENO,
NOWLIN, RITCHIE, JANE SMITH, PATRICIA SMITH, ST.
GERMAIN, THIBAUT, TUCKER, WILLIAMS AND WILLMOTT
A JOINT RESOLUTION1
Proposing to amend Article VII, Section 10.8(A)(1)(c), (A)(2), (3), and (4), and (C)(1) and2
to add Article VII, Section 4.1 of the Constitution of Louisiana, all relative to the3
dedication of certain tobacco proceeds; to provide relative to the Millennium Trust,4
the Health Excellence Fund, the Education Excellence Fund, and the TOPS Fund;5
to provide for the deposit of certain tobacco proceeds into the Health Excellence6
Fund; to provide relative to the rate of tax levied on certain tobacco products which7
revenues generated therefrom are dedicated to the Health Excellence Fund; to8
provide for the use of monies in the Health Excellence Fund; to provide for the9
allocation of interest to the Health Excellence Fund, the Education Excellence Fund,10
and the TOPS Fund; to provide for the deposit, transfer, or credit of certain11
Settlement Agreement proceeds received by the state to the TOPS Fund; to provide12
for the deposit, transfer, or credit of a portion of the state tax on cigarettes to the13
Health Excellence Fund; and to specify an election for submission of the proposition14
to electors and provide a ballot proposition.15
Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members16
elected to each house concurring, that there shall be submitted to the electors of the state, for17
their approval or rejection in the manner provided by law, a proposal to amend Article VII,18
Section 10.8(A)(1)(c), (A)(2), (3), (4), and (C)(1) and to add Article VII, Section 4.1 of the19
Constitution of Louisiana, to read as follows:20
ARTICLE VII. REVENUE AND FINANCE21
PART I. GENERAL PROVISIONS22
* * *23
ACT No. 423 SB NO. 53 ENROLLED
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§4.1. Cigarette Tax Rates1
Section 4.1. To ensure revenue for the dedication provided for in Article2
VII, Section 10.8(C)(2)(c) of this constitution, the rate of the tax levied pursuant3
to R.S. 47:841(B)(3) shall not be less than the rate set forth in that provision as4
it exists on January 1, 20125
* * *6
§10.8. Millennium Trust7
Section 10.8. Millennium Trust.8
(A) Creation.9
(1) There shall be established in the state treasury as a special permanent trust10
the "Millennium Trust". After allocation of money to the Bond Security and11
Redemption Fund as provided in Article VII, Section 9(B) of this constitution, the12
treasurer shall deposit in and credit to the Millennium Trust certain monies received13
as a result of the Master Settlement Agreement, hereinafter the "Settlement14
Agreement", executed November 23, 1998, and approved by Consent Decree and15
Final Judgment entered in the case "Richard P. Ieyoub, Attorney General, ex rel.16
State of Louisiana v. Philip Morris, Incorporated, et al.", bearing Number 98-647317
on the docket of the Fourteenth Judicial District for the parish of Calcasieu, state of18
Louisiana; and all dividend and interest income and all realized capital gains on19
investment of the monies in the Millennium Trust. The treasurer shall deposit in and20
credit to the Millennium Trust the following amounts of monies received as a result21
of the Settlement Agreement:22
* * *23
(c) Fiscal Year 2002-2003 and each fiscal year thereafter, seventy-five24
percent of the total monies received that year. However, beginning in Fiscal Year25
2011-2012 after the balance in the Millennium Trust reaches a total of one26
billion three hundred eighty million dollars, the monies deposited in and27
credited to the Millennium Trust, received as a result of the Settlement28
Agreement, shall be allocated to the various funds within the Millennium Trust29
as provided in Subsubparagraphs (2)(b), (3)(b), and (4)(b) and (c) of this30 SB NO. 53 ENROLLED
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Paragraph.1
* * *2
(2)(a) The Health Excellence Fund shall be established as a special fund3
within the Millennium Trust. The treasurer shall credit to the Health Excellence Fund4
one-third of the Settlement Agreement proceeds deposited each year into the5
Millennium Trust, and one-third of all investment earnings on the investment of the6
Millennium Trust. The treasurer shall report annually to the legislature as to the7
amount of Millennium Trust investment earnings credited to the Health Excellence8
Fund.9
(b) Beginning Fiscal Year 2011-2012, and each fiscal year thereafter, the10
treasurer shall credit to the Health Excellence Fund one-third of all investment11
earnings on the investment of the Millennium Trust. The treasurer shall report12
annually to the legislature as to the amount of Millennium Trust investment13
earnings credited to the Health Excellence Fund.14
(c) Beginning on July 1, 2012, after allocation of money to the Bond15
Security and Redemption Fund as provided in Article VII, Section 9(B) of this16
constitution, the state treasurer shall deposit in and credit to the Health17
Excellence Fund an amount equal to the revenues derived from the tax levied18
pursuant to R.S. 47:841(B)(3).19
(3)(a) The Education Excellence Fund shall be established as a special fund20
within the Millennium Trust. The treasurer shall credit to the Education Excellence21
Fund one-third of the Settlement Agreement proceeds deposited each year into the22
Millennium Trust, and one-third of all investment earnings on the investment of the23
Millennium Trust. The treasurer shall report annually to the legislature and the state24
superintendent of education as to the amount of Millennium Trust investment25
earnings credited to the Education Excellence Fund.26
(b) Beginning Fiscal Year 2011-2012, and each fiscal year thereafter, the27
treasurer shall credit to the Education Excellence Fund one-third of all28
investment earnings on the investment of the Millennium Trust. The treasurer29
shall report annually to the legislature and the state superintendent of education30 SB NO. 53 ENROLLED
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as to the amount of Millennium Trust investment earnings credited to the1
Education Excellence Fund.2
(4)(a) The TOPS Fund shall be established as a special fund within the3
Millennium Trust. The treasurer shall deposit in and credit to the TOPS Fund one-4
third of the Settlement Agreement proceeds deposited into the Millennium Trust, and5
one-third of all investment earnings on the investment of the Millennium Trust. The6
treasurer shall report annually to the legislature as to the amount of Millennium Trust7
investment earnings credited to the TOPS Fund.8
(b) Beginning Fiscal Year 2011-2012, and each fiscal year thereafter, the9
treasurer shall credit to the TOPS Fund one hundred percent of the Settlement10
Agreement proceeds deposited into the Millennium Trust, and one-third of all11
investment earnings on the investment of the Millennium Trust. The treasurer12
shall report annually to the legislature as to the amount of Millennium Trust13
Settlement Agreement proceeds and investment earnings credited to the TOPS14
Fund.15
(c) Upon the effective date of this Subsubparagraph, the state treasurer16
shall deposit, transfer, or otherwise credit funds in an amount equal to such17
Settlement Agreement proceeds deposited in and credited to the Millennium18
Trust received by the state between April 1, 2011 and the effective date of this19
Subsubparagraph to the TOPS Fund.20
* * *21
(C) Appropriations. (1)(a) Appropriations from the Health Excellence Fund,22
Education Excellence Fund, and TOPS Fund shall be limited to an annual amount23
not to exceed the estimated aggregate annual earnings from interest, dividends, and24
realized capital gains on investment of the trust allocated as provided by25
Paragraph (A) of this Section and as recognized by the Revenue Estimating26
Conference. Amounts determined to be available for appropriation shall be those27
aggregate investment earnings which are in excess of an inflation factor as28
determined by the Revenue Estimating Conference. The amount of realized capital29
gains on investment which may be included in the aggregate earnings available for30 SB NO. 53 ENROLLED
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appropriation in any year shall not exceed the aggregate of earnings from interest and1
dividends for that year.2
(b)(i) For Fiscal Year 2011-2012, appropriations from the Health3
Excellence Fund shall be limited to an annual amount not to exceed the4
estimated aggregate annual earnings from interest, dividends, and realized5
capital gains on investment of the trust and credited to the Health Excellence6
Fund as provided by Subsubparagraph (A)(2)(b) of this Section and as7
recognized by the Revenue Estimating Conference.8
(ii) For Fiscal Year 2012-2013, and each fiscal year thereafter,9
appropriations from the Health Excellence 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 and credited to12
the Health Excellence Fund as provided by Subsubparagraph (A)(2)(b) of this13
Section and as recognized by the Revenue Estimating Conference and the14
amount of proceeds credited to and deposited into the Health Excellence Fund15
as provided by Subsubparagraph (A)(2)(c) of this Section.16
(c)(i) For Fiscal Year 2011-2012, appropriations from the TOPS Fund17
shall be limited to the amount of Settlement Agreement proceeds credited to18
and deposited into the TOPS Fund as provided by Subsubparagraphs (A)(4)(b)19
and (c) of this Section, and an annual amount not to exceed the estimated20
aggregate annual earnings from interest, dividends, and realized capital gains21
on investment of the trust and credited to the TOPS Fund as provided by22
Subsubparagraph (A)(4)(b) of this Section and as recognized by the Revenue23
Estimating Conference.24
(ii) For Fiscal Year 2012-2013, and each fiscal year thereafter,25
appropriations from the TOPS Fund shall be limited to the amount of annual26
Settlement Agreement proceeds credited to and deposited into the TOPS Fund27
as provided in Subsubparagraph (A)(4)(b) of this Section, and an annual28
amount not to exceed the estimated aggregate annual earnings from interest,29
dividends, and realized capital gains on investment of the trust and credited to30 SB NO. 53 ENROLLED
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the TOPS Fund as provided in Subsubparagraph (A)(4)(b) of this Section and1
as recognized by the Revenue Estimating Conference.2
(iii) Further, for Fiscal Year 2011-2012, and each fiscal year thereafter,3
amounts determined to be available for appropriation from the TOPS Fund4
from interest earnings shall be those aggregate investment earnings which are5
in excess of an inflation factor as determined by the Revenue Estimating6
Conference. The amount of realized capital gains on investment which may be7
included in the aggregate earnings available for appropriation in any year shall8
not exceed the aggregate of earnings from interest and dividends for that year.9
* * *10
Section 2. Be it further resolved that this proposed amendment shall be submitted11
to the electors of the state of Louisiana at the statewide election to be held on October 22,12
2011.13
Section 3. Be it further resolved that on the official ballot to be used at said election14
there shall be printed a proposition, upon which the electors of the state shall be permitted15
to vote FOR or AGAINST, to amend the Constitution of Louisiana, which proposition shall16
read as follows:17
To dedicate funds for the TOPS program relative to the portion of the monies18
deposited in and credited to the Millennium Trust each year from the19
Tobacco Master Settlement, to provide that once the balance in the20
Millennium Trust reaches a total of one billion three hundred eighty million21
dollars, one hundred percent of the annual Settlement Proceeds shall be22
allocated to the TOPS Fund to support state programs of financial assistance23
for students attending Louisiana postsecondary education institutions; to24
provide relative to the rate of tax on certain tobacco products and beginning25
July 1, 2012, to dedicate such tobacco revenues to the Health Excellence26
Fund to be used for the purposes of the fund, including providing for the27
optimal development of Louisiana's children through the provision of28
appropriate health care and providing health care initiatives through29
innovation in advanced health care sciences; to provide for the deposit,30 SB NO. 53 ENROLLED
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transfer, or credit of certain monies in the Millennium Trust to the Health1
Excellence Fund, the Education Excellence Fund, and the TOPS Fund.2
(Amends Article VII, Section 10.8(A)(1)(c), (A)(2), (3), and (4), and (C)(1)3
and adds Article VII, Section 4.1)4
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES