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Regular Session, 2011
SENATE BILL NO. 92
BY SENATOR JACKSON
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 Health Excellence Fund initiatives. (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) and2
to add Article VII, Section 10.8(C)(2)(d) of the Constitution of Louisiana, all relative3
to the Millennium Trust, the Health Excellence Fund, the Education Excellence4
Fund, and the TOPS Fund; to provide for the allocation of interest to the Health5
Excellence Fund, the Education Excellence Fund, and the TOPS Fund; to provide for6
the dedication of certain proceeds from the Settlement Agreement to the Health7
Excellence Fund; to provide for the deposit, transfer, or credit of certain Settlement8
Agreement proceeds received by the state to the Health Excellence Fund; and to9
specify an election for submission of the proposition to electors and provide a ballot10
proposition.11
Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members12
elected to each house concurring, that there shall be submitted to the electors of the state, for13
their approval or rejection in the manner provided by law, a proposal to amend Article VII,14
Section 10.8(A)(1)(c), (A)(2), (3), and (4), and (C)(1) and to add Article VII, Section15
10.8(C)(2)(d) of the Constitution of Louisiana, to read as follows:16
ยง10.8. Millennium Trust17 SB NO. 92
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Section 10.8. Millennium Trust.1
(A) Creation.2
(1) There shall be established in the state treasury as a special permanent trust3
the "Millennium Trust". After allocation of money to the Bond Security and4
Redemption Fund as provided in Article VII, Section 9(B) of this constitution, the5
treasurer shall deposit in and credit to the Millennium Trust certain monies received6
as a result of the Master Settlement Agreement, hereinafter the "Settlement7
Agreement", executed November 23, 1998, and approved by Consent Decree and8
Final Judgment entered in the case "Richard P. Ieyoub, Attorney General, ex rel.9
State of Louisiana v. Philip Morris, Incorporated, et al.", bearing Number 98-647310
on the docket of the Fourteenth Judicial District for the parish of Calcasieu, state of11
Louisiana; and all dividend and interest income and all realized capital gains on12
investment of the monies in the Millennium Trust. The treasurer shall deposit in and13
credit to the Millennium Trust the following amounts of monies received as a result14
of the Settlement Agreement:15
* * *16
(c) Fiscal Year 2002-2003 and each fiscal year thereafter, seventy-five17
percent of the total monies received that year. However, beginning in Fiscal Year18
2011-2012 after the balance in the Millennium Trust reaches a total of one19
billion three hundred eighty million dollars, the monies received as a result of20
the Settlement Agreement shall be allocated to the various funds within the21
Millennium Trust as provided in Subparagraphs (2), (3), and (4) of this22
Paragraph.23
* * *24
(2)(a) The Health Excellence Fund shall be established as a special fund25
within the Millennium Trust. The treasurer shall credit to the Health Excellence Fund26
one-third of the Settlement Agreement proceeds deposited each year into the27
Millennium Trust, and one-third of all investment earnings on the investment of the28
Millennium Trust. The treasurer shall report annually to the legislature as to the29 SB NO. 92
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amount of Millennium Trust investment earnings credited to the Health Excellence1
Fund.2
(b) Beginning Fiscal Year 2011-2012, and each fiscal year thereafter, the3
treasurer shall credit to the Health Excellence Fund one hundred percent of the4
Settlement Agreement proceeds deposited into the Millennium Trust, and one-5
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 Millennium7
Trust Settlement Agreement proceeds and investment earnings credited to the8
Health Excellence Fund.9
(c) Upon the effective date of this Subsubparagraph, the state treasurer10
shall deposit, transfer, or otherwise credit funds in an amount equal to such11
Settlement Agreement proceeds received by the state between April 1, 2011 and12
the effective date of this Subsubparagraph to the Health Excellence Fund.13
(3)(a) The Education Excellence Fund shall be established as a special fund14
within the Millennium Trust. The treasurer shall credit to the Education Excellence15
Fund one-third of the Settlement Agreement proceeds deposited each year into the16
Millennium Trust, and one-third of all investment earnings on the investment of the17
Millennium Trust. The treasurer shall report annually to the legislature and the state18
superintendent of education as to the amount of Millennium Trust investment19
earnings credited to the Education Excellence Fund.20
(b) Beginning Fiscal Year 2011-2012, and each fiscal year thereafter, the21
treasurer shall credit to the Education Excellence Fund one-third of all22
investment earnings on the investment of the Millennium Trust. The treasurer23
shall report annually to the legislature and the state superintendent of education24
as to the amount of Millennium Trust investment earnings credited to the25
Education Excellence Fund.26
(4)(a) The TOPS Fund shall be established as a special fund within the27
Millennium Trust. The treasurer shall deposit in and credit to the TOPS Fund one-28
third of the Settlement Agreement proceeds deposited into the Millennium Trust, and29 SB NO. 92
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one-third of all investment earnings on the investment of the Millennium Trust. The1
treasurer shall report annually to the legislature as to the amount of Millennium Trust2
investment earnings credited to the TOPS Fund.3
(b) Beginning Fiscal Year 2011-2012, and each fiscal year thereafter, the4
treasurer shall credit to the TOPS Fund one-third of all investment earnings on5
the investment of the Millennium Trust. The treasurer shall report annually to6
the legislature as to the amount of Millennium Trust investment earnings7
credited to the TOPS Fund.8
* * *9
(C) Appropriations. (1)(a) Appropriations from the Health Excellence Fund,10
Education Excellence Fund, and TOPS Fund shall be limited to an annual amount11
not to exceed the estimated aggregate annual earnings from interest, dividends, and12
realized capital gains on investment of the trust allocated to each fund as provided13
by Paragraph (A) of this Section and as recognized by the Revenue Estimating14
Conference. Amounts determined to be available for appropriation shall be those15
aggregate investment earnings which are in excess of an inflation factor as16
determined by the Revenue Estimating Conference. The amount of realized capital17
gains on investment which may be included in the aggregate earnings available for18
appropriation in any year shall not exceed the aggregate of earnings from interest and19
dividends for that year.20
(b)(i) For Fiscal Year 2011-2012, appropriations from the Health21
Excellence Fund shall be limited to the amount of Settlement Agreement22
proceeds credited to and deposited into the Health Excellence Fund as provided23
by Subsubparagraphs (A)(2)(b) and (c) of this Section, and an annual amount24
not to exceed the estimated aggregate annual earnings from interest, dividends,25
and realized capital gains on investment of the trust and credited to the Health26
Excellence Fund as provided by Subsubparagraph (A)(2)(b) of this Section and27
as recognized by the Revenue Estimating Conference.28
(ii) For Fiscal Year 2012-2013, and each fiscal year thereafter,29 SB NO. 92
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appropriations from the Health Excellence Fund shall be limited to the amount1
of annual Settlement Agreement proceeds credited to and deposited into the2
Health Excellence Fund as provided in Subsubparagraph (A)(2)(b) of this3
Section, and an annual amount not to exceed the estimated aggregate annual4
earnings from interest, dividends, and realized capital gains on investment of5
the trust and credited to the Health Excellence Fund as provided in6
Subsubparagraph (A)(2)(b) of this Section and as recognized by the Revenue7
Estimating Conference.8
(iii) For Fiscal Year 2011-2012, and each fiscal year thereafter, amounts9
determined to be available for appropriation from interest earnings shall be10
those aggregate investment earnings which are in excess of an inflation factor11
as determined by the Revenue Estimating Conference. The amount of realized12
capital gains on investment which may be included in the aggregate earnings13
available for appropriation in any year shall not exceed the aggregate of14
earnings from interest and dividends for that year.15
(2) Appropriations from the Health Excellence Fund shall be restricted to the16
following purposes:17
* * *18
(d) Beginning Fiscal Year 2011-2012 and each fiscal year thereafter, the19
annual Settlement Agreement proceeds credited to and deposited into the20
Health Excellence Fund as provided by Subparagraph (A)(2) of this Section21
shall be used exclusively for initiatives to ensure the provision of health care22
services to the citizens of Louisiana, including services provided by the23
hospitals operated by the Board of Supervisors of Louisiana State University24
and Agricultural and Mechanical College. Further, such proceeds shall be25
appropriated for programs and services that allow, to the greatest extent26
possible, for federal financial participation under Title XIX of the U.S. Social27
Security Act.28
* * *29 SB NO. 92
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Section 2. Be it further resolved that this proposed amendment shall be submitted1
to the electors of the state of Louisiana at the statewide election to be held on October 22,2
2011.3
Section 3. Be it further resolved that on the official ballot to be used at said election4
there shall be printed a proposition, upon which the electors of the state shall be permitted5
to vote FOR or AGAINST, to amend the Constitution of Louisiana, which proposition shall6
read as follows:7
To provide relative to the portion of the monies deposited in and credited to8
the Millennium Trust each year from the Tobacco Master Settlement such9
that once the balance in the Millennium Trust reaches a total of one billion10
three hundred eighty million dollars, one hundred percent of the annual11
Tobacco Settlement Proceeds shall be allocated to the Health Excellence12
Fund to provide exclusively for health care services to the citizens of13
Louisiana through federal financial participation under Title XIX of the U.S.14
Social Security Act; to provide for the deposit, transfer, or credit of certain15
monies in the Millennium Trust to the Health Excellence Fund for such16
purpose.17
(Amends Article VII, Section 10.8(A)(1)(c), (A)(2), (3), and (4), and (C)(1)18
and to add Article VII, Section 10.8(C)(2)(d))19
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.
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 SB NO. 92
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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 - 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.
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 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 Health Excellence 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.
Proposed constitution retains present constitution 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 constitution 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 constitution 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 constitution 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. SB NO. 92
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2. Initiatives to benefits citizens relative to health care through the pursuit of innovation
in advanced health care sciences.
Proposed constitution retains present constitution 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, 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.
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) and adds
Const. Art. VII, Section 10.8(C)(2)(d))