HLS 12RS-591 ORIGINAL
Page 1 of 3
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2012
HOUSE BILL NO. 392
BY REPRESENTATIVE JIM MORRIS
FUNDS/FUNDING: (Constitutional Amendment) Provides relative to deposits into the
Budget Stabilization Fund
A JOINT RESOLUTION1
Proposing to amend Article VII, Section 10.3(A)(1) and (C)(4) of the Constitution of2
Louisiana, relative to the Budget Stabilization Fund; to provide for deposits into the3
Budget Stabilization Fund in certain circumstances; to provide for submission of the4
proposed amendment to the electors; and to provide for related matters.5
Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members6
elected to each house concurring, that there shall be submitted to the electors of the state of7
Louisiana, for their approval or rejection in the manner provided by law, a proposal to8
amend Article VII, Section 10.3(A)(1)and (C)(4) of the Constitution of Louisiana, to read9
as follows:10
§10.3. Budget Stabilization Fund11
Section 10.3.(A) There is hereby established in the state treasury a Budget12
Stabilization Fund hereinafter referred to as the fund. Money shall be deposited in13
the fund as follows:14
(1)(a) All money available for appropriation from the state general fund and15
dedicated funds in excess of the initial expenditure limit for the fiscal year as16
determined by Article VII, Section 10(C)(1) of the constitution, except funds17
allocated by Article VII, Section 4, Paragraphs (D) and (E), shall be deposited in the18
fund.19 HLS 12RS-591 ORIGINAL
HB NO. 392
Page 2 of 3
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(b) If the expenditure limit for the fiscal year is decreased as provided for in1
Article VII, Section 10(C)(2) of this constitution, all money available for2
appropriation from the state general fund and dedicated funds in excess of the3
revised expenditure limit for the fiscal year, except funds allocated by Article VII,4
Section 4, Paragraphs (D) and (E), shall be deposited in the fund.5
* * *6
(C) The money in the fund shall not be available for appropriation or use7
except under the following conditions:8
* * *9
(4) No appropriation or deposit to the fund, except earnings realized each10
year on the investment of monies in the fund, shall be made if such appropriation or11
deposit would cause the balance in the fund to exceed four percent of total state12
revenue receipts for the previous fiscal year.13
Section 2. Be it further resolved that the provisions of the amendment contained in14
this Joint Resolution shall become effective on July 1, 2013.15
Section 3. Be it further resolved that this proposed amendment shall be submitted16
to the electors of the state of Louisiana at the statewide election to be held on November 6,17
2012.18
Section 4. Be it further resolved that on the official ballot to be used at the election,19
there shall be printed a proposition, upon which the electors of the state shall be permitted20
to vote YES or NO, to amend the Constitution of Louisiana, which proposition shall read as21
follows:22
Do you support an amendment to require that, if the expenditure limit is23
increased, monies in excess of the original expenditure limit would be24
deposited into the Budget Stabilization Fund and if the expenditure limit is25
decreased, monies in excess of the revised expenditure limit would be26
deposited into the Budget Stabilization Fund, and to require that earnings27
from investments in the Budget Stabilization Fund shall be deposited into the28 HLS 12RS-591 ORIGINAL
HB NO. 392
Page 3 of 3
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
fund, even if the fund balance has reached its maximum? (Effective July 1,1
2013) (Amends Article VII, Section 10.3(A)(1) and (C)(4))2
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Jim Morris HB No. 392
Abstract: Requires that investment earnings be retained by the Budget Stabilization Fund
even when the fund is at it maximum and clarifies what monies are to be deposited
into the Budget Stabilization Fund if the expenditure limit is changed.
Present constitution establishes the Budget Stabilization Fund (hereafter fund) in the
constitution and provides that monies available for appropriation in excess of the expenditure
limit be deposited into the fund.
Proposed constitutional amendment specifies that present constitution applies to the initial
expenditure limit which is established each year in advance of the executive budget.
Proposed constitutional amendment provides that, if the expenditure limit is decreased by
the legislature, monies available for appropriation in excess of the decreased expenditure
limit would be deposited into the Budget Stabilization Fund.
Present constitution requires earnings realized in each fiscal year on the investment of
monies in the fund to be deposited to the credit of the fund.
Present constitution prohibits any appropriation or deposit to the fund, if it would cause the
balance in the fund to exceed four percent of total state revenue receipts for the previous
fiscal year.
Proposed constitutional amendment changes present constitution by requiring earnings on
investments in the fund to be deposited into the fund, even if such deposit would cause the
balance in the fund to exceed the cap.
Provides for submission of the proposed amendment to the voters at the statewide election
to be held Nov. 6, 2012.
Effective July 1, 2013.
(Amends Const. Art. VII, §10.3(A)(1) and (C)(4))