HLS 12RS-436 ORIGINAL
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Regular Session, 2012
HOUSE BILL NO. 800
BY REPRESENTATIVE ABRAMSON
FUNDS/FUNDING: Provides for accounts within the Education Excellence Fund and the
deposit of certain revenues
AN ACT1
To amend and reenact R.S. 17:421.7(A), R.S. 27:247, R.S. 39:98.1(C), 98.2(E), and2
98.3(A)(1) and (4), (C)(introductory paragraph), (1), (5), (7), and (8), (D), and (E)3
and to enact R.S. 27:270.1 and R.S. 39:98.3(F) and (G), relative to special treasury4
funds; to establish accounts within the Education Excellence Fund; to provide for the5
deposit and use of monies within certain accounts; to provide for the disposition of6
certain state gaming revenues; to provide for an effective date; and to provide for7
related matters.8
Be it enacted by the Legislature of Louisiana:9
Section 1. R.S. 17:421.7(A) is hereby amended and reenacted to read as follows: 10
§421.7. Support Education in Louisiana First Fund11
A. There is hereby established, as a special fund in the state treasury, the12
Support Education in Louisiana First Fund (the SELF Fund). After compliance with13
the requirements of Article VII, Section 9(B) of the Constitution of Louisiana14
relative to the Bond Security and Redemption Fund, and after a sufficient amount is15
allocated from that fund to pay all of the obligations secured by the full faith and16
credit of the state which becomes due and payable within any fiscal year, the17
treasurer shall pay to the SELF Fund an amount equal to the monies received by the18
state treasury from the avails of the franchise fees charged pursuant to R.S.19
27:91(C)(2) through (4) and the revenues required to be deposited in the SELF Fund20 HLS 12RS-436 ORIGINAL
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pursuant to R.S. 27:92(B)(2)(b) and R.S. 27:270(A)(3) and as authorized in Article1
VII, Section 10.8(C)(4)(a)(iii) of the Constitution of Louisiana and R.S. 39:98.3(D).2
The monies in this fund shall be used only as provided in Subsection B of this3
Section and only in the amounts appropriated by the legislature. All unexpended and4
unencumbered monies in this fund at the end of each fiscal year shall remain in the5
fund and shall retain their allocation for use and expenditure in accordance with the6
provisions of Subsection B of this Section. The monies in this fund shall be invested7
by the state treasurer in the same manner as monies in the state general fund. Interest8
earned on the investment of monies in this fund shall be credited to the fund,9
following compliance with the requirements of Article VII, Section 9(B) of the10
Constitution of Louisiana relative to the Bond Security and Redemption Fund.11
* * *12
Section 2. R.S. 27:247 is hereby amended and reenacted and R.S. 27:270.1 is hereby13
enacted to read as follows: 14
§247. Casino support services contract15
Subject to and in accordance with the provisions of this Chapter, the gaming16
control board shall enter into a casino support services contract with the governing17
authority of the parish where the official gaming establishment is located in order to18
compensate the parish on a quarterly basis for the cost to the parish for providing19
support services resulting from the operation of the official gaming establishment20
and the activities therein. Support services as used in this Section shall include but21
not be limited to fire, police, sanitation, health, transportation, and traffic services.22
The amount of the contract shall be determined by negotiation and agreement23
between the gaming control board and the parish, subject to approval by the Joint24
Legislative Committee on the Budget. In the event that a new contract is not agreed25
upon by the gaming control board and the parish by March thirty-first of any year,26
the contract currently in effect shall be submitted to the Joint Legislative Committee27
on the Budget for approval of the amount of the contract at the next meeting of the28
committee. If the committee approves the amount of the contract, the contract shall29 HLS 12RS-436 ORIGINAL
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remain in full force and effect. If the committee disapproves or does not act upon1
the amount of the contract, the contract shall be null, void, and of no effect.2
Obligations of the state required under the contract shall be paid from funds3
appropriated out of the Education Excellence Fund-Casino Support Services Account4
as provided in Article VII, Section 10.8(C)(4)(a)(i) of the Constitution of Louisiana5
and R.S. 39:98.3(D).6
* * *7
§270.1 Revenues from casino gaming operations; operation of the official gaming8
establishment located in Orleans Parish9
Notwithstanding any other provision of law to the contrary, monies received10
by the state from the operation of the official gaming establishment located in11
Orleans Parish shall be deposited into the state treasury in accordance with the12
provisions of Article VII, Sections 9(B) and 10.8(A)(3)(b) of the Constitution of13
Louisiana and R.S. 39:98.1(C)(2). Monies shall be deposited in and credited to the14
Education Excellence Fund-Casino Support Services Account, and the disposition15
and appropriation of monies from the account shall be made in accordance with the16
provisions of Article VII, Section 10.8(C)(4) of the Constitution of Louisiana and17
R.S. 39:98.3(D).18
Section 3. R.S. 39:98.1(C), 98.2(E), and 98.3(A)(1), (4), and (C)(introductory19
paragraph), (1), (5), (7), and (8), (D) and (E) are hereby amended and reenacted and R.S.20
39:98.3(F) and (G) are hereby enacted to read as follows:21
SUBPART E. TOBACCO SETTLEMENT PROCEEDS22
§98.1. Creation of Funds23
* * *24
C.(1) C. The Education Excellence Fund shall be established in the state25
treasury as a special fund within the Millennium Trust. The treasurer shall credit to26
the Education Excellence Fund one-third of the Settlement Agreement proceeds27
deposited into the Millennium Trust and one-third of all dividend and interest28
income and all realized capital gains on investment of monies in the Millennium29 HLS 12RS-436 ORIGINAL
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Trust. The fund shall be comprised of three accounts including the Permanent1
Account, the Casino Support Services Account, and the Early Childhood2
Development Account.3
(1)(a) The Education Excellence Fund-Permanent Account shall be4
established as an account within the Education Excellence Fund.5
(2) (b) Beginning Fiscal Year 2011-2012, and each fiscal year thereafter, the6
treasurer shall credit to the Education Excellence Fund Permanent Account one-third7
of all dividend and interest income and all realized capital gains on investment of8
monies in the Millennium Trust.9
(2) The Education Excellence Fund-Casino Support Services Account shall10
be established as an account within the Education Excellence Fund. After satisfying11
the requirements of Article VII, Section 9(B) of this constitution, the state treasurer12
shall deposit in and credit to this account the monies received by the state under the13
contract to operate the official gaming establishment located in Orleans Parish.14
Monies in the account shall be invested in the same manner as the state general fund15
and any earnings on such investment shall be deposited into the account. Any16
unexpended and unencumbered monies remaining in the account at the end of the17
fiscal year shall remain to the credit of the account.18
(3) The Education Excellence Fund-Early Childhood Development Account19
shall be established as an account within the Education Excellence Fund. The source20
of monies to be deposited into the account shall be those monies transferred from the21
Education Excellence Fund-Casino Support Services Account as provided in Article22
VII, Section 10.8(C)(4) of the Constitution of Louisiana and R.S. 39:98.3(D).23
Monies in the account shall be invested in the same manner as the state general fund24
and any earnings on such investment shall be deposited into the account. Any25
unexpended and unencumbered monies remaining in the account at the end of the26
fiscal year shall remain to the credit of the account.27
(4) Upon the effective date of this Subsection, the state treasurer shall28
deposit, transfer, or otherwise credit funds in an amount equal to unencumbered29 HLS 12RS-436 ORIGINAL
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monies deposited in and credited to the Education Excellence Fund to the Education1
Excellence Fund-Permanent Account.2
* * *3
§98.2. Investment of Millennium Trust4
* * *5
E. On or before December first of each year, the treasurer shall prepare and6
submit a report on the performance of the Millennium Trust to the Joint Legislative7
Committee on the Budget and the commissioner of administration for their review.8
With respect to the Education Excellence Fund-Permanent Account, the report shall9
also be provided to the state superintendent of education.10
§98.3. Appropriations from the Health Excellence Fund, the Education Excellence11
Fund, and the TOPS Fund12
A.(1) Appropriations from the Education Excellence Fund-Permanent13
Account shall be limited to an annual amount not to exceed the estimated aggregate14
annual earnings from interest, dividends, and realized capital gains on investment of15
the Millennium Trust allocated as provided by R.S. 39:98.1(B) and (C) as recognized16
by the Revenue Estimating Conference. Amounts determined to be available for17
appropriation shall be those aggregate investment earnings which are in excess of an18
inflation factor as determined by the Revenue Estimating Conference. The amount19
of estimated aggregate investment earnings available for appropriation shall be20
determined by subtracting the product of the inflation factor multiplied by the21
amount of aggregate investment earnings for the previous fiscal year from the22
amount of such estimated aggregate investment earnings. The amount of realized23
capital gains on investment which may be included in the aggregate earnings24
available for appropriation from the Millennium Trust in any fiscal year shall not25
exceed the aggregate of earnings from interest and dividends for that year.26
* * *27
(4) Actual earnings from interest, dividends, and capital gains during the28
fiscal year in excess of the amounts estimated as available for appropriation shall be29 HLS 12RS-436 ORIGINAL
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credited to the appropriate fund and available for appropriation in subsequent years.1
Appropriations from the Health Excellence Fund, the Education Excellence Fund-2
Permanent Account, and the TOPS Fund shall include performance expectations to3
ensure accountability in the expenditure of such monies.4
* * *5
C. Appropriations from the Education Excellence Fund-Permanent Fund6
shall be restricted as follows:7
(1) Fifteen percent of monies available for appropriation in any fiscal year8
from the Education Excellence Fund Permanent Account shall be appropriated to the9
state superintendent of education for distribution on behalf of all children attending10
private elementary and secondary schools that have been approved by the State11
Board of Elementary and Secondary Education, both academically and as required12
for such school to receive money from the state.13
* * *14
(5) Beginning Fiscal Year 2007-2008 and for each year thereafter, of the15
monies available for appropriation after providing for the purposes enumerated in16
Paragraphs (1), (2), and (3) of this Subsection, one hundred percent of the monies17
available for appropriation in any fiscal year from the Education Excellence Fund18
Permanent Account shall be distributed to each city, parish, or other local school19
system, to be apportioned to the recipient entities on a pro rata basis which is based20
on the ratio of the student population of that school or school system to that of the21
total state student population.22
* * *23
(7) Each recipient school or school system shall annually prepare and submit24
to the state Department of Education, hereinafter the "department", a prioritized plan25
for expenditure of funds it expects to receive in the coming year from the Education26
Excellence Fund Permanent Account. The plan shall include performance27
expectations to ensure accountability in the expenditure of such monies. The28
department shall review such plans for compliance with the requirements of this29 HLS 12RS-436 ORIGINAL
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Subsection and to assure that the expenditure plans will support excellence in1
educational practice. No funds may be distributed to any school system until its plan2
has been approved by the department and by the appropriate standing committees of3
the legislature.4
(8) No amount appropriated as required in this Subsection shall displace,5
replace, or supplant appropriations from the general fund for elementary and6
secondary education, including implementing the Minimum Foundation Program.7
This Paragraph shall mean that no appropriation for any fiscal year from the8
Education Excellence Fund Permanent Account shall be made for any purpose for9
which a general fund appropriation was made the previous year unless the total10
appropriations for the fiscal year from the state general fund for such purpose11
exceeds general fund appropriations of the previous year. Nor shall any money12
allocated to a city or parish school board pursuant to this Section displace, replace,13
or supplant locally generated revenue, meaning that no allocation to any city or14
parish school board from the investment earnings attributable to the Education15
Excellence Fund Permanent Account shall be expended for any purpose for which16
a local revenue source was expended the previous fiscal year unless the total of the17
local revenue amount expended that fiscal year exceeds the total of such local18
revenue amounts for the previous year.19
* * *20
D. The disposition and appropriation of monies from the Education21
Excellence Fund-Casino Support Services Account shall be made in accordance with22
the provisions of this Subsection. Of the total monies deposited into the account23
each fiscal year:24
(1) An amount equal to the revenues received by the state in Fiscal Year25
2011-2012 under the contract to operate the official gaming establishment located26
in Orleans Parish shall be available for appropriation for the following purposes:27
(a) First, monies may be appropriated in an amount sufficient to satisfy any28
state obligation which may be required pursuant to a casino support services contract29 HLS 12RS-436 ORIGINAL
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for purposes of the official gaming establishment located in Orleans Parish as may1
be provided by law.2
(b) Of the monies remaining thereafter, up to one percent may be3
appropriated for services related to compulsive and problem gaming as may be4
provided by law.5
(c) Of the monies remaining thereafter, appropriations may be made for the6
support of salaries of public pre-kindergarten through twelfth grade certificated7
personnel and public post-secondary education faculty as provided in R.S. 17:421.7.8
(2) All monies remaining thereafter shall be deposited in and credited to the9
Education Excellence Fund-Early Childhood Development Account.10
(3) Changes to the purposes for and limitations on appropriations and11
transfers of money from the Casino Support Services Account as provided for in this12
Subsection may be authorized for a specific fiscal year by a favorable vote of two-13
thirds of the elected members of each house. Any such change shall be approved by14
passage of a specific instrument which clearly states the intent to change a purpose15
or limitation on an appropriation or required transfer of money, and the instrument16
may be considered in any regular session of the legislature and shall only be17
considered in the fiscal year preceding the fiscal year for which the change is18
proposed.19
E. Appropriations from the Education Excellence Fund-Early Childhood20
Development Account shall be restricted to the support of early childhood21
development and education services as may be provided by law. 22
F. Appropriations from the TOPS Fund shall be restricted to support of the23
state's program for financial assistance for students attending Louisiana institutions24
of postsecondary education as established in Chapter 20-G of Title 17 of the25
Louisiana Revised Statutes of 1950.26
E. G. Recommendations and requests for expenditure or funding from the27
Health Excellence Fund and TOPS Fund shall be made in accordance with the28
provisions of R.S. 39:98.4(C) through (F).29 HLS 12RS-436 ORIGINAL
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Section 4. This Act shall take effect and become operative if and when the proposed1
amendment of Article VII, Section 10.8 of the Constitution of Louisiana contained in the Act2
which originated as House Bill No. ___ of this 2012 Regular Session of the Legislature is3
adopted at a statewide election and becomes effective.4
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)]
Abramson HB No. 800
Abstract: Establishes accounts in the Education Excellence Fund to provide for the Casino
Support Services Contract and early childhood development and education services.
Present law establishes the Support Education in La. First Fund (the SELF Fund) and
provides for the fund to receive revenues pursuant to fees charged on riverboat and casino
gaming operations as provided for in present law .
Proposed law retains present law and further provides for the SELF fund to receive monies
from the Education Excellence Fund-Casino Support Services Account as authorized by
proposed law.
Present law provides for the gaming control board to enter into a casino support services
contract with the governing authority of the parish where the official gaming establishment
is located to compensate the parish on a quarterly basis for the cost to the parish for
providing support services resulting from the operation of the official gaming establishment.
Support services as used in present law include fire, police, sanitation, health, transportation,
and traffic services. The amount of the contract is determined by negotiation and agreement
between the gaming control board and the parish, subject to approval by the Joint Legislative
Committee on the Budget. In the event that a new contract is not agreed upon by the gaming
control board and the parish by March 31 of any year, the contract currently in effect shall
be submitted to the Joint Legislative Committee on the Budget for approval of the amount
of the contract at the next meeting of the committee. If the committee approves the amount
of the contract, the contract shall remain in full force and effect. If the committee
disapproves or does not act upon the amount of the contract, the contract shall be null, void,
and of no effect.
Proposed law retains present law and further provides that obligations of the state required
under the contract shall be paid from funds appropriated out of the Education Excellence
Fund-Casino Support Services Account created in proposed law.
Proposed law provides that monies received by the state from the operation of the official
gaming establishment located in Orleans Parish shall be deposited into the Education
Excellence Fund-Casino Support Services Account created in proposed law .
Present law and present constitution creates the Education Excellence Fund within the
Millennium Trust and provides that 1/3 of the investment earnings on investment of monies
from the Tobacco Master Settlement Agreement be deposited into the Fund.
Proposed law retains present law and further establishes three accounts in the Education
Excellence Fund: the Permanent Account, the Casino Support Services Account, and the
Early Childhood Development Account. HLS 12RS-436 ORIGINAL
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Proposed law further provides that the accounts established receive monies as follows:
(1)The Permanent Account receives 1/3 of the investment earnings on investment of
monies from the Tobacco Master Settlement Agreement.
(2)The Casino Support Services Account receives the monies received by the state
under the contract to operate the official gaming establishment located in Orleans
Parish.
(3)The Early Childhood Development Account receives monies transferred from the
Education Excellence Fund-Casino Support Services Account once the obligations
of that Account have been paid according to proposed law.
Proposed law provides that upon the effective date of proposed law, the state treasurer shall
deposit, transfer, or otherwise credit funds in an amount equal to unencumbered monies
deposited in and credited to the Education Excellence Fund to the Education Excellence
Fund-Permanent Account.
Proposed law provides that appropriation of monies from the Education Excellence Fund-
Casino Support Services Account shall be an amount equal to the revenues received by the
state in FY 2011-2012 under the contract to operate the official gaming establishment
located in Orleans Parish shall be available for appropriation for the following purposes:
(1)Satisfaction of any state obligation which may be required pursuant to a casino
support services contract for purposes of the official gaming establishment located
in Orleans Parish as may be provided by law.
(2)1% percent for services related to compulsive and problem gaming as may be
provided by law.
(3)Of the monies remaining, appropriations may be made for the support of salaries of
public pre-kindergarten through twelfth grade certificated personnel and public post-
secondary education faculty as provided in the SELF Fund.
Proposed law further provides that all monies remaining thereafter are to be deposited in and
credited to the Education Excellence Fund-Early Childhood Development Account.
Proposed law provides that changes to the purposes and limitations on appropriations and
transfers of money from the Casino Support Services Account as provided for in proposed
law may be authorized for a specific fiscal year by a favorable vote of 2/3 of the elected
members of each house. Any such change must be approved by passage of a specific
instrument, considered during any regular session of the legislature, which clearly states the
intent to change a purpose or limitation on an appropriation or required transfer of money,
and the instrument shall only be considered in the fiscal year preceding the fiscal year for
which the change is proposed.
Proposed law provides that appropriations from the Education Excellence Fund-Early
Childhood Development Account shall be restricted to the support of early childhood
development and education services as may be provided by present law.
Effective upon approval of the proposed constitutional amendment of Article VII, Section
10.8 of the Const. of La. in HB No. ___ of the 2012 R.S.
(Amends R.S. 17:421.7(A), R.S. 27:247, R.S. 39:98.1(C), 98.2(E), and 98.3(A)(1) and (4)
(C)(intro. para.), (1), (5), (7), and (8), (D), and (E); Adds R.S. 27:270.1 and R.S. 39:98.3(F)
and (G))