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Regular Session, 2013
HOUSE BILL NO. 437
BY REPRESENTATIVES HARRIS, ARNOLD, BARRAS, BERTHELOT, STUART
BISHOP, BROWN, BURFORD, CARMODY, CHAMPAGNE, CONNI CK,
DANAHAY, GAROFALO, GEYMANN, GREENE, HARRISON, HAVARD,
HENRY, HODGES, HOLLIS, HOWARD, LAMBERT, NANCY L ANDRY,
LEOPOLD, MILLER, JAY MORRIS, JIM MORRIS, POPE, PUGH, PYLANT,
REYNOLDS, RICHARD, ROBIDEAUX, SCHEXNAYDER, SCHRODER,
SEABAUGH, TALBOT, AND THOMPSON
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
BUDGETARY CONTROLS: Provides with respect to the development of the budget
AN ACT1
To amend and reenact R.S. 39:24(A), 34(A), 51(A), and 54(A), relative to the budget2
process; to provide for the official forecast; to provide for the powers, duties, and3
functions of the Revenue Estimating Conference; to require certain contents in the4
executive budget; to provide for the contents of the General Appropriation Bill and5
other appropriation bills; to provide for effectiveness; and to provide for related6
matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1. R.S. 39:24(A), 34(A), 51(A), and 54(A) and hereby amended and9
reenacted to read as follows: 10
§24. Official forecast11
A. The Revenue Estimating Conference shall establish an official forecast for12
each fiscal year which shall be derived and revised only as provided in this Part. The13
official forecast shall include a forecast of all funds as defined in Article VII, Section14
10(J) of the Constitution of Louisiana, and shall include an estimate of money15
available for appropriation from each dedicated fund. To the extent that money16
supporting appropriations consists of the balance in any fund, the conference17 HLS 13RS-1102 REENGROSSED
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estimate of such balance shall be certified by the treasurer. Each such official1
forecast shall contain a designation of all money which is nonrecurring. The2
conference shall designate all other money in each official forecast as recurring. In3
addition to any other money the conference may designate as nonrecurring, the4
conference shall designate as nonrecurring, the conference shall designate as5
nonrecurring any money available for appropriation from any source that is not6
available for any three consecutive fiscal years.7
* * *8
§34. Executive budget9
A. The governor shall cause to be prepared an executive budget presenting10
a complete financial and programmatic plan for the ensuing fiscal year which shall11
include recommendations for appropriations from the state general fund and12
dedicated funds which shall not exceed the official forecast of the Revenue13
Estimating Conference. Except as provided by R.S. 39:75(E), the executive budget14
shall not include recommendations for appropriations from any fund in excess of the15
official forecast of money available for appropriation from that fund.16
* * *17
§51. General Appropriation Bill; other appropriation bills18
A. The governor shall cause a General Appropriation Bill for the ordinary19
operating expenses of government to be introduced which shall be in conformity20
with the recommendations for appropriations contained in the budget estimate as21
provided by Article VII, Section 11(B) of the Constitution of Louisiana. The22
General Appropriation Bill and other appropriation bills shall not appropriate any23
funds, as defined in Article VII, Section 10(J) of the Constitution of Louisiana,24
which are not part of the official forecast. The General Appropriation Bill and the25
bill appropriating funds for ancillary expenses of state government shall each be26
submitted for introduction at the same time required for submission of the executive27
budget as required by R.S. 39:37.28
* * *29 HLS 13RS-1102 REENGROSSED
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§54. Limitations on appropriations1
A. Appropriations by the legislature from the state general fund and2
dedicated funds for any fiscal year shall not exceed the official forecast in effect at3
the time the appropriations are made. Except as otherwise provided by R.S.4
39:75(E), appropriations by the legislature from any fund shall not exceed the5
official forecast of money available for appropriation from that fund in effect at the6
time the appropriations are made.7
* * *8
Section 2. This Act shall take effect and become operative only if the proposed9
amendments of the Constitution of Louisiana contained in the Joint Resolutions which10
originated as House Bill Nos. 434, 435, and 436 of this 2013 Regular Session of the11
Legislature are concurred in by both houses of the legislature and House Bill Nos. 1, 456,12
474, 571, 620, 653, and 696 of this 2013 Regular Session of the Legislature are enacted into13
law.14
Section 3. Subject to the provisions of Section 2, this Act shall become effective on15
July 1, 2013; if vetoed by the governor and subsequently approved by the legislature, and16
subject to the provisions of Section 2, this Act shall become effective on July 1, 2013, or on17
the day following such approval by the legislature, whichever is later.18
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)]
Harris HB No. 437
Abstract: Requires the Revenue Estimating Conference's official forecast to include a
projection of all state general fund, self-generated revenues, and statutorily dedicated
funds; requires the state treasurer to certify fund balances used to support
appropriations; requires the REC to designate certain funds as nonrecurring; and
provides for limitations on appropriations.
REVENUE ESTIMATING CONFERENCE
Present law sets forth requirements relative to the expenditure of state funds and establishes
the Revenue Estimating Conference (REC) to prepare and publish initial and revised
estimates of money to be received by the state general fund and dedicated funds for the
current and next fiscal years which are available for appropriation, the most recent of which
is called the official forecast. In each estimate, the REC must also designate money as HLS 13RS-1102 REENGROSSED
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nonrecurring. Money not designated as nonrecurring is designated recurring. Proposed law
retains present law and adds that the REC shall include a forecast of all funds as defined in
Art. VII, §10(J) of the Const. of La., with an estimate of money available for appropriation
from each dedicated fund. Proposed law also provides that the REC must designate as
nonrecurring, money available for appropriation from any source that has not been available
for any three consecutive fiscal years. Proposed law also provides that to the extent that
appropriations consist of the balance in any fund, the conference estimate of such balance
shall be certified by the treasurer. (R.S. 39:24(A))
EXECUTIVE BUDGET
Present law requires the governor to prepare an executive budget to include
recommendations for appropriations from the state general fund and dedicated funds which
shall not exceed the official forecast of the REC. Proposed law retains present law and
provides that the executive budget shall not include recommendations for appropriations
from any fund in excess of the official forecast of money available for appropriation from
that fund. (R.S. 39:34(A))
APPROPRIATION BILLS
Present law requires, after submitting his executive budget, that the governor then cause to
be introduced a General Appropriation Bill (GAB) for the ordinary operating expenditures
in conformity with the budget estimate. Proposed law retains this provision and provides
that the general appropriation bill and other appropriation bills shall not appropriate any
funds which are not part of the official REC forecast. (R.S. 39:51(A))
EXPENDITURE OF STATE FUNDS
Present law provides that appropriations from the state general fund and dedicated funds shall
not exceed the official forecast. Proposed law retains present law and also specifies that
unless otherwise provided by present law permitting the use and transfer of funds to avoid a
projected deficit, the amount appropriated out of any fund shall not exceed the official
forecast of money available for appropriation from that fund. (R.S. 39:54(A))
Further provides that this proposed law shall take effect and become operative only if HB
Nos. 434, 435, and 436 are concurred in by both houses of the legislature and if HB Nos. 456,
474, 571, 620, 653, and 696 of the 2012 Regular Session of the Legislature are enacted into
law.
Effective July 1, 2013.
(Amends R.S. 39:24(A), 34(A), 51(A), and 54(A))
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Appropriations to the
original bill.
1. Added that to the extent the Revenue Estimating Conference estimate of money
supporting appropriations consists of the balance in any dedicated fund, the
conference estimate of such balance shall be certified by the treasurer.
House Floor Amendments to the engrossed bill.
1. Clarified the definition of nonrecurring funds to be used by the Revenue
Estimating Conference in the determination of the recurring or nonrecurring
nature of revenues. Provided that the conference shall designate as nonrecurring HLS 13RS-1102 REENGROSSED
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any money available for appropriation from any source that is not available for
any three consecutive fiscal years.
2. Provided that this proposed law shall take effect and become operative only if HB
Nos. 434, 435, and 436 are concurred in by both houses of the legislature and if
HB Nos. 456, 474, 571, 620, 653, and 696 of the 2012 Regular Session of the
Legislature are enacted into law.