HLS 14RS-425 ORIGINAL
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are additions.
Regular Session, 2014
HOUSE BILL NO. 26
BY REPRESENTATIVE JONES
RETIREMENT/FUNDING: (Constitutional Amendment) Requires that a portion of
nonrecurring revenue be applied toward reducing the balance of the unfunded
accrued liability of certain state retirement systems
A JOINT RESOLUTION1
Proposing to amend Article VII, Section 10(D)(2)(c) through (f) of the Constitution of2
Louisiana and to add Article VII, Section 10(D)(2)(g) of the Constitution of3
Louisiana, to provide for allowable uses of nonrecurring revenue; to provide for the4
payment of unfunded accrued liabilities; to provide for submission of the proposed5
amendment to the electors; and to provide for related matters.6
Notice of intention to introduce this Act has been published7
as provided by Article X, Section 29(C) of the Constitution8
of Louisiana.9
Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members10
elected to each house concurring, that there shall be submitted to the electors of the state of11
Louisiana, for their approval or rejection in the manner provided by law, a proposal to12
amend Article VII, Section 10(D)(2)(c) through (f) of the Constitution of Louisiana and to13
add Article VII, Section 10(D)(2)(g) of the Constitution of Louisiana, to read as follows:14
§10. Expenditure of State Funds15
Section 10.16
* * *17
(D) Appropriations.18
* * *19 HLS 14RS-425 ORIGINAL
HB NO. 26
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(2) Except as otherwise provided in this constitution, the appropriation or1
allocation of any money designated in the official forecast as nonrecurring shall be2
made only for the following purposes:3
* * *4
(c)(i) Providing for payments against the unfunded accrued liability of the5
Louisiana School Employees' Retirement System and the State Police Retirement6
System; however, any such payments to these systems shall not be used, directly or7
indirectly, to fund cost-of-living increases for such systems.8
(ii) For Fiscal Year 2015-2016 and every fiscal year thereafter, the legislature9
shall appropriate no less than two and one-half percent of any money designated in10
the official forecast as nonrecurring to the Louisiana School Employees' Retirement11
System and the State Police Retirement System for application to the oldest12
outstanding positive amortization base of each system, without reamortization of the13
base. Amounts so appropriated shall be in proportion to the balance of the unfunded14
accrued liability of each system. Upon complete liquidation of the oldest outstanding15
positive amortization base of a system, any remaining funds shall be applied to the16
next oldest outstanding positive amortization base of the system, without17
reamortization of the base, until all such appropriated funds are used. Any such18
payments to the public retirement systems shall not be used, directly or indirectly,19
to fund cost-of-living increases for such systems.20
(d) Providing funding for capital outlay projects in the comprehensive state21
capital budget.22
(d) (e) Providing for allocation or appropriation for deposit into the Budget23
Stabilization Fund established in Article VII, Section 10.3 of this constitution.24
(e) (f) Providing for allocation or appropriation for deposit into the Coastal25
Protection and Restoration Fund established in Article VII, Section 10.2 of this26
constitution.27 HLS 14RS-425 ORIGINAL
HB NO. 26
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(f) (g) Providing for new highway construction for which federal matching1
funds are available, without excluding highway projects otherwise eligible as capital2
projects under other provisions of this constitution.3
* * *4
Section 2. Be it further resolved that this proposed amendment shall be submitted5
to the electors of the state of Louisiana at the statewide election to be held on November 4,6
2014.7
Section 3. Be it further resolved that on the official ballot to be used at the election,8
there shall be printed a proposition, upon which the electors of the state shall be permitted9
to vote YES or NO, to amend the Constitution of Louisiana, which proposition shall read as10
follows:11
Do you support an amendment to require that two and one-half percent of12
nonrecurring state money be applied toward the oldest outstanding unfunded13
accrued liability of the Louisiana School Employees' Retirement System and14
the State Police Retirement System? (Amends Article VII, Section 10(D)(2)15
(c) through (f); Adds Article VII, Section 10(D)(2)(g))16
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)]
Jones HB No. 26
Abstract: Provides for at least 2.5% of funds recognized as nonrecurring to be applied
toward payment of the balance of the oldest outstanding unfunded accrued liabilities
of the La. School Employees' Retirement System and the State Police Retirement
System.
Present constitution provides that any money designated in the official forecast as
nonrecurring shall be appropriated for the following purposes:
(1)Retiring or defeasance of bonds in advance of and in addition to the existing
amortization requirements of the state.
(2)Providing for payments against the unfunded accrued liability that existed as of
June 30, 1988, of the public retirement systems, which are in addition to any
payments required by present constitution for the annual amortization of such
unfunded accrued liability. HLS 14RS-425 ORIGINAL
HB NO. 26
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Requires that for FY 2013-2014 and 2014-2015 a minimum of 5% of any money
designated in the official forecast as nonrecurring shall be applied toward payment
of the balance of the unfunded accrued liabilities for those liabilities which existed
as of June 30, 1988, for the La. State Employees' Retirement System and the
Teachers Retirement System of La. in proportion to the balance of such unfunded
accrued liability of each system.
Further requires that for FY 2015-2016 and thereafter the minimum amount applied
toward payment of the balance of the unfunded accrued liabilities shall increase to
10%.
(3)Providing funding for capital outlay projects in the comprehensive state budget.
(4)Providing for allocation or appropriation for deposit into the Budget Stabilization
Fund. Article VII, §10.3(A)(3) and (C)(4) requires 25% of nonrecurring revenues
be deposited into the Budget Stabilization Fund unless the fund balance exceeds 4%
of the previous fiscal year's total state receipt.
(5)Providing for allocation or appropriation for deposit into the Coastal Protection and
Restoration Fund.
(6)Providing for new highway construction for which federal matching funds are
available, without excluding highway projects otherwise eligible as capital projects
under other provisions of law.
Proposed constitutional amendment retains present constitution.
Proposed constitutional amendment provides for payments from nonrecurring revenue to be
made against the general unfunded accrued liability of the La. School Employees'
Retirement System and the State Police Retirement System.
Proposed constitutional amendment provides that for FY 2015-2016 and every fiscal year
thereafter a minimum of 2.5% of any money designated in the official forecast as
nonrecurring shall be applied toward payment of the balance of the oldest outstanding
unfunded accrued liability of the La. School Employe es' Retirement System and the State
Police Retirement System in proportion to the balance of such unfunded accrued liability of
each system. Upon complete liquidation of the oldest outstanding debt of the system, any
remaining funds from an appropriation pursuant to proposed constitutional amendment shall
be applied to the next oldest outstanding debt of such system until all such appropriated
funds are exhausted. Further prohibits reamortization of the debt when the proposed funds
are applied toward it.
Proposed constitutional amendment prohibits the direct and indirect use of any such
dedicated funds to fund a cost-of-living increase.
Provides for submission of the proposed amendment to the voters at the statewide election
to be held Nov. 4, 2014.
(Amends Const. Article VII, §10(D)(2)(c)-(f); Adds Const. Article VII, §10(D) (2)(g))