HLS 14RS-605 ORIGINAL
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Regular Session, 2014
HOUSE BILL NO. 587
BY REPRESENTATIVE CARMODY
FUNDS/FUNDING: (Constitutional Amendment) Eliminates certain constitutional
dedications and funding mandates
A JOINT RESOLUTION1
Proposing to amend Article VII, Sections 10(D)(3) and (F)(2)(a) and (b), 10.2(B), and 27(A)2
and (B), Article VIII, Section 13(A) and (B), and Article XII, Section 6(A)(1) of the3
Constitution of Louisiana, to remove certain constitutional funding mandates and4
protections, including mandates and protections for state supplemental pay, free5
school books, the Minimum Foundation Program, the Coastal Protection and6
Restoration Fund, the Transportation Trust Fund, the Parish Transportation Fund,7
and the Lottery Proceeds Fund; to provide for submission of the proposed8
amendment to the electors; and to provide for related matters.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, Sections 10(D)(3) and (F)(2)(a) and (b), 10.2(B), and 27(A) and (B) of13
the Constitution of Louisiana, to read as follows:14
ARTICLE VII. REVENUE AND FINANCE15
§10. Expenditure of State Funds16
Section 10. 17
* * *18
(D) Appropriations. 19
* * *20 HLS 14RS-605 ORIGINAL
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(3)(a) The legislature shall may provide by law for the payment by the state1
of supplements to the salaries of full-time local law enforcement and fire protection2
officers of the state. No law shall reduce any payments by the state provided as a3
supplement to the salaries of full-time local law enforcement and fire protection4
officers of the state. Beginning with the fiscal year which begins July 1, 2003, the5
legislature shall appropriate funds sufficient to fully fund the cost of such state6
supplement to the salaries of full-time law enforcement and fire protection officers.7
(b) For the purposes of this Subparagraph, local law enforcement and fire8
protection officers shall mean and include the same classes of officers which are9
eligible for such state salary supplements under the law as of July 1, 2003.10
(c) Full funding as required in Subsubparagraph (a) of this Subparagraph11
shall be equal to the amount which is required to meet the requirements of law.12
(d) Neither the governor nor the legislature may reduce an appropriation13
made pursuant to this Subparagraph except that the governor may reduce such14
appropriation using means provided in the Act containing the appropriation,15
provided that two-thirds of the elected members of each house of the legislature16
consent to any such reduction in writing.17
* * *18
(F) Projected Deficit. 19
* * *20
(2)(a) Notwithstanding any other provision of this constitution to the21
contrary, adjustments to any constitutionally protected or mandated allocations or22
appropriations, and transfer of monies associated with such adjustments, are23
authorized when state general fund allocations or appropriations have been reduced24
in an aggregate amount equal to at least seven-tenths of one percent of the total of25
such allocations and appropriations for a fiscal year. Such adjustments may not26
exceed five percent of the total appropriation or allocation from a fund for the fiscal27
year. For purposes of this Subsubparagraph, reductions to expenditures required by28
Article VIII, Section 13(B) of this constitution shall not exceed one percent and such29 HLS 14RS-605 ORIGINAL
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reductions shall not be applicable to instructional activities included within the1
meaning of instruction pursuant to the Minimum Foundation Program formula.2
Notwithstanding any other provisions of this constitution to the contrary, monies3
transferred as a result of such budget adjustments are deemed available for4
appropriation and expenditure in the year of the transfer from one fund to another,5
but in no event shall the aggregate amount of any transfers exceed the amount of the6
deficit.7
(b) Notwithstanding any other provision of this constitution to the contrary,8
for the purposes of the budget estimate and enactment of the budget for the next9
fiscal year, when the official forecast of recurring revenues for the next fiscal year10
is at least one percent less than the official forecast for the current fiscal year, the11
following procedure may be employed to avoid a budget deficit in the next fiscal12
year. An amount not to exceed five percent of the total appropriations or allocations13
for the current fiscal year from any fund established by law or this constitution shall14
be available for expenditure in the next fiscal year for a purpose other than as15
specifically provided by law or this constitution. For the purposes of this16
Subsubparagraph, an amount not to exceed one percent of the current fiscal year17
appropriation for expenditures required by Article VIII, Section 13(B) of this18
constitution shall be available for expenditures for other purposes in the next fiscal19
year. Notwithstanding any other provisions of this constitution to the contrary,20
monies made available as authorized under this Subsubparagraph may be transferred21
to a fund for which revenues have been forecast to be less than the revenues in the22
current fiscal year for such fund. Monies transferred as a result of the budget actions23
authorized by this Subsubparagraph are deemed available for appropriation and24
expenditure, but in no event shall the aggregate amount of any such transfers exceed25
the amount of the difference between the official forecast for the current fiscal year26
and the next fiscal year.27
* * *28 HLS 14RS-605 ORIGINAL
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§10.2. Coastal Protection and Restoration Fund1
Section 10.22
* * *3
(B)(1) After making the allocations provided for in Paragraph (A), the4
treasurer shall then deposit in and credit to the Coastal Protection and Restoration5
Fund any amount of mineral revenues that may be necessary to insure that a total of6
five million dollars is deposited into such fund for the fiscal year from this source;7
provided that the The balance of the fund Coastal Protection and Restoration Fund8
which consists of mineral revenues from severance taxes, royalty payments, bonus9
payments, or rentals shall not exceed an amount provided by law, but in no event10
shall the amount provided by law be less than five hundred million dollars.11
(2) After making the allocations and deposits provided for in Paragraphs (A)12
and (B)(1) of this Section, the treasurer shall deposit in and credit to the Coastal13
Protection and Restoration Fund as follows:14
(a) Ten million dollars of the mineral revenues in excess of six hundred15
million dollars which remain after the allocations provided for in Paragraph (A) are16
made by the treasurer.17
(b) Ten million dollars of the mineral revenues in excess of six hundred fifty18
million dollars which remain after the allocations provided in Paragraph (A) are19
made by the treasurer.20
However, the balance of the fund which consists of mineral revenues from21
severance taxes, royalty payments, bonus payments, or rentals shall not exceed an22
amount provided by law, but in no event shall the amount provided by law be less23
than five hundred million dollars.24
* * *25
§27. Transportation Trust Fund 26
Section 27.(A) Creation of fund. Effective January 1, 1990, there shall be27
established in the state treasury as a special permanent trust fund the Transportation28
Trust Fund ("the trust fund") in which shall be deposited the "excess revenues" as29 HLS 14RS-605 ORIGINAL
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defined herein which are a portion of the avails received in each year from all taxes1
levied on gasoline and motor fuels and on special fuels (said avails being referred to2
as the "revenues") as provided herein. After satisfying pledges respecting that3
portion of the revenues attributable to the tax rates in effect at the time of such4
pledges for the payment of obligations for bonds or other evidences of indebtedness5
on the effective date of this Section, the treasurer shall allocate such portion of the6
revenues received in each year as necessary to pay all principal, interest, premium,7
if any, and other obligations incident to the issuance, security, and payment in8
respect of bonds as authorized in Paragraph (C) hereof. Thereafter, the portion of the9
revenues remaining shall be deposited in the Bond Security and Redemption Fund10
in the state treasury. After (1) the payment of any obligations for bonds or other11
evidences of indebtedness in existence on the effective date of this Section which are12
secured by revenues; (2) payments in respect of bonds authorized in Paragraph (C)13
hereof; and (3) credit to the Bond Security and Redemption Fund, the treasurer shall14
deposit in and credit to the trust fund all of the revenues remaining (the "excess15
revenues") from the avails of all taxes levied on gasoline and motor fuels and on16
special fuels, as follows: for the fiscal year beginning July 1, 1989, the avails of17
twelve cents per gallon of said taxes received on and after January 1, 1990; for the18
fiscal year beginning on July 1, 1990, the avails of fourteen cents per gallon of said19
taxes; for the fiscal year beginning on July 1, 1991, through the fiscal year beginning20
on July 1, 2014, and thereafter, the avails of all taxes levied on gasoline and motor21
fuels and on special fuels; for the fiscal year beginning on July 1, 2015, and22
thereafter, the avails of taxes levied on gasoline and motor fuels and on special fuels23
necessary to satisfy pledges respecting that portion of the revenues attributable to the24
tax rates in effect at the time of such pledges for the payment of bond obligations or25
other evidences of indebtedness on January 1, 2015, and the avails of other taxes26
levied on gasoline and motor fuels and on special fuels as may be provided by law.27
Purchases of gasoline, diesel fuel, or special fuels which are subject to excise tax28
under Chapter 7 of Subtitle II of Title 47 of the Louisiana Revised Statutes of 195029 HLS 14RS-605 ORIGINAL
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shall be exempt from the state sales tax and any sales tax levied by a political1
subdivision as defined by Article VI, Section 44(2). All monies appropriated by the2
Federal Highway Administration and the Federal Aviation Administration, or their3
successors, either reimbursed or paid directly, shall be paid directly or deposited in4
and credited to the trust fund.5
(B) The monies in the trust fund shall be appropriated or dedicated solely6
and exclusively for the costs for and associated with construction and maintenance7
of the roads and bridges of the state and federal highway systems, the Statewide8
Flood-Control Program or its successor, ports, airports, transit, state police for traffic9
control purposes, and the Parish Transportation Fund or its successor and for the10
payment of all principal, interest, premium, if any, and other obligations incident to11
the issuance, security, and payment in respect of bonds or other obligations payable12
from the trust fund as authorized in Paragraph (D) hereof. Unless pledged to the13
repayment of bonds authorized in Paragraphs (C) or (D) of this Section, the monies14
in the trust fund allocated to ports, airports, flood control, parish transportation, and15
state highway construction shall be appropriated annually by the legislature only16
pursuant to programs established by law which establish a system of priorities for the17
expenditure of such monies, except that the Transportation Infrastructure Model for18
Economic Development, which shall include only those projects enumerated in19
House Bill 17 of the 1989 First Extraordinary Session of the Legislature* and US20
Highway 61 from Thompson Creek to the Mississippi Line, in lieu of "US 61-Bains21
to Mississippi Line", and US Highway 165 from I-10 to Alexandria to Monroe to22
Bastrop and thence on US Highway 425 from Bastrop to the Arkansas Line, in lieu23
of "US 165-I-10 Alexandria-Monroe-Bastrop-Arkansas Line", and LA 15-Natchez,24
Mississippi to Chase in lieu of "LA 15-Natchez, Mississippi to Monroe", shall be25
funded as provided by law. The state generated tax monies appropriated for ports,26
Parish Transportation Fund, or its successor, and the Statewide Flood-Control27
Program, or its successor, and state police for traffic control purposes shall not28
exceed twenty percent annually of the state generated tax revenues in the trust fund.;29 HLS 14RS-605 ORIGINAL
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provided, however, that no less than the avails of one cent of the tax on gasoline and1
special fuels shall be appropriated each year to the Parish Transportation Fund, or its2
successor. The annual appropriation for airports shall be a sum equal to, but not3
greater than, the annual estimated revenue to be derived from the state taxes to be4
collected and received on aviation fuel. Unencumbered and unexpended balances5
at the end of each fiscal year shall remain in the trust fund. The earnings realized in6
each fiscal year on the investment of monies in the trust fund shall be deposited in7
and credited to the trust fund.8
* * *9
Section 2. 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 VIII, Section 13(A) and (B) of the Constitution of Louisiana, to read as13
follows:14
ARTICLE VIII. EDUCATION 15
§13. Funding; Apportionment16
Section 13.(A) Free School Books. The legislature shall may appropriate17
funds to supply free school books and other materials of instruction prescribed by the18
State Board of Elementary and Secondary Education to the children of this state at19
the elementary and secondary levels.20
(B) Minimum Foundation Program. The State Board of Elementary and21
Secondary Education, or its successor, shall annually develop and adopt a formula22
which shall be used to determine the cost of a minimum foundation program of23
education in all public elementary and secondary schools as well as to equitably24
allocate the funds appropriated by the legislature pursuant to this Section for to25
parish and city school systems , all as provided by law. Such formula shall provide26
for a contribution by every city and parish school system. Prior to approval of the27
formula by the legislature, the legislature may return the formula adopted by the28
board to the board and may recommend to the board an amended formula for29 HLS 14RS-605 ORIGINAL
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consideration by the board and submission to the legislature for approval. The1
legislature shall annually appropriate funds sufficient to fully fund the current cost2
to the state of such a program as determined by applying the approved formula in3
order to insure a minimum foundation of education in all public elementary and4
secondary schools an equitable allocation of funds to parish and city school systems.5
Neither the governor nor the legislature may reduce such appropriation, except that6
the governor may reduce such appropriation using means provided in the act7
containing the appropriation provided that any such reduction is consented to in8
writing by two-thirds of the elected members of each house of the legislature. The9
funds appropriated shall be equitably allocated to parish and city school systems10
according to the formula as adopted by the State Board of Elementary and Secondary11
Education, or its successor, and approved by the legislature prior to making the12
appropriation as provided by law. Whenever the legislature fails to approve the13
formula most recently adopted by the board, or its successor, the last formula14
adopted by the board, or its successor, and approved by the legislature shall be used15
for the determination of the cost of the minimum foundation program and for the16
allocation of funds appropriated.17
* * *18
Section 3. Be it resolved by the Legislature of Louisiana, two-thirds of the members19
elected to each house concurring, that there shall be submitted to the electors of the state of20
Louisiana, for their approval or rejection in the manner provided by law, a proposal to21
amend Article XII, Section 6(A)(1) of the Constitution of Louisiana, to read as follows:22
ARTICLE XII. GENERAL PROVISIONS23
§6. Lotteries; Gaming, Gambling, or Wagering24
Section 6.(A) Lotteries. (1) The legislature may provide for the creation and25
operation of a state lottery and may create a special corporation for that purpose26
whose employees shall not be subject to state civil service. The net proceeds from27
the operation of the lottery shall be deposited in a special fund created in the state28
treasury entitled the Lottery Proceeds Fund. Amounts deposited in the fund shall not29 HLS 14RS-605 ORIGINAL
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be appropriated for expenditure in the same calendar year in which they are received.1
The legislature shall annually appropriate from the fund only for the purposes of the2
minimum foundation program and no more than five hundred thousand dollars for3
services related to compulsive and problem gaming as may be provided by law.4
* * *5
Section 4. Be it further resolved that this proposed amendment shall be submitted6
to the electors of the state of Louisiana at the statewide election to be held on November 4,7
2014.8
Section 5. Be it further resolved that on the official ballot to be used at the election,9
there shall be printed a proposition, upon which the electors of the state shall be permitted10
to vote YES or NO, to amend the Constitution of Louisiana, which proposition shall read as11
follows:12
Do you support an amendment to remove certain constitutional funding13
mandates and funding protections, including mandates and protections for14
state supplemental pay, free school books, the Minimum Foundation15
Program, the Coastal Protection and Restoration Fund, the Transportation16
Trust Fund, the Parish Transportation Fund, and the Lottery Proceeds Fund?17
(Amends Article VII, Sections 10(D)(3) and (F)(2)(a) and (b), 10.2(B), and18
27(A) and (B), Article VIII, Section 13(A) and (B), and Article XII, Section19
6(A)(1))20
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)]
Carmody HB No. 587
Abstract: Deletes mandatory expenditures and allocations of certain revenues in the
constitution relative to state supplemental pay, the MFP, the Coastal Protection and
Restoration Fund, the Transportation Trust Fund, the Parish Transportation Fund,
and the Lottery Proceeds Fund.
Proposed constitutional amendment changes mandates regarding state supplemental pay, free
school books, the Minimum Foundation Program (MFP), the Coastal Protection and
Restoration Fund, deposits into the Transportation Trust Fund, and the Lottery Proceeds
Fund as follows: HLS 14RS-605 ORIGINAL
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STATE SUPPLEMENTAL PAY
Present constitution requires the legislature to provide by law for the payment of state
supplemental pay to full-time local law enforcement and fire protection officers, as
determined by present law on July 1, 2003. Prohibits the reduction of any payments by the
state and requires the legislature to fully fund the cost of state supplemental pay. Restricts
the ability of the governor or legislature to reduce supplemental pay appropriations unless
the reduction is by means contained in the appropriation Act and that 2/3 of the elected
members of the legislature consent in writing to the reduction.
Proposed constitutional amendment deletes the present constitution mandate to fully fund
state supplemental pay but instead provides that the legislature may provide by law for the
payment of state supplemental pay to full-time law enforcement and fire protection officers.
FREE SCHOOL BOOKS
Present constitution requires the legislature to appropriate funds to supply free school books
and other instruction materials prescribed by the State Board of Elementary and Secondary
Education (BESE) to elementary and secondary schools of the state.
Proposed constitutional amendment deletes the present constitution mandate to appropriate
such funds but instead provides that the legislature may appropriate such funds.
MINIMUM FOUNDATION PROGRAM (MFP)
Present constitution, relative to projected deficits in the current year, authorizes adjustments
to constitutionally protected or mandated allocations or appropriations, not to exceed 5% of
the total appropriation or allocation, if there is a projected deficit in the current fiscal year.
Further restricts the reduction of expenditures for the MFP. Reductions shall not exceed 1%
and shall not be applicable to instructional activities.
Present constitution, relative to projected deficits in future years, authorizes constitutionally
protected or mandated allocations or appropriations, not to exceed 5% of the total
appropriation or allocation for the current fiscal year, to be used for purposes other than
those established by law or constitution, to avoid a budget deficit if recurring revenues are
expected to decrease. Further restricts the reduction of expenditures for the MFP.
Reductions shall not exceed 1% of current year expenditures.
Proposed constitutional amendment deletes the restrictions in present constitution relative
to projected deficits regarding the MFP.
Present constitution requires BESE to annually develop and adopt a formula to determine
the cost of a minimum foundation program for all public elementary and secondary schools
as well as to equitably allocate the funds to parish and city school systems. Present
constitution requires the legislature to appropriate sufficient funds to fully fund the current
state cost to the state of a program of the MFP by applying the approved formula to insure
a minimum foundation of education in all public elementary and secondary schools.
Proposed constitutional amendment provides that BESE shall develop and adopt a formula
as provided by law and deletes the requirement that funds be sufficient to fully fund the cost
of the program. Retains present constitution requirement that the program funding be
applied to insure a minimum foundation of education in all public elementary and secondary
schools.
Present constitution requires that, whenever the legislature fails to approve the formula most
recently adopted by BESE, the last formula adopted by BESE and approved by the HLS 14RS-605 ORIGINAL
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legislature be used for determination of the cost of the MFP and for the allocation of
appropriated funds.
Proposed constitutional amendment deletes the requirement that the last formula be used to
determine the cost of the MFP but retains the requirement that the last formula be used to
determine the allocation of appropriated funds.
Present constitution provides that the application of the approved formula is to insure a
minimum foundation of education in all public elementary and public schools.
Proposed constitutional amendment deletes present constitution and instead provides that
the application of the approved formula is to insure an equitable allocation of funds to parish
and city school systems.
Present constitution prohibits the governor or the legislature from reducing the appropriation
for the MFP, except that the governor may reduce the appropriation using means provided
in the act containing the appropriation, provided that the reduction is consented to in writing
by 2/3 of the elected members of each house of the legislature.
Proposed constitutional amendment deletes present constitution.
COASTAL PROTECTION AND RESTORATION FUND
Present constitution establishes the Coastal Protection and Restoration Fund in the state
treasury. Requires that certain mineral revenues from severance taxes, royalty payments,
bonus payments, or rentals be deposited into the Coastal Protection and Restoration Fund.
Present constitutional requires the following mineral revenues (net mineral revenues), after
deposits into the Bond Security Redemption Fund, payments to the political subdivisions of
the state of severance tax and royalty payments, and the Conservation Fund, be deposited
into the Coastal Protection and Restoration Fund:
(1)$5 million of net mineral revenues.
(2)$10 million of net mineral revenues in excess of $600 million.
(3)$10 million of net mineral revenues in excess of $650 million.
Present constitution prohibits the balance in the Coastal Protection and Restoration Fund
which consists of mineral revenues from severance taxes, royalty payments, bonus
payments, or rentals, from exceeding an amount provided by law, but in no event shall the
amount be less than $500 million.
Proposed constitutional amendment deletes the requirements that net mineral revenues be
deposited into the Coastal Protection and Restoration Fund but retains the limit on the
balance in the Coastal Protection and Restoration Fund consisting of certain mineral
revenues.
TRANSPORTATION TRUST FUND
Present constitution establishes the Transportation Trust Fund (TTF) as a special permanent
trust fund in the state treasury. Present constitution requires that, after payment of certain
revenue bonds and credit to the Bond Security and Redemption Fund, remaining revenues
from all taxes levied on gasoline and motor fuels and on special fuels be deposited into the
TTF.
Proposed constitutional amendment retains present constitution through Fiscal Year 2014-
2015. For the fiscal year beginning on July 1, 2015, dedicates the avails of taxes levied on HLS 14RS-605 ORIGINAL
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gasoline, motor fuels, and on special fuels necessary to satisfy revenues pledged for debt
service on Jan. 1, 2015, and the avails of other taxes levied on gasoline, motor fuels, and on
special fuels as provided by law.
Present constitution requires that no less than the avails of one cent of the tax on gasoline
and special fuels be appropriated each year to the Parish Transportation Fund, or its
successor.
Proposed constitutional amendment deletes present constitution.
Present constitution requires the annual appropriation for airports to be equal to the annual
estimated revenue to be derived from the state taxes to be collected and received on aviation
fuel.
Proposed constitutional amendment deletes present constitution.
LOTTERY PROCEEDS FUND
Present constitution requires that the net proceeds from the operation of the lottery be
deposited in a special treasury fund entitled the Lottery Proceeds Fund. Amounts deposited
in the fund shall not be appropriated for expenditure in the same calendar year in which they
are received.
Proposed constitutional amendment retains present constitution.
Present constitution requires the legislature to appropriate monies from the Lottery Proceeds
Fund annually but only for the purposes of the MFP and no more than $500,000 for services
related to compulsive and problem gaming as provided by law.
Proposed constitutional amendment deletes the requirement that funds may only be
appropriated for the MFP and services related to compulsive and problem gaming but retains
the requirement that the legislature annually appropriate funds as provided by law.
Provides for submission of the proposed amendment to the voters at the statewide election
to be held Nov. 4, 2014.
(Amends Art. VII, §§10(D)(3) and (F)(2), 10.2(B), and 27(A) and (B), Art. VIII, §13(A) and
(B), and Art. XII, §6(A)(1))