HLS 14RS-48 ORIGINAL
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Regular Session, 2014
HOUSE BILL NO. 595
BY REPRESENTATIVE ABRAMSON
FUNDS/FUNDING: (Constitutional Amendment) Provides for accounts within the
Education Excellence Fund and the deposit of certain gaming revenues into the fund
A JOINT RESOLUTION1
Proposing to amend Article VII, Section 10.8(A)(1)(d) and (3), (C)(1)(a), (3)(introductory2
paragraph), (a), (e), (g), and (h), and (4) and to add Article VII, Section 10.8(C)(5)3
and (6) of the Constitution of Louisiana, relative to special treasury funds; to4
establish and provide with respect to certain accounts within the Education5
Excellence Fund; to provide for the deposit and use of state gaming revenues into6
certain accounts; to provide for submission of the proposed amendment to the7
electors; and to provide for related matters.8
Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members9
elected to each house concurring, that there shall be submitted to the electors of the state of10
Louisiana, for their approval or rejection in the manner provided by law, a proposal to11
amend Article VII, Section 10.8(A)(1)(d) and (3), (C)(1)(a), (3)(introductory paragraph), (a),12
(e), (g), and (h), and (4) and to add Article VII, Section 10.8(C)(5) and (6) of the13
Constitution of Louisiana, to read as follows:14
§10.8. Millennium Trust15
Section 10.8. Millennium Trust16
(A) Creation17
(1)18
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(d) For Fiscal Year 2000-2001, Fiscal Year 2001-2002, and Fiscal Year1
2002-2003, ten percent of the total monies received in each of those years for credit2
to the Education Excellence Fund-Permanent Account which, notwithstanding the3
provisions of Subparagraph (C)(1) of this Section, shall be appropriated for the4
purposes provided in Subsubparagraph (d) of Subparagraph (3) of Paragraph (C) of5
this Section.6
* * *7
(3)(a) (3) The Education Excellence Fund shall be established as a special8
fund within the Millennium Trust. The treasurer shall credit to the Education9
Excellence Fund one-third of the Settlement Agreement proceeds deposited each10
year into the Millennium Trust, and one-third of all investment earnings on the11
investment of the Millennium Trust. The fund shall be comprised of three accounts:12
the Permanent Account, the Casino Support Services Account, and the Early13
Childhood Development Account.14
(a)(i) The Education Excellence Fund-Permanent Account shall be15
established as an account within the Education Excellence Fund. The treasurer shall16
report annually to the legislature and the state superintendent of education as to the17
amount of Millennium Trust investment earnings credited to the Education18
Excellence Fund Permanent Account.19
(b) (ii) Beginning Fiscal Year 2011-2012, and each fiscal year thereafter, the20
treasurer shall credit to the Education Excellence Fund Permanent Account, one-21
third of all investment earnings on the investment of the Millennium Trust. The22
treasurer shall report annually to the legislature and the state superintendent of23
education as to the amount of Millennium Trust investment earnings credited to the24
Education Excellence Fund Permanent Account.25
(b) The Education Excellence Fund-Casino Support Services Account shall26
be established as an account within the Education Excellence Fund. After satisfying27
the requirements of Article VII, Section 9(B) of this constitution, the state treasurer28
shall deposit in and credit to this account the monies received by the state under the29 HLS 14RS-48 ORIGINAL
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contract to operate the official gaming establishment located in Orleans Parish.1
Notwithstanding the provisions of Paragraph (B) of this Section, monies in the2
account shall be invested in the same manner as the state general fund and any3
earnings on such investment shall be deposited into the account. Any unexpended4
and unencumbered monies remaining in the account at the end of the fiscal year shall5
remain to the credit of the account.6
(c) The Education Excellence Fund-Early Childhood Development Account7
shall be established as an account within the Education Excellence Fund. The source8
of monies to be deposited into the account shall be those monies transferred from the9
Education Excellence Fund-Casino Support Services Account as provided in10
Subparagraph (4) of Paragraph (C) of this Section. Notwithstanding the provisions11
of Paragraph (B) of this Section, monies in the account shall be invested in the same12
manner as the state general fund and any earnings on such investment shall be13
deposited into the account. Any unexpended and unencumbered monies remaining14
in the account at the end of the fiscal year shall remain to the credit of the account.15
(d) Upon the effective date of this Subparagraph, the state treasurer shall16
deposit, transfer, or otherwise credit monies in an amount equal to unencumbered17
monies deposited in and credited to the Education Excellence Fund to the Education18
Excellence Fund-Permanent Account.19
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(C) Appropriations. (1)(a) Appropriations from the Education Excellence21
Fund-Permanent Account shall be limited to an annual amount not to exceed the22
estimated aggregate annual earnings from interest, dividends, and realized capital23
gains on investment of the trust allocated as provided by Paragraph (A) of this24
Section and as recognized by the Revenue Estimating Conference. Amounts25
determined to be available for appropriation shall be those aggregate investment26
earnings which are in excess of an inflation factor as determined by the Revenue27
Estimating Conference. The amount of realized capital gains on investment which28 HLS 14RS-48 ORIGINAL
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may be included in the aggregate earnings available for appropriation in any year1
shall not exceed the aggregate of earnings from interest and dividends for that year.2
* * *3
(3) Appropriations from the Education Excellence Fund-Permanent Account4
shall be limited as follows:5
(a) Fifteen percent of monies available for appropriation in any fiscal year6
from the Education Excellence Fund-Permanent Account shall be appropriated to the7
state superintendent of education for distribution on behalf of all children attending8
private elementary and secondary schools that have been approved by the State9
Board of Elementary and Secondary Education, both academically and as required10
for such school to receive money from the state.11
* * *12
(e) Beginning Fiscal Year 2007-2008 and for each fiscal year thereafter, of13
the monies available for appropriation from the Permanent Account after providing14
for the purposes enumerated in Subsubparagraphs (a), (b), and (c) of this15
Subparagraph, one hundred percent of the monies available for appropriation in any16
fiscal year shall be appropriated for each city, parish, and other local school system17
on a pro rata basis which is based on the ratio of the student population of that school18
or school system to that of the total state student population as contained in the most19
recent Minimum Foundation Program.20
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(g) Each recipient school or school system shall annually prepare and submit22
to the state Department of Education, hereinafter the "department", a prioritized plan23
for expenditure of funds it expects to receive in the coming year from the Education24
Excellence Fund Permanent Account. The plan shall include performance25
expectations to ensure accountability in the expenditure of such monies. The26
department shall review such plans for compliance with the requirements of this27
Subparagraph and to assure that the expenditure plans will support excellence in28
educational practice. No funds may be distributed to any school or school system29 HLS 14RS-48 ORIGINAL
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until its plan has received both legislative and departmental approval as provided by1
law.2
(h) No amount appropriated as required in this Paragraph shall displace,3
replace, or supplant appropriations from the general fund for elementary and4
secondary education, including implementing the Minimum Foundation Program.5
This Subsubparagraph shall mean that no appropriation for any fiscal year from the6
Education Excellence Fund Permanent Account shall be made for any purpose for7
which a general fund appropriation was made in the previous year unless the total8
appropriations for the fiscal year from the state general fund for such purpose exceed9
general fund appropriations of the previous year. Nor shall any money allocated to10
a city or parish school board pursuant to this Paragraph displace, replace, or supplant11
locally generated revenue, which means that no allocation to any city or parish12
school board from the investment earnings attributable to the Education Excellence13
Fund Permanent Account shall be expended for any purpose for which a local14
revenue source was expended for that purpose for the previous year unless the total15
of the local revenue amount expended that fiscal year exceeds the total of such local16
revenue amounts for the previous fiscal year.17
* * *18
(4) The disposition and appropriation of monies from the Education19
Excellence Fund-Casino Support Services Account shall be made in accordance with20
the provisions of this Subparagraph. Of the total monies deposited into the account21
each fiscal year:22
(a) An amount equal to the revenues received by the state in Fiscal Year23
2013-2014 under the contract to operate the official gaming establishment located24
in Orleans Parish shall be available for appropriation for the following purposes: 25
(i) First, monies may be appropriated in an amount sufficient to satisfy any26
state obligation required pursuant to a casino support services contract for purposes27
of the official gaming establishment located in Orleans Parish as may be provided28
by law.29 HLS 14RS-48 ORIGINAL
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(ii) Of the monies remaining thereafter, up to one percent may be1
appropriated for services related to compulsive and problem gaming as may be2
provided by law.3
(iii) Of the monies remaining thereafter, appropriations may be made for the4
support of salaries of public pre-kindergarten through twelfth grade certificated5
personnel and public post-secondary education faculty as may be provided by law.6
(b) Any amounts in excess of the amount set forth in Subsubparagraph (a)7
of this Subparagraph shall be deposited in and credited to the Education Excellence8
Fund-Early Childhood Development Account.9
(c) Changes to the purposes for and limitations on appropriations and the10
transfer of money from the Casino Support Services Account as provided for in this11
Subparagraph may be authorized for a specific fiscal year by a favorable vote of two-12
thirds of the elected members of each house. Any such change shall be approved by13
passage of a specific instrument which clearly states the intent to change a purpose14
or limitation on an appropriation or the transfer of money, and the instrument shall15
only be considered in the fiscal year preceding the fiscal year for which the change16
is proposed. Notwithstanding the provisions of Article III, Section 2 of this17
constitution, such law may be introduced and considered in any regular session of18
the legislature.19
(5) 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
(6) Appropriations from the TOPS Fund shall be restricted to support of state23
programs for financial assistance for students attending Louisiana institutions of24
postsecondary education.25
Section 2. Be it further resolved that this proposed amendment shall be submitted26
to the electors of the state of Louisiana at the statewide election to be held on November 4,27
2014.28 HLS 14RS-48 ORIGINAL
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Section 3. Be it further resolved that on the official ballot to be used at the election,1
there shall be printed a proposition, upon which the electors of the state shall be permitted2
to vote YES or NO, to amend the Constitution of Louisiana, which proposition shall read as3
follows:4
Do you support an amendment to establish separate accounts within the5
Educational Excellence Fund to provide for casino support services and early6
childhood development services and to provide for the deposit and use of7
monies in the fund? (Amends Article VII, Section 10.8(A)(1)(d) and (3),8
(C)(1)(a), (3)(introductory paragraph), (a), (e), (g), and (h), and (4); Adds9
Article VII, Section 10.8(C)(5) and (6))10
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. 595
Abstract: Establishes accounts within the Education Excellence Fund to provide for the
Casino Support Services Contract and early childhood development and education
services.
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 constitutional amendment retains present constitution and further establishes three
accounts in the Education Excellence Fund: the Permanent Account, the Casino Support
Services Account, and the Early Childhood Development Account.
Proposed constitutional amendment requires monies received by the state from the operation
of the official gaming establishment located in Orleans Parish be deposited into the
Education Excellence Fund-Casino Support Services Account created in proposed
constitutional amendment.
Proposed constitutional amendment further provides that the accounts 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 state monies 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. HLS 14RS-48 ORIGINAL
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Proposed constitutional amendment provides that upon the effective date of proposed
constitutional amendment, the state treasurer shall deposit, transfer, or otherwise credit any
unencumbered funds within the Education Excellence Fund to the Permanent Account.
Proposed constitutional amendment provides that the appropriation of monies from the
Education Excellence Fund-Casino Support Services Account shall be equal to the revenues
received by the state in FY 2013-2014 under the contract to operate the official gaming
establishment located in Orleans Parish, which monies shall be available for appropriation
for the following purposes:
(1)Satisfaction of any state obligation required pursuant to a casino support services
contract for purposes of the official gaming establishment located in Orleans Parish.
(2)1% percent for services related to compulsive and problem gaming.
(3)Of the monies remaining, appropriations may be made for the support of salaries of
public pre-kindergarten through 12th grade certificated personnel and public
postsecondary education faculty as provided in the SELF Fund.
Proposed constitutional amendment requires that all monies remaining thereafter from the
revenues received under the contract be deposited in and credited to the Education
Excellence Fund-Early Childhood Development Account.
Proposed constitutional amendment 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 constitutional amendment may be authorized for a specific fiscal
year by a favorable vote of 2/3 of the elected members of each house. Such a bill may be
introduced on any regular session of the legislature.
Proposed constitutional amendment 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
constitution.
Provides for submission of the proposed amendment to the voters at the statewide election
to be held Nov. 4, 2014.
(Amends Const. Art. VII, §10.8(A)(1)(d) and (3), (C)(1)(a), (3)(intro. para.), (a), (e), (g), and
(h), and (4); Adds Const. Art. VII, §10.8(C)(5) and (6))