HLS 14RS-49 ORIGINAL
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Regular Session, 2014
HOUSE BILL NO. 598
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 HLS 14RS-49 ORIGINAL
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state treasury from the avails of the franchise fees charged pursuant to R.S.1
27:91(C)(2) through (4) and the revenues required to be deposited in the SELF Fund2
pursuant to R.S. 27:92(B)(2)(b) and R.S. 27:270(A)(3) , R.S. 39:98.3(D), and Article3
VII, Section 10.8(C)(4)(a)(iii) of the Constitution of Louisiana. The monies in this4
fund shall be used only as provided in Subsection B of this Section and only in the5
amounts appropriated by the legislature. All unexpended and unencumbered monies6
in this fund at the end of each fiscal year shall remain in the fund and shall retain7
their allocation for use and expenditure in accordance with the provisions of8
Subsection B of this Section. The monies in this fund shall be invested by the state9
treasurer in the same manner as monies in the state general fund. Interest earned on10
the investment of monies in this fund shall be credited to the fund, following11
compliance with the requirements of Article VII, Section 9(B) of the Constitution of12
Louisiana relative to the Bond Security and Redemption Fund.13
* * *14
Section 2. R.S. 27:247 is hereby amended and reenacted and R.S. 27:270.1 is hereby15
enacted to read as follows: 16
§247. Casino support services contract17
Subject to and in accordance with the provisions of this Chapter, the gaming18
control board shall enter into a casino support services contract with the governing19
authority of the parish where the official gaming establishment is located in order to20
compensate the parish for the cost to the parish for providing support services21
resulting from the operation of the official gaming establishment and the activities22
therein. Support services as used in this Section shall include but not be limited to23
fire, police, sanitation, health, transportation, and traffic services. The amount of the24
contract shall be determined by negotiation and agreement between the gaming25
control board and the parish, subject to approval by the Joint Legislative Committee26
on the Budget. In the event that a new contract is not agreed upon by the gaming27
control board and the parish by March thirty-first of any year, the contract currently28
in effect shall be submitted to the Joint Legislative Committee on the Budget for29 HLS 14RS-49 ORIGINAL
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approval of the amount of the contract at the next meeting of the committee. If the1
committee approves the amount of the contract, the contract shall remain in full force2
and effect. If the committee disapproves or does not act upon the amount of the3
contract, the contract shall be null, void, and of no effect. Obligations of the state4
required under the contract shall be paid from funds appropriated out of the5
Education Excellence Fund-Casino Support Services Account as provided in Article6
VII, Section 10.8(C)(4)(a)(i) of the Constitution of Louisiana and R.S. 39:98.3(D).7
* * *8
§270.1. Revenues from casino gaming operations; operation of the official gaming9
establishment located in Orleans Parish10
Notwithstanding any other provision of law to the contrary, monies received11
by the state from the operation of the official gaming establishment located in12
Orleans Parish shall be deposited into the state treasury in accordance with the13
provisions of Article VII, Sections 9(B) and 10.8(A)(3)(b) of the Constitution of14
Louisiana and R.S. 39:98.1(C)(2). Monies shall be deposited in and credited to the15
Education Excellence Fund-Casino Support Services Account, and the disposition16
and appropriation of monies from the account shall be made in accordance with the17
provisions of Article VII, Section 10.8(C)(4) of the Constitution of Louisiana and18
R.S. 39:98.3(D).19
Section 3. R.S. 39:98.1(C), 98.2(E), and 98.3(A)(1) and (4), and (C)(introductory20
paragraph), (1), (5), (7), and (8), (D), and (E) are hereby amended and reenacted and R.S.21
39:98.3(F) and (G) are hereby enacted to read as follows:22
§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 14RS-49 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 HLS 14RS-49 ORIGINAL
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(4) Upon the effective date of this Subsection, the state treasurer shall1
deposit, transfer, or otherwise credit funds in an amount equal to unencumbered2
monies deposited in and credited to the Education Excellence Fund to the Education3
Excellence Fund-Permanent Account.4
* * *5
§98.2. Investment of Millennium Trust6
* * *7
E. On or before December first of each year, the treasurer shall prepare and8
submit a report on the performance of the Millennium Trust to the Joint Legislative9
Committee on the Budget and the commissioner of administration for their review.10
With respect to the Education Excellence Fund-Permanent Account, the report shall11
also be provided to the state superintendent of education.12
§98.3. Appropriations from the Health Excellence Fund, the Education Excellence13
Fund, and the TOPS Fund14
A.(1) Appropriations from the Education Excellence Fund-Permanent15
Account shall be limited to an annual amount not to exceed the estimated aggregate16
annual earnings from interest, dividends, and realized capital gains on investment of17
the Millennium Trust allocated as provided by R.S. 39:98.1(B) and (C) as recognized18
by the Revenue Estimating Conference. Amounts determined to be available for19
appropriation shall be those aggregate investment earnings which are in excess of an20
inflation factor as determined by the Revenue Estimating Conference. The amount21
of estimated aggregate investment earnings available for appropriation shall be22
determined by subtracting the product of the inflation factor multiplied by the23
amount of aggregate investment earnings for the previous fiscal year from the24
amount of such estimated aggregate investment earnings. The amount of realized25
capital gains on investment which may be included in the aggregate earnings26
available for appropriation from the Millennium Trust in any fiscal year shall not27
exceed the aggregate of earnings from interest and dividends for that year.28
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(4) Actual earnings from interest, dividends, and capital gains during the1
fiscal year in excess of the amounts estimated as available for appropriation shall be2
credited to the appropriate fund and available for appropriation in subsequent years.3
Appropriations from the Health Excellence Fund, the Education Excellence Fund-4
Permanent Account, and the TOPS Fund shall include performance expectations to5
ensure accountability in the expenditure of such monies.6
* * *7
C. Appropriations from the Education Excellence Fund-Permanent Account8
shall be restricted as follows:9
(1) Fifteen percent of monies available for appropriation in any fiscal year10
from the Education Excellence Fund Permanent Account shall be appropriated to the11
state superintendent of education for distribution on behalf of all children attending12
private elementary and secondary schools that have been approved by the State13
Board of Elementary and Secondary Education, both academically and as required14
for such school to receive money from the state.15
* * *16
(5) Beginning Fiscal Year 2007-2008 and for each year thereafter, of the17
monies available for appropriation after providing for the purposes enumerated in18
Paragraphs (1), (2), and (3) of this Subsection, one hundred percent of the monies19
available for appropriation in any fiscal year from the Education Excellence Fund20
Permanent Account shall be distributed to each city, parish, or other local school21
system, to be apportioned to the recipient entities on a pro rata basis which is based22
on the ratio of the student population of that school or school system to that of the23
total state student population.24
* * *25
(7) Each recipient school or school system shall annually prepare and submit26
to the state Department of Education, hereinafter the "department", a prioritized plan27
for expenditure of funds it expects to receive in the coming year from the Education28
Excellence Fund Permanent Account. The plan shall include performance29 HLS 14RS-49 ORIGINAL
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expectations to ensure accountability in the expenditure of such monies. The1
department shall review such plans for compliance with the requirements of this2
Subsection and to assure that the expenditure plans will support excellence in3
educational practice. No funds may be distributed to any school system until its plan4
has been approved by the department and by the appropriate standing committees of5
the legislature.6
(8) No amount appropriated as required in this Subsection shall displace,7
replace, or supplant appropriations from the general fund for elementary and8
secondary education, including implementing the Minimum Foundation Program.9
This Paragraph shall mean that no appropriation for any fiscal year from the10
Education Excellence Fund Permanent Account shall be made for any purpose for11
which a general fund appropriation was made the previous year unless the total12
appropriations for the fiscal year from the state general fund for such purpose13
exceeds general fund appropriations of the previous year. Nor shall any money14
allocated to a city or parish school board pursuant to this Section displace, replace,15
or supplant locally generated revenue, meaning that no allocation to any city or16
parish school board from the investment earnings attributable to the Education17
Excellence Fund Permanent Account shall be expended for any purpose for which18
a local revenue source was expended the previous fiscal year unless the total of the19
local revenue amount expended that fiscal year exceeds the total of such local20
revenue amounts for the previous year.21
* * *22
D. The disposition and appropriation of monies from the Education23
Excellence Fund-Casino Support Services Account shall be made in accordance with24
the provisions of this Subsection. Of the total monies deposited into the account25
each fiscal year:26
(1) An amount equal to the revenues received by the state in Fiscal Year27
2013-2014 under the contract to operate the official gaming establishment located28
in Orleans Parish shall be available for appropriation for the following purposes:29 HLS 14RS-49 ORIGINAL
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(a) First, monies may be appropriated in an amount sufficient to satisfy any1
state obligation pursuant to a casino support services contract for purposes of the2
official gaming establishment located in Orleans Parish as may be provided by law.3
(b) Of the monies remaining thereafter, up to one percent may be4
appropriated for services related to compulsive and problem gaming as provided by5
law.6
(c) Of the monies remaining thereafter, appropriations may be made for the7
support of salaries of public pre-kindergarten through twelfth grade certificated8
personnel and public postsecondary education faculty as provided in R.S. 17:421.7.9
(2) All monies remaining thereafter shall be deposited in and credited to the10
Education Excellence Fund-Early Childhood Development Account.11
(3) Changes to the purposes for and limitations on appropriations and12
transfers of money from the Casino Support Services Account as provided for in this13
Subsection may be authorized for a specific fiscal year by a favorable vote of two-14
thirds of the elected members of each house. Any such change shall be approved by15
passage of a specific legislative instrument which clearly states the intent to change16
a purpose or limitation on an appropriation or required transfer of money. The17
legislative instrument may be considered in any regular session of the legislature and18
shall only be considered in the fiscal year preceding the fiscal year for which the19
change is proposed.20
E. Appropriations from the Education Excellence Fund-Early Childhood21
Development Account shall be restricted to the support of early childhood22
development and education services as may be provided by law. 23
F. Appropriations from the TOPS Fund shall be restricted to support of the24
state's program for financial assistance for students attending Louisiana institutions25
of postsecondary education as established in Chapter 20-G of Title 17 of the26
Louisiana Revised Statutes of 1950.27 HLS 14RS-49 ORIGINAL
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E. G. Recommendations and requests for expenditure or funding from the1
Health Excellence Fund and TOPS Fund shall be made in accordance with the2
provisions of R.S. 39:98.4(C) through (F).3
Section 4. This Act shall take effect and become operative if and when the proposed4
amendment of Article VII, Section 10.8 of the Constitution of Louisiana contained in the Act5
which originated as House Bill No. _____ of this 2014 Regular Session of the Legislature6
is adopted at a statewide election and becomes effective.7
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. 598
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 provided for in
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 parish's costs 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 (JLCB). 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 current contract shall
be submitted to JLCB for approval at the next meeting of the committee. If JLCB approves
the amount of the contract, the contract shall remain in full force and effect. If JLCB
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. HLS 14RS-49 ORIGINAL
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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.
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 2013-2014 under the contract to operate the official gaming establishment
located in Orleans Parish 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% 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 law requires all remaining monies 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
legislative instrument, considered during any regular session of the legislature that clearly
states the intent to change a purpose or limitation on an appropriation or required transfer
of money. The legislative 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 provided by present law. HLS 14RS-49 ORIGINAL
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Effective upon approval of the proposed constitutional amendment of Art. VII, §10.8 of the
Const. of La. in HB No. ___ of the 2014 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))