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Regular Session, 2014
HOUSE BILL NO. 629
BY REPRESENTATIVE ST. GERMAIN
FUNDS/FUNDING: (Constitutional Amendment) Provides for the deposit of certain
mineral revenues into the Transportation Trust Fund rather than the Budget
Stabilization Fund
A JOINT RESOLUTION1
Proposing to amend Article VII, Section 27(A) and to add Article VII, Section2
10.3(A)(2)(a)(iv) of the Constitution of Louisiana, to provide with respect to special3
treasury funds; to provide for the deposit of certain excess mineral revenues into the4
Transportation Trust Fund; to provide for the use of monies deposited into the fund;5
to provide for submission of the proposed amendment to the electors; and to provide6
for related matters.7
Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members8
elected to each house concurring, that there shall be submitted to the electors of the state of9
Louisiana, for their approval or rejection in the manner provided by law, a proposal to10
amend Article VII, Section 27(A) and to add Article VII, Section 10.3(A)(2)(a)(iv) of the11
Constitution of Louisiana, to read as follows:12
§10.3. Budget Stabilization Fund13
Section 10.3.(A) There is hereby established in the state treasury a Budget14
Stabilization Fund hereinafter referred to as the fund. Money shall be deposited in15
the fund as follows:16
* * *17
(2)(a) All revenues received in each fiscal year by the state in excess of18
seven hundred fifty million dollars, hereinafter referred to as the base, as a result of19 HLS 14RS-1197 ORIGINAL
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the production of or exploration for minerals, hereinafter referred to as mineral1
revenues, including severance taxes, royalty payments, bonus payments, or rentals,2
and excluding such revenues designated as nonrecurring pursuant to Article VII,3
Section 10(B) of the constitution, any such revenues received by the state as a result4
of grants or donations when the terms or conditions thereof require otherwise, and5
revenues derived from any tax on the transportation of minerals, shall be deposited6
in the fund after the following allocations of said mineral revenues have been made:7
* * *8
(iv) To the Transportation Trust Fund as provided by Article VII, Section9
27(A)(2) of this constitution.10
* * *11
§27. Transportation Trust Fund 12
Section 27.(A) Creation of fund. (1) Effective January 1, 1990, there shall13
be established in the state treasury as a special permanent trust fund the14
Transportation Trust Fund ("the trust fund") in which shall be deposited the "excess15
revenues" as defined herein which are a portion of the avails received in each year16
from all taxes levied on gasoline and motor fuels and on special fuels (said avails17
being referred to as the "revenues") as provided herein. After satisfying pledges18
respecting that portion of the revenues attributable to the tax rates in effect at the19
time of such pledges for the payment of obligations for bonds or other evidences of20
indebtedness on the effective date of this Section, the treasurer shall allocate such21
portion of the revenues received in each year as necessary to pay all principal,22
interest, premium, if any, and other obligations incident to the issuance, security, and23
payment in respect of bonds as authorized in Paragraph (C) hereof. Thereafter, the24
portion of the revenues remaining shall be deposited in the Bond Security and25
Redemption Fund in the state treasury. After (1) (a) the payment of any obligations26
for bonds or other evidences of indebtedness in existence on the effective date of this27
Section which are secured by revenues; (2) (b) payments in respect of bonds28
authorized in Paragraph (C) hereof; and (3) (c) credit to the Bond Security and29 HLS 14RS-1197 ORIGINAL
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Redemption Fund, the treasurer shall deposit in and credit to the trust fund all of the1
revenues remaining (the "excess revenues") from the avails of all taxes levied on2
gasoline and motor fuels and on special fuels, as follows: for the fiscal year3
beginning July 1, 1989, the avails of twelve cents per gallon of said taxes received4
on and after January 1, 1990; for the fiscal year beginning on July 1, 1990, the avails5
of fourteen cents per gallon of said taxes; for the fiscal year beginning on July 1,6
1991, and thereafter, the avails of all taxes levied on gasoline and motor fuels and7
on special fuels. Purchases of gasoline, diesel fuel, or special fuels which are subject8
to excise tax under Chapter 7 of Subtitle II of Title 47 of the Louisiana Revised9
Statutes of 1950 shall be exempt from the state sales tax and any sales tax levied by10
a political subdivision as defined by Article VI, Section 44(2). All monies11
appropriated by the Federal Highway Administration and the Federal Aviation12
Administration, or their successors, either reimbursed or paid directly, shall be paid13
directly or deposited in and credited to the trust fund.14
(2)(a) Beginning in the fiscal year that starts July 1, 2015, and for each fiscal15
year thereafter, until the end of the fiscal year which ends June 30, 2025, the first16
fifty million dollars of mineral revenues in excess of the base amount of such17
revenues as defined in Article VII, Section 10.3(A)(2) of this constitution, including18
severance taxes, royalty payments, bonus payments, or rentals, and excluding such19
revenues designated as nonrecurring pursuant to Article VII, Section 10(B) of the20
constitution, any such revenues received by the state as a result of grants or21
donations when the terms or conditions thereof require otherwise, and revenues22
derived from any tax on the transportation of minerals, shall be deposited in the fund23
after the following allocations of said mineral revenues have been made:24
(i) To the Bond Security and Redemption Fund as provided by Article VII,25
Section 9 (B) of this constitution.26
(ii) To the political subdivisions of the state as provided in Article VII,27
Sections 4 (D) and (E) of this constitution.28 HLS 14RS-1197 ORIGINAL
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(iii) As provided by the requirements of Article VII, Section 10-A and 10.11
of this constitution.2
(b) Moines deposited into the fund pursuant to the provisions of3
Subsubparagraph (a) of this Subparagraph may be expended in the same manner as4
all other monies deposited into the fund, with the exception that if a state5
infrastructure bank is established by law then all such monies shall be used for6
capitalization of the bank.7
* * *8
Section 2. Be it further resolved that this proposed amendment shall be submitted9
to the electors of the state of Louisiana at the statewide election to be held on November 4,10
2014.11
Section 3. Be it further resolved that on the official ballot to be used at the election,12
there shall be printed a proposition, upon which the electors of the state shall be permitted13
to vote YES or NO, to amend the Constitution of Louisiana, which proposition shall read as14
follows:15
Do you support an amendment to provide for the annual deposit of certain16
available excess mineral revenues into the Transportation Trust Fund instead17
of the Budget Stabilization Fund beginning January 1, 2015 and ending June18
30, 2025. (Amends Article VII, Section 27(A) and adds Article VII, Section19
10.3(A)(2)(a)(iv))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)]
St. Germain HB No. 629
Abstract: Provides for the annual deposit of $50 million of excess mineral revenues into
the Transportation Trust Fund for ten years beginning July 1, 2015 rather than
deposit into the Budget Stabilization Fund.
Present constitution establishes the Budget Stabilization Fund and requires the deposit of
mineral revenues in excess of $750 million ("base amount") which are derived from the
production of or exploration for minerals ("mineral revenue"), including severance taxes,
royalty payments, bonus payments, or rentals, and excluding revenues designated as
nonrecurring pursuant to Article VII, Section 10(B) of the constitution, revenues received HLS 14RS-1197 ORIGINAL
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by the state as a result of grants or donations when the terms or conditions of the grant
require otherwise, and revenues derived from any tax on the transportation of minerals, such
deposit to be made after the following allocations of said mineral revenues have been made:
(1)To the Bond Security and Redemption Fund as provided by Article VII, Section 9
(B) of present constitution.
(2)To the political subdivisions of the state as provided in Article VII, Sections 4 (D)
and (E) of present constitution.
(3)As provided by the requirements of Article VII, Section 10-A and 10.1 of present
constitution.
Present constitution authorizes an increase in the base amount for deposits into the Budget
Stabilization Fund every ten years beginning in 2000 by a law enacted by two-thirds of the
elected members of each house of the legislature. Present law provides that the base amount
is $850 million.
Present constitution provides that monies in the Budget Stabilization Fund are available
exclusively for use in the case of an existing or projected budget deficit.
Present constitution establishes the Transportation Trust Fund ("TTF") as a special treasury
fund into which the proceeds of the state tax on gasoline and other fuels is deposited.
Monies in the TTF are used for support of the state's highway priority program administered
by the Dept. of Transportation and Development.
Proposed constitutional amendment requires the first $50 million of excess mineral revenues
above the base amount established in present constitution for the Budget Stabilization Fund
to be deposited into the TTF instead of the Budget Stabilization Fund. The deposit would
be made each year beginning July 1, 2015 and end in the fiscal year that ends June 30, 2025.
Proposed constitutional amendment provides that monies deposited into the TTF pursuant
to proposed constitutional amendment shall be used in the same manner as all other monies
in the TTF, except if a state infrastructure bank is established by law, then such monies shall
be used to capitalize the bank.
Provides for submission of the proposed amendment to the voters at the statewide election
to be held November 4, 2014.
((Amends Section 27(A); Adds Article VII, Section 10.3(A)(2)(a)(iv)))