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 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)))