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Prepared by Jay Lueckel.
St. Germain HB No. 629
(KEYWORD, SUMMARY, AND DIGEST as amended by Senate committee
amendments)
FUNDS/FUNDING. (Constitutional Amendment) Provides for the deposit of revenues
into the Transportation Trust Fund
DIGEST
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 10 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.
Proposed constitutional amendment changes the name of the Budget Stabilization Fund to
the Budget and Transportation Stabilization Fund and provides for the purposes and uses of
monies in the fund.
Proposed constitutional amendment creates the Budget Stabilization Account and the
Transportation Stabilization Account in the Budget and Transportation Stabilization Fund
and provides for allocations of mineral revenues to the accounts and uses of monies in the
accounts.
Proposed constitutional amendment relative to the Budget Stabilization Account, provides
that revenues shall be deposited as follows: in FY2015, until the balance equals $470
million; in FY2016, until the balance equals $495 million; in FY2017, until the balance
equals $520 million; in FY2018, and thereafter, until the balance equals $600 million which
shall be annually adjusted for inflation pursuant to an inflation factor as determined by the
Revenue Estimating Conference beginning in FY2019.
Proposed constitutional amendment provides that revenues shall be deposited to the
Transportation Stabilization Account, after the balance of the Budget Stabilization Account
reaches $600 million, as follows: in FY2018, an amount not to exceed $100 million; no
deposits in FY2019; in FY2020 and each fiscal year thereafter, deposits shall be made not
to exceed $50 million until the amount of $500 million dollars is deposited into the
Transportation Stabilization Account. Monies in the account shall be used as provided by
the Transportation Trust Fund Section of the constitution. Page 2 of 3
Prepared by Jay Lueckel.
Further provides that if at any time mineral revenues exceed the base in the Budget and
Transportation Stabilization Fund and monies in the fund are made available for
appropriations or use as authorized by law, no deposit shall be made in the fiscal year for
which money in the fund is appropriated or incorporated into the official forecast or in the
ensuing year, except by specific legislative appropriation.
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 retains present constitution and also provides, beginning
in FY19 and each fiscal year thereafter, for a transfer not to exceed $50 million of monies
from the Transportation Stabilization Account in the Budget and Transportation Stabilization
Fund to the Transportation Trust Fund to be used in the same manner as other monies in the
fund except that if an infrastructure bank is established by law, then such monies shall be
used for capitalization of the bank.
Directs the state treasurer, upon the effective date of the proposition, to transfer any
unexpended, unencumbered balance in the Budget Stabilization fund, including interest and
principal, to the Budget and Transportation Stabilization Fund as provided by the
constitutional amendment.
Provides for submission of the proposed amendment to the voters at the statewide election
to be held November 4, 2014.
(Amends Const Art. VII, Section 10.3(A)(2)(a)(intro para) and ArticleVII, Section 27(A);
Adds Article VII, Section 10.2(A)(2)(c) and (C)(5))
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Appropriations to the
original bill.
1. Changed beginning date of the ten-year period for deposits into the TTF from
July 1, 2015, to July 1, 2017, and the end date from June 30, 2025, to June 30,
2027.
Committee Amendments Proposed by House Committee on Civil Law and Procedure to
the engrossed bill.
1. Added language to the ballot language to specify the use of the excess mineral
revenues to capitalize a state infrastructure bank.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Finance to the re-
reengrossed bill
1. Changes the name of the Budget Stabilization Fund to the Budget and
Transportation Stabilization Fund and provides for the purposes and uses of
monies in the fund.
2. Creates the Budget Stabilization Account and the Transportation Stabilization
Account in the Budget and Transportation Stabilization Fund and provides for
allocations of monies to the accounts and uses of monies in the accounts.
3. Relative to the Budget Stabilization Account, provides that revenues shall be
deposited as follows: in FY2015, until the balance equals $470 million; in Page 3 of 3
Prepared by Jay Lueckel.
FY2016, until the balance equals $495 million; in FY2017, until the balance
equals $520 million; in FY2018, and thereafter, until the balance equals $600
million - to be annually adjusted for inflation pursuant to a factor as determined
by the Revenue Estimating Conference beginning in FY2019.
4. Provides that revenues shall be deposited in the Transportation Stabilization
Account after the balance of the Budget Stabilization Account reaches $600
million, as follows: in FY2018, an amount not to exceed $100 million; no
deposits in FY2019; in FY2020 and each fiscal year thereafter, deposits shall be
made not to exceed $50 million until the amount of $500 million dollars is
deposited into the Transportation Stabilization Account. Monies in the account
shall be used as provided by the Transportation Trust Fund Section of the
constitution.
5. Provides that if at any time mineral revenues exceed the base in the Budget and
Transportation Stabilization Fund and monies in the fund are made available for
appropriations or use as authorized by law, no deposit shall be made in the fiscal
year for which money in the fund is appropriated or incorporated into the official
forecast or in the ensuing year, except by specific legislative appropriation.
6. Deletes provisions relative to taking the first $50 million of mineral revenues in
excess of the base amount of such monies as defined in the existing Budget
Stabilization Fund for use in the Transportation Trust Fund for capitalization of
the infrastructure bank.
7. Provides, beginning in FY19 and each fiscal year thereafter, for a transfer not to
exceed $50 million of monies from the Transportation Stabilization Account in
the Budget and Transportation Stabilization Fund to the Transportation Trust
Fund to be used in the same manner as other monies in the fund except that if an
infrastructure bank is established by law, then such monies shall be used for
capitalization of the bank.
8. Directs the state treasurer, upon the effective date of the proposition, to transfer
any unexpended, unencumbered balance in the Budget Stabilization fund,
including interest and principal, to the Budget and Transportation Stabilization
Fund as provided by the constitutional amendment.
9. Previses ballot language.