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Regular Session, 2014
HOUSE BILL NO. 629
BY REPRESENTATIVE ST. GERMAIN
FUNDS/FUNDING: (Constitutional Amendment) Provides for the deposit of revenues
into the Transportation Trust 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
the production of or exploration for minerals, hereinafter referred to as mineral20 HLS 14RS-1197 RE-REENGROSSED
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revenues, including severance taxes, royalty payments, bonus payments, or rentals,1
and excluding such revenues designated as nonrecurring pursuant to Article VII,2
Section 10(B) of the constitution, any such revenues received by the state as a result3
of grants or donations when the terms or conditions thereof require otherwise, and4
revenues derived from any tax on the transportation of minerals, shall be deposited5
in the fund after the following allocations of said mineral revenues have been made:6
* * *7
(iv) To the Transportation Trust Fund as provided by Article VII, Section8
27(A)(2) of this constitution.9
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§27. Transportation Trust Fund 11
Section 27.(A) Creation of fund. (1) Effective January 1, 1990, there shall12
be established in the state treasury as a special permanent trust fund the13
Transportation Trust Fund ("the trust fund") in which shall be deposited the "excess14
revenues" as defined herein which are a portion of the avails received in each year15
from all taxes levied on gasoline and motor fuels and on special fuels (said avails16
being referred to as the "revenues") as provided herein. After satisfying pledges17
respecting that portion of the revenues attributable to the tax rates in effect at the18
time of such pledges for the payment of obligations for bonds or other evidences of19
indebtedness on the effective date of this Section, the treasurer shall allocate such20
portion of the revenues received in each year as necessary to pay all principal,21
interest, premium, if any, and other obligations incident to the issuance, security, and22
payment in respect of bonds as authorized in Paragraph (C) hereof. Thereafter, the23
portion of the revenues remaining shall be deposited in the Bond Security and24
Redemption Fund in the state treasury. After (1) (a) the payment of any obligations25
for bonds or other evidences of indebtedness in existence on the effective date of this26
Section which are secured by revenues; (2) (b) payments in respect of bonds27
authorized in Paragraph (C) hereof; and (3) (c) credit to the Bond Security and28
Redemption Fund, the treasurer shall deposit in and credit to the trust fund all of the29 HLS 14RS-1197 RE-REENGROSSED
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revenues remaining (the "excess revenues") from the avails of all taxes levied on1
gasoline and motor fuels and on special fuels, as follows: for the fiscal year2
beginning July 1, 1989, the avails of twelve cents per gallon of said taxes received3
on and after January 1, 1990; for the fiscal year beginning on July 1, 1990, the avails4
of fourteen cents per gallon of said taxes; for the fiscal year beginning on July 1,5
1991, and thereafter, the avails of all taxes levied on gasoline and motor fuels and6
on special fuels. Purchases of gasoline, diesel fuel, or special fuels which are subject7
to excise tax under Chapter 7 of Subtitle II of Title 47 of the Louisiana Revised8
Statutes of 1950 shall be exempt from the state sales tax and any sales tax levied by9
a political subdivision as defined by Article VI, Section 44(2) of this constitution.10
All monies appropriated by the Federal Highway Administration and the Federal11
Aviation Administration, or their successors, either reimbursed or paid directly, shall12
be paid directly or deposited in and credited to the trust fund.13
(2)(a) Beginning in the fiscal year that starts July 1, 2017, and for each fiscal14
year thereafter, until the end of the fiscal year which ends June 30, 2027, the first15
fifty million dollars of mineral revenues in excess of the base amount of such16
revenues as defined in Article VII, Section 10.3(A)(2) of this constitution, including17
severance taxes, royalty payments, bonus payments, or rentals, and excluding such18
revenues designated as nonrecurring pursuant to Article VII, Section 10(B) of the19
constitution, any such revenues received by the state as a result of grants or20
donations when the terms or conditions thereof require otherwise, and revenues21
derived from any tax on the transportation of minerals, shall be deposited in the fund22
after the following allocations of said mineral revenues have been made:23
(i) To the Bond Security and Redemption Fund as provided by Article VII,24
Section 9(B) of this constitution.25
(ii) To the political subdivisions of the state as provided in Article VII,26
Sections 4(D) and (E) of this constitution.27
(iii) As provided by the requirements of Article VII, Section 10-A and 10.128
of this constitution.29 HLS 14RS-1197 RE-REENGROSSED
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(b) Monies deposited into the fund pursuant to the provisions of1
Subsubparagraph (a) of this Subparagraph may be expended in the same manner as2
all other monies deposited into the fund, with the exception that if a state3
infrastructure bank is established by law then all such monies shall be used for4
capitalization of the bank.5
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Section 2. Be it further resolved that this proposed amendment shall be submitted7
to the electors of the state of Louisiana at the statewide election to be held on November 4,8
2014.9
Section 3. Be it further resolved that on the official ballot to be used at the election,10
there shall be printed a proposition, upon which the electors of the state shall be permitted11
to vote YES or NO, to amend the Constitution of Louisiana, which proposition shall read as12
follows:13
Do you support an amendment to provide for the annual deposit of certain14
available excess mineral revenues into the Transportation Trust Fund in order15
to capitalize a state infrastructure bank, if such a bank is established, instead16
of depositing the excess mineral revenues into the Budget Stabilization Fund17
beginning July 1, 2017, and ending June 30, 2027? (Amends Article VII,18
Section 27(A); Adds Article VII, Section 10.3(A)(2)(a)(iv))19
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, 2017, 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
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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.
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, 2017, and end in the fiscal year that ends June 30, 2027.
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 Const Art. VII, §27(A); Adds Const. Art. VII, §10.3(A)(2)(a)(iv))
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.