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Regular Session, 2014
HOUSE BILL NO. 884
BY REPRESENTATIVE ST. GERMAIN
FUNDS/FUNDING: Provides with regard to dedications of certain excess mineral revenues
and deposits into the Budget Stabilization Fund
AN ACT1
To enact R.S. 39:94(A)(2)(a)(iv), relative to special treasury funds; to provide with respect2
to deposits into the Budget Stabilization Fund; to provide for effectiveness; and to3
provide for related matters.4
Be it enacted by the Legislature of Louisiana:5
Section 1. R.S. 39:94(A)(2)(a)(iv) is hereby enacted to read as follows: 6
ยง94. Budget Stabilization Fund7
A. There is hereby created in the state treasury a special fund to be8
designated as the Budget Stabilization Fund, hereafter referred to in this Section as9
the "fund", which shall consist of all money deposited into the fund in accordance10
with Article VII, Section 10.3 of the Constitution of Louisiana. Money shall be11
deposited in the fund as follows:12
* * *13
(2)(a) All revenues received in each fiscal year by the state in excess of eight14
hundred fifty million dollars, hereinafter referred to as the "base", as a result of the15
production of or exploration for minerals, hereinafter referred to as "mineral16
revenues", including severance taxes, royalty payments, bonus payments, or rentals,17
and excluding such revenues designated as nonrecurring pursuant to Article VII,18
Section 10(B) of the Constitution of Louisiana, any such revenues received by the19
state as a result of grants or donations when the terms or conditions thereof require20 HLS 14RS-1284 ENGROSSED
HB NO. 884
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otherwise and revenues derived from any tax on the transportation of minerals, shall1
be deposited in the fund after the following allocations of said mineral revenues have2
been made:3
* * *4
(iv) To the Transportation Trust Fund as provided by Article VII, Section5
27(A)(2) of the Constitution of Louisiana.6
* * *7
Section 2. This Act shall take effect and become operative if and when the proposed8
amendment of Article VII, Sections 10.3 and 27 of the Constitution of Louisiana contained9
in the Act which originated as House Bill No. 628 of this 2014 Regular Session of the10
Legislature is adopted at a statewide election and becomes effective.11
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. 884
Abstract: Adds a deposit into the Transportation Trust Fund to the list of dedications of
excess mineral revenues that must occur before the balance of such revenues are
deposited into the Budget Stabilization Fund.
Present constitution and present law establish the Budget Stabilization Fund and requires the
deposit of mineral revenues in excess of $750 million (base amount) 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. HLS 14RS-1284 ENGROSSED
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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 and present law provide 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 law requires the first $50 million of excess mineral revenues above the base
amount established in present law and present constitution for the Budget Stabilization Fund
be deposited into the TTF before the balance of such revenues is deposited into 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.
Effective if and when the proposed amendment of Article VII of the Constitution of La.
contained in the Act which originated as House Bill No. 628 of this 2014 R.S. is adopted at
a statewide election and becomes effective.
(Adds R.S. 39:94(A)(2)(a)(iv))