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. 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))