HLS 15RS-1173 REENGROSSED
2015 Regular Session
HOUSE BILL NO. 562
BY REPRESENTATIVES HAVARD, BERTHELOT, STUART BISHOP, GEYMANN,
HARRIS, HARRISON, HENSGENS, JAY MORRIS, PEARSON, POPE,
RICHARD, SCHEXNAYDER, SCHRODER, AND TAL BOT
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
BUDGETARY CONTROLS: Requires the Revenue Estimating Conference to designate
certain general fund money from mineral revenue as restricted and prohibits
including such revenue in the executive budget
1 AN ACT
2To amend and reenact R.S. 39:34(A) and 38(A) and to enact R.S. 39:24(G), relative to state
3 funds; to require the Revenue Estimating Conference to include certain information
4 in the official forecast; to require the Revenue Estimating Conference to designate
5 certain money as restricted; to provide for the uses of certain money designated as
6 restricted; and to provide for related matters.
7Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 39:34(A) and 38(A) are hereby amended and reenacted and R.S.
939:24(G) is hereby enacted to read as follows:
10 §24. Official forecast
11 * * *
12 G.(1) The official forecast shall disclose the forecast price per barrel of oil
13 and the highest actual price per barrel of oil.
14 (2) If the forecast price per barrel of oil is greater than ninety percent of the
15 highest actual price per barrel of oil, the Revenue Estimating Conference shall
16 determine the revenues estimated to be available to the state general fund (direct)
17 based on the forecast price in excess of ninety percent of the highest actual price and,
18 in addition to designating such revenue as recurring or nonrecurring, shall designate
19 such revenues as restricted.
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1 (3) For purposes of this Section:
2 (a) "Forecast price per barrel of oil" means the price per barrel of oil used to
3 determine the amount of mineral revenues included in the official forecast.
4 (b) "Highest actual price per barrel of oil" means the highest actual price per
5 barrel of oil in the calendar year prior to the year in which the forecast is adopted or
6 revised.
7 * * *
8 §34. Executive budget
9 A. The governor shall cause to be prepared an executive budget presenting
10 a complete financial and programmatic plan for the ensuing fiscal year which shall
11 include recommendations for appropriations from the state general fund and
12 dedicated funds which shall not exceed the official forecast of the Revenue
13 Estimating Conference. Except as provided by R.S. 39:75(E), the executive budget
14 shall not include recommendations for appropriations from any fund in excess of the
15 official forecast of money available for appropriation from that fund. The executive
16 budget shall not include recommendations for appropriations from the state general
17 fund from the portion of the state general fund designated as restricted pursuant to
18 R.S. 39:24(G).
19 * * *
20 §38. Additional proposals
21 A.(1) Any proposals by the governor to enhance revenues for the ensuing
22 fiscal year beyond the official forecast shall be itemized and projected separately and
23 shall constitute a submission by the governor separate and apart from the
24 recommendations in the executive budget based on the official forecast as provided
25 in Article VII, Section 11(A) of the Constitution of Louisiana and under the
26 provisions of this Chapter. Any such submission shall include a description of the
27 proposed uses and programmatic impacts of the enhanced revenues.
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1 (2) Any proposals by the governor to appropriate revenues designated as
2 restricted pursuant to R.S. 39:24(G) shall be itemized and projected separately and
3 shall constitute a submission by the governor separate and apart from the
4 recommendations in the executive budget under the provisions of this Chapter. Any
5 such submission shall include a description of the proposed uses and programmatic
6 impacts of the restricted revenues.
7 * * *
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)]
HB 562 Reengrossed 2015 Regular Session Havard
Abstract: Requires the Revenue Estimating Conference to designate certain general fund
money from mineral revenue as restricted based on the projected price of oil and
requires proposals to appropriate such restricted revenue separate and apart from the
executive budget.
Proposed law requires the Revenue Estimating Conference (REC) to disclose in the official
forecast for each fiscal year the price per barrel of oil used to determine mineral revenues
in the official forecast (forecast price) and the highest actual price per barrel of oil in the
prior calendar year (highest actual price).
Proposed law requires the REC to designate revenues estimated to be available to the state
general fund (direct) based on the forecast price in excess of 90% of the highest actual price
as restricted.
Proposed law prohibits the governor from including recommendations for appropriations of
revenues designated as restricted in the executive budget. Further requires that proposals
to appropriate restricted revenues be separate and apart from the executive budget
recommendations.
(Amends R.S. 39:34(A) and 38(A); Adds R.S. 39:24(G))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Appropriations to the
original bill:
1. Add requirement that for the REC to designate certain revenues as nonrecurring
according to proposed law, the official forecast of recurring state revenues for the
fiscal year is equal to or more than the continuation budget for the same fiscal
year.
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The House Floor Amendments to the engrossed bill:
1. Delete the requirement that the official forecast of recurring state revenues for
the fiscal year be equal to or more than the continuation budget prior to REC's
designation of certain revenue as nonrecurring.
2. Change requirement that REC designate certain mineral revenues as
nonrecurring in favor of requiring REC to designate these revenues as restricted.
3. Delete the specification of how nonrecurring revenues shall be spent.
4. Prohibit the governor from including recommendations for appropriations from
restricted revenues in the Executive Budget. Requires the governor to submit
recommendations for these appropriations separate and apart from the executive
budget.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.