Provides for the distribution of the proceeds of the sale of tobacco assets
Impact
The bill will alter the distribution of funds from tobacco asset sales, specifically designating 80% of the remaining net proceeds to be directed towards the Supplemental TOPS Fund, which is newly created under this legislation. The previous system, which mandated that substantial portions be moved to broader state funds, is restructured to prioritize educational funding. Additionally, provisions are made to enforce the responsible allocation of these funds, thereby strengthening the fiscal framework surrounding educational financing in Louisiana.
Summary
House Bill 689 amends existing Louisiana law regarding the proceeds from the state's Master Settlement Agreement (MSA) with major tobacco manufacturers. The bill notably establishes the Supplemental TOPS Fund, where additional tobacco settlement proceeds will be deposited beyond the current allocation. The aim is to enhance financial support for students attending Louisiana postsecondary institutions, safeguarding funds crucial for educational assistance under the Louisiana Tuition Opportunity Program for Students (TOPS). This reform is designed to create a sustainable funding mechanism, ensuring that a significant portion of the proceeds is retained in future years for educational purposes.
Sentiment
The legislative sentiment surrounding HB 689 appears to be supportive among its proponents, who advocate for enhanced funding for education amid rising concerns over academic financing in Louisiana. Critics may express apprehension about the reliance on fluctuating tobacco settlement revenues, fearing potential instability in the long-term funding for essential educational programs. Overall, the discussions indicate a recognition of the necessity for such funding mechanisms, albeit with an understanding of the challenges posed by the inherent uncertainties in tobacco-related revenues.
Contention
Key points of contention arise regarding the distribution mechanics of the Supplemental TOPS Fund and the potential impact on other budgetary allocations. Lawmakers will need to ensure that funds directed toward the Supplemental TOPS Fund do not undermine the existing structures that support other vital state programs. Additionally, some stakeholders might question the efficacy of dependency on tobacco revenue in an era increasingly focused on public health, leading to broader implications on future funding models.
Provides that once the balance in the Millennium Trust reaches $1.38 billion, 100% of the annual Tobacco Settlement Proceeds shall be dedicated to the TOPS program. (See Act) (EN SEE FISC NOTE GF EX See Note)
Provides that once the balance in the Millennium Trust reaches $1.38 billion, 100% of the annual Tobacco Settlement Proceeds shall be dedicated to Health Excellence Fund initiatives. (See Act) (OR SEE FISC NOTE GF EX See Note)
Constitutional amendment to provide that once the balance in the Millennium Trust reaches $1.38 billion, 100% of the annual Tobacco Settlement Proceeds shall be dedicated to the TOPS program. (2/3 - CA13s1(A)) (EN SEE FISC NOTE GF EX See Note)
Constitutional amendment to provide that once the balance in the Millennium Trust reaches $1.38 billion, 100% of the annual Tobacco Settlement Proceeds shall be dedicated to Health Excellence Fund initiatives. (2/3 - CA13s1(A)) (OR SEE FISC NOTE GF EX See Note)
Constitutional amendment to provide for taxation of Internet and mail-order sales and to provide for dedication and distribution of the proceeds. (2/3-CA13s1(A)) (1/1/16)
(Constitutional Amendment) provides for the dedication of certain monies within the Millennium Trust for the TOPS program (RE SEE FISC NOTE GF EX See Note)
(Constitutional Amendment) Provides relative to the application of state monies to the unfunded accrued liability of the Teachers' Retirement System of La. (EN DECREASE SD RV See Note)
Establishes the La. First Hiring Act to promote the hiring of residents of La.'s coastal parishes for public works projects for coastal restoration and protection (EN NO IMPACT See Note)