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2015 Regular Session
SENATE BILL NO. 196
BY SENATOR MORRELL
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
FUNDS/FUNDING. Constitutional amendment to repeal certain constitutionally dedicated
and protected allocations and funds. (2/3-CA13s1(A))
1 A JOINT RESOLUTION
2 Proposing to amend Article VII, Section 10(F)(2)(a) and (b) and (4)(d), Article VIII, Section
3 13(B), and Article XII, Section 6(A)(1) of the Constitution of Louisiana and to repeal
4 Article VII, Sections 4(D)(4)(b), 10(F)(4)(e), (f), and (g), 10-A, 10.1, 10.3, 10.4,
5 10.5, 10.6, 10.7, 10.8, 10.9, 10.10, 10.11, 10.12, 10.13, 10.14, and 26, and Article IX,
6 Sections 9 and 10, all relative to certain dedications of monies and special treasury
7 funds; to amend certain provisions relative to a projected deficit; to repeal or abolish
8 certain constitutional dedications or funds; to direct the state treasurer, after paying
9 any outstanding obligations associated with such dedications or funds, to deposit any
10 monies remaining after the abolition of such dedications or funds into the state
11 general fund; to provide for the disposition of any property or other assets associated
12 with dedications which are abolished or repealed; and to specify an election for
13 submission of the proposition to electors and provide a ballot proposition.
14 Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members
15 elected to each house concurring, that there shall be submitted to the electors of the state, for
16 their approval or rejection in the manner provided by law, a proposal to amend Article VII,
17 Section 10(F)(2)(a) and (b) and (4)(d) of the Constitution of Louisiana, to read as follows:
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1 §10. Expenditure of State Funds
2 Section 10.
3 * * *
4 (F) Projected Deficit.
5 * * *
6 (2)(a) Notwithstanding any other provision of this constitution to the
7 contrary, adjustments to any constitutionally protected or mandated allocations or
8 appropriations, and transfer of monies associated with such adjustments, are
9 authorized when state general fund allocations or appropriations have been reduced
10 in an aggregate amount equal to at least seven-tenths of one percent of the total of
11 such allocations and appropriations for a fiscal year. Such adjustments may not
12 exceed five percent of the total appropriation or allocation from a fund for the fiscal
13 year. For purposes of this Subsubparagraph, reductions to expenditures required by
14 Article VIII, Section 13(B) of this constitution shall not exceed one percent and such
15 reductions shall not be applicable to instructional activities included within the
16 meaning of instruction pursuant to the Minimum Foundation Program formula.
17 Notwithstanding any other provisions of this constitution to the contrary, monies
18 transferred as a result of such budget adjustments are deemed available for
19 appropriation and expenditure in the year of the transfer from one fund to another,
20 but in no event shall the aggregate amount of any transfers exceed the amount of the
21 deficit.
22 (b) Notwithstanding any other provision of this constitution to the contrary,
23 for the purposes of the budget estimate and enactment of the budget for the next
24 fiscal year, when the official forecast of recurring revenues for the next fiscal year
25 is at least one percent less than the official forecast for the current fiscal year, the
26 following procedure may be employed to avoid a budget deficit in the next fiscal
27 year. An amount not to exceed five percent of the total appropriations or allocations
28 for the current fiscal year from any fund established by law or this constitution shall
29 be available for expenditure in the next fiscal year for a purpose other than as
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1 specifically provided by law or this constitution. For the purposes of this
2 Subsubparagraph, an amount not to exceed one percent of the current fiscal year
3 appropriation for expenditures required by Article VIII, Section 13(B) of this
4 constitution shall be available for expenditures for other purposes in the next fiscal
5 year. Notwithstanding any other provisions of this constitution to the contrary,
6 monies made available as authorized under this Subsubparagraph may be transferred
7 to a fund for which revenues have been forecast to be less than the revenues in the
8 current fiscal year for such fund. Monies transferred as a result of the budget actions
9 authorized by this Subsubparagraph are deemed available for appropriation and
10 expenditure, but in no event shall the aggregate amount of any such transfers exceed
11 the amount of the difference between the official forecast for the current fiscal year
12 and the next fiscal year.
13 * * *
14 (4) The provisions of Subparagraphs (1) and (2) of this Paragraph shall not
15 be applicable to, nor affect:
16 * * *
17 (d) The Louisiana Education Quality Trust Fund as defined in Article VII,
18 Section 10.1(A)(1) of this constitution.
19 (e) The Millennium Trust as provided in Article VII, Section 10.8 of this
20 constitution, except for appropriations from the trust.
21 (f) Any monies not required to be deposited in the state treasury as provided
22 in Article VII, Section 9 of this constitution.
23 (g) The Medicaid Trust Fund for the Elderly created under the provisions of
24 R.S. 46:2691 et seq.
25 * * *
26 Section 2. Be it resolved by the Legislature of Louisiana, two-thirds of the members
27 elected to each house concurring, that there shall be submitted to the electors of the state, for
28 their approval or rejection in the manner provided by law, a proposal to amend Article VIII,
29 Section 13(B) of the Constitution of Louisiana, to read as follows:
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1 §13. Funding; Apportionment
2 Section 13.
3 * * *
4 (B) Minimum Foundation Program. The State Board of Elementary and
5 Secondary Education, or its successor, shall annually develop and adopt a formula
6 which shall be used to determine the cost of a minimum foundation program of
7 education in all public elementary and secondary schools as well as to equitably
8 allocate the funds to parish and city school systems. Such formula shall provide for
9 a contribution by every city and parish school system. Prior to approval of the
10 formula by the legislature, the legislature may return the formula adopted by the
11 board to the board and may recommend to the board an amended formula for
12 consideration by the board and submission to the legislature for approval. The
13 legislature shall annually appropriate funds sufficient to fully fund the current cost
14 to the state of such a program as determined by applying the approved formula in
15 order to insure a minimum foundation of education in all public elementary and
16 secondary schools. Neither the governor nor the legislature may reduce such
17 appropriation, except that the governor may reduce such appropriation using means
18 provided in the act containing the appropriation provided that any such reduction is
19 consented to in writing by two-thirds of the elected members of each house of the
20 legislature. The funds appropriated shall be equitably allocated to parish and city
21 school systems according to the formula as adopted by the State Board of
22 Elementary and Secondary Education, or its successor, and approved by the
23 legislature prior to making the appropriation. Whenever the legislature fails to
24 approve the formula most recently adopted by the board, or its successor, the last
25 formula adopted by the board, or its successor, and approved by the legislature shall
26 be used for the determination of the cost of the minimum foundation program and
27 for the allocation of funds appropriated.
28 * * *
29 Section 3. Be it resolved by the Legislature of Louisiana, two-thirds of the members
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1 elected to each house concurring, that there shall be submitted to the electors of the state, for
2 their approval or rejection in the manner provided by law, a proposal to amend Article XII,
3 Section 6(A)(1) of the Constitution of Louisiana, to read as follows:
4 §6. Lotteries; Gaming, Gambling, or Wagering
5 Section 6.(A) Lotteries. (1) The legislature may provide for the creation and
6 operation of a state lottery and may create a special corporation for that purpose
7 whose employees shall not be subject to state civil service. The net proceeds from
8 the operation of the lottery shall be deposited in a special fund created in the state
9 treasury entitled the Lottery Proceeds Fund. Amounts deposited in the fund shall not
10 be appropriated for expenditure in the same calendar year in which they are received.
11 The legislature shall annually appropriate from the fund net proceeds from the
12 operation of the lottery only for the purposes of the minimum foundation program
13 and no more than five hundred thousand dollars for services related to compulsive
14 and problem gaming as may be provided by law. Amounts appropriated for the
15 minimum foundation program or for services related to compulsive and
16 problem gaming shall not be available for expenditure in the same calendar
17 year in which they are received.
18 * * *
19 Section 4. Be it resolved by the Legislature of Louisiana, two-thirds of the members
20 elected to each house concurring, that there shall be submitted to the electors of the state, for
21 their approval or rejection in the manner provided by law, a proposal to repeal Article VII,
22 Sections 4(D)(4)(b), 10(F)(4)(e), (f), and (g), 10-A, 10.1, 10.3, 10.4, 10.5, 10.6, 10.7, 10.8,
23 10.9, 10.10, 10.11, 10.12, 10.13, 10.14, and 26 and Article IX, Sections 9 and 10 of the
24 Constitution of Louisiana.
25 Section 5. Be it further resolved that upon adoption of this proposed amendment by
26 the electors of the state of Louisiana, the state treasurer is hereby authorized and directed to
27 pay any outstanding debt or other obligations associated with such dedications or funds as
28 provided by those dedications or funds and after compliance with the provisions of Article
29 VII, Section 9 of the Constitution of Louisiana relative to the Bond Security and Redemption
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1 fund, and to deposit any monies remaining into the state general fund of the state of
2 Louisiana. Upon the adoption of this proposed amendment by the electors of the state of
3 Louisiana, the commissioner of administration is hereby authorized and directed to transfer
4 any property, buildings, or other immovables associated with a repeal or abolition of a
5 dedication or fund, in a manner as provided by law to effect these provisions.
6 Section 6. Be it further resolved that this proposed amendment shall be submitted
7 to the electors of the state of Louisiana at the statewide election to be held on October 24,
8 2015.
9 Section 7. Be it further resolved that on the official ballot to be used at said election
10 there shall be printed a proposition, upon which the electors of the state shall be permitted
11 to vote YES or NO, to amend the Constitution of Louisiana, which proposition shall read as
12 follows:
13 Do you support an amendment to repeal constitutionally protected
14 dedications or funds, as follows: Atchafalaya Basin Conservation Fund;
15 Louisiana Wildlife and Fisheries Conservation Fund; Louisiana Education
16 Quality Trust Fund; Budget Stabilization Fund; Higher Education Louisiana
17 Partnership Fund; Mineral Revenue Audit and Settlement Fund; Oilfield Site
18 Restoration Fund; Oil Spill Contingency Fund; Millennium Trust; Louisiana
19 Fund; Millennium Leverage Fund; Artificial Reef Development Fund;
20 Agricultural and Seafood Products Support Fund; Hospital Stabilization
21 Fund; Louisiana Medical Assistance Trust Fund; Revenue Sharing Fund;
22 First Use Tax Trust Fund; Louisiana Investment Fund for Enhancement; and
23 Lottery Proceeds Fund; and to delete certain Minimum Foundation Program
24 expenditure provisions?
25 ( Amends Article VII, Section 10(F)(2)(a) and (b) and (4)(d), Article VIII,
26 Section 13(B), and Article XII, Section 6(A)(1) of the Constitution of
27 Louisiana and to repeal Article VII, Sections 4(D)(4)(b), 10(F)(4)(e), (f), and
28 (g), 10-A, 10.1, 10.3, 10.4, 10.5, 10.6, 10.7, 10.8, 10.9, 10.10, 10.11, 10.12,
29 10.13, 10.14, and 26 and Article IX, Sections 9 and 10)
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The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Jay R. Lueckel.
DIGEST
SB 196 Original 2015 Regular Session Morrell
Present constitution provides for various constitutionally protected funds and dedications of
monies.
Present constitution provides for the Atchafalaya Basin Conservation Fund (Art. VII, Sec.
4(D)4(b)) which is a special treasury fund created in the Louisiana Constitution which
provides that an amount equal to fifty percent of the revenues received from severance taxes
and royalties on state lands in the Atchafalaya Basin, but not to exceed ten million dollars
each fiscal year, shall be deposited by the treasurer into the Atchafalaya Basin Conservation
Fund. The monies in the fund shall be used exclusively for projects contained in the state or
federal Basin master plans or an annual Basin plan developed and approved by the advisory
or approval board created by law specifically for that purpose, or to provide match for the
Atchafalaya Basin Floodway System, Louisiana Project.
Proposed constitutional amendment repeals this fund.
Present constitution provides for the Wildlife and Fisheries Conservation Fund (Art. VII,
Sec. 10-A) which monies are derived from the following:
(1)All revenue from the types and classes of fees, licenses, permits, royalties, or other
revenue paid into the Conservation Fund as provided by law on the effective date of
this Section.
(2)The balance remaining on June 30, 1988, in the Conservation Fund established
pursuant to R.S. 56:10.
(3)All funds or revenues which may be donated expressly to the Conservation Fund.
Present constitution provides that the monies in the Conservation Fund shall be appropriated
by the legislature to the Department of Wildlife and Fisheries, and shall be used solely for
the programs and purposes of conservation, protection, preservation, management, and
replenishment of the state's natural resources and wildlife.
Proposed constitutional amendment repeals this fund.
Present constitution provides that the monies in the La. Education Quality Trust Fund
(LEQTF in Art. VII, Sec. 10.1) which is a permanent trust in the treasury were derived under
Section 1337(g) of Title 43 of the United State Code which are attributable to mineral
production activity or leasing activity in the Outer Continental Shelf. Created the Permanent
Trust Fund and the Support Fund within the LEQTF. Monies may be spent from the Support
fund for educational purposes-fifty percent for higher education and fifty percent for
elementary and secondary purposes.
Proposed constitutional amendment repeals this fund.
Present constitution provides that the monies in the Budget Stabilization Fund (Art VII, Sec.
10.3 which receives funds from: all state general fund and dedicated funds in excess of the
expenditure limit (except local severance and royalty allocations); mineral revenues over the
base ($850 million) after allocation of monies to the Bond Security and Redemption Fund,
after making local allocations of severance and royalty payments, and after requirements for
the Conservation Fund and the La. Education Quality Trust Fund.
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Present constitution provides that the monies in the fund may be used:
(1)If the official forecast of recurring money for the next fiscal year is less than the
official forecast for the current fiscal year. The difference not to exceed one-third of
the fund shall be incorporated into the next year's official forecast if approved by
two-thirds of the members of each house of the legislature.
(2)If a deficit for the current fiscal year is projected due to a decrease in the official
forecast, an amount equal to one-third of the fund not to exceed the projected deficit
may be appropriated if approved by two-thirds of the members of each house of the
legislature.
Proposed constitutional amendment repeals this fund.
Present constitution provides that the monies in the Higher Education Louisiana Partnership
Fund (Art. VII, Sec. 10.4) receives its monies from any monies appropriated by the
legislature, grants, gifts and donations. Monies may used for matching grants for the Higher
Education Louisiana Partnership Program which shall be administered by the Board of
Regents.
Proposed constitutional amendment repeals this fund.
Present constitution provides that the monies in the Mineral Revenue Audit and Settlement
Fund (Art. VII, Sec. 10.5) are derived from settlements or judgments equaling, in both
principal and interest, five million or more resulting from underpayment of severance taxes,
royalty payments, bonus payments, or rentals. Requires the treasurer to make allocations to
the Bond, Security, and Redemption Fund, the severance and royalty payments to local
governments, and as required to the Conservation Fund, the Coastal Protection and
Restoration Fund, and the Budget Stabilization Fund.
Present constitution provides that after making those allocations, the treasurer shall credit
thirty-five million dollars into the Coastal Protection and Restoration Fund. Any monies that
remain in the fund may be appropriated by the legislature for the purpose of retirement in
advance of maturity of debt of the state or to the unfunded accrued liability of the public
retirement systems.
Proposed constitutional amendment repeals this fund.
Present constitution provides that the monies in the Oilfield Site Restoration Fund (Art. VII,
Sec. 10.6) are derived from all revenues from the types and classes of fees, penalties, other
revenues, or judgments associated with site cleanup activities paid into the fund on the
effective date of the amendment; any increase in such amounts charged after the effective
date; the balance in the fund as of January 4, 1996; all funds or revenues which may be
donated; and all site-specific trust account funds established by law.
Present constitution provides that the monies in the fund shall be appropriated to the
Department of Natural Resources and used solely for the programs and purposes of oilfield
site restoration.
Proposed constitutional amendment repeals this fund.
Present constitution provides that the monies in the Oil Spill Contingency Fund (Art. VII,
Sec. 10.7) are derived from:
(1)All revenue from the types and classes of fees, taxes, penalties, judgments,
reimbursements, charges, and federal funds collected or other revenue paid into the
contingency fund as provided by law on the effective date of this Section.
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(2)The balance remaining on January 4, 1996, in the Oil Spill Contingency Fund
established by law.
(3)All funds or revenues which may be donated expressly to the fund.
Present constitution provides that the monies in the fund shall be appropriated by the
legislature to be used solely for the programs and purposes of abatement and containment
of actual or threatened unauthorized discharges of oil as provided by law; and for
administrative expenses associated with such programs and purposes as provided by law.
Proposed constitutional amendment repeals this fund.
Present constitution provides that the Millennium Trust (Art. VII, Sec. 10.8) was established
as a special permanent trust in the state treasury pursuant to certain monies received
following a Master Settlement Agreement with certain tobacco manufacturers in the United
States. Seventy-five percent of the proceeds were allocated to the Millennium Trust.
Proceeds and interest earnings on the Trust were allocated to the Health Excellence Fund,
the Education Excellence Fund, and the TOPS Fund which were created within the Trust.
Currently each of the funds get one-third of the annual interest earnings on the Trust, the
Health Excellence Fund also gets the additional tobacco tax levy of four-twentieths of one
cent per cigarette, and the TOPS Fund receives 100 percent of the Millennium Trust
Settlement proceeds and one-third of annual interest.
Present constitution provides for spending the monies as follows:
(1)The TOPS Fund is spent exclusively for the state programs for financial assistance
for students attending Louisiana institutions of postsecondary education.
(2)The Health Excellence Fund shall be for initiatives for the state's children through
the provision of appropriate health care and initiatives to benefits citizens through
the pursuit of innovation in advance health care sciences.
(3)The Educational Excellence Fund monies are provided for a variety of elementary
and secondary education purposes.
Proposed constitutional amendment repeals this fund.
Present constitution provides that the monies in the Louisiana Fund (Art. VII, Sec. 10.9) are
derived from the remaining twenty-five percent of the tobacco settlement allocation as
provided in the Millennium Fund. Appropriations from the fund shall be restricted to the
following purposes:
(1)Initiatives to ensure the optimal development of Louisiana's children through
enhancement of educational opportunities and provision of appropriate health care.
(2)Initiatives to benefit citizens with respect to health care through the pursuit of
innovation.
(3)Provision of direct health care for tobacco-related illnesses; educational initiatives
to diminish tobacco-related injury.
Proposed constitutional amendment repeals this fund.
Present constitution provides that the monies in the Millennium Leverage Fund (Art. VII,
Sec. 10.10) was established as part of the tobacco settlement. It authorized, by passage of
a specific legislative instrument upon a two-thirds vote of each house of the legislature, for
deposit of all or a portion of the monies received in the settlement. It allowed up to fifty
percent of the monies to be invested in stock. It also allowed for the issuance of revenue
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bonds. Appropriations from the bond proceeds could be used for: twenty-five percent for the
TOPS Fund; twenty-five percent for the Health Excellence Fund; twenty-five percent for the
Education Excellence Fund; and twenty-five percent for the Louisiana Fund purposes.
Proposed constitutional amendment repeals this fund.
Present constitution provides that the monies in the Artificial Reef Development Fund (Art.
VII, Sec. 10.11) which are derived from grants, donations of monies, and other forms of
assistance from private and public sources for the purpose of siting, designing, constructing,
permitting, monitoring, and otherwise managing an artificial reef system. Monies in the fund
are appropriated by the legislature to the Department of Wildlife and Fisheries for such
purposes.
Proposed constitutional amendment repeals this fund.
Present constitution provides that the monies in the Agricultural and Seafood Products
Support Fund (Art. VII, Sec. 10.12) are derived from any monies it receives from the
licensing of trademarks or labels for use in promoting La. agricultural and seafood products,
grants, gifts, donations, and any other revenues as may be provided by law. Monies in the
fund may be appropriated solely for the programs and purposes as required by the
Department of Economic Development for assistance to La. farmers and fishermen.
Proposed constitutional amendment repeals this fund.
Present constitution provides for the Hospitalization Stabilization Fund (Art. VII, Sec. 10.13)
and provides that the legislature may annually adopt a Hospital Stabilization Formula to
enhance the economic viability of La. hospitals and reduce shifting the cost of care for
Louisiana's needy residents to the state's insured residents. Each formula shall establish
reimbursement enhancements under the Medicaid Program.
Proposed constitutional amendment repeals this fund.
Present constitution provides that the monies in the Louisiana Medical Assistance Trust
Fund (Art. VII, Sec. 10.14) are derived from fees as provided in law. The legislature is
authorized to appropriate monies from the fund only if the appropriation is eligible for
federal financial participation under Title XIX.
Proposed constitutional amendment repeals this fund.
Present constitution provides that the monies in the Revenue Sharing Fund (Art. VII, Sec.
26) are derived from the state general fund. Monies are annually allocated to parishes based
on population and homesteads in each parish.
Proposed constitutional amendment repeals this fund.
Present constitution (Art. VIII, Sec. 13(B) and Art. VII, Sec. 10(F)(2)(a) and (b)) provides
that the legislature shall annually appropriate sufficient monies to fully fund all public
elementary and secondary schools to insure a minimum foundation of education throughout
the state. Provisions prohibit reducing such funding unless consented to by a two-thirds vote
of the members of each house of the legislature.
Proposed constitutional amendment deletes the language containing a two-thirds consent
requirement.
Present constitution provides that the monies in the First Use Tax Trust Fund (Art. IX, Sec.
9) are derived from the first use tax imposed by law in 1978 or thereafter and any other tax
imposed by law which would have the effect of imposing any new or alternative tax on the
use of those resources subject to the first use tax. The treasurer shall pay into the state
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general fund such amounts as are necessary to fully reimburse the state general fund for tax
credits granted in 1978.
Proposed constitutional amendment repeals this fund.
Present constitution provides that the monies in the Louisiana Investment Fund for
Enhancement (Art. IX, Sec. 10) are derived from all revenues received by the state from the
production of oil and gas within the state. Monies may be expended by appropriation by two-
thirds of the members of each house of the legislature.
Proposed constitutional amendment repeals this fund.
Present constitution provides that the monies in the Lottery Proceeds Fund (Art. XII, Sec.
6) are derived from net proceeds from the operation of the lottery. The legislature shall
annually appropriate from the fund only for the Minimum Foundation Program and no more
than five hundred thousand dollars for services related to compulsive and problem gaming
as may be provided by law.
Proposed constitutional amendment directs the net proceeds to the state general fund.
Specifies submission of the amendment to the voters at the statewide election to be held on
October 24, 2015.
(Amends Art. VII, Secs. 10(F)(2)(a) and (b) and (4)(d), Article VIII, Section 13(B), and Art.
XII, Sec. 6(A)(1) of the Constitution of Louisiana and to repeal Art. VII, Secs. 4(D)(4)(b),
10(F)(4)(e), (f), and (g), 10-A, 10.1, 10.3, 10.4, 10.5, 10.6, 10.7, 10.8, 10.9, 10.10, 10.11,
10.12, 10.13, 10.14, and 26 and Art. IX, Secs. 9 and 10)
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