The original instrument was prepared by Jay Lueckel. The following digest, which
does not constitute a part of the legislative instrument, was prepared by Kari B.
Couvillon.
DIGEST
SB 259 Engrossed 2015 Regular Session Adley
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 and law authorize 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.
Proposed constitutional amendment and law retains present constitution and law except changes the
time period for the base to be increased from ten years to five years.
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.
Proposed constitution and law changes the name of the Budget Stabilization Fund to the Budget and
Transportation Stabilization Trust and provides for the purposes and uses of monies in the fund.
Proposed constitutional amendment and law creates the Budget Stabilization Subfund and the
Transportation Stabilization Subfund in the Budget and Transportation Stabilization Trust and
provides that at the beginning of each fiscal year, mineral revenues shall be allocated and deposited
into the subfunds as follows:
(i)Beginning in Fiscal Year 2015-2016, mineral revenues in excess of the base shall be
deposited in the Budget Stabilization Subfund until the balance in the fund equals and shall be maintained in the amount of $500 million.
(ii)Once the balance in the Budget Stabilization Subfund equals $500 million, mineral
revenues shall be deposited into the Transportation Stabilization Subfund at the
beginning of the next fiscal year until the balance in the Transportation Stabilization
Subfund equals and shall be maintained in the amount of $500 million. Thereafter,
any excess mineral revenues shall be deposited into the state general fund. The
legislature may appropriate additional monies into either the Budget Stabilization
Subfund or the Transportation Stabilization Subfund.
Proposed constitutional amendment and law provides that monies in the
Transportation Stabilization Subfund shall be appropriated by the legislature and
used solely and exclusively for planning, design, construction, and maintenance
connected with the state highway program. In the event that a state infrastructure
bank is established by law in the Transportation Trust Subfund, an amount not to
exceed $50 million may be transferred to the Transportation Trust Subfund to be
used for the capitalization of the state infrastructure bank.
(iii)No deposit of mineral revenues shall be made in any fiscal year in which money in
the fund is appropriated for use or incorporated into the official forecast or in the
ensuing fiscal year, except by specific appropriation by the legislature.
Effective and becomes operative if and when the proposed amendment of Article VII, Sections 10.3
and 27 of the Constitution of Louisiana contained in the Act which originated as Senate Bill No. 202
of this 2015 Regular Session of the Legislature is adopted at a statewide election to be held on
October 24, 2015, and becomes effective.
(Amends R.S. 39:94(A)(intro para), (A)(2)(a) and (b), and 97(B); adds R.S. 39:94(A)(2)(c))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Finance to the original bill
1. Specifies that the balance of the Budget Stabilization Subfund shall be maintained
in the amount of $500 million.
2. Specifies that the balance of the Transportation Stabilization Subfund shall be
maintained in the amount of $500 million.