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 504 Original 2016 Regular Session Ivey
Abstract: Requires mineral revenues not already dedicated to certain funds to be dedicated towards
transportation, retirement, the Budget Stabilization Fund, and coastal protection.
Present constitution (Art. VII, §10.2(A), (B),and (C) and 10.3(A)(2)) dedicates a portion of the state
mineral revenues, after allocations to the Bond Security and Redemption Fund, allocations of
severance tax and royalties to political subdivisions of the state, the Conservation Fund, the
Louisiana Education Quality Permanent Trust Fund, and the Louisiana Education Quality Support
Fund. The Coastal Protection and Restoration Fund receives allocations of $5 million, an additional
$10 million of the mineral revenues in excess of $600 million, and an additional $10 million of
mineral revenues in excess of $650 million. The Budget Stabilization Fund receives allocations in
excess of a base amount, which may be adjusted by law. The current base amount by law is $950
million.
Proposed constitutional amendment deletes the allocations of state mineral revenues to the Coastal
Protection and Restoration Fund and the Budget Stabilization Fund and requires mineral revenues,
including severance taxes, royalty payments, bonus payments, or rentals, and excluding such
revenues designated as nonrecurring, revenues received by the state as a result of grants or donations
when the terms or conditions thereof require otherwise, and revenues derived from any tax on the
transportation of minerals, shall be available only for payments toward retirement liabilities after the
following allocations of said mineral revenues have been made:
(1)To the Bond Security and Redemption Fund.
(2)The severance tax and royalties allocated to the political subdivisions of the state.
(3)Deposits required into the Conservation Fund and the Louisiana Education Quality Trust
Fund and Louisiana Education Quality Support Fund.
(4)Deposits into the Coastal Protection and Restoration Fund.
(5)Deposits into the Mineral Revenue and Audit Settlement Fund.
Proposed constitutional amendment requires deposits and allocations in the following order:
(1)Up to $5 million to the Coastal Protection and Restoration Fund. (2)Up to $50 million to the Transportation Trust Fund, to be used as follows:
(a)The first $25 million for state highway pavement and bridge sustainability projects.
(b)The next $10 million for highway priority program projects classified as capacity
projects.
(c)The next $10 million for port construction and development priority program
projects.
(d)The next $5 million for use by a state transportation infrastructure bank.
(3)Up to $500 million to the state retirement systems. Such money shall be allocated to each
state retirement system in proportion to the balance of unfunded accrued liabilities of each
such system. For each system, such allocation shall be applied to the oldest outstanding
liability as defined by law. Such allocation shall not be used, directly or indirectly, to fund
cost-of-living increases for such systems.
(4)Up to $40 million per year to the state retirement systems to provide for cost-of-living
adjustments. Such money shall be allocated to each system in proportion to the total annual
benefits paid to retirees and beneficiaries by that system.
(5)Up to $10 million per year to the Coastal Protection and Restoration Fund.
(6)Up to $40 million per year to the state retirement systems to provide for cost-of-living
adjustments. Such money shall be allocated to each system in proportion to the total annual
benefits paid to retirees and beneficiaries by that system.
(7)Up to $10 million per year to the Coastal Protection and Restoration Fund.
(8)Up to $40 million to the Transportation Trust Fund, to be used as follows:
(a)The first $20 million for state highway pavement and bridge sustainability projects.
(b)The next $8 million for highway priority program projects classified as capacity
projects.
(c)The next $8 million for port construction and development priority program projects.
(d)The next $4 million for use by a state transportation infrastructure bank.
(9)Up to $45 million to the state retirement systems. Such money shall be allocated to each
state retirement system in proportion to the balance of unfunded accrued liabilities of each
such system. For each system, such allocation shall be applied to the oldest outstanding
liability as defined by law. Such allocation shall not be used, directly or indirectly, to fund
cost-of-living increases for such systems.
(10)Up to $50 million to the Transportation Trust Fund, to be used as follows:
(a)The first $25 million for state highway pavement and bridge sustainability projects.
(b)The next $10 million for highway priority program projects classified as capacity projects.
(c)The next $10 million for port construction and development priority program
projects.
(d)The next $5 million for use by a state transportation infrastructure bank.
(11)To the Budget Stabilization Fund, until it reaches its capacity.
(12)Up to $100 million to the Transportation Trust Fund, to be used as follows:
(a)The first $50 million for state highway pavement and bridge sustainability projects.
(b)The next $20 million for highway priority program projects classified as capacity
projects.
(c)The next $20 million for port construction and development priority program
projects.
(d)The next $10 million for use by a state transportation infrastructure bank.
(13)Up to $300 million per year, to the state retirement systems. Such money shall be allocated
to each state retirement system in proportion to the balance of unfunded accrued liabilities
of each such system. For each system, such allocation shall be applied to the oldest
outstanding liability as defined by law. Any allocations provided under this Subparagraph
shall not be used, directly or indirectly, to fund cost-of-living increases for such systems.
(14)Any remaining money, to be deposited into the Transportation Trust Fund.
Provides for submission of the proposed amendment to the voters at the statewide election to be held
November 8, 2016.
Effective on July 1, 2017.
(Amends Const. Art. VII, §§10.2(A), (B), and (C) and 10.3(A)(2); Adds Const. Art. VII, §10.15)