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 508 Original 2016 Regular Session Jay Morris
Abstract: Establishes the Mineral Revenue Stabilization Trust Fund and provides for the dedication
of mineral revenues.
Proposed constitutional amendment establishes the Mineral Revenue Stabilization Trust Fund as a
permanent trust in the state treasury. Provides for the annual deposit of mineral revenues after a
deposit of $600 million of mineral revenues into the state general fund. The deposit of mineral
revenues into the fund shall exclude the following deposits of mineral revenues required under
present constitution and present law, as follows:
(1)The Bond Security and Redemption Fund.
(2)Severance tax and royalty payments to the political subdivisions of the state.
(3)The Louisiana Wildlife and Fisheries Conservation Fund.
(4)The Oil and Gas Regulatory Fund.
(5)The Rockefeller Wildlife Refuge Trust and Protection Fund.
(6)The Marsh Island Operating Fund and the Russell Sage or Marsh Island Refuge
Fund.
(7)The MC Davis Conservation Fund.
(8)The White Lake Property Fund.
(9)The Louisiana Education Quality Trust Fund and the Louisiana Education Quality
Support Fund (the "8g Fund").
(10)The Coastal Protection and Restoration Fund.
(11)The Mineral Revenue and Audit Settlement Fund.
(12)The Budget Stabilization Fund.
Proposed constitutional amendment provides for the investment of money in the Mineral Stabilization Trust Fund as provided for in law. Further provides that for Fiscal Years 2018 through
2022, 100% of the annual earnings on investments in the fund shall be credited to the fund.
Beginning in Fiscal Year 2023, 25% of the annual earnings from investments on the fund be credited
to the fund.
Proposed constitutional amendment provides that beginning in Fiscal Year 2023, 75% of the annual
earnings on investments in the fund shall be appropriated for the following:
(1)50% for capital outlay projects in the comprehensive state capital budget.
(2)50% percent for expenses of public postsecondary institutions of higher education.
Further prohibits the annual earnings on investment in the fund from being pledged towards the
repayment of bonded indebtedness.
Present constitution establishes the Budget Stabilization Fund and provides for various deposits into
the fund including mineral revenues collected by the state over a base amount of $750 million.
Further authorizes the legislature to increase the base amount every 10 years in law. Increases
provided for in law in 2004 and 2015 have increased the base amount to $950 million. Proposed
constitutional amendment changes the deposit of mineral revenues collected by the state from over
a base amount of $750 million to an amount not to exceed $200 million. Proposed constitutional
amendment further eliminates the reference to a base and the authorization for increases to the base
every 10 years.
Present constitution provides for a procedure for adjusting appropriations to eliminate a projected
deficit. After the budget has been reduced in an aggregate amount of at least 7/10 of 1% of the total
budget for the year, adjustments can be made to reduce any constitutionally protected or mandated
allocation or appropriation by no more than 5% of the total allocation or appropriation for transfer
to the fund that is in a deficit. Present constitution further prohibits such reduction and transfer from
certain funds and dedications. Proposed constitutional amendment retains present constitution and
adds the Mineral Stabilization Trust Fund to the list of dedications that cannot be reduced and
transferred if there is a projected deficit.
Present constitution provides for allocation of severance taxes to each parish in which the mineral
revenues were taken or produced as follows:
(1)1/3 of sulphur severance tax, not to exceed $100,000 per parish.
(2)1/3 of lignite severance tax, not to exceed $100,000 per parish.
(3)3/4 of the timber severance tax per parish.
(4)1/5 of the severance tax on all natural resources other than sulphur, lignite and
timber, not to exceed $850,000 per parish, with an increase in the maximum amount
each July 1 based on the average increase in the Consumer Price Index. Present constitution further provides that in any year following the Revenue Estimating Conference
certifying that the actual revenues from severance tax on all natural resources other than sulphur,
lignite and timber is more than the revenues collected in Fiscal Year 2008-2009 the following
occurs:
(1)The maximum amount allocated to each parish increases to $1.85 million and then
to $2.85 million in each following year, with an increase in the maximum amount
each July 1 based on the average increase in the Consumer Price Index. Of the total
amount remitted to each parish, 50% of the amount in excess of the amount receive
by the parish in fiscal Year 2011-2012 shall be spent on the same purposes as money
received by the parish from the Parish Transportation Fund.
(2)Deposit of mineral revenues into the Atchafalaya Basin Conservation Fund not to
exceed $10 million to be used for projects in the basin.
Proposed constitutional amendment eliminates the dedication and requirement of present constitution
in any year following the Revenue Estimating Conference certification that the actual revenues from
severance tax on all natural resources other than sulphur, lignite and timber is more than the revenues
collected in Fiscal Year 2008-2009.
Provides for submission of the proposed amendment to the voters at the statewide election to be held
November 8, 2016.
Effective July 1, 2017.
(Amend Art. VII, §10.3(A)(2); Adds Art. VII, §4(F), 10(F)(4)(h), and 10.15; Repeals Art. VII,
§4(D)(4))