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 696 Original 2016 Regular Session Leger
Abstract: Creates the Revenue Stabilization Trust Fund as a special treasury trust fund and deposits
into the fund mineral revenues and corporate income tax revenues.
Proposed law establishes the Mineral Revenue Stabilization Trust Fund as a special treasury trust
fund.
Proposed law deposits into the fund mineral revenues between $650 million and $950 million
received during the fiscal year. Further excludes the deposit into the fund 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 (the 8g Fund).
(10)The Coastal Protection and Restoration Fund.
(11)The Mineral Revenue Audit and Settlement Fund.
(12)The Budget Stabilization Fund.
(13)An amount equal to the state general fund deposited into the Transportation Trust Fund and
the Louisiana State Transportation Infrastructure Fund. Proposed law deposits into the fund corporate income and franchise tax revenues over $500 million
received during the fiscal year.
Proposed law authorizes investment of the money in the fund in the same manner as investments of
the Millennium Trust as provided for in present law.
Proposed law deposits into the state general fund all interest and other income earned on investments
of the fund.
Proposed law prohibits any appropriations from the fund, with an exception for the following:
(1)In any fiscal year in which the balance of the fund at the beginning of the year is in
excess of $5 billion, hereinafter the minimum fund balance, the legislature may
appropriate an amount not to exceed 5% of the fund balance, hereinafter the
allowable percentage, for the same purposes as money designated in the official
forecast as nonrecurring pursuant to present constitution. Those uses include:
(a)Retiring or defeasing of debt.
(b)Payments against the unfunded accrued liability of the public retirement
systems.
(c)Capital outlay projects in the comprehensive state capital budget.
(d)Deposits into the Budget Stabilization Fund.
(e)Deposits into the Coastal Protection and Restoration Fund.
(f)New highway construction.
(2)The legislature may authorize an appropriation from the fund at any time for any
purpose subject to consent of 3/4 of the elected members of each house of the
legislature.
Proposed constitutional amendment provides that the minimum fund balance or the allowable
percentage may be changed by a law enacted by 3/4 of the elected members of each house of the
legislature.
Effective if and when the proposed amendment of Article VII of the Constitution of La. contained
in the Act which originated as House Bill No. _____ of this 2016 R.S. of the Legislature is adopted
at a statewide election and becomes effective.
(Adds R.S. 39:100.111 and 100.112)