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 Engrossed 2016 Regular Session Leger
Abstract: Creates the Revenue Stabilization Trust Fund as a special treasury trust fund, deposits
into the fund mineral revenues and corporate income tax revenues, and dedicates other
mineral revenue to repayment of the UAL.
Proposed law establishes the Mineral Revenue Stabilization Trust Fund as a special treasury trust
fund.
Proposed law provides for the allocation of annual mineral revenues between $660 million and $950
million and mineral revenues that are required to be deposited into the Budget Stabilization Fund
but are not because the fund is at its maximum as follows:
(1)30% of mineral revenues are appropriated to the Louisiana State Employees' Retirement
System (LASERS) and the Teachers' Retirement System of Louisiana (TRSL) towards the
balances of the unfunded accrued liability (UAL) of such systems existing as of June 30,
1988, until the balances are elminated. Any such payments to the public retirement systems
shall not be used, directly or indirectly, to fund COLAs for such systems.
(2)The remainder are deposited into the Revenue Stabilization Trust Fund.
Further excludes allocations and deposits of mineral revenues to the following as required under
present constitution and present law from proposed law:
(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 Quality Education Support
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 includes severance taxes, royalty payments, bonus payments, or rentals in the
definition of mineral revenues, excluding nonrecurring revenues, grants or donations when the terms
or conditions require otherwise, and revenues from a tax on the transportation of minerals.
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 10% of the fund balance, (hereinafter the
allowable percentage), for the following purposes:
(a)Capital outlay projects in the comprehensive state capital budget.
(b)Transportation infrastructure.
(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. 603 of this 2016 R.S. of the Legislature is adopted at
a statewide election and becomes effective.
(Adds R.S. 39:100.111, 100.112, and 100.115)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Appropriations to the original
bill:
1. Allocate 30% of certain mineral revenues towards payment of the unfunded accrued
liabilities of the La. State Employees Retirement System and the Teachers' Retirement
System of La. existing as of June 30, 1988, until those liabilities have been eliminated.
2. Increase the amount that may be appropriated out of the Revenue Stabilization Trust
Fund once the balance reached $5 billion from 5% to 10% of the balance.
3. Limit the use of the Revenue Stabilization Trust Fund appropriations to capital outlay
projects and transportation infrastructure.
4. Provide for the allocation of mineral revenues in excess of $660 million instead of $650
million.