RÉSUMÉ DIGEST
ACT 639 (HB 696) 2016 Regular Session Leger
New law establishes the Revenue Stabilization Trust Fund as a special treasury trust fund.
New 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 existing constitution and existing law from new 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 and Game Preserve 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.
New 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.
New law deposits into the fund corporate income and franchise tax revenues over $600
million received during the fiscal year.
New law authorizes investment of the money in the fund in the same manner as investments
of the Millennium Trust as provided for in existing law.
New law deposits into the state general fund all interest and other income earned on
investments of the fund. New 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 2/3 of the elected members of each house of the
legislature.
New law provides that the minimum fund balance or the allowable percentage may be
changed by a law enacted by 2/3 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 679 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)