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 716 Original 2016 Regular Session Jay Morris
Abstract: Establishes the Mineral Revenue Stabilization Trust Fund and provides for the dedication
of mineral revenues.
Proposed law 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 law provides for the investment of money in the Mineral Revenue Stabilization Trust Fund in the same manner as investments of the Millennium Trust provided in present 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 law provides 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 law 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 $950 million.
Proposed constitutional amendment changes the deposit of mineral revenues collected by the state
from over a base amount of $950 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 law provides for deposits of mineral revenues into the Coastal Protection and Restoration
Fund including 2% of revenues after allocations to parishes in which the natural resources were
collected. Further, the dedication to the Coastal Protection and Restoration Fund is reduced by other
deposits into the fund required by present law.
Proposed law retains present law and further provides that beginning in Fiscal Year 2017-2018, the
annual deposit shall not exceed the amount deposited in Fiscal Year 2014-2015.
Effective if and when the proposed amendment of Article 7 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.
(Amends R.S. 39:94(A)(2) and R.S. 49:214.5.4(D)(1); Adds R.S. 39:100.111)