Louisiana 2016 2016 Regular Session

Louisiana Senate Bill SB214 Comm Sub / Analysis

                    The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Ben Huxen.
DIGEST
SB 214 Original	2016 Regular Session	Walsworth
Present constitution provides for various constitutionally protected funds and dedications of
monies.
Present constitution provides for the Atchafalaya Basin Conservation Fund (Art. VII, Sec.
4(D)(4)(b)) which is a special treasury fund created in the Louisiana Constitution which provides that
an amount equal to 50% of the revenues received from severance taxes and royalties on state lands
in the Atchafalaya Basin, but not to exceed 10 million dollars each fiscal year, shall be deposited by
the treasurer into the Atchafalaya Basin Conservation Fund. The monies in the fund shall be used
exclusively for projects contained in the state or federal Basin master plans or an annual Basin plan
developed and approved by the advisory or approval board created by law specifically for that
purpose, or to provide match for the Atchafalaya Basin Floodway System, Louisiana Project.
Proposed constitutional amendment repeals this fund.
Present constitution provides for the Wildlife and Fisheries Conservation Fund (Art. VII, Sec. 10-A)
which monies are derived from the following:
(1)All revenue from the types and classes of fees, licenses, permits, royalties, or other revenue
paid into the Conservation Fund as provided by law on the effective date of this Section.
(2)The balance remaining on June 30, 1988, in the Conservation Fund established pursuant to
R.S. 56:10.
(3)All funds or revenues which may be donated expressly to the Conservation Fund.
Present constitution provides that the monies in the Conservation Fund shall be appropriated by the
legislature to the Department of Wildlife and Fisheries, and shall be used solely for the programs and
purposes of conservation, protection, preservation, management, and replenishment of the state's
natural resources and wildlife.
Proposed constitutional amendment repeals this fund.
Present constitution provides that the monies in the La. Education Quality Trust Fund (LEQTF in
Art. VII, Sec. 10.1) which is a permanent trust in the treasury were derived under Section 1337(g)
of Title 43 of the United States Code which are attributable to mineral production activity or leasing
activity in the Outer Continental Shelf. Created the Permanent Trust Fund and the Support Fund
within the LEQTF. Monies may be spent from the Support fund for educational purposes-50% for
higher education and 50% for elementary and secondary purposes. Proposed constitutional amendment repeals this fund.
Present constitution provides that the monies in the Budget Stabilization Fund (Art VII, Sec. 10.3)
which receives funds from: all state general fund and dedicated funds in excess of the expenditure
limit (except local severance and royalty allocations); mineral revenues over the base ($850 million)
after allocation of monies to the Bond Security and Redemption Fund, after making local allocations
of severance and royalty payments, and after requirements for the Conservation Fund and the La.
Education Quality Trust Fund.
Present constitution provides that the monies in the fund may be used:
(1)If the official forecast of recurring money for the next fiscal year is less than the official
forecast for the current fiscal year. The difference not to exceed one-third of the fund shall
be incorporated into the next year's official forecast if approved by two-thirds of the members
of each house of the legislature.
(2)If a deficit for the current fiscal year is projected due to a decrease in the official forecast, an
amount equal to one-third of the fund not to exceed the projected deficit may be appropriated
if approved by two-thirds of the members of each house of the legislature.
Proposed constitutional amendment repeals this fund.
Present constitution provides that the monies in the Higher Education Louisiana Partnership Fund
(Art. VII, Sec. 10.4) receives its monies from any monies appropriated by the legislature, grants, gifts
and donations. Monies may be used for matching grants for the Higher Education Louisiana
Partnership Program which shall be administered by the Board of Regents.
Proposed constitutional amendment repeals this fund.
Present constitution provides that the monies in the Mineral Revenue Audit and Settlement Fund
(Art. VII, Sec. 10.5) are derived from settlements or judgments equaling, in both principal and
interest, five million dollars or more resulting from underpayment of severance taxes, royalty
payments, bonus payments, or rentals. Requires the treasurer to make allocations to the Bond,
Security, and Redemption Fund, the severance and royalty payments to local governments, and as
required to the Conservation Fund, the Coastal Protection and Restoration Fund, and the Budget
Stabilization Fund.
Present constitution provides that after making those allocations, the treasurer shall credit 35 million
dollars into the Coastal Protection and Restoration Fund. Any monies that remain in the fund may
be appropriated by the legislature for the purpose of retirement in advance of maturity of debt of the
state or to the unfunded accrued liability of the public retirement systems.
Proposed constitutional amendment repeals this fund.
Present constitution provides that the monies in the Oilfield Site Restoration Fund (Art. VII, Sec. 10.6) are derived from all revenues from the types and classes of fees, penalties, other revenues, or
judgments associated with site cleanup activities paid into the fund on the effective date of the
amendment; any increase in such amounts charged after the effective date; the balance in the fund
as of January 4, 1996; all funds or revenues which may be donated; and all site-specific trust account
funds established by law.
Present constitution provides that the monies in the fund shall be appropriated to the Department of
Natural Resources and used solely for the programs and purposes of oilfield site restoration.
Proposed constitutional amendment repeals this fund.
Present constitution provides that the monies in the Oil Spill Contingency Fund (Art. VII, Sec. 10.7)
are derived from:
(1)All revenue from the types and classes of fees, taxes, penalties, judgments, reimbursements,
charges, and federal funds collected or other revenue paid into the contingency fund as
provided by law on the effective date of this Section.
(2)The balance remaining on January 4, 1996, in the Oil Spill Contingency Fund established by
law.
(3)All funds or revenues which may be donated expressly to the fund.
Present constitution provides that the monies in the fund shall be appropriated by the legislature to
be used solely for the programs and purposes of abatement and containment of actual or threatened
unauthorized discharges of oil as provided by law; and for administrative expenses associated with
such programs and purposes as provided by law.
Proposed constitutional amendment repeals this fund.
Present constitution provides that the Millennium Trust (Art. VII, Sec. 10.8) was established as a
special permanent trust in the state treasury pursuant to certain monies received following a Master
Settlement Agreement with certain tobacco manufacturers in the United States. Seventy-five percent
of the proceeds were allocated to the Millennium Trust. Proceeds and interest earnings on the Trust
were allocated to the Health Excellence Fund, the Education Excellence Fund, and the TOPS Fund
which were created within the Trust. Currently each of the funds get one-third of the annual interest
earnings on the Trust, the Health Excellence Fund also gets the additional tobacco tax levy of
four-twentieths of one cent per cigarette, and the TOPS Fund receives 100% of the Millennium Trust
Settlement proceeds and one-third of annual interest.
Present constitution provides for spending the monies as follows:
(1)The TOPS Fund is spent exclusively for the state programs for financial assistance for
students attending Louisiana institutions of postsecondary education. (2)The Health Excellence Fund shall be for initiatives for the state's children through the
provision of appropriate health care and initiatives to benefit citizens through the pursuit of
innovation in advance health care sciences.
(3)The Educational Excellence Fund monies are provided for a variety of elementary and
secondary education purposes.
Proposed constitutional amendment repeals this fund.
Present constitution provides that the monies in the Louisiana Fund (Art. VII, Sec. 10.9) are derived
from the remaining 25% of the tobacco settlement allocation as provided in the Millennium Fund.
Appropriations from the fund shall be restricted to the following purposes:
(1)Initiatives to ensure the optimal development of Louisiana's children through enhancement
of educational opportunities and provision of appropriate health care.
(2)Initiatives to benefit citizens with respect to health care through the pursuit of innovation.
(3)Provision of direct health care for tobacco-related illnesses; educational initiatives to
diminish tobacco-related injury.
Proposed constitutional amendment repeals this fund.
Present constitution provides that the monies in the Millennium Leverage Fund (Art. VII, Sec. 10.10)
was established as part of the tobacco settlement. It authorized, by passage of a specific legislative
instrument upon a two-thirds vote of each house of the legislature, for deposit of all or a portion of
the monies received in the settlement. It allowed up to 50% of the monies to be invested in stock.
It also allowed for the issuance of revenue bonds. Appropriations from the bond proceeds could be
used for: 25% for the TOPS Fund; 25% for the Health Excellence Fund; 25% for the Education
Excellence Fund; and 25% for the Louisiana Fund purposes.
Proposed constitutional amendment repeals this fund.
Present constitution provides that the monies in the Artificial Reef Development Fund (Art. VII, Sec.
10.11) which are derived from grants, donations of monies, and other forms of assistance from
private and public sources for the purpose of siting, designing, constructing, permitting, monitoring,
and otherwise managing an artificial reef system. Monies in the fund are appropriated by the
legislature to the Department of Wildlife and Fisheries for such purposes.
Proposed constitutional amendment repeals this fund.
Present constitution provides that the monies in the Agricultural and Seafood Products Support Fund
(Art. VII, Sec. 10.12) are derived from any monies it receives from the licensing of trademarks or
labels for use in promoting La. agricultural and seafood products, grants, gifts, donations, and any
other revenues as may be provided by law. Monies in the fund may be appropriated solely for the programs and purposes as required by the Department of Economic Development for assistance to
La. farmers and fishermen.
Proposed constitutional amendment repeals this fund.
Present constitution provides for the Hospitalization Stabilization Fund (Art. VII, Sec. 10.13) and
provides that the legislature may annually adopt a Hospital Stabilization Formula to enhance the
economic viability of La. hospitals and reduce shifting the cost of care for Louisiana's needy
residents to the state's insured residents. Each formula shall establish reimbursement enhancements
under the Medicaid Program.
Proposed constitutional amendment repeals this fund.
Present constitution provides that the monies in the Louisiana Medical Assistance Trust Fund (Art.
VII, Sec. 10.14) are derived from fees as provided in law. The legislature is authorized to appropriate
monies from the fund only if the appropriation is eligible for federal financial participation under
Title XIX.
Proposed constitutional amendment repeals this fund.
Present constitution provides that the monies in the Revenue Sharing Fund (Art. VII, Sec. 26) are
derived from the state general fund. Monies are annually allocated to parishes based on population
and homesteads in each parish.
Proposed constitutional amendment repeals this fund.
Present constitution (Art. VIII, Sec. 13(B) and Art. VII, Sec. 10(F)(2)(a) and (b)) provides that the
legislature shall annually appropriate sufficient monies to fully fund all public elementary and
secondary schools to insure a minimum foundation of education throughout the state. Provisions
prohibit reducing such funding unless consented to by a two-thirds vote of the members of each
house of the legislature.
Proposed constitutional amendment deletes the language containing a two-thirds consent
requirement.
Present constitution provides that the monies in the First Use Tax Trust Fund (Art. IX, Sec. 9) are
derived from the first use tax imposed by law in 1978 or thereafter and any other tax imposed by law
which would have the effect of imposing any new or alternative tax on the use of those resources
subject to the first use tax. The treasurer shall pay into the state general fund such amounts as are
necessary to fully reimburse the state general fund for tax credits granted in 1978.
Proposed constitutional amendment repeals this fund.
Present constitution provides that the monies in the Louisiana Investment Fund for Enhancement
(Art. IX, Sec. 10) are derived from all revenues received by the state from the production of oil and gas within the state. Monies may be expended by appropriation by two-thirds of the members of each
house of the legislature.
Proposed constitutional amendment repeals this fund.
Present constitution provides that the monies in the Lottery Proceeds Fund (Art. XII, Sec. 6) are
derived from net proceeds from the operation of the lottery. The legislature shall annually
appropriate from the fund only for the Minimum Foundation Program and no more than $500,000
for services related to compulsive and problem gaming as may be provided by law.
Proposed constitutional amendment directs the net proceeds to the state general fund.
Specifies submission of the amendment to the voters at the statewide election to be held on 
November 8, 2016.
(Amends Const. Art. VII, Secs. 4.1, 10(F)(2)(a) and (b) and (4)(d), and 11, Art. VIII, Section 13(B),
and Art. XII, Sec. 6(A)(1); repeals Const. Art. VII, Secs. 4(D)(4)(b),10(F)(4)(e), (f), and (g), 10-A,
10.1, 10.3, 10.4, 10.5, 10.6, 10.7, 10.8, 10.9, 10.10, 10.11,10.12, 10.13, 10.14, and 26 and Art. IX,
Secs. 9 and 10)