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2016 Regular Session
SENATE BILL NO. 417
BY SENATOR DONAHUE
FUNDS/FUNDING. Establishes a rolling sunset for certain nonconstitutional dedications.
(8/1/16)
1 AN ACT
2 To enact R.S. 49:308.2 and to repeal R.S. 49:308.3, relative to special funds and dedications
3 of money; to provide for legislative intent; to provide for the abolition of certain
4 special treasury funds and dedications; to provide for an effective date; and to
5 provide for related matters.
6 Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 49:308.2 is hereby enacted to read as follows:
8 ยง308.2. Special funds and dedications of money; legislative intent
9 A. The legislature finds that the proliferation of funds over more than
10 a decade has created a complex patchwork of financing mechanisms that has
11 complicated budget planning and execution each year. The legislature finds that
12 the growth in the number of funds has reduced the flexibility to address
13 changing problems because of the fractionalization of the funding sources into
14 single purpose special funds. Therefore, it is the intent of the legislature to
15 restore budgetary and fiscal control by abolishing the vast majority of the
16 special treasury funds and restoring funding to the state general fund (direct).
17 Finally, it is the legislature's intent to repeal other provisions that might be in
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1 conflict with these provisions.
2 B. Notwithstanding any other law to the contrary and except as provided
3 by the Constitution of Louisiana and Subsection C of this Section, all special
4 funds in the state treasury shall be abolished and any and all laws of the state
5 that dedicate or otherwise provide for the use of money required by the
6 Constitution of Louisiana to be deposited in the state treasury are superseded,
7 effective June 30, 2021. The treasurer is therefore authorized and directed to
8 transfer the following percentages of the unobligated balances of the funds and
9 deposit them into the general fund on the following dates:
10 (1) 20 percent on June 30, 2017.
11 (2) 40 percent on June 30, 2018.
12 (3) 60 percent on June 30, 2019.
13 (4) 80 percent on June 30, 2020.
14 (5) 100 percent on June 30, 2021.
15 Notwithstanding the laws requiring certain money to be deposited in and
16 credited to such abolished special funds, the treasurer, upon receipt of such
17 money, and after compliance with the requirements of Article VII, Section 9(B)
18 of the constitution relative to the Bond Security and Redemption Fund, shall
19 deposit the money in and credit it to the general fund. All interest earned on
20 investment of the money shall be deposited in and credited to the general fund.
21 C. This Section shall not apply to or affect the laws that dedicate or
22 otherwise provide for the use of the following money or the laws that provide
23 for the following special funds in the state treasury:
24 (1) Special funds or dedications of money established in or protected by
25 the Constitution of Louisiana or special funds containing money not required
26 by the constitution to be deposited in the state treasury.
27 (2) Special funds established in the treasury or dedications of money
28 established solely as a requirement of the terms and conditions of, or as a
29 requirement of an agreement pertaining to, the following:
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1 (a) Grants, donations, or other forms of assistance when the terms
2 require otherwise.
3 (b) Court or regulatory agency orders or judgments.
4 (c) Contracts of the state or of its agencies, boards, or commissions,
5 including contracts related to the issuance of bonds, notes, or other evidence of
6 indebtedness.
7 (d) A contract concerning the satisfaction of final judgments, settlements,
8 or compromises.
9 (3) Special funds and dedications of money provided by law funded by
10 assessments or surcharges for the satisfaction of final judgments, settlements,
11 orders, awards, or compromises.
12 (4) Special funds and dedications of money provided by law related to
13 the judiciary.
14 (5) Any funds including interest earned thereon which are paid or
15 deposited on a voluntary basis by persons or other nonstate or private legal
16 entities for their protection or benefit.
17 D. This Section shall not apply to that portion of any special fund or
18 dedication of funds allocated or distributed to a local governmental or
19 nongovernmental entity which authorizes the issuance of bonds, notes, and
20 other evidences of indebtedness to such entity and only in the event that such
21 monies are pledged for the payment of bonds, notes, and other evidences of
22 indebtedness as of the effective date of this Act.
23 E. Not later than February first of each fiscal year, the treasurer shall
24 submit to the Joint Legislative Committee on the Budget and the legislative
25 fiscal office a report on special funds which shall include but not be limited to
26 a listing of all currently authorized special funds created by the legislature,
27 together with the legal citation, date of creation, cash balance in the fund as of
28 the end of the prior fiscal year, and a notation of whether or not any revenue or
29 expenditure activity has occurred during the prior fiscal year.
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1 Section 2. R.S. 49:308.3 is hereby repealed.
2 Section 3. The Louisiana State Law Institute is hereby authorized and requested to
3 review all statutes relative to special treasury funds and dedicated funds abolished in this Act
4 and change any references it deems appropriate in other locations of the Louisiana Revised
5 Statutes of 1950.
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Ben Huxen.
DIGEST
SB 417 Original 2016 Regular Session Donahue
Proposed law expresses legislative intent to abolish the proliferation of special treasury
funds which has created a barrier to budget planning and execution each year. Abolishing
the funds will also restore the control and flexibility in the budgeting process. The legislature
also expresses its intent to repeal provisions which might be in conflict with the proposed
law.
Proposed law specifically provides that notwithstanding any other law to the contrary and
except as provided by the Constitution of Louisiana and the exceptions provided below, all
special funds in the state treasury are abolished, effective June 30, 2021, and any and all
laws of the state which dedicate or otherwise provide for the use of money required by the
constitution to be deposited in the state treasury are superseded on the effective date of this
Act.
Proposed law provides that the treasurer is authorized and directed to transfer the balances
of the abolished funds and deposit a certain percentage of them into the general fund each
year for the next five fiscal years until completely abolished on June 30, 2021.
Notwithstanding laws requiring certain money to be deposited in and credited to such
abolished special funds, the treasurer, upon receipt of such money, and after compliance with
the requirements of Article VII, Section 9(B) of the constitution relative to the Bond Security
and Redemption Fund, shall deposit the money in and credit it to the general fund. All
interest earned on investment of the money shall be deposited in and credited to the general
fund.
Proposed law provides that the abolition of special treasury funds shall not apply to or affect
the laws which dedicate or otherwise provide for the use of the following money or the laws
which provide for the following:
(1)Special funds or dedications of money established in or protected by the constitution
or special funds containing money not required by the constitution to be deposited
in the state treasury.
(2)Special funds established in the treasury or dedications of money established solely
as a requirement of the terms and conditions of, or as a requirement of an agreement
pertaining to, the following:
(a)Grants, donations, or other forms of assistance.
(b)Court or regulatory agency orders or judgments.
(c)Contracts of the state or of its agencies, boards, or commissions, including
contracts related to the issuance of bonds, notes, and other indebtedness.
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(d)A contract concerning the satisfaction of final judgments, settlements, or
compromises.
(3)Special funds and dedications of money provided by law funded by assessments or
surcharges for the satisfaction of final judgments, settlements, orders, awards, or
compromises.
(4)Special funds and dedications of money provided by law related to the judiciary.
(5)Any funds including interest earned thereon which are paid or deposited on a
voluntary basis by persons or other private legal entities for their protection or
benefit.
Proposed law provides that the abolition shall not apply to that portion of any special fund
or dedication of funds allocated or distributed to a local governmental or nongovernmental
entity which authorizes the issuance of bonds, notes, and other evidences of indebtedness
to such entity and only in the event that such monies have been obligated into bonds, notes,
and other evidences of indebtedness as of the effective date of this Act.
Proposed law also provides that upon the effective date of this Act, the state treasurer is
authorized and directed to create a subfund within the state general fund and to deposit
monies sufficient for the satisfaction of the obligations of such local governmental or
nongovernmental entity.
Proposed law further provides that not later than March 1st of each fiscal year, the treasurer
shall submit to the Joint Legislative Committee on the Budget and the legislative fiscal
office a report on special funds which shall include but not be limited to a listing of all
currently authorized special funds created by the legislature, together with the legal citation,
date of creation, cash balance in the fund as of the end of the prior fiscal year, and a notation
of whether or not any revenue or expenditure activity has occurred during the prior fiscal
year.
Proposed law repeals provisions of present law which abolished certain special treasury
funds, including certain excluded funds therein, as provided in R.S. 49:308.3, and originally
enacted under the provisions of Act 5 of the First Extraordinary Session of 1988, effective
July 1, 1988, and subsequent statutory changes which may be in conflict with the proposed
law statutory provisions.
Proposed law repeals several exclusions in present law relative to the abolition of laws
dedicating money or special funds, as follows:
(1)The Hazardous Waste Site Cleanup Fund created and maintained pursuant to R.S.
30:2205 and the Environmental Trust Fund created and maintained pursuant to R.S.
30:2015.
(2)This Section shall not apply to or affect R.S. 47:5001 et seq. relative to the State Tax
Revenue Limit.
(3)This Section shall not apply to the Motorcycle Safety, Awareness, and Operator
Training Program Fund as provided in R.S. 32:412(C)(2), the Proprietary School
Student Protection Fund as provided for in R.S. 17:3141.16.
Proposed law authorizes and requests the La. State Law Institute to review all statutes
relative to special treasury funds and dedicated funds abolished in this Act and change any
references it deems appropriate in other locations of the La. Revised Statutes of 1950.
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Effective August 1, 2016.
(Adds R.S. 49:308.2; repeals R.S. 49:308.3)
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