ENROLLED
2017 First Extraordinary Session
HOUSE CONCURRENT RESOL UTION NO. 1
BY REPRESENTATIVE BARRAS
A CONCURRENT RESOL UTION
To direct the treasurer to immediately begin developing a procedure necessary to implement
development of a process to allocate money deposited into the state treasury from
constitutional and statutory dedications that flow through the Bond Security and
Redemption Fund for the purpose of paying debt service on obligations secured by
the full faith and credit of the state beginning in Fiscal Year 2017-2018.
WHEREAS, Article VII, Section 9(B) of the Constitution of Louisiana requires all
money deposited into the state treasury to be credited to the Bond Security and Redemption
Fund; and
WHEREAS, Article VII, Section 9(B) of the Constitution of Louisiana requires that
in each fiscal year an amount is allocated from the Bond Security and Redemption Fund to
pay all the debt obligations secured by the full faith and credit of the state; and
WHEREAS, in the past, debt service payments of obligations secured by the full
faith and credit of the state have been made using only the state general fund (direct); and
WHEREAS, agencies that are not appropriated revenues from the state general fund
(direct) have not shared in the allocation of the payment of debt service on obligations
secured by the full faith and credit of the state; and
WHEREAS, the majority of the constitutional provisions and laws which create
dedications specifically require that monies dedicated to the special treasury fund are
credited to the Bond Security and Redemption Fund before deposit into the dedicated fund;
and
WHEREAS, debt service payments on obligations secured by the full faith and credit
of the state are projected to be between $350 million and $400 million through Fiscal Year
2020-2021; and
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WHEREAS, crediting monies received by the state, prior to deposit into
constitutional and statutory dedications, into the Bond Security and Redemption Fund for
the purpose of making debt service payments on full faith and credit obligations of the state
could allow for approximately $96 million that would otherwise be deposited into
constitutional or statutorily dedicated funds to be allocated for debt service payments on full
faith and credit obligations of the state in Fiscal Year 2017-2018.
THEREFORE, BE IT RESOLVED that the Legislature of Louisiana does hereby
direct the treasurer to immediately begin establishing procedures that would be necessary
to implement development of a process to allocate money deposited into the state treasury
from constitutional and statutory dedications that flow through the Bond Security and
Redemption Fund for the purpose of paying debt service on full faith and credit obligations
of the state beginning in Fiscal Year 2017-2018.
BE IT FURTHER RESOLVED that the process be limited to funds in which the
constitutional or statutory authority for the fund includes a requirement that deposits into the
fund flow through the Bond Security and Redemption Fund.
BE IT FURTHER RESOLVED that the treasurer shall prepare a report to the
legislature describing the process to allocate the deposits from dedications that flow through
the Bond Security and Redemption Fund prior to the 2017 Regular Session of the
Legislature.
BE IT FURTHER RESOLVED that this Resolution shall only take effect and
become operative if and when the Resolution which originated as Senate Concurrent
Resolution No. 2 of this 2017 First Extraordinary Session of the Legislature becomes
effective and operative.
BE IT FURTHER RESOLVED that a suitable copy of this Resolution be transmitted
to the treasurer.
SPEAKER OF THE HOUSE OF REPRESENTATIVES
PRESIDENT OF THE SENATE
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