HLS 17RS-944 ENGROSSED
2017 Regular Session
HOUSE BILL NO. 184
BY REPRESENTATIVE ABRAHAM
FUNDS/FUNDING: Creates the Louisiana Jobs Now Fund for the purpose of funding
postsecondary education degree and certificate production in high-demand fields
1 AN ACT
2To enact R.S. 17:3138.7 and 3090, relative to special treasury funds; to establish the
3 Louisiana Jobs Now Fund as a special fund in the state treasury; to provide for
4 deposits into the fund; to provide for uses of the fund; to establish the Achieving a
5 Better Life Experience in Louisiana Fund as a special treasury fund; to provide for
6 deposits into and uses of the Achieving a Better Life Experience in Louisiana Fund;
7 to provide for an effective date; and to provide for related matters.
8Be it enacted by the Legislature of Louisiana:
9 Section 1. R.S. 17:3138.7 and 3090 are hereby enacted to read as follows:
10 §3138.7. Louisiana Jobs Now Fund
11 A.(1) The Louisiana Jobs Now Fund, hereinafter referred to in this Section
12 as the "fund", is hereby created within the state treasury as a special fund for the
13 purpose of funding degree and certificate production in high-demand fields through
14 programs offered by Louisiana's public postsecondary education institutions to meet
15 the state's current and future workforce needs.
16 (2) The state treasurer is authorized and directed to annually transfer an
17 amount equal to the amount of elementary and secondary school tuition income tax
18 deductions claimed by taxpayers, pursuant to R.S. 47:297.10, and the amount of
19 educational expenses income tax credits to taxpayers, pursuant to R.S. 47:297(D),
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HB NO. 184
1 in the last calendar year for which the deductions and credits were available, not to
2 exceed thirty-four million dollars from the state general fund into the fund.
3 (3) Monies in the fund shall be invested in the same manner as monies in the
4 general fund. Interest earned on investment of monies in the fund shall be credited
5 to the fund. Unexpended and unencumbered monies in the fund at the end of the
6 fiscal year shall remain in the fund.
7 B.(1) Monies in the fund shall be appropriated to the postsecondary
8 education management boards to be distributed to and used by postsecondary
9 education institutions in accordance with the distribution methodology to be
10 developed as provided for in this Section.
11 (2) The funds distributed pursuant to this Section shall be used by the
12 institution towards degree production at public four-year universities in science,
13 technology, engineering, and math (STEM) programs and towards degree and
14 certificate production at public two-year, community, and technical colleges in fields
15 required for four-star or five-star jobs, as defined by the Louisiana Workforce
16 Commission's Louisiana Star Jobs program or its successors.
17 (3) Any funds distributed to an institution that remains unexpended or
18 unobligated at the end of the fiscal year shall be available for use in the subsequent
19 fiscal year by an institution pursuant to their implementation plan.
20 (4)(a) Funding shall be distributed by the postsecondary education
21 management boards only upon the certification by the postsecondary education
22 management board on behalf of the receiving public postsecondary education
23 institution that a match of no less than twenty-five percent of the amount of funding
24 to be distributed has been guaranteed by a private entity. The certification shall
25 detail the type of private match to be provided, which may include, but is not limited
26 to: cash; in-kind donations of technology, personnel, construction materials, facility
27 modification, or tangible property; internships; scholarships; sponsorship of staff
28 or faculty; or faculty endowment.
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HB NO. 184
1 (b) In any fiscal year that the total appropriated funds from the sum of the
2 state general fund and dedicated funds for higher education are below the
3 appropriated funding in the prior fiscal year, the postsecondary education
4 management boards may, at their discretion, delay or waive requirements as set forth
5 in Subparagraph (a) of this Paragraph.
6 C. The methodology for distribution of funds shall be as follows:
7 (1) Fifty percent of funds shall be distributed to public four-year universities
8 based on each institution's prior year degree production in science, technology,
9 engineering, and math (STEM) programs.
10 (2) Fifty percent of funds shall be distributed to public two-year, community,
11 and technical colleges based on each institution's prior year degree and certificate
12 production in fields required for four-star or five-star jobs, as defined by the
13 Louisiana Workforce Commission's Louisiana Star Jobs program or its successors.
14 (3) The four postsecondary education system presidents shall annually
15 review and approve the distribution methodology, the list of degree and certificate
16 programs upon which the distribution is based, and the final distribution amounts.
17 D. The Board of Regents shall provide annual reporting to the Senate
18 Committee on Education, Senate Committee on Finance, the House Committee on
19 Education, and the House Committee on Appropriations. Such report shall include
20 the distribution methodology, the list of degree and certificate programs upon which
21 the distribution is based, the final distribution amounts, the number of jobs created
22 as a result of the distribution, and the methodology and data used to determine the
23 reported number of jobs created. The postsecondary education management boards
24 shall report to the Board of Regents the information necessary for the Board of
25 Regents to satisfy the requirements of this Subsection.
26 E. The fund is in addition to, and separate from, any monies appropriated or
27 allocated to any postsecondary education management board. Allocations from this
28 fund shall not be included in the Board of Regents' funding formula calculation, nor
29 shall it supplant any state general fund allocations provided to institutions. The
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HB NO. 184
1 availability of the fund shall not in any way substitute, limit, or otherwise affect the
2 allocation of any funds otherwise available to those institutions under state or federal
3 laws.
4 * * *
5 §3090. Achieving a Better Life Experience in Louisiana Fund
6 A. There shall be established as a special fund in the state treasury the
7 Achieving a Better Life Experience in Louisiana Fund, hereinafter referred to as the
8 "ABLE Fund". The assets of the Louisiana Tuition Trust Authority reserved for the
9 payment of the obligations of the authority pursuant to its agreements with ABLE
10 program account owners shall be deposited into the ABLE Fund. Funds received by
11 the authority from persons making deposits in an ABLE program account, all interest
12 and investment income earned by the fund, and all other receipts of the authority
13 from any other source which the authority determines appropriate, shall be deposited
in the ABLE Fund. Any claim for redemption or withdrawal pursuant to a 14
15 Louisiana ABLE account owner's agreement shall be solely against the account
16 owner's portion of the assets of the ABLE Fund. No account owner or beneficiary
17 of a Louisiana ABLE account shall have any claim against the state general fund or
18 other funds or revenue sources of the state.
19 B. The monies in the ABLE Fund shall be used solely as provided in this
20 Chapter.
21 C. All unexpended and unencumbered monies in ABLE program accounts
22 at the end of a fiscal year shall remain in such fund account and be available in the
23 next fiscal year.
24 D. The monies in the ABLE Fund shall be invested by the state treasurer in
25 accordance with state law and as provided for by program rules, regulations, and
26 guidelines, and interest earned on the investment of these monies shall be credited
27 to the respective fund accounts, following compliance with the requirement of
28 Article VII, Section 9(B) of the constitution relative to the Bond Security and
29 Redemption Fund. However, principal deposited by account owners and interest
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HB NO. 184
1 earned thereon is not public money and therefore is not subject to the requirements
2 of Article VII, Section 9(B) of the constitution.
3 Section 2. This Act shall become effective on July 1, 2018, if the Act that originated
4as House Bill No. 202 of the 2017 Regular Session of the Legislature is enacted into law.
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 184 Engrossed 2017 Regular Session Abraham
Abstract: Creates the La. Jobs Now Fund and the Achieving a Better Life Experience in
Louisiana Fund provides for deposits and uses of the funds.
Proposed law creates the La. Jobs Now Fund (the fund) for the purpose of funding degree
and certificate production in high-demand fields through programs offered by La.'s public
postsecondary education institutions to meet the state's current and future workforce needs.
The state treasurer is required to annually transfer an amount equal to the elementary and
secondary school tuition income tax deductions claimed by taxpayers, pursuant to present
law, and the amount of educational expenses income tax credits to taxpayers, pursuant to
present law, in the last calendar year for which the deductions and credits were available, not
to exceed $34 million from the state general fund into the fund.
Proposed law requires monies in the fund shall be appropriated to the postsecondary
education management boards to be distributed to and used by postsecondary education
institutions towards degree production at public four-year universities in science, technology,
engineering, and math (STEM) programs and towards degree and certificate production at
public two-year, community, and technical colleges in fields required for four-star or five-
star jobs, as defined by the La. Workforce Commission's La. Star Jobs program or its
successors.
Proposed law provides for the methodology for distribution of funds as follows:
(1)50% percent to public four-year universities based on each institution's prior year
degree production in science, technology, engineering, and math (STEM) programs.
(2)50% to public two-year, community, and technical colleges based on each
institution's prior year degree and certificate production in fields required for four-
star or five-star jobs, as defined by the La. Workforce Commission's La. Star Jobs
program or its successors.
Proposed law requires the Board of Regents to provide annual reporting to certain legislative
committees.
Proposed law creates the Achieving a Better Life Experience in Louisiana Fund (ABLE
Fund) and provides for the deposit of the assets of the Louisiana Tuition Trust Authority
reserved for the payment of the obligations of the authority pursuant to its agreements with
ABLE program account owners into the fund.
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HB NO. 184
Proposed law provides that money in the ABLE Fund shall be used for the ABLE program
in present law including to assist individuals and families in saving private funds for the
purpose of supporting persons with disabilities.
Effective July 1, 2018, if the Act that originated as HB 202 of the 2017 R.S. is enacted.
(Adds R.S. 17:3138.7 and 3090)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Appropriations to the
original bill:
1. Change the deposits into the La. Jobs Now Fund from $34 million state general
fund to an amount equal to certain school and education tax deductions and tax
credits, in the last calendar year for which the deductions and credits were
available, not to exceed $34 million state general fund.
2. Change the match requirement for distribution of the La. Jobs Now Fund from
20% to 25%.
3. Change the entity responsible for reporting to the legislature regarding the La.
Jobs Now Fund from the post secondary education management boards to the
Board of Regents.
4. Add to the information required to be reported to the legislature the final
distribution amounts, the number of jobs created as a result of the distribution,
and the methodology and data used to determine the reported number of jobs
created.
5. Create the Achieving a Better Life Experience in Louisiana Fund.
6. Change the effective date from July 1, 2017, to July 1, 2018, if the Act that
originated as HB 202 of the 2017 R.S. is enacted.
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