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 485 Original 2018 Regular Session Shadoin
Abstract: Eliminates certain constitutional dedications of revenue and certain treasury funds.
Louisiana Education Quality Trust Fund and
Louisiana Quality Education Support Fund
Present constitution creates the La. Education Quality Trust Fund (Const. Art. 7, §10.1) and deposits
into the trust, revenues from the federal government related to mineral activities on the Outer
Continental Shelf. Further prohibits appropriations from the trust and provides that once the balance
of the trust reaches $2 billion, all recurring revenues in the trust are deposited into the state general
fund. Proposed constitutional amendment changes the name of the trust from La. Education Quality
Trust Fund to the La. Quality Trust Fund.
Present constitution further creates the La. Quality Education Support Fund and deposits into the
fund 75% of certain revenues into the trust and interest earnings from the trust. The monies in the
fund are available for appropriation only for educational purposes. Proposed constitutional
amendment eliminates the La. Quality Education Support Fund. Further, changes the source
receiving the deposit of 75% of revenues that go into the trust and interest earnings from the La.
Quality Education Support Fund to the state general fund.
Louisiana Fund and Millennium Trust: the Health Excellence Fund,
the Education Excellence Fund, and the TOPS Fund
Present constitution creates the Millennium Trust (Const. Art. 7, §10.8) and deposits 75% of the
monies received from the multi-state tobacco settlement agreement into the trust. Present
constitution further creates the La. Fund (Const. Art. 7, §10.9) and deposits 25% of the monies
received from the multi-state tobacco settlement agreement. The monies in the La. Fund are
available for use for health care and educational purposes. Proposed constitutional amendment
requires that, beginning July 1, 2019, all money received as a result of the tobacco settlement
agreement be deposited into the state general fund and eliminates the La. Fund in the constitution.
Present constitution further creates three funds within the Millennium Trust: the Health Excellence
Fund, the Education Excellence Fund, and the TOPS Fund. Present constitution allocates 1/3 of the
interest earnings on the trust to the Health Excellence Fund and the Education Excellence Fund.
Monies in the Health Excellence Fund are available only for certain healthcare related purposes and
the monies in the Education Excellence Fund are available only for certain education related
purposes. Present constitution allocates all of the monies received from the multi-state tobacco settlement agreement and deposited into the Millennium Trust into the TOPS Fund and further
allocates 1/3 of the interest earnings on the trust to the TOPS Fund. Monies in the TOPS Fund can
be used only for financial assistance for students attending La. institutions of higher education.
Proposed constitutional amendment eliminates the Health Excellence Fund, the Education
Excellence Fund, and the TOPS Fund in the constitution.
Proposed constitutional amendment changes the source receiving all of the monies from the tobacco
settlement agreement and deposited into the Millennium Trust from the TOPS Fund to the state
general fund. Further changes the source receiving the interest earnings on the trust from an
allocation of 1/3 of the amount to the Health Excellence Fund, the Education Excellence Fund, and
the TOPS Fund to the state general fund.
Millennium Leverage Fund
Present constitution creates the Millennium Leverage Fund and authorizes the legislature to provide
by law for a portion of the monies received from the multi-state tobacco settlement agreement to be
deposited into the fund (Const. Art. 7, §10.10). Further authorizes the State Bond Commission to
issue bonds secured by a portion of the monies deposited into the fund.
Present constitution provides that the legislature may annually appropriate the bond proceeds
credited to the Millennium Leverage Fund and authorizes appropriations to the TOPS Fund, the
Health Excellence Fund, the Education Excellence Fund, and the Louisiana Fund.
Proposed constitutional amendment deletes authority for the legislature to annually appropriate the
bond proceeds and instead provides for the treasurer to deposit into the state general fund, the bond
proceeds that are credited to the Millennium Leverage Fund.
Proposed constitutional amendment deletes the authorization for appropriations to the TOPS Fund,
the Health Excellence Fund, the Education Excellence Fund, and the Louisiana Fund.
Lottery Proceeds Fund
Present constitution authorizes the legislature to create a state lottery and requires that the net
proceeds be deposited into the Lottery Proceeds Fund and used to fund the Minimum Foundation
Program (Const. Art. 12, §6). Proposed constitutional amendment eliminates the Lottery Proceeds
Fund and deletes the requirement that the net lottery proceeds be used to fund the Minimum
Foundation Program.
Transportation Trust Fund
Present constitution creates the Transportation Trust Fund (Const. Art. 7, §27) and deposits into the
trust certain taxes on certain fuels and vehicle licenses (Const. Art. 7, §5). Proposed constitutional
amendment changes the dedication of the tax on vehicle licenses from the Transportation Trust Fund to the state general fund. Proposed constitutional amendment retains present constitution regarding
the deposit of taxes on fuels into the fund through FY 1991-2018. For the fiscal year beginning on
July 1, 2019, and thereafter dedicates the one cent of the taxes levied on fuels to the Parish
Transportation Fund, the amount necessary to satisfy revenues pledged for debt service on Jan. 1,
2019, and deposits of other taxes on fuels into the trust as may be provided by law.
Additional Constitutional Dedications
Proposed constitutional amendment eliminates the following special treasury funds in the
constitution and the constitutional requirements regarding these funds:
Coastal Protection and Restoration Fund Const. Art 7, §10.2
Higher Education La. Partnership Fund Const. Art 7, §10.4
La. Investment Fund for Enhancement Const. Art 9, §10
Mineral Revenue Audit and Settlement Fund Const. Art 7, §10.5
Revenue Stabilization Trust Fund Const. Art 7, §10.15
Authorizes and directs the state treasurer to transfer any unencumbered balances remaining in the
funds eliminated in the proposed constitutional amendment to the state general fund after satisfying
the appropriations for FY 2018-2019.
Provides for submission of the proposed amendment to the voters at the statewide election to be held
Nov. 6, 2018.
Effective July 1, 2019.
(Amends Const. Art. VI, §38.1(C), Const. Art. VII, §§4.1, 5, 10.1(A) and (B), 10.8(A)(1) and (B),
10.10(D), and 27(A) and (B)(1), and Const. Art. XII, §6(A)(1); Repeals Const. Art. VII,
§10(F)(4)(h), 10.1(C) and (D), 10.2, 10.4, 10.5, 10.8(A)(2), (3), (4), and (5) and (C), 10.9, 10.15, and
10.16 and Const. Art. IX, §10)