HLS 18RS-511 ORIGINAL
2018 Regular Session
HOUSE BILL NO. 485
BY REPRESENTATIVE SHADOIN
FUNDS/FUNDING: (Constitutional Amendment) Eliminates certain constitutional
dedication of revenue and certain treasury funds
1 A JOINT RESOLUTION
2Proposing to amend Article VI, Section 38.1(C), Article VII, Sections 4.1, 5, 10.1(A) and
3 (B), 10.8(A)(1) and (B), 10.10(D), and 27(A) and (B)(1), and Article XII, Section
4 6(A)(1) and to repeal Article VII, Sections 10(F)(4)(h), 10.1(C) and (D), 10.2, 10.4,
5 10.5, 10.8(A)(2), (3), (4), and (5) and (C), 10.9, 10.15, and 10.16 and Article IX,
6 Section 10 of the Constitution of Louisiana, to eliminate certain constitutional
7 dedications and deposits into and expenditure out of certain funds including the
8 Louisiana Education Quality Trust Fund, Millennium Trust, Millennium Leverage
9 Fund, and Transportation Trust Fund; to repeal the Lottery Proceeds Fund, Louisiana
10 Quality Education Support Fund, Education Excellence Fund, Health Excellence
11 Fund, TOPS Fund, Louisiana Fund, Coastal Protection and Restoration Fund,
12 Mineral Revenue Audit and Settlement Fund, Louisiana Investment Fund for
13 Enhancement, Higher Education Louisiana Partnership Fund, and the Revenue
14 Stabilization Trust Fund; to provide for submission of the proposed amendment to
15 the electors; to provide for an effective date; and to provide for related matters.
16 Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members
17elected to each house concurring, that there shall be submitted to the electors of the state of
18Louisiana, for their approval or rejection in the manner provided by law, a proposal to
19amend Article VI, Section 38.1(C) of the Constitution of Louisiana, to read as follows:
Page 1 of 14
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 18RS-511 ORIGINAL
HB NO. 485
1 §38.1. Regional Flood Protection Authorities
2 Section 38.1.
3 * * *
4 (C) Notwithstanding the provisions of Article VII, Section 10.2(D) of this
5 Constitution, the The legislature may appropriate up to five hundred thousand dollars
6 annually to regional flood protection authorities from the Coastal Protection and
7 Restoration Fund.
8 * * *
9 Section 2. Be it resolved by the Legislature of Louisiana, two-thirds of the members
10elected to each house concurring, that there shall be submitted to the electors of the state of
11Louisiana, for their approval or rejection in the manner provided by law, a proposal to
12amend Article VII, Sections 4.1, 5, 10.1(A) and (B), 10.8(A)(1) and (B), 10.10(D), and
1327(A) and (B)(1) of the Constitution of Louisiana, to read as follows:
14 §4.1. Cigarette Tax Rates
15 Section 4.1. To ensure revenue for the dedication provided for in Article VII,
16 Section 10.8(C)(2)(c) of this constitution, the The rate of the tax levied pursuant to
17 R.S. 47:841(B)(3) shall not be less than the rate set forth in that provision as it exists
18 on January 1, 2012.
19 §5. Motor Vehicle License Tax
20 Section 5. The legislature shall impose an annual license tax of not more
21 than one dollar per each one thousand dollars of actual value on automobiles for
22 private use based on the actual value of the vehicle, as provided by law. However,
23 the annual license tax shall not be less than ten dollars per automobile for private
24 use. On other motor vehicles, the legislature shall impose an annual license tax
25 based upon carrying capacity, horsepower, value, weight, or any of these. After
26 satisfying the requirements of Section 9(B) of this Article, and after satisfying
27 pledges respecting that portion of the revenues attributable to the tax rates in effect
28 at the time of such pledges for the payment of obligations for bonds or other
29 evidences of indebtedness and upon the creation of a Transportation Trust Fund
Page 2 of 14
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 18RS-511 ORIGINAL
HB NO. 485
1 within this constitution, the revenues from the license tax on automobiles for private
2 use shall be deposited therein into the state general fund. In the event no such trust
3 fund is established in this constitution, the revenues shall be used exclusively and
4 solely as provided by law for the construction, maintenance, and safety of the federal
5 and state system of roads and bridges, for the parish and municipal road systems, for
6 the operations of the office of state police, Department of Public Safety and
7 Corrections or its successor, and for the payment of any obligation for bonds issued
8 or indebtedness incurred in connection with any of the foregoing, which bonds may
9 be issued as revenue bonds under Article VII, Section 6(C) of this constitution,
10 subject to existing pledges only as to that portion of the tax collections attributable
11 to the rates in effect at the time of such pledges for the payment of any obligations
12 for bonds or other evidences of indebtedness outstanding on the effective date of this
13 Section. No parish or municipality may impose a license fee on motor vehicles.
14 * * *
15 §10.1. Quality Trust Fund; Education
16 Section 10.1.(A) Louisiana Education Quality Trust Fund. (1) Effective
17 January 1, 1987, there There shall be established in the state treasury as a special
18 permanent trust fund, the Louisiana Education Quality Trust Fund, hereinafter
19 referred to as the "Permanent Trust Fund." After allocation of money to the Bond
20 Security and Redemption Fund as provided in Article VII, Section 9(B) of this
21 constitution, and notwithstanding Article XIV, Section 10 of this constitution, the
22 treasurer shall deposit in and credit to the Permanent Trust Fund all money which is
23 received after the first one hundred million dollars from the federal government
24 under Section 1337(g) of Title 43 of the United States Code which is attributable to
25 mineral production activity or leasing activity on the Outer Continental Shelf which
26 has been held in escrow pending a settlement between the United States and the state
27 of Louisiana;. twenty-five percent All of the recurring revenues received under
28 Section 1337(g) of Title 43 of the United States Code which are attributable to
29 mineral production activity or leasing activity on the Outer Continental Shelf;
Page 3 of 14
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 18RS-511 ORIGINAL
HB NO. 485
1 twenty-five percent all of the interest income earned on investment of monies in the
2 Permanent Trust Fund; seventy-five percent all of the realized capital gains on
3 investment of the Permanent Trust Fund, unless such percentage is changed by law
4 enacted by two-thirds of the elected members of each house of the legislature; and
5 twenty-five percent all of the dividend income earned on investment of the
6 Permanent Trust Fund shall be deposited into the state general fund. No
7 appropriation shall be made from the Permanent Trust Fund. If any such money has
8 been received prior to the effective date of this Section, the treasurer shall transfer
9 from the state general fund to the Permanent Trust Fund on the effective date of this
10 Section an amount of money which shall make the Permanent Trust Fund balance
11 equal to the amount of such money previously received, except for the first one
12 hundred million dollars. After six hundred million dollars has been credited to the
13 Permanent Trust Fund, the sum of fifty million dollars shall be credited to the
14 Coastal Environment Protection Trust Fund, as established in R.S. 30:313, from
15 those monies received from the federal government under Section 1337(g) of Title
16 43 of the United States Code which is attributable to mineral production activity or
17 leasing activity on the Outer Continental Shelf and which has been held in escrow
18 pending a settlement between the United States and the state of Louisiana; all funds
19 in excess of seven hundred fifty million dollars shall be credited to the Permanent
20 Trust Fund.
21 (2) After allocation of money to the Bond Security and Redemption Fund as
22 provided in Article VII, Section 9(B) of the constitution, and notwithstanding Article
23 XIV, Section 10 of the constitution, seventy-five percent of the recurring revenues
24 received under Section 1337(g) of Title 43 of the United States Code which are
25 attributable to mineral production activity or leasing activity, and the percent
26 remaining of the realized capital gains and interest income and dividend income
27 earned on investment of the Permanent Trust Fund after the deposit required to the
28 Permanent Trust Fund in Paragraph A(1) of this Section shall be deposited and
29 credited to a special fund which is hereby created in the state treasury and which
Page 4 of 14
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 18RS-511 ORIGINAL
HB NO. 485
1 shall be known as the Louisiana Quality Education Support Fund, hereinafter
2 referred to as the "Support Fund".
3 (3) All recurring revenues and interest earnings shall be credited to the
4 respective funds as provided in Subparagraphs (1) and (2) above until the balance in
5 the Permanent Trust Fund equals two billion dollars. After the Permanent Trust
6 Fund reaches a balance of two billion dollars, all interest earnings on the Permanent
7 Trust Fund shall be credited to the Support Fund and all recurring revenues shall be
8 credited to the State General Fund.
9 (B) Investment. The money credited to the Permanent Trust Fund pursuant
10 to Paragraph (A) of this Section shall be permanently credited to the Permanent Trust
11 Fund and shall be invested by the treasurer. Notwithstanding any provision of this
12 constitution or other law to the contrary, a portion of money in the Permanent Trust
13 Fund, not to exceed thirty-five percent, may be invested in stock. The legislature
14 shall provide for procedures for the investment of such monies by law. The treasurer
15 shall contract, subject to the approval of the State Bond Commission, for the
16 management of such investments. The amounts in the Support Fund shall be
17 available for appropriation to pay expenses incurred in the investment and
18 management of the Permanent Trust Fund and for educational purposes only as
19 provided in Paragraphs (C) and (D) of this Section.
20 * * *
21 §10.8. Millennium Trust
22 Section 10.8. Millennium Trust
23 (A) Creation.
24 (1) There shall be established in the state treasury as a special permanent
25 trust the "Millennium Trust". After allocation of money to the Bond Security and
26 Redemption Fund as provided in Article VII, Section 9(B) of this constitution, the
27 treasurer shall deposit in and credit to the Millennium Trust certain monies received
28 as a result of the Master Settlement Agreement, hereinafter the "Settlement
29 Agreement", executed November 23, 1998, and approved by Consent Decree and
Page 5 of 14
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 18RS-511 ORIGINAL
HB NO. 485
1 Final Judgment entered in the case "Richard P. Ieyoub, Attorney General, ex rel.
2 State of Louisiana v. Philip Morris, Incorporated, et al.", bearing Number 98-6473
3 on the docket of the Fourteenth Judicial District for the parish of Calcasieu, state of
4 Louisiana; and all dividend and interest income and all realized capital gains on
5 investment of the monies in the Millennium Trust. Beginning on July 1, 2019, the
6 treasurer shall deposit into the state general fund all monies received as a result of
7 the Master Settlement Agreement and all earnings on the investment of the monies
8 in the Millennium Trust. The treasurer shall deposit in and credit to the Millennium
9 Trust the following amounts of monies received as a result of the Settlement
10 Agreement:
11 (a) Fiscal Year 2000-2001, forty-five percent of the total monies received
12 that year.
13 (b) Fiscal Year 2001-2002, sixty percent of the total monies received that
14 year.
15 (c) Fiscal Year 2002-2003 and each fiscal year thereafter, seventy-five
16 percent of the total monies received that year. However, beginning in Fiscal Year
17 2011-2012 after the balance in the Millennium Trust reaches a total of one billion
18 three hundred eighty million dollars, the monies deposited in and credited to the
19 Millennium Trust, received as a result of the Settlement Agreement, shall be
20 allocated to the various funds within the Millennium Trust as provided in
21 Subsubparagraphs (2)(b), (3)(b), and (4)(b) and (c) of this Paragraph.
22 (d) For Fiscal Year 2000-2001, Fiscal Year 2001-2002, and Fiscal Year
23 2002-2003, ten percent of the total monies received in each of those years for credit
24 to the Education Excellence Fund which, notwithstanding the provisions of
25 Subparagraph (C)(1) of this Section, shall be appropriated for the purposes provided
26 in Subsubparagraph (d) of Subparagraph (3) of Paragraph (C) of this Section.
27 * * *
28 (B) Investment. Monies credited to the Millennium Trust pursuant to
29 Paragraph (A) of this Section shall be invested by the treasurer with the same
Page 6 of 14
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 18RS-511 ORIGINAL
HB NO. 485
1 authority and subject to the same restrictions as the Louisiana Education Quality
2 Trust Fund. However, the portion of monies in the Millennium Trust which may be
3 invested in stock may be increased to no more than fifty percent by a specific
4 legislative instrument which receives a favorable vote of two-thirds of the elected
5 members of each house of the legislature. The legislature shall provide for
6 procedures for the investment of such monies by law. The treasurer may contract,
7 subject to the approval of the State Bond Commission, for the management of such
8 investments and, if a contract is entered into, amounts necessary to pay the costs of
9 the contract shall be appropriated from the Millennium Trust.
10 * * *
11 §10.10. Millennium Leverage Fund
12 Section 10.10. Millennium Leverage Fund
13 * * *
14 (D) Appropriations. (1) The legislature may annually appropriate treasurer
15 shall deposit into the state general fund the bond proceeds credited to the Leverage
16 Fund and all earnings, income, and realized capital gains on investment of monies
17 in the Leverage Fund as recognized as available for appropriation in the official
18 forecast of the Revenue Estimating Conference. The Revenue Estimating
19 Conference shall include in its forecast of monies available for appropriation only
20 that amount of earnings, income, and realized capital gains which are in excess of
21 inflation as determined by the conference.
22 (2) Appropriations may be made only for the following purposes:
23 (a) Twenty-five percent shall be available for appropriation for the purposes
24 as provided in the TOPS Fund.
25 (b) Twenty-five percent shall be available for appropriation for the purposes
26 as provided in the Health Excellence Fund.
27 (c) Twenty-five percent shall be available for appropriation as provided in
28 the Education Excellence Fund.
Page 7 of 14
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 18RS-511 ORIGINAL
HB NO. 485
1 (d) Twenty-five percent shall be available for appropriation as provided in
2 the Louisiana Fund.
3 (e) The amounts available for appropriation for each of the purposes
4 contained in Subparagraphs (a) through (c) of this Paragraph may be increased, and
5 the amount available for appropriation for the purposes of Subsubparagraph (d) may
6 be decreased by a specific legislative instrument which receives a favorable vote of
7 two-thirds of the elected members of each house of the legislature.
8 * * *
9 §27. Transportation Trust Fund
10 Section 27.(A) Creation of fund. Effective January 1, 1990, there shall be
11 established in the state treasury as a special permanent trust fund the Transportation
12 Trust Fund ("the trust fund") in which shall be deposited the "excess revenues" as
13 defined herein which are a portion of the avails received in each year from all taxes
14 levied on gasoline and motor fuels and on special fuels (said avails being referred to
15 as the "revenues") as provided herein. After satisfying pledges respecting that
16 portion of the revenues attributable to the tax rates in effect at the time of such
17 pledges for the payment of obligations for bonds or other evidences of indebtedness
18 on the effective date of this Section, the treasurer shall allocate such portion of the
19 revenues received in each year as necessary to pay all principal, interest, premium,
20 if any, and other obligations incident to the issuance, security, and payment in
21 respect of bonds as authorized in Paragraph (C) hereof. Thereafter, the portion of the
22 revenues remaining shall be deposited in the Bond Security and Redemption Fund
23 in the state treasury. After (1) the payment of any obligations for bonds or other
24 evidences of indebtedness in existence on the effective date of this Section which are
25 secured by revenues; (2) payments in respect of bonds authorized in Paragraph (C)
26 hereof; and (3) credit to the Bond Security and Redemption Fund, the treasurer shall
27 deposit in and credit to the trust fund all of the revenues remaining (the "excess
28 revenues") from the avails of all taxes levied on gasoline and motor fuels and on
29 special fuels, as follows: for the fiscal year beginning July 1, 1989, the avails of
Page 8 of 14
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 18RS-511 ORIGINAL
HB NO. 485
1 twelve cents per gallon of said taxes received on and after January 1, 1990; for the
2 fiscal year beginning on July 1, 1990, the avails of fourteen cents per gallon of said
3 taxes; for the fiscal year beginning on July 1, 1991, through the fiscal year beginning
4 on July 1, 2018, and thereafter, the avails of all taxes levied on gasoline and motor
5 fuels and on special fuels; for the fiscal year beginning on July 1, 2019, and
6 thereafter: (a) avails from one cent per gallon of the taxes for appropriation from the
7 Parish Transportation Fund, (b) the avails of taxes levied on gasoline and motor fuels
8 and on special fuels necessary to satisfy pledges respecting that portion of the
9 revenues attributable to the tax rates in effect at the time of such pledges for the
10 payment of bond obligations or other evidences of indebtedness on January 1, 2019,
11 and (c) the avails of other taxes levied on gasoline and motor fuels and on special
12 fuels as may be provided by law. Purchases of gasoline, diesel fuel, or special fuels
13 which are subject to excise tax under Chapter 7 of Subtitle II of Title 47 of the
14 Louisiana Revised Statutes of 1950 shall be exempt from the state sales tax and any
15 sales tax levied by a political subdivision as defined by Article VI, Section 44(2).
16 All monies appropriated by the Federal Highway Administration and the Federal
17 Aviation Administration, or their successors, either reimbursed or paid directly, shall
18 be paid directly or deposited in and credited to the trust fund.
19 (B)(1) Except as provided for in Subparagraph (2) of this Paragraph, the
20 monies in the trust fund shall be appropriated or dedicated solely and exclusively for
21 the costs for and associated with construction and maintenance of the roads and
22 bridges of the state and federal highway systems, the Statewide Flood-Control
23 Program or its successor, ports, airports, transit, state police for traffic control
24 purposes, and the Parish Transportation Fund or its successor and for the payment
25 of all principal, interest, premium, if any, and other obligations incident to the
26 issuance, security, and payment in respect of bonds or other obligations payable from
27 the trust fund as authorized in Paragraph (D) hereof. Unless pledged to the
28 repayment of bonds authorized in Paragraphs (C) or (D) of this Section, the monies
29 in the trust fund allocated to ports, airports, flood control, parish transportation, and
Page 9 of 14
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 18RS-511 ORIGINAL
HB NO. 485
1 state highway construction shall be appropriated annually by the legislature only
2 pursuant to programs established by law which establish a system of priorities for the
3 expenditure of such monies, except that the Transportation Infrastructure Model for
4 Economic Development, which shall include only those projects enumerated in
5 House Bill 17 of the 1989 First Extraordinary Session of the Legislature* and US
6 Highway 61 from Thompson Creek to the Mississippi Line, in lieu of "US 61-Bains
7 to Mississippi Line", and US Highway 165 from I-10 to Alexandria to Monroe to
8 Bastrop and thence on US Highway 425 from Bastrop to the Arkansas Line, in lieu
9 of "US 165-I-10 Alexandria-Monroe-Bastrop-Arkansas Line" and LA 15-Natchez,
10 Mississippi to Chase in lieu of "LA 15-Natchez, Mississippi to Monroe", shall be
11 funded as provided by law. The state generated tax monies appropriated for ports,
12 Parish Transportation Fund, or its successor, and the Statewide Flood-Control
13 Program, or its successor, and state police for traffic control purposes shall not
14 exceed twenty percent annually of the state generated tax revenues in the trust fund;
15 provided, however, that no less than the avails of one cent of the tax on gasoline and
16 special fuels shall be appropriated each year to the Parish Transportation Fund, or its
17 successor. The annual appropriation for airports shall be a sum equal to, but not
18 greater than, the annual estimated revenue to be derived from the state taxes to be
19 collected and received on aviation fuel. Unencumbered and unexpended balances
20 at the end of each fiscal year shall remain in the trust fund. The and the earnings
21 realized in each fiscal year on the investment of monies in the trust fund shall be
22 deposited in and credited to the trust state general fund.
23 * * *
24 Section 3. Be it resolved by the Legislature of Louisiana, two-thirds of the members
25elected to each house concurring, that there shall be submitted to the electors of the state of
26Louisiana, for their approval or rejection in the manner provided by law, a proposal to
27amend Article XII, Section 6(A)(1) of the Constitution of Louisiana, to read as follows:
Page 10 of 14
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 18RS-511 ORIGINAL
HB NO. 485
1 §6. Lotteries; Gaming, Gambling, or Wagering
2 Section 6.(A) Lotteries. (1) The legislature may provide for the creation and
3 operation of a state lottery and may create a special corporation for that purpose
4 whose employees shall not be subject to state civil service. The After compliance
5 with the requirement of Article VII, Section 9(B) of this constitution, net proceeds
6 from the operation of the lottery shall be deposited in a special fund created in the
7 state treasury entitled the Lottery Proceeds Fund. Amounts deposited in the fund
8 shall not be appropriated for expenditure in the same calendar year in which they are
9 received. The legislature shall annually appropriate from the fund only for the
10 purposes of the minimum foundation program and no more than five hundred
11 thousand dollars for services related to compulsive and problem gaming as may be
12 provided by law into the state general fund.
13 * * *
14 Section 4. Be it resolved by the Legislature of Louisiana, two-thirds of the members
15elected to each house concurring, that there shall be submitted to the electors of the state of
16Louisiana, for their approval or rejection in the manner provided by law, a proposal to repeal
17Article VII, Sections 10(F)(4)(h), 10.1(C) and (D), 10.2, 10.4, 10.5, 10.8(A)(2), (3), (4), and
18(5) and (C), and 10.9, 10.15, and 10.16 and Article IX, Section 10 of the Constitution of
19Louisiana.
20 Section 5. The state treasurer is hereby authorized and directed to transfer any
21unencumbered balances remaining in the funds repealed and abolished in Sections 1 through
224 of this Act to the state general fund after satisfying the appropriations for Fiscal Year
232018-2019.
24 Section 6. Be it further resolved that this proposed amendment shall be submitted
25to the electors of the state of Louisiana at the statewide election to be held on November 6,
262018.
27 Section 7. Be it further resolved that the provisions of this proposed amendment
28shall become effective July 1, 2019.
Page 11 of 14
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 18RS-511 ORIGINAL
HB NO. 485
1 Section 8. Be it further resolved that on the official ballot to be used at the election,
2there shall be printed a proposition, upon which the electors of the state shall be permitted
3to vote YES or NO, to amend the Constitution of Louisiana, which proposition shall read as
4follows:
5 Do you support an amendment to remove certain constitutional dedications,
6 including certain deposits into the Louisiana Education Quality Trust Fund,
7 the Millennium Trust, the Millennium Leverage Fund, and the Transportation
8 Trust Fund and to repeal the Louisiana Quality Education Support Fund, the
9 Lottery Proceeds Fund, the Education Excellence Fund, the Health
10 Excellence Fund, the TOPS Fund, the Louisiana Fund, the Coastal Protection
11 and Restoration Fund, the Mineral Revenue Audit and Settlement Fund, the
12 Louisiana Investment Fund for Enhancement, the Higher Education
13 Louisiana Partnership Fund, and the Revenue Stabilization Trust Fund?
14 (Effective July 1, 2019) (Amends Article VI, Section 38.1(C), and Article
15 VII, Sections 4.1, 5, 10.1(A) and (B), 10.8(A)(1) and (B), 10.10(D), and
16 27(A) and (B)(1), and Article XII, Section 6(A)(1); Repeals Article VII,
17 Sections 10(F)(4)(h), 10.1(C) and (D), 10.2, 10.4, 10.5, 10.8(A)(2), (3), (4),
18 and (5) and (C), 10.9, 10.15, and 10.16 and Article IX, Section 10)
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.
Page 12 of 14
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 18RS-511 ORIGINAL
HB NO. 485
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.
Page 13 of 14
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 18RS-511 ORIGINAL
HB NO. 485
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)
Page 14 of 14
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.