ENROLLED
ACT No. 49
2018 Regular Session
HOUSE BILL NO. 694
BY REPRESENTATIVE HENRY
1 AN ACT
2 To provide for the establishment and reestablishment of agency ancillary funds, to be
3 specifically known as internal service funds, auxiliary accounts, or enterprise funds
4 for certain state institutions, officials, and agencies; to provide for appropriation of
5 funds; and to regulate the administration of said funds.
6 Be it enacted by the Legislature of Louisiana:
7 Section 1. There are hereby appropriated the amounts shown below, which shall be
8 payable out of the state general fund, to the extent of funds deposited, unless otherwise
9 specified, for the establishment and reestablishment of agency ancillary funds which shall
10 be specifically known as internal service funds, auxiliary accounts, or enterprise funds. The
11 monies in each fund shall be used for working capital in the conduct of business enterprises
12 rendering public service, auxiliary service, and interagency service.
13 In the conduct of each such business, receipts shall be deposited in the state treasury
14 and disbursements made by the state treasurer to the extent of the amount deposited to the
15 credit of each ancillary fund, for the Fiscal Year 2018-2019. All funds appropriated herein
16 shall be expended in compliance with the public bid laws of the state.
17 Section 2.A. Except as otherwise provided by law or as herein otherwise provided,
18 any fund equity resulting from prior year operations shall be included as a resource of the
19 fund from which the ancillary fund is directly or indirectly derived.
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1 B. Funds on deposit with the state treasury at the close of the fiscal year are
2 authorized to be transferred to each fund respectively, as equity for Fiscal Year 2019-2020.
3 All unexpended cash balances as of June 30, 2019, shall be remitted to the state
4 treasurer on or before August 14, 2019. If not reestablished in the subsequent year's Act, the
5 agency must liquidate all assets and return all advances no later than August 14, 2019.
6 C. The program descriptions contained in this Act are not part of the law and are not
7 enacted into law by virtue of their inclusion into this Act.
8 Section 3. All money from federal, interagency transfers, statutory dedications, or
9 fees and self generated revenues shall be available for expenditure in the amounts herein
10 appropriated.
11 Any increase in such revenues shall be available for allotment and expenditure by
12 an agency on approval of an increase in the appropriation by the commissioner of
13 administration and the Joint Legislative Committee on the Budget. Any increase in such
14 revenues for an agency without an appropriation from the respective revenue source shall
15 be incorporated into the agency's appropriation on approval of the commissioner of
16 administration and the Joint Legislative Committee on the Budget.
17 Section 4.A. The figures in parentheses following the designation of a budget entity
18 are the total authorized positions and authorized other charges positions for that entity,
19 number of employees approved for each agency, as a result of the passage of this Act, may
20 be increased by the commissioner of administration when sufficient documentation is
21 presented and the request is deemed valid. However, any request which exceeds five
22 positions shall be approved by the commissioner of administration and the Joint Legislative
23 Committee on the Budget.
24 B. The budget request of any agency with an appropriation level of thirty million
25 dollars or more shall include within its existing table of organization positions which
26 perform the function of internal auditing, including the position of a chief audit executive.
27 The chief audit executive shall be responsible for ensuring that the internal audit function
28 adheres to the Institute of Internal Auditors, International Standards for the Professional
29 Practice of Internal Auditing. The chief audit executive shall maintain organizational
30 independence in accordance with these standards and shall have direct and unrestricted
31 access to the commission, board, secretary, or equivalent head of the agency. The chief
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1 audit executive shall certify to the commission, board, secretary, or equivalent head of the
2 agency that the internal audit function conforms to the Institute of Internal Auditors,
3 International Standards for the Professional Practice of Internal Auditing.
4 Section 5. All key and supporting performance objectives and indicators for the
5 departments, agencies, programs, and budget units contained in the Governor’s Executive
6 Budget Supporting Document shall be adjusted by the commissioner of administration to
7 reflect the funds appropriated therein. The commissioner of administration shall report on
8 these adjustments to the Joint Legislative Committee on the Budget by August 15, 2018.
9 Section 6. The following definition is provided for the terms of this Act: "Working
10 Capital" shall be considered the excess of current assets over current liabilities on an accrual
11 basis.
12 Section 7. Should any section, subsection, clause, sentence, phrase, or part of the Act
13 for any reason be held, deemed, or construed to be unconstitutional or invalid, such decisions
14 shall not affect the remaining provisions of the Act, and the legislature hereby declares that
15 it would have passed the Act, and each section, subsection, clause, sentence, phrase, or part
16 thereof, irrespective of the fact that one or more of the sections, subsections, clauses,
17 sentences, phrases, or parts thereof, is declared unconstitutional or invalid. To this end, the
18 provisions of this Act are hereby declared severable.
19 Section 8. Internal Service Funds. These funds account for the financing of goods
20 or services provided by one department or agency to other departments or agencies of the
21 governmental unit, or to other governmental units, on a cost-reimbursement basis. Excess
22 cash funds, excluding cash funds arising from working capital advances, shall be invested
23 by the state treasurer with the interest proceeds there from credited to each account and shall
24 not be transferred to the state general fund.
25 Section 9. In conjunction with the continuing assessment of the existing staff, assets,
26 contracts, and facilities of each department, agency, program or budget unit’s information
27 technology resources and procurement resources, upon completion of this assessment and
28 to the extent optimization of these resources will result in the projected cost savings through
29 staff reductions, realization of operational efficiencies, cost avoidance, and elimination of
30 asset duplication, the commissioner of administration is authorized to transfer the functions,
31 positions, assets, and funds from any other department, agency, program, or budget units
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1 related to these optimizations to a different department. The provisions of this Section shall
2 not apply to the Department of Culture, Recreation and Tourism, or any agency contained
3 in Schedule 04, Elected Officials, of the General Appropriation Act.
4 SCHEDULE 21
5 ANCILLARY APPROPRIATIONS
6 21-800 OFFICE OF GROUP BENEFITS
7 EXPENDITURES: FY 18 EOB FY 19 REC
8 State Group Benefits -
9 Authorized Positions (42) (42)
10 $1,465,813,802$1,530,714,127
11 Program Description: Provides for the administration of group health and accidental
12 insurance and group life insurance for current and former state employees and other
13 participating groups.
14 TOTAL EXPENDITURES $1,465,813,802$1,530,714,127
15 MEANS OF FINANCE:
16 State General Fund by:
17 Interagency Transfers $ 198,733$ 198,733
18 Fees & Self-generated Revenues $1,465,615,069$1,530,515,394
19 TOTAL MEANS OF FINANCING $1,465,813,802$1,530,714,127
20 21-804 OFFICE OF RISK MANAGEMENT
21 EXPENDITURES: FY 18 EOB FY 19 REC
22 Risk Management -
23 Authorized Positions (38) (38)
24 $202,831,399$202,548,049
25 Program Description: Provides for the overall executive leadership and management of
26 the office, support services, policy analysis, management direction of the state's self-
27 insurance program; provides funding for the payment of losses on medical, malpractice,
28 property, comprehensive general liability, personal injury, automobile liability, automobile
29 physical damage, bonds, crime, aviation, wet marine boiler and machinery and
30 miscellaneous tort claims; provides funding for the payment of contracts issued for
31 professional legal defense of claims made against the state; provides funding for the
32 reimbursement of the Division of Risk Litigation in the Office of the Attorney General for
33 costs incurred for professional legal defense of claims made against the state.
34 TOTAL EXPENDITURES $202,831,399$202,548,049
35 MEANS OF FINANCE:
36 State General Fund by:
37 Interagency Transfers $182,987,087$182,995,632
38 Fees & Self-generated Revenues $17,844,312$17,552,417
39 Statutory Dedications:
40 Future Medical Care Fund $ 2,000,000$ 2,000,000
41 TOTAL MEANS OF FINANCING $202,831,399$202,548,049
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1 21-806 LOUISIANA PROPERTY ASSISTANCE
2 EXPENDITURES: FY 18 EOB FY 19 REC
3 Louisiana Property Assistance -
4 Authorized Positions (39) (39)
5 $ 7,099,546$ 7,294,063
6 Program Description: Provides for the accountability of the state's movable property
7 through the development and implementation of sound management practices.
8 TOTAL EXPENDITURES $ 7,099,546$ 7,294,063
9 MEANS OF FINANCE:
10 State General Fund by:
11 Interagency Transfers $ 1,915,846$ 1,915,846
12 Fees & Self-generated Revenues $ 5,183,700$ 5,378,217
13 TOTAL MEANS OF FINANCING $ 7,099,546$ 7,294,063
14 21-807 LOUISIANA FEDERAL PROPERTY ASSISTANCE AG ENCY
15 EXPENDITURES: FY 18 EOB FY 19 REC
16 Federal Property Assistance -
17 Authorized Positions (9) (9)
18 $ 3,267,837$ 3,321,656
19 Program Description: Seeks to assure the fair and equitable distribution of federal
20 property allocated to Louisiana by the General Services Administration to eligible Louisiana
21 donees.
22 TOTAL EXPENDITURES $ 3,267,837$ 3,321,656
23 MEANS OF FINANCE:
24 State General Fund by:
25 Interagency Transfers $ 234,342$ 234,342
26 Fees & Self-generated Revenues $ 3,033,495$ 3,087,314
27 TOTAL MEANS OF FINANCING $ 3,267,837$ 3,321,656
28 21-811 PRISON ENTERPRISES
29 EXPENDITURES: FY 18 EOB FY 19 REC
30 Prison Enterprises -
31 Authorized Positions (72) (72)
32 $35,547,459$35,556,479
33 Program Description: Utilizes the resources of the Department of Public Safety and
34 Corrections in the production of food, fiber, and other necessary items used by offenders in
35 order to lower the cost of incarceration; provides products and services to state agencies
36 and agencies of parishes, municipalities, and other political subdivisions; and provides work
37 opportunities for offenders. Prison Enterprises conducts both industry operations and
38 agriculture operations.
39 TOTAL EXPENDITURES $35,547,459$35,556,479
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1 MEANS OF FINANCE:
2 State General Fund by:
3 Interagency Transfers $24,602,384$24,611,404
4 Fees & Self-generated Revenues $10,945,075$10,945,075
5 TOTAL MEANS OF FINANCING $35,547,459$35,556,479
6 21-815 OFFICE OF TECHNOLOGY SERVICES
7 EXPENDITURES: FY 18 EOB FY 19 REC
8 Technology Services -
9 Authorized Positions (803) (835)
10 Authorized Other Charges Positions (9) (9)
11 $419,798,276$394,008,665
12 Program Description: The mission of the Office of Technology Services (OTS) is to
13 establish competitive, cost-effective technology systems and services while acting as the sole
14 centralized customer for the acquisition, billing and record keeping of those technology
15 services. OTS shall charge respective user agencies for the cost of the technology and
16 services provided including the cost of the operation of the office in a fair, equitable, and
17 consistent manner, in full compliance with State of Louisiana statutes.
18 TOTAL EXPENDITURES $419,798,276$394,008,665
19 MEANS OF FINANCE:
20 State General Fund by:
21 Interagency Transfers $418,279,803$392,490,192
22 Fees and Self-generated Revenues $ 1,518,473$ 1,518,473
23 TOTAL MEANS OF FINANCING $419,798,276$394,008,665
24 21-816 DIVISION OF ADMINISTRATIVE LAW
25 EXPENDITURES: FY 18 EOB FY 19 REC
26 Administration -
27 Authorized Positions (58) (58)
28 $ 7,776,263$ 8,157,222
29 Program Description: Provides a neutral forum for handling administrative hearings for
30 certain state agencies, with respect for the dignity of individuals and their due process
31 rights.
32 TOTAL EXPENDITURES $ 7,776,263$ 8,157,222
33 MEANS OF FINANCE:
34 State General Fund by:
35 Interagency Transfers $ 7,747,366$ 8,128,325
36 Fees & Self-generated Revenues $ 28,897$ 28,897
37 TOTAL MEANS OF FINANCING $ 7,776,263$ 8,157,222
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1 21-820 OFFICE OF STATE PROCUREMENT
2 EXPENDITURES: FY 18 EOB FY 19 REC
3 State Procurement -
4 Authorized Positions (92) (92)
5 $10,562,653$10,726,861
6 Program Description: The mission of the Office of State Procurement is to provide cost-
7 effective services that satisfy the needs of approved governmental units of the State of
8 Louisiana through the management of products and services.
9 TOTAL EXPENDITURES $10,562,653$10,726,861
10 MEANS OF FINANCE:
11 State General Fund by:
12 Interagency Transfers $ 8,496,667$ 7,777,765
13 Fees & Self-generated Revenues $ 2,065,986$ 2,949,096
14 TOTAL MEANS OF FINANCING $10,562,653$10,726,861
15 21-829 OFFICE OF AIRCRAFT SERVICES
16 EXPENDITURES: FY 18 EOB FY 19 REC
17 Flight Maintenance -
18 Authorized Positions (3) (3)
19 $ 2,252,082$ 2,255,496
20 Program Description: The mission of the Office of Aircraft Services is to manage the
21 overall maintenance and provide all needed and required support for safe, proper, and
22 economic operation of the State’s various aircraft. Flight Maintenance Operations ensures
23 flight safety, maintains high safety standards while minimizing aircraft downtime for repairs,
24 and provides high quality, efficient, and economical repair and fueling services for state-
25 operated aircraft.
26 TOTAL EXPENDITURES $ 2,252,082$ 2,255,496
27 MEANS OF FINANCE:
28 State General Fund by:
29 Interagency Transfers $ 1,822,867$ 1,826,281
30 Fees & Self-generated Revenues $ 429,215$ 429,215
31 TOTAL MEANS OF FINANCING $ 2,252,082$ 2,255,496
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1 21-860 CLEAN WATER STATE REVOLVING FUND
2 EXPENDITURES: FY 18 EOB FY 19 REC
3 Clean Water State Revolving Fund $115,000,000$115,000,000
4 Program Description: Helps individual citizens and local governments participate in
5 environmental programs by assisting municipalities to finance and construct wastewater
6 treatment works. The Clean Water State Revolving Fund is used by the Department of
7 Environmental Quality to assist recipients of Environmental Protection Agency and
8 construction grants in providing project inspection, construction management, and overall
9 program management services, required for the completion of the Environmental Protection
10 Agency program, as outlined in the management grant. Regional meetings are held in the
11 state’s eight planning districts with one-on-one follow-up meetings to make municipalities
12 more aware of the program’s benefits and requirements.
13 TOTAL EXPENDITURES $115,000,000$115,000,000
14 MEANS OF FINANCE:
15 State General Fund by:
16 Statutory Dedications:
17 Clean Water State Revolving Fund $115,000,000$115,000,000
18 TOTAL MEANS OF FINANCING $115,000,000$115,000,000
19 21-861 DRINKING WATER REVOLVING LOAN FUND
20 EXPENDITURES: FY 18 EOB FY 19 REC
21 Drinking Water Revolving Loan Fund $34,000,000$34,000,000
22 Program Description: Assist public water systems in financing needed drinking water
23 infrastructure improvements (e.g. treatment plant, distribution main replacement, storage
24 facilities, new wells). The Safe Drinking Water Revolving Loan Fund provides assistance
25 in the form of low-interest loans and technical assistance to public water systems in
26 Louisiana to assist them with complying with state and federal drinking water regulations,
27 ensuring that their customers are provided with safe drinking water thereby protecting the
28 public health.
29 TOTAL EXPENDITURES $34,000,000$34,000,000
30 MEANS OF FINANCE:
31 State General Fund by:
32 Statutory Dedication:
33 Drinking Water Revolving Loan Fund $34,000,000$34,000,000
34 TOTAL MEANS OF FINANCING $34,000,000$34,000,000
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1 Section 10. This Act shall become effective on July 1, 2018.
SPEAKER OF THE HOUSE OF REPRESENTATIVES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED:
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