HLS 201ES-20 ORIGINAL
2020 First Extraordinary Session
HOUSE BILL NO. 12
BY REPRESENTATIVE ZERINGUE
APPROPRIATIONS/ANCILLARY: Provides for the ancillary expenses of state
government (Item #5)
1 AN ACT
2To 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 for Fiscal Year 2020-2021; and to regulate the administration of said funds.
6Be it enacted by the Legislature of Louisiana:
7 Section 1. There are hereby appropriated the amounts shown below, which shall be
8payable out of the state general fund, to the extent of funds deposited, unless otherwise
9specified, for the establishment and reestablishment of agency ancillary funds which shall
10be specifically known as internal service funds, auxiliary accounts, or enterprise funds. The
11monies in each fund shall be used for working capital in the conduct of business enterprises
12rendering public service, auxiliary service, and interagency service.
13 In the conduct of each such business, receipts shall be deposited in the state treasury
14and disbursements made by the state treasurer to the extent of the amount deposited to the
15credit of each ancillary fund, for the current fiscal year. All funds appropriated herein shall
16be 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,
18any fund equity resulting from prior year operations shall be included as a resource of the
19fund from which the ancillary fund is directly or indirectly derived.
20 B. Funds on deposit with the state treasury at the close of the fiscal year are
21authorized to be transferred to each fund respectively, as equity for the next fiscal year.
Page 1 of 9
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 201ES-20 ORIGINAL
HB NO. 12
1 All unexpended cash balances as of June 30, 2021, shall be remitted to the state
2treasurer on or before August 14, 2021. If not reestablished in the subsequent year's Act, the
3agency must liquidate all assets and return all advances no later than August 14, 2021.
4 C. The program descriptions contained in this Act are not part of the law and are not
5enacted into law by virtue of their inclusion into this Act.
6 Section 3. All money from federal, interagency transfers, statutory dedications, or
7fees and self-generated revenues shall be available for expenditure in the amounts herein
8appropriated.
9 Any increase in such revenues shall be available for allotment and expenditure by
10an agency on approval of an increase in the appropriation by the commissioner of
11administration and the Joint Legislative Committee on the Budget. Any increase in such
12revenues for an agency without an appropriation from the respective revenue source shall
13be incorporated into the agency's appropriation on approval of the commissioner of
14administration and the Joint Legislative Committee on the Budget.
15 Section 4.A. The figures in parentheses following the designation of a budget entity
16are the total authorized positions and authorized other charges positions for that entity. The
17number of employees approved for each agency, as a result of the passage of this Act, may
18be increased by the commissioner of administration when sufficient documentation is
19presented and the request is deemed valid. However, any request which exceeds five
20positions shall be approved by the commissioner of administration and the Joint Legislative
21Committee on the Budget.
22 B. The budget request of any agency with an appropriation level of thirty million
23dollars or more shall include within its existing table of organization positions which
24perform the function of internal auditing, including the position of a chief audit executive.
25The chief audit executive shall be responsible for ensuring that the internal audit function
26adheres to the Institute of Internal Auditors, International Standards for the Professional
27Practice of Internal Auditing. The chief audit executive shall maintain organizational
28independence in accordance with these standards and shall have direct and unrestricted
29access to the commission, board, secretary, or equivalent head of the agency. The chief
Page 2 of 9
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 201ES-20 ORIGINAL
HB NO. 12
1audit executive shall certify to the commission, board, secretary, or equivalent head of the
2agency that the internal audit function conforms to the Institute of Internal Auditors,
3International Standards for the Professional Practice of Internal Auditing.
4 Section 5. All key and supporting performance objectives and indicators for the
5departments, agencies, programs, and budget units contained in the Governor’s Proposed
6Budget Supporting Document shall be adjusted by the commissioner of administration to
7reflect the funds appropriated therein. The commissioner of administration shall report on
8these adjustments to the Joint Legislative Committee on the Budget each year by August 15.
9 Section 6. The following definition is provided for the terms of this Act: "Working
10capital" shall be considered the excess of current assets over current liabilities on an accrual
11basis.
12 Section 7. Should any section, subsection, clause, sentence, phrase, or part of the Act
13for any reason be held, deemed, or construed to be unconstitutional or invalid, such decisions
14shall not affect the remaining provisions of the Act, and the legislature hereby declares that
15it would have passed the Act, and each section, subsection, clause, sentence, phrase, or part
16thereof, irrespective of the fact that one or more of the sections, subsections, clauses,
17sentences, phrases, or parts thereof, is declared unconstitutional or invalid. To this end, the
18provisions of this Act are hereby declared severable.
19 Section 8. Internal Service Funds. These funds account for the financing of goods
20or services provided by one department or agency to other departments or agencies of the
21governmental unit, or to other governmental units, on a cost-reimbursement basis. Excess
22cash funds, excluding cash funds arising from working capital advances, shall be invested
23by the state treasurer with the interest proceeds therefrom credited to each account and shall
24not be transferred to the state general fund.
25 Section 9. In conjunction with the continuing assessment of the existing staff, assets,
26contracts, and facilities of each department, agency, program or budget unit’s information
27technology resources and procurement resources, upon completion of this assessment and
28to the extent optimization of these resources will result in the projected cost savings through
29staff reductions, realization of operational efficiencies, cost avoidance, and elimination of
Page 3 of 9
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 201ES-20 ORIGINAL
HB NO. 12
1asset duplication, the commissioner of administration is authorized to transfer the functions,
2positions, assets, and funds from any other department, agency, program, or budget units
3related to these optimizations to a different department. The provisions of this Section shall
4not apply to the Department of Culture, Recreation and Tourism, or any agency contained
5in Schedule 04, Elected Officials, of the General Appropriation Act.
6 SCHEDULE 21
7 ANCILLARY APPROPRIATIONS
821-800 OFFICE OF GROUP BENEFITS
9EXPENDITURES: FY 20 EOB FY 21 REC
10State Group Benefits -
11Authorized Positions (42) (42)
12 $1,561,180,762$1,584,274,843
13Program Description: Provides for the administration of group health and accidental
14insurance and group life insurance for current and former state employees and other
15participating groups.
16 TOTAL EXPENDITURES $1,561,180,762$1,584,274,843
17MEANS OF FINANCE:
18State General Fund by:
19 Interagency Transfers $ 198,733$ 198,733
20 Fees & Self-generated Revenues $1,560,982,029$1,584,076,110
21 TOTAL MEANS OF FINANCING $1,561,180,762$1,584,274,843
2221-804 OFFICE OF RISK MANAGEMENT
23EXPENDITURES: FY 20 EOB FY 21 REC
24Risk Management -
25Authorized Positions (38) (41)
26 $204,364,446$217,558,737
27Program Description: Provides for the overall executive leadership and management of
28the office, support services, policy analysis, management direction of the state's self-
29insurance program; provides funding for the payment of losses on medical, malpractice,
30property, comprehensive general liability, personal injury, automobile liability, automobile
31physical damage, bonds, crime, aviation, wet marine boiler and machinery and
32miscellaneous tort claims; provides funding for the payment of contracts issued for
33professional legal defense of claims made against the state; provides funding for the
34reimbursement of the Division of Risk Litigation in the Office of the Attorney General for
35costs incurred for professional legal defense of claims made against the state.
36 TOTAL EXPENDITURES $204,364,446$217,558,737
Page 4 of 9
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 201ES-20 ORIGINAL
HB NO. 12
1MEANS OF FINANCE:
2State General Fund by:
3 Interagency Transfers $184,534,813$197,418,676
4 Fees & Self-generated Revenues $17,829,633$18,140,061
5 Statutory Dedications:
6 Future Medical Care Fund $ 2,000,000$ 2,000,000
7 TOTAL MEANS OF FINANCING $204,364,446$217,558,737
8Provided, however, that from the monies appropriated to the Risk Management Program, the
9amount of $20,342,890 shall be allocated for payments to the Department of Justice.
1021-806 LOUISIANA PROPERTY ASSISTANCE
11EXPENDITURES: FY 20 EOB FY 21 REC
12Louisiana Property Assistance -
13Authorized Positions (37) (37)
14 $ 7,609,762$ 7,451,981
15Program Description: Provides for the accountability of the state's movable property
16through the development and implementation of sound management practices.
17 TOTAL EXPENDITURES $ 7,609,762$ 7,451,981
18MEANS OF FINANCE:
19State General Fund by:
20 Interagency Transfers $ 1,915,846$ 1,915,846
21 Fees & Self-generated Revenues $ 5,693,916$ 5,536,135
22 TOTAL MEANS OF FINANCING $ 7,609,762$ 7,451,981
2321-807 LOUISIANA FEDERAL PROPERTY ASSISTANCE AG ENCY
24EXPENDITURES: FY 20 EOB FY 21 REC
25Federal Property Assistance -
26Authorized Positions (9) (9)
27 $ 3,331,315$ 3,566,313
28Program Description: Seeks to assure the fair and equitable distribution of federal
29property allocated to Louisiana by the General Services Administration to eligible Louisiana
30donees.
31 TOTAL EXPENDITURES $ 3,331,315$ 3,566,313
32MEANS OF FINANCE:
33State General Fund by:
34 Interagency Transfers $ 234,342$ 484,342
35 Fees & Self-generated Revenues $ 3,096,973$ 3,081,971
36 TOTAL MEANS OF FINANCING $ 3,331,315$ 3,566,313
3721-811 PRISON ENTERPRISES
38EXPENDITURES: FY 20 EOB FY 21 REC
39Prison Enterprises -
40Authorized Positions (72) (72)
41 $33,741,043$33,592,587
Page 5 of 9
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 201ES-20 ORIGINAL
HB NO. 12
1Program Description: Utilizes the resources of the Department of Public Safety and
2Corrections in the production of food, fiber, and other necessary items used by offenders in
3order to lower the cost of incarceration; provides products and services to state agencies
4and agencies of parishes, municipalities, and other political subdivisions; and provides work
5opportunities for offenders. Prison Enterprises conducts both industry operations and
6agriculture operations.
7 TOTAL EXPENDITURES $33,741,043$33,592,587
8MEANS OF FINANCE:
9State General Fund by:
10 Interagency Transfers $24,837,346$24,860,496
11 Fees & Self-generated Revenues $ 8,903,697$ 8,732,091
12 TOTAL MEANS OF FINANCING $33,741,043$33,592,587
1321-815 OFFICE OF TECHNOLOGY SERVICES
14EXPENDITURES: FY 20 EOB FY 1 REC
15Technology Services -
16Authorized Positions (835) (828)
17Authorized Other Charges Positions (9) (9)
18 $395,384,626$398,758,450
19Program Description: The mission of the Office of Technology Services (OTS) is to
20establish competitive, cost-effective technology systems and services while acting as the sole
21centralized customer for the acquisition, billing and record keeping of those technology
22services. OTS shall charge respective user agencies for the cost of the technology and
23services provided including the cost of the operation of the office in a fair, equitable, and
24consistent manner, in full compliance with State of Louisiana statutes.
25 TOTAL EXPENDITURES $395,384,626$398,758,450
26MEANS OF FINANCE:
27State General Fund by:
28 Interagency Transfers $393,866,153$397,239,977
29 Fees and Self-generated Revenues $ 1,518,473$ 1,518,473
30 TOTAL MEANS OF FINANCING $395,384,626$398,758,450
3121-816 DIVISION OF ADMINISTRATIVE LAW
32EXPENDITURES: FY 20 EOB FY 21 REC
33Administration -
34Authorized Positions (58) (58)
35 $ 8,498,129$ 8,475,791
36Program Description: Provides a neutral forum for handling administrative hearings for
37certain state agencies, with respect for the dignity of individuals and their due process
38rights.
39 TOTAL EXPENDITURES $ 8,498,129$ 8,475,791
40MEANS OF FINANCE:
41State General Fund by:
42 Interagency Transfers $ 8,469,232$ 8,446,894
43 Fees & Self-generated Revenues $ 28,897$ 28,897
44 TOTAL MEANS OF FINANCING $ 8,498,129$ 8,475,791
Page 6 of 9
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 201ES-20 ORIGINAL
HB NO. 12
121-820 OFFICE OF STATE PROCUREMENT
2EXPENDITURES: FY 20 EOB FY 21 REC
3State Procurement -
4Authorized Positions (92) (99)
5 $10,895,092$12,319,548
6Program Description: The mission of the Office of State Procurement is to provide cost-
7effective services that satisfy the needs of approved governmental units of the State of
8Louisiana through the management of products and services.
9 TOTAL EXPENDITURES $10,895,092$12,319,548
10MEANS OF FINANCE:
11State General Fund by:
12 Interagency Transfers $ 5,447,546$ 5,447,546
13 Fees & Self-generated Revenues $ 5,447,546$ 6,872,002
14 TOTAL MEANS OF FINANCING $10,895,092$12,319,548
15The commissioner of administration is hereby authorized and directed to adjust the means
16of financing for the State Procurement Program by reducing seven (7) authorized positions
17and reducing the appropriation out of Fees & Self-generated Revenues by $807,051.
1821-829 OFFICE OF AIRCRAFT SERVICES
19EXPENDITURES: FY 20 EOB FY 21 REC
20Flight Maintenance -
21Authorized Positions (3) (3)
22 $ 2,264,646$ 2,328,385
23Program Description: The mission of the Office of Aircraft Services is to manage the
24overall maintenance and provide all needed and required support for safe, proper, and
25economic operation of the State’s various aircraft. Flight Maintenance Operations ensures
26flight safety, maintains high safety standards while minimizing aircraft downtime for repairs,
27and provides high quality, efficient, and economical repair and fueling services for state-
28operated aircraft.
29 TOTAL EXPENDITURES $ 2,264,646$ 2,328,385
30MEANS OF FINANCE:
31State General Fund by:
32 Interagency Transfers $ 1,835,431$ 2,149,170
33 Fees & Self-generated Revenues $ 429,215$ 179,215
34 TOTAL MEANS OF FINANCING $ 2,264,646$ 2,328,385
3521-860 CLEAN WATER STATE REVOLVING FUND
36EXPENDITURES: FY 20 EOB FY 21 REC
37Clean Water State Revolving Fund $90,000,000$110,000,000
38Program Description: Helps individual citizens and local governments participate in
39environmental programs by assisting municipalities to finance and construct wastewater
40treatment works. The Clean Water State Revolving Fund is used by the Department of
41Environmental Quality to assist recipients of Environmental Protection Agency and
42construction grants in providing project inspection, construction management, and overall
43program management services, required for the completion of the Environmental Protection
Page 7 of 9
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 201ES-20 ORIGINAL
HB NO. 12
1Agency program, as outlined in the management grant. Regional meetings are held in the
2state’s eight planning districts with one-on-one follow-up meetings to make municipalities
3more aware of the program’s benefits and requirements.
4 TOTAL EXPENDITURES $90,000,000$110,000,000
5MEANS OF FINANCE:
6State General Fund by:
7 Statutory Dedications:
8 Clean Water State Revolving Fund $90,000,000$110,000,000
9 TOTAL MEANS OF FINANCING $90,000,000$110,000,000
1021-861 DRINKING WATER REVOLVING LOAN FUND
11EXPENDITURES: FY 20 EOB FY 21 REC
12Drinking Water Revolving Loan Fund $34,000,000$34,000,000
13Program Description: Assist public water systems in financing needed drinking water
14infrastructure improvements (e.g. treatment plant, distribution main replacement, storage
15facilities, new wells). The Drinking Water Revolving Loan Fund provides assistance in the
16form of low-interest loans and technical assistance to public water systems in Louisiana to
17assist them with complying with state and federal drinking water regulations, ensuring that
18their customers are provided with safe drinking water thereby protecting the public health.
19 TOTAL EXPENDITURES $34,000,000$34,000,000
20MEANS OF FINANCE:
21State General Fund by:
22 Statutory Dedication:
23 Drinking Water Revolving Loan Fund $34,000,000$34,000,000
24 TOTAL MEANS OF FINANCING $34,000,000$34,000,000
25Payable out of the State General Fund by
26Statutory Dedications out of the Drinking
27Water Revolving Loan Fund to the Drinking
28Water Revolving Loan Fund for projects to
29improve water infrastructure $13,988,458
30 Section 10. This Act shall become effective on July 1, 2020.
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 12 Original 2020 First Extraordinary Session Zeringue
Abstract: Appropriates funds and provides for ancillary expenses of state government,
including internal service funds, auxiliary accounts, and enterprise funds.
Provides $638,161,680 of interagency transfers, $1,627,357,904 of fees and self-generated
revenue, and $159,988,458 of statutory dedications to provide for the ancillary expenses of
state government.
Page 8 of 9
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 201ES-20 ORIGINAL
HB NO. 12
Proposed law provides for the establishment and reestablishment of agency ancillary funds,
to be specifically known as internal service funds, auxiliary accounts, or enterprise funds for
certain state institutions, officials, and agencies. Requires the appropriated funds, to the
extent deposited, unless otherwise specified, to be used for working capital in the conduct
of business enterprises rendering public, auxiliary, and interagency services. Requires
receipts from the conduct of such businesses to be deposited to the credit of each ancillary
fund for FY 2020-2021. Requires all funds to be expended in accordance with public bid
laws.
Proposed law requires, except as otherwise provided, any fund equity resulting from prior
year operations be included as a resource of the fund from which it is derived. Provides that
all funds on deposit with the state treasury at the close of the fiscal year are authorized to be
transferred to each fund as equity for FY 2021-2022. Further provides that all unexpended
cash balances as of June 30, 2021, shall be remitted to the state treasurer on or before Aug.
14, 2021. Further provides that if not reestablished in the subsequent year's act, the agency
must liquidate all assets and return all advances no later than Aug. 14, 2021.
Proposed law provides that the program descriptions contained in the Act are not enacted
into law by virtue of their inclusion in the Act.
Proposed law provides that all money from federal, interagency, statutory dedications, or
self-generated revenues of an agency be deemed available for expenditures in the amounts
appropriated, and any increase in such revenues over the amounts appropriated shall only
be available for expenditure by the agency with approval of the division of administration
and the Joint Legislative Committee on the Budget (JLCB).
Proposed law provides that the number of employees approved for each agency may be
increased by the commissioner of administration, subject to JLCB approval, when
appropriate documentation is deemed valid.
Proposed law requires any agency with an appropriation level of $30 million or more to
include positions within its table of organization which perform internal auditing services,
including the position of a chief audit executive responsible for adhering to the Institute of
Internal Auditors, International Standards for the Professional Practice of Internal Auditing.
Proposed law directs the commissioner of administration to adjust performance objectives
and indicators contained in the Executive Budget Supporting Document to reflect the funds
appropriated and to report such adjustments to the JLCB by Aug. 15, 2020.
Proposed law provides that the treasurer shall invest excess cash funds, excluding those
arising from working capital advances, with the interest earned being credited to the account.
Proposed law authorizes the commissioner of administration to transfer functions, positions,
assets, and funds between and within departments in conjunction with the continuing
assessment of the existing staff, assets, contracts, and facilities of each department, agency,
program, or budget unit's information technology resources, and procurement resources, in
order to optimize resources and provide cost savings. Proposed law does not apply to the
Dept. of Culture, Recreation and Tourism, or any agency contained in Schedule 04, Elected
Officials, of the General Appropriation Act.
Effective July 1, 2020.
Page 9 of 9
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.