ENROLLED
ACT No. 11
2020 First Extraordinary Session
HOUSE BILL NO. 12
BY REPRESENTATIVES ZERINGUE AND THOMPSON
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 for Fiscal Year 2020-2021; 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 current fiscal year. All funds appropriated herein shall
16 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.
20 B. Funds on deposit with the state treasury at the close of the fiscal year are
21 authorized to be transferred to each fund respectively, as equity for the next fiscal year.
22 All unexpended cash balances as of June 30, 2021, shall be remitted to the state
23 treasurer on or before August 14, 2021. If not reestablished in the subsequent year's Act, the
24 agency must liquidate all assets and return all advances no later than August 14, 2021.
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1 C. The program descriptions contained in this Act are not part of the law and are not
2 enacted into law by virtue of their inclusion into this Act.
3 Section 3. All money from federal, interagency transfers, statutory dedications, or
4 fees and self-generated revenues shall be available for expenditure in the amounts herein
5 appropriated.
6 Any increase in such revenues shall be available for allotment and expenditure by
7 an agency on approval of an increase in the appropriation by the commissioner of
8 administration and the Joint Legislative Committee on the Budget. Any increase in such
9 revenues for an agency without an appropriation from the respective revenue source shall
10 be incorporated into the agency's appropriation on approval of the commissioner of
11 administration and the Joint Legislative Committee on the Budget.
12 Section 4.A. The figures in parentheses following the designation of a budget entity
13 are the total authorized positions and authorized other charges positions for that entity. The
14 number of employees approved for each agency, as a result of the passage of this Act, may
15 be increased by the commissioner of administration when sufficient documentation is
16 presented and the request is deemed valid. However, any request which exceeds five
17 positions shall be approved by the commissioner of administration and the Joint Legislative
18 Committee on the Budget.
19 B. The budget request of any agency with an appropriation level of thirty million
20 dollars or more shall include within its existing table of organization positions which
21 perform the function of internal auditing, including the position of a chief audit executive.
22 The chief audit executive shall be responsible for ensuring that the internal audit function
23 adheres to the Institute of Internal Auditors, International Standards for the Professional
24 Practice of Internal Auditing. The chief audit executive shall maintain organizational
25 independence in accordance with these standards and shall have direct and unrestricted
26 access to the commission, board, secretary, or equivalent head of the agency. The chief
27 audit executive shall certify to the commission, board, secretary, or equivalent head of the
28 agency that the internal audit function conforms to the Institute of Internal Auditors,
29 International Standards for the Professional Practice of Internal Auditing.
30 Section 5. All key and supporting performance objectives and indicators for the
31 departments, agencies, programs, and budget units contained in the Governor’s Proposed
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1 Budget Supporting Document shall be adjusted by the commissioner of administration to
2 reflect the funds appropriated therein. The commissioner of administration shall report on
3 these adjustments to the Joint Legislative Committee on the Budget each year by August 15.
4 Section 6. The following definition is provided for the terms of this Act: "Working
5 capital" shall be considered the excess of current assets over current liabilities on an accrual
6 basis.
7 Section 7. Should any section, subsection, clause, sentence, phrase, or part of the Act
8 for any reason be held, deemed, or construed to be unconstitutional or invalid, such decisions
9 shall not affect the remaining provisions of the Act, and the legislature hereby declares that
10 it would have passed the Act, and each section, subsection, clause, sentence, phrase, or part
11 thereof, irrespective of the fact that one or more of the sections, subsections, clauses,
12 sentences, phrases, or parts thereof, is declared unconstitutional or invalid. To this end, the
13 provisions of this Act are hereby declared severable.
14 Section 8. Internal Service Funds. These funds account for the financing of goods
15 or services provided by one department or agency to other departments or agencies of the
16 governmental unit, or to other governmental units, on a cost-reimbursement basis. Excess
17 cash funds, excluding cash funds arising from working capital advances, shall be invested
18 by the state treasurer with the interest proceeds therefrom credited to each account and shall
19 not be transferred to the state general fund.
20 Section 9. In conjunction with the continuing assessment of the existing staff, assets,
21 contracts, and facilities of each department, agency, program or budget unit’s information
22 technology resources and procurement resources, upon completion of this assessment and
23 to the extent optimization of these resources will result in the projected cost savings through
24 staff reductions, realization of operational efficiencies, cost avoidance, and elimination of
25 asset duplication, the commissioner of administration is authorized to transfer the functions,
26 positions, assets, and funds from any other department, agency, program, or budget units
27 related to these optimizations to a different department. The provisions of this Section shall
28 not apply to the Department of Culture, Recreation and Tourism, or any agency contained
29 in Schedule 04, Elected Officials, of the General Appropriation Act.
30 Section 10. Notwithstanding any provision of law to the contrary, no funds
31 appropriated herein shall be expended for salary adjustments in the form of Market
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1 Adjustments as provided in Civil Service Rule 6.32 or pay raises for unclassified employees.
2 The legislature does hereby urge and request that the State Civil Service Commission
3 suspend Market Adjustments effective July 1, 2020 pursuant to the provisions of Civil
4 Service Rule 2.10, and does further urge and request the governor to encourage the State
5 Civil Service Commission to suspend the Market Adjustments effective July 1, 2020. The
6 legislature does hereby urge and request the governor to issue an executive order prohibiting
7 the issuance of pay raises for unclassified employees. The commissioner of administration
8 is further authorized and directed to reduce the appropriations contained herein by
9 $2,229,753 from Interagency Transfers and by $367,841 from Fees and Self-generated
10 Revenues.
11 SCHEDULE 21
12 ANCILLARY APPROPRIATIONS
13 21-800 OFFICE OF GROUP BENEFITS
14 EXPENDITURES: FY 20 EOB FY 21 REC
15 State Group Benefits -
16 Authorized Positions (42) (42)
17 $1,561,180,762$1,584,274,843
18 Program Description: Provides for the administration of group health and accidental
19 insurance and group life insurance for current and former state employees and other
20 participating groups.
21 TOTAL EXPENDITURES $1,561,180,762$1,584,274,843
22 MEANS OF FINANCE:
23 State General Fund by:
24 Interagency Transfers $ 198,733$ 198,733
25 Fees & Self-generated Revenues $1,560,982,029$1,584,076,110
26 TOTAL MEANS OF FINANCING $1,561,180,762$1,584,274,843
27 21-804 OFFICE OF RISK MANAGEMENT
28 EXPENDITURES: FY 20 EOB FY 21 REC
29 Risk Management -
30 Authorized Positions (38) (41)
31 $204,364,446$217,558,737
32 Program Description: Provides for the overall executive leadership and management of
33 the office, support services, policy analysis, management direction of the state's self-
34 insurance program; provides funding for the payment of losses on medical, malpractice,
35 property, comprehensive general liability, personal injury, automobile liability, automobile
36 physical damage, bonds, crime, aviation, wet marine boiler and machinery and
37 miscellaneous tort claims; provides funding for the payment of contracts issued for
38 professional legal defense of claims made against the state; provides funding for the
39 reimbursement of the Division of Risk Litigation in the Office of the Attorney General for
40 costs incurred for professional legal defense of claims made against the state.
41 TOTAL EXPENDITURES $204,364,446$217,558,737
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1 MEANS OF FINANCE:
2 State 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
8 Provided, however, that from the monies appropriated to the Risk Management Program, the
9 amount of $20,342,890 shall be allocated for payments to the Department of Justice.
10 21-806 LOUISIANA PROPERTY ASSISTANCE
11 EXPENDITURES: FY 20 EOB FY 21 REC
12 Louisiana Property Assistance -
13 Authorized Positions (37) (37)
14 $ 7,609,762$ 7,451,981
15 Program Description: Provides for the accountability of the state's movable property
16 through the development and implementation of sound management practices.
17 TOTAL EXPENDITURES $ 7,609,762$ 7,451,981
18 MEANS OF FINANCE:
19 State 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
23 21-807 LOUISIANA FEDERAL PROPERTY ASSISTANCE AG ENCY
24 EXPENDITURES: FY 20 EOB FY 21 REC
25 Federal Property Assistance -
26 Authorized Positions (9) (9)
27 $ 3,331,315$ 3,566,313
28 Program Description: Seeks to assure the fair and equitable distribution of federal
29 property allocated to Louisiana by the General Services Administration to eligible Louisiana
30 donees.
31 TOTAL EXPENDITURES $ 3,331,315$ 3,566,313
32 MEANS OF FINANCE:
33 State 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
37 21-811 PRISON ENTERPRISES
38 EXPENDITURES: FY 20 EOB FY 21 REC
39 Prison Enterprises -
40 Authorized Positions (72) (72)
41 $33,741,043$33,592,587
42 Program Description: Utilizes the resources of the Department of Public Safety and
43 Corrections in the production of food, fiber, and other necessary items used by offenders in
44 order to lower the cost of incarceration; provides products and services to state agencies
45 and agencies of parishes, municipalities, and other political subdivisions; and provides work
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1 opportunities for offenders. Prison Enterprises conducts both industry operations and
2 agriculture operations.
3 TOTAL EXPENDITURES $33,741,043$33,592,587
4 MEANS OF FINANCE:
5 State General Fund by:
6 Interagency Transfers $24,837,346$24,860,496
7 Fees & Self-generated Revenues $ 8,903,697$ 8,732,091
8 TOTAL MEANS OF FINANCING $33,741,043$33,592,587
9 21-815 OFFICE OF TECHNOLOGY SERVICES
10 EXPENDITURES: FY 20 EOB FY 1 REC
11 Technology Services -
12 Authorized Positions (835) (828)
13 Authorized Other Charges Positions (9) (9)
14 $395,384,626$398,758,450
15 Program Description: The mission of the Office of Technology Services (OTS) is to
16 establish competitive, cost-effective technology systems and services while acting as the sole
17 centralized customer for the acquisition, billing and record keeping of those technology
18 services. OTS shall charge respective user agencies for the cost of the technology and
19 services provided including the cost of the operation of the office in a fair, equitable, and
20 consistent manner, in full compliance with State of Louisiana statutes.
21 TOTAL EXPENDITURES $395,384,626$398,758,450
22 MEANS OF FINANCE:
23 State General Fund by:
24 Interagency Transfers $393,866,153$397,239,977
25 Fees and Self-generated Revenues $ 1,518,473$ 1,518,473
26 TOTAL MEANS OF FINANCING $395,384,626$398,758,450
27 21-816 DIVISION OF ADMINISTRATIVE LAW
28 EXPENDITURES: FY 20 EOB FY 21 REC
29 Administration -
30 Authorized Positions (58) (58)
31 $ 8,498,129$ 8,475,791
32 Program Description: Provides a neutral forum for handling administrative hearings for
33 certain state agencies, with respect for the dignity of individuals and their due process
34 rights.
35 TOTAL EXPENDITURES $ 8,498,129$ 8,475,791
36 MEANS OF FINANCE:
37 State General Fund by:
38 Interagency Transfers $ 8,469,232$ 8,446,894
39 Fees & Self-generated Revenues $ 28,897$ 28,897
40 TOTAL MEANS OF FINANCING $ 8,498,129$ 8,475,791
41 21-820 OFFICE OF STATE PROCUREMENT
42 EXPENDITURES: FY 20 EOB FY 21 REC
43 State Procurement -
44 Authorized Positions (92) (99)
45 $10,895,092$12,319,548
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1 Program Description: The mission of the Office of State Procurement is to provide cost-
2 effective services that satisfy the needs of approved governmental units of the State of
3 Louisiana through the management of products and services.
4 TOTAL EXPENDITURES $10,895,092$12,319,548
5 MEANS OF FINANCE:
6 State General Fund by:
7 Interagency Transfers $ 5,447,546$ 5,447,546
8 Fees & Self-generated Revenues $ 5,447,546$ 6,872,002
9 TOTAL MEANS OF FINANCING $10,895,092$12,319,548
10 21-829 OFFICE OF AIRCRAFT SERVICES
11 EXPENDITURES: FY 20 EOB FY 21 REC
12 Flight Maintenance -
13 Authorized Positions (3) (3)
14 $ 2,264,646$ 2,328,385
15 Program Description: The mission of the Office of Aircraft Services is to manage the
16 overall maintenance and provide all needed and required support for safe, proper, and
17 economic operation of the State’s various aircraft. Flight Maintenance Operations ensures
18 flight safety, maintains high safety standards while minimizing aircraft downtime for repairs,
19 and provides high quality, efficient, and economical repair and fueling services for state-
20 operated aircraft.
21 TOTAL EXPENDITURES $ 2,264,646$ 2,328,385
22 MEANS OF FINANCE:
23 State General Fund by:
24 Interagency Transfers $ 1,835,431$ 2,149,170
25 Fees & Self-generated Revenues $ 429,215$ 179,215
26 TOTAL MEANS OF FINANCING $ 2,264,646$ 2,328,385
27 21-860 CLEAN WATER STATE REVOLVING FUND
28 EXPENDITURES: FY 20 EOB FY 21 REC
29 Clean Water State Revolving Fund $90,000,000$110,000,000
30 Program Description: Helps individual citizens and local governments participate in
31 environmental programs by assisting municipalities to finance and construct wastewater
32 treatment works. The Clean Water State Revolving Fund is used by the Department of
33 Environmental Quality to assist recipients of Environmental Protection Agency and
34 construction grants in providing project inspection, construction management, and overall
35 program management services, required for the completion of the Environmental Protection
36 Agency program, as outlined in the management grant. Regional meetings are held in the
37 state’s eight planning districts with one-on-one follow-up meetings to make municipalities
38 more aware of the program’s benefits and requirements.
39 TOTAL EXPENDITURES $90,000,000$110,000,000
40 MEANS OF FINANCE:
41 State General Fund by:
42 Statutory Dedications:
43 Clean Water State Revolving Fund $90,000,000$110,000,000
44 TOTAL MEANS OF FINANCING $90,000,000$110,000,000
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1 21-861 DRINKING WATER REVOLVING LOAN FUND
2 EXPENDITURES: FY 20 EOB FY 21 REC
3 Drinking Water Revolving Loan Fund $34,000,000$34,000,000
4 Program Description: Assist public water systems in financing needed drinking water
5 infrastructure improvements (e.g. treatment plant, distribution main replacement, storage
6 facilities, new wells). The Drinking Water Revolving Loan Fund provides assistance in the
7 form of low-interest loans and technical assistance to public water systems in Louisiana to
8 assist them with complying with state and federal drinking water regulations, ensuring that
9 their customers are provided with safe drinking water thereby protecting the public health.
10 TOTAL EXPENDITURES $34,000,000$34,000,000
11 MEANS OF FINANCE:
12 State General Fund by:
13 Statutory Dedication:
14 Drinking Water Revolving Loan Fund $34,000,000$34,000,000
15 TOTAL MEANS OF FINANCING $34,000,000$34,000,000
16 Payable out of the State General Fund by
17 Statutory Dedications out of the Drinking
18 Water Revolving Loan Fund to the Drinking
19 Water Revolving Loan Fund for projects to
20 improve water infrastructure $13,988,458
21 Section 11. This Act shall become effective on July 1, 2020.
SPEAKER OF THE HOUSE OF REPRESENTATIVES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED:
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