HLS 20RS-234 ORIGINAL
2020 Regular Session
HOUSE BILL NO. 267
BY REPRESENTATIVE GARY CARTER
FUNDS/FUNDING: (Constitutional Amendment) Allows for the use of the Budget
Stabilization Fund for state costs associated with a federally declared disaster
1 A JOINT RESOLUTION
2Proposing to amend Article VII, Section 10.3(C)(3) and (4) of the Constitution of Louisiana
3 and to add Article VII, Section 10.3(A)(5) and (C)(5) of the Constitution of
4 Louisiana, to provide for deposits into and the uses of the Budget Stabilization Fund;
5 to authorize the use of the fund for state costs associated with a disaster declared by
6 the federal government; to provide for deposit into the fund of certain money
7 received by the state from the federal government for the reimbursement of costs
8 associated with such a disaster; to provide for certain limitations and requirements;
9 to provide for submission of the proposed amendment to the electors; and to provide
10 for related matters.
11 Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members
12elected to each house concurring, that there shall be submitted to the electors of the state of
13Louisiana, for their approval or rejection in the manner provided by law, a proposal to
14amend Article VII, Section 10.3(C)(3) and (4) of the Constitution of Louisiana and to add
15Article VII, Section 10.3(A)(5) and (C)(5) of the Constitution of Louisiana, to read as
16follows:
17 §10.3. Budget Stabilization Fund
18 Section 10.3.(A) There is hereby established in the state treasury a Budget
19 Stabilization Fund hereinafter referred to as the fund. Money shall be deposited in
20 the fund as follows:
21 * * *
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HB NO. 267
1 (5) Money received by the state from the federal government for the
2 reimbursement of costs associated with a federally declared disaster, not to exceed
3 the amount of costs appropriated out of the fund pursuant to Subparagraph (C)(3) of
4 this Section.
5 * * *
6 (C) The money in the fund shall not be available for appropriation or use
7 except under the following conditions:
8 * * *
9 (3) If there is a disaster in the state that is declared a disaster by the federal
10 government, up to one-third of the fund, not to exceed the state costs associated with
11 the disaster, may be appropriated after the consent of two-thirds of the elected
12 members of each house of the legislature. Between sessions of the legislature, the
13 appropriation may be made only with written consent of two-thirds of the elected
14 members of each house of the legislature. Any reimbursement by the federal
15 government for the costs associated with the same disaster shall be deposited into the
16 fund, not to exceed the amount of costs appropriated out of the fund pursuant to this
17 Subparagraph.
18 (4) In no event shall the amount included in the official forecast for the next
19 fiscal year pursuant to Subparagraph (1) of this Paragraph, plus the amount
20 appropriated in the current fiscal year pursuant to Subparagraph (2) of this
21 Paragraph, plus the amount appropriated pursuant to Subparagraph (3) of this
22 Paragraph exceed one-third of the fund balance at the beginning of the current fiscal
23 year.
24 (4) (5) No appropriation or deposit to the fund shall be made if such
25 appropriation or deposit would cause the balance in the fund to exceed four percent
26 of total state revenue receipts for the previous fiscal year.
27 Section 2. Be it further resolved that this proposed amendment shall be submitted
28to the electors of the state of Louisiana at the statewide election to be held on November 3,
292020.
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HB NO. 267
1 Section 3. 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 allow for the use of the Budget
6 Stabilization Fund, also known as the Rainy Day Fund, for state costs
7 associated with a disaster declared by the federal government? (Amends
8 Article VII, Section 10.3(C)(3) and (4); Adds Article VII, Section 10.3(A)(5)
9 and (C)(5))
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 267 Original 2020 Regular Session Gary Carter
Abstract: Authorizes the use of the Budget Stabilization Fund, also known as the Rainy
Day Fund, for the state's share of the costs associated with a federally declared
disaster.
Present constitution establishes the Budget Stabilization Fund and provides for various
deposits into the fund including 25% of any nonrecurring revenues and mineral revenues
collected by the state over a base amount of $750 million. Further authorizes the legislature
to increase the base amount every 10 years by a law enacted by 2/3 of the elected members
of each house of the legislature. Increases provided for in law in 2004 and 2015 have
increased the base amount to $950 million.
Present constitution provides for the fund to be used only under the following conditions,
after consent of 2/3 of the elected members of each house of the legislature:
(1)If the official forecast of recurring money for the next fiscal year is less than the
official forecast of recurring money for the current fiscal year, the difference, not to
exceed 1/3 of the fund shall be incorporated into the next year's official forecast.
(2)If a deficit for the current fiscal year is projected due to a decrease in the official
forecast, an amount equal to 1/3 of the fund not to exceed the projected deficit may
be appropriated.
Proposed constitutional amendment provides for the use of the fund for the state costs
associated with a federally declared disaster, not to exceed an amount equal to 1/3 of the
fund, after consent of 2/3 of the elected members of each house of the legislature.
Present constitution provides for deposits into the fund including monies in excess of the
expenditure limit, mineral revenues, and nonrecurring revenues.
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HB NO. 267
Proposed constitutional amendment retains the deposits into the fund in present constitution
and adds the deposit of federal funds received by the state for the reimbursement of disaster
costs, not to exceed the amount of the costs appropriated out of the fund.
Present constitution prohibits the amount included in the official forecast for the next fiscal
year and the amount appropriated for the current fiscal year from exceeding 1/3 of the fund
balance at the beginning of the current fiscal year. Proposed constitutional amendment
prohibits the combined amount of the fund incorporated in the official forecast in the next
fiscal year, in the current fiscal year, and as a result of a federally declared disaster, from
exceeding 1/3 of the balance at the beginning of the current fiscal year.
Provides for submission of the proposed amendment to the voters at the statewide election
to be held November 3, 2020.
(Amends Const. Art. VII, §10.3(C)(3) and (4); Adds Const. Art. VII, §10.3(A)(5) and (C)(5))
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