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 444 Original 2020 Regular Session Bagley
Abstract: Provides for the amount of certain severance tax collections remitted to parish governing
authorities and authorizes the legislature to increase the amount remitted to parish governing
authorities in law.
Present constitution provides that 1/5 of the severance tax on all natural resources other than sulphur,
lignite, or timber shall be remitted to the governing authority of the parish in which severance or
production occurs. The maximum amount remitted to the parish in which severance or production
occurs was initially set at $850,000, and beginning in July 2008, the maximum amount has increased
with inflation.
Present constitution provides that effective April 1, 2012, if the last official forecast of revenues
adopted for a fiscal year before the start of that fiscal year contains an estimate of severance tax
revenues from natural resources other than sulphur, lignite, or timber that exceeds the FY 2008-2009
actual severance tax revenues from such natural resources, then the maximum amount of severance
tax collected and remitted to local governing authorities shall increase to $1.85 million in the first
year and in all subsequent fiscal years is $2.85 million. In July of every year the maximum amount
remitted to the parish shall increase in accordance with inflation.
Proposed constitutional amendment retains the 1/5 allocation of severance tax to be remitted to
parish governing authorities in the present constitution.
Proposed constitutional amendment authorizes the legislature to increase this amount by law.
Proposed constitutional amendment removes the maximum amount of severance tax collections to
be remitted to parish governing authorities.
Present constitution further provides that in the event the maximum increases under these provisions,
at least 50% of the excess severance tax remitted to a parish be used only within the parish for the
same purposes as money received from the Parish Transportation Fund.
Present constitution also provides that after the allocations of severance tax to the Bond Security and
Redemption Fund, to the parish, to the Conservation Fund and to the Coastal Protection and
Restoration Fund have been satisfied, an amount equal to 50% of the revenues collected within the
Atchafalaya Basin, not to exceed $10 million, is to be deposited into the Atchafalaya Basin
Conservation Fund. The money in the fund shall be used exclusively to fund projects contained in
the state or federal basin master plans or an annual basin plan or to provide match for the Atchafalaya Basin Floodway System, Louisiana Project.
Proposed constitutional amendment repeals present constitution.
Provides for submission of the proposed amendment to the voters at the statewide election to be held
Nov. 3, 2020.
(Amends Const. Art. VII, §4(D)(3); Repeals Const. Art. VII, §4(D)(4))