HLS 20RS-342 ORIGINAL 2020 Regular Session HOUSE BILL NO. 464 BY REPRESENTATIVE BEAULLIEU BUDGETARY CONTROLS: (Constitutional Amendment) Provides for changes in the expenditure limit calculation 1 A JOINT RESOLUTION 2Proposing to amend Article VII, Section 10(C)(1) and (2) of the Constitution of Louisiana, 3 relative to the expenditure limit; to provide for the method of determining the 4 expenditure limit; to limit the growth of the expenditure limit; to provide for 5 submission of the proposed amendment to the electors; and to provide for related 6 matters. 7 Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members 8elected to each house concurring, that there shall be submitted to the electors of the state of 9Louisiana, for their approval or rejection in the manner provided by law, a proposal to 10amend Article VII, Section 10(C)(1) and (2) of the Constitution of Louisiana, to read as 11follows: 12 §10. Expenditure of State Funds 13 Section 10. 14 * * * 15 (C) Expenditure Limit. (1) The legislature shall provide for the 16 determination of an expenditure limit for each fiscal year to be established during the 17 first quarter of the calendar year for the next fiscal year. However, the expenditure 18 limit for the 1991-1992 Fiscal Year shall be the actual appropriations from the state 19 general fund and dedicated funds for that year except funds allocated by Article VII, 20 Section 4, Paragraphs (D) and (E). For subsequent fiscal years, the limit shall not Page 1 of 3 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 20RS-342 ORIGINAL HB NO. 464 1 exceed the expenditure limit for the current fiscal year plus an amount equal to that 2 limit times a positive growth factor be as provided for by law. The growth factor is 3 the average annual percentage rate of change of personal income for Louisiana as 4 defined and reported by the United States Department of Commerce for the three 5 calendar years prior to the fiscal year for which the limit is calculated legislature 6 shall establish by law a procedure to determine the expenditure limit. The procedure 7 shall not provide for growth in the expenditure limit of more than five percent in any 8 year. Once established by law, the procedure to determine the expenditure limit shall 9 not be changed except by a law enacted by two-thirds of the elected members of each 10 house of the legislature. 11 (2) The expenditure limit may be changed in any fiscal year by a favorable 12 vote of consent of two-thirds of the elected members of each house. Any If the 13 legislature is in session, any such change in the expenditure limit shall be approved 14 by passage of a specific legislative instrument which clearly states the intent to 15 change the limit. If the legislature is not in session, the two-thirds requirement may 16 be satisfied upon obtaining written consent of two-thirds of the elected members of 17 each house in a manner provided by law. 18 * * * 19 Section 2. Be it further resolved that this proposed amendment shall be submitted 20to the electors of the state of Louisiana at the statewide election to be held on November 3, 212020. 22 Section 3. Be it further resolved that on the official ballot to be used at the election, 23there shall be printed a proposition, upon which the electors of the state shall be permitted 24to vote YES or NO, to amend the Constitution of Louisiana, which proposition shall read as 25follows: 26 Do you support an amendment to limit the growth of the expenditure limit 27 for the state general fund and dedicated funds and to remove the calculation 28 of its growth factor from the Constitution? (Amends Article VII, Section 29 10(C)(1) and (2)) Page 2 of 3 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 20RS-342 ORIGINAL HB NO. 464 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 464 Original 2020 Regular Session Beaullieu Abstract: Limits the annual growth of the expenditure limit to 5%, allows the procedure for the expenditure limit to be established by law that requires enactment of a law by 2/3 vote of each house of the legislature to change, and allows for written consent to change the expenditure limit if the legislature is not in session. Present constitution provides for the determination of the expenditure limit for the next fiscal year to be determined in the first quarter of the calendar year for the current fiscal year. The expenditure limit for the next fiscal year is based on the expenditure limit for the current fiscal year times a growth factor based on the change of personal income in the state. Present constitution defines the growth factor as the average annual percentage rate of change of personal income for La. as defined and reported by the U.S. Dept. of Commerce for the three calendar years prior to the fiscal year for which the limit is calculated. Proposed constitutional amendment instead requires the legislature to establish a procedure to determine the expenditure limit, which shall not provide for growth of more than 5%. Once established, procedure shall not be changed except by a law enacted by a 2/3 vote of the elected members of each house of the legislature. Present constitution authorizes the legislature to change the expenditure limit any fiscal year by a favorable vote of 2/3 of the elected members of each house by a specific legislative instrument. Proposed constitutional amendment authorizes the legislature to change the expenditure limit with written consent of 2/3 of the elected members of each house when the legislature is not in session. Provides for submission of the proposed amendment to the voters at the statewide election to be held Nov. 3, 2020. (Amends Const. Art. VII, §10(C)(1) and (2)) Page 3 of 3 CODING: Words in struck through type are deletions from existing law; words underscored are additions.