HLS 20RS-342 ENGROSSED 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) of the Constitution of Louisiana, relative 3 to the expenditure limit; to provide for the method of determining the expenditure 4 limit; to limit the growth of the expenditure limit; to provide for submission of the 5 proposed amendment to the electors; and to provide for related matters. 6 Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members 7elected to each house concurring, that there shall be submitted to the electors of the state of 8Louisiana, for their approval or rejection in the manner provided by law, a proposal to 9amend Article VII, Section 10(C)(1) of the Constitution of Louisiana, to read as follows: 10 §10. Expenditure of State Funds 11 Section 10. 12 * * * 13 (C) Expenditure Limit. (1) The legislature shall provide for the 14 determination of an expenditure limit for each fiscal year to be established during the 15 first quarter of the calendar year for the next fiscal year. However, the expenditure 16 limit for the 1991-1992 Fiscal Year shall be the actual appropriations from the state 17 general fund and dedicated funds for that year except funds allocated by Article VII, 18 Section 4, Paragraphs (D) and (E). For subsequent fiscal years, the limit shall not 19 exceed the expenditure limit for the current fiscal year plus an amount equal to that 20 limit times a positive growth factor be as provided for by law. The growth factor is Page 1 of 3 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 20RS-342 ENGROSSED HB NO. 464 1 the average annual percentage rate of change of personal income for Louisiana as 2 defined and reported by the United States Department of Commerce for the three 3 calendar years prior to the fiscal year for which the limit is calculated legislature 4 shall establish by law a procedure to determine the expenditure limit. The procedure 5 shall not provide for growth in the expenditure limit of more than five percent in any 6 year. Once established by law, the procedure to determine the expenditure limit shall 7 not be changed except by a law enacted by two-thirds of the elected members of each 8 house of the legislature. 9 * * * 10 Section 2. Be it further resolved that this proposed amendment shall be submitted 11to the electors of the state of Louisiana at the statewide election to be held on November 3, 122020. 13 Section 3. Be it further resolved that on the official ballot to be used at the election, 14there shall be printed a proposition, upon which the electors of the state shall be permitted 15to vote YES or NO, to amend the Constitution of Louisiana, which proposition shall read as 16follows: 17 Do you support an amendment to limit the growth of the expenditure limit 18 for the state general fund and dedicated funds and to remove the calculation 19 of its growth factor from the Constitution? (Amends Article VII, Section 20 10(C)(1)) 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 Engrossed 2020 Regular Session Beaullieu Abstract: Requires the legislature to establish a procedure to determine the annual state expenditure limit and caps the growth of the limit at five percent. 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. Page 2 of 3 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 20RS-342 ENGROSSED HB NO. 464 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 five percent. 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. 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)) Summary of Amendments Adopted by House The Committee Amendments Proposed by House Committee on Appropriations to the original bill: 1. Remove provision of proposed law that would have allowed the legislature to change the expenditure limit when not in session by mail-in ballot with consent of 2/3 of the membership of each house. Page 3 of 3 CODING: Words in struck through type are deletions from existing law; words underscored are additions.