SLS 21RS-216 ORIGINAL
2021 Regular Session
SENATE BILL NO. 238
BY SENATOR MILLIGAN
SCHOOLS. Provides with respect to the Caddo Educational Excellence Fund. (gov sig)
1 AN ACT
2 To amend and reenact R.S. 17:408.1(A) and (B), relative to the Caddo Educational
3 Excellence Fund; to provide for the investment of the funds; to provide for the
4 withdrawal of certain earnings; and to provide for related matters.
5 Notice of intention to introduce this Act has been published.
6 Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 17:408.1(A) and (B) are hereby amended and reenacted to read as
8 follows:
9 ยง408.1. Caddo Educational Excellence Fund; creation; investment; withdrawal
10 A.(1) There is hereby established the Caddo Educational Excellence Fund,
11 hereafter in this Section called the "fund", which shall be a permanent trust fund in
12 the official repository of the Caddo Parish School Board, held and invested on behalf
13 of the Caddo Parish School Board, the investment income of which may be
14 withdrawn by the Caddo Parish School Board during January of each calendar the
15 following fiscal year on its own warrant. All money thus withdrawn shall be
16 expended only as authorized in Subsection C of this Section.
17 (2) Withdrawals from the fund shall be limited as follows:
Page 1 of 3
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 238
SLS 21RS-216 ORIGINAL
1 (a) In the fiscal year following a year that the earnings of the fund were
2 greater than five percent, withdrawals from the fund shall not exceed five
3 percent of the fund.
4 (b) In the fiscal year following a year that the earnings of the fund were
5 between three and five percent, withdrawals from the fund shall not exceed the
6 rate of earnings from the previous year.
7 (c) In the fiscal year following a year that the earnings of the fund were
8 less than three percent, withdrawals from the fund shall not exceed three
9 percent of the fund.
10 B. Funds collected pursuant to R.S. 4:552(A) R.S. 27:93(A) and allocated
11 pursuant to R.S. 4:552(A)(2)(d) R.S. 27:93(A)(2)(d) shall be periodically transferred
12 to the official repository of the Caddo Parish School Board. The funds shall be
13 invested in the same manner as monies in the state general fund are invested as
14 post-employment benefits trusts are permitted to be invested pursuant to R.S.
15 33:5162. Earnings on principal may also be invested. However, the amount of
16 earnings shall be kept account of separately from fund principal and shall be
17 available for the school board to withdraw as provided in this Section.
18 * * *
19 Section 2. This Act shall become effective upon signature by the governor or, if not
20 signed by the governor, upon expiration of the time for bills to become law without signature
21 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
22 vetoed by the governor and subsequently approved by the legislature, this Act shall become
23 effective on the day following such approval.
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Cheryl Serrett.
DIGEST
SB 238 Original 2021 Regular Session Milligan
Present law establishes the Caddo Educational Excellence Fund and provides for the
investment and withdrawals from the fund.
Proposed law retains present law further limits the withdrawal of the earnings income as
follows:
Page 2 of 3
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 238
SLS 21RS-216 ORIGINAL
(1)In the fiscal year following a year that the earnings of the fund were greater than five
percent, withdrawals from the fund shall not exceed five percent of the fund.
(2)In the fiscal year following a year that the earnings of the fund were between three
and five percent, withdrawals from the fund shall not exceed the rate of earnings
from the previous year.
(3)In the fiscal year following a year that the earnings of the fund were less than three
percent, withdrawals from the fund shall not exceed three percent of the fund.
Present law provides that the funds shall be invested in the same manner as monies in the
state general fund.
Proposed law provides instead that monies shall be invested in the same manner as
post-employment benefits trusts are permitted to be invested in law.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 17:408.1(A) and (B))
Page 3 of 3
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.