HLS 22RS-316 ORIGINAL
2022 Regular Session
HOUSE BILL NO. 465
BY REPRESENTATIVE ZERINGUE
APPROPRIATIONS/ANCILLARY: Provides for the ancillary expenses of state
government
1 AN ACT
2To provide for the establishment and reestablishment of agency ancillary funds, to be
3 specifically known as internal service funds, auxiliary accounts, or enterprise funds
4 for certain state institutions, officials, and agencies; to provide for appropriation of
5 funds for Fiscal Year 2022-2023; to provide for an effective date; and to regulate the
6 administration of said funds.
7Be it enacted by the Legislature of Louisiana:
8 Section 1. There are hereby appropriated the amounts shown below, which shall be
9payable out of the state general fund, to the extent of funds deposited, unless otherwise
10specified, for the establishment and reestablishment of agency ancillary funds which shall
11be specifically known as internal service funds, auxiliary accounts, or enterprise funds. The
12monies in each fund shall be used for working capital in the conduct of business enterprises
13rendering public service, auxiliary service, and interagency service.
14 In the conduct of each such business, receipts shall be deposited in the state treasury
15and disbursements made by the state treasurer to the extent of the amount deposited to the
16credit of each ancillary fund, for the current fiscal year. All funds appropriated herein shall
17be expended in compliance with the public bid laws of the state.
18 Section 2.A. Except as otherwise provided by law or as herein otherwise provided,
19any fund equity resulting from prior year operations shall be included as a resource of the
20fund from which the ancillary fund is directly or indirectly derived.
21 B. Funds on deposit with the state treasury at the close of the fiscal year are
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1authorized to be transferred to each fund respectively, as equity for the next fiscal year.
2 All unexpended cash balances as of June 30, 2023, shall be remitted to the state
3treasurer on or before August 14, 2023. If not reestablished in the subsequent year's Act, the
4agency must liquidate all assets and return all advances no later than August 14, 2023.
5 C. The program descriptions contained in this Act are not part of the law and are not
6enacted into law by virtue of their inclusion into this Act.
7 Section 3. All money from federal, interagency transfers, statutory dedications, or
8fees and self generated revenues shall be available for expenditure in the amounts herein
9appropriated.
10 Any increase in such revenues shall be available for allotment and expenditure by
11an agency on approval of an increase in the appropriation by the commissioner of
12administration and the Joint Legislative Committee on the Budget. Any increase in such
13revenues for an agency without an appropriation from the respective revenue source shall
14be incorporated into the agency's appropriation on approval of the commissioner of
15administration and the Joint Legislative Committee on the Budget.
16 Section 4.A. The figures in parentheses following the designation of a budget entity
17are the total authorized positions and authorized other charges positions for that entity. The
18number of employees approved for each agency, as a result of the passage of this Act, may
19be increased by the commissioner of administration when sufficient documentation is
20presented and the request is deemed valid. However, any request which exceeds five
21positions shall be approved by the commissioner of administration and the Joint Legislative
22Committee on the Budget.
23 B. The budget request of any agency with an appropriation level of thirty million
24dollars or more shall include within its existing table of organization positions which
25perform the function of internal auditing, including the position of a chief audit executive.
26The chief audit executive shall be responsible for ensuring that the internal audit function
27adheres to the Institute of Internal Auditors, International Standards for the Professional
28Practice of Internal Auditing. The chief audit executive shall maintain organizational
29independence in accordance with these standards and shall have direct and unrestricted
30access to the commission, board, secretary, or equivalent head of the agency. The chief
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HB NO. 465
1audit executive shall certify to the commission, board, secretary, or equivalent head of the
2agency that the internal audit function conforms to the Institute of Internal Auditors,
3International Standards for the Professional Practice of Internal Auditing.
4 Section 5. All key and supporting performance objectives and indicators for the
5departments, agencies, programs, and budget units contained in the Governor’s Executive
6Budget Supporting Document shall be adjusted by the commissioner of administration to
7reflect the funds appropriated therein. The commissioner of administration shall report on
8these adjustments to the Joint Legislative Committee on the Budget each year by August
9fifteenth.
10 Section 6. The following definition is provided for the terms of this Act: "Working
11capital" shall be considered the excess of current assets over current liabilities on an accrual
12basis.
13 Section 7. Should any section, subsection, clause, sentence, phrase, or part of the Act
14for any reason be held, deemed, or construed to be unconstitutional or invalid, such decisions
15shall not affect the remaining provisions of the Act, and the legislature hereby declares that
16it would have passed the Act, and each section, subsection, clause, sentence, phrase, or part
17thereof, irrespective of the fact that one or more of the sections, subsections, clauses,
18sentences, phrases, or parts thereof, is declared unconstitutional or invalid. To this end, the
19provisions of this Act are hereby declared severable.
20 Section 8. Internal Service Funds. These funds account for the financing of goods
21or services provided by one department or agency to other departments or agencies of the
22governmental unit, or to other governmental units, on a cost-reimbursement basis. Excess
23cash funds, excluding cash funds arising from working capital advances, shall be invested
24by the state treasurer with the interest proceeds therefrom credited to each account and shall
25not be transferred to the state general fund.
26 Section 9. In conjunction with the continuing assessment of the existing staff, assets,
27contracts, and facilities of each department, agency, program or budget unit’s information
28technology resources and procurement resources, upon completion of this assessment and
29to the extent optimization of these resources will result in the projected cost savings through
30staff reductions, realization of operational efficiencies, cost avoidance, and elimination of
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HB NO. 465
1asset duplication, the commissioner of administration is authorized to transfer the functions,
2positions, assets, and funds from any other department, agency, program, or budget units
3related to these optimizations to a different department. The provisions of this Section shall
4not apply to the Department of Culture, Recreation and Tourism, or any agency contained
5in Schedule 04, Elected Officials, of the General Appropriation Act.
6 SCHEDULE 21
7 ANCILLARY APPROPRIATIONS
821-800 OFFICE OF GROUP BENEFITS
9EXPENDITURES: FY 22 EOB FY 23 REC
10State Group Benefits -
11Authorized Positions (42) (56)
12 Expenditures $1,809,133,191$1,809,705,404
13Program Description: Provides for the administration of group health and accidental
14insurance and group life insurance for current and former state employees and other
15participating groups.
16 TOTAL EXPENDITURES $1,809,133,191$1,809,705,404
17MEANS OF FINANCE:
18State General Fund by:
19 Interagency Transfers $ 598,733$ 598,733
20 Fees & Self-generated Revenues $1,808,534,458$1,809,106,671
21 TOTAL MEANS OF FINANCING $1,809,133,191$1,809,705,404
2221-804 OFFICE OF RISK MANAGEMENT
23EXPENDITURES: FY 22 EOB FY 23 REC
24Risk Management -
25Authorized Positions (41) (41)
26 Expenditures $358,342,481$324,218,483
27Program Description: Provides for the overall executive leadership and management of
28the office, support services, policy analysis, management direction of the state's self-
29insurance program; provides funding for the payment of losses on medical, malpractice,
30property, comprehensive general liability, personal injury, automobile liability, automobile
31physical damage, bonds, crime, aviation, wet marine boiler and machinery and
32miscellaneous tort claims; provides funding for the payment of contracts issued for
33professional legal defense of claims made against the state; provides funding for the
34reimbursement of the Division of Risk Litigation in the Office of the Attorney General for
35costs incurred for professional legal defense of claims made against the state.
36 TOTAL EXPENDITURES $358,342,481$324,218,483
37MEANS OF FINANCE:
38State General Fund by:
39 Interagency Transfers $265,682,662$275,551,395
40 Fees & Self-generated Revenues $90,659,819$46,667,088
41 Statutory Dedications:
42 Future Medical Care Fund $ 2,000,000$ 2,000,000
43 TOTAL MEANS OF FINANCING $358,342,481$324,218,483
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121-806 LOUISIANA PROPERTY ASSISTANCE
2EXPENDITURES: FY 22 EOB FY 23 REC
3Louisiana Property Assistance -
4Authorized Positions (37) (37)
5 Expenditures $ 7,747,236$ 8,692,368
6Program Description: Provides for the accountability of the state's movable property
7through the development and implementation of sound management practices.
8 TOTAL EXPENDITURES $ 7,747,236$ 8,692,368
9MEANS OF FINANCE:
10State General Fund by:
11 Interagency Transfers $ 1,615,846$ 1,615,846
12 Fees & Self-generated Revenues $ 6,131,390$ 7,076,522
13 TOTAL MEANS OF FINANCING $ 7,747,236$ 8,692,368
1421-807 LOUISIANA FEDERAL PROPERTY ASSISTANCE AG ENCY
15EXPENDITURES: FY 22 EOB FY 23 REC
16Federal Property Assistance -
17Authorized Positions (9) (9)
18 Expenditures $ 3,415,050$ 3,441,308
19Program Description: Seeks to assure the fair and equitable distribution of federal
20property allocated to Louisiana by the General Services Administration to eligible Louisiana
21donees.
22 TOTAL EXPENDITURES $ 3,415,050$ 3,441,308
23MEANS OF FINANCE:
24State General Fund by:
25 Interagency Transfers $ 484,342$ 1,084,342
26 Fees & Self-generated Revenues $ 2,930,708$ 2,356,966
27 TOTAL MEANS OF FINANCING $ 3,415,050$ 3,441,308
2821-811 PRISON ENTERPRISES
29EXPENDITURES: FY 22 EOB FY 23 REC
30Prison Enterprises -
31Authorized Positions (72) (72)
32 Expenditures $33,763,220$34,484,007
33Program Description: Utilizes the resources of the Department of Public Safety and
34Corrections in the production of food, fiber, and other necessary items used by offenders in
35order to lower the cost of incarceration; provides products and services to state agencies
36and agencies of parishes, municipalities, and other political subdivisions; and provides work
37opportunities for offenders. Prison Enterprises conducts both industry operations and
38agriculture operations.
39 TOTAL EXPENDITURES $33,763,220$34,484,007
40MEANS OF FINANCE:
41State General Fund by:
42 Interagency Transfers $24,933,479$25,447,628
43 Fees & Self-generated Revenues $ 8,829,741$ 9,036,379
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1 TOTAL MEANS OF FINANCING $33,763,220$34,484,007
221-815 OFFICE OF TECHNOLOGY SERVICES
3EXPENDITURES: FY 22 EOB FY 23 REC
4Technology Services -
5Authorized Positions (828) (828)
6Authorized Other Charges Positions (9) (9)
7 Expenditures $525,667,324$670,082,509
8Program Description: The mission of the Office of Technology Services (OTS) is to
9establish competitive, cost-effective technology systems and services while acting as the sole
10centralized customer for the acquisition, billing and record keeping of those technology
11services. OTS shall charge respective user agencies for the cost of the technology and
12services provided including the cost of the operation of the office in a fair, equitable, and
13consistent manner, in full compliance with State of Louisiana statutes.
14 TOTAL EXPENDITURES $525,667,324$670,082,509
15MEANS OF FINANCE:
16State General Fund by:
17 Interagency Transfers $524,148,851$668,564,036
18 Fees & Self-generated Revenues $ 1,518,473$ 1,518,473
19 TOTAL MEANS OF FINANCING $525,667,324$670,082,509
2021-816 DIVISION OF ADMINISTRATIVE LAW
21EXPENDITURES: FY 22 EOB FY 23 REC
22Administration -
23Authorized Positions (58) (58)
24 Expenditures $ 8,643,902$ 9,829,286
25Program Description: Provides a neutral forum for handling administrative hearings for
26certain state agencies, with respect for the dignity of individuals and their due process
27rights.
28 TOTAL EXPENDITURES $ 8,643,902$ 9,829,286
29MEANS OF FINANCE:
30State General Fund by:
31 Interagency Transfers $ 8,615,005$ 9,800,389
32 Fees & Self-generated Revenues $ 28,897$ 28,897
33 TOTAL MEANS OF FINANCING $ 8,643,902$ 9,829,286
3421-820 OFFICE OF STATE PROCUREMENT
35EXPENDITURES: FY 22 EOB FY 23 REC
36Office of State Procurement -
37Authorized Positions (99) (99)
38 Expenditures $12,255,821$12,873,418
39Program Description: The mission of the Office of State Procurement is to provide cost-
40effective services that satisfy the needs of approved governmental units of the State of
41Louisiana through the management of products and services.
42 TOTAL EXPENDITURES $12,255,821$12,873,418
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HB NO. 465
1MEANS OF FINANCE:
2State General Fund by:
3 Interagency Transfers $ 5,675,334$ 4,920,576
4 Fees & Self-generated Revenues $ 6,580,487$ 7,952,842
5 TOTAL MEANS OF FINANCING $12,255,821$12,873,418
621-829 OFFICE OF AIRCRAFT SERVICES
7EXPENDITURES: FY 22 EOB FY 23 REC
8Flight Maintenance -
9Authorized Positions (3) (4)
10 Expenditures $ 2,303,789$ 2,324,065
11Program Description: The mission of the Office of Aircraft Services is to manage the
12overall maintenance and provide all needed and required support for safe, proper, and
13economic operation of the State’s various aircraft. Flight Maintenance Operations ensures
14flight safety, maintains high safety standards while minimizing aircraft downtime for repairs,
15and provides high quality, efficient, and economical repair and fueling services for state-
16operated aircraft.
17 TOTAL EXPENDITURES $ 2,303,789$ 2,324,065
18MEANS OF FINANCE:
19State General Fund by:
20 Interagency Transfers $ 2,124,574$ 2,144,850
21 Fees & Self-generated Revenues $ 179,215$ 179,215
22 TOTAL MEANS OF FINANCING $ 2,303,789$ 2,324,065
2321-860 ENVIRONMENTAL STATE REVOLVING LOAN FUNDS
24EXPENDITURES: FY 22 EOB FY 23 REC
25Environmental State Revolving Loan Funds $125,350,000$125,350,000
26Program Description: Helps individual citizens and local governments participate in
27environmental programs by assisting municipalities to finance and construct wastewater
28treatment works. The Clean Water State Revolving Fund is used by the Department of
29Environmental Quality to assist recipients of Environmental Protection Agency and
30construction grants in providing project inspection, construction management, and overall
31program management services, required for the completion of the Environmental Protection
32Agency program, as outlined in the management grant. Regional meetings are held in the
33state’s eight planning districts with one-on-one follow-up meetings to make municipalities
34more aware of the program’s benefits and requirements. The Brownfields Cleanup
35Revolving Loan Fund strives to uphold Comprehensive Environmental Response,
36Compensation, and Liability Act (CERCLA) Section 104(k) to protect the health and welfare
37of the citizens of the state, as well as to enhance the environment of the state by
38administering the Brownfields Cleanup Revolving Loan Fund.
39 TOTAL EXPENDITURES $125,350,000$125,350,000
40MEANS OF FINANCE:
41State General Fund by:
42 Statutory Dedications:
43 Clean Water State Revolving Fund $125,000,000$125,000,000
44 Brownfields Cleanup Revolving
45 Loan Fund $ 350,000$ 350,000
46 TOTAL MEANS OF FINANCING $125,350,000$125,350,000
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121-861 DRINKING WATER REVOLVING LOAN FUND
2EXPENDITURES: FY 22 EOB FY 23 REC
3Drinking Water Revolving Loan Fund $47,988,458$47,988,458
4Program Description: Assist public water systems in financing needed drinking water
5infrastructure improvements (e.g. treatment plant, distribution main replacement, storage
6facilities, new wells). The Drinking Water Revolving Loan Fund provides assistance in the
7form of low-interest loans and technical assistance to public water systems in Louisiana to
8assist them with complying with state and federal drinking water regulations, ensuring that
9their customers are provided with safe drinking water thereby protecting the public health.
10 TOTAL EXPENDITURES $47,988,458$47,988,458
11MEANS OF FINANCE:
12State General Fund by:
13 Statutory Dedication:
14 Drinking Water Revolving Loan Fund $47,988,458$47,988,458
15 TOTAL MEANS OF FINANCING $47,988,458$47,988,458
16 Section 10. This Act shall become effective on July 1, 2022.
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 465 Original 2022 Regular Session Zeringue
Abstract: Appropriates funds and provides for ancillary expenses of state government,
including internal service funds, auxiliary accounts, and enterprise funds.
Provides $989,727,795 of interagency transfers, $1,883,923,053 of fees and self-generated
revenues, and $175,338,458 of statutory dedications to provide for the ancillary expenses
of state government.
Proposed law provides for the establishment and reestablishment of agency ancillary funds,
to be specifically known as internal service funds, auxiliary accounts, or enterprise funds for
certain state institutions, officials, and agencies. Requires the appropriated funds, to the
extent deposited, unless otherwise specified, to be used for working capital in the conduct
of business enterprises rendering public, auxiliary, and interagency services. Requires
receipts from the conduct of such businesses to be deposited to the credit of each ancillary
fund for FY 2022-2023. Requires all funds to be expended in accordance with public bid
laws.
Proposed law requires, except as otherwise provided, any fund equity resulting from prior
year operations be included as a resource of the fund from which it is derived. Provides that
all funds on deposit with the state treasury at the close of the fiscal year are authorized to be
transferred to each fund as equity for FY 2023-2024. Further provides that all unexpended
cash balances as of June 30, 2023, shall be remitted to the state treasurer on or before Aug.
14, 2023. Further provides that if not reestablished in the subsequent year's act, the agency
must liquidate all assets and return all advances no later than Aug. 14, 2023.
Proposed law provides that the program descriptions contained in the Act are not enacted
into law by virtue of their inclusion in the Act.
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HB NO. 465
Proposed law provides that all money from federal, interagency, statutory dedications, or
self-generated revenues of an agency be deemed available for expenditures in the amounts
appropriated, and any increase in such revenues over the amounts appropriated shall only
be available for expenditure by the agency with approval of the division of administration
and the Joint Legislative Committee on the Budget (JLCB).
Proposed law provides that the number of employees approved for each agency may be
increased by the commissioner of administration, subject to JLCB approval, when
appropriate documentation is deemed valid.
Proposed law requires any agency with an appropriation level of $30 million or more to
include positions within its table of organization which perform internal auditing services,
including the position of a chief audit executive responsible for adhering to the Institute of
Internal Auditors, International Standards for the Professional Practice of Internal Auditing.
Proposed law directs the commissioner of administration to adjust performance objectives
and indicators contained in the Executive Budget Supporting Document to reflect the funds
appropriated and to report such adjustments to the JLCB by Aug. 15, 2022.
Proposed law provides that the treasurer shall invest excess cash funds, excluding those
arising from working capital advances, with the interest earned being credited to the account.
Proposed law authorizes the commissioner of administration to transfer functions, positions,
assets, and funds between and within departments in conjunction with the continuing
assessment of the existing staff, assets, contracts, and facilities of each department, agency,
program, or budget unit's information technology resources, and procurement resources, in
order to optimize resources and provide cost savings. Proposed law does not apply to the
Dept. of Culture, Recreation and Tourism, or any agency contained in Schedule 04, Elected
Officials, of the General Appropriation Act.
Effective July 1, 2022.
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