ENROLLED
ACT No. 408
2023 Regular Session
HOUSE BILL NO. 388
BY REPRESENTATIVE ZERINGUE
1 AN ACT
2 To 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 2023-2024; to provide for an effective date; and to regulate the
6 administration of said funds.
7 Be it enacted by the Legislature of Louisiana:
8 Section 1. There are hereby appropriated the amounts shown below, which shall be
9 payable out of the state general fund, to the extent of funds deposited, unless otherwise
10 specified, for the establishment and reestablishment of agency ancillary funds which shall
11 be specifically known as internal service funds, auxiliary accounts, or enterprise funds. The
12 monies in each fund shall be used for working capital in the conduct of business enterprises
13 rendering public service, auxiliary service, and interagency service.
14 In the conduct of each such business, receipts shall be deposited in the state treasury
15 and disbursements made by the state treasurer to the extent of the amount deposited to the
16 credit of each ancillary fund, for the current fiscal year. All funds appropriated herein shall
17 be 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,
19 any fund equity resulting from prior year operations shall be included as a resource of the
20 fund 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
22 authorized to be transferred to each fund respectively, as equity for the next fiscal year.
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1 All unexpended cash balances as of June 30, 2024, shall be remitted to the state
2 treasurer on or before August 14, 2024. If not reestablished in the subsequent year's Act, the
3 agency must liquidate all assets and return all advances no later than August 14, 2024.
4 C. The program descriptions contained in this Act are not part of the law and are not
5 enacted into law by virtue of their inclusion into this Act.
6 Section 3. All money from federal, interagency transfers, statutory dedications, or
7 fees and self-generated revenues shall be available for expenditure in the amounts herein
8 appropriated.
9 Any increase in such revenues shall be available for allotment and expenditure by
10 an agency on approval of an increase in the appropriation by the commissioner of
11 administration and the Joint Legislative Committee on the Budget. Any increase in such
12 revenues for an agency without an appropriation from the respective revenue source shall
13 be incorporated into the agency's appropriation on approval of the commissioner of
14 administration and the Joint Legislative Committee on the Budget.
15 Section 4.A. The figures in parentheses following the designation of a budget entity
16 are the total authorized positions and authorized other charges positions for that entity. The
17 number of employees approved for each agency, as a result of the passage of this Act, may
18 be increased by the commissioner of administration when sufficient documentation is
19 presented and the request is deemed valid. However, any request which exceeds five
20 positions shall be approved by the commissioner of administration and the Joint Legislative
21 Committee on the Budget.
22 B. The budget request of any agency with an appropriation level of thirty million
23 dollars or more shall include within its existing table of organization positions which
24 perform the function of internal auditing, including the position of a chief audit executive.
25 The chief audit executive shall be responsible for ensuring that the internal audit function
26 adheres to the Institute of Internal Auditors, International Standards for the Professional
27 Practice of Internal Auditing. The chief audit executive shall maintain organizational
28 independence in accordance with these standards and shall have direct and unrestricted
29 access to the commission, board, secretary, or equivalent head of the agency. The chief
30 audit executive shall certify to the commission, board, secretary, or equivalent head of the
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1 agency that the internal audit function conforms to the Institute of Internal Auditors,
2 International Standards for the Professional Practice of Internal Auditing.
3 Section 5. All key and supporting performance objectives and indicators for the
4 departments, agencies, programs, and budget units contained in the Governor’s Executive
5 Budget Supporting Document shall be adjusted by the commissioner of administration to
6 reflect the funds appropriated therein. The commissioner of administration shall report on
7 these adjustments to the Joint Legislative Committee on the Budget each year by August
8 fifteenth.
9 Section 6. The following definition is provided for the terms of this Act: "working
10 capital" shall be considered the excess of current assets over current liabilities on an accrual
11 basis.
12 Section 7. Should any section, subsection, clause, sentence, phrase, or part of the Act
13 for any reason be held, deemed, or construed to be unconstitutional or invalid, such decisions
14 shall not affect the remaining provisions of the Act, and the legislature hereby declares that
15 it would have passed the Act, and each section, subsection, clause, sentence, phrase, or part
16 thereof, irrespective of the fact that one or more of the sections, subsections, clauses,
17 sentences, phrases, or parts thereof, is declared unconstitutional or invalid. To this end, the
18 provisions of this Act are hereby declared severable.
19 Section 8. Internal Service Funds. These funds account for the financing of goods
20 or services provided by one department or agency to other departments or agencies of the
21 governmental unit, or to other governmental units, on a cost-reimbursement basis. Excess
22 cash funds, excluding cash funds arising from working capital advances, shall be invested
23 by the state treasurer with the interest proceeds therefrom credited to each account and shall
24 not be transferred to the state general fund.
25 Section 9. In conjunction with the continuing assessment of the existing staff, assets,
26 contracts, and facilities of each department, agency, program or budget unit’s information
27 technology resources and procurement resources, upon completion of this assessment and
28 to the extent optimization of these resources will result in the projected cost savings through
29 staff reductions, realization of operational efficiencies, cost avoidance, and elimination of
30 asset duplication, the commissioner of administration is authorized to transfer the functions,
31 positions, assets, and funds from any other department, agency, program, or budget units
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1 related to these optimizations to a different department. The provisions of this Section shall
2 not apply to the Department of Culture, Recreation and Tourism, or any agency contained
3 in Schedule 04, Elected Officials, of the General Appropriation Act.
4 SCHEDULE 21
5 ANCILLARY APPROPRIATIONS
6 21-800 OFFICE OF GROUP BENEFITS
7 EXPENDITURES: FY 23 EOB FY 24 REC
8 State Group Benefits -
9 Authorized Positions (56) (56)
10 Expenditures $1,809,705,404$1,810,338,359
11 Program Description: Provides for the administration of group health and accidental
12 insurance and group life insurance for current and former state employees and other
13 participating groups.
14 TOTAL EXPENDITURES $1,809,705,404$1,810,338,359
15 MEANS OF FINANCE:
16 State General Fund by:
17 Interagency Transfers $ 598,733$ 1,098,733
18 Fees & Self-generated Revenues $1,809,106,671$1,809,239,626
19 TOTAL MEANS OF FINANCING $1,809,705,404$1,810,338,359
20 21-804 OFFICE OF RISK MANAGEMENT
21 EXPENDITURES: FY 23 EOB FY 24 REC
22 Risk Management -
23 Authorized Positions (41) (42)
24 Expenditures $324,218,483$322,479,556
25 Program Description: Provides for the overall executive leadership and management of
26 the office, support services, policy analysis, management direction of the state's self-
27 insurance program; provides funding for the payment of losses on medical, malpractice,
28 property, comprehensive general liability, personal injury, automobile liability, automobile
29 physical damage, bonds, crime, aviation, wet marine boiler and machinery and
30 miscellaneous tort claims; provides funding for the payment of contracts issued for
31 professional legal defense of claims made against the state; provides funding for the
32 reimbursement of the Division of Risk Litigation in the Office of the Attorney General for
33 costs incurred for professional legal defense of claims made against the state.
34 TOTAL EXPENDITURES $ 324,218,483$322,479,556
35 MEANS OF FINANCE:
36 State General Fund by:
37 Interagency Transfers $275,551,395$275,398,210
38 Fees & Self-generated Revenues $46,667,088$45,081,346
39 Statutory Dedications:
40 Future Medical Care Fund $ 2,000,000$ 2,000,000
41 TOTAL MEANS OF FINANCING $324,218,483$322,479,556
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1 Payable out of the State General Fund by
2 Interagency Transfers to the Risk Management
3 Program for the Office of the Attorney
4 General Risk Litigation Program $ 631,880
5 21-806 LOUISIANA PROPERTY ASSISTANCE AG ENCY
6 EXPENDITURES: FY 23 EOB FY 24 REC
7 Louisiana Property Assistance -
8 Authorized Positions (37) (37)
9 Expenditures $ 8,692,368$ 9,005,357
10 Program Description: Provides for the accountability of the state's movable property
11 through the development and implementation of sound management practices.
12 TOTAL EXPENDITURES $ 8,692,368$ 9,005,357
13 MEANS OF FINANCE:
14 State General Fund by:
15 Interagency Transfers $ 1,615,846$ 1,615,846
16 Fees & Self-generated Revenues $ 7,076,522$ 7,389,511
17 TOTAL MEANS OF FINANCING $ 8,692,368$ 9,005,357
18 Payable out of the State General Fund by
19 Fees and Self-generated Revenues to the
20 Louisiana Property Assistance Program for
21 the sale of state assets $ 3,587,011
22 21-807 LOUISIANA FEDERAL PROPERTY ASSISTANCE AG ENCY
23 EXPENDITURES: FY 23 EOB FY 24 REC
24 Federal Property Assistance -
25 Authorized Positions (9) (9)
26 Expenditures $ 3,441,308$ 3,455,836
27 Program Description: Seeks to assure the fair and equitable distribution of federal
28 property allocated to Louisiana by the General Services Administration to eligible Louisiana
29 donees.
30 TOTAL EXPENDITURES $ 3,441,308$ 3,455,836
31 MEANS OF FINANCE:
32 State General Fund by:
33 Interagency Transfers $ 1,084,342$ 1,084,342
34 Fees & Self-generated Revenues $ 2,356,966$ 2,371,494
35 TOTAL MEANS OF FINANCING $ 3,441,308$ 3,455,836
36 21-811 PRISON ENTERPRISES
37 EXPENDITURES: FY 23 EOB FY 24 REC
38 Prison Enterprises -
39 Authorized Positions (72) (72)
40 Expenditures $34,484,007$35,380,985
41 Program Description: Utilizes the resources of the Department of Public Safety and
42 Corrections in the production of food, fiber, and other necessary items used by offenders in
43 order to lower the cost of incarceration; provides products and services to state agencies
44 and agencies of parishes, municipalities, and other political subdivisions; and provides work
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1 opportunities for offenders. Prison Enterprises conducts both industry operations and
2 agriculture operations.
3 TOTAL EXPENDITURES $34,484,007$35,380,985
4 MEANS OF FINANCE:
5 State General Fund by:
Interagency Transfers $25,447,628$26,231,5626
7 Fees & Self-generated Revenues $ 9,036,379$ 9,149,423
8 TOTAL MEANS OF FINANCING $34,484,007$35,380,985
9 21-815 OFFICE OF TECHNOLOGY SERVICES
10 EXPENDITURES: FY 23 EOB FY 24 REC
11 Technology Services -
12 Authorized Positions (828) (819)
13 Authorized Other Charges Positions (9) (9)
14 Expenditures $694,082,509$723,703,210
15 Program Description: The mission of the Office of Technology Services (OTS) is to
16 establish competitive, cost-effective technology systems and services while acting as the sole
17 centralized customer for the acquisition, billing and record keeping of those technology
18 services. OTS shall charge respective user agencies for the cost of the technology and
19 services provided including the cost of the operation of the office in a fair, equitable, and
20 consistent manner, in full compliance with State of Louisiana statutes.
21 Cyber Assurance Program -
22 Authorized Positions (0) (14)
23 Expenditures $ 0$34,463,692
24 Program Description: Properly aligning and investing in Louisiana’s proven cyber
25 capabilities to provide sustainable cyber assurance services to state and local entities which
26 operationally increase visibility/awareness to threats and reduce cyber risk to an acceptable
27 level.
28 TOTAL EXPENDITURES $694,082,509$758,166,902
29 MEANS OF FINANCE:
30 State General Fund by:
31 Interagency Transfers $692,564,036$756,648,429
32 Fees & Self-generated Revenues $ 1,518,473$ 1,518,473
33 TOTAL MEANS OF FINANCING $694,082,509$758,166,902
34 21-816 DIVISION OF ADMINISTRATIVE LAW
35 EXPENDITURES: FY 23 EOB FY 24 REC
36 Administration -
37 Authorized Positions (58) (58)
38 Expenditures $ 9,829,286$ 9,130,194
39 Program Description: Provides a neutral forum for handling administrative hearings for
40 certain state agencies, with respect for the dignity of individuals and their due process
41 rights.
42 TOTAL EXPENDITURES $ 9,829,286$ 9,130,194
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1 MEANS OF FINANCE:
2 State General Fund by:
3 Interagency Transfers $ 9,800,389$ 9,101,297
4 Fees & Self-generated Revenues $ 28,897$ 28,897
5 TOTAL MEANS OF FINANCING $ 9,829,286$ 9,130,194
6 21-820 OFFICE OF STATE PROCUREMENT
7 EXPENDITURES: FY 23 EOB FY 24 REC
8 Office of State Procurement -
9 Authorized Positions (99) (99)
10 Expenditures $12,873,418$13,657,114
11 Program Description: The mission of the Office of State Procurement is to provide cost-
12 effective services that satisfy the needs of approved governmental units of the State of
13 Louisiana through the management of products and services.
14 TOTAL EXPENDITURES $12,873,418$13,657,114
15 MEANS OF FINANCE:
16 State General Fund by:
17 Interagency Transfers $ 4,920,576$ 4,999,758
18 Fees & Self-generated Revenues $ 7,952,842$ 8,657,356
19 TOTAL MEANS OF FINANCING $12,873,418$13,657,114
20 21-829 OFFICE OF AIRCRAFT SERVICES
21 EXPENDITURES: FY 23 EOB FY 24 REC
22 Flight Maintenance -
23 Authorized Positions (4) (4)
24 Expenditures $ 2,324,065$ 3,388,815
25 Program Description: The mission of the Office of Aircraft Services is to manage the
26 overall maintenance and provide all needed and required support for safe, proper, and
27 economic operation of the State’s various aircraft. Flight Maintenance Operations ensures
28 flight safety, maintains high safety standards while minimizing aircraft downtime for repairs,
29 and provides high quality, efficient, and economical repair and fueling services for state-
30 operated aircraft.
31 TOTAL EXPENDITURES $ 2,324,065$ 3,388,815
32 MEANS OF FINANCE:
33 State General Fund by:
34 Interagency Transfers $ 2,144,850$ 3,209,600
35 Fees & Self-generated Revenues $ 179,215$ 179,215
36 TOTAL MEANS OF FINANCING $ 2,324,065$ 3,388,815
37 21-860 MUNICIPAL FACILITY REVOLVING LOAN
38 EXPENDITURES: FY 23 EOB FY 24 REC
39 Environmental State Revolving Loan Funds $130,775,600$130,775,600
40 Program Description: Helps individual citizens and local governments participate in
41 environmental programs by assisting municipalities to finance and construct wastewater
42 treatment works. The Clean Water State Revolving Fund is used by the Department of
43 Environmental Quality to assist recipients of Environmental Protection Agency and
44 construction grants in providing project inspection, construction management, and overall
45 program management services, required for the completion of the Environmental Protection
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1 Agency program, as outlined in the management grant. Regional meetings are held in the
2 state’s eight planning districts with one-on-one follow-up meetings to make municipalities
3 more aware of the program’s benefits and requirements. The Brownfields Cleanup
4 Revolving Loan Fund strives to uphold Comprehensive Environmental Response,
5 Compensation, and Liability Act (CERCLA) Section 104(k) to protect the health and welfare
6 of the citizens of the state, as well as to enhance the environment of the state by
7 administering the Brownfields Cleanup Revolving Loan Fund.
8 TOTAL EXPENDITURES $130,775,600$130,775,600
9 MEANS OF FINANCE:
10 State General Fund by:
11 Statutory Dedications:
12 Clean Water State Revolving Fund $125,000,000$125,000,000
13 Brownfields Cleanup Revolving
14 Loan Fund $ 350,000$ 350,000
15 Matching Funds Fund $ 4,256,600$ 4,256,600
16 Federal Funds $ 1,169,000$ 1,169,000
17 TOTAL MEANS OF FINANCING $130,775,600$130,775,600
18 21-861 DRINKING WATER REVOLVING LOAN FUND
19 EXPENDITURES: FY 23 EOB FY 24 REC
20 Drinking Water Revolving Loan Fund $50,681,458$50,681,458
21 Program Description: Assist public water systems in financing needed drinking water
22 infrastructure improvements (e.g. treatment plant, distribution main replacement, storage
23 facilities, new wells). The Drinking Water Revolving Loan Fund provides assistance in the
24 form of low-interest loans and technical assistance to public water systems in Louisiana to
25 assist them with complying with state and federal drinking water regulations, ensuring that
26 their customers are provided with safe drinking water thereby protecting the public health.
27 TOTAL EXPENDITURES $50,681,458$50,681,458
28 MEANS OF FINANCE:
29 State General Fund by:
30 Statutory Dedication:
31 Drinking Water Revolving Loan Fund $47,988,458$47,988,458
32 Matching Funds Fund $ 2,693,000$ 2,693,000
33 TOTAL MEANS OF FINANCING $50,681,458$50,681,458
34 Section 10. This Act shall become effective on July 1, 2023.
SPEAKER OF THE HOUSE OF REPRESENTATIVES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED:
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