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 47 Engrossed 2023 Regular Session Nelson
Abstract: Requires a minimum of 25% of all nonrecurring state revenues to be applied to the
Unfunded Accrued Liability (UAL) of certain state retirement systems.
Present constitution limits the ability of the legislature to spend state nonrecurring revenue to six
particular items. Proposed constitution retains present constitution.
Present constitution provides that one allowable use of nonrecurring revenue is extra payments
toward the UAL of public retirement systems, above payments otherwise required by present
constitution. Prohibits use of such funds to directly or indirectly finance cost-of-living adjustments.
Proposed constitutional amendment retains present constitution.
Present constitution further requires that for FY 13-14 and 14-15 the legislature appropriate no less
than 5% of nonrecurring state revenues to the UAL of the La. State Employees' Retirement System
(LASERS) and the Teachers' Retirement System of La. (TRSL) that existed on June 30, 1988
(IUAL). Proposed constitutional amendment repeals present constitution.
Present constitution further requires that for FY 2015-2016 and beyond, the legislature appropriate
a minimum of 10% of nonrecurring state revenue to the IUAL of LASERS and TRSL. Proposed
constitutional amendment terminates the required 10% minimum appropriation after FY 2023-24.
Proposed constitutional amendment requires the legislature beginning FY 2024-2025 and continuing
each fiscal year thereafter, to appropriate a minimum of 25% of nonrecurring revenue to the UAL
of the four state retirement systems: LASERS, TRSL, the La. School Employees' Retirement System,
and the La. State Police Retirement System. Authorizes the legislature to provide by law for
distribution of nonrecurring monies appropriated pursuant to the provisions of proposed
constitutional amendment. Further provides that if the legislature has not provided for an alternative
distribution formula, nonrecurring money shall be appropriated to each system in the proportion that
the system's total unfunded accrued liability bears to the total of all state system unfunded accrued
liability, using the most recent system valuations adopted by the Public Retirement Systems'
Actuarial Committee or its successor. Further prohibits these extra debt payments from being used
directly or indirectly to fund cost-of-living increases for such systems.
Provides for submission of the proposed amendment to the voters at the statewide election to be held
October 14, 2023.
(Amends Const. Art. VII, ยง10(D)(2)(b)(ii) and (iii))