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 550 Engrossed 2023 Regular Session Zeringue
Abstract: Transfers state general fund monies to certain special funds and accounts in the state
treasury and makes changes to the use of monies in the Hurricane Ida Recovery Fund
Proposed law transfers 25% of the FY 2021-2022 surplus ($181,630,129) to the Budget Stabilization
Fund.
Proposed law transfers the following amounts from the state general fund in the current fiscal year:
(1)$340,000,000 to the Transportation Trust Fund.
(2)$109,427,275 to the 2024 LASERS IUAL Payment Fund established in proposed law.
(3)$74,361,094 to the Overcollections Fund.
(4)$30,500,000 to the Higher Education Initiatives Fund.
(5)$30,000,000 to the Power-Based Violence and Safety Fund as provided in proposed law.
(6)$24,904,474 to the State Emergency Response Fund.
(7)$20,000,000 to the Voting Technology Fund.
(8)$13,000,000 to the La. Early Childhood Education Fund.
(9)$10,000,000 to the Oyster Resource Management Account.
(10)$10,000,000 to the Health Care Employment Reinvestment Opportunity (HERO) Fund.
(11)$7,500,000 to the Insure La. Incentive Fund.
(12)$5,000,000 to the Law Enforcement Recruitment Incentive Fund, if House Bill No. 563 of
the 2023 Regular Session becomes law.
(13)$5,000,000 to the Geaux Teach Fund.
(14) $5,000,000 to the La. Economic Development Fund. (15)$5,000,000 to the Reading Enrichment and Academic Deliverables (R.E.A.D.) Fund, as
provided in proposed law.
(16)$5,000,000 to the Court Modernization and Technology Fund, as provided in proposed law.
(17)$4,000,000 to the Major Events Incentive Fund.
(18)$1,500,000 to the Hazard Mitigation Revolving Loan Fund.
Proposed law transfers the following amounts in Fiscal Year 2023-2024:
(1)$75,572,725 from the state general fund to the 2024 LASERS IUAL Payment Fund
established in proposed law.
(2)$10,000,000 to the to the La. Fortify Homes Program Fund from fees Fees and Self-
generated Revenues of the Dept. of Insurance.
(3)$2,500,000 to the Insure La. Incentive Fund from fees Fees and Self-generated Revenues of
the Dept. of Insurance.
Proposed law (R.S. 17:4033.1) establishes the R.E.A.D. Fund as a special fund in the treasury.
Requires monies in the fund to be invested in the same manner as monies in the state general fund
and that interest earned on investment of monies in the R.E.A.D. Fund are to be credited to the
R.E.A.D. Fund. Provides that monies in the fund are to be used by the state Dept. of Education for
administration and implementation of the R.E.A.D. Program (provided in present law).
Present law (R.S. 39:100.44.1) establishes the La. Main Street Recovery Rescue Plan Fund and
provides for deposit of monies into the fund, to be used for: economic support grants for La. timber
harvesting and timber hauling businesses; economic support grants for eligible movie theater owners,
as provided in present law; and for the La. Agriculture Transportation Group Self-Insured Fund.
Further requires that any remaining monies in the La. Rescue Plan Fund on June 30, 2023, are to be
transferred to the La. Rescue Plan Fund. Proposed law extends until June 30, 2024, the date at which
monies in the fund are to be transferred to the La. Rescue Plan Fund.
Present law (R.S. 39:100.101) establishes the Power-Based Fund and requires monies deposited into
the fund to be used for Title IX offices at every public postsecondary institution in the state.
Proposed law changes the Power-Based Fund to the Power-Based Violence and Safety Fund and
provides that monies in the fund are to be used for power-based violence, Title IX, and safety
initiatives at every public postsecondary institution in the state.
Present law (R.S. 39:100.171) establishes the Hurricane Ida Recovery Fund (fund) and provides for
the administration and use of monies deposited into the fund. Proposed law retains present law.
Further requires unexpended and unencumbered monies in the fund at the end of the fiscal year to
remain in the fund. Present law provides that monies in the fund shall be used to make full or partial payments to
political subdivisions, including school boards, (eligible entities) that suffered property loss or
damage caused by Hurricane Ida. Proposed law retains present law. Present law requires any
payment to an eligible entity made from the fund pursuant to the provisions of this Section to be
applied by the governing authority of the eligible entity to the cost of repair or replacement of the
damaged property. Proposed law retains present law and further authorizes monies received
pursuant to proposed law to be applied toward the cost of an approved project replacing such
damaged property. If federal assistance funds have been received for the damaged property and
monies disbursed to the eligible entity pursuant to the provisions of proposed law remain after the
eligible entity has satisfied its portion of any required local match for such damage, proposed law
requires the eligible entity to apply any remaining monies received from the fund to one or more of
the following for expenses incurred since Aug. 29, 2021:
(1)A facility owned by an eligible entity that is open to the public for public use.
(2)A public facility that an eligible entity owns or has legal responsibility for maintaining,
including any:
(a)Flood control, navigation, irrigation, reclamation, public power, sewage treatment
and collection, water supply and distribution, watershed development, or airport
facility.
(b)Non-Federal-aid street, road, or highway.
(c)Other public building, structure, or system, including those used for educational,
recreational, or cultural purposes.
(d)Park.
(3)A facility owned by a private, nonprofit entity and used to provide services to the general
public.
(4) A mixed use facility provided that more than fifty percent of the physical space of the facility
is used for a public purpose.
(5)A facility that meets both of the following conditions:
(a)At least fifty percent of the total square footage of the facility was used by the owner
for a public purpose before Hurricane Ida.
(b)All or part of the facility was under repair or remodeling when Hurricane Ida struck
the facility.
(6)Debris Removal. (7)Emergency Protection Measures.
Present law (R.S. 39:100.201) establishes the Political Subdivision Federal Grant Assistance Fund
and provides for deposit and use of monies in the fund. Requires monies in the fund to be
appropriated to the division of administration via BA-7. Proposed law deletes the requirement that
monies be appropriated by BA-7. Additionally adds the office of rural development within the office
of the governor as an entity eligible to use monies in the fund. Present law requires monies in the
fund be used for the administration of a program to assist political subdivisions with competitive
federal grant opportunities made pursuant to the Infrastructure Investment and Jobs Act. Proposed
law retains present law.
Present law (R.S. 39:100.211) establishes the Court Modernization and Technology Fund as a
special fund in the state treasury. Provides that the Judicial Council of the Supreme Court shall
administer the fund to provide technology upgrades in courts under the supervisory jurisdiction of
the Supreme Court pursuant to Article V of the Constitution of La. Requires monies in the fund to
be invested in the same manner as monies in the state general fund. Provides that interest earned on
investment of monies in the fund shall be credited to the fund. Requires any unexpended or
unencumbered monies in the fund at the end of the fiscal year to remain in the fund. Requires the
Supreme Court to promulgate rules for the administration of the fund. Further sets forth
requirements for the Judicial Council's administration of fund monies. Requires the council to
submit a quarterly status report to the Joint Legislative Committee on the Budget beginning Oct. 1,
2023.
Proposed law establishes the 2024 LASERS IUAL Payment Fund as a special fund in the state
treasury. Provides that monies in the fund are to be drawn by the La. State Employees' Retirement
System (LASERS) for application to the system's IUAL. Defines "IUAL" to mean the consolidated
debt schedule amortizing the unfunded accrued liability of the system as of June 30, 1988. Further
provides that any application of monies from the fund to such debt shall be in lieu of any equivalent
payment toward such debt that otherwise would have been made through employer contributions in
FY 2023-2024.
Proposed law requires the Public Retirement Systems Actuarial Committee to meet as soon as
practicable after the effective date of proposed law and no later than June 30, 2023, to adopt a new
valuation for LASERS FY 2023-2024 that accounts for payments made pursuant to proposed law.
Effective upon signature of governor or lapse of time for gubernatorial action except that transfers
for FY 2023-2024 are effective July 1, 2023.
(Amends R.S. 39:100.44.1(H)(3), the heading of Subpart P-3 of Part II-A of Chapter 1 of Subtitle
I of Title 39 of the La. Revised Statutes of 1950, and 100.101, 100.171, and 100.201(B) through (D);
Adds R.S. 17:4033.1(F) and R.S. 39:100.211 and 100.221)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Appropriations to the original bill:
1. Make various transfers from the state general fund in the current fiscal year.
2. Make various transfers from fees and self-generated revenues of the Dept. of Insurance
in the next fiscal year.
3. Extend until June 30, 2024, the date for transfer of remaining balances in the La. Main
Street Recovery Rescue Plan Fund, which supports assistance to loggers and movie
theater owners, to the La. Rescue Plan Fund.
4. Authorize appropriation from the Political Subdivision Federal Grant Assistance Fund
to the state office of rural development (within the office of the governor) for
administration of a program to assist political subdivisions with competitive federal grant
opportunities from the IIJA.
5. Establish the Reading Enrichment and Academic Deliverables (R.E.A.D.) Fund to
provide funding for the R.E.A.D. Program in present law to provide books and other
reading materials to eligible children in pre-k through fifth grade.
6. Establish the Power-Based Violence and Safety Fund as a new version of the present law
Power-Based Fund. Proposed law will provide funding for power-based violence, Title
IX, and safety initiatives at every public postsecondary institution in the state.
7. Establish the Court Modernization and Technology Fund to provide funding for
technology upgrades in courts under the supervisory jurisdiction of the Supreme Court.
8. Establish the 2024 LASERS IUAL Payment Fund to pay a portion of the 2024 employer
contribution to LASERS.
9. Make technical changes.