SSHB12 4448 211
HOUSE SUMMARY OF SENATE AMENDMENTS
House Bill No. 12 by Representative Deshotel
FUNDS/FUNDING: Relative to finances of the state (Items #16 and 21)
Synopsis of Senate Amendments
1.Requires the Attorney General to review and report on any change to the
purpose or proposal for the expenditure of money from the Louisiana Fund.
2.Creates the Local Revenue Fund as a special treasury fund.
3.Requires $40 M of the avails of the motor vehicle sales tax for FY 2025-2026
and 2026-2027 be deposited into the Megaprojects Leverage Fund for the I-10
Calcasieu River Bridge and I-10 Improvements Account and the remainder to
be deposited into the state general fund. Beginning in FY 2027-2028, 60% of
the avails of the motor vehicle sales tax shall be deposited into the Construction
Subfund and the Megaprojects Leverage Fund.
4.Changes the repeal of the Revenue Stabilization Fund from January 1, 2027 to
July 1, 2027.
5.Removes provisions requiring a percentage of corporate income and franchise
tax revenues and mineral revenues be deposited each year into the Budget
Stabilization Fund.
6.Provides for effectiveness.
7.Makes technical changes.
Digest of Bill as Finally Passed by Senate
Louisiana Education Quality Trust Fund
and the Louisiana Quality Education Support Fund
Present law provides for allocations to the Louisiana Education Quality Trust Fund and the
Louisiana Quality Education Support Fund and appropriations from these funds.
Proposed law repeals provisions related to the allocations made to the Louisiana Education
Quality Trust Fund and the Louisiana Quality Education Support Fund. Retains provisions
related to appropriations from the funds. Proposed law repeals all provisions related to both
funds effective June 30, 2025.
Oilfield Site Restoration Fund
Present law establishes a fund in the custody of the treasurer called the Oilfield Site
Restoration Fund. Proposed law establishes the fund as a special fund in the treasury.
Present law provides for the deposit, use, and investment of monies in the fund. Requires
the state treasurer to certify to the secretary of the Dept. of Revenue the date on which the
balance in the fund equals or exceeds $14M.
Proposed law retains present law. Adds provisions requiring unexpended and unencumbered
monies at the end of the fiscal year to remain in the fund, that monies in the fund be invested
by the treasurer in the manner provided by law, and that interest earned on the monies in the
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fund shall be deposited into the fund. Requires the treasurer to prepare and submit to the
Dept. of Energy and Natural Resources on a quarterly basis a report reflecting the balance
of the fund.
Oil Spill Contingency Fund
Present law creates a special fund in the state treasury called the Oil Spill Contingency Fund
in order to fulfill the constitutional mandate to protect, conserve, and replenish the natural
resources of the state. Requires the monies in the fund be used in response to all threatened
or actual unauthorized discharges of oil and for clean up. Provides for the deposit of monies
derived from all fees, taxes, penalties, judgments, reimbursements, charges, and federal funds
collected pursuant to the Oil Spill Prevention and Response Act. Provides for the deposit,
uses, and investment of the monies in the fund.
Proposed law retains present law. Provides for the deposit of any monies derived from fees,
taxes, penalties, reimbursements, charges, federal funds, or other revenue enacted by the
legislature for the purposes of abatement and containment of actual or threatened
unauthorized discharges of oil. Provides for deposit of funds or revenue donated to the fund.
Provides for monies in the fund to be appropriated for administrative costs associated with
the abatement and containment of unauthorized discharges of oil.
Budget Stabilization Fund
Present law creates a special fund in the state treasury called the Budget Stabilization Fund.
Provides for deposits into the fund from all monies available for appropriations from the state
general fund in excess of the expenditure limit. Provides for deposits into the fund from all
revenues received in each fiscal year in excess of $950M, referred to as the "base", as a result
of production or exploration of minerals. Allows the "base" to be increased every 10 years
by law enacted with a 2/3 vote of the members of the legislature. Further provides for
deposits into the fund as follows: (1) the greater of $25M from any source or 25% of any
money designated in the official forecast as nonrecurring revenue; (2) any additional monies
appropriated by the legislature; and (3) monies received from the federal government for the
reimbursement of costs associated with a federal disaster. Provides for uses of monies in the
fund in cases of a budget deficit. Prohibits any appropriation or deposit into the fund which
would cause the balance of the fund to exceed 4% of total state revenue receipts (the cap) for
the previous fiscal year.
Proposed law retains the Budget Stabilization Fund as a special fund within the state
treasury. Retains the provision requiring a deposit into the fund from all monies in excess
of the expenditure limit. Retains the uses of monies in the fund in cases of a budget deficit.
Proposed law removes the provision in present law regarding deposits in excess of $950M
of mineral revenues and the provisions regarding the increase of the "base". Proposed law
increases the cap to 7.5% of total state revenues for the previous fiscal year. Further requires
all unexpended and unencumbered monies in the fund at the end of the fiscal year to remain
in the fund.
Millennium Trust
Present law creates a special fund in the state treasury called the Millennium Trust. Provides
for deposits into the fund from monies received as a result of the tobacco settlement, as well
as any interest income and realized capital gains on investment of monies in the fund.
Provides for 75% of the tobacco settlement funds to be deposited into the Millennium Trust.
Creates three special subfunds within the Millennium Trust: (1) the Health Excellence Fund;
(2) the Education Excellence Fund; and (3) the TOPS Fund.
Present law provides that beginning in FY 2012, deposits shall be made as follows: (1) 1/3
of all dividend and interest income and all realized capital gains on investments of monies
in the fund to the Health Excellence Fund; (2) 1/3 of all dividend and interest income and all
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realized capital gains on investments of monies into the Education Excellence Fund; and (3)
100% (of the 75%) of the tobacco settlement proceeds deposited into the Millennium Trust
Fund and 1/3 of all dividend and interest income and all realized capital gains of monies
invested into the TOPS Fund. Requires the treasurer to report annually to the legislature the
amount of investment earnings credited to the TOPS fund.
Proposed law retains the Millennium Trust as a special fund within the state treasury.
Retains the Health Excellence Fund and the TOPS Fund, but repeals the Education
Excellence Fund. Provides for deposits as follows: (1) ½ of all dividend and interest income
and all realized capital gains of monies invested to the Health Excellence Fund; and (2)
100% (of the 75%) of the tobacco settlement proceeds deposited into the Millennium Trust
and ½ of all dividend and interest income and all realized capital gains of monies invested
into the TOPS fund. Repeals language regarding deposit and the distribution of monies in
the fund for prior fiscal years.
Present law provides for the investment of the Millennium Trust. Directs the treasurer to
invest monies in the trust in the same investments permitted for the Louisiana Education
Quality Trust Fund (LEQTF). Provides for investment maturity and interest rates on
certificates of deposit. Authorizes the treasurer to enter into direct security repurchase
agreements, reverse security repurchase agreements, and securities lending contracts in order
to generate passive income. Provides definition for direct security repurchase agreements,
reverse security repurchase agreements, and securities lending contracts. Requires the
treasurer to annually submit a report on the performance of the trust to the Joint Legislative
Committee on the Budget and the commissioner of administration. Requires the treasurer
to annually submit a report on the performance of the Education Excellence Fund to the state
superintendent of education.
Proposed law provides for the investment of the Millennium Trust; however, proposed law
adds the types of investments allowable for monies in the LEQTF. Requires any investment
managers hired on a contract basis to advise the treasurer to be selected by the treasurer and
approved by the state bond commission. Removes the provision in present law that requires
submission of the annual report regarding the performance of the Education Excellence Fund
to the state superintendent of education. Retains all other provisions in present law.
Present law provides for appropriations from the subfunds within the Millennium Trust: (1)
the Education Excellence Fund; (2) the Health Excellence Fund; and (3) the TOPS fund.
Provides limitations to the amounts appropriated from the Education Excellence Fund, the
Health Excellence Fund, and the TOPS fund. Provides for specific purposes for monies
appropriated from the Health Excellence Fund, the Education Excellence Fund, and the
TOPS fund.
Proposed law retains provisions in present law regarding appropriations from the Health
Excellence Fund and the TOPS fund. Proposed law repeals prior year limitations on amounts
that may be appropriated from the funds.
Proposed law repeals provisions related to the allocations made to the Education Excellence
Fund and retains the provisions in present law regarding appropriations from the fund.
Proposed law repeals all provisions of the Education Excellence Fund effective June 30,
2025.
Louisiana Fund
Present law creates a special fund in the state treasury called the Louisiana Fund. Provides
for the remaining monies from the tobacco settlement after the deposit into the Millennium
Trust, and all interest income. Provides for monies in the fund to be invested in the same
manner as the state general fund. Provides for all unencumbered and unexpended monies
in the fund to remain in the fund. Provides for appropriations from the fund not to exceed
50% of the total amount of monies appropriated from the fund in any fiscal year. Provides
for purposes of appropriations from the fund.
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Proposed law provides for all unencumbered and unexpended monies in the fund at the end
of the fiscal year to remain in the fund. Provides for the Attorney General to review and
comment on any change to the purpose or proposal for the expenditure of money from the
fund. Retains all other provisions in present law.
Dedication of Mineral Revenues
Present law provides for the dedication of mineral revenues to 13 separate funds, to the
Louisiana State Employees' Retirement System and the Teachers' Retirement System of
Louisiana, and to the Revenue Stabilization Trust Fund.
Proposed law repeals the dedication of mineral revenues to the following: the Louisiana
Wildlife and Fisheries Conservation Fund, the Oil and Gas Regulatory Dedicated Fund
Account, the Louisiana Education Quality Trust Fund, the Louisiana Quality Education
Support Fund, Mineral Revenue Audit and Settlement Fund, the Transportation Trust Fund,
the Revenue Stabilization Trust Fund, the Louisiana State Employees' Retirement System,
and the Teachers' Retirement System of Louisiana. Retains the provisions in present law
related to the dedication of mineral revenues to the Bond Security and Redemption Fund,
the political subdivisions of the state, the Louisiana Wildlife and Fisheries Conservation
Fund, the Rockefeller Wildlife Refuge and Game Preserve Fund, the Marsh Island Operating
Fund, the Russell Sage or Marsh Island Refuge Fund, the MC Davis Conservation Fund, the
White Lake Property Fund, the Coastal Protection and Restoration Fund, and the Budget
Stabilization Fund.
Louisiana Unclaimed Property Permanent Trust Fund
Present law creates a special fund in the state treasury called the Louisiana Unclaimed
Property Permanent Trust Fund. Prohibits appropriations from the fund. Provides for the
fund to ensure a source of payment for claims made by owners of unclaimed property.
Deposits into the fund derive from the amount of all monies received as a result of the
Uniform Unclaimed Property Act of 1997. Provides for realized capital gains, dividend
income, and interest income earned on the investments in the fund to be deposited into the
state general fund.
Proposed law retains present law and provides for investment of monies in the fund.
Revenue Stabilization Fund
Present law creates a special fund in the state treasury called the Revenue Stabilization Trust
Fund. Deposits into the fund derive from mineral revenues, as provided by law, and revenues
in excess of $600M from corporate franchise and income tax. Further provides for allowable
uses of monies in the fund when the balance is in excess of $5B. Appropriations may be
made from the fund in an amount not to exceed 10% of the fund balance for: (1) capital
outlay projects and (2) transportation infrastructure. Allows for the minimum fund balance
and the allowable percentage to be changed by law enacted with a 2/3 vote of the legislature.
Provides for uses of monies in the fund during an emergency.
Proposed law retains the special fund in the state treasury, but changes the name to the
Revenue Stabilization Fund. Removes all other present law provisions.
Proposed law authorizes use of monies in the fund for a one-time payment to each parish
which elects to irrevocably exempt business inventory from ad valorem tax prior to July 1,
2026. Further authorizes monies in the fund to be used when revenues from corporate income
tax collections fall below $800M. Allows the legislature to appropriate an amount not to
exceed the difference between the actual corporation income tax collections and $800 M.
Provides that unexpended and unencumbered monies in the fund at the end of the fiscal year
remain in the fund.
Proposed law will be repealed on July 1, 2027. Upon repeal, the treasurer is authorized and
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directed to transfer any remaining monies in the fund to the state general fund, which shall
then be recognized as nonrecurring revenues.
Coastal Protection and Restoration Fund
Present law creates a special fund in the state treasury called the Coastal Protection and
Restoration Fund. Provides for deposit, use, and investment of monies in the fund.
Proposed law changes internal cross references to the Constitution of Louisiana and state
statutes to align with House Bill No. 7. Provides for the treasurer to deposit $25 M of mineral
revenues into the fund. Repeals provisions in present law related to caps on deposits of
mineral revenues into the fund. Proposed law retains all other provisions of present law.
Artificial Reef Development Fund
Present law creates a special fund in the state treasury called the Artificial Reef Development
Fund. Provides for deposit, use, and investment of monies in the fund.
Proposed law makes technical changes. Further changes internal cross references to the
Constitution of Louisiana to align with House Bill No. 7 of the 2024 3
rd
E.S. of the
Legislature. Adds siting, designing, and constructing of artificial reefs as an allowable use
of monies in the fund. Requires the state treasurer to submit an annual report to the Dept. of
Wildlife and Fisheries containing a statement of monies in the fund. Proposed law retains all
other provisions of present law.
Transportation Trust Fund
Present law provides for 60% of the avails of the motor vehicle sales tax to be deposited into
the Construction Subfund and the Megaprojects Leverage Fund.
Proposed law changes the allocation of the avails of the motor vehicle sales tax for FY 25-26
and 26-27. Requires $40 M be deposited into the Megaprojects Leverage Fund for the I-10
Calcasieu River Bridge and I-10 Improvements Account. Proposed law then returns
allocations to present law provisions for FY 27-28. Effective upon signature of the governor.
Repealed Funds
Present law creates a special fund in the state treasury called the Mineral Revenue Audit and
Settlement Fund. Provides for the deposit, use, and investment of monies in the fund.
Proposed law repeals the Mineral Revenue Audit and Settlement Fund and directs the state
treasurer to transfer any balance in the fund to the state general fund.
Proposed law repeals certain provisions within the Oilfield Site Restoration Fund. Provides
for the repeal of the certification from the state treasurer to the Secretary of Revenue when
the balance in the fund reaches $14M. Provides for the repeal of provisions regarding when
fees may be collected after the certification. Provides for the repeal of provisions which lists
the monies that shall not be counted to determine the balance of the fund.
Proposed law repeals the provision in present law that caps the percentage of expenditures
for inshore fisheries habitat enhancement projects from the Artificial Reef Development
Fund. Effective upon signature of the governor.
Louisiana State Law Institute
Proposed law authorizes and directs the law institute to review all statutes which contain
citations being changed by proposed law and the Act that originated as House Bill No. 7 of
the 2024 3
rd
E.S. of the Legislature. Effective if and when the proposed amendment of Art.
7 of the Constitution of La. contained in the Act which originated as House Bill No. 7 of this
2024 3
rd
E.S. of the Legislature is adopted at a statewide election and becomes effective.
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Proposed law authorizes and directs the law institute to study and make recommendations
to revise statutory language to comply with changes that will be made by proposed law and
the Act which originated as House Bill No. 7 of the 2024 3
rd
E.S. of the Legislature. The law
institute is directed to report to the legislature by Feb. 15, 2025. Effective upon signature of
the governor.
Effectiveness
Repealed provisions of law and all other sections of this bill (unless otherwise stated)
become effective if and when the proposed amendment of Art. 7 of the Constitution of La.
contained in the Act which originated as House Bill No. 7 of the 2024 3
rd
E.S. of the
Legislature is adopted at a statewide election and becomes effective.
Proposed law regarding the Revenue Stabilization fund shall become effective on July 1,
2025 if the proposed amendment of Art. 7 of the Constitution of La. contained in the Act
which originated as House Bill No. 7 of the 2024 3
rd
E.S. of the Legislature is adopted at a
statewide election and becomes effective. The repeal of the Revenue Stabilization Fund is
effective on July 1, 2027.
(Amends R.S. 17:3801(A) and (C) and 3802(A)(1), R.S. 30:86(A)(1) and 2483(B)-(E), R.S.
39:94(A), (B), and (C)(5), 98.1, 98.2(A) and (E), 98.3(A) and (C)(intro. para.), 98.4(A) and
(F), 100.112, 110.116(A)(intro. para.), (1)-(3), (10), (12), and (B), and 100.161(B)(3), R.S.
49:214.5.4(B)-(J), R.S. 48:77(A), and R.S. 56:639.8(C) and (E)(1); Adds R.S. 30:86(I)-(K)
and 2483(F) and (G), R.S. 39:100.118, and R.S. 56:639.8(H); Repeals R.S. 17:3801-3805,
R.S. 30:86(C), and R.S. 39:97, 98.3(C) and (E), 100.112, 100.116(A)(4), (9), (11), and (13),
(C), and (D), R.S. 49:214.5.4(K), and R.S. 56:639.8(E)(3))
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