Louisiana House Bill HB7 Comm Sub / Analysis

                    SSHB7 2549 207
HOUSE SUMMARY OF SENATE AMENDMENTS
HB 7	2024 Third Extraordinary Session Emerson
FUNDS/FUNDING:  (Constitutional Amendment) Revises Article VII of the Constitution
of La. (Items #1, 2, 7, and 14)
Synopsis of Senate Amendments
1.Limits 2/3 vote requirement for enactment or increase in fees or civil fines by
a board, department, or agency to those imposed or assessed by an executive
branch board, department, or agency.
2.Removes language that would have required locals to exempt prescription
drugs from sales tax.
3.Adds provision authorizing locals to change sales tax ordinances to conform
existing levies with authority granted to locals by law.
4.Adds provision requiring 2/3 vote to change membership or authority of the
Uniform Local Sales Tax Board (established in present law).
5.Reduces maximum state individual income tax rate from 4.75% to 3.75%.
6.Adds prohibition regarding additional tax or licenses levied or imposed on
oil, gas, or sulphur leases or rights. 
7.Adds brine as a severance tax for which the state must remit a portion of
collections to the parish in which production occurs and caps remittal at ½ of
such tax.
8.Prohibits legislature from modifying severance remittals to parishes in which
production occurred to a level below the amount provided for on July 1,
2024.
9.Delays implementation of Government Growth Limit to Fiscal Year 2026-
2027.
10.Limits application of Government Growth Limit to appropriations from the
Stage General Fund (Direct) means of finance.
11.Authorizes legislature to provide by law for exceptions to application of the
Government Growth Limit.
12.Deletes dedication of 15% corporate franchise and income tax receipts and
15% of mineral revenues to Budget Stabilization Fund.
13.Designates the Louisiana Fund and the Local Revenue Fund as Program
Funds.
14.Requires state treasurer to transfer liquidated fair market value of certain
assets to the Teachers' Retirement System of La. no later than May 1, 2025.
15.Adds business inventory as a class of property taxed at 15% of fair market
value.
Page 1 of 25 SSHB7 2549 207
16.Authorizes any parish to reduce the percentage of fair market value they assess
business inventory at and requires legislature to provide for the implementation
of this provision by a law enacted by 2/3 vote.
17.Adds provision prohibiting additional value to assessment of land by reason of
certain minerals or their production thereon.  Establishes exception for
valuation of oil or gas well for ad valorem taxes.
18.Requires 3/4 vote of legislature to exempt property from ad valorem tax by law.
19.Adds exemption from ad valorem tax for property owned by a nonprofit
operated exclusively for religious purposes as a house of worship, residential
housing for clergy, priests, or nuns, or a seminary or other educational
institution training individuals for religious ministry.
20.Adds provision requiring treasurer to allocate severance tax to locals for
remainder of Fiscal Year 2024-2025 in accordance with law in effect on July 1,
2024.
21.Adds special assessment levels for senior citizens and veterans.
22.Modifies ballot language.
23.Makes technical and conforming changes.
Digest of Bill as Finally Passed by Senate
Present constitution (Article XIII, §1) authorizes revision of present constitution by joint
resolution. Authorizes revision of an entire article of present constitution in one instrument,
which may contain multiple objects. Authorizes repeal of a Section or subdivision by
reference. Proposed constitutional amendment retains present constitution.
Proposed constitutional amendment, as more fully described below, revises Article VII of
the state constitution relative to revenue and finance. 
POWER TO TAX
Present constitution (Art. VII, §1) vests the power of taxation in the legislature and prohibits
the judicial branch from exercising this power through court order. Proposed constitutional
amendment retains present constitution.
Present constitution (Art. VII, §2) requires a law enacted by a 2/3 vote of the legislature to
levy a new tax, increase an existing tax, or repeal an existing tax exemption. Proposed
constitutional amendment retains present constitution and further requires enactment by a 2/3
vote of the legislature for the enactment of an exemption, exclusion, deduction, credit, or
rebate or an increase in the amount of a deduction, credit, or rebate.
Present constitution (Art. VII, §2.1) provides requirements for enactment of new fees or civil
fines or increases in existing fees or civil fines imposed by the state or any board,
department, or agency thereof. Proposed constitutional amendment redesignates present
constitution as Art. VII, §3.  Further restricts application to the state or any board,
department, or agency of the executive branch.
Present constitution (Art. VII, §2.2) establishes limitations on the state's authority to levy
sales and use taxes on food for home consumption (as defined by law); natural gas,
electricity, and water sold directly to the consumer for residential use; and prescription drugs.
Proposed constitutional amendment redesignates present constitution as Art. VII, §4 and
otherwise retains present constitution. Further provides that the sales and use tax levied by
Page 2 of 25 SSHB7 2549 207
a political subdivision shall apply to any sale at retail, use, lease, rental, consumption, or
storage as authorized by or required by law.  Authorizes local taxing authorities to amend
their ordinances relative to sales and use taxes to conform any existing levy to the authority
granted to those taxing authorities pursuant to applicable law.
Present constitution (Art. VII, §2.3) prohibits new taxes or fees upon the sale or transfer of
immovable property after Nov. 30, 2011. Proposed constitutional amendment redesignates
present constitution as Art. VII, §5 and otherwise retains present constitution. Moves present
constitution (Art. VII, §4) prohibition on the levy of severance, income, inheritance, or motor
fuel taxes by a political subdivision to proposed constitutional amendment Art. VII, §5.
Otherwise retains said prohibition. Further prohibits the enactment on and after Jan. 1, 2026,
of any new sales and use tax exemption, exclusion, credit, rebate, or refund unless it is
applicable to both the state and political subdivisions.
Present constitution (Art. VII, §3) requires the legislature to prohibit the issuance of process
to restrain the collection of any tax. Requires the prompt remittance to political subdivisions
of funds collected by the single collector or centralized collection arrangement. Authorizes
the legislature to provide by law for the collection of sales and use taxes levied by political
subdivisions or by a central collection commission in parishes where a single collector has
not been established. Proposed constitutional amendment redesignates present constitution
as Art. VII, §6 and otherwise retains present constitution. Present constitution requires a
single collector for each parish for sales and use taxes levied by political subdivisions in said
parish prior to July 1, 1992.  Proposed constitutional amendment repeals present constitution.
Further provides that revenues collected by the state on behalf of a taxing authority are
property of the taxing authority for whom they are collected.  Maintains the operations and
funding of the Uniform Local Sales Tax Board and requires any changes to its membership
or reduction in its authority be enacted by law with a 2/3 vote of the legislature.
INCOME TAXES
Present constitution (Art. VII, §4) authorizes levy of income tax and establishes a maximum
rate. Proposed constitutional amendment redesignates present constitution as Art. VII, §7 and
retains present constitution. Present constitution authorizes federal income taxes paid as an
allowed deductible in the computation of state income taxes for the same period. Proposed
constitutional amendment repeals present constitution. Present constitution provides a
maximum individual income tax rate of 4 and 3/4 percent. Proposed constitutional
amendment changes the maximum rate to a maximum rate of 3 and 3/4 percent. Proposed
constitutional amendment further provides that for tax years beginning after Dec. 31, 2025,
a person sixty-five years of age or older is entitled to an additional standard deduction equal
to the amount applicable for a single individual provided by law (R.S. 47:294).
SEVERANCE TAXES
Present constitution (Art. VII, §4) authorizes the levy of taxes by the state on natural
resources severed from the soil or water. Proposed constitutional amendment redesignates
the severance tax provisions as Art. VII, §8 and otherwise retains this authorization. Present
constitution establishes specific authorizations, requirements, and prohibitions regarding the
levy of severance taxes by the state. Proposed constitutional amendment repeals these
authorizations, requirements, and prohibitions. Present constitution further provides that the
presence of oil or gas or the production thereof may be included in the methodology to
determine the fair market value of an oil or gas well for ad valorem taxes. Proposed
constitutional amendment repeals this authorization.
Present constitution (Art. VII, §4) requires remittal of certain portions of sulphur severance,
lignite severance, timber severance, and other natural resources (other than sulphur, lignite,
or timber) to the governing authority of the parish in which severance or production occurs.
Proposed constitutional amendment retains present constitution (as Art. VII, §8). Present
constitution establishes specific allocations of severance taxes (and monetary caps on such
allocations) that are to be remitted pursuant to present constitution, based on when the
Page 3 of 25 SSHB7 2549 207
allocation is made. Pursuant to present constitution, governing authorities are to receive the
following:
(1)1/3 of the sulphur severance tax, not to exceed $100,000.
(2)1/3 of the lignite severance tax, not to exceed $100,000.
(3)1/5 of the severance tax on all natural resources other than sulphur, lignite, or timber,
not to exceed $850,000; however, this cap is increased each year since 2008, by an
amount equal to the average annual increase in the Consumer Price Index for all
urban consumers.
(4)3/4 of the timber severance, without cap.
Present constitution further provides for revised distribution of such severance taxes,
beginning with the first official forecast that shows severance tax revenues from natural
resources other than sulphur, lignite, or timber exceed the actual severance tax revenues from
such resources collected in FY 2008-2009. Proposed constitutional amendment repeals these
allocations and caps and the revised distribution schedule and establishes the allocation as
follows:
(1)1/3 of the sulphur severance tax.
(2)1/3 of the lignite severance tax.
(3)½ of the brine severance tax.
(4)1/5 of the severance tax on all natural resources other than sulphur, lignite, or timber.
(5)3/4 of the timber severance tax.
Further authorizes the legislature, by law, to do any of the following:
(1)Increase or decrease the proportion of tax avails to be remitted for any of the
severance taxes allocated in proposed constitutional amendment.
(2)Establish an annual maximum that may be remitted for any of the severance taxes.
Present constitution dedicates 1/10 of the royalties from mineral leases on state-owned land
and lake and river beds and other water bottoms belonging to the state to the governing
authority of the parish in which severance or production occurs. Further authorizes the
governing authority to fund such royalties into general obligation bonds. Proposed
constitutional amendment retains present constitution.
Proposed constitutional amendment (instrument Section 9) requires the state treasurer to
allocate severance taxes to political subdivisions for the remainder of Fiscal Year 2024-2025
in accordance with law in effect on July 1, 2024.
CIGARETTE TAX
Present constitution (Art. VII, §4.1) establishes a minimum rate for taxes levied on cigarettes.
Proposed constitutional amendment repeals present constitution.
MOTOR VEHICLE LICENSE TAX
Present constitution (Art. VII, §5) authorizes the imposition of an annual license tax by the
state on automobiles for private use. Prohibits parishes and municipalities from levying such
a tax. Proposed constitutional amendment redesignates present constitution as Art. VII, §9
and otherwise retains present constitution. Present constitution establishes requirements and
Page 4 of 25 SSHB7 2549 207
restrictions relative to such tax. Dedicates revenues from such tax, after payment of other
obligations, to the Transportation Trust Fund. Proposed constitutional amendment repeals
present constitution.
BONDS
Present constitution (Art. VII, §6) limits the power of the state to issue bonds, except in
certain circumstances. Provides for the pledge of the full faith and credit of the state to the
repayment of its bonds. Requires a 2/3 vote of the legislature to propose a statewide
referendum to authorize incurrence of debt for any purpose for which the legislature is not
authorized to incur debt by present constitution. Provides for limitations and exceptions.
Proposed constitutional amendment redesignates present constitution as Art. VII, §10 and
otherwise retains present constitution.
Present constitution (Art. VII, §7) establishes the Interim Emergency Board to make
appropriations from the state general fund or borrow on the full faith and credit of the state
in certain circumstances. Provides for the composition and powers of the Board including
limits on its authority. Proposed constitutional amendment redesignates present constitution
as Art. VII, §11 and otherwise retains present constitution.
Present constitution (Art. VII, §8) establishes the State Bond Commission and authorizes
provision for its membership and authority by law. Requires prior written approval of the
Commission before any bond or other obligation can be issued or sold, directly or indirectly,
by the state. Further establishes requirements for issuing and challenging the validity of such
bonds. Proposed constitutional amendment redesignates present constitution as Art. VII, §12
and otherwise retains present constitution.
STATE MONIES
Present constitution (Art. VII, §9) requires all money received by the state or any state board,
agency, or commission to be deposited immediately upon receipt into the state treasury.
Provides exceptions for certain specific classes of revenue. Establishes the Bond Security and
Redemption Fund and, with certain exceptions, requires all state money deposited in the
treasury to be credited to such fund. Proposed constitutional amendment redesignates present
constitution as Art. VII, §13 and otherwise retains present constitution.
Present constitution (Art. VII, §10) establishes the Revenue Estimating Conference and
provides for its composition and powers. Requires the Conference to adopt an official
forecast of revenues to be received by the state general fund and dedicated funds and to
revise such estimate as necessary. Further requires revenues in such forecast to be designated
as either recurring or nonrecurring. Proposed constitutional amendment redesignates present
constitution as Art. VII, §14 and otherwise retains present constitution.
(a) Expenditure Limit
Present constitution (Art. VII, §10) requires the legislature to provide for the determination
of an expenditure limit for each fiscal year. Caps annual growth of the limit at the average
annual percentage rate of change of personal income for La. as defined and reported by the
U.S. Dept. of Commerce for the three calendar years prior to the fiscal year for which the
limit is calculated. Authorizes the legislature to change the limit in any fiscal year by a
favorable vote of two-thirds of the elected members of each house. Requires any change in
the expenditure limit to be approved by passage of a specific legislative instrument which
clearly state the intent to change the limit. Proposed constitutional amendment retains present
constitution.
Present constitution (Art. VII, §10) establishes an exception to the expenditure limit for
funds allocated by present constitution (Art. VII, §4). Proposed constitutional amendment
makes technical change and otherwise retains present constitution.
Page 5 of 25 SSHB7 2549 207
(b) Government Growth Limit
Proposed constitutional amendment establishes the Government Growth Limit ("growth
limit") for Fiscal Year 2026-2027 and for each fiscal year thereafter. Except in certain limited
circumstances provided in proposed constitutional amendment, prohibits spending of
recurring revenues from the State General Fund (Direct) means of finance above such limit.
Requires the Revenue Estimating Conference to adopt a growth limit no later than the first
quarter of the calendar year for the ensuing fiscal year. Further requires the legislature to
provide by law for a procedure to calculate such limit. 
Proposed constitutional amendment requires that if the growth limit calculated for any fiscal
year exceeds the expenditure limit calculated for the same fiscal year, the growth limit shall
be equal to the expenditure limit for that fiscal year. Additionally provides that if the
legislature lowers the expenditure limit in a fiscal year and the resulting limit is lower than
the growth limit for that fiscal year, the growth limit for that fiscal year is automatically
lowered to equal the expenditure limit set by the legislature.
Proposed constitution restricts appropriation of recurring revenue amounts from State
General Fund (Direct) means of finance recognized in the official forecast above the growth
limit and below the expenditure limit to nonrecurring expenses. For the purposes of proposed
constitutional amendment, the term "nonrecurring expense" means an expense that is not of
a continuing or recurring character and that in the normal course of administration is not
expected to be necessary in approximately the same amounts each year.
Further authorizes the legislature to change a growth limit by a favorable vote of two-thirds
of the elected members of each house if each of the growth factors for any of the three fiscal
years immediately preceding the year to be changed was two and one-half percent or less.
Requires any change to the limit be approved by passage of a specific legislative instrument
which clearly states the intent to change the limit.  Additionally authorizes the legislature to
provide by law for exceptions to application of the growth limit.
Proposed constitutional amendment exempts certain severance and royalty payments made
pursuant to present constitution (Art. VII, §4(D) and (E)) from the provisions of proposed
constitutional amendment.
(c) Appropriations
Present constitution (Art. VII, §10) requires an appropriation made in accordance with law
to withdraw money from the state treasury. With specific exception for certain severance and
royalty payments, prohibits appropriations from the state general fund and dedicated funds
from exceeding the expenditure limit for the fiscal year. Proposed constitutional amendment
makes technical changes and otherwise retains present constitution.
Present constitution (Art. VII, §10) restricts appropriation or allocation of any money
designated in the official forecast as nonrecurring to six specific purposes:
(1)Retiring or defeasance of bonds.
(2)Providing payments against the unfunded accrued liability of public retirement
systems. Requires at least 25% of nonrecurring monies to be appropriated to the state
retirement systems for application to their oldest debt.
(3)Funding for capital outlay projects in the comprehensive state capital budget.
(4)For allocation or appropriation to the Budget Stabilization Fund.
(5)For allocation or appropriation to the Coastal Protection and Restoration Fund.
(6)For new highway construction for which federal matching funds are available.
Page 6 of 25 SSHB7 2549 207
Proposed constitutional amendment, with one change noted below, retains present
constitution. Present constitution (Art. VII, §10.3), as will be discussed later, places a cap on
the total amount of deposits that may be made into the Budget Stabilization Fund. Proposed
constitutional amendment authorizes deposits of nonrecurring monies into the Fund unless
the deposit would cause the Fund's balance to exceed its constitutional cap.
(d) Supplemental Pay
Present constitution (Art. VII, §10) requires the legislature to provide by law for the payment
by the state of supplements to the salaries of full-time local law enforcement and fire
protection officers. Prohibits reduction of such payments. Requires the legislature to
appropriate funds sufficient to fully fund the cost of such supplements. Authorizes the
governor to reduce such appropriation in certain circumstances using means provided in the
Act containing the appropriation. Proposed constitutional amendment retains present
constitution.
(e) Budgets and Deficits
Present constitution (Art. VII, §10) prohibits appropriations from the state general fund and
dedicated funds for any fiscal year (except for specific royalty and severance payments) from
exceeding the official forecast in effect at the time the appropriations are made. Proposed
constitutional amendment requires appropriations of recurring revenue from the state general
fund and dedicated funds to comply with the provisions of the Government Growth Limit.
Makes technical changes and otherwise retains present constitution.
Present constitution (Art. VII, §10) requires the legislature to establish a procedure to
determine if appropriations will exceed the official forecast and a method for adjusting
appropriations in order to eliminate a projected deficit. Once enacted, prohibits change to
such procedures except by specific legislative instrument which receives a favorable vote of
2/3 of the legislature. Authorizes adjustments to constitutionally protected or mandated
allocations or appropriations (and transfer of monies associated with such adjustments) in
certain circumstances. Further grants authority to remediate projected deficits. Requires the
governor to call a special session if necessary adjustments are not made to appropriations to
eliminate a projected deficit within 30 days of its recognition. Proposed constitutional
amendment retains present constitution.
Present constitution (Art. VII, §10) exempts certain funds and allocations from deficit
avoidance procedures. Proposed constitutional amendment makes technical and conforming
changes and otherwise retains present constitution.
Present constitution (Art. VII, §10) requires elimination of a year-end deficit no later than
the end of the next fiscal year. Further requires the legislature to have published a regular
statement of receipts and expenditures of all state money at least annually. Prohibits
appropriation except for a public purpose. Proposed constitutional amendment retains present
constitution.
Present constitution defines "state general fund and dedicated funds" for the purposes of
Article VII. Proposed constitutional amendment makes conforming change and otherwise
retains present constitution.
BUDGET STABILIZATION FUND
Present constitution (Art. VII, §10.3) establishes the Budget Stabilization Fund and provides
for the deposit and uses of monies in the fund. Proposed constitutional amendment
redesignates present constitution as Art. VII, §15 and retains authorized uses of monies in
the fund. With respect to deposits into the fund, present constitution requires the following:
(1)All money available for appropriation from the state general fund and dedicated
funds in excess of the expenditure limit.
Page 7 of 25 SSHB7 2549 207
(2)25% of any money designated in the official forecast as nonrecurring.
(3)Any money appropriated by to the fund by the legislature.
(4)All remaining revenues received in each fiscal year by the state in excess of $950 M
as a result of the production of or exploration for minerals after certain required
allocations. Further defines minerals for the purposes of present constitution.
Authorizes the threshold amount to be increased under certain circumstances.
(5)An amount equivalent to the money received by the state from the federal
government for the reimbursement of costs associated with a federally declared
disaster, not to exceed certain limits.
Proposed constitutional amendment, with the exception of deposit of mineral revenues as
explained below, for both the current fiscal year and all out years retains present constitution
regarding deposit of monies into the fund. With respect to the deposit of mineral revenues
in the current fiscal year, proposed constitutional amendment (instrument Section 3) retains
present constitution requirements, except with respect to the deposit of mineral revenues into
the La. Education Quality Trust Fund (LEQTF) prior to deposit into the Budget Stabilization
Fund, because the LEQTF is being repealed by proposed constitutional amendment.
Beginning Fiscal Year 2025-2026, proposed constitutional amendment repeals present
constitution requirements regarding deposit into the fund of mineral revenues above a certain
threshold amount. 
Present constitution prohibits use of monies in the fund unless certain conditions are met.
Proposed constitutional amendment retains present constitution.
Present constitution requires monies in the fund to be invested as provided by law and
earnings realized each fiscal year on such investment are to be deposited to the credit of the
fund. Unexpended and unencumbered monies in the fund at the end of the fiscal year remain
in the fund. Proposed constitutional amendment retains present constitution.
Present constitution prohibits use of more than 1/3 of the fund balance as of the beginning
of the current fiscal year in any fiscal year. Proposed constitutional amendment retains
present constitution.
Present constitution prohibits appropriation or deposit to the fund if it would cause the
balance in the fund to exceed four percent of total state revenue receipts for the previous
fiscal year. Proposed constitutional amendment increases this cap to seven and one-half of
one percent of total state revenue receipts for the previous fiscal year.
TRANSPORTATION TRUST FUND
Present constitution (Art. VII, §27) establishes the Transportation Trust Fund and provides
for deposit and use of monies in the fund. Requires deposit of remaining avails received each
year from all taxes levied on gasoline and motor fuels and on special fuels after payment of
certain bonded indebtedness. Requires monies in the fund to be used solely and exclusively
for the costs for an associated with construction and maintenance of the roads and bridges
of the state and federal highway systems, the Statewide Flood-Control Program or its
successor, ports, airports, transit, and the Parish Transportation Fund and for the payment of
any obligations incident to the issuance, security, and payment of bonds or other obligations
payable from the trust. Authorizes the issuance of bonds secured by a pledge of a portion of
the revenues deposited into the fund, not to exceed the avails of four cents per gallon.
Provides requirements and restriction on the issuance of such bonds. Proposed constitutional
amendment redesignates present constitution as Art. VII, §16, makes technical and
conforming changes, and otherwise retains present constitution.
Present constitution establishes a Construction Subfund within the Transportation Trust
Fund. Prohibits use of monies in the subfund for the payment of employee wages and related
Page 8 of 25 SSHB7 2549 207
benefits or employee retirement benefits. Dedicates the avails of any new taxes that become
effective and are levied on gasoline, motor fuels, or special fuels on or after July 1, 2017, to
the Subfund. Proposed constitutional amendment repeals this dedication of revenue to the
Subfund. Otherwise retains present constitution.
Present constitution requires an annual appropriation for airports to be a sum equal to, but
not greater than, the annual estimated revenue to be derived from the state taxes to be
collected and received on aviation fuel. Proposed constitutional amendment (instrument
Section 4) retains present constitution for Fiscal Year 2024-2025. Beginning with the
appropriation for Fiscal Year 2025-2026, proposed constitutional amendment requires that
the annual appropriation for airports be calculated as provided by law.
COASTAL PROTECTION AND RESTORATION F UND
Present constitution (Art. VII, §10.2) establishes the Coastal Protection and Restoration Fund
in the state treasury. Provides that monies in the fund may be appropriated for purposes
consistent with the Coastal Protection Plan developed by the Coastal Protection and
Restoration Authority, or its successor. Prohibits appropriation from the fund inconsistent
with the purposes of such plan. Requires deposit into the fund of federal monies received
each fiscal year received by the state generated from Outer Continental Shelf energy
production, including oil and gas activity, solar energy, etc., and eligible as provided by
federal law to be used for the purposes of the fund. Requires such federal monies to be used
only for the purposes of coastal protection, including conservation, coastal restoration,
hurricane protection, and infrastructure directly impacted by coastal wetland losses. Requires
monies in the fund to be invested as provided by law and any earnings realized from such
investment be deposited into the fund. Authorizes deposit into the account of donations,
appropriations, and dedications. Requires any unexpended monies remaining in the fund at
the end of the fiscal year be retained in the fund. Proposed constitutional amendment
redesignates present constitution as Art. VII, §17 and otherwise retains these provisions of
present constitution.
Present constitution requires the state treasurer to make certain allocations from certain
revenues received in each fiscal year by the state as a result of the production of or
exploration for minerals from severance taxes, royalty payments, bonus payments, or rentals.
Once such allocations are done, present constitution further requires the treasurer to deposit
into the Coastal Protection and Restoration Fund from remaining revenues an amount up to
$5 M, provided that the balance of the fund which consists of these mineral revenues shall
not exceed an amount provided by law, which shall be no less than $500 M. After such
deposit, remaining revenues are deposited according to a threshold schedule; however, the
cap on the amount of the fund balance that may be comprised of mineral revenues (described
above) applies. Proposed constitutional amendment repeals present constitution.  Further
authorizes the legislature to provide by law for dedication of revenues to the fund and
prohibits any change to such dedication except by law enacted by 2/3 vote of the legislature.
Present constitution exempts federal revenues deposited from Outer Continental Shelf
activity from the fund's mineral revenue balance cap. Proposed constitutional amendment
repeals present constitution. 
Present constitution provides that if the state resecuritizes proceeds from the Tobacco
Settlement Agreement after July 1, 2006, then 20% in the aggregate of the revenues received
as a result of the securitization. Provides for use of such monies. Proposed constitutional
amendment repeals present constitution.
SPECIAL CLASSES OF TRUSTS AND FUNDS
(a) Permanent Trust Funds
Proposed constitutional amendment (Art. VII, §18) authorizes the legislature to designate
certain funds as "Permanent Trust Funds". Provides that any fund so designated is subject
Page 9 of 25 SSHB7 2549 207
to the following restrictions:
(1)Except for certain exceptions in proposed constitutional amendment, all funds
deposited into a permanent trust fund shall constitute the trust's principal and shall
be held in trust permanently and invested by the state treasurer as provided by law.
(2)Removal of any portion of the principal, except for investment purposes as
authorized by law, requires a constitutional amendment.
(3)Interest and investment earnings from monies held in the fund may be dedicated as
provided by law. Once such dedication is enacted, it cannot be changed except by a
law enacted by the favorable vote of 2/3 of the members of each house of the
legislature.
(4)Unless provided otherwise by the constitution or by the provisions of the subfund,
the provisions of proposed constitutional amendment apply to any subfund created
within a permanent trust.
(5)A fund's status as a permanent trust fund may only be changed by law enacted by the
favorable vote of two-thirds of the elected members of each house of the legislature.
Proposed constitutional amendment further designates the Millennium Trust (proposed
constitutional amendment Art. VII, §20) and the La. Unclaimed Property Permanent Trust
Fund (proposed constitutional amendment Art. VII, §40) as a Permanent Trust Funds.
Further authorizes any other trust designated by law to be a permanent trust fund.
(b) Program Funds
Proposed constitutional amendment (Art. VII, §19) authorizes the legislature to create and
designate funds as program funds by law enacted by the favorable vote of 2/3 of the elected
members of each house of the legislature. Further prohibits any change to a program fund
except by a law passed by the favorable vote of 2/3 of the members of each house of the
legislature.
Further designates each of the following existing funds as program funds and authorizes the
legislature to designate others by law:
(1)The Artificial Reef Development Fund.
(2)The Oil Spill Contingency Fund.
(3)The Oilfield Site Restoration Fund.
(4)The La. Fund.
(5)The Local Revenue Fund.
LA. EDUCATION QUALITY TRUST F UND
Present constitution (Art. VII, §10.1) establishes the LEQTF. Required certain portions of
monies received by the state from a settlement with the federal government regarding mineral
production activity or leasing activity on the Outer Continental Shelf be deposited into the
LEQTF and held as part of a permanent trust fund. Further requires deposit into the
permanent trust fund 25% of the interest income earned on investment of monies in the
permanent trust fund, 75% of the realized capital gains on permanent trust fund monies, and
25% of dividend income earned on permanent trust fund monies be deposited into the
permanent trust fund. Prohibits appropriation from the permanent trust fund. 
Within the LEQTF, present constitution also established the "Support Fund" and requires
Page 10 of 25 SSHB7 2549 207
deposit of 75% of the recurring revenues received pursuant to federal law (43 U.S.C.
1337(g)) which are attributable to mineral production activity or leasing activity. Further
requires deposit of the percent remaining of the realized capital gains and interest income and
dividend income earned on investment of the permanent trust fund.
Requires deposits in conformity with allocations described above until the balance in the
permanent trust fund reaches $2 B. Thereafter requires all interest earnings and all recurring
revenues be credited to the Support Fund.
Requires monies in the permanent trust fund to be invested by the treasurer and authorizes
up to 35% to be invested in stock. Authorizes monies in the Support Fund to be available to
pay expenses incurred in the investment and management of the permanent trust fund and
for educational purposes as provided in present constitution.
Present constitution requires the State Board of Elementary and Secondary Education
(BESE) and the Board of Regents to submit annual reports to the legislature regarding
proposed programs and budgets for monies in the Support Fund.
Present constitution authorizes appropriation from the Support Fund only for investment and
management expenses and for educational purposes. Requires available monies to be
appropriated equally between higher education and elementary and secondary education
purposes. Requires appropriation of monies for educational purposes be made to the Board
of Regents and BESE.
Present constitution prohibits monies appropriated from the Support Fund from displacing,
replacing, or supplanting appropriations from the general fund for other educational
purposes. With certain exceptions, prohibits appropriation of monies for any fiscal year from
the Support Fund for any purpose for which a general fund appropriation was made in the
previous year.
Present constitution provides a list of eligible purposes for monies appropriated to the Board
of Regents from the Support Fund, including the endowment of chairs for eminent scholars
and enhancing the quality of academic, research, or agricultural departments or unites within
an institution. Provides a list of eligible purposes for monies appropriated to BESE from the
Support Fund, including compensation to professional instructional employees, insuring
adequate supply of instructional materials, and funding school remediation programs.
Proposed constitutional amendment repeals present constitution.
OILFIELD SITE RESTORATION FUND
Present constitution (Art. VII, §10.6) establishes the Oilfield Site Restoration Fund within
the state treasury. Requires deposit of certain revenues into the fund. Further requires monies
in the fund be appropriated to the Dept. of Natural Resources (now the Dept. of Energy and
Natural Resources) for sole use for the programs and purposes of oilfield site restoration as
required by law. Provides that unexpended and unencumbered monies in the fund at the end
of the fiscal year remain in the fund. Requires investment of monies in the fund by the
treasurer as provided by law. Requires all interest earned on fund monies be deposited into
the fund. Requires the treasurer to prepare and submit to the department on a quarterly basis
a printed report showing the amount of money in the fund from all sources. Exempts certain
severance and royalty payments required by present constitution from the fund.
Proposed constitutional amendment repeals present constitution; however, proposed
constitutional amendment additionally designates this fund as a program fund in Art. VII,
§19, so it may continue in statute as a special class of protected fund.
OIL SPILL CONTINGENCY FUND
Present constitution (Art. VII, §10.7) establishes the Oil Spill Contingency Fund within the
Page 11 of 25 SSHB7 2549 207
state treasury. Requires deposit of certain revenues into the fund. Further requires monies in
the fund be appropriated solely for the programs and purposes of abatement and containment
of actual or threatened unauthorized discharges of oil as provided by law and for
administrative expenses associated with such programs and purposes. Provides that
unexpended and unencumbered monies in the fund at the end of the fiscal year remain in the
fund. Requires investment of monies in the fund by the treasurer as provided by law.
Requires all interest earned on fund monies be deposited into the fund. Prohibits the balance
of the fund to exceed $30 M or a balance established by law. Exempts certain severance and
royalty payments required by present constitution from the fund.
Proposed constitutional amendment repeals present constitution; however, proposed
constitutional amendment additionally designates this fund as a program fund in Art. VII,
§19, so it may continue in statute as a special class of protected fund.
MILLENNIUM TRUST
Present constitution (Art. VII, §10.8) establishes the Millennium Trust as a special permanent
trust in the state treasury. Requires deposit of certain monies received by the state as a result
of settling litigation against certain tobacco product manufacturers. Proposed constitutional
amendment retains present constitution.
Present constitution establishes three funds within the Millennium Trust: the Health
Excellence Fund, the Education Excellence Fund, and the TOPS Fund. As further explained
below, proposed constitutional amendment makes structural changes to the Health
Excellence and TOPS Funds and repeals the Education Excellence Fund in its entirety.
Present constitution requires deposit into the Millennium Trust of 75% of the total monies
received each year. Proposed constitutional amendment retains present constitution. Present
constitution requires that, beginning after the balance in the Millennium Trust reaches a total
of $1,380,000,000, monies deposited into the trust shall be allocated to the various funds
within the trust in accordance with present constitution. Proposed constitutional amendment
repeals present constitution and requires monies deposited into the trust from the settlement
agreement be allocated to the TOPS Fund.
Present constitution provides that the amount of settlement agreement revenues deposited
into the Millennium Trust and credited to the respective funds may be increased and the
amount of such revenues deposited into the La. Fund may be decreased by a specific
legislative instrument which receives a favorable vote of 2/3 of the legislature. Proposed
constitutional amendment retains present constitution. 
Present constitution requires the treasurer to invest monies credited to the Millennium Trust
with the same authority and subject to the same restrictions as monies in the LEQTF. Further
provides that the portion of monies in the Millennium Trust that may be invested in stock
may be increased to no more than 50% by a specific legislative instrument which receives
the favorable vote of 2/3 of the legislature. Requires the legislature to provide for procedures
for the investment of such monies by law. Authorizes the treasurer to contract (with State
Bond Commission approval) for the management of such investments and may pay costs
associated with such contract with an appropriation from the trust. Proposed constitutional
amendment repeals present constitution. 
(a) Health Excellence Fund
Present constitution requires the treasurer to credit to the Health Excellence Fund 1/3 of all
investment earning on the investment of monies in the trust. Further requires deposit in the
Health Excellence Fund of the revenues derived from the 4/20 of one cent per cigarette tax
levied pursuant to present law (R.S. 47:841(B)(3)). Proposed constitutional amendment
repeals present constitution and requires funding for the Health Excellence Fund to be
provided by law, but prohibits any portion of the settlement agreement proceeds from being
deposited into the fund. Present constitution requires the treasurer to report annually to the
Page 12 of 25 SSHB7 2549 207
legislature as to the amount of investment earnings credited to the Health Excellence Fund.
Proposed constitutional amendment repeals present constitution.
Present constitution limits appropriations from the Health Excellence Fund to an annual
amount not to exceed the estimated aggregate annual earnings from interest, dividends, and
realized capital gains on investment of the trust credited to the Health Excellence Fund and
the amount of proceeds credited to the fund from the cigarette tax avails (R.S. 47:841(B)(3)).
Proposed constitutional amendment repeals present constitution.
Present constitution restricts use of monies from the Health Excellence Fund to certain
enumerated purposes, including initiatives to ensure the optimal development of La.'s
children through the provision of appropriate health care and initiatives to benefit the citizens
of La. with respect to health care. Proposed constitutional amendment retains present
constitution.
(b) Education Excellence Fund
Present constitution requires the treasurer to credit to the Education Excellence Fund 1/3 of
all investment earnings on the investment of monies in the trust. 
Present constitution limits appropriations from the Education Excellence Fund to an annual
amount not to exceed the estimated aggregate annual earnings from interest, dividends, and
realized capital gains on investment of the trust allocated as provided in present constitution.
Limits appropriation to those aggregate investment earnings which are in excess of an
inflation factor as determined by the Revenue Estimating Conference. Limits the amount of
realized capital gains on investment which may be included in the aggregate earnings
available for appropriation from exceeding the aggregate of earnings from interest and
dividends for that year. 
Present constitution restricts use of monies from the Education Excellence Fund to certain
enumerated purposes, including to the La. Educational Television Authority and certain
special schools, for independent public schools approved by BESE, and for distribution to
each city, parish, and other local school system on a pro rata basis based on a prescribed
student population ratio. Further restricts expenditures to be for pre-kindergarten through
twelfth grade instructional enhancement for students. Specifically prohibits expenditures for
maintenance or renovation of buildings, capital improvements, and increases in employee
salaries. Requires each recipient entity to annually prepare and submit to the state Dept. of
Education a plan for expenditure of Education Excellence funds. Prohibits amounts
appropriated pursuant to present constitution from displacing, replacing, or supplanting
appropriations from the general fund for elementary and secondary education, including
implementing the Minimum Foundation Program. Requires the treasurer to maintain a record
of the amounts appropriated that remain in the state treasury. Any such amounts, and
investment earnings attributable to such amounts shall remain to the credit of each recipient
entity at the close of each fiscal year.
Proposed constitutional amendment repeals present constitution.
(c) TOPS Fund
Present constitution requires the treasurer to credit to the TOPS Fund 100% of the settlement
agreement proceeds deposited into the Millennium Trust. Proposed constitutional
amendment retains present constitution. Present constitution further allocates 1/3 of all
investment earnings on the investment of trust monies to the TOPS Fund. Proposed
constitutional amendment repeals present constitution and instead provides that additional
deposits may be made as provided by law. Present constitution requires the treasurer to report
annually to the legislature as to the amount of investment earnings credited to the TOPS
Fund. Proposed constitutional amendment repeals present constitution.
Present constitution limits appropriations from the TOPS Fund the amount of annual
Page 13 of 25 SSHB7 2549 207
settlement agreement proceeds credited to the fund and an annual amount not to exceed the
estimated aggregate annual earnings from interest, dividends, and realized capital gains on
investment of the trust. Further limits appropriation to those aggregate investment earnings
which are in excess of an inflation factor as determined by the Revenue Estimating
Conference. Proposed constitutional amendment repeals present constitution.
Present constitution restricts use of monies from the TOPS Fund to the support of state
programs for financial assistance for students attending La. institutions of postsecondary
education. Proposed constitutional amendment retains present constitution.
LOUISIANA FUND
Present constitution (Art. VII, §10.9) establishes the Louisiana Fund in the state treasury.
Requires deposit into the fund of all remaining monies received as a result of the settlement
agreement after deposits into the Millennium Trust as provided in present constitution.
Requires monies in the fund to be invested by the treasurer in the same manner as the state
general fund monies and all interest income on the investment of such monies be credited
to the fund. Requires unexpended and unencumbered monies in the fund at the end of the
fiscal year to remain in the fund.
Present constitution restricts appropriations from the Louisiana Fund to certain enumerated
purposes, including initiatives to ensure the optimal development of La.'s children through
enhancement of educational opportunities and the provision of appropriate health care and
direct healthcare services for tobacco-related illnesses. Further requires each appropriation
from the Louisiana Fund to include performance expectations to ensure accountability in the
expenditure of such monies.
Proposed constitutional amendment repeals present constitution; however, proposed
constitutional amendment additionally designates this fund as a program fund in Art. VII,
§19, so it may continue in statute as a special class of protected fund.
ARTIFICIAL REEF DEVELOPMENT FUND
Present constitution (Art. VII, §10.11) establishes the Artificial Reef Development Fund in
the treasury. Requires deposit into the fund grants, donations, and other forms of assistance
from private and public sources that are provided to the state for the purpose of siting,
designing, constructing, permitting, monitoring, and otherwise managing an artificial reef
system. Requires the treasurer to invest monies in the fund in the manner provided by law.
Provides that all unexpended and unencumbered monies in the fund at the end of the fiscal
year remain in the fund. Further requires deposit into the fund of interest earned on
investment of monies in the fund. Requires the treasurer to submit a written report to the
department on a quarterly basis showing the amount of money contained in the fund from
all sources. Restricts use of monies in the fund to the Dept. of Wildlife and Fisheries, or its
successor, for certain enumerated purposes, including salaries of personnel assigned to the
Artificial Reef Development Program, creating and managing an artificial reef system, and
inshore fisheries habitat enhancement projects. 
Proposed constitutional amendment repeals present constitution; however, proposed
constitutional amendment additionally designates this fund as a program fund in Art. VII,
§19, so it may continue in statute as a special class of protected fund.
CERTAIN SUPPORT AND ASSISTANCE PROGRAMS
Present constitution (Art. VII, §10.12) authorizes the legislature to provide by law for
programs to assist La. farmers and fishermen with support and expansion of their industries.
Proposed constitutional amendment repeals present constitution.
HOSPITAL STABILIZATION FORMULA AND FUND
Page 14 of 25 SSHB7 2549 207
Present constitution (Art. VII, §10.13) authorizes the legislature to annually adopt a Hospital
Stabilization Formula by concurrent resolution and majority vote of the members of each
house. Provides for legislative hearings on such resolution and requires the formula, to the
maximum extent possible, to enhance the economic viability of La. hospitals and reduce
shifting the cost of caring for La.'s needy residents to the state's insured residents.
Present constitution provides requirements and exclusions for the formula. Further provides
for termination of any assessment under the formula in certain circumstances.
Present constitution requires the legislature to appropriate an amount necessary to fund the
base reimbursement level for hospitals established in the most recent formula, which
appropriation may not be from the Hospital Stabilization Fund. Further requires the
legislature to appropriate the balance of the Hospital Stabilization Fund solely to fund the
reimbursement enhancements as provided in the most recent formula adopted by the
legislature. Prohibits the governor and the legislature from reducing any such appropriation
except in certain circumstances.
Present constitution establishes the Hospital Stabilization Fund in the state treasury. Requires
deposit into the fund of proceeds from the assessment collected pursuant to the Hospital
Stabilization Formula. Requires monies in the fund to be invested in the same manner as
monies in the state general fund and all interested earned on investment of fund monies to
be credited to the fund. Restricts appropriation from the fund to funding the reimbursement
enhancements established in the Hospital Stabilization Formula adopted by the legislature
for the fiscal year in which the assessment is collected.
Proposed constitutional amendment redesignates present constitution as Art. VII, §21 and
otherwise retains present constitution.
LOUISIANA MEDICAL ASSISTANCE TRUST F UND
Present constitution (Art. VII, §10.14) establishes the Louisiana Medical Assistance Trust
Fund within the treasury. Requires the treasurer to deposit into the fund all proceeds from
the fees collected by law relative to the fund. Provides for investment of fund monies in the
same manner as state general fund monies and for deposit of all interest earned on investment
of fund monies. Requires all unexpended and unencumbered monies in the fund at the end
of the fiscal year to remain in the fund.
Present constitution authorizes the treasurer to establish a separate account within the fund
for each health care provider group in which fees are collected. Requires monies collected
from each such group, and the interest earned on those monies, to be deposited into the
account created for that provider group. Further requires any monies deposited in the fund
from sources not required by law, and any interest earned on such monies, to be deposited
into a separate account within the fund known as "the general account".
Present constitution only authorizes appropriation from the fund if the appropriation is
eligible for federal financial participation pursuant to federal law (Title XIX of the Social
Security Act). Requires the balance of each account to be appropriated for reimbursement
services to the provider group which paid the fee; however, monies deposited into the general
account may be appropriated for any Medicaid Program expenditure.
Further provides that monies appropriated from the provider accounts cannot be used to
displace, replace, or supplant appropriations from the state general fund for the Medicaid
Program below the amount of state general fund appropriations to the Medicaid Program for
Fiscal Year 2013-2014.
Present constitution requires the legislature to appropriate funds necessary to provide for
Medicaid Program rates for each provider group which pays fees into the fund. Sets a
minimum for such appropriations and authorizes annual adjustment in accordance with
certain criteria. Prohibits reduction of such appropriation in the event of a deficit unless
Page 15 of 25 SSHB7 2549 207
certain criteria are met.
Proposed constitutional amendment redesignates present constitution as Art. VII, §22 and
otherwise retains present constitution.
REVENUE STABILIZATION TRUST FUND
Present constitution (Art. VII, §10.15) establishes the Revenue Stabilization Trust Fund in
the treasury. Requires deposit into the fund of certain mineral revenues as required by present
constitution (Art. VII, §10.16) and revenues in excess of $600 M received each fiscal year
from corporate franchise and income taxes. Requires investment by the treasurer of fund
monies in a manner provided by law. Further requires deposit into the state general fund of
all interest or other income from investment of Revenue Stabilization Trust Fund monies.
With certain exceptions, authorizes appropriation from the fund only if the balance of the
fund at the beginning of the fiscal year is in excess of $5 B (minimum fund balance) and then
such appropriation is capped at 10% (allowable percentage) of the fund balance. If
appropriation is authorized by these circumstances, present constitution limits the
appropriation to capital outlay projects in the comprehensive state capital budget and
transportation infrastructure. Present constitution authorizes the legislature to change the
minimum fund balance or the allowable percentage by a law enacted by 2/3 of the legislature.
Present constitution further provides that in order to ensure the money in the fund is available
for appropriation in an emergency, the legislature may authorize an appropriation from the
fund at any time for any purpose only after the consent of 2/3 of the members of each house.
Provides that the 2/3 consent may be satisfied upon obtaining written consent in a manner
provided by law.
Proposed constitutional amendment repeals present constitution.
MINERAL REVENUES
Present constitution (Art. VII, §10.16) establishes allocation of revenues received by the state
each year as a result of the production of or exploration for minerals. Requires deposits into
various trusts and funds and distributions to political subdivisions pursuant to present law
and constitution. After all such required deposits and distributions, requires 30% of such
remaining revenues in excess of $660 M and less than $950 M to be allocated to the La. State
Employees' Retirement System and the Teachers' Retirement System of La. for application
to the balance of the unfunded accrued liability of such system existing as of June 30, 1988.
Requires the remainder of such monies to be deposited into the Revenue Stabilization Trust
Fund.
Present constitution further requires any mineral revenues that would have been deposited
into the Budget Stabilization Fund but for the present constitution cap on the fund balance
are to be distributed as follows: 30% to the La. State Employees' Retirement System and the
Teachers' Retirement System of La. for application to the balance of the unfunded accrued
liability of such system existing as of June 30, 1988, and the remainder to be deposited into
the Revenue Stabilization Trust Fund.
Present constitution defines "mineral revenues" for the purposes of present constitution to
include severance taxes, royalty payments, bonus payments, or rentals, with the following
exceptions:
(1)Revenues designated as nonrecurring pursuant to present constitution (Art. VII, §10).
(2)Revenues received by the state as a result of grants or donations when the terms or
conditions thereof require otherwise.
(3)Revenues derived from any tax on the transportation of minerals.
Page 16 of 25 SSHB7 2549 207
Proposed constitutional amendment repeals present constitution.
CONSERVATION F UND
Present constitution (Art. VII, §10-A) establishes the Conservation Fund within the treasury.
Requires deposit of the following into the fund:
(1)All revenue from the types and classes of fees, licenses, permits, royalties, or other
revenue paid into the Conservation Fund as provided by law when the fund was
created and any increase in the amount charged for such fees, licenses, permits,
royalties and other revenue after the effective date of the fund. Authorizes the
legislature to enact a law specifically appropriating or dedicating such revenue to
another purpose or fund.
(2)The balance of the pre-existing Conservation Fund on June 30, 1988.
(3)All funds or revenues that may be donated expressly to the Conservation Fund.
Present constitution requires all monies in the fund to be appropriated to the Dept. of
Wildlife and Fisheries or its successor. Restricts use to the programs and purposes of
conservation, protection, preservation, management, and replenishment of the state's natural
resources and wildlife. Requires all unexpended and unencumbered monies in the fund at the
end of the fiscal year to remain in the fund. Requires investment of fund monies by the
treasurer in the manner provided by law and deposit of all interest earned on investment of
fund monies be deposited into the fund. Requires the treasurer to prepare and submit to the
department on a quarterly basis a printed report showing the amount of money contained in
the fund from all sources.
Proposed constitutional amendment redesignates present constitution as Art. VII, §23, makes
technical and conforming changes, and otherwise retains present constitution.
BUDGETS
Present constitution (Art. VII, §11) establishes requirements for operating and capital outlay
budgets. Requires the governor to submit to the legislature a budget estimate for the next
fiscal year setting forth all proposed expenditures. Required to include recommended
appropriations from the state general fund and dedicated funds and cannot exceed the official
forecast and expenditure limit for the fiscal year. Must comply with present constitution
requirements (Art. VII, §10 in present constitution, Art. VII, §14 in proposed constitutional
amendment) including use of nonrecurring monies and funding state supplemental pay.
Proposed constitutional amendment redesignates present constitution as Art. VII, §24 and
requires the executive budget to comply with the provisions of the Government Growth
Limit. Makes conforming changes and otherwise retains present constitution.
(a) Operating Budget
Present constitution requires the governor to cause to be submitted a general appropriation
bill for proposed ordinary operating expenditures which shall be in conformity with the
recommendations for appropriations contained in the budget estimate. Authorizes the
governor to submit one or more bills to raise additional revenues with proposals for the use
of these revenues. Proposed constitutional amendment retains present constitution.
(b) Capital Budget
Present constitution requires the governor to submit to the legislature at each regular session
a proposed five-year capital outlay program and request for implementation of the first year
of the program. Requires each capital improvement project to be evaluated as provided by
law prior to its inclusion in the legislature's adopted comprehensive capital budget. Requires
the legislature to provide by law for such evaluation procedures, standards, and criteria.
Page 17 of 25 SSHB7 2549 207
Prohibits change to these procedures except by a separate legislative instrument approved by
a favorable vote of 2/3 of the elected members of the legislature. Provides requirements for
projects that are not eligible for funding through the state's Transportation Trust Fund.
Provides that capital outlay projects approved by the legislature shall be made a part of the
comprehensive state capital budget, which the legislature is required to adopt. Proposed
constitutional amendment makes technical and conforming changes and otherwise retains
present constitution.
REPORTS AND RECORDS
Present constitution (Art. VII, §12) requires reports and records of the collection,
expenditure, investment, and use of state money and those relating to state obligations to be
matters of public records. Provides exception for returns of taxpayers and matters pertaining
to those returns. Proposed constitutional amendment redesignates present constitution as Art.
VII, §25 and otherwise retains present constitution.
INVESTMENT OF STATE FUNDS
Present constitution (Art. VII, §13) requires all money in the custody of the state treasurer
which is available for investment to be invested as provided by law. Proposed constitutional
amendment redesignates present constitution as Art. VII, §26 and otherwise retains present
constitution.
LOAN, PLEDGE, OR DONATION OF PUBLIC THINGS OF VALUE
Except as otherwise provided in present constitution, present constitution (Art. VII, §14)
prohibits the funds, credit, property, or things of value of the state or any political subdivision
from being loaned, pledged, or donated to or for any person, association, or corporation,
public or private. Further prohibits the state and any political subdivision thereof from
purchasing the stock of a corporation or association or for any private enterprise unless
authorized by present constitution. Proposed constitutional amendment redesignates present
constitution as Art. VII, §27 and otherwise retains present constitution.
Present constitution contains certain enumerated exceptions to the prohibition on the loan,
pledge, or donation of public things of value. Proposed constitutional amendment makes
technical changes and otherwise retains present constitution.
Present constitution provides that, for a public purpose, the state and its political subdivisions
or political corporations may engage in cooperative endeavors with each other, the United
States or its agencies, or with any public or private association, corporation, or individual.
Proposed constitutional amendment retains present constitution.
Present constitution exempts public funds, credit, property, or things of value loaned,
pledged, dedicated, or granted by prior state law or authorized to be loaned, pledged,
dedicated, or granted by prior laws and constitution from the prohibition contained in present
constitution for the full term as provided by any contract. Authorizes revocation by the
legislature in certain circumstances prior to the vesting of any contractual rights. Proposed
constitutional amendment retains present constitution.
Present constitution authorizes the donation or exchange of movable surplus property
between or among political subdivisions whose functions include public safety. Proposed
constitutional amendment retains present constitution.
RELEASE OF OBLIGATIONS
Present constitution (Art. VII, §15) prohibits the legislature from releasing, extinguishing,
or authorizing the release or extinguishment of any indebtedness, liability, or obligation of
a corporation or individual to the state, a parish, or a municipality. Authorizes the legislature
Page 18 of 25 SSHB7 2549 207
to provide by law for a system under which claims by the state or a political subdivision may
be compromised. Further authorizes the legislature to provide for the release of heirs to
confiscated property from taxes due at the date of its reversion to them. Proposed
constitutional amendment redesignates present constitution as Art. VII, §28; makes technical
changes; and otherwise retains present constitution.
PRESCRIPTION OF TAXES
Present constitution (Art. VII, §16) establishes a three-year prescriptive period for taxes,
except real property taxes, and for licenses. The period runs three years after the 31st day of
December in the year in which the taxes are due. Authorizes the legislature to provide by law
for interruption of such prescription. Proposed constitutional amendment redesignates
present constitution as Art. VII, §29; makes technical changes; and otherwise retains present
constitution.
LEGISLATION TO OBTAIN FEDERAL AID
Present constitution (Art. VII, §17) authorizes the legislature to enact laws to enable the state,
its agencies, boards, commissions, and political subdivisions and their agencies to comply
with federal laws and regulations in order to secure federal participation in funding capital
improvement projects. Proposed constitutional amendment redesignates present constitution
as Art. VII, §30 and otherwise retains present constitution.
TEACHER PAY RAISE
Proposed constitutional amendment (Art. VII, §31) requires the treasurer to transfer to the
Teachers' Retirement System of La. no later than May 1, 2025, the liquidated fair market
value of each of the following funds on the effective date of proposed constitutional
amendment:
(1)The Education Excellence Fund.
(2)The Louisiana Education Quality Trust Fund.
(3)The Louisiana Quality Education Support Fund.
Proposed constitutional amendment requires the Teachers' Retirement System of La. to apply
such monies to its oldest debt. Provides that if such monies are insufficient to fully liquidate
a debt schedule, the system shall reamortize the remaining debt for that schedule with annual
level-dollar payments over the remainder of the original amortization period.
Proposed constitutional amendment further requires employers participating in the Teacher's
Retirement System of La. to provide a permanent salary increase to eligible personnel, as
provided by law. Requires the increase to be funded using the employer's net savings
attributable to the payments to debt made pursuant to proposed constitutional amendment.
AD VALOREM TAXES
Present constitution (Art. VII, §18) requires property subject to ad valorem taxation to be
listed on the assessment rolls at its assessed valuation, which shall be a percentage of its fair
market value. Requires the percentage of fair market value to be uniform throughout the state
upon the same class of property. Present constitution additionally provides three exceptions
for the listing of property on the assessment rolls as a percentage of fair market value. Two
of these exceptions are:
(1)Bona fide agricultural, horticultural, marsh, and timber lands, as defined by law, and
buildings of historic architectural importance, which are to be assessed at 10% of
their use value rather than fair market value. (Art. VII, §18(C))
Page 19 of 25 SSHB7 2549 207
(2)For the phase-in of reappraisal values. (Art. VII, §18(F))
Proposed constitutional amendment redesignates present constitution as Art. VII, §32 and
otherwise retains present constitution. 
The third exception in present constitution to the listing of property on the assessment rolls
as a percentage of fair market value is property that qualifies for a special assessment level
pursuant to present constitution (Art. VII, §18(G)). Proposed constitutional amendment
excepts property that qualifies for a special assessment level as provided by law.
Present constitution establishes classifications of property subject to ad valorem taxation and
the percentage of fair market value applicable to each classification for the purpose of
determining assessed valuation as follows:
(1)Land = 10%.
(2)Improvements for residential purposes = 10%.
(3)Electric cooperative properties, excluding land = 15%.
(4)Public service properties, excluding land = 25%.
(5)Other property = 15%.
Proposed constitutional amendment adds a classification for public service properties,
excluding land, owned by a rail road company with a tax rate of 15% of fair market value.
Proposed constitutional amendment adds a classification for business inventory with a tax
rate of 15% of fair market value.
Proposed constitutional amendment allows a parish governing authority to elect to reduce
the percentage of fair market value applicable to business inventory and authorizes the
legislature by law to implement the reduction. Proposed constitutional amendment provides
that once the legislature has implemented a law providing for such reduction, it may only be
changed by law enacted with a 2/3 vote of the legislature.
Present constitution requires each assessor to determine the fair market value of all property
subject to taxation within his respective parish or district except public service properties
which the La. Tax Commission is required to value. Requires each assessor to determine the
use value of property that is to be assessed pursuant to such methodology (bona fide
agricultural, marsh, and timber lands, etc.) pursuant to present constitution (Art. VII,
§18(C)). Requires fair market value and use value to be determined in accordance with
criteria established by law which shall apply uniformly throughout the state. Proposed
constitutional amendment retains present constitution.
Present constitution provides that assessments are subject to review and provides for the
order of review by specific entities. Requires the legislature to establish procedures for such
review by law. Proposed constitutional amendment retains present constitution.
Present constitution requires all property subject to taxation to be reappraised and valued in
accordance with present constitution at intervals of not more than four years. Provides for
the phase-in of reassessed value in certain circumstances. Proposed constitutional
amendment makes conforming changes and otherwise retains present constitution.
STATE PROPERTY TAXATION
Present constitution (Art. VII, §19) establishes a maximum rate for state tax on property for
any purpose of 5.75 mills on the dollar of assess valuation. Proposed constitutional
amendment redesignates present constitution as Art. VII, §33 and otherwise retains present
constitution.
Page 20 of 25 SSHB7 2549 207
HOMESTEAD EXEMP TION
(a) Homeowners
Present constitution (Art. VII, §20) defines a bona fide homestead for the purposes of present
constitution and exempts the first $7,500 of assessed value of such homesteads from ad
valorem taxation. Proposed constitutional amendment redesignates present constitution as
Art. VII, §34 and otherwise retains present constitution. Present constitution applies the
homestead exemption even if the land is classified and assessed at use value pursuant to
present constitution. Proposed constitutional amendment applies the exemption even if the
land is classified and assessed at use value as provided by law.
Present constitution authorizes the homestead exemption to apply to surviving spouses,
former spouses, property owned by a trust, property subject to usufruct, and to trusts in
certain circumstances if certain conditions are met. Proposed constitutional amendment
retains present constitution.
Present constitution prohibits application of the homestead exemption on bond for deed
property, with certain exceptions. Prohibits extension or application of more than one
homestead exemption to any person. Prohibits extension of the exemption to municipal taxes
except: (a) in Orleans Parish to certain taxes; and (b) to any municipal taxes levied for school
purposes. Proposed constitutional amendment retains present constitution.
Present constitution provides for application of the homestead exemption to property
damaged or destroyed during a disaster or emergency if certain conditions are met. Proposed
constitutional amendment retains present constitution.
(b) Residential Leases
Present constitution authorizes the legislature to provide for tax relief to residential lessees
in the form of credits or rebates in order to provide equitable tax relief similar to that granted
to homeowners through homestead exemptions. Proposed constitutional amendment retains
present constitution.
OTHER AD VALOREM TAX EXEMP TIONS
Present constitution (Art. VII, §21) exempts certain property from ad valorem taxation.
Present constitution contains an exclusive list of such property, including but not limited to:
public lands, property leased to certain nonprofit corporations or associations for use solely
as housing for homeless persons, the legal reserve of domestic life insurance companies,
boats using gasoline as motor fuel, artwork listed as a consignment article by an art dealer,
and certain additional portions of assessed homestead value for persons meeting certain
criteria. Proposed constitutional amendment repeals present constitution and authorizes the
legislature, by law enacted by 3/4 of the members of each house, to exempt property from
ad valorem taxation. Further requires enactment by 2/3 of the members of the legislature for
any change to an ad valorem tax exemption once enacted. Further prohibits enactment of a
measure regarding ad valorem tax exemptions, exclusions, deductions, or credits in an even-
numbered year. Redesignates present constitution as Art. VII, §35. 
Proposed constitutional amendment provides an ad valorem tax exemption for property
owned by a nonprofit operated exclusively for religious purposes as:
(1)A house of worship.
(2)Residential housing for clergy, priests, or nuns. 
(3)A seminary or other educational institution training individuals for religious ministry.
Present constitution provides various ad valorem tax exemptions for homesteads owned and
Page 21 of 25 SSHB7 2549 207
occupied by a veteran with a service-connected disability rating.  The amount of the
exemption depends on the percentage of the veteran's disability rating by the U.S. Dept. of
Veterans Affairs.  Proposed constitutional amendment retains present constitution.
Present constitution (Art VII, §18) provides for special assessment levels for certain persons,
including but not limited to persons who are 65 years of age or older and persons who are
permanently totally disabled. Provides requirements and restrictions for receiving such
special assessment level and for the term of such special assessment level. Provides for
reassessment of the property when certain conditions are met. Proposed constitutional
amendment retains present constitution. 
PROHIBITIONS ON CERTAIN MANDATES
Proposed constitutional amendment (Art. VII, §36) prohibits the legislature from enacting
any law mandating a taxing authority to exempt business inventory from ad valorem tax.
Defines "business inventor" for the purposes of proposed constitutional amendment as the
aggregate of those items of tangible personal property that are held for sale in the ordinary
course of business, are currently in the process of production for subsequent sale, or are to
physically become a part of the production of such goods.
BUSINESS INVENTORY EXEMP TION PAYMENT
Proposed constitutional amendment (Art. VII, §37) authorizes a one-time payment to each
parish that elects to exempt, in accordance with law, business inventory from ad valorem tax.
Provides that such payment shall be made from the Revenue Stabilization Trust Fund.
Requires the payment to be disbursed to the tax collector of the parish and requires the tax
collector to then distribute the monies pro rata to each taxing authority that levies an ad
valorem tax within the parish. Provides that the amount of the payment pursuant to proposed
constitutional amendment shall be as provided by law and certified by the Dept. of Revenue.
Further requires that, notwithstanding any provision of the constitution to the contrary,
monies are to be disbursed by the treasurer to the collector within 30 days of receipt of a
certification from the secretary of the Dept. of Revenue that the parish has irrevocably
elected to exempt business inventory from ad valorem tax.
NO IMPAIRMENT
Present constitution (Art. VII, §22) prohibits application of provisions of the constitution
relative to ad valorem taxes and exemptions thereon (Part II of Art. VII of the constitution
of La.) in a manner that would either:
(1)Invalidate taxes authorized and imposed prior to the effective date of this
constitution.
(2)Impair the obligations, validity, or security of any bonds or other debt obligations
authorized prior to the effective date of present constitution.
Proposed constitutional amendment redesignates present constitution as Art. VII, §38 and
prohibits anything in the constitution or in law from being applied in a manner that would
either:
(1)Invalidate taxes authorized and imposed prior to the effective date of this
constitution.
(2)Impair the obligations, validity, or security of any bonds or other debt obligations
authorized prior to the effective date of present constitution or any amendment to Art.
VII.
ADJUSTMENT OF AD VALOREM TAX MILLAG ES
Page 22 of 25 SSHB7 2549 207
Present constitution (Art. VII, §23) authorizes adjustment to ad valorem tax millages in
certain circumstances to counteract the impact of enactment of the homestead exemption and
the uniform ad valorem tax on classes of property. Proposed constitutional amendment
repeals present constitution.
TAX ASSESSORS
Present constitution (Art. VII, §24) requires a tax assessor to be elected in each parish.
Provides for a four-year term of office and for his election, duties, and compensation to be
provided by law. Provides contingency for vacancy in the position of tax assessor. Further
provides that in Orleans Parish, the assessor is to be elected at the same time as the municipal
officers of New Orleans. Proposed constitutional amendment redesignates present
constitution as Art. VII, §39 and otherwise retains present constitution.
TAX SALES/ADMINISTRATION
(a) If the amendment to Art. VII, §25 is rejected by the electors of the state 
on December 7, 2024 
Present constitution (Art. VII, §25) prohibits the forfeiture of property for nonpayment of
taxes. Proposed constitutional amendment redesignates present constitution as Art. VII, §40
and retains present constitution. 
Present constitution authorizes advertisement of the sale of the property by the collector
without suit when the year in which taxes are due expires, after giving notice of delinquency
to the taxpayer. Requires advertisement to be published in the official journal of the parish
or municipality or as provided by law for sheriff's sales. Provides that property sold in a tax
sale shall be redeemable for three years after the date of recordation of the tax sale, by paying
the price given including costs, 5% penalty thereon, and interest at the rate of 1% per month
until redemption.
Proposed constitutional amendment repeals present constitution and provides that the
assessment of ad valorem taxes and other impositions on immovable property constitute a
lien and privilege on the property assessed in favor of the political subdivision to which taxes
and other impositions are owed. Further requires the legislature to provide by law for the
efficient administration of tax sales which shall include at a minimum: imposition of interest
not to exceed 1% per month on a non-compounding basis, imposition of penalty not to
exceed 5% of the delinquent taxes and other impositions, a time period during which liens
cannot be enforced, and a procedure for claiming excess proceeds from the sale of property
as a result of the enforcement of a lien. Further authorizes the legislature, by law, to provide
authority to the tax collector to waive penalties for good cause.
Present constitution sets for requirements for annulling a tax sale. Proposed constitutional
amendment repeals present constitution.
Present constitution requires the manner of notice and form of proceeding to quiet tax title
to be provided by law. Proposed constitutional amendment repeals present constitution.
Present constitution provides for sale of movables when taxes thereon are delinquent. Sets
forth criteria for such sales. Authorizes the tax collector to levy on incorporeal rights if he
cannot find corporeal movables of the delinquent to seize. Also authorizes the tax collector
to compel the delinquent to deliver for sale property in his possession or under his control
by summary rule. Proposed constitutional amendment retains present constitution.
Present constitution authorizes the legislature to postpone the payment of taxes, but only in
cases of overflow, general conflagration, general crop destruction, or other public calamity.
Proposed constitutional amendment repeals present constitution and authorizes
postponement by the legislature only in cases of an emergency declared by the governor or
a parish president pursuant to the La. Homeland Security and Emergency Assistance and
Page 23 of 25 SSHB7 2549 207
Disaster Act.
Present constitution authorizes the legislature to provide for the levying, assessing, and
collecting of postponed taxes and authorizes the creation of a fund from which loans may be
made through the Interim Emergency Board to the governing authority of the parish where
the calamity occurred. Provides for initial funding of such a fund and restrictions on loans
from the fund. Proposed constitutional amendment retains present constitution.
(b) If the amendment to Art. VII, §25 is approved by the electors of the state 
on December 7, 2024 
Present constitution (Art. VII, §25) prohibits the forfeiture of property for nonpayment of
taxes. Provides that the assessment of ad valorem taxes and other impositions on immovable
property constitute a lien and privilege on the property assessed in favor of the political
subdivision to which taxes and other impositions are owed. Further requires the legislature
to provide by law for the efficient administration of tax sales which shall include at a
minimum: imposition of interest not to exceed 1% per month on a non-compounding basis,
imposition of penalty not to exceed 5% of the delinquent taxes and other impositions, a time
period during which liens cannot be enforced, and a procedure for claiming excess proceeds
from the sale of property as a result of the enforcement of a lien. Further authorizes the
legislature, by law, to provide authority to the tax collector to waive penalties for good cause. 
Present constitution provides for sale of movables when taxes thereon are delinquent. Sets
forth criteria for such sales. Authorizes the tax collector to levy on incorporeal rights if he
cannot find corporeal movables of the delinquent to seize. Also authorizes the tax collector
to compel the delinquent to deliver for sale property in his possession or under his control
by summary rule.
Present constitution authorizes the legislature to postpone the payment of taxes, but only in
cases of an emergency declared by the governor or a parish president pursuant to the La.
Homeland Security and Emergency Assistance and Disaster Act. Further authorizes the
legislature to provide for the levying, assessing, and collecting of postponed taxes and
authorizes the creation of a fund from which loans may be made through the Interim
Emergency Board to the governing authority of the parish where the taxes are postponed.
Provides for initial funding of such a fund and restrictions on loans from the fund. 
 Proposed constitutional amendment redesignates present constitution as Art. VII, §40 and
otherwise retains present constitution. 
REVENUE SHARING
Present constitution (Art. VII, §26) provides for the annual distribution by law of $90M to
parishes based on population and number of homesteads in each parish in proportion to
population and number of homesteads throughout the state. Requires the legislature to
provide by law for a distribution formula and provides requirements for such formula.
Provides for who shall receive such distribution on behalf of parishes and authorizes political
subdivisions to pledge funds received pursuant to present constitution to the payment of
bonds. Proposed constitutional amendment redesignates present constitution as Art. VII, §41
and otherwise retains present constitution.
UNCLAIMED PROPERTY
Present constitution (Art. VII, §28) establishes the Unclaimed Property Permanent Trust
Fund within the treasury. Provides for deposit, investment, and use of monies in the fund.
Requires deposit of any realized capital gains, dividend income, and interest income earned
on investment of trust monies into the state general fund. Requires annual reports to the
legislature and the governor concerning the balance of the fund as of the close of the prior
year and the state's potential liability to unclaimed property claimants as of the same date.
Provides for access of trust fund assets if certain conditions are met. Provides that property
Page 24 of 25 SSHB7 2549 207
received by the state pursuant to present law (Unclaimed Property Act of 1997) and
deposited into the fund is private property held in trust until a claim is made for it by the
owner. 
Proposed constitutional amendment redesignates present constitution as Art. VII, §42, makes
technical changes, and otherwise retains present constitution.
MONIES HELD IN FUNDS TO BE REPEALED
After the effective date of proposed constitutional amendment (instrument Section 8)
deposits into the following funds are prohibited:
(1)La. Education Quality Trust Fund.
(2)La. Quality Education Support Fund.
(3)Mineral Revenue Audit and Settlement Fund.
(4)Education Excellence Fund.
Proposed constitutional amendment further directs the treasurer, until directed otherwise by
law, to deposit monies that would have been deposited into such fund into the state general
fund.
Proposed constitutional amendment (instrument Section 7) retains certain sums in the
following accounts for satisfaction of monies held to the credit of certain entities and current
year appropriations from such funds:
(1)La. Education Quality Trust Fund.
(2)La. Quality Education Support Fund.
(3)Education Excellence Fund.
Further provides that, notwithstanding any provision of proposed constitutional amendment
to the contrary, transfers from such funds to the Teachers' Retirement System of La. are net
of such amounts.
Proposed constitutional amendment (instrument Sections 5 & 6) establish timelines and
protocols for withdrawal of monies held in the Education Support Fund and the Education
Excellence Fund. Authorize monies withdrawn from such funds pursuant to proposed
constitutional amendment to be held in an escrow account at a fiscal agent bank, as defined
by law, until expended.
TECHNICAL AND CONF ORMING CHANGES
Proposed constitutional amendment makes technical changes to present constitution and
further makes conforming changes to align with changes proposed in proposed constitutional
amendment.
SUBMISSION TO VOTERS
Provides for submission of the proposed amendment to the voters at the statewide election
to be held March 29, 2025.
(Amends Const. Art. VII, §1 - 28; Adds Const. Art. VII, §29 - 42)
Page 25 of 25