SLS 24RS-1175 ENGROSSED
2024 Regular Session
SENATE BILL NO. 417
BY SENATOR PRESSLY
FUNDS/FUNDING. Creates the Oil and Gas Severance Subfund in the Parish
Transportation Fund. (7/1/24)
1 AN ACT
2 To amend and reenact R.S. 48:751 and to enact R.S. 48:752.1, 752.2, 753.1 and 756.1, to
3 create the Oil and Gas Severance subfund within the Parish Transportation Fund; to
4 provide for composition of the fund; to provide for statutory dedications to the
5 subfund; to provide for use of the subfund; and to provide for the distribution of
6 monies in the subfund; to provide for an effective date; and to provide for related
7 matters.
8 Be it enacted by the Legislature of Louisiana:
9 Section 1. R.S. 48:751 is hereby amended and reenacted and R.S. 48:752.1, 752.2,
10 753.1, and 756.1 are hereby enacted to read as follows:
11 §751. Parish transportation
12 A. There is hereby established in the state treasury a special fund to be
13 designated the "Parish Transportation Fund" to consist of the funds and to be used
14 for the purposes hereinafter provided in this Part.
15 B. There is hereby established within the Parish Transportation Fund
16 the "Oil and Gas Severance Subfund" to be used for the purposes hereinafter
17 provided in this Part.
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 417
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1 * * *
2 §752.1. Composition of the Oil and Gas Severance Subfund
3 The state treasurer shall credit to the Oil and Gas Severance Subfund of
4 the Parish Transportation Fund created by R.S. 48:751 et seq. funds from the
5 avails of state severance taxes on oil and gas in accordance with legislative
6 appropriation.
7 §752.2. Statutory dedications to the Oil and Gas Severance Subfund
8 The legislature shall appropriate on an annual basis to the subfund an
9 amount not less than five percent of the total avails from state severance taxes
10 on oil and gas.
11 * * *
12 §753.1. Use of Oil and Gas Severance Subfund
13 The monies in the subfund of the Parish Transportation Fund shall be
14 used solely to restore and maintain parish roads and bridges that facilitate and
15 are affected by operations and activities associated with the oil and gas industry.
16 Under no circumstances shall a parish issue or secure bonds with monies from
17 this subfund.
18 * * *
19 §756.1. Distribution formula of the Oil and Gas Severance Subfund
20 The monies in the subfund of the Parish Transportation Fund shall be
21 distributed on a pro-rata basis to the parishes limited by provisions of Article
22 VII, Section 4(D)(3) of the Constitution of Louisiana from retaining the entire
23 one-fifth of the total avails of oil and gas severance taxes within such parishes.
24 Section 2. This Act shall become effective on July 1, 2024; if vetoed by the governor
25 and subsequently approved by the legislature, this Act shall become effective on the day
26 following such approval by the legislature or July 1, 2024, whichever is later.
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 417
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The original instrument was prepared by Danielle Clapinski. The following
digest, which constitutes no part of the legislative instrument, was prepared
by Curry Lann.
DIGEST
SB 417 Engrossed 2024 Regular Session Pressly
Present law provides for a special fund in the state treasury designated as the "Parish
Transportation Fund".
Proposed law retains present law and establishes the "Oil and Gas Severance Subfund"
within the Parish Transportation Fund.
Proposed law requires the state treasurer to credit to the subfund monies from the avails of
state severance taxes on oil and gas based on legislative appropriation.
Proposed law requires the legislature to annually appropriate monies to the subfund equal
to at least 5% of the total avails from state severance taxes on oil and gas.
Proposed law requires all monies in the subfund be used to restore and maintain parish roads
and bridges affected by the oil and gas industry.
Proposed law prohibits a parish from issuing or securing bonds with monies from the
subfund.
Proposed law requires distribution of monies in the subfund on a pro-rata basis to parish
subject to limitations contained in Article VII, Section 4(D)(3) of the constitution.
Effective July 1, 2024.
(Amends R.S. 48:751; adds R.S. 48:752.1, 752.2, 753.1, and 756.1)
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Finance to the original
bill
1. Adds provision prohibiting a parish from issuing or securing bonds with
monies from the subfund.
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.