DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of the
legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law
or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 473 Original 2025 Regular Session Emerson
Abstract: Repeals certain funds in the state treasury and applies the monies from those funds to the
Unfunded Accrued Liability (UAL) of the Teachers' Retirement System of La. (TRSL).
LA. EDUCATION QUALITY TRUST F UND (LEQTF)
Present constitution (Art. VII, §10.1) establishes the LEQTF. Requires 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 of 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. Prohibits appropriation from the permanent trust fund.
Within the LEQTF, present constitution also establishes the "Support Fund" and requires 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 reached $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.
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.
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. Present constitution requires that, beginning after the balance in the Millennium Trust
reaches a total of $1.38 B monies deposited into the trust shall be allocated to the various funds
within the trust in accordance with present constitution.
(a) Health Excellence Fund
Present constitution requires the treasurer to credit to the Health Excellence Fund one-third of all
investment earnings on the investment of monies in the trust. Further requires deposit into 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)). Requires the treasurer to report annually to the legislature as to
the amount of investment earnings credited to the Health Excellence Fund. Proposed constitutional
amendment increases the amount of investment earnings that must be deposited in the account from
one-third to one-half. Otherwise retains 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)).
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 were in excess of an inflation factor as determined by
the Revenue Estimating Conference. Limits the amount of realized capital gains on investment
which could 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 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 remained in the state treasury. Any such amounts, and investment earnings
attributable to such amounts 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. Present constitution allocates 1/3 of all investment earnings on the investment of trust monies to the TOPS Fund. Requires the treasurer to
report annually to the legislature as to the amount of investment earnings credited to the TOPS Fund.
Proposed constitutional amendment increases the amount of investment earnings deposited into the
TOPS Fund from one-third to one-half. Otherwise retains present constitution.
Present constitution limits appropriations from the TOPS Fund to the amount of annual 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.
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.
RETIREMENT DEBT P AYMENT
Proposed constitutional amendment (Art. VII, §10.17) requires the treasurer to transfer to the
Teachers' Retirement System of La. no later than April 1, 2027, the liquidated fair market value of
each of the following funds:
(1)The Education Excellence Fund.
(2)LEQTF.
(3)The La. 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 provides that a participating employer's net savings
attributable to the payments made pursuant to proposed constitutional amendment shall be used as
provided by law.
MONIES HELD IN FUNDS TO BE REPEALED
Proposed constitutional amendment (Sections 3 & 4 of this Act) establish timelines and protocols
for withdrawal of monies held in the Education Support Fund and the Education Excellence Fund
to the credit of certain entities. Require certified balances owed to be transferred by the treasurer to
the Overcollections Fund. Provides restrictions on use of monies held in the Overcollections Fund
pursuant to proposed constitutional amendment Proposed constitutional amendment (Section 5 of this Act) retains certain sums in the following
accounts for satisfaction of monies held to the credit of certain entities and fiscal year 2026-2027
appropriations from such funds:
(1)LEQTF.
(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.
After the effective date of proposed constitutional amendment (Section 6 of this Act) deposits into
the following funds are prohibited:
(1)LEQTF.
(2)La. Quality Education Support Fund.
(3)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.
TECHNICAL CHANG ES
Present constitution (Art. VII, §10) exempts certain funds and allocations from deficit avoidance
procedures. Proposed constitutional amendment repeals exemption for LEQTF.
Proposed constitutional amendment makes technical and conforming changes throughout.
Effective Jan. 1, 2027.
Provides for submission of the proposed amendment to the voters at the statewide election to be held
November 3, 2026.
(Amends Art. VII, §10.8(A)(1), (2), and (4) and (C)(1); Adds Art. VII, §10.17; Repeals Art. VII,
§§10(F)(4)(d), 10.1, and 10.8(A)(3) and (C)(3))