03.18.16     America’s  WETLAND  Foundation   LOUISIANA BILLS POSING CONCERNS FOR COASTAL FUNDING Senate Bill 182 by Ward Constitutional amendment to require deposit of certain mineral revenue into the Transportation Trust Fund. http://www.legis.la.gov/legis/BillInfo.aspx?s=16RS&b=SB182&sbi=y • • Proposed constitutional amendment proposes to require the treasurer to deposit and credit to the Transportation Trust Fund mineral revenue in excess of $650 million and less than $950 million after allocation to the Bond Security and Redemption Fund as provided in Article VII, Section 9(B) of the Constitution of Louisiana, beginning Fiscal Year 2017-2018 and each fiscal year thereafter. Proposed constitutional amendment specifies that mineral revenues are revenues received in each fiscal year by the state as a result of the production or exploration for minerals, including severance taxes, royalty payments, bonus payments, or rentals, and excluding revenues received due to grants or donations when the terms or conditions thereof require otherwise, revenues from a tax on the transportation of mineral revenues, and mineral revenue allocations required under present constitution, specifically: (1) Severance tax and royalty payments to the political subdivisions of the state. (2) The Louisiana Wildlife and Fisheries Conservation Fund. (3) The Louisiana Education Quality Trust Fund (the "8g Fund"). (4) The Coastal Protection and Restoration Fund. (5) The Budget Stabilization Fund. • Proposed constitutional amendment requires mineral revenues deposited into the Transportation Trust Fund to only be used for the following: (1) 50% for state highway pavement and bridge sustainability projects. (2) 25% for highway priority program projects classified as capacity projects. (3) 25% for port construction and development priority program projects. • •   Specifies submission of the amendment to the voters at the statewide election to be held on November 8, 2016. Effective July 1, 2017. 1   03.18.16     America’s  WETLAND  Foundation   Senate Bill 214 by Walsworth Constitutional amendment to repeal certain constitutionally dedicated and protected allocations and funds. http://www.legis.la.gov/legis/BillInfo.aspx?s=16RS&b=SB214&sbi=y • • • • Present constitution provides for various constitutionally protected funds and dedications of monies. Present constitution provides for the Atchafalaya Basin Conservation Fund (Art. VII, Sec. 4(D)(4)(b)) which is a special treasury fund created in the Louisiana Constitution which provides that an amount equal to 50% of the revenues received from severance taxes and royalties on state lands in the Atchafalaya Basin, but not to exceed 10 million dollars each fiscal year, shall be deposited by the treasurer into the Atchafalaya Basin Conservation Fund. The monies in the fund shall be used exclusively for projects contained in the state or federal Basin master plans or an annual Basin plan developed and approved by the advisory or approval board created by law specifically for that purpose, or to provide match for the Atchafalaya Basin Floodway System, Louisiana Project. Proposed constitutional amendment repeals this fund. Present constitution provides for the Wildlife and Fisheries Conservation Fund (Art. VII, Sec. 10-A) which monies are derived from the following: (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 on the effective date of this Section. (2) The balance remaining on June 30, 1988, in the Conservation Fund established pursuant to R.S. 56:10. (3) All funds or revenues which may be donated expressly to the Conservation Fund. • • • •   Present constitution provides that the monies in the Conservation Fund shall be appropriated by the legislature to the Department of Wildlife and Fisheries, and shall be used solely for the programs and purposes of conservation, protection, preservation, management, and replenishment of the state's natural resources and wildlife. Proposed constitutional amendment repeals this fund. Present constitution provides that the monies in the La. Education Quality Trust Fund (LEQTF in rt. VII, Sec. 10.1) which is a permanent trust in the treasury were derived under Section 1337(g) of Title 43 of the United States Code that are attributable to mineral production activity or leasing activity in the Outer Continental Shelf. Created the Permanent Trust Fund and the Support Fund within the LEQTF. Monies may be spent from the Support fund for educational purposes-50% for higher education and 50% for elementary and secondary purposes. Proposed constitutional amendment repeals this fund. 2   03.18.16   • •   America’s  WETLAND  Foundation   Present constitution provides that the monies in the Budget Stabilization Fund (Art VII, Sec. 10.3) which receives funds from: all state general fund and dedicated funds in excess of the expenditure limit (except local severance and royalty allocations); mineral revenues over the base ($850 million) after allocation of monies to the Bond Security and Redemption Fund, after making local allocations of severance and royalty payments, and after requirements for the Conservation Fund and the La. Education Quality Trust Fund. Present constitution provides that the monies in the fund may be used: (1) If the official forecast of recurring money for the next fiscal year is less than the official forecast for the current fiscal year. The difference not to exceed one-third of the fund shall be incorporated into the next year's official forecast if approved by two-thirds of the members of each house of the legislature. (2) If a deficit for the current fiscal year is projected due to a decrease in the official forecast, an amount equal to one-third of the fund not to exceed the projected deficit may be appropriated if approved by two-thirds of the members of each house of the legislature. • • • • • • •   Proposed constitutional amendment repeals this fund. Present constitution provides that the monies in the Higher Education Louisiana Partnership Fund (Art. VII, Sec. 10.4) receives its monies from any monies appropriated by the legislature, grants, gifts and donations. Monies may be used for matching grants for the Higher Education Louisiana Partnership Program which shall be administered by the Board of Regents. Proposed constitutional amendment repeals this fund. Present constitution provides that the monies in the Mineral Revenue Audit and Settlement Fund (Art. VII, Sec. 10.5) are derived from settlements or judgments equaling, in both principal and interest, five million dollars or more resulting from underpayment of severance taxes, royalty payments, bonus payments, or rentals. Requires the treasurer to make allocations to the Bond, Security, and Redemption Fund, the severance and royalty payments to local governments, and as required to the Conservation Fund, the Coastal Protection and Restoration Fund, and the Budget Stabilization Fund. Present constitution provides that after making those allocations, the treasurer shall credit 35 million dollars into the Coastal Protection and Restoration Fund. Any monies that remain in the fund may be appropriated by the legislature for the purpose of retirement in advance of maturity of debt of the state or to the unfunded accrued liability of the public retirement systems. Proposed constitutional amendment repeals this fund. Present constitution provides that the monies in the Oilfield Site Restoration Fund (Art. VII, Sec. 10.6) are derived from all revenues from the types and classes of fees, penalties, other revenues, or judgments associated with site cleanup activities paid into the fund on the effective date of the amendment; any increase in such amounts charged after the effective date; the balance in the fund as of January 4, 1996; all funds or 3   03.18.16   • • •   America’s  WETLAND  Foundation   revenues which may be donated; and all site-specific trust account funds established by law. Present constitution provides that the monies in the fund shall be appropriated to the Department of Natural Resources and used solely for the programs and purposes of oilfield site restoration. Proposed constitutional amendment repeals this fund. Present constitution provides that the monies in the Oil Spill Contingency Fund (Art. VII, Sec. 10.7) are derived from: (1) All revenue from the types and classes of fees, taxes, penalties, judgments, reimbursements, charges, and federal funds collected or other revenue paid into the contingency fund as provided by law on the effective date of this Section. (2) The balance remaining on January 4, 1996, in the Oil Spill Contingency Fund established by law. (3) All funds or revenues which may be donated expressly to the fund. • • • • Present constitution provides that the monies in the fund shall be appropriated by the legislature to be used 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 as provided by law. Proposed constitutional amendment repeals this fund. Present constitution provides that the Millennium Trust (Art. VII, Sec. 10.8) was established as a special permanent trust in the state treasury pursuant to certain monies received following a Master Settlement Agreement with certain tobacco manufacturers in the United States. Seventy-five percent of the proceeds were allocated to the Millennium Trust. Proceeds and interest earnings on the Trust were allocated to the Health Excellence Fund, the Education Excellence Fund, and the TOPS Fund which were created within the Trust. Currently each of the funds get one-third of the annual interest earnings on the Trust, the Health Excellence Fund also gets the additional tobacco tax levy of four-twentieths of one cent per cigarette, and the TOPS Fund receives 100% of the Millennium Trust Settlement proceeds and one-third of annual interest. Present constitution provides for spending the monies as follows: (1) The TOPS Fund is spent exclusively for the state programs for financial assistance for students attending Louisiana institutions of postsecondary education. (2) The Health Excellence Fund shall be for initiatives for the state's children through the provision of appropriate health care and initiatives to benefit citizens through the pursuit of innovation in advance health care sciences. (3) The Educational Excellence Fund monies are provided for a variety of elementary and secondary education purposes.   4   03.18.16     America’s  WETLAND  Foundation   • Proposed constitutional amendment repeals this fund. • Present constitution provides that the monies in the Louisiana Fund (Art. VII, Sec. 10.9) are derived from the remaining 25% of the tobacco settlement allocation as provided in the Millennium Fund. Appropriations from the fund shall be restricted to the following purposes: (1) Initiatives to ensure the optimal development of Louisiana's children through enhancement of educational opportunities and provision of appropriate health care. (2) Initiatives to benefit citizens with respect to health care through the pursuit of innovation. (3) Provision of direct health care for tobacco-related illnesses; educational initiatives to diminish tobacco-related injury. • • • • • • • •   Proposed constitutional amendment repeals this fund. Present constitution provides that the monies in the Millennium Leverage Fund (Art. VII, Sec. 10.10) was established as part of the tobacco settlement. It authorized, by passage of a specific legislative instrument upon a two-thirds vote of each house of the legislature, for deposit of all or a portion of the monies received in the settlement. It allowed up to 50% of the monies to be invested in stock. It also allowed for the issuance of revenue bonds. Appropriations from the bond proceeds could be used for: 25% for the TOPS Fund; 25% for the Health Excellence Fund; 25% for the Education Excellence Fund; and 25% for the Louisiana Fund purposes. Proposed constitutional amendment repeals this fund. Present constitution provides that the monies in the Artificial Reef Development Fund (Art. VII, Sec. 10.11) which are derived from grants, donations of monies, and other forms of assistance from private and public sources for the purpose of siting, designing, constructing, permitting, monitoring, and otherwise managing an artificial reef system. Monies in the fund are appropriated by the legislature to the Department of Wildlife and Fisheries for such purposes. Proposed constitutional amendment repeals this fund. Present constitution provides that the monies in the Agricultural and Seafood Products Support Fund (Art. VII, Sec. 10.12) are derived from any monies it receives from the licensing of trademarks or labels for use in promoting La. agricultural and seafood products, grants, gifts, donations, and any other revenues as may be provided by law. Monies in the fund may be appropriated solely for the programs and purposes as required by the Department of Economic Development for assistance to La. farmers and fishermen. Proposed constitutional amendment repeals this fund. Present constitution provides for the Hospitalization Stabilization Fund (Art. VII, Sec. 10.13) and provides that the legislature may annually adopt a Hospital Stabilization 5   03.18.16   • • • • • • • • • • • • • •     America’s  WETLAND  Foundation   Formula to enhance the economic viability of La. hospitals and reduce shifting the cost of care for Louisiana's needy residents to the state's insured residents. Each formula shall establish reimbursement enhancements under the Medicaid Program. Proposed constitutional amendment repeals this fund. Present constitution provides that the monies in the Louisiana Medical Assistance Trust Fund (Art. VII, Sec. 10.14) are derived from fees as provided in law. The legislature is authorized to appropriate monies from the fund only if the appropriation is eligible for federal financial participation under Title XIX. Proposed constitutional amendment repeals this fund. Present constitution provides that the monies in the Revenue Sharing Fund (Art. VII, Sec. 26) are derived from the state general fund. Monies are annually allocated to parishes based on population and homesteads in each parish. Proposed constitutional amendment repeals this fund. Present constitution (Art. VIII, Sec. 13(B) and Art. VII, Sec. 10(F)(2)(a) and (b)) provides that the legislature shall annually appropriate sufficient monies to fully fund all public elementary and secondary schools to insure a minimum foundation of education throughout the state. Provisions prohibit reducing such funding unless consented to by a two-thirds vote of the members of each house of the legislature. Proposed constitutional amendment deletes the language containing a two-thirds consent requirement. Present constitution provides that the monies in the First Use Tax Trust Fund (Art. IX, Sec. 9) are derived from the first use tax imposed by law in 1978 or thereafter and any other tax imposed by law which would have the effect of imposing any new or alternative tax on the use of those resources subject to the first use tax. The treasurer shall pay into the state general fund such amounts as are necessary to fully reimburse the state general fund for tax credits granted in 1978. Proposed constitutional amendment repeals this fund. Present constitution provides that the monies in the Louisiana Investment Fund for Enhancement (Art. IX, Sec. 10) are derived from all revenues received by the state from the production of oil and gas within the state. Monies may be expended by appropriation by two-thirds of the members of each house of the legislature. Proposed constitutional amendment repeals this fund. Present constitution provides that the monies in the Lottery Proceeds Fund (Art. XII, Sec. 6) are derived from net proceeds from the operation of the lottery. The legislature shall annually appropriate from the fund only for the Minimum Foundation Program and no more than $500,000 for services related to compulsive and problem gaming as may be provided by law. Proposed constitutional amendment directs the net proceeds to the state general fund. Specifies submission of the amendment to the voters at the statewide election to be held on November 8, 2016. 6   03.18.16     America’s  WETLAND  Foundation   Senate Bill 315 by Donahue Provides relative to certain mineral revenues received by the state http://www.legis.la.gov/legis/BillInfo.aspx?s=16RS&b=SB315&sbi=y • • • Present law provides for various limitations on appropriations relative to state general funds and dedicated funds. Proposed law retains present law and add provision that appropriations by the legislature from mineral revenues generated from the price of oil received by the state in excess of forty dollars per barrel shall be limited to the purposes set forth in the constitution relative to money in the forecast designated as nonrecurring. Effective July 1, 2016. Senate Bill 346 by Carter Provides relative to certain special funds in the state treasury http://www.legis.la.gov/legis/ViewDocument.aspx?d=984064 • • • Proposed law specifically provides that notwithstanding any other law to the contrary and except as provided by the Constitution of Louisiana and the exceptions provided below, all special funds in the state treasury are abolished and any and all laws of the state which dedicate or otherwise provide for the use of money required by the Constitution of Louisiana to be deposited in the state treasury are superseded on the effective date of this Act. Proposed law provides that the treasurer is authorized and directed to transfer the balances of the abolished funds and deposit them into the general fund. Notwithstanding laws requiring certain money to be deposited in and credited to such abolished special funds, the treasurer, upon receipt of such money, and after compliance with the requirements of Article VII, Section 9(B) of the constitution relative to the Bond Security and Redemption Fund, shall deposit the money in and credit it to the general fund. All interest earned on investment of the money shall be deposited in and credited to the general fund. Proposed law provides that the abolition of special treasury funds shall not apply to or affect the laws which dedicate or otherwise provide for the use of the following money or the laws which provide for the following: (1) Special funds or dedications of money established in or protected by the Constitution of Louisiana or special funds containing money not required by the constitution to be deposited in the state treasury. (2) Special funds established in the treasury or dedications of money established solely as a requirement of the terms and conditions of, or as a requirement of an agreement pertaining to, the following:   7   03.18.16     America’s  WETLAND  Foundation   (a) Grants, donations, or other forms of assistance. (b) Court or regulatory agency orders or judgments. (c) Contracts of the state or of its agencies, boards, or commissions, including contracts related to the issuance of bonds, notes, and other indebtedness. (d) A contract concerning the satisfaction of final judgments, settlements, or compromises. (3) Special funds and dedications of money provided by law funded by assessments or surcharges for the satisfaction of final judgments, settlements, orders, awards, or compromises. (4) Special funds and dedications of money provided by law related to the judiciary or the legislature. (5) Any funds including interest earned thereon which are paid or deposited on a voluntary basis by persons or other private legal entities for their protection or benefit. • • • • Proposed law provides that the abolition shall not apply to that portion of any special fund or dedication of funds allocated or distributed to a local governmental or nongovernmental entity which authorizes the issuance of bonds, notes, and other evidences of indebtedness to such entity and only in the event that such monies have been obligated into bonds, notes, and other evidences of indebtedness as of the effective date of this Act. Proposed law also provides that upon the effective date of this Act, the state treasurer is hereby authorized and directed to create a sub fund within the state general fund and to deposit monies sufficient for the satisfaction of the obligations of such local governmental or non-governmental entity. Repeals provisions of present law which abolished certain special treasury funds, including certain excluded funds therein, as provided in R.S. 49:308.3, and originally enacted under the provisions of Act 5 of the First Extraordinary Session of 1988, effective July 1, 1988, and subsequent statutory changes which may be in conflict with the proposed law statutory provisions. Repeals several exclusions in present law relative to the abolition of laws dedicating money or special funds, as follows: (1) The Hazardous Waste Site Cleanup Fund created and maintained pursuant to R.S. 30:2205 and the Environmental Trust Fund created and maintained pursuant to R.S. 30:2015. (2) This Section shall not apply to or affect R.S. 47:5001 et seq. relative to the State Tax Revenue Limit. (3) This Section shall not apply to the Motorcycle Safety, Awareness, and Operator Training Program Fund as provided in R.S. 32:412(C)(2), the Proprietary School Student   8   03.18.16     America’s  WETLAND  Foundation   Protection Fund as provided for in R.S. 17:3141.16. Requests the La. State Law Institute to review all statutes relative to special treasury funds and dedicated funds abolished in this Act and change any references it deems appropriate in other locations of the Louisiana Revised Statutes of 1950. • Effective upon governor's signature or lapse of time for gubernatorial action. HB 477 and HB 504 by Ivey (companion bills) Abstract: Dedicates certain mineral revenues towards retirement liabilities of the state retirement systems and transportation, and modifies deposits into the Coastal Protection and Restoration Fund and Budget Stabilization Fund. http://www.legis.la.gov/legis/BillInfo.aspx?s=16RS&b=HB477&sbi=y Present law requires certain mineral revenues be deposited into the Coastal Protection and Restoration Fund, including 2% of all mineral revenue, the first $5 million of excess mineral revenue, $10 million over $600 million in excess mineral revenue, and $10 million over $650 million in excess mineral revenue. Present law requires amounts in excess of a mineral revenue base be deposited into the Budget Stabilization Fund. The current base was increased from $850 million to $950 million in the 2015 Regular Session. Present law provides that mineral revenues in excess of the prior mineral revenue base and the new mineral revenue base, not to exceed $100 million per year, shall be allocated for transportation purposes. The first $70 million for state highway pavement and bridge sustainability projects. Of the remainder, not to exceed $30 million, 7% goes to the Transportation and Infrastructure Bank and 93% is allocated as follows: 30% for capacity projects, 25% for port construction, 45% for state highway pavement and bridge sustainability projects. Proposed law deletes the allocations above to the Coastal Protection and Restoration Fund, the Budget Stabilization Fund, the Transportation Trust Fund, and the Transportation Infrastructure Bank Fund, but provides for allocations to such funds and others. Requires mineral revenues, including severance taxes, royalty payments, bonus payments, or rentals, and excluding such revenues designated as nonrecurring, revenues received by the state as a result of grants or donations when the terms or conditions thereof require otherwise, and revenues derived from any tax on the transportation of minerals, shall be available only for payments toward retirement liabilities after the following constitutional allocations of said mineral revenues have been made: (1) To the Bond Security and Redemption Fund. (2) The severance tax and royalties allocated to the political subdivisions of the state.   9   03.18.16     America’s  WETLAND  Foundation   (3) Deposits required into the Conservation Fund, the Louisiana Education Quality Trust Fund, and the Louisiana Education Quality Support Fund. (4) Deposits into the Coastal Protection and Restoration Fund. (5) Deposits into the Mineral Revenue and Audit Settlement Fund. Proposed law requires deposits and allocations in the following order: (1) Up to $5 million to the Coastal Protection and Restoration Fund. (2) Up to $50 million to the Transportation Trust Fund, to be used as follows: (a) The first $25 million for state highway pavement and bridge sustainability projects. (b) The next $10 million for highway priority program projects classified as capacity projects. (c) The next $10 million for port construction and development priority program projects. (d) The next $5 million for transfer to the La. State Transportation Infrastructure Fund for use by the La. State Transportation Infrastructure Bank. (3) Up to $500 million to the state retirement systems. Such money shall be allocated to each state retirement system in proportion to the balance of unfunded accrued liabilities of each such system. For each system, such allocation shall be applied to the oldest outstanding liability as defined by law. Such allocation shall be not used, directly or indirectly, to fund cost-of-living increases for such systems. (4) Up to $45 million per year to the state retirement systems to provide for cost-of living adjustments. Such money shall be allocated to each system in proportion to the total annual benefits paid to retirees and beneficiaries by that system. (5) Up to $10 million per year to the Coastal Protection and Restoration Fund. (6) Up to $40 million per year to the state retirement systems to provide for cost-of living adjustments. Such money shall be allocated to each system in proportion to the total annual benefits paid to retirees and beneficiaries by that system. (7) Up to $10 million per year to the Coastal Protection and Restoration Fund. (8) Up to $40 million to the Transportation Trust Fund, to be used as follows: (a) The first $20 million for state highway pavement and bridge sustainability projects. (b) The next $8 million for highway priority program projects classified as capacity projects. (c) The next $8 million for port construction and development priority program projects. (d) The next $4 million for transfer to the La. State Transportation Infrastructure Fund for use by the La. State Transportation Infrastructure Bank. (9) Up to $45 million to the state retirement systems. Such money shall be allocated to each state retirement system in proportion to the balance of unfunded accrued liabilities of each such system. For each system, such allocation shall be applied to the oldest outstanding liability as defined by law. Such allocation shall not be used, directly or indirectly, to fund cost-of-living increases for such systems.   10   03.18.16     America’s  WETLAND  Foundation   (10) Up to $50 million to the Transportation Trust Fund, to be used as follows: (a) The first $25 million for state highway pavement and bridge sustainability projects. (b) The next $10 million for highway priority program projects classified as capacity projects. (c) The next $10 million for port construction and development priority program projects. (d) The next $5 million for transfer to the La. State Transportation Infrastructure Fund for use by the La. State Transportation Infrastructure Bank. (11) To the Budget Stabilization Fund, until it reaches its capacity. (12) Up to $100 million to the Transportation Trust Fund, to be used as follows: (a) The first $50 million for state highway pavement and bridge sustainability projects. (b) The next $20 million for highway priority program projects classified as capacity projects. (c) The next $20 million for port construction and development priority program projects. (d) The next $10 million for use by a state transportation infrastructure bank. (13) Up to $300 million per year, to the state retirement systems. Such money shall be allocated to each state retirement system in proportion to the balance of unfunded accrued liabilities of each such system. For each system, such allocation shall be applied to the oldest outstanding liability as defined by law. Any allocations provided under this Subparagraph shall not be used, directly or indirectly, to fund cost-of-living increases for such systems. (14) Any remaining money, to be deposited into the Transportation Trust Fund. Effective if and when the proposed amendment of Article VII of the Constitution of La. contained in the Act which originated as House Bill No. of this 2016 R.S. of the Legislature is adopted at a statewide election and becomes effective. (Amends R.S. 39:94(A)(2), R.S. 49:214.5.4(C) and (F); adds R.S. 39:100.111; Repeals R.S. 48:77 and R.S. 49:214.5.4(B) and (D)) HB 508 and HB 716 by Jay Morris Abstract: Establishes the Mineral Revenue Stabilization Trust Fund and provides for the dedication of mineral revenues. http://www.legis.la.gov/legis/BillInfo.aspx?s=16RS&b=HB508&sbi=y Proposed law establishes the Mineral Revenue Stabilization Trust Fund as a permanent trust in the state treasury. Provides for the annual deposit of mineral revenues after a deposit of $600 million of mineral revenues into the state general fund. The deposit of mineral revenues into the fund shall exclude the following deposits of mineral revenues required under present constitution and present law, as follows: (1) The Bond Security and Redemption Fund. (2) Severance tax and royalty payments to the political subdivisions of the state. (3) The Louisiana Wildlife and Fisheries Conservation Fund. (4) The Oil and Gas Regulatory Fund.   11   03.18.16     America’s  WETLAND  Foundation   (5) The Rockefeller Wildlife Refuge Trust and Protection Fund. (6) The Marsh Island Operating Fund and the Russell Sage or Marsh Island Refuge Fund. (7) The MC Davis Conservation Fund. (8) The White Lake Property Fund. (9) The Louisiana Education Quality Trust Fund and the Louisiana Education Quality Support Fund (the "8g Fund"). (10) The Coastal Protection and Restoration Fund. (11) The Mineral Revenue and Audit Settlement Fund. (12) The Budget Stabilization Fund. Proposed law provides for the investment of money in the Mineral Revenue Stabilization Trust Fund in the same manner as investments of the Millennium Trust provided in present law. Further provides that for Fiscal Years 2018 through 2022, 100% of the annual earnings on investments in the fund shall be credited to the fund. Beginning in Fiscal Year 2023, 25% of the annual earnings from investments on the fund be credited to the fund. Proposed law provides beginning in Fiscal Year 2023, 75% of the annual earnings on investments in the fund shall be appropriated for the following: (1) 50% for capital outlay projects in the comprehensive state capital budget. (2) 50% percent for expenses of public postsecondary institutions of higher education. Further prohibits the annual earnings on investment in the fund from being pledged towards the repayment of bonded indebtedness. Present law establishes the Budget Stabilization Fund and provides for various deposits into the fund including mineral revenues collected by the state over a base amount of $950 million. Proposed constitutional amendment changes the deposit of mineral revenues collected by the state from over a base amount of $950 million to an amount not to exceed $200 million. Proposed constitutional amendment further eliminates the reference to a base and the authorization for increases to the base every 10 years. Present law provides for deposits of mineral revenues into the Coastal Protection and Restoration Fund including 2% of revenues after allocations to parishes in which the natural resources were collected. Further, the dedication to the Coastal Protection and Restoration Fund is reduced by other deposits into the fund required by present law. Proposed law retains present law and further provides that beginning in Fiscal Year 2017- 2018, the annual deposit shall not exceed the amount deposited in Fiscal Year 2014-2015.   12   03.18.16     America’s  WETLAND  Foundation   Effective if and when the proposed amendment of Article 7 of the Constitution of La. contained in the Act which originated as House Bill No. ______ of this 2016 R.S. of the Legislature is adopted at a statewide election and becomes effective. (Amends R.S. 39:94(A)(2) and R.S. 49:214.5.4(D)(1); Adds R.S. 39:100.111) HB 509 and HB 617 by Greg Miller Abstract: Provides for changes to the Budget Stabilization Fund and allocations of mineral revenues. http://www.legis.la.gov/legis/BillInfo.aspx?s=16RS&b=HB509&sbi=y Present law establishes the Budget Stabilization Fund and provides for various deposits into the fund including 25% of any nonrecurring revenues and mineral revenues collected by the state over a base amount of $950 million. Further authorizes the legislature to increase the base amount every 10 years. Proposed law decreases the base amount from $950 million to $700 million and eliminates the authority for the legislature to increase the base amount over which mineral revenues would be deposited into the fund. Present law prohibits the appropriation or deposit of any money into the fund if the deposit would cause the balance of the fund to be more than 4% of the total state revenue receipts for the previous year. Proposed law increases the cap for deposits or appropriations into the fund from 4% of the total state revenue for the previous year to the following: (1) 6% beginning in Fiscal Year 2018-2019. (2) 10% beginning in Fiscal Year 2019-2020, and for each fiscal year after. Present law requires that except pursuant to a specific appropriation by the legislature, or deposit of nonrecurring revenues, no appropriation or deposit will be made into the fund in a year in which the fund is used or until the official forecast is more than actual collections of state general fund (direct) revenue for Fiscal Year 2008. Further, present law is null, void, and of no effect on July 1, 2017. Proposed law deletes provision in present law restricting deposits until the official forecast is more than actual collections of state general fund (direct) revenue for Fiscal Year 2008. Proposed law further deletes provision that present law is null, void, and no effect on July 1, 2017. Proposed law further requires that no appropriation or deposit will be made into the fund in the year following the year when the fund was used. Proposed law provides that mineral revenues that would otherwise be deposited into the fund, but cannot because the fund has reached its cap, be appropriated against the unfunded accrued liability of the public retirement systems.   13   03.18.16     America’s  WETLAND  Foundation   Present law provides for the deposit of taxes imposed in present law into the Transportation Trust Fund (TTF) in an amount equal to the increase in general fund revenues from an increase in the base from $850 million to $950 million authorized by the legislature in the 2015 Regular Session of the Legislature. Proposed law changes present law to clarify that based on the changes to the base provided in proposed law, the TTF will receive revenues in excess of base mineral revenues of $600 million, not to exceed $100 million on a fiscal year. Effective if and when the proposed amendment of Article VII, Section 10.3 of the Constitution of La. contained in the Act which originated as House Bill No. _____ of this 2016 R.S. of the Legislature is adopted at a statewide election and becomes effective. (Amends R.S. 39:94(A)(2)(a)(intro. para.) and (b), (C)(4) and R.S. 48:77(A); Adds R.S. 39:94(C)(5) and (D)) HB 512 by Shadoin (needs a companion bill) Abstract: Eliminates certain constitutional dedications of revenue. http://www.legis.la.gov/legis/BillInfo.aspx?s=16RS&b=HB512&sbi=y Present constitution creates the Louisiana Education Quality Trust Fund (Const. Art. 7, §10.1) and deposits into the trust revenues from the federal government related to mineral activities on the outer continental shelf. Further prohibits appropriations from the trust and provides that once the balance of the trust reaches $2 billion, all recurring revenues in the trust are deposited into the state general fund. Proposed constitutional amendment changes the name of the trust from Louisiana Education Quality Trust Fund to the Louisiana Quality Trust Fund Present constitution further creates the Louisiana Quality Education Support Fund and deposits into the fund 75% of certain revenues into the trust and interest earnings from the trust. The monies in the fund are available for appropriation only for educational purposes. Proposed constitutional amendment eliminates the Louisiana Quality Education Support Fund. Changes the source receiving the deposit of 75% of revenues that go into the trust and interest earnings from the Louisiana Quality Education Support Fund to the state general fund. Present constitution creates the Millennium Trust (Const. Art. 7, §10.8) and deposits 75% of the monies received from the multi-state tobacco settlement agreement into the trust. Present constitution further creates the Louisiana Fund (Const. Art. 7,§10.9) and deposits 25% of the monies received from the multi-state tobacco settlement agreement. The monies in the Louisiana Fund are available for use for healthcare and educational purposes. Proposed constitutional amendment eliminates the Louisiana Fund and changes the amount deposited into the Millennium Trust from monies received from the multi-state tobacco settlement agreement into the trust from 75% to all monies received from the agreement.   14   03.18.16     America’s  WETLAND  Foundation   Present constitution further creates three funds within the Millennium Trust: the Health Excellence Fund, the Education Excellence Fund, and the TOPS Fund. Present constitution allocates 1/3 of the interest earnings on the trust to the Health Excellence Fund and the Education Excellence Fund. Monies in the Health Excellence Fund are available only for certain healthcare related purposes and the monies in the Education Excellence Fund are available only for certain healthcare related purposes. Present constitution allocates all of the monies received from the multi-state tobacco settlement agreement and deposited into the Millennium Trust into the TOPS Fund and further allocates 1/3 of the interest earnings on the trust to the TOPS Fund. Monies in the TOPS Fund can be used only for financial assistance for students attending Louisiana institutions of higher education. Proposed constitutional amendment eliminates the Health Excellence Fund, the Education Excellence Fund, and the TOPS Fund in the constitution. Proposed constitutional amendment changes the source receiving all of the monies from the tobacco settlement agreement and deposited into the Millennium Trust from the TOPS Fund to the state general fund. Further changes the source receiving the interest earnings on the trust from an allocation of 1/3 of the amount to the Health Excellence Fund, the Education Excellence Fund, and the TOPS Fund to the state general fund. Present constitution authorizes the legislature to create a state lottery and requires that the net proceeds be deposited into the Lottery Proceeds Fund and used to fund the Minimum Foundation Program (Const. Art. 12, §6). Proposed constitutional amendment deletes the requirement that the net lottery proceeds are deposited into the Lottery Proceeds Fund and used to fund the Minimum Foundation Program. Present constitution creates the Transportation Trust Fund (Const. Art. 7, §27) and deposits into the trust certain taxes on certain fuels and vehicle licenses (Const. Art. 7, §5). Proposed constitutional amendment changes the dedication of the tax on vehicle licenses from the Transportation Trust Fund to the state general fund. Proposed constitutional amendment retains present constitution regarding the deposit of taxes on fuels into the fund through Fiscal Year 2014-2017. For the fiscal year beginning on July 1, 2017, dedicates the one cent of the taxes levied on fuels necessary to the dedication to the Parish Transportation Fund, the amount necessary to satisfy revenues pledged for debt service on Jan. 1, 2015, and deposits of taxes levied on fuels into the trust may be provided by law. Present constitution authorizes the state to levy certain taxes on natural resources when they are extracted, also known as a severance tax, and certain mineral lease royalties (Art 7, §4). Present constitution dedicates certain portions of the taxes and royalties to the parish government authority in which the extraction or production of the natural resource occurred.   15   03.18.16     America’s  WETLAND  Foundation   Proposed constitutional amendment eliminates the dedication of the severance tax to parish government authorities. HB 584 by Schroder Abstract: Increases the amount of constitutionally protected or mandated appropriations that can be reduced and transferred to a fund with a projected deficit from 5% to 10%. http://www.legis.la.gov/legis/BillInfo.aspx?s=16RS&b=HB584&sbi=y Present constitution provides for a procedure for adjusting appropriations if there is a projected deficit in any fund. Present constitution provides for adjustment to constitutionally protected or mandated allocations or appropriations, and transfer of such monies to the fund in a projected deficit, not to exceed 5% when state general fund appropriations have been reduced in an aggregate amount of 7/10 of 1%. Present constitution further provides for adjustment to constitutionally protected or mandated allocations or appropriations, and transfer of such monies to the fund in a projected deficit, not to exceed 5% when the official forecast of recurring revenues for the next fiscal year is at least 1% less than the official forecast for the current fiscal year. Proposed constitutional amendment increases the maximum amount of adjustments from 5% to 10%. Proposed law further clarifies that the adjustments include fees and self-generated revenues for each budget unit. Provides for submission of the proposed amendment to the voters at the statewide election to be held November 8, 2016. (Const. Art. 7, §10(F)(2)(a) and (b)) HB 603 and HB 696 by Leger http://www.legis.la.gov/legis/ViewDocument.aspx?d=982872 Abstract: Creates the Revenue Stabilization Trust Fund as a special treasury trust fund and deposits into the fund mineral revenues and corporate income tax revenues. Proposed law establishes the Mineral Revenue Stabilization Trust Fund as a special treasury trust fund. Proposed law deposits into the fund mineral revenues between $650 million and $950 million received during the fiscal year. Further excludes the deposit into the fund of mineral revenues required under present constitution and present law, as follows: (1) The Bond Security and Redemption Fund. (2) Severance tax and royalty payments to the political subdivisions of the state. (3) The Louisiana Wildlife and Fisheries Conservation Fund.   16   03.18.16     America’s  WETLAND  Foundation   (4) The Oil and Gas Regulatory Fund. (5) The Rockefeller Wildlife Refuge Trust and Protection Fund. (6) The Marsh Island Operating Fund and the Russell Sage or Marsh Island Refuge Fund. (7) The MC Davis Conservation Fund. (8) The White Lake Property Fund. (9) The Louisiana Education Quality Trust Fund (the 8g Fund). (10) The Coastal Protection and Restoration Fund. (11) The Mineral Revenue Audit and Settlement Fund. (12) The Budget Stabilization Fund. (13) An amount equal to the state general fund deposited into the Transportation Trust Fund and the Louisiana State Transportation Infrastructure Fund. Proposed law deposits into the fund corporate income and franchise tax revenues over $500 million received during the fiscal year. Proposed law authorizes investment of the money in the fund in the same manner as investments of the Millennium Trust as provided for in present law. Proposed law deposits into the state general fund all interest and other income earned on investments of the fund. Proposed law prohibits any appropriations from the fund, with an exception for the following: (1) In any fiscal year in which the balance of the fund at the beginning of the year is in excess of $5 billion, hereinafter the minimum fund balance, the legislature may appropriate an amount not to exceed 5% of the fund balance, hereinafter the allowable percentage, for the same purposes as money designated in the official forecast as nonrecurring pursuant to present constitution. Those uses include: (a) Retiring or decreasing of debt. (b) Payments against the unfunded accrued liability of the public retirement systems. (c) Capital outlay projects in the comprehensive state capital budget. (d) Deposits into the Budget Stabilization Fund. (e) Deposits into the Coastal Protection and Restoration Fund. (f) New highway construction. (2) The legislature may authorize an appropriation from the fund at any time for any purpose subject to consent of 3/4 of the elected members of each house of the legislature Proposed constitutional amendment provides that the minimum fund balance or the allowable percentage may be changed by a law enacted by 3/4 of the elected members of each house of the legislature. Effective if and when the proposed amendment of Article VII of the Constitution of La. contained in the Act which originated as House Bill No. _____ of this 2016 R.S. of the Legislature is adopted at a statewide election and becomes effective.   17   03.18.16     America’s  WETLAND  Foundation   HB 646 and HB 829 by Harris http://www.legis.la.gov/legis/ViewDocument.aspx?d=983625 Abstract: Establishes the Mineral Revenue Stabilization Trust Fund and provides for the dedication of mineral revenues. Proposed law establishes the Mineral Revenue Stabilization Trust Fund as a permanent trust in the state treasury. Provides for the annual deposit of mineral revenues after a deposit of $200 million of mineral revenues into the state general fund. The deposit of mineral revenues into the fund shall exclude the following deposits of mineral revenues required under present constitution and present law, as follows: (1) The Bond Security and Redemption Fund. (2) Severance tax and royalty payments to the political subdivisions of the state. (3) The Louisiana Wildlife and Fisheries Conservation Fund. (4) The Oil and Gas Regulatory Fund. (5) The Rockefeller Wildlife Refuge Trust and Protection Fund. (6) The Marsh Island Operating Fund and the Russell Sage or Marsh Island Refuge Fund. (7) The MC Davis Conservation Fund. (8) The White Lake Property Fund. (9) The Louisiana Education Quality Trust Fund (the "8g Fund"). (10) The Coastal Protection and Restoration Fund. (11) The Mineral Revenue and Audit Settlement Fund. (12) The Budget Stabilization Fund. (13) An amount equal to the state general fund deposited into the Transportation Trust Fund and the Louisiana State Transportation Infrastructure Fund. Proposed law provides that mineral revenues that otherwise would go to the state general fund because the Budget Stabilization has reached its cap shall be deposited into the Mineral Revenue Stabilization Trust Fund. Proposed law provides for the investment of money in the Mineral Stabilization Trust Fund. Appropriations from the trust fund shall only be made from the annual earnings from interest, dividends, and capital gains on investment in the fund for the following: (1) New highway construction. (2) Capital outlay projects.   18   03.18.16     America’s  WETLAND  Foundation   Effective if and when the proposed amendment of Article VII of the Constitution of La. contained in the Act which originated as House Bill No. of this 2016 R.S. of the Legislature is adopted at a statewide election and becomes effective. (Adds R.S. 39:100.111) HB 657 by Schroder http://www.legis.la.gov/legis/ViewDocument.aspx?d=982767 Abstract: Increases the amount of appropriations that can be reduced and transferred to a fund with a projected deficit from 5% to 10% and specifies that the reduction of appropriated fees and self-generated revenues for transfer to a fund with a projected deficit. Present law provides for a procedure for adjusting appropriations if there is a projected deficit in any fund. Present law provides for adjustment to appropriations, and transfer of monies to the fund in a projected deficit, with the approval of the Joint Legislative Committee on the Budget, not to exceed 5%, when state general fund appropriations have been reduced in an aggregate amount of 7/10 of 1%. Present law further authorizes the legislature to make adjustments to appropriations, and transfer monies to the fund in a projected deficit, not to exceed 5% when the official forecast of recurring revenues for the next fiscal year is at least 1% less than the official forecast for the current fiscal year. Proposed law changes the amount that such adjustments cannot exceed from 5% to 10%. Proposed law further specifies that appropriated fees and self-generated revenues may be reduced and transferred in the event of a projected deficit. Effective if and when the proposed amendment of Article VII, Section 10 of the Constitution of La. contained in the Act which originated as House Bill No. _ of this 2016 R.S. of the Legislature is adopted at a statewide election and becomes effective. (R.S. 39:75(C)(2)(b) and (E)(1) and (2))   19