The bill, introduced by Representative Emerson, seeks to amend the management and allocation of state revenues by repealing the Revenue Stabilization Trust Fund and redirecting certain revenues to the Budget Stabilization Fund. Key changes include the establishment of a Budget Stabilization Fund that will receive all money available for appropriation from the state general fund and dedicated funds exceeding the expenditure limit. The bill also introduces provisions for the transfer and deposit of funds into the Budget Stabilization Fund, while repealing previous allocations related to the Revenue Stabilization Trust Fund. Notably, it modifies the conditions for appropriating funds from the Budget Stabilization Fund, ensuring that no deposits will exceed seven and one-half percent of total state revenue receipts from the previous fiscal year.

Additionally, the legislation repeals specific provisions related to the Revenue Stabilization Trust Fund, including criteria for appropriations and the handling of mineral revenues. It increases the cap on the Budget Stabilization Fund to 7.5% of total state revenue receipts from the previous fiscal year and mandates that unexpended and unencumbered funds at the end of the fiscal year remain in the fund. The bill also allows for one-time payments to parishes that exempt business inventory from ad valorem tax and enables legislative appropriations based on projected corporate income tax collections. These changes will take effect on January 1, 2027, contingent upon the adoption of proposed amendments to the Louisiana Constitution.

Statutes affected:
HB683 Original: 39:94(A), 39:97(B), 39:116(A), 39:94(C)(5), 39:116(A)(12)
HB683 Engrossed: 39:94(A), 39:97(B), 39:116(A), 39:94(C)(5), 39:116(A)(12)