House Bill No. by Representative Bagley proposes a constitutional amendment to modify the distribution of severance tax revenues in Louisiana. The bill seeks to amend Article VII, Section 4(D)(3) of the Louisiana Constitution by changing the effective date for the remittance of one-fifth of the severance tax on natural resources (excluding sulphur, lignite, or timber) to the governing authority of the parish where the severance occurs from July 1, 2007, to July 1, 2027. Additionally, the bill repeals Article VII, Section 4(D)(4), which previously imposed a maximum limit of $850,000 on the amount of severance tax revenues that could be remitted to any parish, along with the requirement for annual adjustments based on the Consumer Price Index.

The proposed amendment aims to eliminate the dollar amount cap on severance tax revenues, allowing parishes to retain a percentage of these revenues without restrictions. This change is intended to provide parishes with a more significant share of severance tax revenues, thereby enhancing their financial resources. The amendment will be submitted to voters for approval during the statewide election scheduled for November 3, 2026, and is set to take effect on July 1, 2027, if passed.