Senate Bill No. [insert bill number] proposes the creation of the "Oil and Gas Severance Subfund" within the existing Parish Transportation Fund, effective July 1, 2026. The bill amends R.S. 48:751 and introduces new sections R.S. 48:752.1, 753.1, and 756.1. The subfund will consist of at least five percent of the total avails from state severance taxes on oil and gas, as well as any additional funds appropriated by the legislature. The purpose of the subfund is to restore and maintain public roads and bridges that support operations related to the oil and gas industry.

Additionally, the bill stipulates that funds from the Oil and Gas Severance Subfund cannot be used by any parish to secure or provide for bond issuances. The distribution of the subfund's monies will occur on a pro-rata basis to the parishes, adhering to the limitations set forth in Article VII, Section 4(D)(3) of the Louisiana Constitution. This legislative measure aims to ensure that the financial resources generated from the oil and gas sector are effectively utilized for infrastructure improvements in the parishes involved.

Statutes affected:
SB187 Original: