LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: SB 19 SLS 201ES 98
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: June 26, 2020 7:44 AM Author: PEACOCK
Dept./Agy.: Treasury
Subject: Provides for investment authority of certain trusts Analyst: Alan M. Boxberger
FUNDS/FUNDING EN SEE FISC NOTE SD RV See Note Page 1 of 1
Provides for investment authority of the Treasurer for the Millennium Trust, the Rockefeller Wildlife Refuge Trust and
Protection Fund, and the Russell Sage or Marsh Island Trust Fund. (Item #10) (8/1/20)
Present law lists the types of investments in which the treasurer may invest the monies in the Millennium Trust, the La
Education Quality Trust Fund (LEQTF), the Rockefeller Wildlife Refuge Trust and Protection Fund, and the Russell Sage or
Marsh Island Refuge Fund (Russell Sage Fund). Proposed law authorizes monies in the Millennium Trust, the Rockefeller
Wildlife Refuge Trust and Protection Fund, and the Russell Sage Fund to be invested in the same investments permitted for
the LEQTF.
EXPENDITURES 2020-21 2021-22 2022-23 2023-24 2024-25 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other DECREASE DECREASE DECREASE DECREASE DECREASE
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total
REVENUES 2020-21 2021-22 2022-23 2023-24 2024-25 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total
EXPENDITURE EXPLANATION
Proposed law will likely result in a decrease in operating expenditures within the Statutorily Dedicated Millennium Trust, the
Rockefeller Wildlife Refuge Trust and Protection Fund, and the Russell Sage or Marsh Island Trust Fund (Russell Sage Fund).
The Treasury reports that savings can be generated through efficiencies in trading costs by allowing the Investment Division
of Treasury to access through block trading, electronic trading and asset allocation of trading positions at the custodian. The
cost savings would be realized from the amount charged to the trust funds by the treasury for authorized operating costs.
The Treasury estimates the annual savings across all three funds could be as high as $100,000 once fully transferred to
higher yielding investment instruments depending on trading volume.
REVENUE EXPLANATION
Proposed law may result in increased revenues to the Millennium Trust, the Rockefeller Wildlife Refuge Trust and Protection
Fund, and the Russell Sage or Marsh Island Trust Fund (Russell Sage Fund). The treasury reports that proposed law will
largely address fixed income securities and that the agency anticipates incremental increases on interest earnings within the
bond portfolio as it reinvests maturing securities each year in better diversified securities at higher yields. The portfolio will
be transferred to higher yielding securities as existing instruments mature, ranging from months to as much as ten to fifteen
years, so the full impact of the revenue growth will be phased in gradually over time. The treasury also reports that it
anticipates some additional dividend revenues from equity index funds, although in a much lesser amount than fixed income
investments. Revenues produced by investment products will depend on market conditions.
The treasury estimates investment yields on the $3.6 billion corpus of the three referenced trusts could grow by:
0.01% in FY 21, or $360,000 total
0.02% in FY 22, or $720,000 total
0.04% in FY 23, or $1.44 M total
0.06% in FY 24, or $2.16 M total
0.08% in FY 25, or $2.88 M total
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Evan Brasseaux
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Staff Director


Statutes affected:
SB19 Original: 39:2(A), 56:797(C), 56:798(B)(1)
SB19 Engrossed: 39:2(A), 56:797(C), 56:798(B)(1)
SB19 Reengrossed: 39:2(A), 56:797(C), 56:798(B)(1)
SB19 Enrolled: 39:2(A), 56:797(C), 56:798(B)(1)
SB19 Act : 39:2(A), 56:797(C), 56:798(B)(1)