LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: SB 32 SLS 202ES 21
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: October 22, 2020 4:06 PM Author: FIELDS
Dept./Agy.: Higher Education
Subject: Operational Autonomies Analyst: Jodi Mauroner
COLLEGES/UNIVERSITIES EN SEE FISC NOTE SG EX See Note Page 1 of 1
Grants certain operational autonomies to certain public postsecondary education institutions (gov sig) (Item #42)
Proposed legislation extends operational autonomies previously granted to some institutions under the authority of the GRAD
act to all institutions, as approved by the Division of Administration, pursuant to audit compliance including 1) authority to
retain unexpended, unobligated funds; 2) authority to dispose of certain obsolete equipment; 3) authority to be excluded
from the table of organization; 4) authority to participate in the procurement code previously approved for LSU, subject to
prior review and approval by JLCB; 5) exemption from the state’s risk management program pursuant to certification by
DOA of operational capacity; 6) authority to administer certain facility projects; and 7) investment authority in certain
bonds. Requires annual reporting to the Joint Legislative Committee on the Budget on the amount of unexpended, obligated
funds retained by institutions.
Effective upon governor's signature.
EXPENDITURES 2020-21 2021-22 2022-23 2023-24 2024-25 5 -YEAR TOTAL
State Gen. Fd. SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Agy. Self-Gen. SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Ded./Other $0 $0 $0 $0 $0 $0
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. SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total
EXPENDITURE EXPLANATION
There may be an impact to expenditures of institutions associated with certain operational autonomies, to the extent they
are approved by Joint Legislative Committee on the Budget (JLCB) and/or the Division of Administration (DOA). Currently,
institutions have been granted certain autonomies which expired on July 1, 2020. It is not possible to project which
institutions may request additional autonomies and whether such requests will be approved by the JLCB and/or the DOA.
Expenditures could increase (as in the case of establishing a self-insured insurance program) or decrease (as in the case of
procurement autonomies.)
There will be an impact to the expenditures of Office of Risk Management (ORM) and state agencies participating in the
state’s risk management program to the extent institutions are exempted. As part of the approval process, ORM would incur
costs associated with actuarial valuations. Further, in order to maintain an actuarially sound program, premium rates for
remaining ORM participants could increase. It is not possible to project the potential number of institutions exempted and
the amount of ORM expenses, or the extent to which ORM would be required to increase premiums.
REVENUE EXPLANATION
There may be a reduction in IAT revenues to the Office of Risk Management (ORM) to the extent institutions are granted the
authority to establish their own self-insurance program and no longer make payments to ORM. It is not possible to project
the potential number of institutions which may be exempted and the extent of the revenue loss.
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}
13.5.2 >= $500,000 Annual Tax or Fee Alan M. Boxberger
6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Staff Director