§308.5. Legislative review and recommendation on special funds and dedication of money

            A. The legislature hereby finds that due to the number of special funds in the state treasury that dedicate state revenue, it is difficult for the governor, the legislature, and the public to assess the benefit of the activities supported by such funds. In order to address this situation, the legislature finds that a system of transparency and accountability needs to be established and that the authority for such funds should be routinely reviewed. Unless the recommendations resulting from the review conclude that the benefit of the activities funded by monies deposited in such fund warrants the continuation of this method of funding, the legislature should take such action as is necessary to eliminate such special funds and the dedication of state revenues to such activities. Further, inducing competition for funding from the state general fund will put all activities on an equal footing and will allow the governor and the legislature to better prioritize funding.

            B.(1) No later than August 1, 2020, the division of administration shall submit to the Joint Legislative Committee on the Budget a plan to review all special funds and dedications that contain fees and self-generated revenues of the special dedicated funds in law as of the date of the submission. The Joint Legislative Committee on the Budget shall refer the plan to the Dedicated Fund Review Subcommittee of the Joint Legislative Committee on the Budget, hereinafter referred to as "the subcommittee". The subcommittee shall meet to review and to make recommendations, as provided in this Section, on each dedicated fund that contains fees and self-generated revenues prior to the thirtieth calendar day prior to the start of the 2021 Regular Session of the Legislature.

            (2) On or before August 1, 2021, and on or before August first of the first year of every term of the legislature, the division of administration shall submit a list of all dedicated funds and statutorily dedicated fund accounts in law as of the date of the submission of the list, to the Joint Legislative Committee on the Budget. The Joint Legislative Committee on the Budget may review and amend the list prior to submission to the subcommittee. The list shall be referred to the subcommittee which shall develop a plan to review each item on the list. The subcommittee shall ensure that each item is reviewed at least once every four years.

            C.(1) The subcommittee, acting on behalf of the Joint Legislative Committee on the Budget, shall notify the commissioner of administration and the treasurer of the date each fund is scheduled for review. The commissioner of administration shall notify any agency or entity receiving an appropriation from a special fund, dedication, or statutorily dedicated fund specified in the schedule of the date the fund is scheduled for review.

            (2)(a) No later than thirty days after the approval of the plan, the treasurer shall submit to the subcommittee a summary of the terms, sources, conditions, and uses of the special fund as required by law and a five-year history of the following:

            (i) Sources and amounts of revenue into the fund.

            (ii) Amounts appropriated or allocated from the fund and the recipients of each appropriation or allocation.

            (iii) Investments and earnings of the fund.

            (iv) Annual balance in the fund.

            (b) The treasurer or his staff shall be in attendance and available to provide information at any hearing that the subcommittee holds on any special fund.

            (3)(a) The head of each agency or entity receiving an appropriation or allocation from a special dedicated fund, dedication, or statutorily dedicated fund account scheduled for review that fiscal year shall submit to the subcommittee the following:

            (i) Five-year history of the amount of the appropriation or allocation of the fund to the agency or entity.

            (ii) Detailed use of the fund in each of the previous five years in which the agency or entity received an appropriation or dedication from the fund, including the total amount of funding for each activity financed with the fund and the amount of financing for the activity from the fund.

            (iii) Outcomes or other relevant performance information for any activity receiving financing from the fund.

            (iv) If dedication is a fee, the cost of providing the service offset by the fee.

            (b) The head of the agency or entity, or his staff, shall be in attendance and available to provide information at any hearing on a special fund received by their agency or entity.

            (4) The subcommittee shall allow public comment on each special fund included in the plan.

            (5) The subcommittee may request any other information which the subcommittee believes is necessary in conducting the review of the special funds.

            D.(1) Following the review of each special fund as required in this Section, members of the subcommittee shall offer motions as are necessary to produce a report of findings and recommendations on each item reviewed by the subcommittee. Such findings and recommendations may include but are not limited to no change to the fund, a change to the fund's revenue source, a change in the amount dedicated to the fund, a change in the use of the fund, or elimination of the fund.

            (2) No later than thirty days prior to the beginning of the regular session of the legislature, the subcommittee shall report the findings and recommendations to the Joint Legislative Committee on the Budget for review. The Joint Legislative Committee on the Budget may recommend modifications to the report submitted by the subcommittee, however, such modifications shall be noted in the report along with any original findings or recommendations of the subcommittee.

            E. The Joint Legislative Committee on the Budget shall report the findings and recommendations of each review to the presiding officer of each house of the legislature for electronic distribution to each member of the legislature, the governor, the treasurer, and the commissioner of administration.

            F. This Section shall not apply to or affect the laws which dedicate or otherwise provide for the use of the following money or the laws which provide for the following special funds in the state treasury:

            (1) Special funds or dedications of money received by the state or by any state board, agency, or commission which is protected by the Constitution of Louisiana and laws effectuating such special funds and dedications or special funds containing money which is not required by the constitution to be deposited in the state treasury pursuant to Article VII, Section 9(A) of the Constitution of Louisiana.

            (2) Special funds in the state treasury established solely as a requirement of the terms, conditions, or requirements of:

            (a) Grants, donations, or other forms of assistance.

            (b) Court or regulatory agency orders or judgments.

            (c) Contracts of the state or of its agencies, boards, or commissions, including contracts related to the issuance of bonds, notes, and other indebtedness.

            (3) Special funds and dedications of money provided by law for money received by or on behalf of a state board, agency, authority, or commission which is mainly composed of and represents members of a trade, business, or professional association from fees or assessments paid by the members of the trade, business, or professional association and which expends the money on market or product research and development.

            (4) Special funds and dedications of money provided by law related to the judiciary.

            (5) Special funds and dedications of money provided by law related to retirement funds.

            Acts 2009, No. 492, §1, eff. July 1, 2009; Acts 2017, No. 355, §2, eff. June 22, 2017; Acts 2018, No. 612, §16, eff. July 1, 2020; Acts 2019, No. 404, §§1, 11, 16, and 20, see Act for special effective date; Acts 2020, No. 119, §1, eff. July 1, 2020.

NOTE: See Acts 2019, No. 404, §§16 and 20, regarding the repeal of certain changes made to R.S. 49:308.5(B)(3) and (4) in Acts 2018, No. 612.

NOTE: See Acts 2018, No. 612 and Acts 2019, No. 404 providing for the effects of the conversion of certain dedicated funds to special statutorily dedicated fund accounts.