Louisiana Constitution Art. 7 Sec. 10.5 – Mineral Revenue Audit and Settlement Fund
Terms Used In Louisiana Constitution Art. 7 Sec. 10.5
- Amortization: Paying off a loan by regular installments.
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
Section 10.5.(A) There shall be established in the state treasury the Mineral Revenue Audit and Settlement Fund, hereinafter referred to as the “fund”. Of revenues received in each fiscal year by the state through settlements or judgments which equal, in both principal and interest, five million dollars or more for each such settlement or judgment, resulting from underpayment to the state of severance taxes, royalty payments, bonus payments, or rentals, the treasurer shall make the following allocations as required:
(1) To the Bond Security and Redemption Fund as provided in Article VII, Section 9(B) of this constitution.
(2) To the political subdivisions of the state as provided in Article VII, Section 4(D) and (E) of this constitution.
(3) As provided by the requirements of Article VII, Sections 10-A, 10.1, 10.2, and 10.3 of this constitution.
(B) After making the allocations provided for in Paragraph (A), the treasurer shall then deposit in and credit to the Mineral Revenue Audit and Settlement Fund any such remaining revenues. Any revenues deposited in and credited to the fund shall be considered mineral revenues from severance taxes, royalty payments, bonus payments, or rentals for purposes of determining deposits and credits to be made in and to the Coastal Protection and Restoration Fund as provided in Article VII, Section 10.2 of this constitution. Any revenues deposited in and credited to the fund shall not be considered mineral revenues for purposes of the Budget Stabilization Fund as provided in Article VII, Section 10.3 of this constitution. Money in the fund shall be invested as provided by law. The earnings realized in each fiscal year on the investment of monies in the Mineral Revenue Audit and Settlement Fund shall be deposited in and credited to the Mineral Revenue Audit and Settlement Fund.
(C) After making the allocations provided for in Paragraph (A), the treasurer shall credit thirty-five million dollars to the Coastal Protection and Restoration Fund, and thereafter any monies credited to the fund in any fiscal year may be annually appropriated by the legislature only for the purposes of retirement in advance of maturity through redemption, purchase, or repayment of debt of the state, pursuant to a plan proposed by the State Bond Commission to maximize the savings to the state; for payments against the unfunded accrued liability of the public retirement systems which are in addition to any payments required for the annual amortization of the unfunded accrued liability of the public retirement systems, required by Article X, § 29 of this Constitution; however, any such payment to the public retirement systems shall not be used, directly or indirectly, to fund cost-of-living increases for such systems; and for deposit in the Coastal Protection and Restoration Fund.
Added by Acts 1991, No. 1070, §1, approved Oct. 19, 1991, eff. Jan. 1, 1992. Amended by Acts 1995, No. 1325, §1, approved Oct. 21, 1995, eff. Nov. 23, 1995; Acts 2003, No. 1302, §2, approved Oct. 4, 2003, eff. Nov. 6, 2003; Acts 2003, No. 1307, §1, approved Oct. 4, 2003, eff. Nov. 6, 2003; Acts 2005, 1st Ex. Sess., No. 69, §1, approved Sept. 30, 2006, eff. Oct. 31, 2006.