§ 39:97 — Mineral Revenue Audit and Settlement Fund

Louisiana § 39:97

• Jurisdiction: Louisiana
• Title 39: Procurement and Contract

Text

§97. Mineral Revenue Audit and Settlement Fund
A.(1) 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:
(a) To the Bond Security and Redemption Fund as provided in Article VII, Section
9(B) of the Constitution of Louisiana.
(b) To the political subdivisions of the state as provided in Article VII, Sections 4(D)
and (E) of the Constitution of Louisiana.
(c) As provided by the requirements of Article VII, Sections 10-A, 10.1, 10.2, and
10.3 of the Constitution of Louisiana.
(2) For purposes of this Section, a settlement or judgment concerning royalty
payments shall be defined as including those issues and amounts raised by the state in audit
exception billings to payors of royalties or lessees, resulting from audits on particular
properties and production. Issues and amounts included in said audit exception and billings
may not, for purposes of this Section, be arbitrarily separated or divided into two or more
settlements or judgments.
B. After making the allocations provided for in Subsection A of this Section, 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 Wetlands
Conservation and Restoration Fund as provided in Article VII, Section 10.2 of the
Constitution of Louisiana. 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 the Constitution of Louisiana. 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 Subsection A of this Section, the
treasurer shall credit thirty-five million dollars to the Wetlands Conservation 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 annual amortization of the unfunded accrued liability of the public retirement systems,
required by Article X, Section 29 of the Constitution of Louisiana; and for deposit in the
Wetlands Conservation and Restoration Fund.

Legislative History

Acts 1993, No. 350, §1, eff. June 3, 1993; Acts 1997, No. 1149, §2, eff. June 1, 1997; Acts 2003, No. 560, §2, eff. June 27, 2003; Acts 2003, No. 1195, §1, eff. July 1, 2004, and §4, eff. July 3, 2003; Acts 2015, No. 465, §1, special eff. date.