§98.4. Louisiana Fund
A.There shall be established in the state treasury as a special fund the Louisiana
Fund, hereinafter the "Fund". After allocation of money to the Bond Security and
Redemption Fund as provided in Article VII, Section 9(B) of the Constitution of Louisiana,
the treasurer shall deposit in and credit to the Fund all money remaining after deposit of
monies into the Millennium Trust, which is received as a result of the Master Settlement
Agreement, hereinafter the "Settlement Agreement", executed November 23, 1998, and
approved by Consent Decree and Final Judgment entered in the case "Richard P. Ieyoub,
Attorney General, ex rel. State of Louisiana v. Philip Morris, Incorporated, et al.", bearing
Number 98-6473 on the docket of the Fourteenth Judicial District for the parish
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§98.4. Louisiana Fund
A. There shall be established in the state treasury as a special fund the Louisiana
Fund, hereinafter the "Fund". After allocation of money to the Bond Security and
Redemption Fund as provided in Article VII, Section 9(B) of the Constitution of Louisiana,
the treasurer shall deposit in and credit to the Fund all money remaining after deposit of
monies into the Millennium Trust, which is received as a result of the Master Settlement
Agreement, hereinafter the "Settlement Agreement", executed November 23, 1998, and
approved by Consent Decree and Final Judgment entered in the case "Richard P. Ieyoub,
Attorney General, ex rel. State of Louisiana v. Philip Morris, Incorporated, et al.", bearing
Number 98-6473 on the docket of the Fourteenth Judicial District for the parish of Calcasieu,
state of Louisiana; and all interest income on investment of monies in the Fund. Monies in
the Fund shall be invested by the treasurer in the same manner as monies in the state general
fund. All unencumbered and unexpended monies in the Fund shall remain in the Fund.
B. Appropriations from the Fund shall be restricted to the following purposes
provided in this Subsection, and no annual appropriation for any one of the purposes
enumerated in Paragraphs (1) through (4) of this Subsection may exceed fifty percent of the
total amount of monies appropriated from the Fund in any fiscal year:
(1) Initiatives to ensure the optimal development of Louisiana's children through
enhancement of educational opportunities and provision of appropriate health care through:
(a) Prekindergarten educational programs by city and parish school boards to provide
quality early care and education facilitating the healthy development and school readiness
of at-risk four-year-old children.
(b) The Children's Health Insurance Program established by R.S. 46:976.
(c) Services provided by school-based health clinics, rural health clinics, and primary
care clinics.
(d) Early childhood intervention programs targeting children from birth through age
four, including programs to reduce infant mortality.
(e) Assistance to schools and school districts which are found to be in need of
corrective action under the State School and District Accountability System.
(2) Provision of direct health care services for tobacco-related illnesses.
Notwithstanding any other provision of this Subsection to the contrary, appropriations for
this purpose shall be limited as follows:
(a) For Fiscal Year 2001-2002, the appropriation may not exceed thirty percent of
the total amount of monies appropriated from the Fund in that fiscal year.
(b) For Fiscal Year 2002-2003, and for all fiscal years thereafter, the appropriation
may not exceed twenty percent of the total amount of monies appropriated from the Fund in
that fiscal year.
(3) Initiatives to benefit the citizens of Louisiana with respect to health care through:
(a) A program of research grants and projects that encourage the pursuit of innovation
in advanced health care sciences; such program shall support clinical and laboratory research
efforts based in Louisiana universities and shall fund grants for both basic and applied
research in advanced health care sciences; such program shall encourage institutional
commitment and leveraging of state monies to secure private and federal funds and shall be
administered by the Board of Regents through an objective, competitive process subject to
peer review. The Board of Regents shall annually submit to the legislature and the governor,
not less than forty-five days prior to the beginning of each regular session of the legislature,
a proposed program and budget for the expenditure of the funds appropriated to the Board
of Regents for these purposes.
(b) Provision of comprehensive chronic disease management services, including
outpatient pharmacy for indigent and needy citizens of Louisiana, by the facilities of the
Louisiana State University Health Sciences Center, included but not limited to the health care
services division.
(c) Expenditures for capital outlay and other capital improvements for state health
care facilities, which shall include the facilities of the Louisiana State University Health
Sciences Center, war veterans homes, and parish health units.
(4) Initiatives to diminish tobacco-related injury and death to Louisiana's citizens
through:
(a) Programs developed by the Louisiana Department of Health, based upon the
Model Tobacco Control Plan issued by the national Centers for Disease Control, as follows:
(i) Educational efforts delivered through elementary and secondary schools to be
administered by the Department of Education.
(ii) Cessation assistance services to be administered by the Louisiana Department
of Health.
(iii) Promotion of a tobacco-free lifestyle through counter-marketing activities which
shall include advertising related to tobacco usage, to be administered by the Louisiana
Department of Health.
(b) Enforcement of the requirements of the Master Settlement by the attorney
general.
C.(1) The annual budget request of any state agency or other state entity which
includes support from the Fund for a purpose as provided herein shall include performance
expectations pursuant to the Louisiana Government Performance and Accountability Act.
(2) The governor shall present his plan of expenditures for the next fiscal year from
monies available for appropriation from the Fund at the same time he submits his executive
budget recommendations to the Joint Legislative Committee on the Budget. The plan shall
provide for the distribution of available monies among the authorized purposes for
expenditures of monies from the Fund.
D. Appropriations from the Fund, except as provided under R.S. 39:112, shall be
consistent with the provisions of the Louisiana Government Performance and Accountability
Act, and shall contain goals and objectives and projected measures of performance in order
to ensure accountability in expenditure of such funds. Any nonstate entity receiving support
from the Fund shall present a report of its accomplishments associated with the funds
received to the Joint Legislative Committee on the Budget no later than March first of the
fiscal year in which the monies were appropriated.
E. Expenditures for administrative costs from appropriations from the Fund for the
purposes enumerated in Paragraphs (1) through (4)(a) of Subsection B of this Section shall
be limited to no more than five percent of the total amount appropriated annually for each
entity receiving an appropriation. In the event that full justification is submitted that
implementation of a program or initiative necessitates administrative costs in excess of five
percent of the total appropriation, the Joint Legislative Committee on the Budget, upon
request of the commissioner of administration, may authorize the payment of such additional
administrative costs.
F. Any proposal by the governor for expenditure of monies from the Fund shall be
itemized separately within the executive budget and shall include a description of the
proposed uses and programmatic impacts of such expenditures.