NOTE: §98.5. eff. until July 1, 2026, or the day after the commissioner of administration
and the legislative auditor report to the legislature that the transition is complete, whichever
is earlier. See Acts 2023, No.
446.§98.5. Millennium Leverage Fund
A.Millennium Leverage Fund. Notwithstanding any provision of law to the
contrary, the legislature may provide, by passage of a specific legislative instrument by a
favorable vote of the elected members of each house of the legislature, for the deposit of all
or a portion of monies received by the state 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
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NOTE: §98.5. eff. until July 1, 2026, or the day after the commissioner of administration
and the legislative auditor report to the legislature that the transition is complete, whichever
is earlier. See Acts 2023, No. 446.
§98.5. Millennium Leverage Fund
A. Millennium Leverage Fund. Notwithstanding any provision of law to the
contrary, the legislature may provide, by passage of a specific legislative instrument by a
favorable vote of the elected members of each house of the legislature, for the deposit of all
or a portion of monies received by the state 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; after satisfying the requirements of Article VII, Section 9(B) of the Constitution
of Louisiana, into the Millennium Leverage Fund which is hereby established as a special
permanent trust fund in the state treasury. The Millennium Leverage Fund shall hereinafter
be referred to as the "Leverage Fund".
B. Investment. Monies deposited in the Leverage Fund shall be invested and
administered by the treasurer. Notwithstanding any provision of law to the contrary, a
portion of the monies in the Leverage Fund, not to exceed fifty percent, may be invested in
stock. The legislature shall provide for the procedure for the investment of such monies by
law. The treasurer shall contract, subject to approval of the State Bond Commission, for the
management of such investments. The monies in the Leverage Fund shall be available for
appropriation to pay expenses incurred in the investment and management of monies in the
fund.
C. Revenue Bonds. The State Bond Commission, or its successor, may issue and sell
bonds, notes, or other obligations, hereinafter "bonds" secured by a pledge of a portion of the
monies received by the state as a result of the Settlement Agreement which are otherwise to
be deposited in the Leverage Fund as provided in this Section. Such bonds may be issued
only in amounts authorized by the legislature by two-thirds of the elected members of each
house of the legislature. If settlement revenues are pledged to secure any revenue bonds
issued pursuant to this Section, any portion thereof needed to pay principal, interest, or
premium, if any, and other obligations incident to the issuance, security, prepayment,
defeasance, and payment in respect thereof may be expended by the treasurer without the
need for an appropriation provided that the prepayment or defeasance has been approved by
the legislature. Bonds so issued may also be further secured by a collateralization of all or
a portion of monies in the Leverage Fund. If bonds are issued subject to such a
collateralization, the treasurer may pay from the Leverage Fund any principal, interest, or
premium, if any, and other obligations incident to the issuance, security, prepayment,
defeasance, and payment in respect thereof without the need for an appropriation provided
that the prepayment or defeasance has been approved by the legislature. The net proceeds
of any bonds issued pursuant to this Section shall be deposited in and credited to the
Leverage Fund. Any revenue bonds issued under authority of this Section shall not be
general obligation bonds secured by the full faith and credit of the state.
D. Appropriations. (1) The legislature may annually appropriate the bond proceeds
credited to the Leverage Fund and all earnings, income, and realized capital gains on
investment of monies in the Leverage Fund as recognized as available for appropriation in
the official forecast of the Revenue Estimating Conference. The Revenue Estimating
Conference shall include in its forecast of monies available for appropriation only that
amount of earnings, income, and realized capital gains which are in excess of inflation as
determined by the conference.
(2) Appropriations may be made only for the following purposes:
(a) Twenty-five percent shall be available for appropriation for the purposes as
provided in the TOPS Fund.
(b) Twenty-five percent shall be available for appropriation for the purposes as
provided in the Health Excellence Fund.
(c) Twenty-five percent shall be available for appropriation as provided in the
Education Excellence Fund.
(d) Twenty-five percent shall be available for appropriation as provided in the
Louisiana Fund.
(e) The amounts available for appropriation for each of the purposes contained in
Subparagraphs (a) through (c) of this Paragraph may be increased, and the amount available
for appropriation for the purposes of Subparagraph (d) may be decreased by a specific
legislative instrument which receives a favorable vote of two-thirds of the elected members
of each house of the legislature.
E. Termination. The legislature may, by passage of a specific legislative instrument
by a favorable vote of the elected members of each house of the legislature, provide for the
termination of deposits to the Leverage Fund. Any such termination shall be made in such
a manner so as to not impair the obligation, validity, or security of any bonds issued under
the authority of this Section. Upon termination, the amount of any settlement revenues over
and above the amount pledged for security of any bonds issued pursuant to the authority
granted in this Section, shall be deposited in and credited as provided in Article VII, Sections
10.7 and 10.8 of the Constitution of Louisiana.
NOTE: §98.5. as amended by Acts 2023, No. 446, eff. July 1, 2026, or the day after the
commissioner of administration and the legislative auditor report to the legislature that the
transition is complete, whichever is earlier.
§98.5. Repealed by Acts 2023, No. 345, §3, see Act.