§ 49:330 — Mineral Income Advisory Committee; mineral revenue contracts by state treasurer

§330. Mineral Income Advisory Committee; mineral revenue contracts by state treasurer
A.(1) The Mineral Income Advisory Committee is hereby created. The committee
shall be composed of the following members:
(a) The chairman of the House Committee on Appropriations, or his designee.
(b) The chairman of the Senate Finance Committee, or his designee.
(c) The chairman of the House Committee on Ways and Means, or his designee.
(d) The chairman of the Senate Revenue and Fiscal Affairs Committee, or his
designee.
(e) The chief economist of the Legislative Fiscal Office.
(2) The chairman of the House Committee on Appropriations, or his designee, shall
serve as chair of the committee for the first two years and then the chairman of the Senate
Committee on Finance, or his designee, shall serve as chairman for the next two years.
Subsequently, the chairmanship shall rotate between the House and Senate committees every
two years.
(3) The committee shall meet at least once annually, upon the call of the chair, no
later than the first day of March.
(4) The secretary of the Department of Conservation and Energy, the secretary of the
Department of Revenue, the commissioner of administration, and the state treasurer shall be
available to the committee for the research relative to mineral revenue contracts as provided
for in this Section.
(5) No later than the first of May each year, the committee shall report any findings
and recommendations to the Revenue Estimating Committee, which shall consider any
recommendations at their first meeting following receipt of such report.
B. The state treasurer, on behalf of the state, shall contract with respect to contracts
commonly known as commodity or other swap agreements, forward payment conversion
agreements, futures, or contracts providing for payments based on levels of or changes in
commodity prices, contracts to exchange cash flows or a series of payments or contracts,
including without limitation options, puts, or calls to hedge payment, rate, spread, or similar
exposure and other devices in order to establish a firm price for all or part of the anticipated
mineral production subject to state severance tax and royalty contract, subject to, and in
accordance with, the following limitations, restrictions, and procedure:
(1) Such action has been recommended by the Revenue Estimating Conference to
the Joint Legislative Committee on the Budget.
(2) The recommendation of the Revenue Estimating Conference has been reviewed
by the Joint Legislative Committee on the Budget and the committee has recommended the
state treasurer enter into such contracts based on criteria established by the committee which
may direct that a portion of any revenue gain associated with a contract be set aside or used
to purchase risk protection to cover any risk associated with the contract.
(3) All swap agreements, forward conversion agreements, future contracts, or other
contracts authorized in this Section have been selected by the state treasurer through a
request for proposal or bid process and any swap bank selected is at least "AA" rated
according to industry standards or rated according to other standards adopted by the Mineral
Income Advisory Committee.
(4) The proposed contract has been submitted for review and comment to the
attorney general who for the purposes of this Section shall be considered and shall act as
legal counsel for the Joint Legislative Committee on the Budget.
C. The Joint Legislative Committee on the Budget may require that appropriate
insurance is purchased to ensure performance of the contract.
D. In no event shall any contract authorized pursuant to this Section be for a period
longer than one year, whether calendar or fiscal.

Legislative History

Acts 1999, No. 817, §1; Acts 2010, No. 948, §1; Acts 2023, No. 150, §20, eff. Jan. 10, 2024.