The 2015 Regular Legislative Sessionhas adjourned Sine Die.

Overall, 1,132 bills were filed; 847House Bills and 285 Senate bills.

Four proposed constitutionalamendments, HB360, HB518, HB618 andSB202 will be submitted to voters.

The governor has signed 42 bills intolaw.

A brief description of a few of the billsthat generated public interest during thissession follows.

To search the full listing of all billsand their status, visit our legislative website.

AGRICULTURE* Senate Bill 263, which has been sent tothe governor's desk, provides for therepurchase of farm, industrial, lawn andgarden equipment by wholesalers, foragreements between dealers and agents, fortermination and cancellation of agreementsand for indemnity, liability and relatedmatters.

ALCOHOLIC BEVERAGES* House Bill 233, which has been sent tothe governor, authorizes the holder of aRetailers Class A liquor permit to obtain amicrodistiller permit, establishes themicrodistiller permit of $1,000 and authorizesthe distilling, making, blending, rectifying orprocessing of any alcoholic beverage in thestate.

ANGEL INVESTOR TAX CREDITS* House Bill 244, which has been sent to the governor, extends the sunset of the AngelInvestor Tax Credit Program to July 1, 2017.

BANKS/CHILD SUPPORT* House Bill 357, which has been sent tothe governor, requires disclosure authorizationbe made applicable to persons who co-own afinancial account (identified as belonging toa delinquent obligor for the purpose ofenforcing child support), and provides forpayment of reimbursement fees to financialinstitutions conducting a data match.

BLOOD TYPE/LICENSE* House Bill 37, which has completedthe legislative process, authorizes a blood typedesignation to be exhibited on the back of aperson's driver's license or specialidentification card in black lettering at no cost.

HB37 also lowers the grade minimumfor driver education from ninth to eighth.

Additionally, HB37 allows a person 70years old or older, who is medically diagnosedwith a disability that precludes renewal oftheir Class "D" or "E" driver's license inperson, to renew their license by mail and ifthe person seeking renewal is 70 years old orolder, the proposed law requires a swornaffidavit by a physician certifying such personpossesses all cognitive functions reasonablynecessary to be a prudent driver.

HOUSE NOTESLouisiana House of Representatives

Communications Office2015 Regular Session

Wrap-up, June 12, 2015

CAR THEFT* Senate Bill 250, which has completedthe legislative process, creates a pilot programthat allows some law enforcement officers toscan license plates after a traffic stop to crackdown on uninsured motorists and car thieves.

CEMETERY BOARD* House Bill 592, which has been sent tothe governor, provides for the regulation ofcemetery authorities by the LouisianaCemetery Board, establishes increases inregulatory, application and examination feesand authorizes the board to impose fines.

CLASS E DRIVERS LICENSES* House Bill 499, which has been sent tothe governor, provides for a one-time issuanceof a provisional one-year Class "E" driver'slicense to a person released from incarcerationwith suspended, revoked, or cancelled drivingprivileges.

COLA* House Bill 42, which has completedthe legislative process, authorizes payment ofa permanent benefit increase this year up to amaximum of 1.5% for eligible retirees andbeneficiaries of the four state retirementsystems.

COASTAL PROTECTION* House Concurrent Resolution 1, whichhas been sent to the Secretary of State,approves the 2015-16 annual plan forintegrated coastal protection adopted by theCoastal Protection and Restoration Authority.* Act No. 69 (HB339) provides that theCoastal Protection and Restoration Authoritymay use its own resources for satisfying anymitigation requirements.* Act No. 72 (HB352) changes theapproval authority from the secretary of theDepartment of Natural Resources to the

executive director of the Coastal Protectionand Restoration Authority to purchase land forintegrated coastal protection projects.

CORONERS* House Bill 195, which has been sent tothe governor, clarifies provisions regarding apronouncement of death and provides fornotification, qualifications and appointment ofdeputy coroners and assistant coroners.

CORPORATIONS* House Bill 743, which has been sent tothe governor, makes various changes to theBusiness Corporation Act, including articlesof incorporation, registered agents and serviceof process, judicial determinations relative towithdrawing shareholders, withdrawal rights,exceptions to limitations of liability,definitions and technical corrections.

CRIMINAL JUSTICE* House Resolution 148, which has beensent to the Secretary of State, directs theLouisiana Law Institute to study the issue ofadding assault on a school teacher and batteryof a school teacher to the list of crimes ofviolence.* House Bill 139, which has been sent tothe governor, retains the elements andpenalties of the present law crimes ofaggravated rape, forcible rape, and simple rapeand changes those terms to provide that anyreference to the crime of "aggravated rape" isthe same as a reference to the crime of "firstdegree rape," any reference to the crime of"forcible rape" is the same as a reference tothe crime of "second degree rape," and anyreference to the crime of "simple rape" is thesame as a reference to the crime of "thirddegree rape."* House Bill 343, which has been sent tothe governor's desk, amends the definition of"public possession" to provide that possession

Page -2-

and consumption of an alcoholic beverage ina private residence is not unlawful publicpossession if the person under 21 isaccompanied by a parent, guardian or spousewho is at least 21 years of age.* House Concurrent Resolution 82,which has been sent to the Secretary of State,creates the Louisiana Justice ReinvestmentTask Force to conduct an examination of thestate's sentencing and corrections systems,develop data-driven, research-based policyrecommendations that reduce correctionalpopulations and associated spending, holdoffenders accountable and reinvest savingsinto recidivism strategies.* House Concurrent Resolution 117,which has been sent to the Secretary of State,authorizes the Louisiana Law Institute to studythe issue of restitution in delinquency cases.* House Concurrent Resolution 134,which has been sent to the Secretary of State,creates the Criminal Justice FundingCommission to study the development of afair, efficient and effective administration ofthe criminal justice system.* House Bill 835, which has been sent tothe governor's desk, creates standards andprocedures for the examination and treatmentof victims of a sexually-oriented criminaloffense and the subsequent billing for theservices rendered as a result of the offense.* Senate Concurrent Resolution 16,which has been sent to the Secretary of State,directs the Louisiana Law Institute to establisha working group to study laws relative tomarijuana and make recommendations thatprotect public safety, hold offendersaccountable and control costs.

DEAF CHILD'S BILL OF RIGHTS* Senate Bill 58, which has been sent tothe governor, requires public schools and allpublicly funded early intervention programs toprovide specified services and opportunities to

children who are deaf, hard of hearing ordeaf-blind.

DISABLED ADULT CHILDREN* House Bill 204, which has been sent tothe governor, extends child support tounmarried children who are incapable ofself-support and who require substantial careand personal supervision because of a mentalor physical disability.

EDUCATION* House Bill 152, which has been sent tothe governor, authorizes the managementboards of public higher education to establishfees and modify fee amounts at institutionsunder their respective management andsupervision. HB152 specifically includesauthority to impose per credit fees anddifferential fees for certain programs and tocharge proportional amounts for part-timestudents and summer sessions.* House Bill 245, which has completedthe legislative process, requires that statecontent standards and assessments reflectdirect application to subject matter proficiencyand prohibits such standards and assessmentsfrom including content or questions tomeasure certain non-cognitive skills.

HB245 provides that the prohibitionapply only to students in grades 3-12.* House Bill 373, which has been sent tothe governor, provides for the implementationof state content standards for public schoolstudents subject to legislative approval. Ifapproved by the Legislature, implementationshall begin with the 2017-18 school year.

HB373 provides that the State Boardof Elementary and Secondary Education shallbegin reviewing and developing state contentstandards in English language arts andmathematics no later than July 1, 2015.

HB373 requires the board to hold atleast one public hearing in each Louisiana

Page -3-

congressional district and submit the minutesfrom each meeting to each member of thelegislature within 30 days of the meeting. Theboard shall post the standards on its websiteno later than Feb. 21, 2016, and shall adoptthe standards no later than March 4, 2016.

Additionally, the board shallpromulgate the standards in accordance withthe Administrative Procedure Act prior toimplementation of the standards. The HouseSpeaker and the Senate President each shallappoint one member from his respective houseto serve as a liaison to attend and report themeetings.

Finally, HB373 stipulates that the Actshall take effect and become operative whenthe Act which originated as Senate Bill No. 43of the 2015 Regular Session of the Legislatureis enacted and becomes effective.* House Bill 598, which has gone to thegovernor's desk, establishes the Able AccountAuthority within the Department ofEducation, and provides the authority toadminister the ABLE Account SavingsProgram to finance certain qualified expensesof persons with disabilities.* House Bill 599, reported by substitute House Bill 844, which has been sent to thegovernor, extends the implementation timeline of the early childhood care andeducational network to the beginning of the2016-17 school year.

ENTERPRISE ZONE TAX CREDITS* House Bill 466, which has been sent tothe governor, prohibits eligibility forEnterprise Zone incentives of a business witha North American Industry ClassificationCode of 44, 45, or 72 from receiving benefitsfor projects whose contract is not entered intobefore July 1, 2015, unless an advancenotification for the project was filed prior toJune 10, 2015, and the related claim forbenefits is filed on or after July 1, 2016.

EXPUNGEMENT* House Bill 284, which has been sent tothe governor, amends provisions of lawproviding for expungement.

HB284 provides that no personarrested for a violation of operating a vehiclewhile intoxicated and placed by theprosecuting authority into a pretrial diversionprogram shall be entitled to an expungementuntil 5 years have elapsed since the date ofarrest for the offense.

HB284 provides that if a misdemeanorconviction is the result of an arrest for a sexoffense, the record cannot be expunged andthat a misdemeanor conviction for the crimeof stalking cannot be expunged.

Present law provides that juvenileswho successfully participate in a drug courtprogram are exempt from expungement fees.HB284 retains this provision and amendsprovisions to include participation in drugcourt programs as eligible for a fee exemption.

FILM TAX CREDITS* House Bill 829, which has completedthe legislative process, caps the maximumamount of tax credits for state-certifiedproductions at $180 million.* Senate Bill 102, which has completedthe legislative process, changes the limitationon expenditures for Above the Line servicesthat are eligible for motion picture investorcredits to 40% of total productionexpenditures in the state.* Senate Bill 106, which has completedthe legislative process, provides for recoveryof motion picture investor tax credits issued inviolation of the tax credit law or itsadministrative interpretation and those issuedto an investor convicted of a criminalviolation related to such tax credits.

FINANCIAL INSTITUTIONS* House Bill 316, which has been sent to

Page -4-

the governor, increases the investigation feefor money transmission agents from $300 to$800 and increases the maximum fee limitfrom $3,000 to $6,000. Additionally, HB316 increases theannual renewal fee for money transmittersfrom $300 to $600 and increases themaximum fee limit from $3,000 to $6,000.

The proposed law also eliminates theimposition of the applications for renewal oflicenses to transmit money or sell checks.* House Bill 317, which has been sent tothe governor, increases the initial application,survey and license fee for a license to makeconsumer loans from $500 to $600 andincreases the annual renewal fee from $450 to$500.* House Bill 318, which has been sent tothe governor's desk, reduces the pawnshoplicense fee from $1,000 to $750. HB318causes the fees imposed to be non-refundableby removing the requirement that thecommissioner return to the applicant alllicensing fees upon denial.

The proposed law increases the annualpawnbroker renewal fee from $300 to $450.

FOSTER CARE* House Bill 261, pending the governor'ssignature, adds the training topic called"reasonable and prudent parent standard" tothe foster care training program approved bythe Department of Children and FamilyServices (DCFS) and requires fostercaregivers to use the standard.

HB261 stipulates that a caregiver isnot liable for harm caused to a child whoparticipates in an activity, if the caregiveracted according with reasonable and prudentparent standard.

Finally, HB261 requires DCFS todevelop rules to implement the new law.

FUNDING* House Bill 250, which has completedthe legislative process, authorizes money fromdonations, appropriations or dedications to bedeposited in and credited into the WorkforceTraining Rapid Response Fund and requirespublic higher education institutions todemonstrate a 25% private match beforereceiving these funds.* House Bill 386, which has been sent tothe governor, provides that interest earned onthe investment of monies in the DeepwaterHorizon Economic Damages Collection Fundshall be credited to the fund and requires thatappropriations from the fund be made to theBoard of Regents to be distributed to highereducation.

FUNERAL DIRECTORS/FUNERALESTABLISHMENTS* ACT No. 25 (HB554), defines a"branch establishment" as a licensed funeralestablishment and authorizes a registeredintern, supervised by a state licensedembalmer and funeral director, to performembalming.

GUN LEGISLATION* House Bill 466, which has been sent tothe governor, provides for age-appropriateclassroom instruction on firearm accidentprevention and safety.* Senate Bill 212, which has been sent tothe governor, allows bow hunters to carry anycaliber of firearm while bow hunting.

HONEY* Act No. 45 (HB79) exempts sellers ofhome-produced raw honey from a foodlabeling requirement.

HOSPITAL STABILIZATION* House Concurrent Resolution 75,which has completed the legislative process,

Page -5-

requires the Department of Health andHospitals to levy and collect a hospitalassessment to be used to pay for a portion ofstate costs associated with hospital servicesprovided to the Medicaid population, if thestate expands Medicaid by April 2016.

INSURANCE/HEALTH* House Bill 436, which has been sent tothe governor, was amended to includeprovisions of Senate Bill 163 which requireshealth insurance issuers to reimbursepharmacists for the payment of the fee whenthe pharmacy or pharmacist makes a claim forreimbursement of the fee and provides thatany failure to reimburse a pharmacist or hisagent shall be an act for which the healthinsurance issuer or its agent may besanctioned by the Commissioner of Insurancethrough administrative hearings.

INTERNET TAX* For purposes of sales tax collection,House Bill 555, which has been sent to thegovernor's desk, expands the definition of adealer to include internet sales.

Under the proposed law, any companywith an affiliated agent who sells the same orsimilar products under the same or similarname with a cumulative total of $50,000 insales of tangible personal property in one yearwould be considered dealers. Thesecompanies would be obligated to collect andremit sales tax on behalf of the state and localgovernments, including internet transactionsmailed to the state.

JUDGES* House Bill 76, which has completedthe legislative process, changes thecomposition of Election Section 1 andElection Section 2 for the City Court of BatonRouge, and provides that two judges shall beelected by Election Section 1, two judges shall

be elected by Election Section 2 and one judgeshall be elected from the entire territorial areaof the City of Baton Rouge at large.

LITTER CITATIONS* House Bill 33, which has been sent tothe governor, doubles the amounts of all finesfor intentional littering, simple littering, grosslittering and commercial littering.

Additionally, HB33 distributes theincrease in fines to the retirement system ofthe law enforcement agency that issued thelitter citation.

MEDICAID CLAIMS* Act No. 21 (HB270) provides that theDepartment of Health and Hospitals shall notlimit the period within which a health careprovider may submit a claim for payment fora covered service rendered to a Medicaidprogram enrollee to less than 365 days fromthe date the service was provided. MARIJUANA POSSESSION* House Bill 149, which has been sentto the governor, amends penalties forpossession of marijuana.

For a first conviction for thepossession of 14 grams or less, the offendershall be sentenced to 15 days in a parish jail.For a first conviction of possession of morethan 14 grams, the offender shall be sentencedto a maximum of 6 months.

The prison sentence for a secondconviction is reduced from 5 years to 6months. This changes a second convictionfrom a felony to a misdemeanor.

For a third offense, the maximumprison term is reduced to 2 years.

MORTGAGE LENDERS* House Bill 354, headed to thegovernor for executive approval, increases themortgage lender application license fee from

Page -6-

$400 to $500 and increases the mortgageoriginator application license fee from $100 to$200.

HB354 increases the mortgage lenderannual license renewal fee from $300 to $400and increases the mortgage originator annuallicense renewal fee from $100 to $200.

MOTOR VEHICLE INSPECTIONS* House Bill 593, which has been sent tothe governor, allows the Department. ofPublic Safety and Corrections to develop asystem of electronic filing on inspectioninformation and print-on-demand motorvehicle inspection certificates.

PRESCRIBED MARIJUANA* Senate Bill 143, which has been sent tothe governor's desk, provides for thetherapeutic use of marijuana and provides forthe adoption of rules and regulations relatingto the prescribing, dispensing and producingof marijuana for therapeutic use.

PRIVATIZATION REVIEW* House Bill 137, which has been sent tothe governor, establishes requirements forprivatization contracts and for legislativeoversight and approval. REAL ESTATE* Act No. 24 (HB468) provides forduties related to Realtors and licenseesrepresenting clients and eliminates the optionof the client to waive this duty of the licensee.

REVENGE PORN* House Bill 489, which has been sent tothe governor, creates the crime of non-consensual disclosure of a private image

SOLAR TAX CREDITS* House Bill 779, which has completedthe legislative process, lowers the maximum

sales credit to $10,000 per system. For leasedcredits, FY15 outstanding claims are limitedto $19 million. The leased and purchasedcredits are each capped at $10 million perfiscal year for FY 16 and FY 17 and capped at$5 million during FY 18 for claims filed priorto January 1, 2018.

The bill limits a primary residence toa single credit, electronic filing is mandatoryto claim the solar credit and installer financingis prohibited.

No tax credits will be authorized,issued, or granted for systems installed afterDecember 31, 2017.

SPECIALTY LICENSE PLATES* Two prestige licenses plates arepending House final passage:

Act No. 6 (HB417) creates the"Challenge ALS" special prestige license plateand provides for an annual royalty fee of $30and a handling fee of $3.50 for each plate tooffset administrative costs. Royalty fees willg o t o t h e A L S A s s o c i a t i o nLouisiana-Mississippi Chapter or its successororganization and used solely for ALSresearch.

House Bill 699, which has been sent tothe governor, creates the "300th Anniversaryof the City of New Orleans" specialty licenseplate. The Department of Public Safety andCorrections would collect a $15 annual royaltyfee and a handling fee of $3.50 on each plateto offset administrative costs. Royalty feesgo to the 2018 NOLA Foundation for theplanning and development of a series ofcultural events and activities surrounding the300th anniversary of the City of New Orleans. STEAMSHIP PILOTS* Act No. 18 (HB572) redefines the"board of examiners" to mean the Board ofExaminers for New Orleans and Baton RougeSteamship Pilots for the Mississippi River and

Page -7-

gives the board authority to make pilotrecommendations to the governor to fillvacancies.

TAX EXEMPTIONS/TAX CREDITS* Beginning July 1, 2015, through the60th day after final adjournment of the 2016Regular Session (August 5, 2016), HouseConcurrent Resolution 8 suspends theexemption for business utilities as to the0.97% state sales and use tax levy for sales ofsteam, water, electric power or energy, andnatural gas.* House Bill 119, which has completedthe legislative process, increases the tax leviedon cigarettes from 36 per pack to 50 perpack, thereby increasing the tax to 86 perpack of 20 cigarettes.

Vapor products and electroniccigarettes are defined and subjected to a tax of5 cents per milliliter of nicotine liquid.

Finally, HB119 creates the TobaccoTax Medicaid Match Fund to receive thetobacco tax increases levied by this bill.* House Bill 218, which has completedthe legislative process, eliminates the 3-yearcarry-back option of net operating losses incorporate income taxation, and insteadprovides that the amount of a net operatingloss for any tax year beginning on or after January 1, 2000, may be deducted from netincome in any of the twenty years immediately following the year in which theloss occurred. For all claims for thisdeduction on any return filed on or after July1, 2015, regardless of the taxable year towhich the return relates, no refund shall beallowed.* House Bill 624, which has completedthe legislative process, reduces the amount ofcorporate income tax exclusions anddeductions to 28%.* House Bill 629, which has completedthe legislative process, reduces certain income

and franchise tax credits to 28% beginningwith all forms filed on or after July 1, 2015. * House Bill 635, which has completedthe legislative process, prohibits eligibility ofa business with NAICS Code of 44, 45, or 722from receiving benefits for projects whosecontract is not entered into before July 1,2015, unless an advance notification for theproject was filed prior to July 1, 2015, and therelated claim for benefits is filed on or afterJuly 1, 2016. Additionally HB635 providesthe provisions of HB635 relative to thereduction of the amount of the rebates sunsetson June 30, 2018. * House Bill 805, which has completedthe legislature, provides for the carry forwardrather than the refund of the tax credits for advalorem taxes paid to local government oninventory, natural gas used in storagefacilities, offshore vessels and land-linetelephone companies. HB805 allows 75% ofthe amount of credit in excess of tax liabilitiesto be refunded and allows the 25% balance tobe carried forward. * Senate Bill 93, which has completedthe legislative process, allows the $25 perchild education tax credit only if the tuitionexpense deduction for private school tuition isnot taken.

Additionally, Senate Bill 93 requiresthe Board of Regents to implement theStudent Assessment for a Valuable Education(SAVE) Credit Program for each studentenrolling at a public institution of highereducation. Each student assessed shall begranted a SAVE credit against income, salesand use, gasoline and special fuel taxes equalto the individual amount of a SAVEassessment. The amount of each credit mustnot exceed the average household tax liabilityin Louisiana for the total of such taxes asdetermined and published by the Departmentof Revenue no later than June 30 of eachfiscal year.

Page -8-

The SAVE credit is a transferable,non-refundable credit against the tax liabilityset forth above of a student, or his parent orlegal guardian, which must be transferred tothe board and used solely for each studentenrolled in a public institution of highereducation on and after July 1, 2015.

By June 30 of each fiscal year, theboard must certify to the department the totalheadcount enrollment at public institutions ofhigher education from the previous fall. Thedepartment then must determine the totalamount of the credit and transfer from thecurrent collections of taxes that amount to thetreasurer. Upon receipt of the funds, thetreasurer is directed to transfer or deposit thefunds into the Higher Education InitiativesFund.

The Board of Regents is required todistribute all funds appropriated from theHigher Education Initiatives Fund derivedfrom the SAVE Credit program to publicinstitutions of higher education.

TOPS* House Bill 462 , which has been sentto the governor, makes changes to the TOPScurriculum and the Early Start AssessmentTest.

HB462 changes the social studiescurriculum requirements to include Civicsamong the specified course choices andremoves Economics, AP Macroeconomics, orAP Microeconomics as possible choices.

The proposed law also changes thecurriculum requirements for studentsgraduating from high school in 2017-18 andthereafter to align the curriculum in all areasto receive a career diploma.

Finally, HB462 adds that a studentmay be eligible for a TOPS-Tech Early StartAward if he attains at least 15 on the Englishsection and 15 on the mathematics section ofthe ACT or equivalent on the SAT or attains

a silver level score on the assessments of theACT WorkKeys system.* Senate Bill 48, which has been sent tothe governor's desk, eliminates automaticincreases in TOPS awards when tuition goesup and caps TOPS awards per student to theamount awarded in Fiscal Year 2016.

SB48 authorizes the legislature toincrease TOPS award amounts in any year.

SB48 also requires that the minimumACT score to receive a TOPS academic awardshall be expressed in whole numberincrements instead of rounded to the wholenumber.

TRADEMARKS AND TRADE NAMES* House Bill 394, which has been sent tothe governor, authorizes persons to specifynames of partnerships and nonprofitcorporations by filing a signed applicationwith the Secretary of State who is required toreserve specified names available for use fora nonrenewable period of 120 days. HB394also provides the right to transfer specified,reserved names to a transferee through asigned application with the Secretary of State.

HB394 repeals provisions for names ofcorporations generally, foreign corporations,and limited liability companies. HB394 alsorepeals the extension and reservation periodsof present law, as well as antiquated languageallowing the Secretary of State to collect a $5fee to reserve a trade name, trademark orservice mark

TRANSPORTATION* House Bill 208, which has been sent tothe governor, appropriates from theTransportation Trust Fund to the Office ofState Police: $40 million for FY2015-16, $25 million for FY2016-17, and$10 million in each fiscal year thereafter.* House Bill 445, which has completed

Page -9-

the legislative process, increases the feescharged by the Department of Public Safetyand Corrections, Office of Motor Vehicles, foreach certificate of title from $18.50 to $68.50and for each salvage title, from $18.50 to$68.50.* House Bill 618, a proposedconstitutional amendment to authorize publicfunds to capitalize a state infrastructure bank,has completed the legislative process and willbe submitted to voters at the statewideelection to be held on October 24, 2015.* House Bill 767, which has been sent tothe governor, creates the Louisiana StateTransportation Infrastructure Bank andprovides for the transfer of proceeds ofTransportation Mobility Fund to the bank andwould allow low-interest loans to parishes andmunicipalities to help pay for transportationprojects.* House Bill 742, which has been sent tothe governor, makes revisions to the factorsand process that the Department ofTransportation and Development uses toprioritize projects to be included in theHighway Priority Program.* Senate Bill 202, a proposedconstitutional amendment which hascompleted the legislative process, renames theBudget Stabilization Fund to the Budget andTransportation Stabilization Trust andestablishes the Budget Stabilization Subfund.

Beginning in Fiscal Year 2016, excessmineral revenue is to be deposited to theBudget Stabilization Subfund up to $500million. Once that occurs, at the beginning ofthe next fiscal year, the excess mineralrevenue is to deposited into the TransportationStabilization Subfund until that balance equals$500 million. The balance in each of thesubfunds is to be maintained at $500 million. After that, excess mineral revenue is tobe deposited into the state general fund. Themoney in the Transportation Stabilization

Subfund shall be used exclusively forplanning, design, construction andmaintenance connected with the state highwaypriority program, with at least 20% fundingfor the Intermodal Connector Program (ports).* Senate Bill 259, which has been sentto the governor, creates the Budget andTransportation Stabilization Trust andprovides for the use of monies in the Trust.

UNDERGROUND STORAGE TANKS* Senate Bill 244, which has been sent tothe governor, increases the available moniesexpended from the Motor Fuel UndergroundStorage Tank Trust Fund from $1 million to$1.5 million per accidental spill for therehabilitation and remediation of soil,groundwater and surface water at motor fuelcontaminated underground storage tank sites.

UTILITY TERRAIN VEHICLES* House Bill 581, which has been sent tothe governor, authorizes the use of utilityterrain vehicles (UTV) and provides for theiroperation, safety features and registration.

VETERANS* Under present law, a "qualifyingdisability" is defined to mean 100%permanent total disability rating or permanentand total unemployability disability rating asdetermined by the U.S. Dept. of VeteransAffairs and certified by the secretary for theLa. Dept. of Veterans Affairs in a finaladjudication of the initial rating decision.

Act No. 77 (HB425) adds a prohibitionthat the initial rating decision cannot apply toa federal rating decision predating service inthe La. National Guard.* House Bill 485, which has been sent tothe governor, allows colleges and universitiesto apply to the Board of Regents to bedesignated a Governors Military andVeteran Friendly Campus.

Page -10-

VETO SESSION* House Resolution 183, which hascompleted the legislative process, expressesthe intention and support of the House to meetin veto session if the governor vetoes anyappropriation or funding the legislature hasprovided for healthcare and higher education.

FAILED TO PASS* HB10 would have authorized amember of the Teachers' Retirement Systemof Louisiana to purchase credit for service asa teacher at an out-of-state nonpublic school.* HB66 would have provided for settingtuition and fees at public postsecondaryeducation institutions.* HB70 would have doubled the amountof the earned income tax credit.* HB165 would have increased theassessment from $25 to $50 that the LouisianaState Board of Medical Examiners collectsannually for the treatment of healthcareproviders.* HB166 would have provided for thereturn of schools from the Recovery SchoolDistrict to the local school system.* HB168 would have provided fortuition and fees for postbaccalaureateprograms at public colleges and universities.* HB315 would have increased fees forcheck-cashers.* HB359 would have required sexeducation instruction in Orleans Parish.* HB418 would have banned thepractice of collecting teacher and publicemployee union dues through automaticpayroll deductions. * HB711 would have provided for feesrelative to the Louisiana Cosmetology Act.* HB758 would have provided for theappropriation of tax expenditures in theGeneral Appropriation Bill and the executivebudget.* HB786 would have increased fees

relative to the Public Service Commission.

Page -11-