§27. Transportation Trust Fund

            Section 27.(A) Creation of fund. Effective January 1, 1990, there shall be established in the state treasury as a special permanent trust fund the Transportation Trust Fund (“the trust fund”) in which shall be deposited the “excess revenues” as defined herein which are a portion of the avails received in each year from all taxes levied on gasoline and motor fuels and on special fuels (said avails being referred to as the “revenues”) as provided herein. After satisfying pledges respecting that portion of the revenues attributable to the tax rates in effect at the time of such pledges for the payment of obligations for bonds or other evidences of indebtedness on the effective date of this Section, the treasurer shall allocate such portion of the revenues received in each year as necessary to pay all principal, interest, premium, if any, and other obligations incident to the issuance, security, and payment in respect of bonds as authorized in Paragraph (C) hereof. Thereafter, the portion of the revenues remaining shall be deposited in the Bond Security and Redemption Fund in the state treasury. After (1) the payment of any obligations for bonds or other evidences of indebtedness in existence on the effective date of this Section which are secured by revenues; (2) payments in respect of bonds authorized in Paragraph (C) hereof; and (3) credit to the Bond Security and Redemption Fund, the treasurer shall deposit in and credit to the trust fund all of the revenues remaining (the “excess revenues”) from the avails of all taxes levied on gasoline and motor fuels and on special fuels, as follows: for the fiscal year beginning July 1, 1989, the avails of twelve cents per gallon of said taxes received on and after January 1, 1990; for the fiscal year beginning on July 1, 1990, the avails of fourteen cents per gallon of said taxes; for the fiscal year beginning on July 1, 1991, and thereafter, the avails of all taxes levied on gasoline and motor fuels and on special fuels. Purchases of gasoline, diesel fuel, or special fuels which are subject to excise tax under Chapter 7 of Subtitle II of Title 47 of the Louisiana Revised Statutes of 1950 shall be exempt from the state sales tax and any sales tax levied by a political subdivision as defined by Article VI, Section 44(2). All monies appropriated by the Federal Highway Administration and the Federal Aviation Administration, or their successors, either reimbursed or paid directly, shall be paid directly or deposited in and credited to the trust fund.

            (B)(1) Except as provided for in Subparagraph (2) of this Paragraph, the monies in the trust fund shall be appropriated or dedicated solely and exclusively for the costs for and associated with construction and maintenance of the roads and bridges of the state and federal highway systems, the Statewide Flood-Control Program or its successor, ports, airports, transit, and the Parish Transportation Fund or its successor and for the payment of all principal, interest, premium, if any, and other obligations incident to the issuance, security, and payment in respect of bonds or other obligations payable from the trust fund as authorized in Paragraph (D) of this Section. Unless pledged to the repayment of bonds authorized in Paragraphs (C) or (D) of this Section, the monies in the trust fund allocated to ports, airports, flood control, parish transportation, and state highway construction shall be appropriated annually by the legislature only pursuant to programs established by law which establish a system of priorities for the expenditure of such monies, except that the Transportation Infrastructure Model for Economic Development, which shall include only those projects enumerated in House Bill 17 of the 1989 First Extraordinary Session of the Legislature and US Highway 61 from Thompson Creek to the Mississippi Line, in lieu of “US 61-Bains to Mississippi Line”, and US Highway 165 from I-10 to Alexandria to Monroe to Bastrop and thence on US Highway 425 from Bastrop to the Arkansas Line, in lieu of “US 165-I-10 Alexandria-Monroe-Bastrop-Arkansas Line” and LA 15-Natchez, Mississippi to Chase in lieu of “LA 15-Natchez, Mississippi to Monroe”, shall be funded as provided by law. The state-generated tax monies appropriated for ports, Parish Transportation Fund, or its successor, and the Statewide Flood-Control Program, or its successor shall not exceed twenty percent annually of the state-generated tax revenues in the trust fund; provided, however, that no less than the avails of one cent of the tax on gasoline and special fuels shall be appropriated each year to the Parish Transportation Fund, or its successor. The annual appropriation for airports shall be a sum equal to, but not greater than, the annual estimated revenue to be derived from the state taxes to be collected and received on aviation fuel. Unencumbered and unexpended balances at the end of each fiscal year shall remain in the trust fund. The earnings realized in each fiscal year on the investment of monies in the trust fund shall be deposited in and credited to the trust fund.

            (2) There is hereby established in the Transportation Trust Fund a special subfund to be known as the “Construction Subfund”, hereinafter referred to as “the subfund”, in which shall be deposited the avails of any new taxes that become effective and are levied on gasoline, motor fuels, or special fuels on or after July 1, 2017. The monies in the subfund shall be appropriated and dedicated solely for the direct costs associated with actual project delivery, construction, and maintenance of transportation and capital transit infrastructure projects of the state and local government. The monies in the subfund that are appropriated by the legislature to the Department of Transportation and Development, or its successor, shall not be utilized by the department for the payment of employee wages and related benefits or employee retirement benefits.

            (C) The State Bond Commission or its successor, may issue and sell bonds, notes, or other obligations (“Bonds”) secured by a pledge of a portion of the revenues not to exceed the avails of four cents per gallon of the taxes on gasoline and motor fuels and on special fuels received by the state treasurer. Bonds so issued may also be secured by a pledge of all or a portion of excess revenues as additional security therefor, and if so pledged any portion thereof needed to pay principal, interest, or premium, if any, and other obligations incident to the issuance, security, and payment in respect to Bonds may be expended by the treasurer without the need for legislative appropriation. The Bonds may be issued in the manner set forth in this Section to provide for the costs for and associated with construction and maintenance of the roads and bridges of the state and federal highway systems, Statewide Flood-Control Program, ports, airports, and for any other purpose for which monies in the trust fund may be expended as provided by law. Such Bonds shall not be considered to be debt under Article VII, Section 6, unless the provisions of Article VII, Section 6, relative to incurring debt by the state are met, in which case the full faith and credit of the state may also be pledged in addition to the revenues received by the treasurer.

            (D) The State Bond Commission or its successor may also issue and sell bonds, notes, or other obligations secured by a pledge of the excess revenues deposited in the trust fund, which shall otherwise be issued in the manner and for the purposes provided for in this Section, and if so pledged any portion thereof needed to pay principal, interest, or premium, if any, and other obligations incident to the issuance, security, and payment in respect thereof may be expended by the treasurer without the need for legislative appropriation.

            (E) Bonds, notes, or other obligations issued pursuant to the provisions of Paragraphs (C) or (D) above may be issued in the manner provided by resolution of the State Bond Commission or its successor under the authority of said Paragraphs without compliance with any other requirement of this constitution or law. To that end, said Paragraphs (C) and (D) hereof shall be deemed self-operative.

            Acts 1989, No. 847, §1, eff. Jan. 1, 1990; Acts 2003, No. 1301, §1, approved Oct. 4, 2003, eff. Nov. 6, 2003; Acts 2017, No. 429, §1, approved Oct. 14, 2017, eff. Nov. 16, 2017; Acts 2018, No. 720, approved Nov. 6, 2018, eff. Dec. 12, 2018.

            *Acts 1989, 1st Ex. Sess., No. 16.