APPROPRIATIONS/SUPPLEML: (Constitutional Amendment) Provides relative to application of nonrecurring state monies to state retirement system unfunded accrued liabilities (EN NO IMPACT APV)

Budget

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: Dixon McMakin
Last action: 2026-06-02
Official status: Sent to the Secretary of State - Act 606
Effective date: Not listed

Plain English Breakdown

Checked against official source text during the last sync.

Amendment to State Retirement System Funding

This bill proposes a constitutional amendment that changes how nonrecurring state money is used for funding the unfunded liabilities of Louisiana's state retirement systems.

What This Bill Does

Proposes an amendment to Article VII, Section 10(D)(2)(b)(iii) of the Constitution of Louisiana.
Removes the requirement that nonrecurring state monies must be applied first to the oldest unfunded liabilities of state retirement systems.
Allows these funds to be used for any part of the unfunded accrued liability instead of just the oldest portion.
Requires a vote by the electors of Louisiana to approve or reject this amendment.

Who It Names or Affects

The people of Louisiana who will vote on whether to amend their state constitution.
State retirement systems that have unfunded liabilities and receive nonrecurring state monies.

Terms To Know

Nonrecurring state money: Money designated in the official forecast as not expected to continue into future fiscal years.
Unfunded accrued liability: The difference between a retirement system's total liabilities and its assets, representing an obligation that has not yet been funded.

Limits and Unknowns

It is unclear how the change will affect the distribution of funds among different state retirement systems.
The exact impact on the financial stability of the state retirement systems remains to be seen.

Bill History

2026-06-02 H
Effective date: See Act.
2026-06-02 H
Becomes Act No. 606.
2026-06-02 H
Taken by the Clerk of the House and presented to the Secretary of State in accordance with the Rules of the House.
2026-05-31 S
Signed by the President of the Senate.
2026-05-29 S
Signed by the President of the Senate.
2026-05-29 H
Enrolled and signed by the Speaker of the House.
2026-05-28 H
Received from the Senate without amendments.
2026-05-28 S
Read by title, passed by a vote of 34 yeas and 0 nays, and ordered returned to the House. Motion to reconsider tabled.
2026-05-28 S
Called from the Calendar.
2026-05-21 S
Read by title and returned to the Calendar, subject to call.
2026-05-21 S
Rules suspended.
2026-05-18 S
Reported without Legislative Bureau amendments. Read by title and passed to third reading and final passage.
2026-05-14 S
Read by title and referred to the Legislative Bureau.
2026-05-13 S
Reported favorably.
2026-04-21 S
Read second time by title and referred to the Committee on Finance.
2026-04-20 S
Received in the Senate. Rules suspended. Read first time by title and placed on the Calendar for a second reading.
2026-04-20 H
Read third time by title, roll called on final passage, yeas 87, nays 0. The bill, having received two-thirds vote of the elected members, was finally passed, title adopted, ordered to the Senate.
2026-04-15 H
Scheduled for floor debate on 04/20/2026.
2026-04-14 H
Read by title, ordered reengrossed, passed to 3rd reading.
2026-04-13 H
Reported without amendments (8-0-1).
2026-03-31 H
Read by title, ordered engrossed, recommitted to the Committee on Civil Law and Procedure.
2026-03-30 H
Reported favorably (17-0). To be recommitted to the Committee on Civil Law and Procedure.
2026-03-09 H
Read by title, under the rules, referred to the Committee on Appropriations.
2026-01-23 H
First appeared in the Interim Calendar on 1/23/2026.
2026-01-21 H
Under the rules, provisionally referred to the Committee on Appropriations.
2026-01-21 H
Prefiled.

Official Summary Text

APPROPRIATIONS/SUPPLEML: (Constitutional Amendment) Provides relative to application of nonrecurring state monies to state retirement system unfunded accrued liabilities (EN NO IMPACT APV)

Current Bill Text

Read the full stored bill text

ENROLLED
ACT No. 6062026 Regular Session
HOUSE BILL NO. 27
BY REPRESENTATIVE MCMAKIN
1 A JOINT RESOLUTION
2 Proposing to amend Article VII, Section 10(D)(2)(b)(iii) of the Constitution of Louisiana,
3 relative to application of certain state monies to state retirement system unfunded
4 accrued liability; to remove requirement that such monies be applied to the oldest
5 system liabilities first; to provide for submission of the proposed amendment to the
6 electors; and to provide for related matters.
7 Notice of intention to introduce this Act has been published
8 as provided by Article X, Section 29(C) of the Constitution
9 of Louisiana.
10 Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members
11 elected to each house concurring, that there shall be submitted to the electors of the state of
12 Louisiana, for their approval or rejection in the manner provided by law, a proposal to
13 amend Article VII, Section 10(D)(2)(b)(iii) of the Constitution of Louisiana, to read as
14 follows:
Page 1 of 3
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are additions.
HB NO. 27 ENROLLED
1 §10. Expenditure of State Funds
2 Section 10.
3 * * *
4 (D) Appropriations.
5 * * *
6 (2) Except as otherwise provided in this constitution, the appropriation or
7 allocation of any money designated in the official forecast as nonrecurring shall be
8 made only for the following purposes:
9 * * *
10 (b)
11 * * *
12 (iii) For Fiscal Year 2024-2025 and each fiscal year thereafter, the legislature
13 shall appropriate no less than twenty-five percent of any money designated in the
14 official forecast as nonrecurring to the state retirement systems for application to
15 their unfunded accrued liability. Money appropriated pursuant to this Item shall be
16 applied by the receiving system to its outstanding positive amortization bases in the
17 order in which they were created, from oldest to newest. The legislature may
18 provide by law for a formula to distribute the nonrecurring money between those
19 state retirement systems that have unfunded accrued liability. If the legislature has
20 not provided by law for a distribution formula, nonrecurring money shall be
21 appropriated pursuant to this Item to each system in the proportion that the system's
22 total unfunded accrued liability bears to the total of all state system unfunded
23 accrued liability, using the most recent system valuations adopted by the Public
24 Retirement Systems' Actuarial Committee or its successor. Any payment to a state
25 retirement system made pursuant to the provisions of this Item shall not be used,
26 directly or indirectly, to fund cost-of-living increases for such system.
27 * * *
28 Section 2. Be it further resolved that this proposed amendment shall be submitted
29 to the electors of the state of Louisiana at the statewide election to be held on November 3,
30 2026.
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HB NO. 27 ENROLLED
1 Section 3. Be it further resolved that on the official ballot to be used at the election,
2 there shall be printed a proposition, upon which the electors of the state shall be permitted
3 to vote YES or NO, to amend the Constitution of Louisiana, which proposition shall read as
4 follows:
5 Do you support an amendment to authorize a state retirement system to apply
6 any nonrecurring state monies it receives to any of its unfunded accrued
7 liability rather than requiring application to its oldest unfunded accrued
8 liability? (Amends Article VII, Section 10(D)(2)(b)(iii))
SPEAKER OF THE HOUSE OF REPRESENTATIVES
PRESIDENT OF THE SENATE
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are additions.