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ACT No. 9062026 Regular Session
HOUSE BILL NO. 383
BY REPRESENTATIVE MCFARLAND
1 AN ACT
2 To provide for the establishment and reestablishment of agency ancillary funds, to be
3 specifically known as internal service funds, auxiliary accounts, or enterprise funds
4 for certain state institutions, officials, and agencies; to provide for appropriation of
5 funds for Fiscal Year 2026-2027; to provide for an effective date; to regulate the
6 administration of said funds; and to provide for related matters.
7 Be it enacted by the Legislature of Louisiana:
8 Section 1.A. There are hereby appropriated the amounts shown below, which shall
9 be payable out of the state general fund, to the extent of funds deposited, unless otherwise
10 specified, for the establishment and reestablishment of agency ancillary funds which shall
11 be specifically known as internal service funds, auxiliary accounts, or enterprise funds. The
12 monies in each fund shall be used for working capital in the conduct of business enterprises
13 rendering public service, auxiliary service, and interagency service.
14 B. In the conduct of each such business, receipts shall be deposited in the state
15 treasury and disbursements made by the state treasurer to the extent of the amount deposited
16 to the credit of each ancillary fund, for the current fiscal year. All funds appropriated herein
17 shall be expended in compliance with the public bid laws of the state.
18 Section 2.A. Except as otherwise provided by law or as herein otherwise provided,
19 any fund equity resulting from prior year operations shall be included as a resource of the
20 fund from which the ancillary fund is directly or indirectly derived.
21 B. Funds on deposit with the state treasury at the close of the fiscal year are
22 authorized to be transferred to each fund respectively, as equity for the next fiscal year. All
23 unexpended cash balances as of June 30, 2027, shall be remitted to the state treasurer on or
24 before August 14, 2027. If not reestablished in the subsequent year's Act, the agency must
25 liquidate all assets and return all advances no later than August 14, 2027.
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1 C. The program descriptions contained in this Act are not part of the law and are not
2 enacted into law by virtue of their inclusion into this Act.
3 Section 3.A. All money from federal, interagency transfers, statutory dedications,
4 or fees and self-generated revenues shall be available for expenditure in the amounts herein
5 appropriated.
6 B. Any increase in such revenues shall be available for allotment and expenditure
7 by an agency on approval of an increase in the appropriation by the commissioner of
8 administration and the Joint Legislative Committee on the Budget. Any increase in such
9 revenues for an agency without an appropriation from the respective revenue source shall
10 be incorporated into the agency's appropriation on approval of the commissioner of
11 administration and the Joint Legislative Committee on the Budget.
12 Section 4.A. The figures in parentheses following the designation of a budget entity
13 are the total authorized positions and authorized other charges positions for that entity. The
14 number of employees approved for each agency, as a result of the passage of this Act, may
15 be increased by the commissioner of administration when sufficient documentation is
16 presented and the request is deemed valid. However, any request which exceeds five
17 positions shall be approved by the commissioner of administration and the Joint Legislative
18 Committee on the Budget.
19 B. The budget request of any agency with an appropriation level of thirty million
20 dollars or more shall include within its existing table of organization positions which
21 perform the function of internal auditing, including the position of a chief audit executive.
22 The chief audit executive shall be responsible for ensuring that the internal audit function
23 adheres to the Institute of Internal Auditors, Global Internal Audit Standards. The chief
24 audit executive shall maintain organizational independence in accordance with these
25 standards and shall have direct and unrestricted access to the commission, board, secretary,
26 or equivalent head of the agency. The chief audit executive shall certify to the commission,
27 board, secretary, or equivalent head of the agency that the internal audit function conforms
28 to the Institute of Internal Auditors, Global Internal Audit Standards.
29 Section 5. All key and supporting performance objectives and indicators for the
30 departments, agencies, programs, and budget units contained in the Governor’s Executive
31 Budget Supporting Document shall be adjusted by the commissioner of administration to
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1 reflect the funds appropriated therein. The commissioner of administration shall report on
2 these adjustments to the Joint Legislative Committee on the Budget each year by August
3 fifteenth.
4 Section 6. The following definition is provided for the terms of this Act: "working
5 capital" shall be considered the excess of current assets over current liabilities on an accrual
6 basis.
7 Section 7. Should any section, subsection, clause, sentence, phrase, or part of the Act
8 for any reason be held, deemed, or construed to be unconstitutional or invalid, such decisions
9 shall not affect the remaining provisions of the Act, and the legislature hereby declares that
10 it would have passed the Act, and each section, subsection, clause, sentence, phrase, or part
11 thereof, irrespective of the fact that one or more of the sections, subsections, clauses,
12 sentences, phrases, or parts thereof, is declared unconstitutional or invalid. To this end, the
13 provisions of this Act are hereby declared severable.
14 Section 8. Internal Service Funds. These funds account for the financing of goods
15 or services provided by one department or agency to other departments or agencies of the
16 governmental unit, or to other governmental units, on a cost-reimbursement basis. Excess
17 cash funds, excluding cash funds arising from working capital advances, shall be invested
18 by the state treasurer with the interest proceeds therefrom credited to each account and shall
19 not be transferred to the state general fund.
20 Section 9. In conjunction with the continuing assessment of the existing staff, assets,
21 contracts, and facilities of each department, agency, program or budget unit’s information
22 technology resources and procurement resources, upon completion of this assessment and
23 to the extent optimization of these resources will result in the projected cost savings through
24 staff reductions, realization of operational efficiencies, cost avoidance, and elimination of
25 asset duplication, the commissioner of administration is authorized to transfer the functions,
26 positions, assets, and funds from any other department, agency, program, or budget units
27 related to these optimizations to a different department. The provisions of this Section shall
28 not apply to the Department of Culture, Recreation and Tourism, or any agency contained
29 in Schedule 04, Elected Officials, of the General Appropriation Act.
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1 SCHEDULE 21
2 ANCILLARY APPROPRIATIONS
3 21-800 OFFICE OF GROUP BENEFITS
4 EXPENDITURES: FY 26 EOB FY 27 REC
5 State Group Benefits -
6 Authorized Positions (56) (56)
7 Expenditures $ 1,979,124,719 $ 2,170,674,411
8 Program Description: Provides for the administration of group health and accidental
9 insurance and group life insurance for current and former state employees and other
10 participating groups.
11 TOTAL EXPENDITURES $ 1,979,124,719 $ 2,170,674,411
12 MEANS OF FINANCE:
13 State General Fund by:
14 Interagency Transfers $ 1,098,733 $ 1,098,733
15 Fees & Self-generated Revenues $ 1,978,025,986 $ 2,169,575,678
16 TOTAL MEANS OF FINANCING $ 1,979,124,719 $ 2,170,674,411
17 Payable out of the State General Fund by
18 Fees and Self-generated Revenues to the
19 State Group Benefits Program to align
20 with projected expenditure needs $ 100,000,000
21 21-804 OFFICE OF RISK MANAGEMENT
22 EXPENDITURES: FY 26 EOB FY 27 REC
23 Risk Management -
24 Authorized Positions (43) (42)
25 Expenditures $ 305,700,399 $ 305,409,497
26 Program Description: Provides for the overall executive leadership and management of
27 the office, support services, policy analysis, management direction of the state's self-
28 insurance program; provides funding for the payment of losses on medical, malpractice,
29 property, comprehensive general liability, personal injury, automobile liability, automobile
30 physical damage, bonds, crime, aviation, wet marine boiler and machinery and
31 miscellaneous tort claims; provides funding for the payment of contracts issued for
32 professional legal defense of claims made against the state; provides funding for the
33 reimbursement of the Division of Risk Litigation in the Office of the Attorney General for
34 costs incurred for professional legal defense of claims made against the state.
35 TOTAL EXPENDITURES $ 305,700,399 $ 305,409,497
36 MEANS OF FINANCE:
37 State General Fund by:
38 Interagency Transfers $ 281,158,551 $ 281,202,131
39 Fees & Self-generated Revenues $ 22,541,848 $ 22,207,366
40 Statutory Dedications:
41 Future Medical Care Fund $ 2,000,000 $ 2,000,000
42 TOTAL MEANS OF FINANCING $ 305,700,399 $ 305,409,497
43 21-806 LOUISIANA PROPERTY ASSISTANCE AGENCY
44 EXPENDITURES: FY 26 EOB FY 27 REC
45 Louisiana Property Assistance -
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1 Authorized Positions (37) (37)
2 Expenditures $ 20,476,316 $ 20,310,725
3 Program Description: Provides for the accountability of the state's movable property
4 through the development and implementation of sound management practices.
5 TOTAL EXPENDITURES $ 20,476,316 $ 20,310,725
6 MEANS OF FINANCE:
7 State General Fund by:
8 Interagency Transfers $ 1,615,846 $ 1,615,846
9 Fees & Self-generated Revenues $ 18,860,470 $ 18,694,879
10 TOTAL MEANS OF FINANCING $ 20,476,316 $ 20,310,725
11 21-807 LOUISIANA FEDERAL PROPERTY ASSISTANCE AGENCY
12 EXPENDITURES: FY 26 EOB FY 27 REC
13 Federal Property Assistance -
14 Authorized Positions (9) (9)
15 Expenditures $ 3,509,325 $ 3,298,837
16 Program Description: Seeks to assure the fair and equitable distribution of federal
17 property allocated to Louisiana by the General Services Administration to eligible Louisiana
18 donees.
19 TOTAL EXPENDITURES $ 3,509,325 $ 3,298,837
20 MEANS OF FINANCE:
21 State General Fund by:
22 Interagency Transfers $ 1,084,342 $ 1,084,342
23 Fees & Self-generated Revenues $ 2,424,983 $ 2,214,495
24 TOTAL MEANS OF FINANCING $ 3,509,325 $ 3,298,837
25 21-811 PRISON ENTERPRISES
26 EXPENDITURES: FY 26 EOB FY 27 REC
27 Prison Enterprises -
28 Authorized Positions (72) (72)
29 Expenditures $ 37,142,506 $ 36,992,277
30 Program Description: Utilizes the resources of the Department of Public Safety and
31 Corrections in the production of food, fiber, and other necessary items used by offenders in
32 order to lower the cost of incarceration; provides products and services to state agencies
33 and agencies of parishes, municipalities, and other political subdivisions; and provides work
34 opportunities for offenders. Prison Enterprises conducts both industry operations and
35 agriculture operations.
36 TOTAL EXPENDITURES $ 37,142,506 $ 36,992,277
37 MEANS OF FINANCE:
38 State General Fund by:
Interagency Transfers $ 27,464,660 $ 27,332,77839
40 Fees & Self-generated Revenues $ 9,677,846 $ 9,659,499
41 TOTAL MEANS OF FINANCING $ 37,142,506 $ 36,992,277
42 EXPENDITURES:
43 Payment to the Prison Enterprises Program
44 for personal services for a pay increase for
45 Correction Services officers $ 16,155
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1 TOTAL EXPENDITURES $ 16,155
2 MEANS OF FINANCE:
3 State General Fund by:
4 Interagency Transfers $ 11,470
5 Fees & Self-generated Revenues $ 4,685
6 TOTAL MEANS OF FINANCING $ 16,155
7 21-815 OFFICE OF TECHNOLOGY SERVICES
8 EXPENDITURES: FY 26 EOB FY 27 REC
9 Technology Services -
10 Authorized Positions (847) (884)
11 Authorized Other Charges Positions (9) (0)
12 Expenditures $ 670,850,471 $ 713,627,872
13 Program Description: The mission of the Office of Technology Services (OTS) is to
14 establish competitive, cost-effective technology systems and services while acting as the sole
15 centralized customer for the acquisition, billing and record keeping of those technology
16 services. OTS shall charge respective user agencies for the cost of the technology and
17 services provided including the cost of the operation of the office in a fair, equitable, and
18 consistent manner, in full compliance with State of Louisiana statutes.
19 TOTAL EXPENDITURES $ 670,850,471 $ 713,627,872
20 MEANS OF FINANCE:
21 State General Fund by:
22 Interagency Transfers $ 669,331,998 $ 708,501,540
23 Fees & Self-generated Revenues $ 1,518,473 $ 5,126,332
24 TOTAL MEANS OF FINANCING $ 670,850,471 $ 713,627,872
25 21-816 DIVISION OF ADMINISTRATIVE LAW
26 EXPENDITURES: FY 26 EOB FY 27 REC
27 Administration -
28 Authorized Positions (59) (59)
29 Expenditures $ 9,634,438 $ 11,965,367
30 Program Description: Provides a neutral forum for handling administrative hearings for
31 certain state agencies, with respect for the dignity of individuals and their due process
32 rights.
33 TOTAL EXPENDITURES $ 9,634,438 $ 11,965,367
34 MEANS OF FINANCE:
35 State General Fund by:
36 Interagency Transfers $ 9,605,541 $ 11,936,470
37 Fees & Self-generated Revenues $ 28,897 $ 28,897
38 TOTAL MEANS OF FINANCING $ 9,634,438 $ 11,965,367
39 21-820 OFFICE OF STATE PROCUREMENT
40 EXPENDITURES: FY 26 EOB FY 27 REC
41 Office of State Procurement -
42 Authorized Positions (99) (99)
43 Expenditures $ 13,254,634 $ 13,399,493
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1 Program Description: The mission of the Office of State Procurement is to provide cost-
2 effective services that satisfy the needs of approved governmental units of the State of
3 Louisiana through the management of products and services.
4 TOTAL EXPENDITURES $ 13,254,634 $ 13,399,493
5 MEANS OF FINANCE:
6 State General Fund by:
7 Interagency Transfers $ 2,583,342 $ 2,612,070
8 Fees & Self-generated Revenues $ 10,671,292 $ 10,787,423
9 TOTAL MEANS OF FINANCING $ 13,254,634 $ 13,399,493
10 21-829 OFFICE OF AIRCRAFT SERVICES
11 EXPENDITURES: FY 26 EOB FY 27 REC
12 Flight Maintenance -
13 Authorized Positions (4) (0)
14 Expenditures $ 3,814,159 $ 0
15 Program Description: The mission of the Office of Aircraft Services is to manage the
16 overall maintenance and provide all needed and required support for safe, proper, and
17 economic operation of the State’s various aircraft. Flight Maintenance Operations ensures
18 flight safety, maintains high safety standards while minimizing aircraft downtime for repairs,
19 and provides high quality, efficient, and economical repair and fueling services for state-
20 operated aircraft.
21 TOTAL EXPENDITURES $ 3,814,159 $ 0
22 MEANS OF FINANCE:
23 State General Fund by:
24 Interagency Transfers $ 3,634,944 $ 0
25 Fees & Self-generated Revenues $ 179,215 $ 0
26 TOTAL MEANS OF FINANCING $ 3,814,159 $ 0
27 21-860 ENVIRONMENTAL STATE REVOLVING LOAN FUNDS
28 EXPENDITURES: FY 26 EOB FY 27 REC
29 Environmental State Revolving Loan Fund $ 126,519,000 $ 126,519,000
30 Program Description: The Water Planning and Assessment Division in conjunction with
31 the Financial Services Division - State Revolving Fund Section strive to uphold Title VI and
32 amended section 221 of the federal Clean Water Act and to protect the health and welfare
33 of the citizens of the state, as well as to enhance the environment of the state by
34 administering the Clean Water State Revolving Fund and the Sewer Overflow and
35 Stormwater Reuse Municipal Grants Program. The Remediation Division's Brownfields
36 Program, in conjunction with the Financial Services Division, strives to uphold the Small
37 Business Liability Relief and Brownfields Revitalization Act and 2018 Brownfields
38 Utilization, Investment, and Local Development (BUILD) Act to address environmental
39 concerns at vacant and underutilized properties to facilitate their reuse and to support
40 community revitalization.
41 TOTAL EXPENDITURES $ 126,519,000 $ 126,519,000
42 MEANS OF FINANCE:
43 State General Fund by:
44 Statutory Dedications:
45 Clean Water State Revolving Fund $ 125,000,000 $ 123,969,000
46 Brownfields Cleanup Revolving
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1 Loan Fund $ 350,000 $ 350,000
2 Federal Funds $ 1,169,000 $ 2,200,000
3 TOTAL MEANS OF FINANCING $ 126,519,000 $ 126,519,000
4 21-861 DRINKING WATER REVOLVING LOAN FUND
5 EXPENDITURES: FY 26 EOB FY 27 REC
6 Drinking Water Revolving Loan Fund $ 66,707,202 $ 66,707,202
7 Program Description: Assist public water systems in financing needed drinking water
8 infrastructure improvements (e.g. treatment plant, distribution main replacement, storage
9 facilities, new wells). The Drinking Water Revolving Loan Fund provides assistance in the
10 form of low-interest loans and technical assistance to public water systems in Louisiana to
11 assist them with complying with state and federal drinking water regulations, ensuring that
12 their customers are provided with safe drinking water thereby protecting the public health.
13 TOTAL EXPENDITURES $ 66,707,202 $ 66,707,202
14 MEANS OF FINANCE:
15 State General Fund by:
16 Statutory Dedications:
17 Drinking Water Revolving Loan Fund $ 66,707,202 $ 66,707,202
18 TOTAL MEANS OF FINANCING $ 66,707,202 $ 66,707,202
19 Section 10. This Act shall become effective on July 1, 2026.
SPEAKER OF THE HOUSE OF REPRESENTATIVES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED:
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