House Bill 599, introduced in Louisiana on April 4, 2025, aims to revamp the state’s financial framework by making significant adjustments to the management of funds derived from tobacco settlements and mineral revenues. This bill proposes technical changes to existing laws governing the Millennium Trust and the Louisiana Fund, while also repealing certain dedications of mineral revenues.

At the heart of House Bill 599 is the Millennium Trust, which currently allocates 75% of tobacco settlement funds to three subfunds: the Health Excellence Fund, the Education Excellence Fund, and the TOPS Fund. The proposed legislation retains these allocations but introduces a requirement for any changes to the fund’s purposes to undergo a review by the attorney general, ensuring compliance with the state’s obligations under the tobacco settlement agreement.

The Louisiana Fund, which receives the remaining 25% of tobacco settlement funds, will also see its provisions retained under the new bill. Notably, all unencumbered and unexpended funds at the end of the fiscal year will remain in the fund, promoting fiscal stability.

One of the most controversial aspects of House Bill 599 is its repeal of the dedication of mineral revenues to several key funds, including the Mineral Revenue Audit and Settlement Fund and the Revenue Stabilization Trust Fund. This move has sparked debates among lawmakers, with some arguing it could undermine funding for essential services like education and infrastructure. Proponents, however, argue that streamlining these dedications could lead to more efficient fund management.

The bill also proposes to rename the Revenue Stabilization Trust Fund to the Revenue Stabilization Fund, while maintaining its core functions. This change reflects a broader effort to simplify the state’s financial structure.

As Louisiana grapples with budgetary challenges, House Bill 599 is poised to have significant economic implications. Experts suggest that the bill could lead to more flexible fund management, but caution that the repeal of certain revenue dedications may provoke backlash from stakeholders reliant on those funds.

With discussions ongoing, the future of House Bill 599 remains uncertain. Lawmakers will need to weigh the potential benefits of streamlined fund management against the risks of reduced funding for critical state services. As the legislative session progresses, all eyes will be on how this bill evolves and its ultimate impact on Louisiana’s financial landscape.