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Panel clears bill to create 'Louisiana Dividend' fund from excess mineral revenues
Summary
House members voted to report House Bill 628, which would create a treasury-managed dividend fund to hold portions of mineral revenue above a statutory threshold and provide a process for future distributions to residents, with a sponsor amendment giving the Legislature authority to redirect funds with a concurrent resolution.
House Bill 628, sponsored by Representative Cruz, would create a Louisiana Dividend Program in the state Treasury to collect and, once certain thresholds are met, distribute payments to qualifying residents from excess mineral revenues.
Under the bill’s formula, 25% of mineral revenue in excess of a $650 million statutory threshold would flow into a dedicated dividend subfund. Once the subfund reached $400 million, the statute would authorize a distribution cycle; Representative Cruz filed an amendment that removes automatic payments and allows the legislature to adopt a two-thirds concurrent resolution in the regular session electing instead to use the funds for capital outlay or other purposes.
Cruz said the bill is meant to ensure the state has a ready program if mineral-revenue surges make sizable payouts feasible, and he characterized the draft as a flexible, implementable framework patterned on Alaska’s Permanent Fund practice. He told the committee the bill includes application, residency and eligibility rules and makes special provision for incarcerated residents by routing their amounts to a criminal-justice subfund.
“Some constituents brought it to me. I’m like, why don’t we put something in place?” Cruz said. He said the bill’s thresholds and timing are adjustable and that he is willing to work with colleagues on details.
Committee members questioned frequency of high mineral-revenue years and whether the program would be likely to generate meaningful per-person payments. Witnesses and members discussed the statute’s residency and eligibility provisions, including a 12-month domicile requirement and exclusions for certain noncitizens and people convicted of specified offenses; the bill includes administrative appeals for residents who believe they were improperly excluded.
After amendment and debate the committee adopted the change allowing legislative direction by concurrent resolution and reported House Bill 628 favorably as amended by roll call (12 yeas, 1 nay). Representative Cruz said he will continue consultations to refine technical and administrative details before floor action.
