Provides with respect to the management of watershed restoration (EG DECREASE GF RV See Note)

House Bill 802 creates Chapter 9-C of Title 30 of the Louisiana Revised Statutes, establishing the Watershed Restoration and Conservation Fund as a special fund in the state treasury. The bill directs the state treasurer to deposit one hundred percent of recurring severance tax revenues collected on sand and gravel that would otherwise go to the state general fund, after satisfying constitutional allocations and other statutorily required allocations, into this new fund. Additionally, the fund may receive donations, gifts, grants, and other revenues. Monies in the fund shall be invested according to the same procedures governing state general fund investments, with interest earned on fund investments credited back to the fund and any unexpended and unencumbered monies remaining in the fund at fiscal year-end carrying forward into the next year.

The fund's distributions will benefit only statutorily-created watershed-based entities that meet specific criteria established by the legislation. These entities must have been created by statute, be required to develop and maintain both a master plan and annual plan subject to legislative review and approval, possess statutory responsibility for floodplain management within their watershed including authority over flood risk reduction projects, and be authorized by law to promulgate rules and regulations for watershed and floodplain management. Additionally, the governing board of eligible entities must include representation from parishes wholly or partially within the watershed and collectively possess relevant professional expertise in engineering, hydrology, water resources management, floodplain management, environmental science, land use planning, and public administration as prescribed by law. The fund's priority shall be supporting the reclamation, restoration, and long-term stewardship of lands and watersheds impacted by sand and gravel mining operations, with special emphasis on flood-prone areas and impaired watersheds.

This legislation operates within Louisiana's constitutional and statutory framework governing resource management and state revenues. The bill preserves existing constitutional provisions regarding allocation of severance tax revenues to the Bond Security and Redemption Fund under Article VII, Section 9(B) of the Louisiana Constitution while redirecting only the marginal portion that would have gone to the general fund. The fund represents a specialized application of state severance tax policy, similar to other dedicated funds that support specific natural resource management objectives. The requirement for annual reporting to the House Committee on Natural Resources and Environment and the Senate Committee on Natural Resources ensures legislative oversight and accountability. The effective date of July 1, 2026, allows time for implementation and coordination with existing state treasury and watershed management procedures.