Provides for the ancillary expenses of state government

House Bill 383 establishes and reestablishes ancillary funds for state agencies to finance internal service operations, auxiliary services, and interagency business enterprises for fiscal year 2026-2027. The bill appropriates a total of $3.67 billion from various revenue sources, including $1,038,444,478 in interagency transfers, $2,238,473,784 in fees and self-generated revenues, $193,026,202 in statutory dedications, and $2,200,000 in federal funds. These funds are designated as internal service funds, auxiliary accounts, or enterprise funds and shall be used for working capital in the conduct of business enterprises rendering public, auxiliary, and interagency services. The bill requires all appropriated funds to be expended in accordance with public bid laws, establishes procedures for fund equity carryover from prior years, and mandates that all unexpended cash balances as of June 30, 2027, be remitted to the state treasurer by August 14, 2027, unless the funds are reestablished in the next fiscal year.

The bill directly affects state agencies operating ancillary and enterprise funds, particularly larger agencies with appropriation levels of thirty million dollars or more. Such agencies must now include positions within their organizational structure dedicated to internal auditing services, including a chief audit executive position responsible for ensuring compliance with the Institute of Internal Auditors International Standards for the Professional Practice of Internal Auditing. The legislation impacts agency staffing by allowing the commissioner of administration to increase employee positions when valid documentation is presented, though increases exceeding five positions require Joint Legislative Committee on the Budget approval. Additionally, the commissioner of administration is authorized to transfer functions, positions, assets, and funds between departments to optimize information technology and procurement resources and achieve cost savings, though this authority does not apply to the Department of Culture, Recreation and Tourism or elected officials' offices.

House Bill 383 operates within Louisiana's broader appropriations framework established by the General Appropriation Act and coordinates with the Division of Administration and the Joint Legislative Committee on the Budget regarding revenue increases beyond appropriated amounts and staffing adjustments. The bill establishes that any revenue increases from federal, interagency, statutory dedication, or self-generated sources require approval from both the commissioner of administration and the JLCB before expenditure. The statute requires the commissioner of administration to adjust performance objectives and indicators in the Executive Budget Supporting Document to reflect appropriated funds and report these adjustments to the JLCB by August 15, 2026. The bill clarifies that program descriptions included in the Act are not enacted into law and provides severability provisions to ensure that if any section is deemed unconstitutional or invalid, the remaining provisions shall remain in effect.