ENROLLED
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VETOED
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Veto Message
Regular Session, 2010
HOUSE BILL NO. 386
BY REPRESENTATIVE HUTTER
AN ACT1
To amend and reenact R.S. 51:935.1(A)(1)(a) and (2), (B)(4)(introductory paragraph), and2
(E)(1)(a), to enact R.S. 51:935.1(B)(4)(f) through (l) and (6), and to repeal R.S.3
51:935.1(A)(3), relative to the Department of Economic Development; to require an4
annual report; to require the report to be submitted electronically to each member of5
the Legislature of Louisiana; to require reporting of each local or regional economic6
development commission participating in the development of prospective businesses;7
to require the reporting of jobs created and retained; to require the reporting of8
revenue; to require a listing of successful businesses from fiscal years previously9
reported; to require the reporting of workers trained to meet needs; and to provide10
for related matters.11
Be it enacted by the Legislature of Louisiana:12
Section 1. R.S. 51:935.1(A)(1)(a) and (2), (B)(4)(introductory paragraph), and13
(E)(1)(a) are hereby amended and reenacted and R.S. 51:935.1(B)(4)(f) through (l) and (6)14
are hereby enacted to read as follows: 15
§935.1. Unified economic development budget report16
A.(1)(a) The Department of Economic Development shall issue a biennial17
an annual unified economic development budget report which shall be prepared by18
an independent economist selected by and under contract with the division of19
administration, who shall approve the methodologies and assumptions used in20
preparation of the report, and if appropriate, after consultation with the Economic21
Estimating Conference, the Revenue Estimating Conference, the legislative auditor,22
the legislative fiscal office, the Department of Economic Development, the23
Department of Revenue, and the Louisiana Workforce Commission.24
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(2) The report shall be submitted to the governor, the president of the Senate,1
the speaker of the House of Representatives, the chair of the Senate Commerce,2
Consumer Protection, and International Affairs Committee, the chair of the House3
Commerce Committee, and the David R. Poynter Legislative Research Library. The4
report shall also be submitted electronically to each member of the Legislature of5
Louisiana.6
* * *7
B. The report shall include:8
* * *9
(4) The following performance data, including both direct and indirect10
impact, for each economic development program for the fiscal year period being11
reported, and, beginning with the report issued on November 15, 2007, a comparison12
to the two fiscal years previously reported and the average of all prior fiscal years13
previously reported, or the reasons why such data is not available:14
* * *15
(f) The actual number of businesses or prospects that have been contacted16
after there has been a finalizing or closing of a deal.17
(g) The dollar amount of revenue generated by each new business.18
(h) A listing of successful businesses from the two fiscal years previously19
reported indicating a track record of success.20
(i) A listing of all prospects that are nonconfidential.21
(j) The actual number and gross payroll of construction jobs created while22
each facility is being built.23
(k) The actual number and gross payroll of permanent jobs retained at each24
business.25
(l) The actual number of employees in the workforce trained to meet the26
demands of each business.27
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(6) A complete listing of each local or regional economic development1
commission participating in the development of prospective business, and whether2
the business is new, retained, or expanded.3
* * *4
E.(1)(a) Beginning in 2004, the The legislative auditor shall conduct an5
annual performance audit designed to evaluate the management controls, accuracy,6
and reliability of the reported information on at least three economic development7
programs as defined in this Section. The economic development programs that are8
to be audited shall be selected by the legislative auditor.9
* * *10
Section 2. R.S. 51:935.1(A)(3) is hereby repealed in its entirety.11
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: VETO MESSAGE
House Bill No. 386 seeks to require additional reporting by the Louisiana Department of
Economic Development and the Division of Administration. On June 21, 2010, I signed into
law House Bills 406, 553, and 559 by Representative Wayne Waddell. These bills require
that dollars spent and jobs created by the Mega-Project Development Fund and the Rapid
Response Fund be published online, providing greater transparency and accountability on
economic development activities.
The Department of Economic Development (LED) indicates that House Bill No. 386 would
negatively affect the attraction of new business to Louisiana in two ways. First, the
legislation requires the reporting of revenue generated by each new business. This is
proprietary information that is statutorily confidential when reported to the Department of
Revenue for tax purposes.
Second, House Bill No. 386 seeks a listing of all LED’s business prospects that are
“nonconfidential.” The only LED prospects with express statutory confidentiality are those
projects with published confidentiality determinations, generally no more than three or four
at a time. Meanwhile, LED has dozens of other prospects in various stages of
discussions—from initial information requests to Requests for Proposals to contractual
negotiations. This bill can be interpreted to require LED to publish a notice for every
company contact made, even casual inquiries at an industry conference or trade show.
Publishing this type of information will undoubtedly deter businesses from relocating to
Louisiana.
For these reasons, I have vetoed House Bill No. 386 and hereby return it to the House of
Representatives.