Louisiana House Bill HB406

Louisiana 2010 Regular Session

• Introduced: 3/29/10
• Refer: 3/29/10
• Report Pass: 4/19/10
• Engrossed: 5/11/10
• Refer: 5/12/10
• Report Pass: 5/26/10
• Enrolled: 6/9/10
• Chaptered: 6/21/10
• Passed: 6/21/10

Caption

Requires economic impact and performance information in reports to the legislature regarding Mega-Project Development Fund and Rapid Response Fund projects

Impact

The enactment of HB 406 will likely strengthen the oversight mechanisms surrounding economic development funds in Louisiana. By requiring detailed information on the outcomes of funded projects, the state government seeks to ensure that investments yield tangible benefits, such as job creation and economic growth. The bill aims to curtail the misuse of funds by enforcing regular monitoring and evaluation of economic initiatives, thus potentially leading to more effective allocation of resources and priorities in state-funded development projects.

Summary

House Bill 406 introduces requirements for enhanced reporting on expenditures related to the Mega-Project Development Fund and the Rapid Response Fund in Louisiana. The bill mandates that the Secretary of the Department of Economic Development provide semiannual reports to the Joint Legislative Committee on the Budget, detailing expenditures, performance targets, outcomes, and job creation statistics associated with funded projects. This legislative change aims to increase transparency and accountability in the management of state funds allocated for economic development initiatives.

Sentiment

Responses to HB 406 appear to be generally positive among supporters who view the bill as a progressive step towards accountability in government spending. Advocates emphasize the importance of ensuring that economic development projects deliver measurable results for taxpayers. However, there may be some apprehension from stakeholders who fear that stringent reporting requirements could complicate project management and deter investment due to increased scrutiny.

Contention

Notable points of contention surrounding HB 406 include concerns about the administrative burden imposed on the Department of Economic Development for compliance with the reporting requirements. Critics argue that while transparency is essential, the potential for excessive bureaucracy could hinder timely action on economic initiatives. Further, there may be debates regarding the definition of success metrics and whether they adequately capture the long-term benefits of investments in economic development.