Louisiana House Bill HB559

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

Establishes statutory requirements to guide future Rapid Response Fund project agreements (EN NO IMPACT GF EX See Note)

Impact

The implementation of HB 559 is anticipated to have a significant impact on the oversight of projects funded through the Rapid Response Fund. By formalizing these requirements, the bill aims to ensure that funds are used effectively to generate sustainable employment opportunities. The legislation also seeks to reduce instances of fund misuse, thereby increasing public confidence in the effectiveness of economic development initiatives. The exemptions noted in the bill, particularly for disaster-related projects and governmental agreements, suggest a nuanced approach that balances immediate economic needs with long-term accountability.

Summary

House Bill 559, introduced by Representative Waddell, seeks to establish statutory requirements for the Rapid Response Fund’s project agreements in Louisiana. This legislation mandates a set of accountability measures that must be incorporated into all legal agreements for projects utilizing the fund. These measures include specific job creation targets, minimum payroll stipulations, timelines for achieving these goals, capital investment details from the receiving entity, validation processes for targets achieved, and recoupment procedures in the event of nonperformance. This bill is aimed at enhancing the transparency and accountability of economic development efforts funded by the state.

Sentiment

Overall, the sentiment around HB 559 appears to be supportive among advocates for economic responsibility and job creation. Proponents argue that the bill is a positive step forward in enhancing accountability mechanisms, ensuring that taxpayers can expect measurable outcomes from state investments. However, there may be concerns from some stakeholders regarding the burdensome nature of compliance with these requirements, especially for smaller entities that might benefit from the fund but lack the capacity to meet stringent accountability measures.

Contention

Notable points of contention regarding HB 559 revolve around the balance between accountability and accessibility. While the provisions intend to protect public funds and ensure job outcomes, some critics might argue that the strict requirements could deter potential applicants from seeking funding. This could particularly impact smaller businesses or community organizations that may find it challenging to navigate the compliance landscape. Furthermore, the exemptions for disaster response projects raise questions about how such situations will be managed under the new framework.