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Regular Session, 2010
SENATE BILL NO. 299
BY SENATOR DONAHUE
FUNDS/FUNDING. Provides for review and evaluation of fees appropriated in the General
Appropriation Bill. (7/1/10)
AN ACT1
To enact R.S. 49:200.2, relative to state government services; to provide for a cost recovery2
budget request form; to provide for distribution of the form; to provide for an annual3
evaluation of certain fees; to provide relative to the development of a plan and4
schedule relative to the review of fees; to provide for an annual review and report of5
the findings of such review; to provide for an effective date; and to provide for6
related matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1. R.S. 49:200.2 is hereby enacted to read as follows: 9
ยง200.2. State government fees for services and activities; cost recovery10
A. The legislature does hereby recognize and acknowledge that:11
(1) Generally, government services or activities that are entirely for the12
public good should be funded by general tax dollars. Services or activities that13
only benefit a particular group of individuals should be funded by beneficiary14
user group. When there is both a public and private benefit, the costs of the15
service or activity should be apportioned between the public in general and the16
user group.17 SB NO. 299
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(2) It is a legitimate budget practice to periodically re-evaluate decisions1
made regarding the funding of government services or activities, and shift costs2
from general tax dollars to the user group, or vice versa, as appropriate.3
(3) Re-evaluating the funding of state government services and activities4
is also needed to identify and prioritize those services or activities that the state5
should be providing for the protection, health, welfare, safety and security of its6
citizens. Those services and activities which do not benefit the public as a whole7
should be considered for cost shifting or elimination.8
B.(1)(a) Beginning with budget preparation for the Fiscal Year 2011-9
2012 budget, the division of administration shall develop a "cost recovery"10
budget request form to be completed by each budget unit in the executive11
branch of state government, except those in higher education agencies in which12
case the Board of Regents shall develop such form.13
(b) Such form shall require the budget unit to:14
(i) List all fees authorized for collection by the budget unit that are15
requested to be appropriated in the General Appropriation Bill as part of the16
unit's operating budget.17
(ii) Report the prior fiscal year's actual revenue generated from fees as18
well as actual expenditures associated with providing the service or performing19
the activity. Report the current fiscal year's budget authority and anticipated20
expenditures. Report the next fiscal year's requested budget authority and21
projected expenditures.22
(iii) Provide a summary description of service or activity funded by the23
fee and the legal authority for the fee.24
(iv) Include performance indicator data associated with the service or25
activity.26
(v) Provide historical data on revenue generated and expenditures.27
(vi) Provide a recommendation on apportionment of funding between28
the state and the particular user group.29 SB NO. 299
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(c) For purposes of this Section, "expenses" shall include both direct and1
indirect cost associated with providing the service or performing the activity.2
(d) The division of administration and Board of Regents may modify the3
current Budget Request Form No. 6, 6(a), (b) and (s) or a similar form reporting4
means of finance other than state general fund to be the cost recovery form5
required by this Section.6
(e) Guidelines for completing the cost recovery form shall be included7
in the annual instructions provided by the division of administration or Board8
of Regents to the budget units. In addition, the cost recovery form shall be9
included in and considered a part of the official documents of the budget unit's10
budget request.11
(2)(a) The meaning of terms used in this Section, the creation of budget12
form, the distribution of the form, and inclusion in the budget unit's official13
budget request and distribution thereof shall be consistent with the provisions14
of Subpart A of Part II of Chapter I of Subtitle I of Title 39 of the Louisiana15
Revised Statutes of 1950.16
(b) In addition, the head of each budget unit or the Board of Regents17
simultaneous with submission of their budget request to the governor shall18
submit to the Commission on Streamlining Government their completed cost19
recovery forms on services and activities performed by their budget units.20
(3) If any budget unit fails to submit completed cost recovery forms as21
required by this Section, R.S. 39:33(B) shall be applicable.22
C.(1) The division of administration shall establish a procedure for23
periodic review, analysis, and evaluation that fees established to fund specific24
activities are generating funding in direct proportion to expenditures associated25
with such activity.26
(2) The review, analysis, and evaluation shall include historical data and27
trends. It shall specifically look at revenue generated through the fee,28
expenditures incurred for the activity, the ratio of revenue to expenditures, the29 SB NO. 299
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units of service and annual cost per unit of service. It may include any other1
information deemed relevant and appropriate by the commissioner of2
administration.3
D.(1) Beginning October 1, 2010, and every year thereafter, the division4
of administration shall develop a plan and schedule for the review of fees. The5
plan and schedule shall be submitted to the Joint Legislative Committee on the6
Budget for its review and approval. The plan may be adjusted annually as7
needed.8
(2) Each plan and schedule shall provide for the review of not more than9
twenty-five percent of the fees. The plan and schedule shall specify the fees that10
are to be reviewed. A fee shall be reviewed at least once in a time period of five11
years.12
(3) The Joint Legislative Committee on the Budget, hereinafter referred13
to as "the committee," shall conduct a review of the fees as specified in such14
plan and schedule. Such review may include the division of administration's15
evaluation and any other information deemed appropriate by the committee.16
(4) No later than February 15, 2011 and every year thereafter, the17
committee shall report the findings of each review to the speaker of the House18
of Representatives, the president of the Senate, the governor, the commissioner19
of administration, and the chairman of the Commission on Streamlining20
Government. Such report shall include findings regarding a policy21
determination as to the appropriate apportionment of funding between the22
general public and the user group for the activity and whether the fee is set at23
the appropriate amount to fund in whole, or in part, the activity.24
(5) In the event the committee finds that the fee is not set at the25
appropriate amount, the head of the agency shall have sixty days to provide a26
response to the committee on actions planned or taken to address the finding.27
E. Each agency that charges fees which are part of a budget unit's28
operating budget in the General Appropriation Bill shall post on its website the29 SB NO. 299
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data and information used to calculate the fee and the method of calculation.1
The agency shall also post any audits regarding the fee as well as any review and2
findings of the committee.3
Section 2. This Act shall become effective on July 1, 2010.4
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Dawn Romero Watson.
DIGEST
Proposed law provides that beginning with budget preparation for the Fiscal Year 2011-
2012, the division of administration for the executive departments and agencies and the
Board of Regents for higher education agencies shall develop a "cost recovery" budget
request form. The form shall require the budget unit to:
(1)List all the fees authorized for collection by the budget unit that are requested to be
in the General Appropriation Bill as part of the agency's operating budget.
(2)Indicate prior fiscal year's actual revenue generated from fees as well as actual
expenditures associated with providing the service or performing the activity.
(3)Indicate current fiscal year's budget authority and anticipated expenditures.
(4)Indicate the budget unit's request for the next fiscal year's budget authority and
projected expenditures.
(5)Provide a summary description of the service or activity funded by the fee and the
legal authority for the fee.
(6)Provide any performance indicator data associated with that service or activity.
(7)Provide historical data on revenue generated and expenditures.
(8)Provide a recommendation on apportionment of funding between the state and the
particular user group.
Proposed law provides that "expenses" for purposes of proposed law shall include both direct
and indirect cost associated with providing the service or performing the activity.
Present budget request forms include BR-6 and BR-6(a), (b) and (s) which include a listing
of fees collected by the budget unit, along with a column to provide actual collections in the
previous fiscal year, budgeted authority for collections for the current fiscal year and
requested budget authority for the next fiscal year. Such forms also include three years of
historical data, a summary description of the fee and the activities supported with the fee.
Proposed law provides that the division of administration or Board of Regents modify the
current budget request forms to be the new cost recovery form.
Present law requires the budget office in the division of administration to prescribe the
budget request forms to be used by each budget unit and transmit such form to budget units
on or before September 20
th
each year. Requires the budget office to include instructions
and provide consultation to the budget units. Present law provides an exception for higher
education budget units whereby the Board of Regents provides the forms, instructions and
consultation. SB NO. 299
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Proposed law requires that cost recovery forms be included and be part of the official budget
request from the budget unit.
Proposed law requires the head of each budget unit or the Board of Regents simultaneous
with submission of their budget request to the governor shall submit to the Commission on
Streamlining Government their completed cost recovery forms.
Proposed law provides that if any budget unit fails to submit completed cost recovery forms,
the provision of law relative to delinquent budgets shall be applicable.
Proposed law provides that the division of administration shall establish a procedure for
periodic review, analysis and evaluation that fees established to fund specific activities are
generating funding in direct proportion to expenditures associated with such activity.
Proposed law provides that beginning October 1, 2010, and every year thereafter, the
division of administration shall develop a plan and schedule for the review of fees. The plan
and schedule shall be submitted to the Joint Legislative Committee on the Budget for its
review and approval.
Proposed law provides that each plan and schedule shall provide for the review of not more
than 25% of the fees. Requires that a fee shall be reviewed at least once in a time period of
five years.
Proposed law requires that the Joint Legislative Committee on the Budget conduct a review
of the fees as specified in the plan and schedule. The review may include the division of
administration's evaluation and any other information deemed appropriate by the committee.
Proposed law provides that no later than February 15, 2011, and every year thereafter, the
committee shall report the findings of each review to the speaker of the House of
Representatives, the president of the Senate, the governor, the commissioner of
administration and the chairman of the Commission on Streamlining Government. The
report shall include findings regarding a policy determination as to the appropriate
apportionment of funding between the general public and the user group for the activity and
whether the fee is set at the appropriate amount to fund in whole, or in part, the activity.
Proposed law provides that in the event the committee finds that the fee is not set at the
appropriate amount, the head of the agency shall have 60 days to provide a response to the
committee on actions planned or taken to address the finding.
Proposed law provides each agency that charges fees which are part of a budget unit's
operating budget in the General Appropriation Bill shall post on its website the data and
information used to calculate the fee and the method of calculation. The agency shall also
post any audits regarding the fee as well as any review and findings of the committee.
Effective July 1, 2010.
(Adds R.S. 49:200.2)