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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. 39:32(L) and R.S. 49:308.6, relative to state government services; to provide2
for a cost recovery budget request form; to provide for distribution of the form; to3
provide for an annual evaluation of certain fees; to provide relative to the4
development of a plan and schedule relative to the review of fees; to provide for an5
annual review and report of the findings of such review; to provide for an effective6
date; and to provide for related matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1. R.S. 39:32(L) is hereby enacted to read as follows: 9
§32. Budget request contents10
* * *11
L.(1)(a) Beginning with budget preparation for the Fiscal Year 2011-12
2012 budget, the division of administration shall develop a "cost recovery"13
budget request form to be completed by each budget unit in the executive14
branch of state government, except those in higher education agencies in which15
case the Board of Regents shall develop such form.16
(b) Such form shall require the budget unit to:17 SB NO. 299
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(i) List all fees authorized for collection by the budget unit that are1
requested to be appropriated in the General Appropriation Bill as part of the2
unit's operating budget.3
(ii) Report the prior fiscal year's actual revenue generated from fees as4
well as actual expenditures associated with providing the service or performing5
the activity. Report the current fiscal year's budget authority and anticipated6
expenditures. Report the next fiscal year's requested budget authority and7
projected expenditures.8
(iii) Provide a summary description of service or activity funded by the9
fee and the legal authority for the fee.10
(iv) Include performance indicator data associated with the service or11
activity.12
(v) Provide historical data on revenue generated and expenditures.13
(vi) Provide a recommendation on apportionment of funding between14
the state and the particular user group.15
(c) For purposes of this Section, "expenses" shall include both direct and16
indirect cost associated with providing the service or performing the activity.17
(d) The division of administration and Board of Regents may modify the18
current Budget Request Form No. 6, 6(a), (b) and (s) or a similar form reporting19
means of finance other than state general fund to be the cost recovery form20
required by this Section.21
(e) Guidelines for completing the cost recovery form shall be included22
in the annual instructions provided by the division of administration or Board23
of Regents to the budget units. In addition, the cost recovery form shall be24
included in and considered a part of the official documents of the budget unit's25
budget request.26
(2)(a) The meaning of terms used in this Section, the creation of budget27
form, the distribution of the form, and inclusion in the budget unit's official28
budget request and distribution thereof shall be consistent with the provisions29 SB NO. 299
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of Subpart A of Part II of Chapter I of Subtitle I of Title 39 of the Louisiana1
Revised Statutes of 1950.2
(b) In addition, the head of each budget unit or the Board of Regents3
simultaneous with submission of their budget request to the governor shall4
submit to the Commission on Streamlining Government their completed cost5
recovery forms on services and activities performed by their budget units.6
(3) If any budget unit fails to submit completed cost recovery forms as7
required by this Section, R.S. 39:33(B) shall be applicable.8
Section 2. R.S. 49:308.6 is hereby enacted to read as follows:9
§308.6. State government fees for services and activities; cost recovery10
A.(1) The division of administration shall establish a procedure for11
periodic review, analysis, and evaluation that fees established to fund specific12
activities are generating funding in direct proportion to expenditures associated13
with such activity.14
(2) The review, analysis, and evaluation shall include historical data and15
trends. It shall specifically look at revenue generated through the fee,16
expenditures incurred for the activity, the ratio of revenue to expenditures, the17
units of service and annual cost per unit of service. It may include any other18
information deemed relevant and appropriate by the commissioner of19
administration.20
B.(1) Beginning October 1, 2010, and every year thereafter, the division21
of administration shall develop a plan and schedule for the review of fees. The22
plan and schedule shall be submitted to the Joint Legislative Committee on the23
Budget for its review and approval. The plan may be adjusted annually as24
needed.25
(2) Each plan and schedule shall provide for the review of not more than26
twenty-five percent of the fees. The plan and schedule shall specify the fees that27
are to be reviewed. A fee shall be reviewed at least once in a time period of five28
years.29 SB NO. 299
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(3) The Joint Legislative Committee on the Budget, hereinafter referred1
to as "the committee", shall conduct a review of the fees as specified in such2
plan and schedule. Such review may include the division of administration's3
evaluation and any other information deemed appropriate by the committee.4
(4) No later than February 15, 2011 and every year thereafter, the5
committee shall report the findings of each review to the speaker of the House6
of Representatives, the president of the Senate, the governor, the commissioner7
of administration, and the chairman of the Commission on Streamlining8
Government. Such report shall include findings regarding a policy9
determination as to the appropriate apportionment of funding between the10
general public and the user group for the activity and whether the fee is set at11
the appropriate amount to fund in whole, or in part, the activity.12
(5) In the event the committee finds that the fee is not set at the13
appropriate amount, the head of the agency shall have sixty days to provide a14
response to the committee on actions planned or taken to address the finding.15
C. Each agency that charges fees which are part of a budget unit's16
operating budget in the General Appropriation Bill shall post on its website the17
data and information used to calculate the fee and the method of calculation.18
The agency shall also post any audits regarding the fee as well as any review and19
findings of the committee.20
Section 3. This Act shall become effective on July 1, 2010.21
The original instrument was prepared by Dawn Romero Watson. The
following digest, which does not constitute a part of the legislative
instrument, was prepared by Martha Hess.
DIGEST
Donahue (SB 299)
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, as part of the existing budget request content supporting the budget
development process. The form shall require the budget units to:
(1)List all the fees authorized for collection by the budget unit that are requested to be SB NO. 299
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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.
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. SB NO. 299
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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. 39:32(L) and R.S. 49:308.6)
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Finance to the original
bill.
1. Deletes paragraph on legislative intent.
2. Incorporates the "cost recovery" budget request forms into the existing
budget development process.
3. Technical amendments.