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Regular Session, 2011
SENATE RESOLUTION NO. 110
BY SENATOR HEITMEIER
SENATE. Requires prefiling by January 15 of any legislative instrument which produces
a net decrease in taxes, fees, charges or other revenues received by the state of $10 million
or more annually in any one of the 5 fiscal years; a report by the proponents on the
instrument's economic effects; and a review of such report by the legislative fiscal office.
A RESOLUTION1
To amend and readopt Senate Rule Nos. 9.1 and 13.95 and to adopt Senate Rule No. 7.14.12
of the Rules of Order of the Senate, relative to the prefiling of certain revenue loss3
legislative instruments and the requirement for and preparation of revenue loss notes.4
BE IT RESOLVED that the Senate of the Legislature of Louisiana amends and5
readopts Senate Rule Nos. 9.1 and 13.95 and adopts Senate Rule No. 7.14.1 of the Rules of6
Order of the Senate to read as follows:7
Rule 9.1. Time of prefiling; written consent of author8
A.(1) At any time between regular sessions, but no later than ten days before the9
beginning of a regular session for joint resolutions proposing a constitutional amendment,10
or no later than five o'clock in the evening of the forty-fifth calendar day prior to the first day11
of a regular session for bills relative to retirement, or no later than five o'clock in the evening12
of the tenth calendar day prior to the first day of a regular session for all other bills, senators13
may prefile with the Secretary legislative instruments that are proposed for introduction at14
the next session. However, no instrument shall be prefiled between final adjournment of the15
last regular session of a legislative term and promulgation of the returns of the general16
election for members of the legislature for the next succeeding term. After the promulgation17 SR NO. 110
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of the election returns, any member-elect may prefile instruments for introduction at the next1
regular session.2
(2) Notwithstanding the provisions of Subparagraph 1 of this Paragraph, any3
legislative instrument which is likely to cause a net decrease in taxes, fees, charges or4
other revenue of the state, or of a political subdivision of the state whose boundaries are5
coterminous with those of the state, of ten million dollars or more in any one of the five6
ensuing fiscal years from its effective date, shall be filed on or before January 15 with7
the report required by Senate Rule 7.14.1 attached.8
* * *9
Rule 7.14.1. Revenue loss notes10
A. Any legislative instrument which produces a net decrease in taxes, fees,11
charges or other revenues received by the state, or by a political subdivision of the state12
whose boundaries are coterminous with those of the state, of ten million dollars or more13
in any one of the five ensuing fiscal years from the instrument's effective date shall be14
filed with the following report attached to the instrument prepared by the author, or15
by a proponent of the instrument on the author's behalf, relative to the economic effects16
of the enactment of the legislative instrument:17
(1) The total decrease in taxes, fees, charges or other revenue estimated over the18
five ensuing fiscal years from the instrument's effective date.19
(2) The state's revenue loss ratio; that is, the amount of money to be gained by20
the state compared to the cost of the benefit granted.21
(3) The effect on household earnings, employment, and value added in22
Louisiana.23
(4) An indication of which beneficial economic actions will be incentivized by the24
instrument.25
(5) Data indicating whether the same or similar instruments have been enacted26
in other states or territories of the United States or other nations.27
(6) The methodology and assumptions utilized to produce the information in the28
report.29 SR NO. 110
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B.(1) Upon filing of the legislative instrument with the report required by this1
Rule attached, the Secretary of the Senate shall transmit a copy of the report to the2
Department of Revenue and to the legislative fiscal office.3
(2) The legislative fiscal office with the assistance of the Department of Revenue4
shall review the report. The review shall encompass all aspects of the report including,5
but not limited to the following:6
(a) The reasonableness of the revenue loss estimates.7
(b) A reference to the legislative fiscal office's estimate of the state's revenue loss8
expected from the enactment of the legislative instrument in the fiscal note prepared9
for the instrument.10
(c) The validity, credibility, or reasonableness of the information in the report11
or the methodology and assumptions utilized to produce the information, or questions12
raised by such information or methodology.13
(d) Whether the actions being incentivized are already occurring without the14
enactment of the instrument.15
(e) A report and review by the Department of Revenue of the data in the report16
and from other sources as to whether the same or similar instruments have been17
enacted in other states or territories of the United States or other nations.18
(f) Any other information not included in the report which may have a bearing19
on the question of whether the legislative instrument should be enacted.20
C.(1) In addition to the fiscal note prepared in accordance with Joint Rule No.21
4, the legislative fiscal office shall prepare a revenue loss note which sets forth a brief22
and concise summary of the results of its review, with the assistance of the Department23
of Revenue, of the report attached to the legislative instrument as provided for in24
Paragraph (B) of this Rule. Any legislative instrument which produces a net decrease25
in taxes, fees, charges or other revenues received by the state, or by a political26
subdivision of the state whose boundaries are coterminous with those of the state, of ten27
million dollars or more annually in any one of the five ensuing fiscal years from the28
instrument's effective date shall have attached to it prior to its consideration by any29 SR NO. 110
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committee of the Senate, unless the committee otherwise decides, and prior to its1
consideration on final passage by the Senate, the revenue loss note prepared by the2
legislative fiscal office as provided for in this Rule. In addition, the President of the3
Senate, the Secretary of the Senate, or any Senator may offer a motion at any time that4
a legislative instrument requiring a revenue loss note without such a note attached be5
deferred until the preparation of such revenue loss note.6
(2) However, nothing in this Rule shall require the preparation of a revenue loss7
note by the legislative fiscal office for an instrument not prefiled as required in Senate8
Rule 9.1(A)(2), or for an instrument filed without the report required by this Rule9
attached, to take precedence over the preparation of any fiscal note required by Joint10
Rule No. 4 or revenue loss note of an instrument properly prefiled with the report11
attached. The preparation of such revenue loss note may take place after the conclusion12
of the session in which the legislative instrument was introduced.13
D. A revenue loss note shall not constitute a part of the law proposed by the14
legislative instrument to which it is attached.15
* * *16
Rule 13.95. Permanent committee records; disposition17
A. The permanent records of the committee shall include the audio tapes and18
minutes of each meeting and a file on each instrument received by the committee. The file19
on each instrument shall include a copy of the original instrument; a copy of committee20
amendments proposed by any member, whether or not adopted, and the disposition thereof;21
a copy of any fiscal note, actuarial note, revenue loss note, or notice attached to an22
instrument at the time of committee consideration; all prepared statements filed with the23
committee chairman by members or interested parties; the minutes of the public hearing held24
on the instrument and of the meeting at which the committee report thereon was decided;25
and a copy of the committee report thereon.26
* * *27 SR NO. 110
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The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Riley Boudreaux.
DIGEST
Heitmeier SR No.
110Present Senate Rule [No. 9.1] contains the constitutional requirement that constitutional
amendments be prefiled no later than 10 days before the beginning of a regular session, and
that bills relative to retirement be prefiled 45 days prior to a regular session.
Proposed Senate Rule requires any legislative instrument which is likely to cause a net
decrease in taxes, fees, charges or other revenue of the state of $10 million or more in any
one of the 5 ensuing fiscal years from its effective date to be filed on or before January 15
th
with the report required below attached.
Proposed Senate Rule requires any legislative instrument which is likely to cause a net
decrease in taxes, fees, charges or other revenue of the state of $10 million or more in any
one of the 5 ensuing fiscal years from its effective date to be filed with a report prepared by
the author of the instrument, or by a proponent of the instrument on the author's behalf,
relative to the economic effects of the enactment of the legislative instrument.
The LFO with the assistance of the Department of Revenue [DOR] is required to review the
report and prepare a "revenue loss note" which sets forth a brief and concise summary of the
results of its review of the economic effects report.
The "revenue loss note" must be attached to any legislative instrument which produces a net
decrease in state revenues of $10 million or more in any one of the 5 ensuing fiscal years
from its effective date prior to its consideration by any committee of the Senate, unless the
committee otherwise decides, and prior to its consideration on final passage by the Senate.
In addition, the President of the Senate, the Secretary, or any Senator may offer a motion at
any time that a legislative instrument requiring the revenue loss note without such a note
attached be deferred until the preparation of such revenue loss note.
However, the proposed Senate Rule provides that the preparation of a revenue loss note by
the LFO for an instrument not prefiled as required in the proposed Senate Rule, or for an
instrument filed without the report required by the proposed Senate Rule attached, must not
take precedence over the preparation of any fiscal note or revenue loss note of an instrument
properly prefiled with the report attached. The preparation of such revenue loss note may
take place after the conclusion of the session in which the legislative instrument was
introduced.
Proposed Senate Rule requires the economic effects report attached to the instrument to
contain the following:
(1)The total decrease in taxes, fees, charges or other revenue estimated over the 5
ensuing fiscal years from the instrument's effective date.
(2)The state's revenue loss ratio; that is, the amount of money to be gained by the state
compared to the cost of the benefit granted.
(3)The effect on household earnings, employment, and value added in Louisiana.
(4)An indication of which beneficial economic actions will be incentivized by the
instrument.
(5)Data indicating whether the same or similar instruments have been enacted in other
states or territories of the United States or other nations. SR NO. 110
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(6)The methodology and assumptions utilized to produce the information in the report.
The LFO's review of the economic effects report attached to the instrument must encompass
all aspects of the report including, but not limited to the following:
(1)The reasonableness of the revenue loss estimates.
(2)A reference to the legislative fiscal office's estimate of the state's revenue loss
expected from the enactment of the legislative instrument in the fiscal note prepared
for the instrument.
(3)The validity, credibility, or reasonableness of the information in the report or the
methodology and assumptions utilized to produce the information, or questions
raised by such information or methodology.
(4)Whether the actions being incentivized are already occurring without the enactment
of the instrument.
(5)A report and review by the Department of Revenue of the data in the report and from
other sources as to whether the same or similar instruments have been enacted in
other states or territories of the United States or other nations.
(6)Any other information not included in the report which may have a bearing on the
question of whether the legislative instrument should be enacted.
(Amends Senate Rule Nos. 9.1 and 13.95; adds Senate Rule No. 7.14.1 )