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ACT No. 800
Regular Session, 2012
HOUSE BILL NO. 754
BY REPRESENTATIVES ROBIDEAUX, ABRAMSON, ADAMS, ARMES, BADON,
BARRAS, BERTHELOT, BILLIOT, STUART BISHOP, WESLEY BISHOP,
BROADWATER, BROWN, BURFORD, HENRY BURNS, TIM BURNS,
CARMODY, CARTER, CHAMPAGNE, CHANEY, CONNI CK, CROMER,
FANNIN, FOIL, GAROFALO, GISCLAIR, GREENE, GUILLORY, GUINN,
HARRIS, HAZEL, HENSGENS, HOFFMANN, HOLLIS, HOWARD, HUVAL,
JEFFERSON, JOHNSON, KLECKLEY, LAMBERT, LEBAS, LEGER, LEOPOLD,
LIGI, LORUSSO, MILLER, MONTOUCET, ORTEGO, PIERRE, PONTI, POPE,
PYLANT, REYNOLDS, RICHARDSON, RITCHIE, SCHEXNAYDER,
SEABAUGH, SHADOIN, SIMON, ST. GERMAIN, THIBAUT, THOMPSON,
WHITNEY, PATRICK WILLIAMS, AND WILLMOTT AND SENATORS
DORSEY-COLOMB, RISER, AND WALSWORTH
AN ACT1
To enact Subpart R of Part II-A of Chapter 1 of Subtitle I of Title 39 of the Louisiana2
Revised Statutes of 1950, to be comprised of R.S. 39:100.126, and Chapter 3 of3
Subtitle VII of Title 47 of the Louisiana Revised Statutes of 1950, to be comprised4
of R.S. 47:6301, relative to rebates; to authorize contracts for certain state sales and5
use tax rebates; to provide for definitions, requirements, and limitations; to provide6
for the amount, approval, and issuance of rebates; to provide for the recapture of7
rebates under certain circumstances; to provide relative to the payment of certain8
taxes in error; to provide with respect to administrative expenses; to provide for the9
disposition of certain state revenues; to establish the Unfunded Accrued Liability and10
Specialized Educational Institutions Support Fund; to provide for the deposit, use,11
and investment of monies in the fund; to authorize the promulgation of rules and12
regulations; to provide for an effective date; and to provide for related matters.13
Be it enacted by the Legislature of Louisiana:14
Section 1. Subpart R of Part II-A of Chapter 1 of Subtitle I of Title 39 of the15
Louisiana Revised Statutes of 1950, comprised of R.S. 39:100.126, is hereby enacted to read16
as follows: 17 ENROLLEDHB NO. 754
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SUBPART R. UNFUNDED ACCRUED LIABILITY1
AND SPECIALIZED EDUCATIONAL INSTITUTIONS2
SUPPORT FUND3
§100.126. Specialized Educational Institutions Support Fund4
A. There is hereby established in the state treasury a special fund to be5
known as the "Unfunded Accrued Liability and Specialized Educational Institutions6
Support Fund", hereinafter referred to as "fund". The fund shall be composed of two7
accounts: the UAL Account and the Specialized Educational Institutions Account.8
The source of monies for the fund shall be those state revenues deposited into the9
fund pursuant to the requirements of R.S. 47:6301. Monies in the fund shall be10
invested in the same manner as those in the state general fund. Monies remaining11
in the fund at the end of the fiscal year shall be deposited into the UAL Account.12
B. Monies in the fund shall be available for appropriation exclusively for (1)13
payments against the unfunded accrued liability of the public retirement systems14
which are in addition to any payments required for the annual amortization of the15
unfunded accrued liability of the public retirement systems, as required by Article16
X, Section 29(E)(2)(c) of the Constitution of Louisiana; however, any such payments17
to the public retirement systems shall not be used, directly or indirectly, to fund18
cost-of-living increases for such systems and (2) the support of operations of the19
Louisiana Cancer Research Center of L.S.U. Health Sciences Center in New20
Orleans/Tulane Health Sciences Center, the Feist-Weiller Cancer Center of LSU21
Health Sciences Center - Shreveport, the Pennington Biomedical Research Center,22
the Louisiana State University Agricultural Center, and the Southern University23
Agricultural Research and Extension Center. Monies appropriated from the fund24
shall not be used in any fiscal year to displace, replace, or supplant state general fund25
support for these agencies.26
C.(1) Appropriations from the Specialized Educational Institutions Account27
in any fiscal year shall be allocated as provided in this Paragraph; however, in the28
event that the amount available for appropriation in any fiscal year is insufficient to29
provide for such allocations, the amounts allocated shall be reduced proportionately.30 ENROLLEDHB NO. 754
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(a) Five Million Dollars for the Louisiana Cancer Research Center of L.S.U.1
Health Sciences Center in New Orleans/Tulane Health Sciences Center.2
(b) Five Million Dollars for the Feist-Weiller Cancer Center of LSU Health3
Sciences Center - Shreveport.4
(c) Ten Million Dollars for the Louisiana State University Agricultural5
Center.6
(d) Five Million Dollars for the Pennington Biomedical Research Center.7
(e) Five Million Dollars for the Southern University Agricultural Research8
and Extension Center.9
(2) Appropriations from the UAL Account shall be exclusively for10
additional payments against the unfunded accrued liability of the public retirement11
systems as provided in Subsection (B)(1) of this Section.12
Section 2. Chapter 3 of Subtitle VII of Title 47 of the Louisiana Revised Statutes of13
1950, comprised of R.S. 47:6301, is hereby enacted to read as follows: 14
CHAPTER 3. PROCUREMENT PROCESSI NG COMPANY15
REBATE PROGRAM16
§6301. Rebates; contracts for certain state sales and use tax rebates17
A. Definitions. For purposes of this Section, the following words shall have18
the following meanings unless the context clearly indicates otherwise:19
(1) "Affiliated entity" shall mean a person who, directly or indirectly through20
one or more intermediaries, controls or is controlled by or is under common control21
with another person.22
(2) "Department" shall mean the Department of Revenue.23
(3) "New taxable sales" shall mean the sale of goods and services upon24
which state sales and use tax is paid under Title 47 of the Louisiana Revised Statutes25
of 1950 and which would not have occurred in the state but for the operation in the26
state of a procurement processing company. The term "new taxable sales" shall not27
include any sales or purchases of services or property upon which such sales and use28
tax would have been due if the procurement processing company was not operating29
in the state.30 ENROLLEDHB NO. 754
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(4) "Procurement processing company" means a company engaged in1
managing the activities of unrelated purchasing companies.2
(5) "Purchasing company" means a company engaged in the activity of3
selling property and services to affiliated entities.4
(6) "Secretary" shall mean the secretary of the Department of Revenue.5
(7) "Significant positive economic benefit" means that net positive state tax6
revenues are to be generated from the new taxable sales.7
B. Contract. (1) The secretary of the Department of Economic8
Development is authorized to enter into a contract with a procurement processing9
company to recruit to Louisiana, purchasing companies that generate sales of items10
subject to the taxes imposed under this Title the business of which shall have a11
significant positive economic benefit to the state. The initial term of a contract shall12
not exceed twenty years and shall be renewable for up to an additional twenty years.13
The contract shall provide an incentive to the procurement processing company14
which shall be paid in the form of a rebate of a portion of the state sales and use15
taxes collected on new taxable sales by a purchasing company which is managed by16
a procurement processing company.17
(2) The contract shall include a provision whereby the procurement18
processing company expressly acknowledges that if it receives a rebate for new19
taxable sales under the provisions of R.S. 47:6301, in no event shall the taxes on20
such new taxable sales remitted to Louisiana by the purchasing company or affiliated21
entity constitute an overpayment as defined in R.S. 47:1621.22
(3) Any contract between the procurement processing company and a23
purchasing company shall include a provision whereby the parties in such contract24
expressly acknowledge that if the procurement processing company receives a rebate25
for new taxable sales under the provisions of R.S. 47:6301, in no event shall the26
taxes on such new taxable sales remitted to Louisiana by the purchasing company27
or affiliated entity constitute an overpayment as defined in R.S. 47:1621.28
C. Certification of sales. The secretary of the department shall determine the29
amount of incentive rebates to be paid to a procurement processing company30 ENROLLEDHB NO. 754
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pursuant to the contract. Rebate payments shall be based upon the amount of new1
taxable sales which are certified by the secretary.2
D. Payment of rebate.3
(1) Notwithstanding any provision of law to the contrary, the secretary of the4
department shall make the rebate authorized pursuant to the provisions of this5
Section from the state sales tax revenue generated by the new taxable sales occurring6
in this state as a result of the operation of a procurement processing company in7
Louisiana.8
(2) If after a rebate has been paid, the department determines that certain9
items included in the rebate payment did not constitute new taxable sales, the amount10
rebated for those items shall be recaptured by the department from the procurement11
processing company, subject to the prescriptive period set forth in R.S. 47:1561.2.12
(3) Notwithstanding any provision of law to the contrary, if a procurement13
processing company receives a rebate for new taxable sales under the provisions of14
this Section, in no event shall the taxes on such new taxable sales remitted to15
Louisiana by the purchasing company or affiliated entity constitute an overpayment16
as defined in R.S. 47:1621.17
E. The Department of Revenue may promulgate rules and regulations in18
accordance with the provisions of the Administrative Procedure Act as are necessary19
to implement the provisions of this Section.20
F. Administrative expenses. From the collections of new state sales tax21
revenue generated by new taxable sales as a result of the activities of purchasing22
companies pursuant to the provisions of this Section, the secretary of the department23
is authorized to retain an amount necessary to provide for the expenses the24
department shall incur in the administration of the provisions of this Section. Such25
monies are hereby designated to be self-generated revenues of the department.26
G. Disposition of collections resulting from new taxable sales.27
The state sales tax revenues generated as a result of the activities of28
purchasing companies pursuant to this Section which are deposited into the state29 ENROLLEDHB NO. 754
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general fund shall thereafter be disbursed during each fiscal year in the following1
order of priority:2
(1) The payment of rebates to procurement processing companies by the3
secretary of the Department of Revenue in accordance with the provisions of a4
contract, which payments shall be made from current sales tax collections pursuant5
to Paragraph (D)(1) of this Section.6
(2) Retention by the department of amounts necessary to provide for the7
expenses of the department pursuant to the provisions of Subsection F of this8
Section.9
(3) Of the monies remaining after satisfaction of the requirements of10
Paragraphs (1) and (2) of this Subsection as determined by the secretary pursuant to11
Subsection H, the state treasurer is hereby authorized and directed to transfer the12
amount of thirty million dollars, or as much thereof as is available, from the state13
general fund to the Unfunded Accrued Liability and Specialized Educational14
Institutions Support Fund-Specialized Educational Institutions Account, which is15
established pursuant to R.S. 39:100.126. Each fiscal year, the transfer shall occur as16
soon as is practicable, upon notification by the secretary of the Department of17
Revenue that revenues sufficient to provide for this distribution have been deposited18
into the treasury.19
(4) Of the monies remaining after satisfaction of the requirements of20
Paragraphs (1) through (3) of this Subsection as determined by the secretary pursuant21
to Subsection H, the state treasurer is hereby authorized and directed to transfer from22
the state general fund to the Unfunded Accrued Liability and Specialized23
Educational Institutions Support Fund-UAL Account an amount equal to ten percent24
of the total remaining state sales tax revenues collected in and attributable to that25
fiscal year as a result of the activities of purchasing companies. The transfer shall26
occur no later than August tenth of each year.27
H. The availability of monies necessary to comply with the provisions of28
Subsection G shall be evidenced by the amount of state sales tax revenue generated29
by the new taxable sales upon which a rebate has been paid pursuant to this Section.30 ENROLLEDHB NO. 754
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The secretary is authorized and directed to estimate the amount of taxes which have1
been deposited into the state general fund as a result of such new taxable sales.2
Upon request, the secretary shall provide written notification to the state treasurer as3
to the amount of money available for the making of deposits as required by this4
Subsection.5
Section 3. This Act shall become effective on July 1, 2012; if vetoed by the governor6
and subsequently approved by the legislature, this Act shall become effective on July 1,7
2012, or on the day following such approval by the legislature, whichever is later.8
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: