Louisiana House Bill HB937

Louisiana 2012 Regular Session

• Introduced: 3/12/12
• Refer: 3/12/12
• Report Pass: 3/27/12
• Engrossed: 4/4/12
• Refer: 4/9/12
• Report Pass: 5/7/12
• Refer: 5/8/12
• Report Pass: 5/10/12
• Enrolled: 5/29/12
• Chaptered: 6/5/12
• Passed: 6/5/12

Caption

Creates the Corporate Headquarters Relocation Program which authorizes a rebate for certain costs related to the relocation of certain corporate headquarter projects (EN DECREASE GF RV See Note)

Impact

The bill is expected to foster economic development by attracting new corporate headquarters to Louisiana, which could lead to significant job creation and economic benefits for the state. It outlines detailed eligibility requirements for businesses, such as demonstrating that relocation is a significant factor in securing the project and providing substantial economic benefits. By defining 'significant economic benefit' as net positive tax revenue, it aligns the program's goals with the state’s financial interests.

Summary

House Bill 937 establishes the Corporate Headquarters Relocation Program in Louisiana, aimed at incentivizing businesses to relocate or expand their headquarters in the state. The program offers financial rebates for relocation costs incurred by qualified businesses that create a minimum of 25 permanent full-time jobs paying at least $60,000 annually. The Department of Economic Development is tasked with implementing this program, including determining eligibility and contracts with businesses that meet specific criteria for participation.

Sentiment

Overall, the sentiment surrounding HB 937 is supportive from many sectors, especially among proponents who view it as a critical tool for state economic growth and competitiveness. Business leaders and economic advocates likely express optimism about the potential for job creation and increased revenues. However, there may also be concerns regarding the overall fiscal impact and effectiveness of such programs, highlighting the need for careful considerations in contract approvals and administrative oversight.

Contention

Notable points of contention regarding the bill include concerns about the program's sustainability and the potential for inequitable distribution of benefits. Critics argue that rebates should be scrutinized to ensure they translate into real growth rather than incentivizing relocating jobs without net gains in employment. Moreover, the exclusion of businesses engaged in gaming or gambling from eligibility has raised discussions about fairness and opportunities in the economic landscape.