HLS 12RS-707 ORIGINAL
Page 1 of 6
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2012
HOUSE BILL NO. 937
BY REPRESENTATIVE ROBIDEAUX
TAX/TAX REBATES: Creates the Corporate Headquarters Relocation Program which
authorizes a rebate for certain costs related to the relocation of certain corporate
headquarter projects
AN ACT1
To enact Chapter 54 of Title 51 of the Louisiana Revised Statutes of 1950, to be comprised2
of R.S. 51:3111 through 3115, relative to the creation of a Corporate Headquarters3
Relocation Program; to authorize contracts with businesses that relocate or expand4
a headquarters in the state; to provide for the content and approval of contracts; to5
provide for the authority of the Department of Economic Development; to provide6
for an effective date; and to provide for related matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1. Chapter 54 of Title 51 of the Louisiana Revised Statutes of 1950, to be9
comprised of R.S. 51:3111 through 3115 is hereby enacted to read as follows: 10
CHAPTER 54. CORPORATE HEADQUARTERS RELOCATI ON PROGRAM11
§3111. Definitions12
The following words or terms as used in this Chapter shall have the following13
meaning, unless a different meaning appears from the context:14
(1) "Board" means the Board of Commerce and Industry.15
(2) "Business" means any individual, firm, joint venture, association,16
corporation, estate, partnership, business trust, receiver, syndicate, or any other legal17
business entity.18 HLS 12RS-707 ORIGINAL
HB NO. 937
Page 2 of 6
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(3) "Department" means the Department of Economic Development unless1
otherwise designated.2
(4) "Headquarters jobs" means permanent full-time new executive,3
administrative, or professional jobs based at a headquarters and filled by residents4
of the state employed by a qualified business, and each job paying at least sixty5
thousand dollars per year or two hundred percent of the average annual wages paid6
by employers subject to the Louisiana Employment Security Law in the parish in7
which the headquarters is located, whichever is lower.8
(5) "Headquarters" means a principal or regional corporate office located or9
to be located in Louisiana, in which are based the principal or regional executive10
officers normally constituting a principal or regional headquarters providing11
corporate governance. Such officers include but are not limited to chief executive12
officer, chief operating officer, and other senior level officers or appropriate regional13
equivalents.14
(6) "Program" means the Corporate Headquarters Relocation Program15
established pursuant to this Chapter.16
(7) "Qualified business" means a business that (a) the secretary has17
determined meets the eligibility requirements of R.S.51:3112, (b) has been approved18
by the board to participate in the program, and (c) has executed a contract with the19
department governing its participation in the program.20
(8) "Relocation costs" means actual, direct, and substantiated costs incurred21
by the qualified business to relocate a headquarters to the state, including capital22
expenditures and leasing costs for a facility and equipment, and personnel relocation23
costs. Personnel relocation costs shall be limited to costs associated with no more24
than forty percent of headquarters jobs. Relocation costs shall also include capital25
expenditures and leasing costs for expansion of a headquarters facility in the state,26
excluding personnel relocation costs. Qualifying relocation costs shall be limited to27
the maximum amount provided by the contract executed pursuant to this Chapter.28 HLS 12RS-707 ORIGINAL
HB NO. 937
Page 3 of 6
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(9) "Secretary" means the secretary of the Department of Economic1
Development.2
(10) "State" means the state of Louisiana.3
§3112. Eligibility requirements4
A business shall be eligible to participate in the program if it determines all5
of the following requirements are met:6
(1) The business is relocating a headquarters to the state, or is expanding a7
headquarters in the state.8
(2) The secretary determines that participation in the program will be a9
significant factor in a highly competitive site selection situation to encourage the10
business to relocate or expand the headquarters in the state.11
(3) The secretary determines that securing the project will result in a12
significant positive economic benefit to the state.13
(4) Relocation or expansion of the headquarters will create a minimum of14
twenty-five headquarters jobs.15
§3113. Application; recommendation; approval16
A. At the invitation of the secretary, a business may apply for participation17
in the program by submitting to the department certified statements and18
substantiating documents as the department may require.19
B. Upon determining the business meets the eligibility requirements of R.S.20
51:3112, the secretary may request board approval of a contract providing for such21
participation on terms and conditions specified by the secretary.22
§3114. Contract administration; rebate23
A. Upon approval by the board, the secretary shall execute the contract with24
the business, and provide a copy to the Department of Revenue.25
B. The contract shall provide a rebate to the qualified business of twenty-five26
percent of relocation costs, and shall include the following provisions:27
(1) The maximum amount of qualifying relocation costs.28 HLS 12RS-707 ORIGINAL
HB NO. 937
Page 4 of 6
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(2) The number of headquarters jobs and associated payroll to be created and1
maintained, and any other performance obligations deemed appropriate by the2
secretary.3
(3) The reduction of annual rebate payments if performance obligations are4
not met.5
C. The qualified business shall submit to the department, at least annually6
but no more often than monthly, a certified cost report reasonably documenting its7
relocation costs, including supporting documentation as required by the department.8
D. The rebate shall be payable in equal installments over a five year period,9
to be paid after the business files an annual certification of performance and the10
department determines the extent of compliance with contractual obligations.11
Annual payments shall be reduced and forfeited for failure to meet performance12
obligations, as provided in the contract. Rebate amounts within the annual limit that13
are not paid in one year may be carried over and paid in a subsequent year, in14
addition to that year's limit.15
E. The department may obtain, at the expense of the qualified business, a16
certified limited scope audit by an independent certified public accountant, in17
accordance with applicable auditing standards generally accepted in the United18
States, of all books and records of the business relating to its eligibility and19
performance obligations under the program.20
F. The department shall notify the Department of Revenue of the amount of21
the annual rebate payment that is due. The Department of Revenue shall pay the22
rebate from current collections of income and franchise taxes.23
G. A taxpayer shall not receive any other incentive administered by the24
Department of Economic Development for any expenditures for which the taxpayer25
has received a credit pursuant to this Section.26
§3115. Rules27
The department may promulgate rules and regulations in accordance with the28
Administrative Procedure Act as necessary to implement the provisions of this29 HLS 12RS-707 ORIGINAL
HB NO. 937
Page 5 of 6
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Chapter. Rules and regulations promulgated pursuant to this Chapter shall only be1
subject to oversight by the House Committee on Ways and Means and the Senate2
Committee on Revenue and Fiscal Affairs.3
Section 2. This Act shall become effective on July 1, 2012; if vetoed by the governor4
and subsequently approved by the legislature, this Act shall become effective on July 1,5
2012, or on the day following such approval by the legislature, whichever is later.6
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Robideaux HB No. 937
Abstract: Creates the Corporate Headquarters Relocation Program which grants to a
qualified business a contract to receive a relocation rebate of 25% of relocation costs
to relocate or expand its headquarters in La.
Proposed law creates the Corporate Headquarters Relocation Program which grants to a
"qualified business" a contract to receive relocation rebate of up to 25% of "relocation costs"
to relocate or expand its "headquarters" in a location within Louisiana.
"Relocation costs" is defined as actual, direct and substantiated costs incurred by the
qualified business to relocate a headquarters to the state, including capital expenditures and
leasing costs for a facility and equipment, and personnel relocation costs. Personnel
relocation costs are limited to costs associated with no more than 40% of headquarters jobs.
Relocation costs also include capital expenditures and leasing costs for expansion of a
headquarters facility in the state, excluding personnel relocation costs. Relocation costs are
limited to the maximum amount provided by the executed contract.
"Qualified business" is defined as a business that the secretary has determined meets
eligibility requirements, has been approved by the board to participate in the program, and
has executed a contract with the department governing its participation in the program.
A business is eligible to participate in the program if the following criteria are met:
(1)The business is relocating a headquarters to the state, or is expanding a headquarters
in the state. "Headquarters" is defined as a principal or regional corporate office
located or to be located in La., in which are based the principal or regional executive
officers normally constituting a principal or regional headquarters providing
corporate governance. Such officers include the chief executive officer, chief
operating officer, and other senior level officers or appropriate regional equivalents.
(2)The secretary determines that participation in the program will be a significant factor
in a highly competitive site selection situation to encourage the business to relocate
or expand the headquarters in the state.
(3)The secretary determines that securing the project will result in a significant positive
economic benefit to the state. HLS 12RS-707 ORIGINAL
HB NO. 937
Page 6 of 6
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(4)Relocation or expansion of the headquarters will create a minimum of 25
headquarters jobs. "Headquarters jobs" is defined as permanent full-time new
executive, administrative, or professional jobs based at a "headquarters" and filled
by residents of the state employed by a qualified business, that each job pay at least
$60,000 per year or 200% of the average annual wages paid by employers subject
to the La. Employment Security Law in the parish in which the headquarters is
located, whichever is lower.
Proposed law allows a business to apply for the program at the invitation of the secretary of
DED. Once DED determines that the business meets the eligibility requirements of the
program, the secretary may request Board of Commerce and Industry approval of the
contract. The contract must contain the following information:
(1)The maximum amount of qualifying relocation costs.
(2)The number of headquarters jobs and associated payroll to be created and
maintained, and any other performance obligations deemed appropriate by the
secretary.
(3) The reduction of annual rebate payments if performance obligations are not met.
Proposed law requires the qualified business to submit certified cost reports reasonably
documenting relocation costs, including supporting documentation as required by the
department.
Proposed law states that the rebate is payable in equal installments over a five-year period.
Annual payments must be reduced and forfeited for failure to meet performance obligations,
as provided in the contract.
Proposed law allows the department to obtain a certified limited scope audit performed by
an independent CPA at the expense of the qualifying business. The audit shall be performed
in accordance with applicable auditing standards generally accepted in the U.S., of all books
and records of the business relating to its eligibility and performance obligations under the
program.
Proposed law requires DED to notify the Dept. of Revenue of the amount of the annual
rebate payment due.
Proposed law states that a taxpayer who participates in this program is not allowed to receive
any other incentive administered by the DED for any expenditures for which the taxpayer
has received a credit pursuant to this program.
Proposed law allows DED to promulgate rules and regulations necessary for the
implementation of the program. Any such rules or regulations promulgated are subject to
oversight by House Ways and Means and Senate Revenue and Fiscal Affairs only.
Effective July 1, 2012.
(Adds R.S. 51:3111-3115)