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Regular Session, 2012
HOUSE BILL NO. 937
BY REPRESENTATIVES ROBIDEAUX, ADAMS, BARRAS, WESLEY BI SHOP,
BROADWATER, BURFORD, GUILLORY, HAZEL, HOFFMANN, LORUSSO,
AND THIBAUT
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 1950,9
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 ENGROSSED
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(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 sixty 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 ENGROSSED
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(9) "Secretary" means the secretary of the Department of Economic1
Development.2
(10) "Significant positive economic benefit" means that net positive tax3
revenues are to be generated as a result of the project. This shall be determined by4
taking into account direct, indirect, and induced impacts based on a standard5
economic impact methodology utilized by the department, the value of the rebate,6
and any other state tax and financial incentives that are used by the department to7
secure the qualified business.8
(11) "State" means the state of Louisiana.9
§3112. Eligibility requirements10
A business shall be eligible to participate in the program if it determines all11
of the following requirements are met:12
(1) The business is relocating a headquarters to the state, or is expanding a13
headquarters in the state.14
(2) The secretary determines that participation in the program will be a15
significant factor in a highly competitive site selection situation to encourage the16
business to relocate or expand the headquarters in the state.17
(3) The secretary determines that securing the project will result in a18
significant positive economic benefit to the state.19
(4) Relocation or expansion of the headquarters will create a minimum of20
twenty-five headquarters jobs.21
§3113. Application; recommendation; approval22
A. At the invitation of the secretary, a business may apply for participation23
in the program by submitting to the department certified statements and24
substantiating documents as the department may require.25
B. Upon determining the business meets the eligibility requirements of R.S.26
51:3112, the secretary may request board approval of a contract providing for such27
participation on terms and conditions specified by the secretary.28
C. No new contract shall be approved on or after July 1, 2017.29 HLS 12RS-707 ENGROSSED
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§3114. Contract administration; rebate1
A. Upon approval by the board, the secretary shall execute the contract with2
the business, and provide a copy to the Department of Revenue prior to the payment3
of any rebate under the contract.4
B. The contract shall provide a rebate to the qualified business of twenty-five5
percent of relocation costs and shall include the following provisions:6
(1) The maximum amount of qualifying relocation costs.7
(2) The number of headquarters jobs and associated payroll to be created and8
maintained and any other performance obligations deemed appropriate by the9
secretary.10
(3) The reduction of annual rebate payments if performance obligations are11
not met.12
C. The qualified business shall submit to the department, at least annually13
but no more often than monthly, a certified cost report reasonably documenting its14
relocation costs, including supporting documentation as required by the department.15
D. The rebate shall be payable in equal installments over a five-year period,16
to be paid after the business files an annual certification of performance and the17
department determines the extent of compliance with contractual obligations.18
Annual payments shall be reduced and forfeited for failure to meet performance19
obligations, as provided in the contract. Rebate amounts within the annual limit that20
are not paid in one year may be carried over and paid in a subsequent year, in21
addition to that year's limit.22
E. The department may obtain, at the expense of the qualified business, a23
certified limited scope audit by an independent certified public accountant, in24
accordance with applicable auditing standards generally accepted in the United25
States, of all books and records of the business relating to its eligibility and26
performance obligations under the program.27
F. Upon approval of the application for an annual rebate, the department28
shall send a certification letter to the Department of Revenue for payment of the29 HLS 12RS-707 ENGROSSED
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rebate. The letter shall provide the name of the business and the amount of the1
rebate. The Department of Revenue may require the business to submit any2
additional information as may be necessary to effect the payment of the rebate.3
Payment shall be made from the current collections of the taxes imposed by Title 474
of the Louisiana Revised Statutes of 1950, as amended.5
G. A business shall not receive any other incentive administered by the6
Department of Economic Development for any expenditures for which the business7
has received a rebate pursuant to this Section.8
§3115. Rules9
The department may promulgate rules and regulations after approval by the10
House Committee on Ways and Means and the Senate Committee on Revenue and11
Fiscal Affairs meeting jointly within forty-five days of publication of such rules and12
regulations in the State Register.13
Section 2. This Act shall become effective on July 1, 2012; if vetoed by the governor14
and subsequently approved by the legislature, this Act shall become effective on July 1,15
2012, or on the day following such approval by the legislature, whichever is later.16
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: Authorizes rebates equal to 25% of relocation costs for certain businesses which
relocate or expand a headquarters in La. through the Corporate Headquarters
Relocation Program.
Proposed law creates the Corporate Headquarters Relocation Program under which a
qualified business may contract with the Dept. of Economic Development (DED) to receive
a rebate payment in an amount equal to 25% of the costs to relocate or expand its
headquarters in the state.
Proposed law provides for definitions, which include:
(1)"Relocation costs" means actual costs incurred by the business for the relocation of
a headquarters or the expansion of a headquarters in the state. Costs may include
capital expenditures, leases of facility and equipment, and personnel relocation costs.
Personnel relocation costs may only be claimed in cases of a relocation and are
limited to 60% of headquarters jobs. HLS 12RS-707 ENGROSSED
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(2)"Headquarters" means a principal or regional corporate office located in La., in
which are based the principal or regional executive officers which provide corporate
governance for the business.
(3)"Headquarters jobs" means permanent full-time new executive, administrative, or
professional jobs based at a "headquarters", filled by La. residents, and which 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.
(3)"Qualified business" means a business that the secretary of DED has determined to
meet program eligibility requirements, and has executed a contract with DED
governing its participation in the program.
Proposed law establishes eligibility requirements for the program which include:
(1)The business is relocating a headquarters to La., or is expanding a headquarters in
La.
(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.
(4)Relocation or expansion of the headquarters will create a minimum of 25
headquarters jobs.
Proposed law authorizes the secretary of DED to invite potential businesses to apply for
participation in the program. If DED determines that the business meets the eligibility
requirements, the secretary may request the Board of Commerce and Industry to approve a
contract to provide for the rebate to the business; however, no contract shall be approved on
or after July 1, 2017.
Proposed law authorizes the secretary of DED to enter a the contract with the business and
requires that the Dept. of Revenue be notified of the contract.
Proposed law provides requirements for the contract, which include the maximum amount
of qualifying relocation costs, the relevant number of headquarters jobs, and provisions for
reductions in rebate payments if performance obligations are not met.
Proposed law requires the submission of certain reports by the business.
Proposed law establishes the procedure for the payment of a rebate. DED is required to send
a certification letter to the Dept. of Revenue which reflects the name and amount of payment
for each business. Rebates shall be paid from the taxes collected by the Dept. of Revenue
under present law. The rebate is payable in equal installments over a five-year period.
Annual payments shall be reduced for failure to meet performance obligations.
Proposed law authorizes DED to obtain audits at the expense of the business.
Proposed law prohibits a business participating in the program established by proposed law
from receiving any other incentive administered by the DED for any expenditures for which
it has received a rebate pursuant to this program.
Proposed law authorizes DED to promulgate rules and regulations subject to approval by the
House Committee on Ways and Means and Senate Committee on Revenue and Fiscal HLS 12RS-707 ENGROSSED
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Affairs. The committees are required to meet within 45 days of the rules or regulations
being published in the State Register.
Effective July 1, 2012.
(Adds R.S. 51:3111-3115)
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Ways and Means to the
original bill.
1. Changed the percentage of eligible costs for personnel relocation for
headquarters jobs from 40% to 60%.
2. Added definition of "significant positive economic benefit".
3. Added limitation that no contract shall be approved on or after July 1, 2017.
4. Added requirement that DED provide the Dept. of Revenue with the name of
each rebate recipient and the amount of the rebate.
5. Changed the source of money for the payments from income and franchise tax
collections to any taxes collected by the Dept. of Revenue.
6. Added, for purposes of legislative oversight of rules, the requirement that the
House and Senate committees meet within 45 days of a rule or regulation being
published in the State Register.