ENROLLED
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Regular Session, 2012
HOUSE BILL NO. 937
BY REPRESENTATIVES ROBIDEAUX, ADAMS, BARRAS, WESLEY BISHOP,
BROADWATER, BURFORD, GUILLORY, HAZEL, HOFFMANN, LORUSSO,
AND THIBAUT
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
meanings, unless a different meaning appears from the context:14
(1) "Business" means any individual, firm, joint venture, association,15
corporation, estate, partnership, business trust, receiver, syndicate, or any other legal16
business entity.17
(2) "Department" means the Department of Economic Development unless18
otherwise designated.19
(3) "Headquarters jobs" means permanent full-time new executive,20
administrative, or professional jobs based at a headquarters and filled by residents21 ENROLLEDHB NO. 937
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of the state employed by a qualified business, and each job paying at least sixty1
thousand dollars per year or two hundred percent of the average annual wages paid2
by employers subject to the Louisiana Employment Security Law in the parish in3
which the headquarters is located, whichever is lower.4
(4) "Headquarters" means a principal or regional corporate office located or5
to be located in Louisiana, in which are based the principal or regional executive6
officers normally constituting a principal or regional headquarters providing7
corporate governance. Such officers include but are not limited to chief executive8
officer, chief operating officer, and other senior level officers or appropriate regional9
equivalents.10
(5) "Program" means the Corporate Headquarters Relocation Program11
established pursuant to this Chapter.12
(6) "Qualified business" means a business that (a) the secretary has13
determined meets the eligibility requirements of R.S. 51:3112, (b) has been approved14
by the Joint Legislative Committee on the Budget to participate in the program, and15
(c) has executed a contract with the department governing its participation in the16
program.17
(7) "Relocation costs" means actual, direct, and substantiated costs incurred18
by the qualified business to relocate a headquarters to the state, including capital19
expenditures and leasing costs for a facility and equipment, and personnel relocation20
costs; provided that such personnel relocation costs shall not include any real estate21
commission in excess of six percent, but such limit shall not prevent a real estate22
commission less than six percent. Personnel relocation costs shall be limited to costs23
associated with no more than sixty percent of headquarters jobs. Relocation costs24
shall also include capital expenditures and leasing costs for expansion of a25
headquarters facility in the state, excluding personnel relocation costs. Qualifying26
relocation costs shall be limited to the maximum amount provided by the contract27
executed pursuant to this Chapter.28
(8) "Secretary" means the secretary of the Department of Economic29
Development.30 ENROLLEDHB NO. 937
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(9) "Significant economic benefit" means net positive tax revenue. This1
shall be determined by taking into account direct, indirect, and induced impacts2
based on a standard economic impact methodology utilized by the department, the3
value of the rebate, and any other state tax and financial incentives that are used by4
the department to secure the qualified business.5
(10) "State" means the state of Louisiana.6
§3112. Eligibility requirements7
A. A business shall be eligible to participate in the program if it determines8
all of the following requirements are met:9
(1) The business is relocating a headquarters to the state, or is expanding a10
headquarters in the state.11
(2) The secretary determines that participation in the program will be a12
significant factor in a highly competitive site selection situation to encourage the13
business to relocate or expand the headquarters in the state.14
(3) The secretary determines that securing the project will result in a15
significant positive economic benefit to the state.16
(4) Relocation or expansion of the headquarters will create a minimum of17
twenty-five headquarters jobs.18
B. No business engaged in gaming or gambling shall be eligible for the19
program.20
§3113. Application; recommendation; approval21
A. At the invitation of the secretary, a business may apply for participation22
in the program by submitting to the department certified statements and23
substantiating documents as the department may require.24
B. Upon determining the business meets the eligibility requirements of R.S.25
51:3112, the secretary may request approval by the Joint Legislative Committee on26
the Budget of a contract providing for such participation on terms and conditions27
specified by the secretary.28 ENROLLEDHB NO. 937
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C. No new contract shall be approved on or after July 1, 2017.1
§3114. Contract administration; rebate2
A. Upon approval by the Joint Legislative Committee on the Budget, the3
secretary shall execute the contract with the business, and provide a copy to the4
Department of Revenue prior to the payment of any rebate under the contract.5
B. The contract shall provide a rebate to the qualified business of twenty-five6
percent of relocation costs and shall include the following provisions:7
(1) The maximum amount of qualifying relocation costs.8
(2) The number of headquarters jobs and associated payroll to be created and9
maintained and any other performance obligations deemed appropriate by the10
secretary.11
(3) The reduction of annual rebate payments if performance obligations are12
not met.13
C. The qualified business shall submit to the department, at least annually14
but no more often than monthly, a certified cost report reasonably documenting its15
relocation costs, including supporting documentation as required by the department.16
Prior to the approval of rebates under the contract, the department shall verify the17
business's actual relocation costs as defined in this Chapter.18
D.(1) The rebate shall be payable in equal installments over a five-year19
period, to be paid after the business files an annual certification of performance and20
the department determines the extent of compliance with contractual obligations.21
Annual payments shall be reduced and forfeited for failure to meet performance22
obligations, as provided in the contract. Rebate amounts within the annual limit that23
are not paid in one year may be carried over and paid in a subsequent year, in24
addition to that year's limit.25
(2) No payment of a rebate shall be made under a specific contract during26
the fiscal year in which such contract is approved by the Joint Legislative Committee27
on the Budget.28 ENROLLEDHB NO. 937
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E. The department may obtain, at the expense of the qualified business, a1
certified limited scope audit by an independent certified public accountant, in2
accordance with applicable auditing standards generally accepted in the United3
States, of all books and records of the business relating to its eligibility and4
performance obligations under the program.5
F. Upon approval of the application for an annual rebate, the department6
shall send a certification letter to the Department of Revenue for payment of the7
rebate. The letter shall provide the name of the business and the amount of the8
rebate. The Department of Revenue may require the business to submit any9
additional information as may be necessary to effect the payment of the rebate.10
Payment shall be made from the current collections of the taxes imposed by Title 4711
of the Louisiana Revised Statutes of 1950, as amended.12
G. A business shall not receive any other incentive administered by the13
Department of Economic Development for any expenditures for which the business14
has received a rebate pursuant to this Section.15
H. Economic Analysis Verification. Prior to the implementation of the16
program, an independent third-party economist selected by the Legislative Fiscal17
Office and the department, and retained by the department after approval of the Joint18
Legislative Committee on the Budget, shall verify the standard economic impact19
methodology utilized by the department.20
§3115. Rules21
The department may promulgate rules and regulations after approval by the22
House Committee on Ways and Means and the Senate Committee on Revenue and23
Fiscal Affairs meeting jointly within sixty days of publication of such rules and24
regulations in the State Register.25 ENROLLEDHB NO. 937
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Section 2. This Act shall become effective on July 1, 2012; if vetoed by the governor1
and subsequently approved by the legislature, this Act shall become effective on July 1,2
2012, or on the day following such approval by the legislature, whichever is later.3
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: