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Regular Session, 2012
SENATE BILL NO. 717
BY SENATOR ADLEY
FISCAL CONTROLS. Requires rebate loss notes on certain legislative instruments with a
net decrease in revenues due to rebates by the state. (gov sig)
AN ACT1
To enact R.S. 24:609, relative to fiscal services; to provide for the preparation of certain2
reports relative to legislative instruments providing rebates; to provide for the review3
and analysis of certain data by the legislative fiscal office and the Department of4
Revenue; to provide for procedures for certain legislative instruments which reduce5
state revenues; to provide for an effective date; and to provide for related matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 24:609 is hereby enacted to read as follows: 8
ยง609. Rebate loss reports; rebate loss notes; procedures9
A. Rebate loss report. (1) Any legislative instrument which grants a10
rebate by the state, or by a political subdivision of the state whose boundaries11
are coterminous with those of the state, of five million dollars or more in any12
one of the five ensuing fiscal years from the instrument's effective date shall be13
filed with the following rebate loss report, hereinafter referred to as "the14
report", attached to the instrument prepared by the author, or by a proponent15
of the instrument on the author's behalf, relative to the economic effects of the16
enactment of the legislative instrument:17 SB NO. 717
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(a) The total decrease due to the rebate estimated over the five ensuing1
fiscal years from the instrument's effective date.2
(b) The state's rebate loss ratio; that is, the amount of money to be3
gained by the state compared to the cost of the benefit granted.4
(c) The effect of the rebate on household earnings, employment, and5
value added in Louisiana.6
(d) An indication of which beneficial economic actions will be7
incentivized by the instrument.8
(e) Data indicating whether the same or similar instruments have been9
enacted in other states or territories of the United States or other nations and10
the economic impact.11
(f) The methodology and assumptions utilized to produce the information12
in the report.13
(2) The report shall be filed prior to the legislative session at which the14
proposed legislation is to be considered, but not later than January 15 on any15
proposed legislative instrument as provided in this Subsection.16
B. Rebate loss report review. (1) Upon filing of the legislative instrument17
and the rebate loss report as required by this Section, a copy of the report shall18
be transmitted to the Department of Revenue and the legislative fiscal office.19
(2) The legislative fiscal office shall review the report. The review shall20
encompass all aspects of the report including, but not limited to, the following:21
(a) The reasonableness of the rebate loss estimates.22
(b) How the rebate loss report compares to the fiscal note.23
(c) The validity, credibility, or reasonableness of the information in the24
report or the methodology and assumptions utilized to produce the information,25
or questions raised by such information or methodology.26
(d) Whether the actions being incentivized are already occurring without27
the enactment of the instrument.28
(3) The Department of Revenue shall review the data in the report and29 SB NO. 717
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from other sources as to whether the same or similar instruments have been1
enacted in other states or territories of the United States or other nations.2
C. Rebate loss note. (1) In addition to the fiscal note prepared in3
accordance with the rules of the legislature, the legislative fiscal office shall4
prepare a rebate loss note, hereinafter referred to as a "loss note", which sets5
forth a brief and concise summary of the results of its review, with the data6
compiled by the Department of Revenue, of the report attached to the legislative7
instrument as provided for in Subsection B of this Section.8
(2) Any legislative instrument which requires a rebate loss report under9
the provisions of Subsection A of this Section shall have the report attached to10
it prior to its consideration by any committee and prior to its consideration on11
final passage by either house of the legislature. In addition, the presiding officer,12
the clerical officer, or any member of the respective house of the legislature13
considering the instrument may offer a motion at any time that a legislative14
instrument before that body requiring a rebate loss note without such a note15
attached be deferred until the preparation of the loss note.16
(3) However, nothing in this Section shall require the preparation of a17
loss note by the legislative fiscal office for an instrument not prefiled as required18
by Subsection A of this Section, or for an instrument filed without the report as19
required by Subsection A of this Section, nor shall preparation of the loss note20
take precedence over the preparation of any fiscal note required by the rules of21
the legislature.22
(4) A rebate loss note shall not constitute a part of the law proposed by23
the legislative instrument to which it is attached.24
D. Prior to the granting a rebate, the secretary of the Department of25
Economic Development shall develop rules governing the implementation of the26
rebate process in accordance with the Administrative Procedure Act. He shall27
first submit the proposed rules to the House Committee on Ways and Means28
and the Senate Committee on Revenue and Fiscal Affairs for review and29 SB NO. 717
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approval.1
E. No rebate shall be finally granted by the secretary of the Department2
of Economic Development or by the secretary of the Department of Revenue3
until it is approved by the legislature while it is in session, or by the Joint4
Legislative Committee on the Budget when the legislature is not is session.5
Section 2. This Act shall become effective upon signature by the governor or, if not6
signed by the governor, upon expiration of the time for bills to become law without signature7
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If8
vetoed by the governor and subsequently approved by the legislature, this Act shall become9
effective on the day following such approval.10
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Jay R. Lueckel.
DIGEST
Proposed law provides for development of a rebate loss report for any legislative instrument
which proposes a rebate by the state, or by a political subdivision of the state whose
boundaries are coterminous with those of the state, of five million dollars or more in any one
of the five ensuing fiscal years from the instrument's effective date. The report shall be filed
by the author of the proposed instrument, or by a proponent of the instrument on the author's
behalf, relative to the economic effects of the enactment of the legislative instrument:
1. The total decrease due to the rebate estimated over the five ensuing fiscal years from
the instrument's effective date.
2. The state's rebate loss ratio; that is, the amount of money to be gained by the state
compared to the cost of the benefit granted.
3. The effect of the rebate on household earnings, employment, and value added in
Louisiana.
4. An indication of which beneficial economic actions will be incentivized by the
instrument.
5. Data indicating whether the same or similar instruments have been enacted in other
states or territories of the United States or other nations.
6. The methodology and assumptions utilized to produce the information in the report.
Proposed law provides that the rebate loss report shall be filed on or before January 15 on
any proposed legislative instrument which will grant a rebate with the impact described
above.
Proposed law provides for a rebate loss report review process. It requires that upon filing of
the legislative instrument and the rebate loss report, a copy of the report shall be transmitted
to the Department of Revenue and the legislative fiscal office. SB NO. 717
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Proposed law provides that the legislative fiscal office shall review the report. The review
shall encompass all aspects of the report including, but not limited to, the following:
1. The reasonableness of the rebate loss estimates.
2. The legislative instrument in the fiscal note to the report.
3. The validity, credibility, or reasonableness of the information in the report or the
methodology and assumptions utilized to produce the information, or questions
raised by such information or methodology.
4. Whether the actions being incentivized are already occurring without the enactment
of the instrument.
Proposed law provides that the Department of Revenue shall review the data in the report
and from other sources as to whether the same or similar instruments have been enacted in
other states or territories of the United States or other nations.
Proposed law provides for the preparation of a rebate loss note in addition to the fiscal note
prepared in accordance with the rules of the legislature to be prepared by the legislative
fiscal office which sets forth a brief and concise summary of the results of its rebate loss
report review.
Proposed law further requires that any legislative instrument which requires a rebate loss
report shall have the report attached to it prior to its consideration by any committee and
prior to its consideration on final passage by either house of the legislature. In addition, the
presiding officer, the clerical officer, or any member of the respective house of the
legislature considering the instrument may offer a motion at any time that a legislative
instrument before that body requiring a rebate loss note without such a note attached be
deferred until the preparation of the loss note. A rebate loss note shall not constitute a part
of the law proposed by the legislative instrument to which it is attached.
Proposed law provides that prior to the granting a rebate, the secretary of the Department of
Economic Development shall develop rules governing the implementation of the rebate
process in accordance with the Administrative Procedure Act. He shall first submit the
proposed rules to the House Committee on Ways and Means and the Senate Committee on
Revenue and Fiscal Affairs for review and approval.
Proposed law provides that no rebate shall be finally granted by the secretary of the
Department of Economic Development or the secretary of the Department of Revenue until
it is approved by the legislature while it is session, or by the Joint Legislative Committee on
the Budget when the legislature is not is session.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Adds R.S. 24:609)