SLS 12RS-1596 ENGROSSED
Page 1 of 5
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2012
SENATE BILL NO. 717
BY SENATOR ADLEY
FISCAL CONTROLS. Requires rebate impact 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 impact report; rebate impact notes; procedures9
A. Rebate impact report. (1) Any legislative instrument which grants a10
rebate by the state of five million dollars or more in any one of the five ensuing11
fiscal years from the instrument's effective date shall be filed with the following12
rebate impact report, hereinafter referred to as "the report", attached to the13
instrument prepared by the author, or by a proponent of the instrument on the14
author's behalf, relative to the economic effects of the enactment of the15
legislative instrument:16
(a) The total decrease due to the rebate estimated over the five ensuing17 SB NO. 717
SLS 12RS-1596 ENGROSSED
Page 2 of 5
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
fiscal years from the instrument's effective date.1
(b) The state's rebate impact ratio; that is, the amount of money to be2
gained by the state compared to the cost of the benefit granted.3
(c) The effect of the rebate on household earnings, employment, and4
value added in Louisiana.5
(d) An indication of which beneficial economic actions will be6
incentivized by the instrument.7
(e) Data indicating whether the same or similar instruments have been8
enacted in other states or territories of the United States or other nations and9
the economic impact.10
(f) The methodology and assumptions utilized to produce the information11
in the report.12
(2) The report shall be filed prior to the legislative session at which the13
proposed legislation is to be considered, but not later than thirty days prior to14
the regular session on any proposed legislative instrument as provided in this15
Subsection.16
B. Rebate impact report review. (1) Upon filing of the legislative17
instrument and the rebate impact report as required by this Section, a copy of18
the report shall be transmitted to the Department of Revenue and the legislative19
fiscal office.20
(2) The legislative fiscal office shall review the report. The review shall21
encompass all aspects of the report including, but not limited to, the following:22
(a) The reasonableness of the rebate impact estimates.23
(b) How the rebate impact report compares to the fiscal note.24
(c) The validity, credibility, or reasonableness of the information in the25
report or the methodology and assumptions utilized to produce the information,26
or questions raised by such information or methodology.27
(d) Whether the actions being incentivized are already occurring without28
the enactment of the instrument.29 SB NO. 717
SLS 12RS-1596 ENGROSSED
Page 3 of 5
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
(3) The Department of Revenue shall review the data in the report and1
from other sources as to whether the same or similar instruments have been2
enacted in other states or territories of the United States or other nations.3
C. Rebate impact note. (1) In addition to the fiscal note prepared in4
accordance with the rules of the legislature, the legislative fiscal office shall5
prepare a rebate impact note, hereinafter referred to as an "impact note",6
which sets forth a brief and concise summary of the results of its review, with7
the data compiled by the Department of Revenue, of the report attached to the8
legislative instrument as provided for in Subsection B of this Section.9
(2) Any legislative instrument which requires a rebate impact report10
under the provisions of Subsection A of this Section shall have the impact note11
attached to it prior to its consideration by any committee and prior to its12
consideration on final passage by either house of the legislature. In addition, the13
presiding officer, the clerical officer, or any member of the respective house of14
the legislature considering the instrument may offer a motion at any time that15
a legislative instrument before that body requiring a rebate impact note without16
such a note attached be deferred until the preparation of the impact note.17
(3) However, nothing in this Section shall require the preparation of an18
impact note by the legislative fiscal office for an instrument not prefiled as19
required by Subsection A of this Section, or for an instrument filed without the20
report as required by Subsection A of this Section, nor shall preparation of the21
impact note take precedence over the preparation of any fiscal note required by22
the rules of the legislature.23
(4) A rebate impact note shall not constitute a part of the law proposed24
by the legislative instrument to which it is attached.25
D. Prior to the granting a rebate, the secretary of the Department of26
Economic Development shall develop rules governing the implementation of the27
rebate process in accordance with the Administrative Procedure Act. He shall28
first submit the proposed rules to the House Committee on Ways and Means29 SB NO. 717
SLS 12RS-1596 ENGROSSED
Page 4 of 5
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
and the Senate Committee on Revenue and Fiscal Affairs for review and1
approval.2
Section 2. This Act shall become effective upon signature by the governor or, if not3
signed by the governor, upon expiration of the time for bills to become law without signature4
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If5
vetoed by the governor and subsequently approved by the legislature, this Act shall become6
effective on the day following such approval.7
The original instrument was prepared by Jay Lueckel. The following digest,
which does not constitute a part of the legislative instrument, was prepared
by Riley Boudreaux.
DIGEST
Adley (SB 717)
Proposed law provides for development of a rebate impact report for any legislative
instrument which proposes a rebate by the state of $5 million 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 impact 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 impact report shall be filed on or before not later than
30 days prior to the regular session on any proposed legislative instrument which will grant
a rebate with the impact described above.
Proposed law provides for a rebate impact report review process. It requires that upon filing
of the legislative instrument and the rebate impact report, a copy of the report shall be
transmitted to the Department of Revenue and the legislative fiscal office.
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 impact estimates. SB NO. 717
SLS 12RS-1596 ENGROSSED
Page 5 of 5
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
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 impact 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 impact
report review.
Proposed law further requires that any legislative instrument which requires a rebate impact
report shall have a rebate impact note 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 impact note without such a note attached be
deferred until the preparation of the impact note. A rebate impact 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.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Adds R.S. 24:609)
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Revenue and Fiscal
Affairs to the original bill
1. Deletes a provision prohibiting the granting of a rebate 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.
2. Changes the required time to file a rebate impact report from January 15
th
prior to the Regular Session in which the rebate instrument will be introduced
to 30 days prior to the session.
3. Removes rebates affecting political subdivisions with boundaries
coterminous with those of the state from the requirement of a rebate impact
note.
4. Changes the name of the report and note from "rebate loss" to "rebate
impact" and makes similar changes to such terms in the bill.