SLS 12RS-1813 ORIGINAL
Page 1 of 7
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. 724
BY SENATOR WHITE
ECONOMIC DEVELOPMENT. Provides relative to the Louisiana Quality Jobs Programs
Act. (8/1/12)
AN ACT1
To amend and reenact R.S. 51:2453, relative to the Louisiana Quality Jobs Programs Act;2
to provide for definitions, terms, conditions, procedures, and requirements; and to3
provide for related matters.4
Be it enacted by the Legislature of Louisiana:5
Section 1. R.S. 51:2453 is hereby amended and reenacted to read as follows: 6
§2453. Definitions7
The following words or terms as used in this Chapter shall have the following8
meaning, unless a different meaning appears from the context:9
(1) "Benefit rate" means the following percentages:10
(a) For new direct jobs created which pay at least fourteen dollars and fifty11
cents per hour inclusive of wages and the value of the health care benefits paid or12
offered in accordance with Paragraph (2) of this Section, the benefit rate shall be five13
percent, provided that at least fifty percent of the employees holding new direct jobs14
accept the health care benefits offered.15
(b) For new direct jobs created which pay at least nineteen dollars and ten16
cents per hour inclusive of wages and the value of the health care benefits paid or17 SB NO. 724
SLS 12RS-1813 ORIGINAL
Page 2 of 7
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
offered in accordance with Paragraph (2) of this Section, the benefit rate shall be six1
percent, provided that at least fifty percent of the employees holding new direct jobs2
accept the health care benefits offered.3
(2) "Employer" shall mean a legal person who executes a contract with the4
department pursuant to the provisions of this Chapter and who offers, or will offer5
within ninety days of the effective date of qualifying for the incentive rebates6
pursuant to the provisions of this Chapter, a basic health benefits plan to the7
individuals it employs in new direct jobs in this state which shall be determined by8
the Department of Economic Development to have a value of at least one dollar and9
twenty-five cents per hour.10
(a) The "basic health benefits plan" or the "health insurance coverage"11
required to be offered or provided by this Paragraph shall also include coverage for12
basic hospital care, and coverage for physician care, as well as coverage for health13
care, which shall be the same coverage as is provided to employees employed in a14
bona fide executive, administrative, or professional capacity by the employer who15
are exempt from the minimum wage and maximum hour requirements of the federal16
Fair Labor Standards Act, 29 U.S.C.A. §201, et seq.17
(b) To qualify for a contract pursuant to this Chapter, employers must meet18
one of the following provisions:19
(i) Must be one of the following six Vision 2020 cluster industries:20
biotechnology, biomedical, and medical industries serving rural hospitals;21
micromanufacturing; software, auto regulation, Internet, and telecommunications22
technologies; environmental technology; food technologies; and advanced materials.23
Any cluster of industries added after May 1, 2002, shall qualify for a contract24
pursuant to this Chapter, if it qualifies under Items (ii) through (vi) of this25
Subparagraph.26
(ii) Must be a manufacturer, as defined by North American Industry27
Classification System (NAICS) codes 113310, 211, 213111, 541360, 311-339, 511-28
512, and 54171, as the employer's primary function.29 SB NO. 724
SLS 12RS-1813 ORIGINAL
Page 3 of 7
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
(iii) Must be an oil and gas field services business as defined in North1
American Industry Classification System (NAICS) code 213112 which has new2
direct jobs that pay not less than thirty thousand dollars per year and meet the health3
insurance benefits required under this Paragraph and have Louisiana as the national4
or regional headquarters of a multistate business whose service territory includes at5
least Louisiana and the Gulf of Mexico.6
(iv) Must have, or will have within one year, sales of at least fifty percent of7
its total sales to out-of-state customers or buyers, to in-state customers or buyers if8
the products or service is resold by the purchaser to an out-of-state customer or buyer9
for ultimate use, or to the federal government.10
(v) Must be located in an area designated by the Department of Economic11
Development as a distressed region. A distressed region shall be either of the12
following:13
(aa) A parish which is within the lowest twenty-five percent of parishes based14
on per capita income.15
(bb) A census tract block group that is below the state median per capita16
income, based upon the latest federal decennial census.17
(cc) If an area is designated a distressed region, such designation shall be18
maintained for the period of the initial quality jobs contract executed pursuant to this19
Chapter and during the renewal period of any such contract. To qualify, an employer20
shall either be located in a distressed region or at least fifty percent of the new direct21
jobs of the employer shall be filled by persons who reside in a distressed region.22
(c) The following employers or persons engaged in the following professions23
or service industries shall not be eligible for any rebate under this Chapter:24
(i) Retail employers as identified by the North American Industry25
Classification System code sections 44 and 45.26
(ii) Business associations and professional organizations as defined in North27
American Industry Classification System (NAICS) code 8139.28
(iii) State and local government enterprises.29 SB NO. 724
SLS 12RS-1813 ORIGINAL
Page 4 of 7
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
(iv) Real estate agents, operators, and lessors.1
(v) Automotive rental and leasing.2
(vi) Local solid waste disposal, local sewage systems, and local water3
systems businesses.4
(vii) Nonprofit organizations, unless the Department of Economic5
Development determines that the new direct jobs created by the organization would6
have a significant impact on Louisiana.7
(viii) Employers engaged in the gaming industry as identified by the North8
American Industrial Classification System code sections 713210 and 721120.9
(ix) Attorneys.10
(d) The Department of Economic Development may promulgate rules11
annually listing other employers, professions, or service industries which are eligible12
and are not eligible for any rebate pursuant to this Chapter and such rules shall not13
take effect unless presented to and approved by both the House Committee on Ways14
and Means and the Senate Committee on Revenue and Fiscal Affairs in a public15
meeting held for such purpose.16
(3) "Facility management contract" means a contract between a17
employer and another company whereby the company agrees to operate all or18
part of the employer's manufacturing facility.19
(3) (4) "Gross payroll" means wages for the new direct jobs as defined herein20
upon which the particular benefit rate is calculated.21
(4) (5) "New direct job" means employment in this state of an employee22
working at the average hours per week provided for in R.S. 51:2455(E)(2), who was23
not previously on an employer's payroll in Louisiana, nor previously on the payroll24
of such employer's parent entity, subsidiary, or affiliate in Louisiana, or previously25
on the payroll of any business whose physical plant and employees are substantially26
the same as those of the employer in Louisiana. Such job shall be with an employer27
that has qualified to receive a rebate pursuant to the provisions of this Chapter, which28
job did not exist in this state prior to the effective date the application was filed by29 SB NO. 724
SLS 12RS-1813 ORIGINAL
Page 5 of 7
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
the employer with the Department of Economic Development pursuant to the1
provisions of R.S. 51:2455 and which job is filled by an individual domiciled in the2
state of Louisiana. "New direct job" shall not mean any job that is a result of job3
shifts due to the gain or loss of an in-state contract to supply goods and services.4
"New direct job" shall not mean any employees who were retained following the5
acquisition of all or part of an in-state business by an employer.6
(5) (6) "Wages" means all remuneration for services from whatever source,7
including commissions and bonuses and the cash value of all remuneration in any8
medium other than cash, and dismissal payments which the employer is required by9
law or contract to make. Gratuities customarily received by an individual in the10
course of his work from persons other than his employer shall be treated as wages11
received from his employer. The reasonable cash value of remuneration in any12
medium other than cash and the reasonable amount of gratuities shall be estimated13
and determined in accordance with the Internal Revenue Code and its rules and14
regulations. The term "wages" shall not include the following:15
(a) The amount of any payment with respect to services performed after16
January 1, 1951, to or on behalf of an individual in its employ under a plan or system17
established by an employer which makes provision for individuals in its employ18
generally, or for a class or classes of such individuals, including any amount paid by19
an employer for insurance or annuities, or into a fund to provide for any such20
payment, on account of:21
(i) Retirement.22
(ii) Sickness or accident disability.23
(iii) Medical and hospitalization expenses in connection with sickness or24
accident disability.25
(iv) Death, provided the individual in its employ:26
(aa) Has not the option to receive, instead of provision for such death benefit,27
any part of such payment or, if such death benefit is insured, any part of the premium28
or contributions to premiums paid by his employer.29 SB NO. 724
SLS 12RS-1813 ORIGINAL
Page 6 of 7
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
(bb) Has not the right, under the provisions of the plan or system or policy1
of insurance providing for such death benefit, to assign such benefit or to receive2
cash consideration in lieu of such benefit either upon his withdrawal from the plan3
or system providing for such benefit or upon the termination of such plan or system4
or policy of insurance or of his services with such employer.5
(v) A bona fide thrift or savings fund, providing:6
(aa) Such payment is conditioned upon a payment of a substantial sum by7
such individuals in its employ.8
(bb) Such sum paid by the employer cannot under the provisions of such plan9
be withdrawn by an individual more frequently than once in any twelve-month10
period, except upon an individual's separation from that employment.11
(b) Any payment made to, or on behalf of, an employee or his beneficiary12
under a cafeteria plan of the type described in 26 U.S.C. 125 and referred to in 2613
U.S.C. 3306(b)(5)(G).14
(c) Any payment made, or benefit furnished, to or for the benefit of an15
employee if at the time of such payment or such financing it is reasonable to believe16
that the employee will be able to exclude such payment or benefit from income under17
an educational assistance program as described in 26 U.S.C. 127 or a dependent care18
assistance program as described in 26 U.S.C. 129 and as referred to in 26 U.S.C.19
3306(b)(13).20
(d) The payment by an employer, without deduction from the remuneration21
of the individual in its employ, of the tax imposed upon such individual in its employ22
under Section 3101 of the federal Internal Revenue Code with respect to domestic23
services in a private home of the employer or for agricultural labor performed after24
December 31, 1980.25
(e) Dismissal payments which the employer is not required by law or contract26
to make.27
(f) The value of any meals and lodging furnished by or on behalf of an28
employer to an individual in his employ, provided the meals and lodging are29 SB NO. 724
SLS 12RS-1813 ORIGINAL
Page 7 of 7
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
furnished on the business premises of the employer for the convenience of the1
employer.2
(6) (7) "Health care benefits" means the amount of any payment to or on3
behalf of an individual in its employ under a plan or system established by an4
employer which makes provision for individuals in its employ generally, or for a5
class or classes of such individuals, including any amount paid by an employer for6
insurance or annuities, or into a fund to provide for any such payment for a basic7
health benefits plan or the health insurance coverage, or the value of the health8
benefits plan or health insurance coverage offered by the employer to an individual9
it employs. The value of health care benefits which are offered in accordance with10
Paragraph (2) of this Section shall be deemed as having been paid for purposes of11
determining a benefit rate, regardless of whether the employee accepts the plan or12
coverage offered, provided that at least fifty percent of the employees holding new13
direct jobs accept the health care benefits offered.14
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Michelle Ducharme.
DIGEST
Present law provides for the Louisiana Quality Jobs Program Act.
Present law provides for definitions.
Proposed law maintains present law and defines the term "facility management contract".
Effective August 1, 2012.
(Amends R.S. 51:2453)