ENROLLED
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ACT No. 191
Regular Session, 2013
HOUSE BILL NO. 316
BY REPRESENTATIVES KATRINA JACKSON AND JAMES
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
AN ACT1
To enact R.S. 47:1517.1, relative to tax incentives; to require state agencies which2
administer tax credits and tax rebates to make certain reports; to provide relative to3
the contents of such reports; to provide for certain requirements and limitations; to4
exclude certain programs from applicability; to provide for definitions; and to5
provide for related matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 47:1517.1 is hereby enacted to read as follows: 8
ยง1517.1. Tax incentives; state agencies and state offices that administer tax9
incentives; reporting requirements10
A. The Department of Revenue is required to prepare a tax exemption budget11
each year that includes state revenue loss for the preceding three years caused by12
each tax exemption, deduction, exclusion, and credit authorized by law; however, in13
addition to the Department of Revenue, a number of other state agencies administer14
tax credits and rebates. Likewise, the legislative auditor's office has statutory15
authority to conduct performance audits of state agency programs in order to16
evaluate the impact, efficiency, effectiveness, and cost-effectiveness of programs and17
to identify programs that are vital and in the best interests of the citizens of18
Louisiana. In order for the legislature and the legislative auditor's office to get19
accurate and complete information regarding how much tax credits and rebates cost20
the state each year, each state agency that administers tax credits and rebates shall21
annually report the information required by this Section to the legislature.22 ENROLLEDHB NO. 316
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B. No later than the first day of March each year, the head of each state1
agency that administers a tax credit or tax rebate, referred to in this Section2
collectively as "tax incentive", shall prepare and submit to the legislature a report3
regarding each tax incentive that the agency administers. The report shall include4
an assessment of each tax incentive based on the following criteria:5
(1) Whether or not each tax incentive has been successful in meeting the6
purpose for which it was enacted, in particular, whether each tax incentive benefits7
those originally intended to be benefited, and if not, those who do benefit.8
(2) Whether or not the state receives a positive return on investment from the9
business or industry for which the tax incentive is intended to benefit and any other10
economic benefits produced by such tax incentive.11
(3) Unintended or inadvertent effects, benefits, or harm caused by each tax12
incentive, including whether each tax incentive conflicts with other state laws or13
regulations.14
C.(1) Nothing in this Section shall be construed to require the disclosure of15
proprietary or trade secret information that has been submitted to any state agency16
with respect to a tax credit.17
(2) Nothing in this Section shall be construed to supercede any provision of18
R.S. 47:1508 with respect to the confidentiality of taxpayer records.19
D. Each state agency required to submit a report pursuant to the provisions20
of this Section may request from any other state or local agency or official any21
information necessary to complete the report required by this Section. Any such22
agency or official shall comply with this request.23
E. For purposes of this Section, the term "state agency" shall mean any24
office, department, board, commission, institution, or division within the executive25
branch of state government. Administration of a tax incentive shall be evidenced by26
a legal requirement or authorization to undertake any of the following actions for27
purposes of administration of the tax incentive:28
(1) Promulgation of rules or regulations; in cases where more than one29
agency has rulemaking authority, the report shall be prepared collaboratively.30 ENROLLEDHB NO. 316
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(2) Determination, review, or confirmation of eligibility or qualifications.1
(3) Entering into a contract with an entity for purposes of a tax credit.2
(4) Conducting oversight or substantial administrative functions for a tax3
incentive when the public purpose associated with the tax incentive is within the core4
mission of the agency.5
F. The Department of Revenue shall develop a format for reports required6
by this Section similar to the format used for reporting information contained in the7
annual tax exemption budget provided for in R.S. 47:1517. The format shall be8
made available to all state agencies for use in preparation of their reports pursuant9
to the provisions of this Section.10
G. The House Committee on Ways and Means and the Senate Committee on11
Revenue and Fiscal Affairs, referred to in this Subsection as "committees", shall12
conduct hearings on the reports every odd-numbered year, to be concluded thirty13
days before the beginning of the Regular Session of the Legislature of Louisiana.14
The committees shall analyze and consider tax incentives that have caused revenue15
loss to the state in any one of the three previous fiscal years. From time to time, the16
committees may report to the legislature findings or recommendations developed as17
a result of the hearings.18
H. This Section shall not apply to programs which have a sunset date on or19
before July 1, 2009.20
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: