HLS 13RS-828 ORIGINAL
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Regular Session, 2013
HOUSE BILL NO. 422
BY REPRESENTATIVE TALBOT
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
ECONOMIC DEVELOP/DEPT: Makes changes to the unified economic development
budget report and requires report to be annual
AN ACT1
To amend and reenact R.S. 51:935.1(A), (B)(1), (4)(introductory paragraph), (b), and (e),2
and (5), (D), and (E)(1)(a) and (3) and to repeal R.S. 51:935.1(C), relative to the3
unified economic development budget report; to require an annual report; to delete4
need for independent economist contract and consultation requirements; to require5
report submission to all members of the legislature; to simplify report contents by6
repealing some required contents; and to provide for related matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1. R.S. 51:935.1(A), (B)(1), (4)(introductory paragraph), (b), and (e), and9
(5), (D), and (E)(1)(a) and (3) are hereby amended and reenacted to read as follows: 10
ยง935.1. Unified economic development budget report11
A.(1)(a) The Department of Economic Development shall issue a biennial an12
annual unified economic development budget report which shall be prepared by an13
independent economist selected by and under contract with the division of14
administration, who shall approve the methodologies and assumptions used in15
preparation of the report, and if appropriate, after consultation with the Economic16
Estimating Conference, the Revenue Estimating Conference, the legislative auditor,17
the legislative fiscal office, the Department of Economic Development, the18
Department of Revenue, and the Louisiana Workforce Commission.19 HLS 13RS-828 ORIGINAL
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(b) The report shall be certified by the Economic Estimating Conference, the1
Revenue Estimating Conference, and the legislative fiscal office, as to both the2
sufficiency of the data, information, and reports upon which the report is based and3
the material correctness of the report, or a written summary shall be provided to the4
division of the reasons why the conference or office cannot certify or can only5
partially certify the report.6
(c) No employer, whether participating in economic development programs7
or otherwise, shall be required to supply any additional report, information, or data8
in connection with or related to any provision of this Section.9
(2) The report shall be submitted to the governor, the president of the Senate,10
the speaker of the House of Representatives, the chair of the Senate Commerce,11
Consumer Protection, and International Affairs Committee, the chair of the House12
Commerce Committee, every member of the legislature, and the David R. Poynter13
Legislative Research Library.14
(3) The Department of Economic Development and the division of15
administration shall provide the following by November 15, 2003 to the individuals16
and library specified in Paragraph (A)(2):17
(a) A list of all the state economic development programs which shall be18
included in the report, as recommended by the Louisiana Economic Development19
Council and the division, and submitted only after it has been subjected to pubic20
comment at a public meeting held before November 1, 2003.21
(b) A written assessment of their ability to access, collect, and analyze the22
information necessary to create the report provided for in this Section.23
B. The report shall include:24
(1) A complete listing of each state economic development program which25
the division of administration has agreed should be included in the report and the26
agency or corporation which administers them, if any.27
* * *28
(4) The following performance data, including both direct and indirect29
impact, for each economic development program for the two-fiscal year period being30 HLS 13RS-828 ORIGINAL
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reported, and, beginning with the report issued on November 15, 2007, a comparison1
to the two fiscal years fiscal year previously reported and the average of all prior2
fiscal years previously reported, or the reasons why such data is not available:3
* * *4
(b) The actual number and gross payroll of new permanent full and part-time5
jobs created during the two-year fiscal year period and the number and payroll of6
jobs created in previously reported periods.7
* * *8
(e) Tax revenues generated by employers participating in the programs, as9
determined by the division of administration based upon tax data and information for10
all employers participating in such programs which shall be supplied to the division11
by the Department of Revenue, and certified by the Revenue Estimating Conference.12
(5) An estimate of the total direct and indirect economic impact for each13
economic development program on in Louisiana based upon the performance data14
provided for in Paragraphs (B)(3) and (4).15
* * *16
D. The independent economist who prepares the biennial annual unified17
economic development budget report shall prepare contain an incentives18
competitiveness analysis section which shall be included as a part of the report. This19
competitiveness analysis shall compare the benefits offered in economic20
development programs in Louisiana with those offered in the regional states with21
which the state competes for economic development. The independent economist22
shall include in this analysis The analysis shall include an assessment of the total23
relative tax burden of businesses in Louisiana compared to those regional states.24
E.(1)(a) Beginning in 2004, the The legislative auditor shall conduct an25
annual performance audit designed to evaluate the management controls, accuracy,26
and reliability of the reported information on at least three economic development27
programs as defined in this Section. The economic development programs that are28
to be audited shall be selected by the legislative auditor.29
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HB NO. 422
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(3) In addition to the Legislative Audit Advisory Committee, the1
performance audit shall be submitted to the Economic Estimating Conference, every2
member of the legislature, and the legislative fiscal office.3
* * *4
Section 2. R. S. 51:935.1(C) is hereby repealed in its entirety.5
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Talbot HB No. 422
Abstract: Requires the unified economic development budget report to be annual instead
of biennial, requires that all members of the legislature receive the report and makes
other changes to simplify the process for reporting.
Present law requires the Dept. of Economic Development (DED) to issue a unified economic
development budget report every two years. Requires the report to be prepared by an
independent economist under contract with the division of administration. Requires the
methodologies and assumptions of the report to be developed in consultation with the
Economic Estimating Conference, the Revenue Estimating Conference, the legislative
auditor, the legislative fiscal office, DED, the Dept. of Revenue and the La. Workforce
Commission. Requires the report to be certified by the Economic Estimating Conference,
the Revenue Estimating Conference, and the legislative fiscal office. Proposed law requires
the report to be issued annually, instead of biennially and deletes all other present law
requirements.
Present law requires the report to be submitted to the governor, the president of the Senate,
the speaker of the House, the chairs of the House and Senate commerce committees, and the
legislative research library. Proposed law changes present law submission requirement to
include every member of the legislature and not just the chairs of the House and Senate
commerce committees.
Present law requires the report to include various pieces of information, including a complete
listing of each state economic development program and the tax revenues generated by
employers participating in the programs that the division of administration agrees should be
included in the report. Proposed law retains present law except removes need for the list or
information to be agreed upon by the division of administration.
Proposed law repeals present law requirement that the report classify the performance data
according to three digit North American Industrial Classification System Codes and
categorize by DED Vision 2020 clusters.
(Amends R.S. 51:935.1(A), (B)(1), (4)(intro. para.), (b), and (e), and (5), (D), and (E)(1)(a)
and (3); Repeals R.S. 51:935.1(C))