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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), (2), (4), and (5), (D), and (E)(1)(a) and (3)2
and to repeal R.S. 51:935.1(C), relative to the unified economic development budget3
report; to require an annual report; to delete need for independent economist contract4
and consultation requirements; to require report submission to all members of the5
legislature; to simplify report contents by repealing certain content requirements; and6
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), (2), (4), and (5), (D), and (E)(1)(a) and (3) are9
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 REENGROSSED
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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
(2) Every employer participating in an economic development program24
within the Department of Economic Development shall be required to supply any25
additional report, information, or data at the request of the department in connection26
with or related to any provision of this Section.27
B. The report shall include:28
(1) A complete listing of each state economic development program which29
the division of administration has agreed should be included in the report and the30 HLS 13RS-828 REENGROSSED
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agency or corporation which administers them, if any within the Department of1
Economic Development.2
(2) A description of how the agency or corporation Department of Economic3
Development administers its each program and how that administration serves to4
promote, attract, and retain commerce and industry in the state.5
* * *6
(4) The following performance data, including both direct and indirect7
impact, for each economic development program for the two-fiscal year period being8
reported, and, beginning with the report issued on November 15, 2007, a comparison9
to the two fiscal years fiscal year previously reported and the average of all prior10
fiscal years previously reported, or the reasons why such data is not available:11
(a) The dollar amount of new investment in physical assets in the state.12
(b) The actual number and gross payroll of new permanent full and part-time13
jobs created during the two-year fiscal year period and the number and payroll of14
jobs created in previously reported periods.15
(c) The actual number and gross payroll of jobs retained as compared to the16
number and payroll of jobs existing prior to the entry of the employers into a17
program.18
(d) Of the jobs created and retained, the actual number and gross payroll of19
jobs held by those employees who are residents of the state.20
(d) (e) Wage rates and benefits of the new permanent full-time and part-time21
jobs created, and those of the jobs retained, as compared to the wage rates and22
benefits existing prior to the entry of the employers into the program.23
(e)(f) Tax revenues generated per tax year by employers participating in the24
programs, as determined by the division of administration based upon tax data and25
information for all employers participating in such programs which shall be supplied26
to the division by the Department of Revenue, and certified by the Revenue27
Estimating Conference.28 HLS 13RS-828 REENGROSSED
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(5) An estimate of the total direct and indirect economic impact for each1
economic development program on in Louisiana based upon the performance data2
provided for in Paragraphs (B)(3) and (4) of this Section.3
* * *4
D. The independent economist who prepares the biennial annual unified5
economic development budget report shall prepare contain an incentives6
competitiveness analysis section which shall be included as a part of the report. This7
competitiveness analysis shall compare the benefits offered in economic8
development programs in Louisiana with those offered in the regional neighboring9
states with which the state competes for economic development. The independent10
economist shall include in this analysis The analysis shall include an assessment of11
the total relative tax burden of businesses in Louisiana compared to those regional12
states.13
E.(1)(a) Beginning in 2004, the The legislative auditor shall conduct an14
annual performance audit designed to evaluate the management controls, accuracy,15
and reliability of the reported information on at least three economic development16
programs as defined in this Section. The economic development programs that are17
to be audited shall be selected by the legislative auditor.18
* * *19
(3) In addition to the Legislative Audit Advisory Committee, the20
performance audit shall be submitted to the Economic Estimating Conference, every21
member of the legislature, and the legislative fiscal office.22
* * *23
Section 2. R. S. 51:935.1(C) is hereby repealed in its entirety.24 HLS 13RS-828 REENGROSSED
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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.
Proposed law requires every employer participating in an economic development program
within DED to supply any additional report, information, or data, at the request of the
department, in connection with or related to any provision of the report.
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 applies the report to those
state economic development programs within DED only and removes the need for the list
or information to be agreed upon by the division of administration.
Present law requires report to include data regarding the dollar amount of new investment
in physical assets in the state, the actual number and gross payroll of new permanent full-and
part-time jobs created, the actual number and gross payroll of jobs retained, wage rates and
benefits of the new permanent full-time and part-time jobs created and retained, and the tax
revenues generated by employers. Proposed law retains present law and requires the report
to include data relative to the actual number and gross payroll of jobs held by employees
who are residents of the state.
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.
Present law requires a competitive analysis of the benefits offered in the economic
development programs in this state compared to those offered in the regional states with HLS 13RS-828 REENGROSSED
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which the state competes for economic development. Proposed law retains present law
except changes the comparison to neighboring states instead of regional states.
(Amends R.S. 51:935.1(A), (B)(1), (2), (4), and (5), (D), and (E)(1)(a) and (3); Repeals R.S.
51:935.1(C))
Summary of Amendments Adopted by House
House Floor Amendments to the engrossed bill.
1. Required every employer participating in an economic development program
within DED to supply any additional report, information, or data, at the request
of the department, in connection with or related to any provision of the report.
2. Applied the report to those state economic development programs within DED
only.
3. Required the report to include data relative to the actual number and gross
payroll of jobs held by employees who are residents of the state.
4. Changed the comparison in the competitive analysis of the benefits offered in the
economic development programs in this state compared to those offered in other
states from regional states to neighboring states.
5. Made various technical changes.