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Prepared by Michelle Ducharme.
Talbot HB No. 422
(KEYWORD, SUMMARY, AND DIGEST as amended by Senate committee
amendments)
ECONOMIC DEVELOP/DEPT. Makes changes to the unified economic development
budget report and requires report to be annual.
DIGEST
Talbot HB No. 422
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 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 to require electronic
submission to members 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 provides that the report in each year shall include at least 25% of the economic
development programs within the Department of Economic Development. Each economic
development program within the department shall be included in the report at least once
every four years. New economic development programs created within the department shall
be included in the report not later than two years after the year of creation.
Proposed law provides the report will contain the following information:
(1)A list of all state economic development programs within the Department of
Economic Development, including program title and statutory citation.
(2)A description of the economic development programs covered by the report,
including the purposes of the programs, qualifying businesses, type of
incentive, and how administered.
(3)For the initial report and subsequent reports of an economic development
program covering fiscal year periods since the last report, based upon actual
data to the extent available and upon estimates to the extent actual data is not
available, the amount of incentives issued; the administrative cost of the
program; jobs, wages, capital investment, and any other economic benefit
associated with utilization of the program, including the amount of capital
investment and the number and gross payroll of permanent full and part-time
jobs created and retained; economic impact of the program, including impact
on state tax revenues; and the overall impact of the program. Page 2 of 2
Prepared by Michelle Ducharme.
(4)For the current and next fiscal year, estimates of certain information
regarding each economic development program covered in the report.
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), and (E)(1)(a) and (3); Repeals R.S. 51:935.1(C) and (D))
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.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Commerce, Consumer
Protection, and International Affairs to the reengrossed bill
1. Revises requirements of report coverage and contents.
2. Requires electronic submission of report to members of the legislature.