ENROLLED
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ACT No. 387
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.
AN ACT1
To amend and reenact R.S. 51:935.1(A), (B), and (E)(1)(a) and (3) and to repeal R.S.2
51:935.1(C) and (D), relative to the unified economic development budget report;3
to require an annual report; to delete need for independent economist contract and4
consultation requirements; to require report submission to all members of the5
legislature; to simplify report contents by repealing certain content requirements; to6
provide for contents of the reports; 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), and (E)(1)(a) and (3) are hereby amended and9
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
(b) The report shall be certified by the Economic Estimating Conference, the20
Revenue Estimating Conference, and the legislative fiscal office, as to both the21
sufficiency of the data, information, and reports upon which the report is based and22
the material correctness of the report, or a written summary shall be provided to the23 ENROLLEDHB NO. 422
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division of the reasons why the conference or office cannot certify or can only1
partially certify the report.2
(c) No employer, whether participating in economic development programs3
or otherwise, shall be required to supply any additional report, information, or data4
in connection with or related to any provision of this Section.5
(2) The report shall be submitted to the governor, the president of the Senate,6
the speaker of the House of Representatives, the chair of the Senate Commerce,7
Consumer Protection, and International Affairs Committee, the chair of the House8
Commerce Committee, every member of the legislature electronically, and the David9
R. Poynter Legislative Research Library., as provided in R.S. 24:772.10
(3) The Department of Economic Development and the division of11
administration shall provide the following by November 15, 2003 to the individuals12
and library specified in Paragraph (A)(2):13
(a) A list of all the state economic development programs which shall be14
included in the report, as recommended by the Louisiana Economic Development15
Council and the division, and submitted only after it has been subjected to pubic16
comment at a public meeting held before November 1, 2003.17
(b) A written assessment of their ability to access, collect, and analyze the18
information necessary to create the report provided for in this Section.19
(2) Upon request by the Department of Economic Development, the20
Department of Revenue and the Louisiana Workforce Commission shall provide any21
information in their possession needed by the Department of Economic Development22
for preparation of the report. The Department of Economic Development shall not23
disclose any confidential data provided, and shall not include any confidential24
information in the report in an individually identifiable form.25
B. The report shall include:26
(1) A complete listing of each state economic development program which27
the division of administration has agreed should be included in the report and the28
agency or corporation which administers them, if any.29 ENROLLEDHB NO. 422
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(2) A description of how the agency or corporation administers its program1
and how that administration serves to promote, attract, and retain commerce and2
industry in the state.3
(3) The total direct cost of benefits provided under each economic4
development program for the preceding two fiscal years, together with an estimate5
of the projected direct cost for the current and next two fiscal years.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 previously reported and the average of all prior fiscal years10
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 period and the number and payroll of jobs created14
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 employer s into a17
program.18
(d) Wage rates and benefits of the new permanent full-time and part-time jobs19
created, and those of the jobs retained, as compared to the wage rates and benefits20
existing prior to the entry of the employers into the program.21
(e) Tax revenues generated by employers participating in the programs, as22
determined by the division of administration based upon tax data and information for23
all employers participating in such programs which shall be supplied to the division24
by the Department of Revenue, and certified by the Revenue Estimating Conference.25
(5) An estimate of the total direct and indirect economic impact for each26
economic development program on Louisiana based upon the performance data27
provided for in Paragraphs (B)(3) and (4).28
B.(1) The report in each year shall include at least twenty-five percent of the29
economic development programs within the Department of Economic Development.30 ENROLLEDHB NO. 422
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Each economic development program within the department shall be included in the1
report at least once every four years. New economic development programs created2
within the department shall be included in the report not later than two years after the3
year of creation.4
(2) The report shall include, as applicable, the following:5
(a) A list of all state economic development programs within the Department6
of Economic Development, including program title and statutory citation.7
(b) A description of the economic development programs covered by the8
report, including the purposes of the programs, qualifying businesses, type of9
incentive, and how administered.10
(c) For the immediately prior fiscal year, if it is the initial report on a11
program, and for all fiscal years since the last report on the program, if it is a12
subsequent report, based upon actual data to the extent available and upon estimates13
to the extent actual data is not available:14
(i) The amount of incentives issued.15
(ii) The administrative cost of the program.16
(iii) The number of permanent, new and retained, full-time and part-time17
jobs, amount of associated payroll, amount of capital investment, and any other18
economic benefit associated with utilization of the program.19
(iv) The economic impact of the program, including impact on state tax20
revenues.21
(v) The overall impact of the program.22
(d) For the current and next fiscal year, estimates of all of the following:23
(i) The amount of incentives to be issued.24
(ii) The administrative cost of the program.25
(iii) The number of permanent, new and retained, full-time and part-time26
jobs, amount of associated payroll, amount of capital investment, and any other27
economic benefit associated with utilization of the program.28
(iv) The economic impact of the program, including impact on state tax29
revenues.30 ENROLLEDHB NO. 422
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(v) The overall impact of the program.1
* * *2
E.(1)(a) Beginning in 2004, the The legislative auditor shall conduct an3
annual performance audit designed to evaluate the management controls, accuracy,4
and reliability of the reported information on at least three economic development5
programs as defined in this Section. The economic development programs that are6
to be audited shall be selected by the legislative auditor.7
* * *8
(3) In addition to the Legislative Audit Advisory Committee, the9
performance audit shall be submitted to the Economic Estimating Conference, every10
member of the legislature, and the legislative fiscal office.11
* * *12
Section 2. R.S. 51:935.1(C) and (D) are hereby repealed in their entirety.13
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: