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Regular Session, 2013
HOUSE BILL NO. 571
BY REPRESENTATIVE ROBIDEAUX
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
TAX/TAX REBATES: Provides relative to rebates and rebate programs
AN ACT1
To amend and reenact R.S. 51:1787(A)(3) and (B)(3) and 1791 and to enact R.S. 47:63022
and R.S. 51:3116 and 3122, relative to rebates and rebate programs, to provide3
requirements for rebate contracts; to provide for the administration of rebate4
programs; to authorize the promulgation of rules and regulations; to provide for5
effectiveness; and to provide for related matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 47:6302 is hereby enacted to read as follows:8
§6302. Suspension of Rebate9
A. Notwithstanding any provision of law to the contrary, the provisions of10
this Chapter and the authorization to issue or pay a rebate shall be ineffective11
beginning on and after July 1, 2013, through June 30, 2016. Beginning July 1, 2016,12
the provisions of this Chapter and the authority to issue or pay a rebate shall have the13
full force and effect of law.14
B. The provisions of this Section shall not apply with respect to the15
satisfaction of any claim for a rebate based on a donation made between January 1,16
2013, and June 30, 2013.17
Section 2. R.S. 51:1787(A)(3) and (B)(3) and 1791 are hereby amended and18
reenacted to read as follows: 19 HLS 13RS-903 REENGROSSED
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§1787. Incentives1
A. The board, after consultation with the secretaries of the Department of2
Economic Development and Department of Revenue, and with the approval of the3
governor, may enter into contracts not to exceed five years to provide:4
* * *5
(3) The tax credit provided in Paragraph (2) of this Subsection shall be6
applicable only to a position within the state that did not previously exist in the7
business enterprise and that is filled by a person who is a citizen of the United States8
and who is domiciled in Louisiana, or who is a citizen of the United States and9
becomes domiciled in Louisiana within sixty days after his employm ent in such10
position, performing duties in connection with the operation of the business11
enterprise either as a regular, full-time employee or as a part-time employee12
employed for at least twenty hours per week for at least six months during the13
taxable year. The total number of credits allowed to a business enterprise for14
employees who are citizens of the United States and who become domiciled in15
Louisiana within sixty days after employmen t shall not exceed fifty percent of the16
total number of credits allowed to the business enterprise under the contract.17
B. The board may enter into the contracts provided in Subsection A of this18
Section provided that:19
* * *20
(3)(a) The business certifies that at least thirty-five fifty percent of its21
employees:22
(a)(i) Are residents of either:23
(i) (aa) Any enterprise zone in Louisiana for a business located in an urban24
enterprise zone, or a business not located in either an enterprise zone or an economic25
development zone.26
(ii) (bb) The same parish as the location of the business, or any enterprise27
zone in Louisiana, for a business located in a rural enterprise zone, an economic28
development zone, or an enterprise zone in Calcasieu Parish.29 HLS 13RS-903 REENGROSSED
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(b) (ii) Were receiving some form of public assistance during the six-month1
period prior to employment.2
(c) (iii) Were considered unemployable by traditional standards, or lacking3
in basic skills.4
(d) (iv) Any combination of the above. 5
(b) In addition to the requirements of Subparagraph (a) of this Paragraph,6
eligibility for a retail business which is assigned a North American Industry7
Classification Code of 44 or 45 and has more than one hundred employees8
nationwide including affiliates prior to the contract effective date shall be limited to9
grocery stores and pharmacies located in an enterprise zone, as such terms are10
defined by the department by rules promulgated in accordance with the11
Administrative Procedure Act.12
(c) Such certification The certifications required by Subparagraph (a) of this13
Paragraph shall be updated annually if the business is to continue receiving the14
benefits of this Chapter.15
* * *16
§1791. Certain parishes; rural enterprise zones17
Notwithstanding any other provision of law to the contrary, any parish with18
a population of seventy-five thousand or less according to the latest federal census19
shall be authorized to establish at least one rural enterprise zone and one economic20
development zone which do not otherwise qualify for an enterprise zone or an21
economic development zone under the criteria established pursuant to this Chapter22
subject to approval by the department and the Board of Commerce and Industry.23
Any enterprise zone or economic development zone established pursuant to this24
Section shall comply with all other requirements of law as established by this25
Chapter, including but not limited to the provisions of R.S. 51:1785, 1786, and 178726
insofar as those provisions are otherwise applicable to enterprise zones and economic27
development zones.28
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§3116. Suspension of Rebate1
A. Notwithstanding any provision of law to the contrary, the provisions of2
this Chapter and the authorization to enter into any rebate contract shall be3
ineffective beginning on and after July 1, 2013, through June 30, 2016. Beginning4
July 1, 2016, the provisions of this Chapter and the authority to enter into any rebate5
contract shall have the full force and effect of law.6
B. The provisions of this Section shall not apply in cases where the secretary7
of the Department of Economic Development has entered into a cooperative8
endeavor agreement with a business entity for purposes of receiving this rebate9
incentive, regardless of whether the contract has been approved by the Joint10
Legislative Committee on the Budget prior to July 1, 2013.11
* * *12
§3122. Suspension of Rebate13
A. Notwithstanding any provision of law to the contrary, the provisions of14
this Chapter and the authorization to enter into any rebate contract shall be15
ineffective beginning on and after July 1, 2013, through June 30, 2016. Beginning16
July 1, 2016, the provisions of this Chapter and the authority to enter into any rebate17
contract shall have the full force and effect of law.18
B. The provisions of this Section shall not apply in cases where the secretary19
of the Department of Economic Development has entered into a cooperative20
endeavor agreement with a business entity for purposes of receiving this rebate21
incentive, regardless of whether the contract has been approved by the Joint22
Legislative Committee on the Budget prior to July 1, 2013.23
Section 3. The provisions of this Act shall apply to the renewal of any existing24
contract occurring on or after the effective date of this Act, and any new contract entered25
into on or after the effective date of this Act. 26
Section 4.(A) This Act shall become effective upon signature by the governor or, if27
not signed by the governor, upon expiration of the time for bills to become law without28
signature by the governor, as provided by Article III, Section 18 of the Constitution of29 HLS 13RS-903 REENGROSSED
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Louisiana. If vetoed by the governor and subsequently approved by the legislature, this Act1
shall become effective on the day following such approval.2
(B) This Act shall take effect and become operative only if the proposed3
amendments of the Constitution of Louisiana contained in the Joint Resolutions which4
originated as House Bill Nos. 434, 435, and 436 of this 2013 Regular Session of the5
Legislature are concurred in by both houses of the legislature and House Bill Nos. 1, 437,6
456, 474, 571, 620, 653 and 696 of this 2013 Regular Session of the Legislature are enacted7
into law.8
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)]
Robideaux HB No. 571
Abstract: Provides for eligibility for the Enterprise Zone Program, and temporarily
suspends the Competitive Projects Payroll Incentive Program, the Corporate
Headquarters Relocation Program, and rebates for donations to school tuition
organizations.
Present law establishes the Enterprise Zone Program which provides for tax credits and
rebates for eligible businesses.
Present law grants benefits under the program based on numbers of jobs. Part-time jobs may
be counted for purposes of eligibility.
Proposed law deletes present law authorizing participation based on part-time employees.
Present law provides for specific eligibility criteria with respect to employees in jobs which
are eligible for program benefits. The criteria include a requirement that an employee
receive public assistance prior to employment.
Proposed law retains present law and specifies that the person shall have been receiving
public assistance for six months prior to employment.
Proposed law adds a limitation on eligibility for retail businesses. If such a business has
more than 100 employees nationwide it must be a pharmacy or grocery store located within
an enterprise zone.
Present law authorizes a rebate payment equal to the amount of a donation to a Student
Tuition Organization for purposes of creating scholarships for students at poorly performing
public schools to instead attend nonpublic schools.
Proposed law suspends present law, including the authority to issue or pay a rebate, from
July 1, 2013 through June 30, 2016. Present law shall have full force and effect on July 1,
2016. However, proposed law shall not apply with respect to the satisfaction of any claim
for a rebate based on a donation made between Jan. 1, 2013 and June 30, 2013. HLS 13RS-903 REENGROSSED
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Present law establishes the Competitive Projects Payroll Incentive Program which provides
for rebate payments equal to 15% of payroll expenses for the following types of businesses:
manufacturing of numerous durable goods and pharmaceutical products, conversion of
natural gas to other fuel, data storage, data services, and any activities recommended by the
secretary of the Dept. of Economic Development.
Proposed law suspends present law, including the authority to enter into contracts for rebates
from July 1, 2013 through June 30, 2016. Present law shall have full force and effect on July
1, 2016. However, proposed law shall not apply in cases where the secretary of the Dept.
of Economic Development has entered into a cooperative endeavor agreement with a
business entity for purposes of receiving the rebate incentive authorized under present law,
regardless of whether the contract has been approved by the Joint Legislative Committee on
the Budget prior to July 1, 2013.
Present law establishes the Corporate Headquarters Relocation Program which provides
rebate payments equal to 25% of qualifying relocation expenses for business which move
their corporate headquarters to La. Requirements for participation include the creation of
at least 25 "headquarters jobs".
Proposed law suspends present law, including the authority to enter into contracts for rebates
from July 1, 2013 through June 30, 2016. Present law shall have full force and effect on July
1, 2016. However, proposed law shall not apply in cases where the secretary of the Dept.
of Economic Development has entered into a cooperative endeavor agreement with a
business entity for purposes of receiving the rebate incentive authorized under present law,
regardless of whether the contract has been approved by the Joint Legislative Committee on
the Budget prior to July 1, 2013.
Effective if the proposed amendments of the La. Const. contained in the Joint Resolutions
which originated as HB Nos. 434, 435, and 436 of the 2013 R.S. are concurred in by both
houses of the legislature and HB Nos. 1, 437, 474, 571, 620, 653, and 696 of this 2013 R.S.
are enacted into law.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 51:1787(A)(3) and (B)(3) and 1791; Adds R.S. 47:6302 and R.S. 51:3116 and
3122)
Summary of Amendments Adopted by House
House Floor Amendments to the original bill.
1. Changes eligibility provisions of the Enterprise Zone Rebate Program.
2. Deletes part-time employees from eligibility for participation in the enterprise
zone program.
3. Adds limitation on the participation of certain large retail businesses in the
enterprise zone program.
4. Adds effectiveness provisions, including contingencies regarding other
legislation. HLS 13RS-903 REENGROSSED
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House Floor Amendments to the engrossed bill.
1. Adds to the requirement that an employee be receiving some form of public
assistance for six months prior to employment.
2. Suspends provisions of the Student Tuition Organization rebate program from
July 1, 2013 to June 30, 2016, with certain exceptions.
3. Suspends provisions of the Competitive Projects Payroll rebate program from
July 1, 2013 to June 30, 2016, with certain exceptions.
4. Suspends provisions of the Corporate Headquarters Relocation rebate program
from July 1, 2013 to June 30, 2016, with certain exceptions.