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Regular Session, 2013
HOUSE BILL NO. 698
BY REPRESENTATIVE THOMPSON
AN ACT1
To amend and reenact R.S. 47:6102, 6103(A)(1) and (2), and 6109(A) and to enact R.S.2
47:6103(C), relative to income tax credits; to provide relative to school readiness tax3
credits; to provide for certain definitions; to provide for the administration and4
recapture of such credits; to require certain recommendations; to provide for5
effectiveness; and to provide for related matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 47:6102, 6103(A)(1) and (2), and 6109(A) are hereby amended and8
reenacted and R.S. 47:6103(C) is hereby enacted to read as follows:9
§6102. Definitions10
For purposes of this Chapter, the following terms shall have the following11
definitions:12
(1) "Child" or "children" means people who are five years of age or less.13
(2) "Child care facility" means any entity which that the Department of14
Children and Family Services state administrator of the Child Care Development15
Fund determines is eligible to participate in the quality rating system according to16
criteria set forth by rule adopted in the manner provided for in R.S. 47:6103, has17
applied to the Department of Children and Family Services for evaluation under such18
system, and is participating in the system.19
(3) "Child care provider" means a taxpayer who owns an eligible child care20
facility or facilities.21 ENROLLEDHB NO. 698
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(4) "Child care resource and referral agencies" means those agencies with1
whom the Department of Children and Family Services department has contracted2
to provide child care resource and referral.3
(5) "Department" shall mean the state agency designated as the lead agency4
of the Child Care Development Fund and responsible for determining the eligibility5
for the tax credits associated with the fund. 6
(6) "Eligible business child care expenses" means the total of the following7
expenses of a business that supports quality child care as provided for in R.S.8
47:6107:9
(a) For the construction, renovation, expansion, or major repair of an eligible10
child care facility, or for the purchase of equipment for such facility, or for the11
maintenance and operation thereof, not to exceed fifty thousand dollars in expenses12
per tax year.13
(b) For payments made to an eligible child care facility for child care14
services to support employees not to exceed five thousand dollars per child per tax15
year.16
(c) For the purchase of child care slots at eligible child care facilities actually17
provided or reserved for children of employees not to exceed fifty thousand dollars18
per tax year.19
(6) (7) "Eligible child care director" means an individual as defined in Title20
48 of the Louisiana Administrative Code, as amended, enrolled in the state21
practitioner registry developed and maintained by the Department of Children and22
Family Services department, and who is employed in an eligible child care facility23
which participates in the quality rating system.24
(7) (8) "Eligible child care facility" means a child care facility which that has25
applied to the Department of Children and Family Services department for an26
evaluation under its quality rating system and is participating in the quality rating27
system.28 ENROLLEDHB NO. 698
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(8) (9) "Eligible child care staff" means an individual enrolled in the state1
practitioner registry developed and maintained by the Department of Children and2
Family Services department and who is employed in an eligible child care facility3
which participates in the quality rating system and who otherwise meets the4
qualifications provided for in Title 48 of the Louisiana Administrative Code, Chapter5
53, as amended.6
(9)(a) (10)(a) "Quality rating" means the number of "stars" awarded to an7
eligible child care facility by the quality rating system.8
(b) The quality rating of the facility shall be based on the initial rating of the9
facility if it is the facility's first year participating in the quality rating system.10
Thereafter, the quality rating shall be the rating of the facility as of July first of each11
year.12
(10) (11) "Quality rating system" means a rule promulgated by the13
Department of Children and Family Services department implementing the Louisiana14
Quality Rating System which establishes criteria for evaluating and rating the quality15
of an eligible child care facility in terms of the award of "stars", with five "stars"16
being the highest quality child care facility.17
(12) "Tiered Kindergarten Readiness Improvement System" means the18
system established pursuant to R.S. 17:407.23.19
(13) "The Early Childhood Care and Education Network" means the network20
established pursuant to R.S. 17:407.23.21
(14) "Eligible early childhood learning centers" means successful early22
childhood learning centers according to rules and regulations promulgated by the23
State Board of Elementary and Secondary Education for the Tiered Kindergarten24
Readiness Improvement System, and that maintain a Type III license.25
§6103. Implementation26
A.(1) The Department of Children and Family Services department, in27
consultation with the Department of Revenue, shall promulgate rules and regulations28 ENROLLEDHB NO. 698
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for the purpose of developing and implementing the provisions of this Chapter in1
accordance with the provisions of the Administrative Procedure Act.2
(2) The Department of Children and Family Services department is3
authorized to use the emergency rulemaking process for the first set of rules4
developing and implementing this Chapter. Prior to adoption of the emergency rule,5
the department shall provide written notification that it intends to publish such rule6
in the State Register and the rule shall be subject to approval by the Senate7
Committee on Revenue and Fiscal Affairs and the House Committee on Ways and8
Means. However, if such committees do not take action on the rule within sixty days9
of publication in the State Register, the rule shall become effective.10
* * *11
C. The department, in collaboration with the State Board of Elementary and12
Secondary Education, shall make recommendations for legislation no later than13
January 1, 2015, to align the tax credits provided for in this Chapter with the Early14
Childhood Care and Education Network, which promotes kindergarten readiness in15
eligible early childhood learning centers and which evaluates eligible centers16
utilizing the letter grade system adopted through rules promulgated by the State17
Board of Elementary and Secondary Education for determining the success of an18
eligible center.19
* * *20
§6109. Recapture of credits21
A. If the Department of Children and Family Services or the Department of22
Revenue find Department of Revenue or the department find that a child care23
facility, a business, or an individual has obtained a tax credit in violation of the24
provisions of this Chapter, including but not limited to fraud or misrepresentation,25
then the taxpayer's state income tax for such taxable period shall be increased by26
such amount necessary for the recapture of the tax credit provided for in this27
Chapter.28
* * *29 ENROLLEDHB NO. 698
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Section 2. This Act shall become effective on July 1, 2013; if vetoed by the1
governor and subsequently approved by the legislature, this Act shall become effective on2
July 1, 2013, or on the day following such approval by the legislature, whichever is later.3
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: