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Regular Session, 2013
SENATE BILL NO. 196
BY SENATOR DONAHUE
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
FISCAL CONTROLS. Provides for the annual reporting to the Joint Legislative Committee
on the Budget by departments and public postsecondary education management boards on
enacted legislation with significant fiscal impact. (7/1/13)
AN ACT1
To enact R.S. 17:3130(C) and 3351(F), R.S. 24:653(L), and R.S. 36:8(A)(6), relative to2
fiscal oversight; to provide for the annual reporting by executive branch departments3
and public postsecondary education management boards to the Joint Legislative4
Committee on the Budget on enacted legislation with significant fiscal impact that5
exceeds original estimates; to provide for the review and analysis of such reports by6
the Joint Legislative Committee on the Budget; to provide for an effective date; and7
to provide for related matters.8
Be it enacted by the Legislature of Louisiana:9
Section 1. R.S. 17:3130(C) and 3351(F) are hereby enacted to read as follows:10
§3130. Other powers11
* * *12
(C)(1) The legislature hereby finds that it is critical to utilize a tool such13
as Joint Rule No. 4 which is an established process for the development and14
preparation of fiscal notes by the legislative auditor or the legislative fiscal office15
to estimate the cost for a five-year period of time during deliberations on16
instruments of a fiscal nature. These fiscal notes provide estimates of the17 SB NO. 196
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impact not only for revenue and expenditure costs to state departments,1
agencies, and higher education institutions throughout the state, but also session2
subject matter, including but not limited to tax increases, decreases, fee3
increases and repeals, tax exemptions, suspensions, credits, rebates, exclusions,4
and deductions, among others. The legislature hereby finds that in order to5
properly track and assess the impact of legislation over time, it is necessary to6
periodically evaluate the extent to which fiscal impacts have changed from the7
original estimates. The management of state resources requires a comparative8
review of the growth of initial projections to actual year-end results. When9
expenditure and revenue initiatives exceed original estimates, the maintenance10
of balanced budgets becomes exceedingly difficult to achieve. To address this11
issue, the Joint Legislative Committee on the Budget should require an annual12
examination of the estimated results compared to actual implemented results.13
The review of intended versus actual results should apply to both state14
departments, agencies, boards, and commissions, as well as higher education15
institutions. A process for review shall be established by the Joint Legislative16
Committee on the Budget and all findings shall be reported to all members of17
the legislature.18
(2) As provided by R.S. 17:3351(F), beginning October 1, 2013, and each19
year thereafter, the Board of Regents shall review the reports of legislation with20
significant fiscal impact submitted by the various public postsecondary21
education management boards. After the Board of Regents has performed its22
review of the reports submitted by the management boards, the reports shall be23
submitted to the Joint Legislative Committee on the Budget by October 30 of24
each year as required by R.S. 24:653(L).25
* * *26
§3351. General powers, duties, and functions of college and university boards27
* * *28
(F) Each public postsecondary education management board shall29 SB NO. 196
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annually conduct a review to identify any legislation which has been1
implemented and has been operational for at least six months in the prior year2
that affects the board or the institutions under its control and has a fiscal3
impact which has increased by the amount of one million dollars or more over4
the amount of the fiscal note as the bill was enacted. The analysis should also5
report the impact to the higher education institutions in terms of operations and6
personnel. Each management board shall compile the report and submit the7
report to the Board of Regents by September 30 of each year in accordance with8
the provisions of R.S. 17:3130(C). The report shall be in a manner as provided9
by R.S. 24:653(L)(2).10
Section 2. R.S. 24:653(L) is hereby enacted to read as follows:11
§653. Duties and functions12
* * *13
(L)(1)(a) Upon receipt of the reports from the various departments14
within the executive branch of state government as provided by R.S. 36:8(A)(6)15
and the public postsecondary education management boards as provided by16
R.S. 17:3130(C) and 3351(F), the Joint Legislative Committee shall transmit the17
reports to the legislative fiscal office for review and analysis and conduct18
hearings to review the reports.19
(b) The legislative fiscal office shall review the reports and perform any20
additional analysis of the reports that is necessary to provide an accurate actual21
estimate as compared to the fiscal note as the bill was enacted.22
(2) The reports required to be submitted under this Section shall be in23
a manner as prescribed by the chairman of the Joint Legislative Committee on24
the Budget and shall be accompanied by such other information as the25
chairman may require. At a minimum, the report shall present the differences26
between the original estimate as the bill was enacted and the actual current27
revenues or expenditures. Depending upon the scope of the original legislation,28
the comparisons between the enacted fiscal note and the actual amounts shall29 SB NO. 196
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include but not be limited to tax increases, decreases, fee increases and repeals,1
tax exemptions, suspensions, credits, rebates, exclusions, and deductions, among2
others.3
(3) No later than February 1 of each year, the committee shall report its4
findings in a public meeting relative to any legislation which has been enacted5
that affects state revenues, public postsecondary education management boards6
and the related institutions or the various departments and the related entities7
and which legislation has a fiscal impact which has increased by the amount of8
one million dollars or more over the amount of the fiscal note as the bill was9
enacted. The review and analysis shall also examine the receipt, expenditure,10
allocation, dedication, or means of financing to determine specifically how the11
increases impact state revenue, the departments, agencies, boards, commissions,12
and like entities within the executive branch of state government, as well as13
among the public postsecondary education institutions of the state. The Joint14
Legislative Committee on the Budget shall transmit copies of the final report to15
the governor, the president of the Senate, and the speaker of the House of16
Representatives, and distribute a copy to each member of the legislature.17
Section 3. R.S. 36:8(A)(6) is hereby enacted to read as follows:18
§8. Fiscal oversight and program evaluation19
A. In discharging the responsibilities of accounting and budget control and20
management and program analysis, the undersecretary shall have the following21
powers:22
* * *23
(6)(a) Each undersecretary under this Section shall conduct a review and24
analyze the department and its revenues, agencies, the various boards,25
commissions, and other such entities that may be attached to the department.26
The review and analysis conducted by the undersecretary shall identify any27
legislation which has been implemented and has been operational for at least six28
months in the prior year that affects the department, its revenue, agencies, or29 SB NO. 196
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other entities under its control and has a fiscal impact which has increased by1
the amount of one million dollars or more over the amount of the fiscal note as2
the bill was enacted. The review and analysis shall also examine the impact to3
the department and its related entities in terms operations or personnel. Each4
undersecretary shall compile the report and submit it to the department5
secretary. The report shall be in a manner as provided by R.S. 24:653(L)(2).6
The secretary shall review the report and submit the report to the commissioner7
of administration no later than September 30 of each year.8
(b) The commissioner of administration shall review the reports as9
required by Subparagraph (a) of this Paragraph, and shall submit all reports10
from the departments to the Joint Legislative Committee on the Budget by11
October 30 of each year in accordance with the provisions of R.S. 24:653(L).12
Section 4. This Act shall become effective on July 1, 2013; if vetoed by the governor13
and subsequently approved by the legislature, this Act shall become effective on July 1,14
2013, or on the day following such approval by the legislature, whichever is later.15
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Jay Lueckel.
DIGEST
Proposed law provides for legislative intent that to properly track and assess the impact of
legislation over time, it is necessary to periodically evaluate the extent to which fiscal
impacts have changed from the original estimate.
Proposed law provides that Each public postsecondary education management board shall
annually conduct a review to identify any legislation which has been enacted in the prior
year that affects the board or the institutions under its control and has a fiscal impact which
has increased by the amount of one million dollars or more over the amount of the fiscal note
as the bill was enacted. Each management board shall compile the report and submit the
report to the Board of Regents by September 30 of each year. The report shall be in a
manner as prescribed by the Joint Legislative Committee on the Budget and shall be
accompanied by such other information as the committee may require.
Proposed law provides that beginning October 1, 2013, and each year thereafter, the Board
of Regents shall review the reports of legislation with significant fiscal impact submitted by
the various public postsecondary education management boards. After the Board of Regents
has performed its review of the reports submitted by the management boards, the reports
shall be submitted to the Joint Legislative Committee on the Budget by October 30 of each
year.
Proposed law provides that upon receipt of the reports from the various departments within
the executive branch of state government, the Joint Legislative Committee shall transmit the SB NO. 196
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reports to the legislative fiscal office for review and analysis. The legislative fiscal office
shall review the reports and perform any additional analysis of the reports that is necessary
to provide an accurate actual estimate as compared to the fiscal note as the bill was enacted.
Proposed law provides that the reports required to be submitted shall be in a manner as
prescribed by the chairman of the Joint Legislative Committee on the Budget and shall be
accompanied by such other information as the chairman may require. At a minimum, the
report shall present the differences between the original estimate as the bill was enacted and
the actual current estimate of revenues or expenditures. Depending upon the scope of the
original legislation, the comparisons between the enacted fiscal note and the actual amounts
shall include but not be limited to tax increases, decreases, fee increases and repeals, tax
exemptions, suspensions, credits, rebates, exclusions, deductions, among others.
Proposed law further provides that the committee shall hold a public hearing, and no later
than February 1 of each year, the committee shall report its findings and shall transmit
copies of the final report to the governor, the president of the Senate, the speaker of the
House of Representatives, and distribute a copy to each member of the legislature.
Proposed law provides that each undersecretary shall identify any legislation which has been
enacted in the prior year that affects the department, agencies, or other entities under its
control and has a fiscal impact which has increased by the amount of one million dollars or
more over the amount of the fiscal note as the bill was enacted. Each undersecretary shall
compile the report and submit it to the department secretary. The report shall be in a manner
prescribed by the Joint Legislative Committee on the Budget and shall be accompanied by
such other information as the committee may require. The secretary shall review the report
and submit the report to the commissioner of administration no later than September 30 of
each year.
Effective July 1, 2013; if vetoed by the governor and subsequently approved by the
legislature, this Act shall become effective on July 1, 2013, or on the day following such
approval by the legislature, whichever is later.
(Adds R.S. 17:3130(C) and 3351(F), R.S. 24:653(L), and R.S. 36:8(A)(6))