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Regular Session, 2013 ENROLLED
SENATE BILL NO. 196
BY SENATORS DONAHUE, JOHNS AND MI LLS
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
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
impact not only for revenue and expenditure costs to state departments,18
agencies, and higher education institutions throughout the state, but also session19
subject matter, including but not limited to tax increases, decreases, fee20
increases and repeals, tax exemptions, suspensions, credits, rebates, exclusions,21
and deductions, among others. The legislature hereby finds that in order to22
properly track and assess the impact of legislation over time, it is necessary to23
periodically evaluate the extent to which fiscal impacts have changed from the24
ACT No. 96 SB NO. 196 ENROLLED
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original estimates. The management of state resources requires a comparative1
review of the growth of initial projections to actual year-end results. When2
expenditure and revenue initiatives exceed original estimates, the maintenance3
of balanced budgets becomes exceedingly difficult to achieve. To address this4
issue, the Joint Legislative Committee on the Budget should require an annual5
examination of the estimated results compared to actual implemented results.6
The review of intended versus actual results should apply to both state7
departments, agencies, boards, and commissions, as well as higher education8
institutions. A process for review shall be established by the Joint Legislative9
Committee on the Budget and all findings shall be reported to all members of10
the legislature.11
(2) As provided by R.S. 17:3351(F), beginning October 1, 2013, and each12
year thereafter, the Board of Regents shall review the reports of legislation with13
significant fiscal impact submitted by the various public postsecondary14
education management boards. After the Board of Regents has performed its15
review of the reports submitted by the management boards, the reports shall be16
submitted to the Joint Legislative Committee on the Budget by October17
thirtieth of each year as required by R.S. 24:653(L).18
* * *19
§3351. General powers, duties, and functions of college and university boards20
* * *21
F. Each public postsecondary education management board shall22
annually conduct a review to identify any legislation that has been implemented23
and has been operational for at least six months in the prior year that affects the24
board or the institutions under its control and has a fiscal impact which has25
increased by the amount of one million dollars or more over the amount of the26
fiscal note as the bill was enacted. The analysis should also report the impact27
to the higher education institutions in terms of operations and personnel. Each28
management board shall compile the report and submit the report to the Board29
of Regents by September thirtieth of each year in accordance with the30 SB NO. 196 ENROLLED
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provisions of R.S. 17:3130(C). The report shall be in a manner as provided by1
R.S. 24:653(L)(2).2
Section 2. R.S. 24:653(L) is hereby enacted to read as follows:3
§653. Duties and functions4
* * *5
L.(1)(a) Upon receipt of the reports from the various departments6
within the executive branch of state government as provided by R.S. 36:8(A)(6)7
and the public postsecondary education management boards as provided by8
R.S. 17:3130(C) and 3351(F), the Joint Legislative Committee on the Budget9
shall transmit the reports to the legislative fiscal office for review and analysis10
and may conduct hearings to review the reports.11
(b) The legislative fiscal office shall review the reports and perform any12
additional analysis of the reports that is necessary to provide an accurate actual13
estimate as compared to the fiscal note as the bill was enacted.14
(2) The reports required to be submitted under this Section shall be in15
a manner as prescribed by the chairman of the Joint Legislative Committee on16
the Budget and shall be accompanied by such other information as the17
chairman may require. At a minimum, the report shall present the differences18
between the original estimate as the bill was enacted and the actual current19
revenues or expenditures. Depending upon the scope of the original legislation,20
the comparisons between the fiscal note as the bill was enacted and the actual21
amounts shall include but not be limited to tax increases, decreases, fee22
increases and repeals, tax exemptions, suspensions, credits, rebates, exclusions,23
and deductions, among others.24
(3) No later than February first of each year, the committee shall report25
its findings in a public meeting relative to any legislation that has been enacted26
that affects state revenues, public postsecondary education management boards27
and the related institutions or the various departments and the related entities28
and that legislation has a fiscal impact which has increased by the amount of29
one million dollars or more over the amount of the fiscal note as the bill was30 SB NO. 196 ENROLLED
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enacted. The review and analysis shall also examine the receipt, expenditure,1
allocation, dedication, or means of financing to determine specifically how the2
increases impact state revenue, the departments, agencies, boards, commissions,3
and like entities within the executive branch of state government, as well as4
among the public postsecondary education institutions of the state. The Joint5
Legislative Committee on the Budget shall transmit copies of the final report to6
the governor, the president of the Senate, and the speaker of the House of7
Representatives, and distribute a copy to each member of the legislature.8
Section 3. R.S. 36:8(A)(6) is hereby enacted to read as follows:9
§8. Fiscal oversight and program evaluation10
A. In discharging the responsibilities of accounting and budget control and11
management and program analysis, the undersecretary shall have the following12
powers:13
* * *14
(6)(a) Each undersecretary under this Section shall conduct a review and15
analyze the department and its revenues, agencies, the various boards,16
commissions, and other such entities that may be attached to the department.17
The review and analysis conducted by the undersecretary shall identify any18
legislation which has been implemented and has been operational for at least six19
months in the prior year that affects the department, its revenue, agencies, or20
other entities under its control and has a fiscal impact which has increased by21
the amount of one million dollars or more over the amount of the fiscal note as22
the bill was enacted. The review and analysis shall also examine the impact to23
the department and its related entities in terms of operations or personnel.24
Each undersecretary shall compile the report and submit it to the department25
secretary. The report shall be in a manner as provided by R.S. 24:653(L)(2).26
The secretary shall review the report and submit the report to the commissioner27
of administration no later than September thirtieth of each year.28
(b) The commissioner of administration shall review the reports as29
required by Subparagraph (a) of this Paragraph, and shall submit all reports30 SB NO. 196 ENROLLED
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from the departments to the Joint Legislative Committee on the Budget by1
October thirtieth of each year in accordance with the provisions of R.S.2
24:653(L).3
Section 4. This Act shall become effective on July 1, 2013; if vetoed by the governor4
and subsequently approved by the legislature, this Act shall become effective on July 1,5
2013, or on the day following such approval by the legislature, whichever is later.6
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: