The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Riley Boudreaux.
DIGEST
Heitmeier SR No. 110 15
Present Senate Rule [No. 9.1] contains the constitutional requirement that constitutional
amendments be prefiled no later than 10 days before the beginning of a regular session, and that
bills relative to retirement be prefiled 45 days prior to a regular session.
Proposed Senate Rule requires any legislative instrument which is likely to cause a net decrease
in taxes, fees, charges or other revenue of the state of $10 million or more in any one of the 5
ensuing fiscal years from its effective date to be filed on or before January 15
th
with the report
required below attached.
Proposed Senate Rule requires any legislative instrument which is likely to cause a net decrease
in taxes, fees, charges or other revenue of the state of $10 million or more in any one of the 5
ensuing fiscal years from its effective date to be filed with a report prepared by the author of the
instrument, or by a proponent of the instrument on the author's behalf, relative to the economic
effects of the enactment of the legislative instrument.
The LFO with the assistance of the Department of Revenue [DOR] is required to review the
report and prepare a "revenue loss note" which sets forth a brief and concise summary of the
results of its review of the economic effects report.
The "revenue loss note" must be attached to any legislative instrument which produces a net
decrease in state revenues of $10 million or more in any one of the 5 ensuing fiscal years from its
effective date prior to its consideration by any committee of the Senate, unless the committee
otherwise decides, and prior to its consideration on final passage by the Senate. In addition, the
President of the Senate, the Secretary, or any Senator may offer a motion at any time that a
legislative instrument requiring the revenue loss note without such a note attached be deferred
until the preparation of such revenue loss note.
However, the proposed Senate Rule provides that the preparation of a revenue loss note by the
LFO for an instrument not prefiled as required in the proposed Senate Rule, or for an instrument
filed without the report required by the proposed Senate Rule attached, must not take precedence
over the preparation of any fiscal note or revenue loss note of an instrument properly prefiled
with the report attached. The preparation of such revenue loss note may take place after the
conclusion of the session in which the legislative instrument was introduced.
Proposed Senate Rule requires the economic effects report attached to the instrument to contain
the following:
(1)The total decrease in taxes, fees, charges or other revenue estimated over the 5 ensuing fiscal years from the instrument's effective date.
(2)The state's revenue loss ratio; that is, the amount of money to be gained by the state
compared to the cost of the benefit granted.
(3)The effect on household earnings, employment, and value added in Louisiana.
(4)An indication of which beneficial economic actions will be incentivized by the
instrument.
(5)Data indicating whether the same or similar instruments have been enacted in other states
or territories of the United States or other nations.
(6)The methodology and assumptions utilized to produce the information in the report.
The LFO's review of the economic effects report attached to the instrument must encompass all
aspects of the report including, but not limited to the following:
(1)The reasonableness of the revenue loss estimates.
(2)A reference to the legislative fiscal office's estimate of the state's revenue loss expected
from the enactment of the legislative instrument in the fiscal note prepared for the
instrument.
(3)The validity, credibility, or reasonableness of the information in the report or the
methodology and assumptions utilized to produce the information, or questions raised by
such information, assumptions, or methodology.
(4)Whether the actions being incentivized are already occurring without the enactment of the
instrument.
(5)A report and review by the Department of Revenue of the data in the report and from
other sources as to whether the same or similar instruments have been enacted in other
states or territories of the United States or other nations.
(6)Any other information not included in the report which may have a bearing on the
question of whether the legislative instrument should be enacted.
(Amends Senate Rule Nos. 9.1(A) and 13.95(A); adds Senate Rule No. 7.14.1)