HLS 14RS-2172 ORIGINAL
Page 1 of 3
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2014
HOUSE BILL NO. 1093
BY REPRESENTATIVE ARNOLD
DISTRICTS/TAXING: Authorizes certain development districts that receive TIF funding
from a municipality to provide for an audit of related financial activities of the
municipality and other entities that provide such funding
AN ACT1
To enact R.S. 33:9038.1, relative to tax increment financing of certain development districts;2
to authorize such districts to provide for an audit of financial activities, statements,3
and records of the municipality in which the district is located and of other local4
governmental entities related to tax increment financing from which the development5
district receives or should receive funds pursuant to agreements with the6
municipality and other local governmental entities; to provide for such audits; to7
provide for payment of the cost of such audits; and to provide for related matters.8
Be it enacted by the Legislature of Louisiana:9
Section 1. R.S. 33:9038.1 is hereby enacted to read as follows:10
ยง9038.1. Tax increment financing; audits authorized11
A. For purposes of this Section, "development district" means a development12
district that meets all of the following criteria:13
(1) The district was created by law and has a board of commissioners that14
is not the governing authority of a parish or municipality.15
(2) The municipality in which the district is located is authorized to levy16
taxes and incur indebtedness for the benefit of the development district.17
(3) The district receives funds from tax increment financing through18
agreements with the municipality in which it is located.19 HLS 14RS-2172 ORIGINAL
HB NO. 1093
Page 2 of 3
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
B.(1) The governing authority of a development district may provide for an1
audit of certain financial activities, statements, and records of the municipality in2
which it is located and of other entities as provided in this Section. The governing3
authority of a development district may request that the legislative auditor conduct4
such audit, or if the legislative auditor notifies the development district governing5
authority that his office will not perform the audit, the development district6
governing authority may contract with an auditor approved by the legislative auditor7
to conduct such audit.8
(2) An audit conducted pursuant to this Section shall include financial9
activities, statements, and records of the municipality and of other local10
governmental entities related to tax increment financing from which the development11
district receives or should receive funds pursuant to agreements with the12
municipality and other local governmental entities. The audit report shall be in13
compliance with governmental auditing standards and shall call attention to those14
matters required by governmental auditing standards and the Louisiana15
Governmental Audit Guide, including reportable conditions, failure to comply with16
laws and regulations, and such additional matters as may be appropriate. The audit17
report shall make specific recommendations for future avoidance together with the18
response of the municipality and any other entities audited.19
C. The governing authority of a development district may provide for an20
audit as provided in this Section as often as it deems necessary but not more21
frequently than once in a twelve-month period. The development district may use22
any funds of the district for payment of the cost of such audit except taxes dedicated23
to the payment of bonds or indebtedness.24
Section 2. This Act shall become effective upon signature by the governor or, if not25
signed by the governor, upon expiration of the time for bills to become law without signature26
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If27
vetoed by the governor and subsequently approved by the legislature, this Act shall become28
effective on the day following such approval.29 HLS 14RS-2172 ORIGINAL
HB NO. 1093
Page 3 of 3
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
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)]
Arnold HB No. 1093
Abstract: Authorizes certain development districts that receive TIF funding from a
municipality to provide for an audit of related financial activities of the municipality
and other entities that provide such funding to the district.
Proposed law authorizes the governing authority of a development district to provide for an
audit of financial activities, statements, and records of the municipality in which it is located
and of other local governmental entities related to tax increment financing from which the
development district receives or should receive funds pursuant to agreements with the
municipality and other local governmental entities. Authorizes the district governing
authority to request the legislative auditor to conduct such audit, or if the legislative auditor
determines not to perform the audit, authorizes the district governing authority to contract
with an auditor approved by the legislative auditor to conduct such audit.
Proposed law requires that the audit be in compliance with governmental auditing standards
and call attention to matters required by governmental auditing standards and the La.
Governmental Audit Guide including reportable conditions, failure to comply with laws and
regulations, and such additional matters as may be appropriate. Provides that the audit report
make specific recommendations for future avoidance together with the response of the
municipality and any other entities audited.
Proposed law is applicable only to a development district created by law that has a board of
commissioners that is not the governing authority of a parish or municipality and:
(1)The municipality in which the district is located is authorized to levy taxes and incur
indebtedness for the benefit of the district; and
(2)The district receives funds from tax increment financing through agreements with
the municipality in which it is located.
Proposed law authorizes such audits as frequently as the district governing authority deems
necessary but not more frequently than once in a 12-month period. Authorizes the district
to use any district funds to pay audit costs except taxes dedicated to the payment of bonds
or indebtedness.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Adds R.S. 33:9038.1)