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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 HLS 14RS-2172 ENGROSSED
HB NO. 1093
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(3) The district receives funds from tax increment financing through1
agreements with the municipality in which it is located.2
B.(1) The governing authority of a development district may provide for an3
audit of certain financial activities, statements, and records of the municipality in4
which it is located and of other entities as provided in this Section. The governing5
authority of a development district may request that the legislative auditor conduct6
such audit, in accordance with the provisions of R.S. 24:513, or if the legislative7
auditor notifies the development district governing authority that his office will not8
perform the audit, the development district governing authority may contract with9
an auditor approved by the legislative auditor to conduct such audit, in accordance10
with the provisions of R.S. 24:513.11
(2) An audit conducted pursuant to this Section shall include financial12
activities, statements, and records of the municipality and of other local13
governmental entities related to tax increment financing from which the development14
district receives or should receive funds pursuant to agreements with the15
municipality and other local governmental entities. The audit report shall be in16
compliance with governmental auditing standards and shall call attention to those17
matters required by governmental auditing standards and the Louisiana18
Governmental Audit Guide, including reportable conditions, failure to comply with19
laws and regulations, and such additional matters as may be appropriate. The audit20
report shall make specific recommendations for future avoidance together with the21
response of the municipality and any other entities audited.22
C. The governing authority of a development district may provide for an23
audit as provided in this Section as often as it deems necessary but not more24
frequently than once in a twelve-month period. The development district may use25
any funds of the district for payment of the cost of such audit except taxes dedicated26
to the payment of bonds or indebtedness.27
Section 2. This Act shall become effective upon signature by the governor or, if not28
signed by the governor, upon expiration of the time for bills to become law without signature29 HLS 14RS-2172 ENGROSSED
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by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If1
vetoed by the governor and subsequently approved by the legislature, this Act shall become2
effective on the day following such approval.3
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 in accordance with the
provisions of present law relative to the powers of the auditor, 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 in accordance with
the provisions of present law relative to the powers of the auditor.
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) HLS 14RS-2172 ENGROSSED
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Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Municipal, Parochial and
Cultural Affairs to the original bill.
1. Adds references to present law regarding the authority of the auditor.