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)