ENROLLED
Page 1 of 2
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
ACT No. 667
Regular Session, 2014
HOUSE BILL NO. 1093
BY REPRESENTATIVE ARNOLD
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
B.(1) The governing authority of a development district may provide for an20
audit of certain financial activities, statements, and records of the municipality in21
which it is located and of other entities as provided in this Section. The governing22
authority of a development district may request that the legislative auditor conduct23
such audit, in accordance with the provisions of R.S. 24:513, or if the legislative24
auditor notifies the development district governing authority that his office will not25
perform the audit, the development district governing authority may contract with26 ENROLLEDHB NO. 1093
Page 2 of 2
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
an auditor approved by the legislative auditor to conduct such audit, in accordance1
with the provisions of R.S. 24:513.2
(2) An audit conducted pursuant to this Section shall include financial3
activities, statements, and records of the municipality 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. The audit report shall be in7
compliance with governmental auditing standards and shall call attention to those8
matters required by governmental auditing standards and the Louisiana9
Governmental Audit Guide, including reportable conditions, failure to comply with10
laws and regulations, and such additional matters as may be appropriate. The audit11
report shall make specific recommendations for future avoidance together with the12
response of the municipality and any other entities audited.13
C. The governing authority of a development district may provide for an14
audit as provided in this Section as often as it deems necessary but not more15
frequently than once in a twelve-month period. The development district may use16
any funds of the district for payment of the cost of such audit except taxes dedicated17
to the payment of bonds or indebtedness.18
Section 2. This Act shall become effective upon signature by the governor or, if not19
signed by the governor, upon expiration of the time for bills to become law without signature20
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If21
vetoed by the governor and subsequently approved by the legislature, this Act shall become22
effective on the day following such approval.23
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: