HLS 14RS-2035 ORIGINAL
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Regular Session, 2014
HOUSE BILL NO. 1132
BY REPRESENTATIVE ABRAMSON
FUNDS/FUNDING: Establishes the Louisiana Sports Economic Development Fund
AN ACT1
To enact R.S. 39:100.126(D) and Subpart S of Part II-A of Chapter 1 of Subtitle I of Title2
39 of the Louisiana Revised Statutes of 1950, to be comprised of R.S. 39:100.137,3
relative to state and local funds; to establish the Louisiana Sports Economic4
Development Fund in the state treasury; to provide for the deposit, use, and5
investment of monies in the fund; to provide for definitions; to provide for certain6
determinations; to provide with respect to applications for monies from the fund; to7
provide for the administration of the fund; to provide for effectiveness; and to8
provide for related matters.9
Be it enacted by the Legislature of Louisiana:10
Section 1. R.S. 39:100.126(D) and Subpart S of Part II-A of Chapter 1 of Subtitle I11
of Title 39 of the Louisiana Revised Statutes of 1950, comprised of R.S. 39:100.137, are12
hereby enacted to read as follows: 13
§100.126. Major Events Fund14
* * *15
D. The provisions of this Section shall not apply to any national or collegiate16
sporting event hosted by the state of Louisiana or any political subdivision of the17
state on or after January 1, 2015, which applies for and receives monies from the18
Louisiana Sports Economic Development Fund pursuant to R.S. 39:100.137.19
* * *20 HLS 14RS-2035 ORIGINAL
HB NO. 1132
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SUBPART S. LOUISIANA SPORTS ECONOMIC DEVELOPMENT FUND1
§100.137. Louisiana Sports Economic Development Fund2
A. There is hereby established as a special fund in the state treasury, the3
"Louisiana Sports Economic Development Fund", hereinafter referred to as "the4
fund", which shall consist of a portion of the monies generated as a result of a5
qualified sporting event hosted by the state of Louisiana or any political subdivision6
of the state on or after January 1, 2015. After compliance with the requirements of7
Article VII, Section 9(B) of the Constitution of Louisiana relative to the Bond8
Security and Redemption Fund, the treasurer shall deposit no less than fifty percent9
of the amount of the incremental increase of state and local tax revenues generated10
in the market area of a qualified sporting event hosted by the state or a political11
subdivision of this state into the fund as determined pursuant to the provisions of12
Subsection D of this Section. The monies in the fund shall be invested by the state13
treasurer in the same manner as monies in the state general fund. All interest earned14
from the investment of monies in the fund shall be deposited into and remain in the15
fund. All unexpended and unencumbered monies remaining in the fund at the close16
of each fiscal year shall remain in the fund. Monies in the fund shall be used in17
accordance with the provisions of Subsection C of this Section.18
B. For purposes of this Subpart, the following terms shall have the following19
meanings unless the context clearly indicates otherwise:20
(1) "Local organizing committee" shall mean a nonprofit corporation or its21
successor in interest which is authorized by one or more endorsing parishes or22
municipalities acting collectively to pursue an application and bid on the applicant's23
behalf to a site selection organization for selection as the site of a qualified sporting24
event or has authorization from one or more endorsing parishes or municipalities25
acting collectively to execute an agreement with a site selection organization26
regarding a bid to host a qualified sporting event.27
(2) "Market area" shall mean the geographic boundaries of the parish in28
which the qualified sporting event is held which is chosen by the site selection29 HLS 14RS-2035 ORIGINAL
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organization of the national or collegiate sporting event to host the qualified sporting1
event.2
(3) "Qualified sporting event" shall mean any national or collegiate sporting3
event hosted by the state of Louisiana or any political subdivision of the state on or4
after January 1, 2015, which is not held in Louisiana on an annual basis.5
(4) "Site selection organization" shall mean the national governing body of6
a national sports organization or the governing body of a collegiate sports association7
with authority to select the site of a national or collegiate sporting event.8
C.(1) In order to receive monies from the fund, a local organizing committee9
shall apply for funding with the secretary of the Department of Economic10
Development. The secretary shall establish an application form and an application11
process which shall include all relevant information deemed necessary by the12
secretary in determining if the application meets the criteria necessary to qualify for13
monies from the fund. After receipt of the application, if the secretary of the14
Department of Economic Development determines that the application meets all15
qualifying and funding eligibility requirements provided for in this Section, the16
secretary shall recommend, in writing, to the Joint Legislative Committee on the17
Budget his funding recommendation for the application. The chairman of the Joint18
Legislative Committee on the Budget shall schedule a hearing regarding the funding19
recommendation of the secretary no later than forty-five days following the date of20
receipt of the recommendation from the secretary of the Department of Economic21
Development. If the Joint Legislative Committee on the Budget approves the22
secretary's funding recommendation, the chairman shall notify the state treasurer of23
the committee's approval of monies to be disbursed from the fund.24
(2) The secretary of the Department of Economic Development shall submit25
an annual report to the Joint Legislative Committee on the Budget regarding the26
applications funded throughout the calendar year and the fund balance. The annual27
report shall be submitted no later than the first day of February each year.28 HLS 14RS-2035 ORIGINAL
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(3) Monies in the fund shall be used exclusively to fund the costs associated1
with applying for or bidding for selection of Louisiana or a political subdivision of2
the state as the site of a qualified sporting event, costs associated with necessary3
preparations for the conduct of a qualified sporting event in Louisiana or a political4
subdivision of the state, including construction or renovation of facilities necessary5
for hosting a qualified sporting event, and costs associated with actually conducting6
the qualified sporting event in Louisiana or a political subdivision of the state.7
D.(1) A qualified sporting event shall be eligible for funding from the fund8
under any of the following circumstances:9
(a) A site selection organization selects a site in Louisiana for the qualified10
sporting event after considering, through a highly competitive selection process, one11
or more sites located outside of Louisiana.12
(b) A site selection organization selects a site in Louisiana as the sole site for13
the qualified sporting event.14
(c) The qualified sporting event is not held more than one time in any15
calendar year and is not held in Louisiana on an annual basis.16
(2)(a) If a site selection organization selects a site in Louisiana for a17
qualified sporting event pursuant to an application by a local organizing committee,18
the legislative auditor shall determine for a one-month period prior to the date the19
qualified sporting event begins all of the following:20
(i) The baseline and the incremental increase in the amount of state sales and21
use tax receipts and state hotel occupancy taxes collected within the market area22
directly attributable to the preparation for and presentation of the qualified sporting23
event and its related activities.24
(ii) The baseline and incremental increase in the amount of local sales and25
use tax receipts and local hotel occupancy taxes collected within the market area26
directly attributable to the preparation for and presentation of the qualified sporting27
event and its related activities.28 HLS 14RS-2035 ORIGINAL
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(b) Requests for determination of the baseline and incremental increase1
amounts as provided for in this Paragraph shall be submitted to the legislative auditor2
not earlier than six months prior to the date the qualified sporting event begins. The3
legislative auditor shall issue its determination of the baseline and incremental4
increase amounts no later than sixty days following the date the qualified sporting5
event ends. The legislative auditor shall base its determination of the baseline and6
incremental increase amounts on monthly statements of tax collections of the state,7
parish, and municipal governments within the market area, financial records and8
documentation submitted by the local organizing committee to the site selection9
organization, data obtained by the local organizing committee relating to the10
projected attendance and the potential economic impact of the qualified sporting11
event, and any other documentation the legislative auditor deems necessary to make12
its determination.13
(c) The legislative auditor shall notify the state treasurer, the secretary of the14
Department of Revenue, the secretary of the Department of Economic Development,15
and to the governing authority of the market area in which the qualified sporting16
event is held the amount of the baseline and incremental increase amounts17
determined by his office.18
(3)(a) Once the secretary of the Department of Revenue receives the amount19
of the incremental increase of state tax revenues from the legislative auditor, the20
secretary shall forward no less than fifty percent of the amount of the incremental21
increase to the state treasurer for deposit into the fund. The secretary may enter into22
an agreement with the treasurer to forward such monies over a six-month period.23
(b) Once the governing authority of the market area receives the amount of24
the incremental increase of local tax revenues from the legislative auditor, the25
governing authority of the market area shall forward no less than fifty percent of the26
amount of the incremental increase to the state treasurer for deposit into the fund.27
The governing authority of the market area may enter into an agreement with the28
state treasurer to forward such monies over a six-month period.29 HLS 14RS-2035 ORIGINAL
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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)]
Abramson HB No. 1132
Abstract: Establishes the Louisiana Sports Economic Development Fund to provide
funding for certain costs associated with applying for, bidding on, and hosting
national or collegiate sporting events in Louisiana.
Present law provides for the establishment to the "Major Event Fund" as a special fund in
the state treasury to provide funding for entities within the state for the costs associated with
attracting, hosting, and staging major events of area-wide, statewide, regional, national, or
international prominence. Such funding requires prior approval of the Joint Legislative
Committee on the Budget (JLCB).
Proposed law retains present law but exempts national or collegiate sporting events hosted
by the state or any political subdivision of the state on or after Jan. 1, 2015, which apply for
and receive monies from the Louisiana Sports Economic Development Fund.
Proposed law establishes the "Louisiana Sports Economic Development Fund", hereinafter
referred to as "the fund", as a special fund in the state treasury, which shall consist of a
portion of the monies generated as a result of a qualified sporting event hosted by the state
or any political subdivision of the state on or after Jan. 1, 2015. Requires the treasurer to
deposit no less than 50% of the amount of the incremental increase of state and local tax
revenues generated in the market area of a qualified sporting event hosted by the state or a
political subdivision of this state into the fund as determined pursuant to the provisions of
proposed law.
Proposed law defines "market area" as the geographic boundaries of the parish in which the
qualified sporting event is held which is chosen by the site selection organization of the
national or collegiate sporting event to host the qualified sporting event. Defines "qualified
sporting event" as any national or collegiate sporting event hosted by the state or any
political subdivision of the state on or after Jan. 1, 2015, which is not held in La. on an
annual basis.
Proposed law requires a local organizing committee to apply for funding with the secretary
of the Department of Economic Development (DED). Requires the secretary to establish an
application form and an application process. If the secretary of DED determines that the
application meets all requirements of proposed law, the secretary shall recommend, in
writing, to the JLCB his funding recommendations for the application.
Proposed law requires the chairman of the JLCB to schedule a hearing no later than 45 days
following the date of receipt of the recommendation from DED. If the JLCB approves the
funding recommendation, the chairman shall notify the state treasurer of the committee's
approval to disburse monies from the fund.
Proposed law requires DED to submit an annual report no later than the first day of Feb.
each year to the JLCB regarding applications funded throughout the calendar year and the
fund balance.
Proposed law requires monies in the fund to be used exclusively to fund the costs associated
with applying for or bidding for selection of La. or a political subdivision of the state as the
site of a qualified sporting event, costs associated with necessary preparations for the
conduct of a qualified sporting event, including construction or renovation of facilities, and HLS 14RS-2035 ORIGINAL
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costs associated with actually conducting the qualified sporting event in La. or a political
subdivision of the state.
Proposed law provides for the eligibility of a qualified sporting event to receive monies
from the fund.
Proposed law requires the legislative auditor to determine for a one-month period prior to
the date the qualified sporting event begins the baseline and the incremental increase in the
amount of state and local sales and use tax receipts and state and local hotel occupancy taxes
collected within the market area directly attributable to the preparation for and presentation
of the qualified sporting event and its related activities. Requires the legislative auditor to
issue its determination of the baseline and incremental increase amounts no later than 60
days following the date the qualified sporting event ends.
Proposed law requires the legislative auditor to notify the state treasurer, the secretary of the
Dept. of Revenue (DOR), the secretary of DED, and to the governing authority of the market
area in which the qualified sporting event is held the amount of the baseline and incremental
increase amounts determined by his office.
Proposed law requires DOR and the governing authority for the market area to forward no
less than 50% of the amount of the incremental increase to the state treasurer for deposit into
the fund once these parties receive the legislative auditor's determination of the amount of
the incremental increase in state and local tax revenues. Proposed law authorizes DOR and
the governing authority of the market area to enter into an agreement with the state treasurer
to forward such monies over a six-month period.
(Adds R.S. 39:100.126(D) and 100.137)