Donahue (SB 338) Act No. 704
New law provides that all economic and financial reports for projects in excess of a total
state commitment of $10 million for the term of the project submitted in conjunction with
the request for approval of the Joint Legislative Committee on the Budget (JLCB) shall
provide the following information:
(1)Inclusion of all input information, data, and assumptions, including but not limited
to data sources, economic growth assumptions, and an assessment/basis of the
reasonableness of each.
(2)A description of the analytical model employed for the report and how each input
was utilized with that model.
(3)Results in terms of value-added, household earnings, and employment, and a
description of each concept.
(4)Results by industry sector, with an assessment of possible adverse effects on sectors
that compete with the subsidized company for in-state customers.
(5)Explicit identification of the project's effect on direct expenditure requirements in the
state budget or any reduction in taxes or state revenues, including but not limited to
tax exemptions, exclusions, deductions, reductions, repeals, rebates, incentives,
abatements, or credits.
(6)An additional assessment by the secretary of the Department of Economic
Development regarding the extent to which the project would not have occurred but
for the proposed state financial support. The secretary's assessment shall reference
other business factors which contributed to the project activity occurring and factors
which will be required for ongoing sustainability including but not limited to labor,
transportation, energy, among others.
(7)Cost/benefit comparisons of the incentives in the package compared to the costs in
the package shall be for the same period of time or the same term, both for the direct
benefits to the state as well as the indirect benefits to the state.
New law requires the department to submit the request to the committee at least seventeen
business days, or as permitted by the chairman prior to the meeting for which the department
is seeking the committee's approval and provides for notification of the JLCB membership
if the time period for submission is shortened. Requires that information submitted be in a
format developed by the department in consultation with the Legislative Fiscal Office and
JLCB.
New law provides that the JLCB shall transmit the report to the legislative fiscal office for
evaluation of the department's assessment upon receipt of the request. Further provides that
the legislative fiscal office shall make such information available to the committee during
its review.
Clarifies definition of project to include various agreements with nonpublic parties which
would result in the obligation of state resources for the purposes of engendering economic
growth or development in the state through the utilization of certain incentives.
Effective July 1, 2014.
(Adds R.S. 24:653(M))