Page 1 of 3
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2014 ENROLLED
SENATE BILL NO. 338
BY SENATOR DONAHUE
AN ACT1
To enact R.S. 24:653(M), relative to duties and function of the Joint Legislative Committee2
on the Budget; to provide relative to economic reports for projects submitted in3
conjunction with the request for approval of the Joint Legislative Committee on the4
Budget; to provide for an effective date; and to provide for related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 24:653(M) is hereby enacted to read as follows:7
ยง653. Duties and functions8
* * *9
M.(1) All economic and financial reports for projects submitted in10
conjunction with the request for approval of the Joint Legislative Committee11
on the Budget in excess of a total state commitment of ten million dollars for the12
term of the project shall provide the following information:13
(a) Inclusion of all input information, data, and assumptions, including14
but not limited to data sources, economic growth assumptions, and an15
assessment/basis of the reasonableness of each.16
(b) A description of the analytical model employed for the report and17
how each input was utilized with that model.18
(c) Results in terms of value-added, household earnings, and19
employment, and a description of each concept.20
(d) Results by industry sector, with an assessment of possible adverse21
effects on sectors that compete with the subsidized company for in-state22
customers.23
(e) Explicit identification of the project's effect on direct expenditure24
requirements in the state budget or any reduction in taxes or state revenues,25
including but not limited to tax exemptions, exclusions, deductions, reductions,26
repeals, rebates, incentives, abatements, or credits.27
ACT No. 704 SB NO. 338 ENROLLED
Page 2 of 3
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
(f) An additional assessment by the secretary of the Department of1
Economic Development regarding the extent to which the project would not2
have occurred but for the proposed state financial support. The secretary's3
assessment shall reference other business factors which contributed to the4
project activity occurring and factors which will be required for ongoing5
sustainability including but not limited to labor, transportation, energy, among6
others.7
(g) Cost/benefit comparisons of the incentives in the package compared8
to the costs in the package shall be for the same period of time or the same term,9
both for the direct benefits to the state as well as the indirect benefits to the10
state.11
(2)(a) The department shall submit the request for Joint Legislative12
Committee on the Budget approval of the project with the analysis to the13
committee for its review at least seventeen business days, or as permitted by the14
chairman, prior to the meeting for which the department is seeking the15
committee's approval. In the event that the chairman specifies a request16
submission period that is less than seventeen business days, the chairman shall17
notify all members of the committee of the revised submission time period.18
Presentation of the information required shall be in a format developed by the19
department in consultation with the Legislative Fiscal Office and the Joint20
Legislative Committee on the Budget.21
(b) Upon receipt of the request, the Joint Legislative Committee on the22
Budget shall transmit the report to the legislative fiscal office for evaluation of23
the department's assessment and the legislative fiscal office shall make such24
information available to the committee during its review.25
(3) For the purposes of this Section and notwithstanding any other26
provision of law to the contrary, "project" shall mean any public-private27
partnership, agreement with a nonpublic party, lease, cooperative endeavor28
agreement, memorandum of understanding, or other contractual agreement29
which would result in or is expected to result in the obligation of state resources30 SB NO. 338 ENROLLED
Page 3 of 3
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
or the expenditure of revenues from the operation, management, or control of1
a state resource for the purposes of engendering economic growth or2
development in the state through the utilization of certain incentives, including3
but not limited to tax exemptions, exclusions, deductions, reductions, repeals,4
rebates, incentives, abatements, or credits.5
Section 2. This Act shall become effective on July 1, 2014; if vetoed by the governor6
and subsequently approved by the legislature, this Act shall become effective on July 1,7
2014, or on the day following such approval by the legislature, whichever is later.8
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: