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Regular Session, 2014
SENATE BILL NO. 543
BY SENATORS DONAHUE, ALLAIN, BUFFINGTON, CHABERT, CLAITOR, JOHNS,
LAFLEUR, MILLS, MURRAY, TARVER AND WHITE
FISCAL CONTROLS. Provides with respect to the state budget. (7/1/14)
AN ACT1
To amend and reenact R.S. 39:34(A) and 56(A) and to enact R.S. 39:2(15.1) and (15.2),2
24.1, 36(A)(7), and 51(A)(5), relative to budgetary procedures; to define incentive3
expenditures; to provide for inclusion in the incentive expenditure forecast, the4
executive budget, the general appropriation bill, other appropriation bills, and the5
state budget of incentive expenditures; to provide for an effective date; and to6
provide for related matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1. R.S. 39:34(A) and 56(A) are hereby amended and reenacted and R.S.9
39:2(15.1) and (15.2), 24.1, 36(A)(7), and 51(A)(5) are hereby enacted to read as follows:10
§2. Definitions11
As used in this Chapter, except where the context clearly requires otherwise,12
the words and expressions defined in this Section shall be held to have the meanings13
here given to them.14
* * *15
(15.1) "Incentive expenditures" means the reductions of and payments16
from current tax collections because of the following incentive benefit statutes:17 SB NO. 543
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(a) Atchafalaya Trace Heritage Area Development Zone Tax Exemption1
(Part II of Chapter 26 of Title 25 of the Louisiana Revised Statutes of 1950,2
comprised of R.S. 25:1226 et seq.).3
(b) Brownfields Investor Tax Credit (R.S. 47:6021).4
(c) Cane River Heritage Tax Credit (R.S. 47:6026).5
(d) Louisiana Community Economic Development (R.S. 47:6031).6
(e) Ports of Louisiana Tax Credit (R.S. 47:6036).7
(f) Motion Picture Investor Tax Credit (R.S. 47:6007).8
(g) Research and Development Tax Credit (R.S. 47:6015).9
(h) Digital Interactive Media and Software Tax Credit (R.S. 47:6022).10
(i) Louisiana Motion Picture Incentive Program (Chapter 12 of Subtitle11
II of Title 47 of the Louisiana Revised Statutes of 1950, comprised of R.S.12
47:1121 et seq.).13
(j) Louisiana Capital Companies Tax Credit Program (Chapter 26 of14
Title 51 of the Louisiana Revised Statutes of 1950, comprised of R.S. 51:1921 et15
seq.).16
(k) New Markets Tax Credit (R.S. 47:6016).17
(l) University Research and Development Parks (R.S. 17:3389).18
(m) Industrial Tax Equalization Program (Chapter 1 of Subtitle V of19
Title 47 of the Louisiana Revised Statutes of 1950, comprised of R.S. 47:320120
through 3205).21
(n) Exemptions for Manufacturing Establishments (Chapter 3 of Subtitle22
V of Title 47 of the Louisiana Revised Statutes of 1950, comprised of R.S.23
47:4301through 4306).24
(o) Enterprise Zones (Chapter 21 of Title 51 of the Louisiana Revised25
Statutes of 1950, comprised of R.S. 51:1781 et seq.).26
(p) Sound Recording Investor Tax Credit (R.S. 47:6023).27
(q) Urban Revitalization Tax Incentive Program (Chapter 22 of Title 5128
of the Louisiana Revised Statutes of 1950, comprised of R.S. 51:1801).29 SB NO. 543
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(r) Technology Commercialization Credit and Jobs Program (Part VI of1
Chapter 22 of Title 51 of the Louisiana Revised Statutes of 1950, comprised of2
R.S. 51:2351 et seq.).3
(s) Angel Investor Tax Credit Program (R.S. 47:6020).4
(t) Musical and Theatrical Productions Tax Credit (R.S. 47:6034).5
(u) Retention and Modernization Credit (Chapter 39-C of Title 51 of the6
Louisiana Revised Statutes of 1950, comprised of R.S. 51:2399.1 through7
2399.6).8
(v) Green Jobs Industries Credit (R.S. 47:6037).9
(w) Louisiana Quality Jobs Program (R.S. 51:2451 et seq.).10
(x) Corporate Headquarters Relocation Program (Chapter 54 of Title 5111
of the Louisiana Revised Statutes of 1950, comprised of R.S. 51:3111 through12
3115).13
(y) Competitive Projects Payroll Incentive Program (R.S. 51:3121).14
(z) Procurement Processing Company Rebate Program (R.S. 47:6351).15
(aa) Rehabilitation of Historic Structures (R.S. 47:6019).16
(15.2) "Current tax collections" means the current collections of the17
taxes imposed by Subtitle II of Title 47 of the Louisiana Revised Statutes of18
1950.19
* * *20
§24.1. Incentive expenditure forecast21
A. Beginning fiscal year 2015-2016, the Revenue Estimating Conference22
shall establish a forecast of incentive expenditures for each fiscal year,23
hereinafter referred to as the incentive expenditure forecast, which shall be24
derived and revised only as provided in this Section. The forecast of incentive25
expenditures shall include a forecast of the amount of payments from and26
reductions of current tax collections to be granted by each of the incentive27
benefit statutes provided for in R.S. 39:2(15.1) for the forecasted year. The28
forecast shall be an amount that is no less than the estimated amount of29 SB NO. 543
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payments from and reductions of current tax collections which will be made by1
each of the incentive benefit statutes provided for in R.S. 39:2(15.1) for the2
forecasted fiscal year. Such forecast shall be used to provide for the statement3
of incentive expenditures in the proposed executive budget, the general4
appropriation bill and other appropriation bills, and the state budget.5
B. The incentive expenditure forecast shall be derived and based upon6
the assumption that the current law and current administrative procedures will7
remain in effect for the forecast period.8
C. The department which administers the incentive benefit shall notify9
the conference when the incentive expenditure forecast is not sufficient to meet10
the requirements of current law or current administrative procedures. The11
conference may revise the forecast as necessary.12
D. The incentive expenditure forecast shall be a separate forecast and13
shall not be included in the estimates of the money to be received by the state14
general fund, dedicated funds, and self-generated revenues for the current and15
next fiscal years which are available for appropriation.16
E.(1) The Revenue Estimating Conference may utilize whatever staff,17
information, and technical expertise which it may determine is required to18
derive or revise the incentive expenditure forecast. The conference may request19
and shall receive from all public officers, departments, agencies, and authorities20
of the state such assistance and data as will enable the conference to fulfill its21
duties.22
(2) Public officers, departments, agencies, and authorities of the state,23
including the Department of Revenue, the Department of Economic24
Development, and the Department of Culture, Recreation and Tourism, which25
administer an incentive expenditure program shall furnish the Revenue26
Estimating Conference, legislative fiscal office, and the division of27
administration with data reflecting the program's operations and shall prepare28
a report setting forth the dollar amount of incentive expenditures for each29 SB NO. 543
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incentive benefit program administered by the respective department, agency,1
or authority. In order for such information to be included in the incentive2
expenditure forecast for the next fiscal year, such reports shall include data3
beginning July first of each fiscal year through the date of the report and the4
report shall be due monthly. An initial report detailing historical participation5
and applicable dollar amounts of incentive expenditures shall also be provided.6
The initial historical report and subsequent monthly reports shall be developed7
in consultation with the Revenue Estimating Conference, the legislative fiscal8
office, and the division of administration.9
(3) In addition to the data required to be submitted in Paragraph (2) of10
this Subsection, each department, agency, or authority of the state, including the11
Department of Revenue, the Department of Economic Development, and the12
Department of Culture, Recreation and Tourism, which administers an13
incentive expenditure as defined in R.S. 39:2(15.1) shall submit to the Revenue14
Estimating Conference, the legislative fiscal office, and the division of15
administration, upon request, an estimate of incentive expenditures for each of16
the tax benefit statutes listed in R.S. 39:2(15.1) administered by the respective17
department, agency, or authority. Such estimates shall be an amount that is no18
less than the estimated amount of reductions of and payments to be made from19
current tax collections for each incentive expenditure for the current fiscal year.20
The participants of the conference shall work in conjunction with the respective21
department, agency, or authority, to finalize all estimates for presentation to the22
conference.23
F. The incentive expenditure forecast shall be determined by the24
Revenue Estimating Conference through a process to be decided by the25
conference except that any final action establishing an incentive expenditure26
forecast shall be taken pursuant only to a unanimous decision by all of the27
conference principals.28
* * *29 SB NO. 543
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§34. Executive budget1
A.(1) The governor shall cause to be prepared an executive budget presenting2
a complete financial and programmatic plan for the ensuing fiscal year which shall3
include recommendations for appropriations from the state general fund and4
dedicated funds which shall not exceed the official forecast of the Revenue5
Estimating Conference. Except as provided by R.S. 39:75(E), the executive budget6
shall not include recommendations for appropriations from any fund in excess of the7
official forecast of money available for appropriation from that fund.8
(2) The executive budget for Fiscal Year 2015-2016 and each fiscal year9
thereafter shall include a separate statement of incentive expenditures as10
contained in the incentive expenditure forecast. The incentive expenditures11
shall be stated as a separate description in the program activities of the12
respective department, agency, or authority of the state which administers an13
incentive expenditure as defined in R.S. 39:2(15.1). A statement of total14
incentive expenditures shall also be provided in the executive budget proposal.15
Such incentive expenditures shall not be included as, nor counted towards the16
operating expenses of the relevant department, agency, or authority.17
* * *18
§36. Contents and format of executive budget; supporting document19
A. The executive budget shall present a complete financial and programmatic20
plan for the ensuing year, and it shall be configured in a format so as to clearly21
present and highlight the functions and operations of state government and the22
financial requirements associated with those functions and operations. The executive23
budget shall be a performance-based budget. It shall include at a minimum the24
following:25
* * *26
(7) A separate statement of incentive expenditures as contained in the27
incentive expenditure forecast. The incentive expenditures shall be stated as a28
separate description in the program activities of the respective department,29 SB NO. 543
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agency, or authority of the state which administers an incentive expenditure as1
defined in R.S. 39:2(15.1). Such incentive expenditures shall not be included as,2
nor counted towards the operating expenses of the relevant department, agency,3
or authority.4
* * *5
§51. General Appropriation Bill; other appropriation bills6
A.7
* * *8
(5) The General Appropriation Bill and other appropriation bills shall9
include a statement of incentive expenditures as contained in the incentive10
expenditure forecast. The incentive expenditures shall be stated as a separate11
description in the program activities of the respective department, agency, or12
authority of the state which administers an incentive expenditure as defined in13
R.S. 39:2(15.1). Such incentive expenditures shall not be included as, nor14
counted towards the operating expenses of the relevant department, agency, or15
authority. The statement of incentive expenditures shall not be deemed to be16
an appropriation and shall be under the heading of "Incentive Expenditure17
Categories Required by Specific Laws".18
* * *19
§56. State budget to be prepared by governor20
A. After the passage of the appropriation and revenue acts, but not later than21
October first of each year, the governor shall cause to be prepared a complete state22
budget for the fiscal year. The budget so prepared shall include all the details of the23
financial plan for the fiscal year, as to both expenditures and means of financing as24
presented in the executive budget, with such revision as may be necessary to bring25
them into conformity with the appropriation and revenue acts and other acts to26
provide means of financing, and with the legislative provisions in effect, governing27
administration of the budget. The budget so prepared for Fiscal Year 2015-201628
and each fiscal year thereafter shall include a statement of total incentive29 SB NO. 543
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expenditures and a statement of incentive expenditures by department.1
* * *2
Section 2. This Act shall become effective on July 1, 2014; if vetoed by the governor3
and subsequently approved by the legislature, this Act shall become effective on July 1,4
2014, or on the day following such approval by the legislature, whichever is later.5
The original instrument was prepared by Martha Hess. The following digest,
which does not constitute a part of the legislative instrument, was prepared
by Linda Nugent.
DIGEST
Donahue (SB 543)
Present law provides for the definitions of words used in Title 39 of the Revised Statutes.
Proposed law retains present law and adds the definition of "incentive expenditures" to mean
the reductions of and payments from current tax collections because of the following
incentive benefit statutes:
(1)Atchafalaya Trace Heritage Area Development Zone Tax Exemption (Part II of
Chapter 26 of Title 25 of the Revised Statutes, comprised of R.S. 25:1226 et seq.).
(2)Brownfields Investor Tax Credit (R.S. 47:6021).
(3)Cane River Heritage Tax Credit (R.S. 47:6026).
(4)Louisiana Community Economic Development (R.S. 47:6031).
(5)Ports of Louisiana Tax Credit (R.S. 47:6036).
(6)Motion Picture Investor Tax Credit (R.S. 47:6007).
(7)Research and Development Tax Credit (R.S. 47:6015).
(8)Digital Interactive Media and Software Tax Credit (R.S. 47:6022).
(9)Louisiana Motion Picture Incentive Program (Chapter 12 of Subtitle II of Title 47
of the Revised Statutes of 1950, comprised of R.S. 47:1121 et seq.).
(10)Louisiana Capital Companies Tax Credit Program (Chapter 26 of Title 51 of the
Revised Statutes of 1950, comprised of R.S. 51:1921 et seq.).
(11)New Markets Tax Credit (R.S. 47:6016).
(12)University Research and Development Parks (R.S. 17:3389).
(13)Industrial Tax Equalization Program (Chapter 1 of Subtitle V of Title 47 of the
Revised Statutes of 1950, comprised of R.S. 47:3201 through 3205).
(14)Exemptions for Manufacturing Establishments (Chapter 3 of Subtitle V of Title 47
of the Revised Statutes of 1950, comprised of R.S. 47:4301through 4306).
(15)Enterprise Zones (Chapter 21 of Title 51 of the Revised Statutes of 1950, comprised SB NO. 543
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of R.S. 51:1781 et seq.).
(16)Sound Recording Investor Tax Credit (R.S. 47:6023).
(17)Urban Revitalization Tax Incentive Program (Chapter 22 of Title 51 of the Revised
Statutes of 1950, comprised of R.S. 51:1801).
(18)Technology Commercialization Credit and Jobs Program (Part VI of Chapter 22 of
Title 51 of the Revised Statutes of 1950, comprised of R.S. 51:2351 et seq.).
(19)Angel Investor Tax Credit Program (R.S. 47:6020).
(20)Musical and Theatrical Productions Tax Credit (R.S. 47:6034).
(21)Retention and Modernization Credit (Chapter 39-C of Title 51 of the Revised
Statutes of 1950, comprised of R.S. 51:2399.1 through 2399.6).
(22)Green Jobs Industries Credit (R.S. 47:6037).
(23)Louisiana Quality Jobs Program (R.S. 51:2451 et seq.).
(24)Corporate Headquarters Relocation Program (Chapter 54 of Title 51 of the Revised
Statutes of 1950, comprised of R.S. 51:3111 through 3115).
(25)Competitive Projects Payroll Incentive Program (R.S. 51:3121).
(26)Procurement Processing Company Rebate Program (R.S. 47:6351).
(27)Rehabilitation of Historic Structures (R.S. 47:6019).
Proposed law also defines "current tax collections" to mean the current collections of the
taxes imposed by Subtitle II of Title 47 of the La. Revised Statutes of 1950.
Proposed law provides that beginning fiscal year 2015-2016, the Revenue Estimating
Conference (REC) shall establish a forecast of incentive expenditures for each fiscal year,
which shall include a forecast of the amount of payments from and reductions of current tax
collections to be granted by each of the incentive benefit statutes listed in the definition of
incentive benefit for the forecasted year. Provides that the forecast shall be an amount that
is no less than the estimated amount of payments from and reductions of current tax
collections which will be made by each of the incentive benefit statutes. Such forecast shall
be used to provide for the statement of incentive expenditures in the proposed executive
budget, the general appropriation bill and other appropriation bills, and the state budget.
Proposed law provides that the incentive expenditure forecast shall be derived and based
upon the assumption that the current law and current administrative procedures will remain
in effect for the forecast period. Provides that the department which administers the
incentive benefit shall notify the conference when the incentive expenditure forecast is not
sufficient to meet the requirements of current law or current administrative procedures. The
conference may revise the forecast as necessary. Provides that the incentive expenditure
forecast shall be a separate forecast and shall not be included in the estimates of the money
to be received by the state general fund, dedicated funds and self-generated revenues for the
current and next fiscal years which are available for appropriation.
Proposed law provides for the information, and the timing of submission of the information,
that public officers, departments, agencies, and authorities of the state are to provide in order
for the Revenue Estimating Conference to prepare an incentive expenditure forecast.
Proposed law provides that the incentive expenditure forecast shall be determined by the SB NO. 543
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Revenue Estimating Conference through a process to be decided by the conference except
that any final action establishing an incentive expenditure forecast shall be taken only
pursuant to a unanimous decision by all of the conference principals.
Present law provides that the governor shall cause to be prepared an executive budget
presenting a complete financial and programmatic plan for the ensuing fiscal year which
shall include recommendations for appropriations from the state general fund and dedicated
funds which shall not exceed the official forecast of the Revenue Estimating Conference.
Proposed law retains present law and further provides that the executive budget for Fiscal
Year 2015-2016 and each fiscal year thereafter shall include a statement of incentive
expenditures as contained in the incentive expenditure forecast. The incentive expenditures
shall be stated as a separate description in the program activities of the respective
department, agency, or authority of the state which administers an incentive expenditure. A
statement of total incentive expenditures shall also be provided in the executive budget
proposal. Such incentive expenditures shall not be included as, nor counted towards the
operating expenses of the relevant department, agency, or authority.
Present law provides for the contents and format of executive budget.
Proposed law retains present law and further provides that the executive budget shall contain
a statement of incentive expenditures as contained in the incentive expenditure forecast. The
incentive expenditures shall be stated as a separate description in the program activities of
the respective department, agency, or authority of the state which administers an incentive
expenditure. A statement of total incentive expenditures shall also be provided in the
executive budget proposal. Such incentive expenditures shall not be included as, nor counted
towards the operating expenses of the relevant department, agency, or authority.
Present law provides relative to the general appropriation bill and provides that the general
appropriation bill and other appropriation bills shall not appropriate any funds, which are not
part of the official forecast except appropriations from existing statutorily dedicated funds
for purposes other than the fund's statutory purpose as provided in present law.
Proposed law retains present law and further provides that the General Appropriation Bill
and other appropriation bills shall include a statement of incentive expenditures as contained
in the incentive expenditure forecast. The incentive expenditures shall be stated as a
separate description in the program activities of the respective department, agency, or
authority of the state which administers an incentive expenditure. Such incentive
expenditures shall not be included as, nor counted towards the operating expenses of the
relevant department, agency, or authority. The statement of incentive expenditures shall not
be deemed to be an appropriation and shall be under the heading of "Incentive Expenditure
Categories Required by Specific Laws".
Present law provides that after the passage of the appropriation and revenue acts, but not
later than October first of each year, the governor shall cause to be prepared a complete state
budget for the fiscal year. The budget so prepared shall include all the details of the financial
plan for the fiscal year, as to both expenditures and means of financing as presented in the
executive budget, with such revision as may be necessary to bring them into conformity with
the appropriation and revenue acts and other acts to provide means of financing, and with
the legislative provisions in effect, governing administration of the budget.
Proposed law retains present law but further provides that the budget so prepared for FY
2015-2016 and each fiscal year thereafter shall include a statement of total incentive
expenditures and a statement of incentive expenditures by department.
Effective July 1, 2014.
(Amends R.S. 39:34(A) and 56(A); adds R.S. 39:2(15.1) and (15.2), 24.1, 36(A)(7), and SB NO. 543
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51(A)(5))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Finance to the original
bill
1. Deletes definition of "expenditures for payments to businesses and
individuals" and adds definition of "incentive expenditures" and "current tax
collections".
2. Removes provisions relative to the official forecast of the Revenue
Estimating Conference.
3. Provides for an incentive expenditure forecast of the Revenue Estimating
Conference and the procedures relating to same.
4. Removes provisions relative to appropriations for expenditures for payments
to businesses and individuals in amounts not to exceed the official forecast
for expenditures for payments to businesses and individuals in the executive
budget, the General Appropriation Bill and other appropriation bills, and the
state budget.
5. Provides for statements of incentive expenditure allocations as contained in
the incentive expenditure forecast in the executive budget, the General
Appropriation Bill and other appropriation bills, and the state budget.
Senate Floor Amendments to engrossed bill
1. Specifies that the incentive expenditures forecast is not an REC official
forecast of monies available for expenditure.
2. Clarifies that the incentive expenditure forecast and statement are not a part
of the appropriation process.
3. Provides that the statement of incentive expenditures shall not be deemed to
be an appropriation and shall be under the heading of "Incentive Expenditure
Categories Required by Specific Laws".
4. Technical amendments.