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Regular Session, 2014 ENROLLED
SENATE BILL NO. 543
BY SENATORS DONAHUE, ALLAIN, BUFFINGTON, CHABERT, CLAITOR, JOHNS,
LAFLEUR, MILLS, MURRAY, TARVER AND WHITE
AN ACT1
To amend and reenact R.S. 39:34(A) and to enact R.S. 39:2(15.1) and (15.2), 24.1, and2
36(A)(7), relative to budgetary procedures; to define incentive expenditures; to3
provide for an incentive expenditure forecast; to provide for the inclusion of the4
incentive expenditure forecast in the executive budget; to provide for an effective5
date; and to provide for related matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 39:34(A) is hereby amended and reenacted and R.S. 39:2(15.1) and8
(15.2), 24.1, and 36(A)(7) are hereby enacted to read as follows:9
§2. Definitions10
As used in this Chapter, except where the context clearly requires otherwise,11
the words and expressions defined in this Section shall be held to have the meanings12
here given to them.13
* * *14
(15.1) "Incentive expenditures" means the reductions of and payments15
from current tax collections because of the following incentive benefit statutes:16
(a) Atchafalaya Trace Heritage Area Development Zone Tax Exemption17
(Part II of Chapter 26 of Title 25 of the Louisiana Revised Statutes of 1950,18
comprised of R.S. 25:1226 et seq.).19
(b) Brownfields Investor Tax Credit (R.S. 47:6021).20 SB NO. 543 ENROLLED
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(c) Cane River Heritage Tax Credit (R.S. 47:6026).1
(d) Louisiana Community Economic Development (R.S. 47:6031).2
(e) Ports of Louisiana Tax Credit (R.S. 47:6036).3
(f) Motion Picture Investor Tax Credit (R.S. 47:6007).4
(g) Research and Development Tax Credit (R.S. 47:6015).5
(h) Digital Interactive Media and Software Tax Credit (R.S. 47:6022).6
(i) Louisiana Motion Picture Incentive Program (Chapter 12 of Subtitle7
II of Title 47 of the Louisiana Revised Statutes of 1950, comprised of R.S.8
47:1121 et seq.).9
(j) Louisiana Capital Companies Tax Credit Program (Chapter 26 of10
Title 51 of the Louisiana Revised Statutes of 1950, comprised of R.S. 51:1921 et11
seq.).12
(k) New Markets Tax Credit (R.S. 47:6016).13
(l) University Research and Development Parks (R.S. 17:3389).14
(m) Industrial Tax Equalization Program (Chapter 1 of Subtitle V of15
Title 47 of the Louisiana Revised Statutes of 1950, comprised of R.S. 47:320116
through 3205).17
(n) Exemptions for Manufacturing Establishments (Chapter 3 of Subtitle18
V of Title 47 of the Louisiana Revised Statutes of 1950, comprised of R.S.19
47:4301 through 4306).20
(o) Enterprise Zones (Chapter 21 of Title 51 of the Louisiana Revised21
Statutes of 1950, comprised of R.S. 51:1781 et seq.).22
(p) Sound Recording Investor Tax Credit (R.S. 47:6023).23
(q) Urban Revitalization Tax Incentive Program (Chapter 22 of Title 5124
of the Louisiana Revised Statutes of 1950, comprised of R.S. 51:1801).25
(r) Technology Commercialization Credit and Jobs Program (Part VI of26
Chapter 39 of Title 51 of the Louisiana Revised Statutes of 1950, comprised of27
R.S. 51:2351 et seq.).28
(s) Angel Investor Tax Credit Program (R.S. 47:6020).29
(t) Musical and Theatrical Productions Tax Credit (R.S. 47:6034).30 SB NO. 543 ENROLLED
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(u) Retention and Modernization Credit (Chapter 39-C of Title 51 of the1
Louisiana Revised Statutes of 1950, comprised of R.S. 51:2399.1 through2
2399.6).3
(v) Green Jobs Industries Credit (R.S. 47:6037).4
(w) Louisiana Quality Jobs Program (R.S. 51:2451 et seq.).5
(x) Corporate Headquarters Relocation Program (Chapter 54 of Title 516
of the Louisiana Revised Statutes of 1950, comprised of R.S. 51:3111 through7
3115).8
(y) Competitive Projects Payroll Incentive Program (R.S. 51:3121).9
(z) Procurement Processing Company Rebate Program (R.S. 47:6351).10
(aa) Rehabilitation of Historic Structures (R.S. 47:6019).11
(bb) Rebates for Donations to School Tuition Organizations (R.S.12
47:6301).13
(15.2) "Current tax collections" means the current collections of the14
taxes imposed by Subtitle II of Title 47 of the Louisiana Revised Statutes of15
1950.16
* * *17
§24.1. Incentive expenditure forecast18
A. The Revenue Estimating Conference shall establish a forecast of19
incentive expenditures for each fiscal year, beginning for fiscal year 2015-2016,20
hereinafter referred to as the incentive expenditure forecast, which shall be21
derived and revised only as provided in this Section. The forecast of incentive22
expenditures shall include a forecast of the amount of payments from and23
reductions of current tax collections to be granted by each of the incentive24
benefit statutes provided for in R.S. 39:2(15.1) for the forecasted year. The25
forecast shall be an amount that is no less than the estimated amount of26
payments from and reductions of current tax collections which will be made by27
each of the incentive benefit statutes provided for in R.S. 39:2(15.1) for the28
forecasted fiscal year. Such forecast shall be used to provide for the statement29
of incentive expenditures in the proposed executive budget.30 SB NO. 543 ENROLLED
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B. The incentive expenditure forecast shall be derived and based upon1
the assumption that the current law and current administrative procedures will2
remain in effect for the forecast period.3
C. The department which administers the incentive benefit shall notify4
the conference when the incentive expenditure forecast is not sufficient to meet5
the requirements of current law or current administrative procedures. The6
conference may revise the forecast as necessary.7
D. The incentive expenditure forecast shall be a separate forecast and8
shall not be included in the estimates of the money to be received by the state9
general fund and dedicated funds for the current and next fiscal years which are10
available for appropriation.11
E.(1) The Revenue Estimating Conference may utilize whatever staff,12
information, and technical expertise which it may determine is required to13
derive or revise the incentive expenditure forecast. The conference may request14
and shall receive from all public officers, departments, agencies, and authorities15
of the state such assistance and data as will enable the conference to fulfill its16
duties.17
(2) Public officers, departments, agencies, and authorities of the state,18
including the Department of Revenue, the Department of Economic19
Development, and the Department of Culture, Recreation and Tourism, which20
administer an incentive expenditure program shall furnish the Revenue21
Estimating Conference, legislative fiscal office, and the division of22
administration with data reflecting the program's operations and shall prepare23
a report setting forth the dollar amount of incentive expenditures for each24
incentive benefit program administered by the respective department, agency,25
or authority. In order for such information to be included in the incentive26
expenditure forecast for the next fiscal year, such reports shall include data27
beginning July first of each fiscal year through the date of the report and the28
report shall be due monthly. An initial report detailing historical participation29
and applicable dollar amounts of incentive expenditures shall also be provided.30 SB NO. 543 ENROLLED
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The initial historical report and subsequent monthly reports shall be developed1
in consultation with the Revenue Estimating Conference, the legislative fiscal2
office, and the division of administration.3
(3) In addition to the data required to be submitted in Paragraph (2) of4
this Subsection, each department, agency, or authority of the state, including the5
Department of Revenue, the Department of Economic Development, and the6
Department of Culture, Recreation and Tourism, which administers an7
incentive expenditure as defined in R.S. 39:2(15.1) shall submit to the Revenue8
Estimating Conference, the legislative fiscal office, and the division of9
administration, upon request, an estimate of incentive expenditures for each of10
the tax benefit statutes listed in R.S. 39:2(15.1) administered by the respective11
department, agency, or authority. Such estimates shall be an amount that is no12
less than the estimated amount of reductions of and payments to be made from13
current tax collections for each incentive expenditure for the current fiscal year.14
The participants of the conference shall work in conjunction with the respective15
department, agency, or authority, to finalize all estimates for presentation to the16
conference.17
F. The incentive expenditure forecast shall be determined by the18
Revenue Estimating Conference through a process to be decided by the19
conference except that any final action establishing an incentive expenditure20
forecast shall be taken pursuant only to a unanimous decision by all of the21
conference principals.22
* * *23
§34. Executive budget24
A.(1) The governor shall cause to be prepared an executive budget presenting25
a complete financial and programmatic plan for the ensuing fiscal year which shall26
include recommendations for appropriations from the state general fund and27
dedicated funds which shall not exceed the official forecast of the Revenue28
Estimating Conference. Except as provided by R.S. 39:75(E), the executive budget29
shall not include recommendations for appropriations from any fund in excess of the30 SB NO. 543 ENROLLED
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official forecast of money available for appropriation from that fund.1
(2) The executive budget for Fiscal Year 2015-2016 and each fiscal year2
thereafter shall include a separate statement of incentive expenditures as3
contained in the incentive expenditure forecast. The incentive expenditures4
shall be stated as a separate description in the program activities of the5
respective department, agency, or authority of the state which administers an6
incentive expenditure as defined in R.S. 39:2(15.1). A statement of total7
incentive expenditures shall also be provided in the executive budget proposal.8
Such incentive expenditures shall not be included as, nor counted towards the9
operating expenses of the relevant department, agency, or authority. The10
statement of incentive expenditures shall not be deemed to be a11
recommendation for appropriation.12
* * *13
§36. Contents and format of executive budget; supporting document14
A. The executive budget shall present a complete financial and programmatic15
plan for the ensuing year, and it shall be configured in a format so as to clearly16
present and highlight the functions and operations of state government and the17
financial requirements associated with those functions and operations. The executive18
budget shall be a performance-based budget. It shall include at a minimum the19
following:20
* * *21
(7) A separate statement of incentive expenditures as contained in the22
incentive expenditure forecast. The incentive expenditures shall be stated as a23
separate description in the program activities of the respective department,24
agency, or authority of the state which administers an incentive expenditure as25
defined in R.S. 39:2(15.1). Such incentive expenditures shall not be included as,26
nor counted towards the operating expenses of the relevant department, agency,27
or authority. The statement of incentive expenditures shall not be deemed to be28
a recommendation for appropriation.29
Section 2. This Act shall become effective on July 1, 2014; if vetoed by the governor30 SB NO. 543 ENROLLED
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and subsequently approved by the legislature, this Act shall become effective on July 1,1
2014, or on the day following such approval by the legislature, whichever is later.2
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: