The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Riley Boudreaux.
DIGEST
Martiny (SB 671)
Proposed law establishes the Fly Louisiana Incentive Program by authorizing the secretary of the
Department of Economic Development (DED), beginning July 1, 2014 until July 1, 2019, to
enter into a contract or contracts with one or more air carriers for up to a five-year period,
renewable for an additional five year period, providing a rebate of up to $500 annually for each
incremental international passenger deplaning or departing at an airport.
"Airport" is defined as any primary commercial service airport as defined by the FAA and
located in this state with capacity for international flights. "Air carrier" is any commercial air
carrier engaged in scheduled operations as defined by the FAA.
"International passenger" is defined as a revenue passenger who either:
(1)Enplaned in scheduled service on an aircraft that originated its travel outside of the
United States and who deplaned, exclusive of stopover or connection, at the airport.
(2)Enplaned on a scheduled direct flight on an aircraft that originated its travel at the airport
to a destination outside of the United States, exclusive of stopover or connection.
An "incremental international passenger" is defined as an "international passenger" that is in
addition to the "international passenger baseline" for the airport - that is, the number of
international passengers deplaning at or departing from the airport for the twelve months prior to
the effective date of the contract, or the actual number for the twelve-month period prior to July
1, 2014, whichever is greater.
The baseline is adjusted by DED on July first of each calendar year, or at the department's
discretion on the first day of each calendar quarter, to include in the baseline increases in
international passengers reasonably expected to deplane at or depart from the airport in the
absence of the program, considering FAA statistical reports of the number of passengers arriving
in the United States on flights originating outside the United States, and the number of
passengers departing from the United States to destinations outside the United States, and other
relevant considerations, as determined by DED by rule or in contract terms. The baseline cannot
be reduced at any time.
No rebates can be issued until all of the following requirements are satisfied:
(1)No later than 36 months after execution of the first contract for the airport, incremental
international passengers exceed 25% of the international passenger baseline. (2)The air carrier has scheduled direct flights from the airport, at least twice per week, to at
least one new destination outside of the United States, in addition to the destinations
outside of the United States with scheduled direct flights from the airport during the
month of June, 2014. The air carrier must maintain the new direct flight for at least
twelve months from the effective date of the contract.
The baselines for subsequent contracts entered into for a particular airport are the adjusted
baselines in effect on the effective date of each contract, or the actual number of international
passengers for the contracting air carrier for the twelve-month period prior to the effective date of
the contract, whichever is greater.
DED is authorized to further define "international passenger" by rule or in contract terms to
effect the intent of the proposed law and must further define "incremental international
passenger" by rule or in contract terms to exclude "international passengers" shifted from another
airport in the state.
DED must certify rebates annually, or at the discretion of the department, on a calendar quarterly
basis. The secretary of the Department of Revenue must make payments of the rebates from the
current collections of the taxes imposed by Chapter 1 of Subtitle II of Title 47. In the event
rebates are certified on a calendar quarterly basis, a participating air carrier may elect to receive
the rebate on such basis upon receipt of the rebate certification and any necessary additional
information.
Effective July 1, 2014.
(Adds R.S. 47:6500-6503)