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Regular Session, 2014
SENATE BILL NO. 671
BY SENATORS MARTINY AND GARY SMITH AND REPRESENTATIVES STOKES
AND WILLMOTT
ECONOMIC DEVELOPMENT. Establishes the Fly Louisiana Incentive Program for
granting rebates to air carriers for adding a certain amount of arriving and departing
international passengers at a Louisiana airport and adding a scheduled international direct
flight from the airport at least twice per week for at least 12 months. (7/1/14)
AN ACT1
To enact Chapter 5 of Subtitle VII of Title 47 of the Louisiana Revised Statutes of 1950, to2
be comprised of R.S. 47:6500 through 6503, relative to rebate incentives for air3
carriers transporting international passengers; to establish a program for such4
incentives; to provide for qualifications of air carriers and conditions for earning the5
rebates; to provide for calculation of the amount of the rebates; and to provide for6
related matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1. Chapter 5 of Subtitle VII of Title 47 of the Louisiana Revised Statutes of9
1950, comprised of R.S. 47:6500 through 6503, is hereby enacted to read as follows:10
CHAPTER 5. FLY LOUISIANA INCENTIVE PROGRAM11
§6500. Fly Louisiana Incentive Program12
A. Purpose. The legislature hereby recognizes the importance of13
international business and tourism as an economic driver, and therefore14
declares the purpose of this Chapter is to provide incentives to increase the15
number of international visitors to the state to generate tax revenue and to16
enhance growth and prosperity within the state.17 SB NO. 671
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§6501. Definitions1
The following terms shall have the following meanings unless the context2
clearly indicates otherwise:3
(1) "Air carrier" means any commercial air carrier engaged in4
scheduled operations as defined by the FAA. 5
(2) "Airport" means any primary commercial service airport as defined6
by the FAA and located in this state with capacity for international flights. 7
(3) "Department" means the Department of Economic Development.8
(4) "FAA" means the United States Department of Transportation,9
Federal Aviation Administration.10
(5) "Incremental international passenger" means an international11
passenger that is in addition to the international passenger baseline for the12
subject airport. The department shall further define incremental international13
passenger by rule or in contract terms to exclude international passengers14
shifted from another airport in the state.15
(6) "International passenger" means a revenue passenger who either (a)16
enplaned in scheduled service on an aircraft that originated its travel outside of17
the United States and who deplaned, exclusive of stopover or connection, at the18
subject airport, or (b) enplaned on a scheduled direct flight on an aircraft that19
originated its travel at the subject airport to a destination outside of the United20
States, exclusive of stopover or connection. The department may further define21
international passenger by rule or in contract terms to effect the intent of this22
Chapter.23
(7) "International passenger baseline" for the subject airport means the24
number of international passengers deplaning at or departing from that airport25
during a twelve-month period.26
(8) "Participating air carrier" means an air carrier entering into a27
contract under this Chapter for a subject airport.28
(9) "Secretary" means the secretary of the Department of Economic29 SB NO. 671
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Development.1
(10) "Subject airport" means an airport that is the subject of a contract2
with a participating air carrier under this Chapter.3
§6502. Contracts for air carriers for rebates for incremental international4
passengers5
A. Beginning on July 1, 2014, the secretary may enter into a contract or6
contracts with one or more air carriers for up to a five-year period, renewable7
for an additional five-year period, providing a rebate of up to five hundred8
dollars annually for each incremental international passenger deplaning at or9
departing from a subject airport. The program shall be available to any and all10
air carriers who elect to participate.11
B. Each contract shall provide for an international passenger baseline for12
the participating air carrier at the subject airport in the following manner:13
(1) For the first contract entered into for a particular subject airport, the14
initial international passenger baseline shall be the actual number of15
international passengers deplaning at or departing from that airport for the16
twelve months prior to the effective date of the contract, or the actual number17
for the twelve-month period prior to July 1, 2014, whichever is greater.18
(2) The international passenger baseline shall thereafter be adjusted by19
the department to include in the baseline increases in international passengers20
reasonably expected to deplane at or depart from the subject airport in the21
absence of the program, considering FAA statistical reports of the number of22
passengers arriving in the United States on flights originating outside the United23
States, and the number of passengers departing from the United States to24
destinations outside the United States, and other relevant considerations, as25
determined by the department by rule or in contract terms. The baseline shall26
not be reduced at any time. Baseline adjustments shall become effective on July27
first of each calendar year, or at the department's discretion on the first day of28
each calendar quarter.29 SB NO. 671
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(3) The baselines for subsequent contracts entered into for a particular1
subject airport shall be the adjusted baselines in effect on the effective date of2
each contract, or the actual number of international passengers for the3
contracting air carrier for the twelve-month period prior to the effective date4
of the contract, whichever is greater.5
C. No rebates shall be issued until all of the following requirements are6
satisfied:7
(1) No later than thirty-six months after execution of the first contract8
for the subject airport, the incremental international passengers exceed twenty-9
five percent of the international passenger baseline.10
(2) The air carrier has scheduled direct flights from the subject airport,11
at least twice per week, to at least one new destination outside of the United12
States, in addition to the destinations outside of the United States with13
scheduled direct flights from the subject airport during the month of June,14
2014. The participating air carrier maintains the new direct flight for at least15
twelve months from the effective date of the contract.16
D. No contract may be executed under this Chapter after July 1, 2019.17
This provision shall not affect or prevent amendments modifying the provisions18
of previously executed contracts.19
E. No provision of this Section shall be interpreted to require an air20
carrier to participate in the program provided for in this Chapter in order to21
provide international flights in Louisiana.22
§6503. Issuance and claiming of rebates23
A. Participating air carriers shall provide reports and documentation of24
international passengers as required by the department.25
B. The department shall determine the number of incremental26
international passengers for each subject airport and certify the amount of27
rebates to be issued to participating air carriers. Rebates shall be certified28
annually, or at the discretion of the department on a calendar quarterly basis.29 SB NO. 671
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C.(1) The secretary of the Department of Revenue shall make payments1
of the rebates provided for in this Section from the current collections of the2
taxes imposed by Chapter 1 of Subtitle II of this Title, as amended.3
(2) In the event rebates are certified on a calendar quarterly basis, a4
participating air carrier may elect to receive the rebate on such basis upon5
receipt of the rebate certification and any necessary additional information.6
Section 2. This Act shall become effective on July 1, 2014.7
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, SB NO. 671
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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)