DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of the
legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law
or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 589 Original 2015 Regular Session Burrell
Abstract: Changes eligibility requirements for enterprise zone contracts to receive tax credits and
rebate payments.
Present law establishes the enterprise zone program through which businesses may enter into
contracts with the Board of Commerce and Industry (hereinafter "board") to receive tax credits and
rebate payments in exchange for the creation of a certain number of jobs which involve employees
who meet certain residency and other requirements.
Present law authorizes that jobs for full-time work may satisfy the job requirements of an enterprise
zone contract with present law specifying that the employee must work at least 6 months during the
taxable year.
Present law provides for conditions under which the board may enter into enterprise zone contracts.
These include certifications by the business regarding the employees it is claiming to satisfy the
requirements for new jobs under an enterprise zone contract.
Present law requires a business certify that at least 50% of its employees meet any of the following
requirements:
(1)Reside in an enterprise zone, an urban enterprise zone, an economic development zone, or
the parish in which the business is located.
(2)Were receiving some form of public assistance prior to employment.
(3)Were considered unemployable by traditional standards, or lacking in basic skills.
Proposed law changes present law by limiting the criteria for employees which qualify for
satisfaction of contract requirements. If the business is located within an enterprise zone, economic
development zone, or federal HUBZone, the business must certify that any combination of certain
criteria are met with respect to at least 35% of its employees.
Proposed law provides that if the business is located outside an enterprise zone, economic
development zone, or federal HUBZone, the business must certify that any combination of certain
criteria are met with respect to at least 50% of its employees.
Proposed law shall only be applicable to contracts and renewals of contracts executed after the effective date of this Act.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 51:1787(A)(3) and (B)(3))