SLS 15RS-180 ORIGINAL
2015 Regular Session
SENATE BILL NO. 222
BY SENATOR DONAHUE
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
FISCAL CONTROLS. Provides for an incentive expenditure forecast to be established and
included in the executive budget. (7/1/15)
1 AN ACT
2 To amend and reenact R.S. 39:34(A) and to enact R.S. 39:2(15.1) and (15.2), 24.1, and
3 36(A)(7), relative to budgetary procedures; to define incentive expenditures; to
4 provide for an incentive expenditure forecast; to provide for the inclusion of the
5 incentive expenditure forecast in the executive budget; to provide for an effective
6 date; and to provide for related matters.
7 Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 39:34(A) is hereby amended and reenacted and R.S. 39:2(15.1) and
9 (15.2), 24.1, and 36(A)(7) are hereby enacted to read as follows:
10 §2. Definitions
11 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 meanings
13 here given to them.
14 * * *
15 (15.1) "Incentive expenditures" means the reductions of and payments
16 from current tax collections because of the following incentive benefit statutes:
17 (a) Atchafalaya Trace Heritage Area Development Zone Tax Exemption
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1 (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 Act (R.S. 47:6031).
6 (e) Ports of Louisiana Tax Credits (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 Subtitle
11 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 of
14 Title 51 of the Louisiana Revised Statutes of 1950, comprised of R.S. 51:1921 et
15 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 of
19 Title 47 of the Louisiana Revised Statutes of 1950, comprised of R.S. 47:3201
20 through 3205).
21 (n) Exemptions for Manufacturing Establishments (Chapter 3 of Subtitle
22 V of Title 47 of the Louisiana Revised Statutes of 1950, comprised of R.S.
23 47:4301 through 4306).
24 (o) Enterprise Zones (Chapter 21 of Title 51 of the Louisiana Revised
25 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 51
28 of the Louisiana Revised Statutes of 1950, comprised of R.S. 51:1801).
29 (r) Technology Commercialization Credit and Jobs Program (Part VI of
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1 Chapter 39 of Title 51 of the Louisiana Revised Statutes of 1950, comprised of
2 R.S. 51:2351 et seq.).
3 (s) Angel Investor Tax Credit Program (R.S. 47:6020).
4 (t) Musical and Theatrical Productions Income Tax Credit (R.S.
5 47:6034).
6 (u) Retention and Modernization Act (Chapter 39-C of Title 51 of the
7 Louisiana Revised Statutes of 1950, comprised of R.S. 51:2399.1 through
8 2399.6).
9 (v) Green Jobs Industries Tax Credit (R.S. 47:6037).
10 (w) Louisiana Quality Jobs Program (Chapter 42 of Title 51 of the
11 Louisiana Revised Statutes of 1950, comprised of R.S. 51:2451 et seq.).
12 (x) Corporate Headquarters Relocation Program (Chapter 54 of Title 51
13 of the Louisiana Revised Statutes of 1950, comprised of R.S. 51:3111 through
14 3115).
15 (y) Competitive Projects Payroll Incentive Program (R.S. 51:3121).
16 (z) Procurement Processing Company Rebate Program (R.S. 47:6351).
17 (aa) Rehabilitation of Historic Structures Tax Credit (R.S. 47:6019).
18 (bb) Rebates for Donations to School Tuition Organizations (R.S.
19 47:6301).
20 (15.2) "Current tax collections" means the current collections of the
21 taxes imposed by Subtitle II of Title 47 of the Louisiana Revised Statutes of
22 1950.
23 * * *
24 §24.1. Incentive expenditure forecast
25 A. The Revenue Estimating Conference shall establish a forecast of
26 incentive expenditures for each fiscal year, beginning for Fiscal Year 2016-2017,
27 hereinafter referred to as the incentive expenditure forecast, which shall be
28 derived and revised only as provided in this Section. The incentive expenditure
29 forecast shall include a forecast of the amount of payments from and reductions
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1 of current tax collections to be granted by each of the incentive benefit statutes
2 listed in R.S. 39:2(15.1) for the forecasted year. The forecast shall be an amount
3 that is no less than the estimated amount of payments from and reductions of
4 current tax collections which will be made by each of the incentive benefit
5 statutes listed in R.S. 39:2(15.1) for the forecasted fiscal year. Such forecast
6 shall be used to provide for the statement of incentive expenditures in the
7 proposed executive budget.
8 B. The incentive expenditure forecast shall be derived and based upon
9 the assumption that the current law and current administrative procedures will
10 remain in effect for the forecast period.
11 C. The department which administers the incentive benefit shall notify
12 the conference when the incentive expenditure forecast is not sufficient to meet
13 the requirements of current law or current administrative procedures. The
14 conference may revise the forecast as necessary.
15 D. The incentive expenditure forecast shall be a separate forecast and
16 shall not be included in the estimates of the money to be received by the state
17 general fund and dedicated funds for the current and next fiscal years which are
18 available for appropriation.
19 E.(1) The Revenue Estimating Conference may utilize whatever staff,
20 information, and technical expertise which it may determine is required to
21 derive or revise the incentive expenditure forecast. The conference may request
22 and shall receive from all public officers, departments, agencies, and authorities
23 of the state such assistance and data as will enable the conference to fulfill its
24 duties.
25 (2) Each agency of the state, including the Department of Revenue, the
26 Department of Economic Development, and the Department of Culture,
27 Recreation and Tourism, which administers an incentive expenditure program
28 shall furnish the Revenue Estimating Conference, legislative fiscal office, and
29 the division of administration data reflecting the program's operations and shall
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1 prepare a report setting forth the dollar amount of incentive expenditures for
2 each incentive benefit program administered by the respective department,
3 agency, or authority. In order for such information to be included in the
4 incentive expenditure forecast for the next fiscal year, such reports shall include
5 data beginning July first of each fiscal year through the date of the report and
6 the report shall be due monthly. An initial report detailing historical
7 participation and applicable dollar amounts of incentive expenditures shall also
8 be provided. The initial historical report and subsequent monthly reports shall
9 be developed in consultation with the Revenue Estimating Conference, the
10 legislative fiscal office, and the division of administration.
11 (3) In addition to the data required to be submitted in Paragraph (2) of
12 this Subsection, each agency of the state, including the Department of Revenue,
13 the Department of Economic Development, and the Department of Culture,
14 Recreation and Tourism, which administers an incentive expenditure as defined
15 in R.S. 39:2(15.1) shall submit to the Revenue Estimating Conference, the
16 legislative fiscal office, and the division of administration, upon request, an
17 estimate of incentive expenditures for each of the tax benefit statutes listed in
18 R.S. 39:2(15.1) administered by the respective agency. Such estimates shall be
19 an amount that is no less than the estimated amount of reductions of and
20 payments to be made from current tax collections for each incentive
21 expenditure for the current fiscal year. The participants of the conference shall
22 work in conjunction with the respective agency to finalize all estimates for
23 presentation to the conference.
24 F. The incentive expenditure forecast shall be determined by the
25 Revenue Estimating Conference through a process to be decided by the
26 conference except that any final action establishing an incentive expenditure
27 forecast shall be taken pursuant only to a unanimous decision by all of the
28 conference principals.
29 * * *
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SLS 15RS-180 ORIGINAL
1 §34. Executive budget
2 A.(1) The governor shall cause to be prepared an executive budget presenting
3 a complete financial and programmatic plan for the ensuing fiscal year which shall
4 include recommendations for appropriations from the state general fund and
5 dedicated funds which shall not exceed the official forecast of the Revenue
6 Estimating Conference. Except as provided by R.S. 39:75(E), the executive budget
7 shall not include recommendations for appropriations from any fund in excess of the
8 official forecast of money available for appropriation from that fund.
9 (2) The executive budget for Fiscal Year 2016-2017 and each fiscal year
10 thereafter shall include a separate statement of incentive expenditures as
11 contained in the incentive expenditure forecast. The incentive expenditures
12 shall be stated as a separate description in the program activities of the
13 respective agency of the state which administers an incentive expenditure as
14 defined in R.S. 39:2(15.1). A statement of total incentive expenditures shall also
15 be provided in the executive budget proposal. Such incentive expenditures shall
16 not be included as, nor counted towards the operating expenses of the
17 administering agency. The statement of incentive expenditures shall not be
18 deemed to be a recommendation for appropriation.
19 * * *
20 §36. Contents and format of executive budget; supporting document
21 A. The executive budget shall present a complete financial and programmatic
22 plan for the ensuing year, and it shall be configured in a format so as to clearly
23 present and highlight the functions and operations of state government and the
24 financial requirements associated with those functions and operations. The executive
25 budget shall be a performance-based budget and as such may include key objectives
26 and key performance indicators. The commissioner of administration may designate
27 key objectives and key performance indicators to be included in the executive
28 budget. Additionally, the executive budget shall include at a minimum the
29 following:
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1 * * *
2 (7) A separate statement of incentive expenditures as contained in the
3 incentive expenditure forecast. The incentive expenditures shall be stated as a
4 separate description in the program activities of the respective agency of the
5 state which administers an incentive expenditure as defined in R.S. 39:2(15.1).
6 Such incentive expenditures shall not be included as, nor counted towards the
7 operating expenses of the administering agency. The statement of incentive
8 expenditures shall not be deemed to be a recommendation for appropriation.
9 Section 2. This Act shall become effective on July 1, 2015; if vetoed by the governor
10 and subsequently approved by the legislature, this Act shall become effective on July 1,
11 2015, or on the day following such approval by the legislature, whichever is later.
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Martha S. Hess.
DIGEST
SB 222 Original 2015 Regular Session Donahue
Present law provides for the definitions of words used in Title 39 of the Louisiana Revised
Statutes. Proposed law would retain present law and add 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 Act (R.S. 47:6031).
(5)Ports of Louisiana Tax Credits (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 La. 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 La.
Revised Statutes of 1950, comprised of R.S. 51:1921 et seq.).
(11)New Markets Tax Credit (R.S. 47:6016).
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(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 La.
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 La. Revised Statutes of 1950, comprised of R.S. 47:4301through 4306).
(15)Enterprise Zones (Chapter 21 of Title 51 of the La. Revised Statutes of 1950,
comprised 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 La.
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 La. 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 Income Tax Credit (R.S. 47:6034).
(21)Retention and Modernization Act (Chapter 39-C of Title 51 of the La. Revised
Statutes of 1950, comprised of R.S. 51:2399.1 through 2399.6).
(22)Green Jobs Industries Tax Credit (R.S. 47:6037).
(23)Louisiana Quality Jobs Program (Chapter 42 of Title 51 of the Louisiana Revised
Statutes of 1950, comprised of R.S. 51:2451 et seq.).
(24)Corporate Headquarters Relocation Program (Chapter 54 of Title 51 of the La.
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 Tax Credit (R.S. 47:6019).
(28)Rebates for Donations to School Tuition Organizations (R.S. 47:6301).
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 requires the Revenue Estimating Conference (REC) to establish a forecast of
incentive expenditures for each fiscal year, beginning for fiscal year 2016-2017, 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.
Proposed law provided 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 agency which administers the incentive
benefit shall notify the conference when the incentive expenditure forecast is not sufficient
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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 and dedicated funds 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 agencies of the state are to provide in order for the REC to prepare an incentive
expenditure forecast.
Proposed law provides that the incentive expenditure forecast shall be determined by the
REC 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 REC.
Proposed law retains present law and further provides that the executive budget for Fiscal
Year 2016-2017 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 agency 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
administering agency. Would further provide that the statement of incentive expenditures
shall not be deemed to be a recommendation for appropriation.
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 agency 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 administering agency.
Effective July 1, 2015.
(Amends R.S. 39:34(A); adds R.S. 39:2(15.1) and (15.2), 24.1, and 36(A)(7))
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