SLS 16RS-317 ORIGINAL
2016 Regular Session
SENATE BILL NO. 318
BY SENATOR DONAHUE
FISCAL CONTROLS. Provides for the appropriation of incentive expenditures. (7/1/16)
1 AN ACT
2 To amend and reenact the introductory paragraph of R.S. 39:2(15.1), 24.1(A) and (E)(3),
3 34(A), 51(A)(2), and 56(A) and to enact R.S. 39:36(A)(7), relative to budgetary
4 procedures; to define incentive expenditures; to provide for inclusion in the
5 executive budget, the general appropriation bill, other appropriation bills, and the
6 state budget of incentive expenditures; to provide for an effective date; and to
7 provide for related matters.
8 Be it enacted by the Legislature of Louisiana:
9 Section 1. The introductory paragraph of R.S. 39:2(15.1), 24.1(A) and (E)(3), 34(A),
10 51(A)(2), and 56(A) are hereby amended and reenacted and R.S. 39:36(A)(7) is hereby
11 enacted to read as follows:
12 §2. Definitions
13 As used in this Chapter, except where the context clearly requires otherwise,
14 the words and expressions defined in this Section shall be held to have the meanings
15 here given to them.
16 * * *
17 (15.1) "Incentive expenditures" means the reductions of and payments from
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1 current tax collections because of payments to businesses and individuals for the
2 refund, rebate, or transferable credits granted through either an incentive
3 contract between the state or an agency of the state and a specific recipient, or
4 certification or approval of a specific recipient by the state or an agency of the
5 state, including the following incentive benefit statutes:
6 * * *
7 §24.1. Incentive expenditure forecast
8 A. The Revenue Estimating Conference shall establish a forecast of incentive
9 expenditures for each fiscal year, beginning for Fiscal Year 2016-2017, hereinafter
10 referred to as the "incentive expenditure forecast", which shall be derived and
11 revised only as provided in this Section. The incentive expenditure forecast shall
12 include a forecast of the amount of payments from and reductions of current tax
13 collections to be granted by each of the incentive expenditure programs including
14 the incentive benefit statutes listed in R.S. 39:2(15.1) for the forecasted year. The
15 forecast shall be an amount that is no less than the estimated amount of payments
16 from and reductions of current tax collections which will be made by each of the
17 incentive expenditure programs including the incentive benefit statutes listed in
18 R.S. 39:2(15.1) for the forecasted fiscal year.
19 * * *
20 E.
21 * * *
22 (3) In addition to the data required to be submitted in Paragraph (2) of this
23 Subsection, each agency of the state, including the Department of Revenue, the
24 Department of Economic Development, and the Department of Culture, Recreation
25 and Tourism, which administers an incentive expenditure as defined in R.S.
26 39:2(15.1) shall submit to the Revenue Estimating Conference, the legislative fiscal
27 office, and the division of administration, upon request, an estimate of incentive
28 expenditures for each of the incentive expenditure programs including the tax
29 benefit statutes listed in R.S. 39:2(15.1) administered by the respective agency. Such
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SLS 16RS-317 ORIGINAL
1 estimates shall be an amount that is no less than the estimated amount of reductions
2 of and payments to be made from current tax collections for each incentive
3 expenditure for the current fiscal year. The participants of the conference shall work
4 in conjunction with the respective agency to finalize all estimates for presentation
5 to the conference.
6 * * *
7 §34. Executive budget
8 A.(1) The governor shall cause to be prepared an executive budget presenting
9 a complete financial and programmatic plan for the ensuing fiscal year which shall
10 include recommendations for appropriations from the state general fund and
11 dedicated funds which shall not exceed the official forecast of the Revenue
12 Estimating Conference. Except as provided by R.S. 39:75(E), the executive budget
13 shall not include recommendations for appropriations from any fund in excess of the
14 official forecast of money available for appropriation from that fund.
15 (2) The executive budget for Fiscal Year 2017-2018 and each fiscal year
16 thereafter shall include a separate recommendation for appropriations from the
17 state general fund and dedicated funds for the incentive expenditure allocations
18 contained in the incentive expenditure forecast. The incentive expenditures
19 allocations shall be stated as a separate description in the program activities of
20 the respective department, agency, or authority of the state which administers
21 an incentive expenditure. Such incentive expenditures shall not be included as,
22 nor counted towards the operating expenses of the relevant department, agency,
23 or authority. The recommended appropriations shall not exceed the amount
24 estimated in the official forecast for expenditure incentives.
25 * * *
26 §36. Contents and format of executive budget; supporting document
27 A. The executive budget shall present a complete financial and programmatic
28 plan for the ensuing year, and it shall be configured in a format so as to clearly
29 present and highlight the functions and operations of state government and the
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1 financial requirements associated with those functions and operations. The executive
2 budget shall be a performance-based budget and as such may include key objectives
3 and key performance indicators. The commissioner of administration may designate
4 key objectives and key performance indicators to be included in the executive
5 budget. Additionally, the executive budget shall include at a minimum the following:
6 * * *
7 (7) A separate recommendation for appropriations from the state general
8 fund and dedicated funds for expenditure incentive payments. The
9 recommended appropriation shall not exceed the amount estimated in the
10 incentive expenditure forecast. The recommendation for appropriations for
11 incentive expenditures shall be stated as a separate description in the program
12 activities of the respective department, agency, or authority of the state which
13 administers an incentive expenditure. Such incentive expenditures shall not be
14 included as, nor counted towards the operating expenses of the relevant
15 department, agency, or authority.
16 * * *
17 §51. General Appropriation Bill; other appropriation bills
18 A.
19 * * *
20 (2) The General Appropriation Bill and other appropriation bills shall not
21 appropriate any funds, as defined in Article VII, Section 10(J) of the Constitution of
22 Louisiana, which are not part of the official forecast or the incentive expenditure
23 forecast except as provided for in R.S. 39:54(A)(2). Appropriations in the general
24 appropriation bill and other appropriation bills for Fiscal Year 2017-2018 and
25 each fiscal year thereafter, shall include a separate recommendation setting
26 forth the incentive expenditures payments, which appropriations shall not
27 exceed the amount estimated in the expenditure incentive forecast.
28 * * *
29 §56. State budget to be prepared by governor
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SLS 16RS-317 ORIGINAL
1 A. After the passage of the appropriation and revenue acts, but not later than
2 October first of each year, the governor shall cause to be prepared a complete state
3 budget for the fiscal year. The budget so prepared shall include all the details of the
4 financial plan for the fiscal year, as to both expenditures and means of financing as
5 presented in the executive budget, with such revision as may be necessary to bring
6 them into conformity with the appropriation and revenue acts and other acts to
7 provide means of financing, and with the legislative provisions in effect, governing
8 administration of the budget. The budget prepared for Fiscal Year 2017-2018 and
9 each fiscal year thereafter shall include a statement of total incentive
10 expenditure allocations and a statement of incentive expenditure allocations by
11 department.
12 * * *
13 Section 2. This Act shall become effective on July 1, 2016; if vetoed by the governor
14 and subsequently approved by the legislature, this Act shall become effective on July 1,
15 2016, 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 318 Original 2016 Regular Session Donahue
Present law provides for the definitions of words used in Title 39 of the Revised Statutes.
Proposed law retains present law and amends the definition of "incentive expenditures" to
mean the reductions of and payments from current tax collections because of payments to
businesses and individuals for the refund, rebate, or transferable credits granted through
either an incentive contract between the state or an agency of the state and a specific
recipient, or certification or approval of a specific recipient by the state or an agency of the
state. Proposed law retains list of incentive benefit statutes included in present law.
Present law provides that the Revenue Estimating Conference shall establish a forecast of
incentive expenditures for each fiscal year, which shall include a forecast of the amount of
payments from and reductions of current tax collections to be granted by incentive
expenditures.
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 Revenue Estimating Conference.
Proposed law retains present law and further provides that the executive budget for Fiscal
Year 2017-2018 and each fiscal year thereafter shall include a statement of incentive
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SLS 16RS-317 ORIGINAL
expenditures as contained in the incentive expenditure forecast. The incentive expenditures
allocations shall be stated as a separate description in the program activities of the respective
department, agency, or authority of the state which administers an incentive expenditure. A
statement of total incentive expenditure allocations 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 relevant department, agency, or authority.
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 allocations shall be stated as a separate description in the program
activities of the respective department, agency, or authority of the state which administers
an incentive expenditure. A statement of total incentive expenditure allocations 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 relevant department, agency,
or authority.
Present law provides relative to the general appropriation bill and provides that the general
appropriation bill and other appropriation bills shall not appropriate any funds, which are not
part of the official forecast except appropriations from existing statutorily dedicated funds
for purposes other than the fund's statutory purpose as provided in present law.
Proposed law retains present law and further provides that the General Appropriation Bill
and other appropriation bills shall include a statement of incentive expenditure allocations
as contained in the incentive expenditure forecast. The incentive expenditures allocations
shall be stated as a separate description in the program activities of the respective
department, agency, or authority of the state which administers an incentive expenditure.
Such incentive expenditures shall not be included as, nor counted towards the operating
expenses of the relevant department, agency, or authority.
Present law provides that after the passage of the appropriation and revenue acts, but not
later than October first of each year, the governor shall cause to be prepared a complete state
budget for the fiscal year. The budget so prepared shall include all the details of the financial
plan for the fiscal year, as to both expenditures and means of financing as presented in the
executive budget, with such revision as may be necessary to bring them into conformity with
the appropriation and revenue acts and other acts to provide means of financing, and with
the legislative provisions in effect, governing administration of the budget.
Proposed law retains present law but further provides that the budget so prepared for Fiscal
Year 2017-2018 and each fiscal year thereafter shall include a statement of total incentive
expenditure allocations and a statement of incentive expenditure allocations by department.
Effective July 1, 2016.
(Amends R.S. 39:2(15.1)(intro para), 24.1(A) and (E)(3), 34(A), 51(A)(2) and 56(A); adds
R.S. 39:36(A)(7))
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words in boldface type and underscored are additions.