SLS 17RS-321 ORIGINAL
2017 Regular Session
SENATE BILL NO. 98
BY SENATOR DONAHUE
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
FISCAL CONTROLS. Provides for the appropriation of incentive expenditures. (7/1/17)
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 expenditures and incentive expenditure programs; to provide
5 for inclusion in the executive budget, the general appropriation bill, other
6 appropriation bills, and the state budget of incentive expenditures; to provide for an
7 effective date; and to 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 or "incentive expenditure
Page 1 of 7
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 98
SLS 17RS-321 ORIGINAL
1 programs" mean the reductions of and payments from current tax collections
2 because of payments to businesses and individuals for the refund, rebate, or
3 transferable credits granted through either an incentive contract between the
4 state or an agency of the state and a specific recipient, or certification or
5 approval of a specific recipient by the state or an agency of the state, including
6 the following incentive benefit statutes:
7 * * *
8 §24.1. Incentive expenditure programs forecast
9 A. The Revenue Estimating Conference shall establish a forecast of incentive
10 expenditures for each fiscal year, beginning for Fiscal Year 2016-2017, hereinafter
11 referred to as the "incentive expenditure forecast", which shall be derived and
12 revised only as provided in this Section. The incentive expenditure forecast shall
13 include a forecast of the amount of payments from and reductions of current tax
14 collections to be granted by each of the incentive expenditure programs including
15 the incentive benefit statutes listed in R.S. 39:2(15.1) for the forecasted year. The
16 forecast shall be an amount that is no less than the estimated amount of payments
17 from and reductions of current tax collections which will be made by each of the
18 incentive expenditure programs including the incentive benefit statutes listed in
19 R.S. 39:2(15.1) for the forecasted fiscal year.
20 * * *
21 E.
22 * * *
23 (3) In addition to the data required to be submitted in Paragraph (2) of this
24 Subsection, each agency of the state, including the Department of Revenue, the
25 Department of Economic Development, and the Department of Culture, Recreation
26 and Tourism, which administers an incentive expenditure program as defined in R.S.
27 39:2(15.1) shall submit to the Revenue Estimating Conference, the legislative fiscal
28 office, and the division of administration, upon request, an estimate of incentive
29 expenditures for each of the incentive expenditure programs including the tax
Page 2 of 7
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 98
SLS 17RS-321 ORIGINAL
1 benefit statutes listed in R.S. 39:2(15.1) administered by the respective agency. Such
2 estimates shall be an amount that is no less than the estimated amount of reductions
3 of and payments to be made from current tax collections for each incentive
4 expenditure program for the current fiscal year. The participants of the conference
5 shall work in conjunction with the respective agency to finalize all estimates for
6 presentation to the conference.
7 * * *
8 §34. Executive budget
9 A.(1) The governor shall cause to be prepared an executive budget presenting
10 a complete financial and programmatic plan for the ensuing fiscal year which shall
11 include recommendations for appropriations from the state general fund and
12 dedicated funds which shall not exceed the official forecast of the Revenue
13 Estimating Conference. Except as provided by R.S. 39:75(E), the executive budget
14 shall not include recommendations for appropriations from any fund in excess of the
15 official forecast of money available for appropriation from that fund.
16 (2) The executive budget for Fiscal Year 2018-2019 and each fiscal year
17 thereafter shall include a separate recommendation for appropriations from the
18 state general fund and dedicated funds for the incentive expenditure programs
19 contained in the incentive expenditure forecast. The incentive expenditure
20 programs shall be stated as a separate description in the program activities of
21 the respective department, agency, or authority of the state which administers
22 the incentive expenditure program. Such incentive expenditures shall not be
23 included as, nor counted towards the operating expenses of the relevant
24 department, agency, or authority. The recommended appropriations shall not
25 exceed the amount estimated in the official forecast for incentive expenditure
26 programs.
27 * * *
28 §36. Contents and format of executive budget; supporting document
29 A. The executive budget shall present a complete financial and programmatic
Page 3 of 7
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 98
SLS 17RS-321 ORIGINAL
1 plan for the ensuing year, and it shall be configured in a format so as to clearly
2 present and highlight the functions and operations of state government and the
3 financial requirements associated with those functions and operations. The executive
4 budget shall be a performance-based budget and as such may include key objectives
5 and key performance indicators. The commissioner of administration may designate
6 key objectives and key performance indicators to be included in the executive
7 budget. Additionally, the executive budget shall include at a minimum the following:
8 * * *
9 (7) A separate recommendation for appropriations from the state general
10 fund and dedicated funds for incentive expenditure programs. The
11 recommended appropriations shall not exceed the amount estimated in the
12 incentive expenditure forecast. The recommendation for appropriations for
13 incentive expenditure programs shall be stated as a separate description in the
14 program activities of the respective department, agency, or authority of the
15 state which administers an incentive expenditure program. Such incentive
16 expenditures shall not be included as, nor counted towards the operating
17 expenses of the relevant department, agency, or authority.
18 * * *
19 §51. General Appropriation Bill; other appropriation bills
20 A.
21 * * *
22 (2) The General Appropriation Bill and other appropriation bills shall not
23 appropriate any funds, as defined in Article VII, Section 10(J) of the Constitution of
24 Louisiana, which are not part of the official forecast or the incentive expenditure
25 forecast except as provided for in R.S. 39:54(A)(2). Appropriations in the general
26 appropriation bill and other appropriation bills for Fiscal Year 2018-2019 and
27 each fiscal year thereafter shall include a separate recommendation setting
28 forth the incentive expenditure program, which appropriations shall not exceed
29 the amount estimated in the incentive expenditure forecast. The incentive
Page 4 of 7
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 98
SLS 17RS-321 ORIGINAL
1 expenditure programs shall be stated as a separate description in the program
2 activities of the respective department, agency, or authority of the state which
3 administers an incentive expenditure program. Such incentive expenditure
4 programs shall not be included as, nor counted towards the operating expenses
5 of the relevant department, agency, or authority. Notwithstanding any provision
6 of law to the contrary, no incentive expenditure program shall be made to any
7 person unless the incentive expenditure is appropriated as provided in this
8 Section.
9 * * *
10 §56. State budget to be prepared by governor
11 A. After the passage of the appropriation and revenue acts, but not later than
12 October first of each year, the governor shall cause to be prepared a complete state
13 budget for the fiscal year. The budget so prepared shall include all the details of the
14 financial plan for the fiscal year, as to both expenditures and means of financing as
15 presented in the executive budget, with such revision as may be necessary to bring
16 them into conformity with the appropriation and revenue acts and other acts to
17 provide means of financing, and with the legislative provisions in effect, governing
18 administration of the budget. The budget prepared for Fiscal Year 2018-2019 and
19 each fiscal year thereafter shall include a statement of total incentive
20 expenditure programs and a statement of incentive expenditure programs by
21 department.
22 * * *
23 Section 2. This Act shall become effective on July 1, 2017; if vetoed by the governor
24 and subsequently approved by the legislature, this Act shall become effective on July 1,
25 2017, or on the day following such approval by the legislature, whichever is later.
Page 5 of 7
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 98
SLS 17RS-321 ORIGINAL
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Martha S. Hess.
DIGEST
SB 98 Original 2017 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" or
"incentive expenditure programs" 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 expenditure programs 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
expenditure programs.
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 2018-2019 and each fiscal year thereafter shall include a separate recommendation for
appropriations from the state general fund and dedicated funds for the incentive expenditure
programs as contained in the incentive expenditure forecast. The incentive expenditure
programs shall be stated as a separate description in the program activities of the respective
department, agency, or authority of the state which administers the incentive expenditure.
Such incentive expenditures shall not be included as, nor counted towards the operating
expenses of the relevant department, agency, or authority. The recommended appropriations
shall not exceed the amount estimated in the official forecast for incentive expenditures.
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 separate recommendation for appropriations from the state general fund and dedicated
funds for incentive expenditure programs. The recommended appropriations shall not
exceed the amount estimated in the incentive expenditure forecast. The recommendation for
appropriations for incentive expenditure programs 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 program. Such incentive expenditure programs 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 separate recommendation setting forth the
incentive expenditure program, which appropriations shall not exceed the amount estimated
in the incentive expenditure forecast. The incentive expenditure programs shall be stated
Page 6 of 7
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 98
SLS 17RS-321 ORIGINAL
as a separate description in the program activities of the respective department, agency, or
authority of the state which administers an incentive expenditure program. Such incentive
expenditure programs shall not be included as, nor counted towards the operating expenses
of the relevant department, agency, or authority. Incentive expenditure programs shall not
be made to any person unless the incentive expenditure is appropriated.
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 2018-2019 and each fiscal year thereafter shall include a statement of total incentive
expenditure programs and a statement of incentive expenditure programs by department.
Effective July 1, 2017.
(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))
Page 7 of 7
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.