2017 Regular Session ENROLLED
SENATE BILL NO. 98
BY SENATORS DONAHUE AND THOMPSON
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
1 AN ACT
2 To amend and reenact the introductory paragraph of R.S. 39:2(15.1), 24.1(A), (C), and
3 (E)(3), 34(A), 51(A)(2), and 56(A) and to enact R.S. 39:24.1(E)(4) and (5) and
4 36(A)(7), relative to budgetary procedures; to define expenditures and incentive
5 expenditure programs; to provide for inclusion in the executive budget, the general
6 appropriation bill, other appropriation bills, and the state budget of incentive
7 expenditures programs; to provide for an effective date; and to provide for related
8 matters.
9 Be it enacted by the Legislature of Louisiana:
10 Section 1. The introductory paragraph of R.S. 39:2(15.1), 24.1(A), (C), and (E)(3),
11 34(A), 51(A)(2), and 56(A) are hereby amended and reenacted and R.S. 39:24.1(E)(4) and
12 (5) and 36(A)(7) are hereby enacted to read as follows:
13 §2. Definitions
14 As used in this Chapter, except where the context clearly requires otherwise,
15 the words and expressions defined in this Section shall be held to have the meanings
16 here given to them.
17 * * *
18 (15.1) "Incentive expenditures" means or "incentive expenditure
19 programs" mean the reductions of and payments from current tax collections
20 because of payments to businesses and individuals for the refund, rebate, or
21 transferable credits granted through either an incentive contract between the
22 state or an agency of the state and a specific recipient, or certification or
23 approval of a specific recipient by the state or an agency of the state, including
24 the following incentive benefit statutes:
25 * * *
26 §24.1. Incentive expenditure programs forecast
ACT No. 401
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1 A. The Revenue Estimating Conference shall establish a forecast of incentive
2 expenditures for each fiscal year, beginning for Fiscal Year 2016-2017, hereinafter
3 referred to as the "incentive expenditure forecast", which shall be derived and
4 revised only as provided in this Section. The incentive expenditure forecast shall
5 include a forecast of the amount of payments from and reductions of current tax
6 collections to be granted by each of the incentive expenditure programs including
7 the incentive benefit statutes listed in R.S. 39:2(15.1) for the forecasted year. The
8 forecast shall be an amount that is no less than the estimated amount of payments
9 from and reductions of current tax collections which will be made by each of the
10 incentive expenditure programs including the incentive benefit statutes listed in
11 R.S. 39:2(15.1) for the forecasted fiscal year.
12 * * *
13 C. The department which administers the incentive benefit program shall
14 give a report on the incentive expenditure program at each meeting of the
15 conference and shall notify the conference when the incentive expenditure forecast
16 is not sufficient to meet the requirements of current law or current administrative
17 procedures. The conference may revise the forecast as necessary.
18 * * *
19 E.
20 * * *
21 (3) In addition to the data required to be submitted in Paragraph (2) of this
22 Subsection, each agency of the state, including the Department of Revenue, the
23 Department of Economic Development, and the Department of Culture, Recreation
24 and Tourism, which administers an incentive expenditure program as defined in R.S.
25 39:2(15.1) shall submit to the Revenue Estimating Conference, the legislative fiscal
26 office, and the division of administration, upon request, an estimate of incentive
27 expenditures for each of the incentive expenditure programs including the tax
28 benefit statutes listed in R.S. 39:2(15.1) administered by the respective agency. Such
29 estimates shall be an amount that is no less than the estimated amount of reductions
30 of and payments to be made from current tax collections for each incentive
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1 expenditure program for the current fiscal year. The participants of the conference
2 shall work in conjunction with the respective agency to finalize all estimates for
3 presentation to the conference.
4 (4) In developing the estimate of incentive expenditures for each of the
5 tax benefit programs listed in R.S. 39:2(15.1), each agency of the state, including
6 the Department of Revenue, the Department of Economic Development, and the
7 Department of Culture, Recreation and Tourism, which administers an
8 incentive expenditure program, shall coordinate and implement procedures for
9 developing the estimate of the incentive expenditures for submission to the
10 Revenue Estimating Conference, the legislative fiscal office, and the division of
11 administration. Such procedures shall include consideration of, but not be
12 limited to:
13 (a) The statutory guidelines for the incentive expenditure program.
14 (b) Any application process for the incentive expenditure program.
15 (c) Estimates of the timeline from any application process through
16 approval of the application and the claiming of the tax benefit by a taxpayer.
17 (d) Historical data on the actual amount of reductions of and payments
18 made from tax collections for the incentive expenditure program.
19 (e) Projections of tax revenue or budgetary savings to be generated for
20 state or local government as a result of the incentive expenditure.
21 (5) The participants of the conference shall work in conjunction with the
22 respective agency or agencies to implement all procedures.
23 * * *
24 §34. Executive budget
25 A.(1) The governor shall cause to be prepared an executive budget presenting
26 a complete financial and programmatic plan for the ensuing fiscal year which shall
27 include recommendations for appropriations from the state general fund and
28 dedicated funds which shall not exceed the official forecast of the Revenue
29 Estimating Conference. Except as provided by R.S. 39:75(E), the executive budget
30 shall not include recommendations for appropriations from any fund in excess of the
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1 official forecast of money available for appropriation from that fund.
2 (2) The executive budget for Fiscal Year 2018-2019 and each fiscal year
3 thereafter shall include a listing of all incentive expenditure programs by
4 department, including the forecasted amount of each incentive expenditure as
5 adopted for the current fiscal year by the Revenue Estimating Conference. The
6 incentive expenditures programs shall be stated as a separate description in the
7 program activities of the respective department, agency, or authority of the
8 state which administers the incentive expenditure program. Such incentive
9 expenditures shall not be included as, nor counted towards, the operating
10 expenses of the relevant department, agency, or authority.
11 * * *
12 §36. Contents and format of executive budget; supporting document
13 A. The executive budget shall present a complete financial and programmatic
14 plan for the ensuing year, and it shall be configured in a format so as to clearly
15 present and highlight the functions and operations of state government and the
16 financial requirements associated with those functions and operations. The executive
17 budget shall be a performance-based budget and as such may include key objectives
18 and key performance indicators. The commissioner of administration may designate
19 key objectives and key performance indicators to be included in the executive
20 budget. Additionally, the executive budget shall include at a minimum the following:
21 * * *
22 (7) The executive budget for Fiscal Year 2018-2019 and each fiscal year
23 thereafter shall include a listing of all incentive expenditure programs by
24 department, including the forecasted amount of each incentive expenditure as
25 adopted for the current fiscal year by the Revenue Estimating Conference. The
26 incentive expenditure programs shall be stated as a separate description in the
27 program activities of the respective department, agency, or authority of the
28 state which administers an incentive expenditure program. Such incentive
29 expenditures shall not be included as, nor counted towards, the operating
30 expenses of the relevant department, agency, or authority.
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1 * * *
2 §51. General Appropriation Bill; other appropriation bills
3 A.
4 * * *
5 (2) The General Appropriation Bill and other appropriation bills shall not
6 appropriate any funds, as defined in Article VII, Section 10(J) of the Constitution of
7 Louisiana, which are not part of the official forecast except as provided for in R.S.
8 39:54(A)(2). The General Appropriation Bill and other appropriation bills for
9 Fiscal Year 2018-2019 and each fiscal year thereafter shall include a listing of
10 all incentive expenditure programs by department, including the forecasted
11 amount of each incentive expenditure as adopted for the current fiscal year by
12 the Revenue Estimating Conference. The incentive expenditure programs shall
13 be stated as a separate description in the program activities of the respective
14 department, agency, or authority of the state which administers an incentive
15 expenditure program. Such incentive expenditure programs shall not be
16 included as, nor counted towards, the operating expenses of the relevant
17 department, agency, or authority.
18 * * *
19 §56. State budget to be prepared by governor
20 A. After the passage of the appropriation and revenue acts, but not later than
21 October first of each year, the governor shall cause to be prepared a complete state
22 budget for the fiscal year. The budget so prepared shall include all the details of the
23 financial plan for the fiscal year, as to both expenditures and means of financing as
24 presented in the executive budget, with such revision as may be necessary to bring
25 them into conformity with the appropriation and revenue acts and other acts to
26 provide means of financing, and with the legislative provisions in effect, governing
27 administration of the budget. The budget prepared for Fiscal Year 2018-2019 and
28 each fiscal year thereafter shall include a statement of total incentive
29 expenditure programs and a statement of incentive expenditure programs by
30 department.
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1 * * *
2 Section 2. This Act shall become effective on July 1, 2017; if vetoed by the governor
3 and subsequently approved by the legislature, this Act shall become effective on July 1,
4 2017, or on the day following such approval by the legislature, whichever is later.
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED:
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