Louisiana House Bill HCR5

Louisiana 2020 2nd Special Session

• Introduced: 9/28/20
• Refer: 9/28/20

Caption

Suspends the authority of the secretary of the Department of Revenue to enter into new contracts or renewals of existing contracts pursuant to the Procurement Processing Company Rebate Program (Item #65)

Impact

This resolution specifically affects the operations of the Department of Revenue and influences the procurement processing sector by halting any new arrangements during the specified period. It underscores a cautious approach by the legislature towards the fiscal responsibilities tied to the state budget, especially concerning rebate programs that aim to attract businesses for economic growth. By freezing new contracts, the legislature aims to review the effectiveness and necessity of the Procurement Processing Company Rebate Program amidst broader budgetary planning.

Summary

HCR5 is a House Concurrent Resolution that suspends the authority of the secretary of the Department of Revenue in Louisiana to enter into new contracts or renew existing contracts under the Procurement Processing Company Rebate Program. This suspension is intended to last until sixty days after the final adjournment of the 2021 Regular Session of the Legislature. The resolution does not interfere with existing contracts that were established prior to this suspension. The main purpose of the bill seems to be a response to the economic implications associated with new contracts and the renewal of existing ones based on the outcomes of the ongoing legislative session.

Sentiment

The general sentiment surrounding HCR5 appears to be mixed, with proponents likely viewing it as a prudent and responsible action to manage state resources effectively. Critics may perceive the suspension as a detrimental move for economic development, as it restricts the state's ability to offer competitive incentives to attract new businesses. This indicates a rift among lawmakers about the balance between responsible fiscal management and aggressive economic development strategies.

Contention

Notable points of contention surrounding HCR5 involve the potential impact on economic strategies that rely on engaging procurement processing companies. Some may argue that suspending contracts could undermine the state's attractiveness to businesses that rely on procurement support. Additionally, there may be discussions regarding the efficacy of the current rebate program and whether it has accomplished its intended economic goals or if reform is necessary. These concerns highlight the broader debate on the management of tax incentives and how state policies align with economic growth objectives.