GREEN SHEET REDIGEST
HB 1015 2022 Regular Session Schexnayder
ECONOMIC DEVELOPMENT: Provides relative to financial incentives for events
held in Louisiana
DIGEST
Present law creates the Major Events Incentive Program to provide funding for specific
major events and provides definitions for "endorsing municipality", "endorsing parish",
"event support contract", "local organizing committee", "qualified major event", and "site
selection organization".
Proposed law retains present law.
Present law requires the Dept. of Economic Development (LED) to administer the program.
Proposed law moves administration of the program to the lieutenant governor, through the
Dept. of Culture, Recreation and Tourism.
Proposed law allows grants to be used to pay or reimburse the endorsing parish, endorsing
municipality, local organizing committee, official tourism commission, convention and
visitors bureau, or official destination marketing organization for the cost of applying or
bidding for selection as the site of the event and for the costs of planning for or conducting
the event.
Present law requires approval of the commissioner of administration and the Joint Legislative
Committee on the Budget (JLCB) prior to the execution of any contract with a local
organizing committee, endorsing parish, or endorsing municipality for a qualified major
event.
Proposed law repeals the approval of the commissioner of administration.
Proposed law requires the lieutenant governor to submit an economic analysis that has been
approved by the Joint Legislative Committee on the Budget to the state treasurer and to
include in such analysis: (1) the designated area impacted by the occurrence of the qualified
major event, (2) the total incremental increase in sales and use receipts in the designated area,
(3) the total incremental increase in excise tax receipts in the designated area, and (4) the
amount equal to 50% of the total incremental increases of the sales and use receipts and
excise tax receipts.
Proposed law requires an act of the legislature prior to the treasurer transferring 50% of both
the total incremental sales and use receipts and the excise tax receipts from the general fund
to the program fund, as directed by the Legislature, upon receipt of the economic analysis
required pursuant to proposed law.
Proposed law requires the lt. governor to submit a written report to JLCB and include in such
report the entities that received grant funding for events in the prior fiscal year, the economic
impact of the events, and the amount of incremental tax revenue transferred to the fund as
required by proposed law by Sept. first of each year.
Present law creates the Major Events Incentive Program Subfund as a subfund of the
Louisiana Mega-Project Development Fund.
Proposed law changes the subfund to a separate fund of the state treasury and renames it the
Major Events Incentives Fund.
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Prepared by Sherry Phillips-Hymel. Proposed law creates the Events Incentive Program to provide grant funding to
municipalities, parishes, official tourism commissions, convention and visitors bureaus,
official destination marketing organizations, and nonprofit corporations hosting an event.
Proposed law requires the lt. governor, through the Dept. of Culture, Recreation and
Tourism, to administer the program.
Proposed law provides for eligibility criteria and required documentation for events to
receive funding through the program.
Proposed law requires any application and documentation required by proposed law to be
submitted no later than 180 days prior to the event to be considered.
Proposed law provides that an entity is eligible to receive up to 25% of the total cost incurred
by the entity for the event, not to exceed $250,000 per event.
Proposed law requires the lt. governor to promulgate rules to administer the program and to
use the emergency rulemaking process for the promulgation of the initial administrative rule.
Effective July 1, 2022.
(Amends R.S. 51:2365(D)(3) and (F)(2); Adds R.S. 51:1260 and 1261; Repeals R.S.
51:2365(F)(1)(d) and 2365.1)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Commerce to the
original bill:
1. Remove LED from involvement with the program, including removal of
references to LED throughout proposed law, and require the lt. governor to
provide an economic analysis to the state treasurer and include certain criteria in
the analysis.
2. Require the treasurer to transfer 50% of the incremental increase in sales and use
and excise tax receipts to be paid from the general fund to the program fund
established in proposed law immediately upon receiving the economic analysis.
3. Require the lt. governor to submit an annual report by Sept. first of each year
which includes certain information regarding the program and to provide such
report to JLCB.
4. Make nonprofit corporations eligible for funding through the program.
5. Require applications for funding be submitted by 180 days prior to the event.
6. Require the lt. governor to promulgate rules for administration of the program
and use of the emergency rulemaking process to promulgate initial rules.
7. Make technical changes.
The House Floor Amendments to the engrossed bill:
1. Include official tourism commissions, convention and visitors bureaus, and
official destination marketing organizations as eligible grant recipients for the
Major Events Incentive Program and the Events Incentive Program.
2. Change one of the qualifying criteria for a site selection committee to select a site
in La. for an major qualified event.
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Prepared by Sherry Phillips-Hymel. 3. Add required documentation for entities applying for the Events Incentive
Program.
4. Increase the economic impact for an event to be eligible for the Events Incentive
Program from $250,000 to $350,000.
5. Add language to transfer remaining funds from the Major Events Incentive
Subfund to the Major Events Incentive Fund and contracts entered into with LED
for the Major Events Incentive Program to the lt. governor.
6. Add an effective date of July 1, 2022.
7. Make technical changes.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Finance to the reengrossed
bill
1. Require approval by the Joint Legislative Committee on the Budget for all
contracts entered into by the Lt. Governor to solicit a qualified major event.
2. Require all monies in the Major Events Incentive Fund and the Events Incentive
Fund to be subject to an appropriation.
3. Require approval by the Joint Legislative Committee on the Budget for all
economic analyses submitted to the treasurer.
4. Require an act of the legislature prior to the treasurer transferring state general
funds.
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Prepared by Sherry Phillips-Hymel.