DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of the
legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law
or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 535 Original 2025 Regular Session Mandie Landry
Abstract: Provides for the legislative auditor's authority to evaluate and report on tax incentives in
the state. Provides for the powers, duties, and functions of the legislative auditor as it
pertains to the evaluation of and reporting on tax incentives. Provides for the legislative
auditor's power to recapture and recover tax incentive funds.
Present law (R.S. 47:1517.1) authorizes the legislative auditor ("LLA") to conduct performance
audits of state agency programs that administer tax incentives in order to evaluate the impact,
efficiency, effectiveness, and cost-effectiveness of programs and to identify programs that are vital
and in the best interests of the citizens of Louisiana. Proposed law retains present law.
Proposed law authorizes the LLA to make regular evaluations and to report on each tax incentive
administered by a state agency pursuant to present law, but provides that the LLA may exempt from
evaluation any incentive that he concludes has a minimal fiscal impact. Provides that the LLA may
contract with third parties to assist with evaluations.
Proposed law requires that the LLA prepare a cost-benefit analysis of tax incentives and the impact
they have on state revenue. Further provides that the evaluations shall include quantitative
assessments.
Proposed law grants the LLA the authority to ensure companies participate in evaluations and
accurately verify data collected. Provides that the LLA may recapture and recover a particular tax
incentive or a portion of a particular tax incentive from a company if a company refuses to submit
required data or does not meet the contractual obligations for an incentive. Further provides that any
amount of money that has been recaptured or recovered pursuant to proposed law will be used to
fund future evaluations, future economic development, or general expenses.
Proposed law requires the LLA to submit a report to the legislature every odd-numbered year.
Further requires that reports contain recommendations on whether to retain, reform, or repeal a tax
incentive.
Present law (R.S. 24:513) provides for the general powers and duties of the LLA. Provides that the
LLA has the authority to compile financial statements and to examine, audit, or review the books of
the state treasurer, all public boards, commissions, agencies, departments, political subdivisions of
the state, public officials and employees, public retirement systems, municipalities, and all other
public or quasi public agencies or bodies. Proposed law retains present law. Proposed law provides for an additional power of the LLA. Provides that the LLA has the authority
to recapture and recover funds in connection with tax incentives pursuant to proposed law.
(Adds R.S. 47:1517.2 and R.S. 24:513(Q))