Louisiana Senate Bill SB566

Louisiana 2010 Regular Session

• Introduced: 3/29/10
• Refer: 3/29/10

Caption

Requires the recipient of certain economic development funds to adhere to certain hiring, purchasing, reporting and repayment conditions. (8/15/10) (OR SEE FISC NOTE GF EX See Note)

Impact

This legislation significantly impacts state laws regarding economic development funding. It requires businesses to report key employment data to the Department of Economic Development, including the number of Louisiana residents hired and the average wages paid. Additionally, businesses are encouraged to engage with local suppliers by mandating that they contract at least twenty-five percent of their outsourced business and purchase at least fifty percent of their supplies from Louisiana companies. The bill is intended to support local businesses and stimulate the state economy.

Summary

Senate Bill 566, sponsored by Senator Dorsey, mandates that any business receiving monetary incentives from the state of Louisiana must enter into a cooperative endeavor agreement before funds are disbursed. This agreement is designed to ensure that businesses contribute to the local economy through hiring practices, procurement from local suppliers, and reporting requirements. The overarching goal of the bill is to promote economic development by linking state funding to performance metrics that benefit the state and its residents.

Sentiment

The sentiment around SB 566 appears largely positive among proponents who argue that this legislation is a proactive measure to ensure that economic incentives result in direct benefits to the local population. Supporters believe that such accountability will help secure jobs and boost local businesses. However, there may be some concerns among businesses regarding the additional administrative responsibilities and financial implications of compliance with these requirements, indicating a mixed sentiment among the business community.

Contention

Notable points of contention regarding the bill revolve around the implications of mandatory repayments should a business leave the state after receiving incentives. If a business departs within three years, it must return a portion of the funds based on the initial amount received or the actual cost of doing business, whichever is greater. This provision may deter businesses from relocating or expanding in Louisiana due to the perceived financial risk involved. Critics may view these repayment requirements as a deterrent to new businesses, potentially stifling the very economic development the bill aims to promote.