October 4, 2012 2 GFOA - 2012 Fall Conference October 4, 2012 GFOA - 2012 Fall Conference Budget 3

LEGISLATIVE

& LEGAL UPDATES

GOVERNMENT FINANCE OFFICERSASSOCIATION

2012 Fall Conference

PRESENTED BY:

JENIFER SCHAYE GENERAL COUNSEL

DARYL G. PURPERA, CPA, CFELOUISIANA LEGISLATIVE AUDITOR

OCTOBER 4, 2012

October 4, 20122GFOA - 2012 Fall Conference

October 4, 2012 GFOA - 2012 Fall Conference

Budget3

General Appropriations Act Act 13

• $26.5 billion state budget, comprised of the following sources of revenue:• $11.3 billion in federal funds;• $7.7 billion in state general

funds;• $2.7 billion interagency

transfers;• $2.2 billion in fees and self-

generated revenues; and• $2.6 billion in statutory

dedications.

Funding for Fiscal Year 2012 -2013 • Addressed $220 million deficit in the

current year.• Addressed $304 million shortfall for

next year.• Decreased total spending by $66

million.

Budget Shortfalls

• Tapped the “Rainy Day” fund in SCR 128 to cover $204.7 million REC revenue reduction in current year.

• Reduces use of “one-time” money for recurring expenditures to $273 million.

• Funds sweep and capture of other revenue totaling $397 million in HB 822.

A Balancing Act

GFOA - 2012 Fall ConferenceOctober 4, 2012 4

Budget Stabilization Fund

• SCR 128 – Authorized and appropriated the use of one time

“rainy day funds” for FY 2011/2012 and requires that any excess revenue from the 11/12 Fiscal Year up to $204.7 Million be returned to the Budget Stabilization Fund.

– Administration argues only applies to revenues recognized on or before June 30, 2012.

October 4, 2012 GFOA - 2012 Fall Conference 5

43%

25%

13%

7%

7%3%

2% K-12 & Special Schools (SGF $3.315 B / Total $5.439 B)

DHH & LSU HCSD (SGF $1.934 B / Total $9.757 B)

Higher Ed (SGF $993.6 M / Total $2.913 B)

Public Safety & Juv. Justice (SGF $530 M / Total $1.037 B)

Other Requirements (SGF $506 M / Total $757 M)

General Gov't (SGF $272 M / Total $5.766 B)

Children & Family Services (SGF $162 M / Total $809 M)

State General Fund(SGF) AllocationFY 2012-2013

NOTE: The dollar figures above do not include a $37 Million SGF reduction mandated by the preamble in HB 1, which reductions are to be allocated by the Commissioner of Administration.


$4.3 Billion State Capital Construction Budget

.

Priority 1 – Reauthorization of existing projects; eligible for a cash line of credit: $1.54 B

Priority 2 – Proposed new funding for projects; eligible for a cash line of credit: $277 M

Priority 3 – Proposed future funding for projects; must receive a line of credit: $14.5 M

Priority 5 – Both proposed new funding and reauthorizations of existing funding for projects; eligible for a non-cash line of credit: $1.15 B

Division of Administration recommends projects for receipt of both cash and non-cash lines of credit. The State Bond Commission considers and grants lines of credit.



Ethics

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Ethics

• Act 488 – Exempts uncompensated volunteer fire and police

personnel from mandatory annual ethics training.

• Act 574 – Modifies filing deadlines and rules for notices

relative to financial disclosure statements.


Ethics

• Act 607 – Provides for changes to the appeals process for

the ethics adjudications.• Act 608 – Clarifies the roles of the Ethics Board and Ethics

Adjudicatory Boards and the process for adjudicating alleged ethics violations. Modifies the one year period for the Board to bring charges and makes this prescriptive.



Public Bid

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Public Bid & Public Contracts

• Act 142 – Amends R.S. 38:2212.10 to clarify that the

required E-Verify attestations by public contractors is only for contracts for Public Works.

• Act 598 – Amends R.S. 38:2227(A) to only require

attestation of lack of convictions of certain crimes by lowest bidder.


Public Bid & Public Contracts

• Act 647 – Amends R.S. 38:2215 to require execution of a contract

within 45 days of selection of lowest bidder if documents are submitted in 10 days and no bid challenges are made.

• Act 655 – Amends the definition of “Public Works” to exclude

operation of any public facility or immovable property owned, used, or leased by a public entity.



Public Meetings

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Public Meetings

• Act 461 – Restricts amendments to an agenda less than 24

hours before meeting and places additional requirements regarding procedures for agenda items.

• Act 747 – Requires additional posting of meeting notices to

public entities website no less than 24 hours prior to meeting.



Economic Development

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Economic Development & Tax Credits and Rebates

• Act 507 – Establishes the Competitive Projects Payroll Incentive Program.

• Act 25 – Authorizes a tax rebate (up to 95%) for donations to a school tuition

organization for non-public k-12 schools.

• HR 106– Requests various state entities to provide information relative to

existing statutory dedications and tax deductions, exclusions, and credits and to report findings and recommendations to the legislature



Ad Valorem 18

Ad Valorem

• Act 218 – Provides for the duties of the Sheriff (tax collectors) and the Louisiana

Legislative Auditor in the remittance of monies to public retirement systems from tax collections.

• Act 283 – Amends the notice requirements of ballot language for the creation or

renewal of ad valorem taxes.

• Act 539 – Provides changes to the notice requirements for the levying of

additional or increased millage rates without voter approval.



Investments

20

Investments

• Act 264 – Provides for investments by Hospital Service

Districts.• Act 282 – Provides for investments by political subdivisions

concerning investments in bonds, debentures, notes, etc issued by the State of Louisiana or its political subdivisions.



Retirement

22

RETIREMENT

• Act 483– Creates a cash balance retirement plan for:• LASERS nonhazardous duty employees• Higher education members of TRSL

– Effective for Employees hired on or after July 1, 2013

October 4, 2012 GFOA - 2012 Fall Conference 23


Transportation

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Transportation

• Act 512 – Repeals R.S. 32:392.1 and allows for

impoundment of vehicles upon first offense for failure to provide proof of car insurance.

• Act 865 – Provides for local vote on the renewal of tolls for

the Crescent City Connection.


Transportation

• SCR 20 – Requests that the Department of Transportation and Development

(DOTD) hold public meetings relative to proposed closures of public railroad crossings on non-state maintained parish and municipal roads.

• Of Note– The proponents and opponents of traffic cameras used to catch speeders came to a non-

legislative resolution by agreeing to establish schedules of “speed zone thresholds” above which tickets can be issued and requiring cities to post additional signs warning motorists of a camera-enforced area.


OF INTEREST


Registration and Voting Tax RefundsElection Day

• Act 451 provides relative to registration and voting by certain

displaced registrants

• Act 818 allows state taxpayer who files a paper tax return to

select to get his refund in the form of a check

instead of a debit card.

• Act 577 delays the opening of voting polls

by one hour, from 6 to 7 a.m., except for elections

held on Tuesdays

27

OF INTEREST


Public ServantSale of Pets on Roadsides

• Act 349 allows for the expenditure of public

funds for certain awards and meals for firemen.

• Act 700 prohibits the sale of dogs and cats on the side of the road or

other public place, or in any parking lot unless

authorized by owner of the lot.

SCR 107 authorizes and directs public agencies to provide annual in-service education and

training on sexual harassment for its

public servants.

Firemen

28

OF INTEREST


Bullying School BoardsSchool Computers

• Act 861 is designed to strengthen the current

anti-bullying law. It further requires training for school employees on how to detect bullying.

• Act 386 requires local option elections in local school districts on term limits for school board

members.

• Act 436 authorizes school boards to sell

used personal computing devices to

students or their parents or guardians.

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Proposed Constitutional Amendments

• Act 868 – Would authorize the forfeiture of public retirement benefits by any

public servant convicted of a felony associated with and committed during his public service.

• Act 871 – Would authorize the granting of ad valorem tax exemption contracts

for businesses located in parishes which have chosen to participate in a program established for the granting of such contracts.

• Act 872– Proposes changes regarding constitutional filing deadlines for

legislation making changes to public retirement systems


Recent Attorney General Opinions

• 12-0095– Since the Capital Area Transit System is not a city, town or village, any

special ad valorem tax levied by it is subject to the homestead exemption.

• 12-0048– School boards must comply with both the provisions of

R.S. 39:1305(C)(2)(a) &(b) in budgeting under the Local Government Budget Act (LGBA).


Recent Attorney General Opinions

• 11-0249– Reimbursement for services performed by a volunteer firefighter is

permissible as long as such payments are nominal.

• 11-0210– A custodian of a public record is not required to convert its public

records into a format it does not already utilize in order to comply with a public records request.

• 11-0146– The Louisiana Board of Ethics has authority to approve and perfect a

binding consent opinion with a person who has allegedly violated laws under the jurisdiction of the Board of Ethics, and has the authority to sign that consent opinion without the concurrence of the Ethics Adjudicatory Board.


Recent Cases of Note

• COMMUNITY PRESS, LLC D/B/A CENTRAL CITY NEWS v. CH2M HILL, INC, No. 2011-CA-0682, 2012 WL 601880 (La. App. 1 Cir.), writ denied, 85 So.3d 1274 (La. 2012)

• LIVINGSTON PARISH COUNCIL ON AGING v. WILLIE GRAVES, SHERIFF OF LIVINGSTON PARISH, No. 2011-CA-0787 (La. App. 1 Cir. 12/21/11) writ granted, 85 So.3d 1279 (La. 2012)

• STATE OF LOUISIANA V. MICHAEL PETITTO, 59 So.3d 1245 (La. 2011), rehearing denied, 4/29/11


Documents

October 4, 2012 2 GFOA - 2012 Fall Conference October 4, 2012 GFOA - 2012 Fall Conference Budget 3