§2771. High Impact Jobs Program; fund
A. For the purposes of this Section, the following terms have the following
meanings, unless context clearly indicates otherwise:
(1)"Basic health benefits plan" means individual coverage for basic hospital care,
physician care, and health care, effective no later than the first day of the month ninety days
after hiring, that provides the same coverage as that provided to executive, administrative,
and professional employees who are exempt from the minimum wage and maximum hour
requirements of the federal Fair Labor Standards Act, 29 U.S.C. 201 et seq., and which LED
determines to be in compliance with federally mandated healthcare requirements, or if no
federally mandated healthcare requirements exist, shall be determined by rule. For the
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§2771. High Impact Jobs Program; fund
A. For the purposes of this Section, the following terms have the following
meanings, unless context clearly indicates otherwise:
(1) "Basic health benefits plan" means individual coverage for basic hospital care,
physician care, and health care, effective no later than the first day of the month ninety days
after hiring, that provides the same coverage as that provided to executive, administrative,
and professional employees who are exempt from the minimum wage and maximum hour
requirements of the federal Fair Labor Standards Act, 29 U.S.C. 201 et seq., and which LED
determines to be in compliance with federally mandated healthcare requirements, or if no
federally mandated healthcare requirements exist, shall be determined by rule. For the
purposes of this Paragraph, the term "value" means the cost to the company or the cost of
equivalent coverage.
(2) "Company" means an entity authorized to do business in Louisiana pursuant to
state law.
(3) "Distressed area" means an area that is economically distressed or
underdeveloped as determined by rule and approved by the secretary.
(4) "Expenditure verification report" means a report of expenses prepared by an
independent certified public accountant, paid for by the company, in accordance with R.S.
36:104.1.
(5) "Jobs" means positions of employment that meet all of the following criteria:
(a) Did not exist in the state for that employer prior to the effective date of the
incentive contract entered into pursuant to the provisions of this Chapter.
(b) Are full-time, at-will employees and does not include seasonal or temporary
positions.
(c) Are directly employed by the company or a named subsidiary in the contract.
(d) Are filled onsite or remotely by Louisiana employees of the company or a named
subsidiary in the contract.
(e) Include a basic health benefits plan.
(f) Are approved by the secretary.
(6) "LED" means Louisiana Economic Development.
(7) "Louisiana employee" means a person who qualifies as a resident individual
pursuant to R.S. 47:31.
(8) "Parish average wage" means the average wage in a parish as determined
annually by the United States Department of Labor, Bureau of Labor Statistics, or its
successor agency.
(9) "Project site" means a site in Louisiana identified for a project on the program
application.
(10) "Qualifying company" means a company that is certified by LED as meeting the
eligibility requirements of this Section and that has executed a contract with LED providing
the terms and conditions for its participation in the program provided for in this Section.
(11) "Regional average wage" means the average wage within the geographic
boundaries of the regional economic development organization in which the project is
located, as calculated by LED and posted on its website.
(12) "Secretary" means the secretary of Louisiana Economic Development.
(13) "Wages" means compensation of an employee based on time worked or output
of production but does not include benefits or overtime compensation.
B. There is hereby established within LED the High Impact Jobs Program, hereafter
referred to in this Section as the "program", to encourage companies to create jobs that pay
above the parish average wage and offer a basic health benefits plan. LED shall offer the
following types of incentives pursuant to the program:
(1) A reimbursable grant of a percentage of annualized wages paid for qualifying
jobs, not to exceed two hundred thousand dollars per year, per job, based upon the parish
average wage paid where the project site is located at the time the incentive contract is
executed, subject to the following conditions:
(a) Eight percent for a project located in a distressed area with wages equal to or
greater than one hundred ten percent but less than one hundred twenty-five percent of the
lesser of the parish average wage or the regional average wage.
(b) Eighteen percent for a project located in a parish with wages equal to or greater
than one hundred twenty-five percent but less than one hundred fifty percent of the parish
average wage.
(c) Twenty-two percent for a project located in a parish with wages equal to or
greater than one hundred fifty percent of the parish average wage.
(2) A reimbursable grant to retain highly skilled workers with advanced degrees, as
approved by the secretary in accordance with program rules.
C.(1) A company may be eligible for participation in the program if it meets either
of the following minimum criteria and is approved by the secretary:
(a)(i) If the proposed project is located in a distressed area and the company will pay
wages on new jobs created equal to or greater than one hundred ten percent of the lesser of
the parish average wage or the regional average wage.
(ii) If the proposed project is located outside of a distressed area and the company
will pay wages on new jobs created equal to or greater than one hundred twenty-five percent
of the parish average wage.
(b) Retains highly skilled workers with advanced degrees.
(2)(a) Companies primarily engaged in the following sectors are ineligible for
participation in the program:
(i) Gaming.
(ii) Retail sales.
(iii) Professional sports teams.
(iv) State and political subdivision enterprises.
(v) Automotive rental and leasing.
(vi) Local solid waste disposal.
(vii) Local sewage systems.
(viii) Local water systems.
(b) LED may promulgate rules listing other professions or industries which are
eligible or ineligible for program participation.
D.(1) LED shall establish an application process for the program and establish an
application fee for the program in accordance with R.S. 36:104.
(2) Upon receipt of a company's application and the fee imposed pursuant to
Paragraph (1) of this Subsection, LED staff shall review the application and any other
information the secretary deems appropriate for a determination of the project's eligibility.
(3) If LED staff determine that an applicant is eligible, funding is available, and that
a grant would be in the best interest of the state, the secretary may execute a contract with
an applicant that contains the terms and conditions of the applicant's participation in the
program. The initial term of the contract shall be for three years; however, the contract may
be renewed for a single two-year period if the grant recipient has complied with the
provisions of this Section and all the terms of the contract and has not performed or failed
to perform any act which would have made the applicant default on any of the terms of the
contract.
(4)(a) A qualifying company may make a request for reimbursement by submitting
to LED an expenditure verification report detailing qualifying expenditures. The qualifying
company may submit the request for reimbursement either annually or at the end of the initial
and renewed contract periods, as applicable.
(b) LED staff shall review the expenditure verification report and issue
reimbursement payments for qualifying expenses.
(5) If an application is denied or if a reimbursement request is denied in whole or in
part, LED shall issue a written basis for denial.
E. A qualifying company shall not receive any other incentive administered by LED
for any expenditure or job for which it has received a grant pursuant to the provisions of this
Section nor can the company be receiving a benefit from the Louisiana Quality Jobs
Program, established pursuant to R.S. 51:2451 et seq.
F. The secretary may promulgate rules in accordance with the Administrative
Procedure Act to carry out the provisions of this Section. Notwithstanding any provision of
the Administrative Procedure Act to the contrary, rules promulgated pursuant to the
provisions of this Section are subject to the approval of the Joint Legislative Committee on
the Budget.
G. No incentive shall be awarded pursuant to the provisions of this Section for
applications received on or after July 1, 2035.
H.(1) There is hereby established in the state treasury as a special fund the High
Impact Job Fund, hereafter referred to in this Section as the "fund". Any money transferred,
donated, or appropriated to the fund by the legislature shall be deposited into the fund after
compliance with the requirements of Article VII, Section 9(B) of the Constitution of
Louisiana relative to the Bond Security and Redemption Fund.
(2) All unexpended and unencumbered monies in the fund at the end of the fiscal year
shall remain in the fund. The monies in the fund shall be invested by the state treasurer in the
same manner as monies in the state general fund, and interest earned on the investment of
monies in the fund shall be credited to the fund.
(3) Monies in the fund shall be appropriated to LED for awarding incentives
pursuant to the provisions of this Section.