La. Admin. Code tit. 13 § V-215

Current through Register Vol. 50, No. 11, November 20, 2024

Section V-215 - General Award Provisions

A. In the event the secretary and the governor determine, in their discretion, that the award would be appropriate, an award agreement resulting from the expedited procedures for the award shall demonstrate the intent and commitments of the company, the public entity, and LED to enter into an award agreement consistent with the Constitution and laws of the state of Louisiana and with these rules.

1. An award agreement will be executed between LED and the award recipient, and may include as a party the public entity through which the funding is to be administered. The award agreement will specify the amount of the grant or loan award or loan guaranty, the terms and conditions of the award, the performance objectives expected of the company and/or the public entity, and the compliance requirements to be enforced in exchange for state financial assistance, including, but not limited to, the company's commitments and time lines as to the number of jobs to be created and/or retained and their compensation and payroll levels, and commitments and time lines for investment. Under the agreement, the public entity or LED will oversee the progress of the project. LED will disburse funds to the public entity and/or company in a manner determined by LED, and there shall be appropriate securitization of the award in a manner consistent with normal commercial practices.

2. Eligible project costs may include an advance of funds to provide the necessary commitment that will, in the opinion of the secretary, or LED and the governor, provide for the project and may include matters that in whole or in part provide for engineering and architectural expenses; costs associated with site, building and/or office space acquisition and/or leasing; site preparation costs; construction expenses; building materials; office expenses including furniture, fixtures, computers, consumables, transportation equipment, rolling stock or equipment; relocation or moving expenses; real estate fees, commissions, compensation or associated costs; training expenses, including pre-employment training, assessments, classroom training, on-the-job training, and other justifiable training expenses; and any other justifiable costs. Commitment to funding of these costs may be made, provided that the entity receiving these funds shall comply with the public bid laws to the extent that such laws are applicable.

3. Project costs ineligible for award funds include, but are not limited to, matters such as the refinancing of existing debt, public or private, and expenses already approved for funding through the General Appropriations Bill, or for cash approved through the Capital Outlay Bill, or approved for funding through the state's capital outlay process for which the Division of Administration and the Bond Commission have already approved a line of credit and the sale of bonds.

4. The secretary, or LED and/or the governor, may limit the amount of awards under this program to effect the best allocation of resources based upon the number of projects requiring funding and the availability of program funds.

5. Award funds will be available to the public entity and/or company on an as-needed reimbursement basis following submission to LED of required documentation (cost reports, and any supporting documentation, if requested by LED) as set forth in the award agreement between the parties.

6. Award funds will not be available for disbursement until:

a. the LED and the award recipient(s) have entered into an award agreement that is in fulfillment of these rules and is in accordance with the representations made by the applicant(s) for the award; and

b. confirmation is received that all closing conditions specified in the award agreement and any other necessary preconditions to the funding of the award or the implementation of the project have been satisfied.

7. The award recipient shall be required to submit progress reports, describing the progress toward the performance objectives specified in the award agreement. Progress reports shall include a review and certification of the company's hiring records and the extent of the company's compliance with contract employment commitments, including number of jobs created and/or retained, and the compensation or payroll levels achieved and maintained. Copies of the company's Louisiana Department of Labor (LDOL) ES-4 Forms ("Quarterly Report of Wages Paid") filed by the company may be required to be submitted with periodic progress reports, cost reports, or as otherwise requested by LED to support the company's reported progress toward the achievement of performance objectives, employment and compensation or payroll level requirements. Further, either LED or the public entity (if a party to the award agreement) shall oversee the timely submission of reporting requirements of the company to LED.

8. In the event a party to the award agreement fails to meet its performance objectives as specified in its award agreement with LED, LED shall retain the rights to withhold award funds, modify the terms and conditions of the award, and to reclaim disbursed funds from the company and/or public entity in an amount commensurate with the scope of the unmet performance objectives and the foregone benefits to the state or as may be otherwise provided by the award agreement between the parties.

9. In the event an applicant or other person is reasonably believed to have filed a false statement in its application or in a progress report or other filing, the LED shall immediately notify the District Attorney of the Parish of East Baton Rouge and may also notify any other appropriate law enforcement personnel so that an investigation may be undertaken with respect to the application of state funds to the project.

10. LED shall retain the right to require and/or conduct financial and performance audits of a company, the public entity and/or project, including all relevant records, accounts and documents of the company and the public entity.

La. Admin. Code tit. 13, § V-215

Promulgated by the Department of Economic Development, Office of the Secretary, LR 31:422 (February 2005), amended LR 35:890 (May 2009).

AUTHORITY NOTE: Promulgated in accordance with R.S. 36:104 and 36:108.