House Bill No. 535, introduced by Representative Mandie Landry, aims to enhance the authority and responsibilities of the Louisiana Legislative Auditor (LLA) regarding the evaluation and reporting of state tax incentives. The bill enacts new provisions under R.S. 47:1517.2, which mandates the LLA to conduct regular evaluations of tax incentives administered by state agencies. The LLA is empowered to exempt any incentive deemed to have a minimal fiscal impact from evaluation and may contract with third parties for assistance. Additionally, the LLA is required to prepare a cost-benefit analysis of tax incentives, assessing their impact on job creation, personal income, and gross domestic product, while also ensuring that companies receiving these incentives participate in evaluations and provide accurate data.

Furthermore, the bill grants the LLA the authority to recapture and recover funds associated with tax incentives if companies fail to meet their contractual obligations or do not submit required data. Any recaptured funds will be allocated to support future evaluations, economic development, or general expenses. The LLA is also tasked with publishing a report every odd-numbered year that includes recommendations on whether to retain, reform, or repeal specific tax incentives. The bill also adds a new provision under R.S. 24:513(Q) to formalize the LLA's authority to recover funds related to tax incentives, thereby reinforcing the LLA's role in ensuring accountability and effectiveness in the administration of tax incentives in Louisiana.