LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: SB 57 SLS 202ES 39
Bill Text Version: ENGROSSED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: October 14, 2020 7:11 PM Author: LUNEAU
Dept./Agy.: Revenue
Subject: Service Providers: Reporting Requirements Analyst: Benjamin Vincent
REVENUE DEPARTMENT EG SEE FISC NOTE GF RV See Note Page 1 of 1
Establishes reporting requirements for businesses and governmental entities using service providers. (2/3 - CA7s2.1(A))
(1/1/21) (Item #23)
Proposed law requires recipients of services who are required to make a return to the Internal Revenue Service to provide
information on payments made to service providers, via the “LA A GAME Annual Report”, beginning January 1, 2022.
Proposed law provides that the Secretary of the Department of Revenue (LDR) will promulgate rules to prescribe the format
of the report, and may issue waivers or alternative formats as required, and provides that the required information is due on
or before February 28th of every year. Proposed law provides for a penalty of $100 for each failure to report required
information, with a maximum penalty of $10,000 per year.
Effective January 1, 2021.
EXPENDITURES 2020-21 2021-22 2022-23 2023-24 2024-25 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0 $0 $0
REVENUES 2020-21 2021-22 2022-23 2023-24 2024-25 5 -YEAR TOTAL
State Gen. Fd. $0 SEE BELOW SEE BELOW SEE BELOW SEE BELOW $0
Agy. Self-Gen. $0 SEE BELOW SEE BELOW SEE BELOW SEE BELOW $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0
EXPENDITURE EXPLANATION
LDR reports anticipated total initial staff time for programming and testing costs of approximately $83,000. As the bill
specifies an initial reporting deadline of March 2022, LFO assumes that this cost will be incurred during the several months
preceding the deadline in FY22.
The programming costs include approximately $57,000 to implement a digital process for capturing data from paper records,
and approximately $26,000 to construct a data warehouse for required reports.
REVENUE EXPLANATION
No direct impact on income tax revenues is anticipated due to proposed law, as relevant tax bases and rates are unaffected.
However, the intent of the bill appears focused on identifying potential cases of misclassification of employees for income tax
withholding purposes. To the extent that proposed law enhances compliance and enforcement, general fund revenues may
increase, but potential revenue gains are speculative. Additionally, agency self-generated revenues may increase to the
extent that service recipients that fail to comply are identified and penalized.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Gregory V. Albrecht
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Chief Economist


Statutes affected:
SB57 Engrossed: 47:1508(B)(28)
SB57 Reengrossed: 47:1508(B)(28)