Legislators officially made it through the halfway point of session last week and marked the occasion by advancing the all-important state budget and capital outlay bills. House Appropriations also approved legislation to create two new programs designed to boost Louisiana’s economic competitiveness – the High Impact Jobs Program and the Site Investment and Infrastructure Improvement Fund. Across the Capitol, members of the Senate Judiciary A Committee took action on several business-backed bills aimed at addressing Louisiana’s insurance crisis. Legislators must adjourn by June 12.
Read on for a recap of week five and a look ahead at week six.
Budget Bills Move to Senate
House legislators rounded out the week with debate on the state’s annual budget and capital outlay bills, sending a full slate of budget legislation to the Senate for consideration, including:
- HB 1 (McFarland) – provides for the ordinary operating expenses of state government for Fiscal Year 2025-2026
- HB 2 (Emerson) – provides for the comprehensive Capital Outlay budget
- HB 3 (Emerson) – provides for the Omnibus Bond Act
- HB 460 (McFarland) – makes supplemental appropriations for Fiscal Year 2024-2025
Senators will now take their turn with the budget bills as stakeholders across the state await the latest projections from the Revenue Estimating Conference (REC). The REC is set to meet this week to provide their final revenue forecast before legislators must finalize the state budget.
Statewide Economic Development
After initial approval in House Commerce earlier this session, House Appropriations held a hearing on 1A-supported legislation to create the High Impact Jobs Program within Louisiana Economic Development (LED) – HB 507 by House Ways and Means Chair Julie Emerson. The program would incentivize qualifying companies to create jobs that pay above the parish average wage, and provide a basic health benefits plan, by offering a reimbursable grant for a percentage of annualized wages. The program offers a scaled benefit structure to companies – higher wages paid yield a higher benefit:
- 8% benefit for jobs paying at least 110% of the parish average wage or the regional average wage, whichever is lesser (in distressed areas)
- 18% benefit for jobs paying at least 125% of the parish average wage
- 22% benefit for jobs paying at least 150% of the parish average wage
As currently proposed, the program would benefit businesses of all sizes, as there would be no threshold on the number of jobs required to qualify. Qualifying companies would only need to create one new job, other than the owner, that meets the program requirements to be eligible.
Another top priority bill impacting statewide economic development was reported favorably by House Appropriations last week – HB 433 by House Commerce Chair Daryl Deshotel. HB 433 would create the Site Investment and Infrastructure Improvement Fund to make meaningful upgrades to properties around the state that are primed to attract economic development projects, including upgrades such as roads, sewerage, gas lines, and more. Proactively identifying and improving these sites will better position the state to move quickly when companies are seeking to locate or expand operations in Louisiana.
HB 507 and HB 433 were both reported favorably as amended by House Appropriations last week and now head for consideration in the full House.
Legal Reform
Senate Judiciary A took up a slate of business-backed bills last week aimed at addressing Louisiana’s insurance crisis, advancing the below bills to the full Senate, albeit some with unfavorable amendments:
- HB 431 by Rep. Chenevert would move Louisiana from a pure comparative fault system to a modified comparative fault system, preventing claimants from recovering damages if they are found to be 51% or more at fault for their own injuries – this change would put Louisiana in line with comparative fault policies in 34 other states. Chairman Miller offered amendments to HB 431 to establish proportionate responsibility, meaning if the claimant is less than 50% at fault, the amount of damages awarded must be reduced in proportion to the degree of negligence, however additional provisions to require jury instructions on how fault determination will impact recovery raise concern with the business community.
- HB 434 by Rep. Dewitt would expand Louisiana’s “No Pay, No Play” policy by raising the bar for recovery for drivers involved in an accident that were driving without the insurance required by state law – the bill would raise the bar for bodily injury and property damage to $100,000, up from $15,000 and $25,000 respectively, encouraging safer driving and compliance with the state’s compulsory insurance law.
- HB 450 by Rep. Melerine would repeal the Housley Presumption, a legal principle that unfairly tips the scales against defendants by automatically assuming an injury was caused by an accident, even without evidence of causation.
- SB 231 by Sen. Reese would have, as originally drafted, allowed for introduction of evidence reflecting both the billed and paid amounts of medical expenses to serve as the basis for determining damage awards in personal injury cases, and permitted the admissibility of agreements between healthcare providers and third parties that guarantee payment for a claimant’s medical expenses once an injury claim is resolved. In order to move SB 231 to the Senate floor, Chairman Miller offered amendments that substantially weaken the bill, essentially reverting back to current law, but reducing the additional damage award that compensates the claimant for costs of procurement (premiums, copays, deductibles, etc.) from 40% to 30%.
1A will continue to engage with statewide partners on these measures as they advance to the full Senate.
LOOKING AHEAD
Today is slated to be a powerhouse day at the Capitol, with a hefty list of 1A-supported bills being considered across several committees and both the House and Senate floors. House Appropriations and House Ways and Means will consider 1A priority legislation to create a “One Door” workforce policy in the state (HB 624), create a work-based learning tax credit (HB 533), and update the School Readiness Tax Credit (SB 233). In the full House, members will consider two of 1A’s top priority bills – HB 433 by House Commerce Chair Daryl Deshotel, to create the Site Investment and Infrastructure Improvement Fund and HB 507 by House Ways and Means Committee Chair Julie Emerson, to create the High Impact Jobs Program.
1A is tracking key legislation across three priority areas:
- Economic competitiveness
- Talent development
- Infrastructure investment
Be on the lookout for 1A legislative updates on these issues, and more, at the beginning of each week during Session.