Lengthy hearings have become a theme of the early weeks of the 2025 Regular Session and legislators pulled long hours again last week, particularly members of House Natural Resources, who met for more than 10 hours in a hearing focused on carbon capture and sequestration (CCS) policies, rejecting several bills that would have been harmful to CCS projects across the state. Also on the economic development front, House Commerce approved 1A-supported legislation to establish a new job-creation program in the state. Week four kicks off with a light committee schedule this morning followed by the House and Senate gaveling in mid-afternoon.
Read on for a recap of week three and a look ahead at week four.
High Impact Jobs
House Commerce held a hearing on 1A-supported legislation to create the High Impact Jobs Program within Louisiana Economic Development (LED) – HB 507 by 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 110% of the parish average wage (in distressed areas)
- 18% benefit for jobs paying 125% of the parish average wage
- 22% benefit for jobs paying 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.
HB 507 was reported favorably by House Commerce last week and now heads for a hearing in House Appropriations.
Carbon Capture and Storage (CCS)
House Natural Resources held a marathon hearing last Tuesday on a series of 1A-opposed bills that would have had a chilling effect on the future of carbon capture and storage (CCS) projects in Louisiana. Committee members met for more than six hours before adjourning to head to the House floor for the afternoon, then returned to committee to continue debates well into the evening. By adjournment that night, Committee members had rejected nearly every bill on the day’s agenda, including the following 1A-opposed measures:
- HB 4 by Rep. Charles Owen would have given authority to parish governing bodies to approve Class VI injection wells within the parish. Louisiana was granted permitting and regulatory authority over Class VI wells by the U.S. Environmental Protection Agency (EPA) in late 2023, after proving our capability to establish a regulatory framework that meets or exceeds federal standards – HB 4 would fragment this regulatory framework and send the message that Louisiana wants to increase red tape on CCS projects
- HB 380 by Rep. Schamerhorn would have removed eminent domain authority for carbon dioxide sequestration
- HB 522 by Rep. McCormick would have placed a moratorium on carbon dioxide sequestration to provide time for a study on the risks of such storage
- HB 553 by Rep. Schamerhorn would have prohibited the exercise of eminent domain or unitization for a pipeline that carries carbon dioxide
Legal Climate Reform
One issue exacerbating Louisiana’s highest-in-the-nation insurance costs is our litigious environment. Our state’s current legal system is structured to foster excessive litigation costs that are passed on to consumers in the form of higher premiums. 1A supports legislation that will help to cultivate a more business-friendly, nationally competitive legal climate through common-sense changes that bring Louisiana more in line with other states.
House legislators kicked off week three by moving a stack of business-backed insurance measures over to the Senate:
- HB 34 by Rep. Glorioso would allow judges and juries to see all relevant evidence related to medical expenses in personal injury lawsuits
- HB 427 by Rep. Bamburg would provide for use of reversionary trusts, funds used exclusively to pay for medical expenses for plaintiffs as such expenses accrue, rather than awarding the plaintiff a lump sum at trial for medical costs that may never arise
- 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
- HB 432 by Rep. Chenevert would strengthen Louisiana’s third party litigation financing law passed in 2024. HB 432 prohibits third party financers from collecting an award greater than that of a plaintiff and requires the attorneys entering into contracts to disclose agreements within 30 days of being retained
- 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 435 by Rep. Egan would place a $5 million cap on general damages
- HB 440 by Rep. Henry would establish a rebuttable presumption that if a plaintiff chooses not to utilize available health insurance after an injury, it is considered a failure to mitigate damages
- HB 443 by Rep. Henry would require attorneys to notify defendants of their intent to file a civil lawsuit within 10 days of the attorney being retained, providing the defense an opportunity to mitigate claims before a lawsuit is filed
- 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
These measures now head to the Senate for consideration.
LOOKING AHEAD
Legislators dive into week four today, with a short list of House committees meeting Monday morning before the House and Senate each convene mid-afternoon. 1A-supported legislation to create a new tax credit to encourage wider employment of apprentices, interns, and youth workers (HB 533) will be up for a potential vote in House Ways and Means and legislation to update a key early childhood tax credit (SB 233) is scheduled for debate on the Senate floor. On Tuesday, 5/6, House Natural Resources will be back for another hearing on harmful legislation that would stifle the economic advantages Louisiana stands to gain from the deployment of carbon capture and storage (CCS) projects across the state.
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.