2020 Legislative Report
www.abclouisiana.org |
jwalters@abcpelican.com
|
225-752-0092
Contents
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2020 Legislative Summary
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Tort ReformRepairing Louisiana’s Broken Legal Climate
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COVID-19 Employer Limited Liability
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Business
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Construction
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About ABC’s PAC
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About ABC of Louisiana
Summary of the 2020 Louisiana Legislative Sessions John Walters
VP of Governmental Relations, ABC of Louisiana The 2020 Regular Session of the Louisiana Legislature began on March 9th. That same day, Louisiana announced its first confirmed positive case of COVID-19. Nobody could have predicted what the next few days, weeks and months would bring for our country, our state and our families. After consulting with local, state and national health officials, including the Center for Disease Control (CDC), House Speaker Clay Schexnayder and Senate President Page Cortez temporarily adjourned the legislative session on March 13th. The Louisiana Legislature reconvened May 4th, leaving just 27 days to complete the budget, capital outlay and work through over 1,000 bills filed. In late May, nearing the end of the regular session and recognizing the great deal of work needed to be done to help Louisiana businesses get back in commerce after the COVID-19 pandemic, the Louisiana Legislature, for only the second time in its history, called itself into a special legislative session. With a compressed time frame and a major effort to provide businesses lifelines to recover from the impacts of COVID-19, the legislature prioritized reforming Louisiana’s legal climate, balancing the state budget, limiting government spending and creating the extending incentives to spur investment and economic activity across Louisiana. ABC of Louisiana was largely supportive of these legislative efforts. ABC of Louisiana had a successful 2020 regular and special legislative session. We expect to tally up more successes for the merit shop during the second special session projected to take place later in the year. Continued on page 4 3
Legislative Summary Continued... ABC of Louisiana’s achievements can be attributed to a deliberate body of work: • Proactive political activity by our affiliated political action committees • Legislative outreach and education • ABC member involvement • State Capitol advocacy • Legislative and Executive Branch relationships This thorough body of work allows us to work with lawmakers and policy makers quickly and effectively both in the interim as well as within the hectic pace of legislative sessions. Most importantly, ABC of Louisiana proudly promotes and defends free enterprise and the merit shop philosophy in Louisiana. This report is a recap of activity on several pieces of legislation ABC of LA was involved in during the 2020 sessions of the Louisiana Legislature. Thank you, as always, for your support of the merit shop construction industry across our state.
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Tort Reform - Repairing Louisiana’s Broken Legal Climate For decades, Louisiana has been a poster child for lawsuit abuse. Year after year, Louisiana has had the second highest insurance rates in the nation. These rates are largely driven by a toxic legal climate that has grown addicted to lawsuits and settlement checks that has, for too long, been protected in the State Capitol by bad laws on the books. After years of attempts to eliminate the predatory nature of Louisiana’s legal climate, the legislature, in a bi-partisan fashion, passed fair common-sense legislation to lower insurance rates and increase market competition. House Bill 57, by Speaker Clay Schexnayder, was a major win for Louisiana contractors, all of whom have been hit hard recently by the economic impacts of the COVID-19 pandemic. The bill was drafted based on input from a wide array of industry stakeholders and passed with broad support. It is a crucial first step to bringing Louisiana’s legal system in line with the rest of the country, lowering car insurance rates, and tackling barriers on economic and job growth that have consistently plagued our state. There were four major, common-sense planks of HB 57: • Elimination of the ‘seatbelt gag’ provision so that evidence of seatbelt usage can be considered in cases. (Also passed similar languaged in House Bill 55 by Johnson and Senate Bill 9 by Hewitt). • Collateral Source has been improved to reduce phantom medical bills. • Lowering the jury trial threshold makes it easier to get a trial by jury and will reduce the number of frivolous lawsuits. • Reforming Direct Action helps prevent reasonably high jury awards by keeping the focus of the case on the individuals involved in the accident. The enactment of the meaningful reforms in HB 57 will help bring competition back to our insurance markets and provide, both, our state’s working families and job creators with affordable insurance options. ABC of Louisiana played an integral role in the passage of HB 57. The Louisiana Legislature should be applauded for passing such a pivotal legislation. Governor Edwards should be commended for signing it into law (ACT No. 37). We look forward to future conversations and legislation to make Louisiana’s legal climate even better for contractors, job creators, and individuals.
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COVID-19 Employer Limited Liability Louisiana’s construction industry was designated as an “essential workforce” by Governor John Bel Edwards when determining what businesses would be allowed to remain operational during Louisiana’s COVID-19 pandemic Stay-At-Home order. ABC of Louisiana worked closely with the Edwards administration for the construction industry to be initially designated as an essential workforce. We worked even harder to retain essential status throughout the pandemic. One major concern that contractors in Louisiana had with this designation was civil liability for COVID-19 contractions. Three ABC of Louisiana supported bills specifically addressed these concerns.
House Bill 826 By Representative Thomas Pressly, protects employers from potential tort claims and civil liability for COVID-19 contractions and related injuries or illnesses suffered by employees at work. The law also protects employers against potential tort claims and civil liability for COVID-19 contractions sustained by individuals who are not covered by Louisiana’s worker’s compensation law. HB 826 further limits the potential civil liability that Louisiana businesses, including businesses and manufacturers involved in the sale and distribution of personal protective equipment, may face for COVID-19 contractions and related injuries or illnesses. HB 826 was signed by Governor Edwards and became ACT No. 336. ABC of Louisiana supported HB 826.
Senator Bill 491 By Senator Sharon Hewitt, offers liability protection to people and businesses who donate recovery services or products such as hand sanitizer and protective clothing including those selling types of disaster aid outside of the typical course and scope of thier operations. 6
Senate Bill 491 Continued...
The protections in SB 491 continue during any declared state of emergency in Louisiana. SB 491 was signed by Governor Edwards and became ACT No. 303. ABC of Louisiana supported SB 491.
Senator Bill 435 By Senator Ralph Abraham, provides that no person or entity, including any local or state governmental entity or employee thereof, shall be liable for damages or personal injury resulting from or related to an actual or alleged exposure of COVID-19 in the course of or through such person or entity’s business services or while engaged in the performance of such a person or entity’s duties, provided that the person or entity was relying on and generally followed applicable government standards and guidance related to COVID-19 exposure. SB 435 was signed by Governor Edwards and became ACT No. 362. ABC of Louisiana supported SB 435.
Business House Bill 4 By Representative Tanner Magee, extends the sunset for Louisiana’s income and corporation franchise tax credit for eligible costs and expenses incurred during the rehabilitation of a historic structure located in a downtown development district or a cultural district through 2025. HB 4 places use limitations on the tax credit going forward. HB 4 was signed by Governor Edwards and became ACT No. 25. ABC of Louisiana supported HB 4.
Senate Bill 189 By Senator Bodi White, creates the Main Street recovery program and dedicates $275 million of the Coronavirus AID, Relief and Economic Security (CARES) Act money to help local businesses while keeping nearly $500 million available to aid local governments. SB 189 is an effort to help small businesses ineligible for federal funding to remain operational. SB 189 was signed by Governor Edwards and became ACT No. 311.
House Bill 13 By Representative Mark Wright, allows the Louisiana Enterprise Zone Tax Credit Program to temporarily be used by retailers, hotels and restaurants with less than 50 employees, and extends the Enterprise Zone Tax Credit program sunset through 2026. HB 13 was signed by Governor Edwards and became ACT No. 28.
Senate Bill 6 By Senator Bret Allain, suspends the corporate franchise tax on the first $300,000 of taxable capital for small business corporations, defines “small business corporation” as an entity that is subject to the corporation franchise tax, and that has taxable capital of $1,000,000 or less. SB 6 retains the prior tax rate of $3 per $1,000 of taxable capital above $300,000 and retains the first bracket of the tax for all taxpayers with taxable capital above $1,000,000. SB 6 only applies to taxable periods beginning between July 1, 2020 and June 30, 2021.
House Bill 19 By Representative Thomas Pressly, expands the eligibility for participation in Louisiana Quality Jobs Tax Rebate program to COVID-19 impacted businesses with less than 50 employees. HB 19 further defines COVID-19 impacted businesses as any for-profit corporation, limited liability company, partnership, or sole proprietorship that had a physical and active operation in Louisiana on March 13, 2020, and ceased operations due to either one of the governor’s public health emergency proclamations or a mayor’s proclamation or executive order related to the public health emergency, or a decrease in customer activity or the inability to retain sufficient staff due to the COVID-19 public health emergency. HB 19 was signed by Governor Edwards and became ACT No. 29
SB 6 was signed by Governor Edwards and became ACT No. 15.
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Construction Senate Bill 163
Senate Bill 118
By Senator Stewart Cathey, allows licensed contractors the ability to restore and replace limited amounts of sod disrupted during the course and scope of a construction contract or permit without having to hold license issued by the Commissioner of Agriculture and Forestry.
By Senator Gary Smith, increases the contract limit, including labor and materials, to be done by a public entity from $150,000 to $250,000. SB 118 further provides that beginning February 1, 2015, and annually on February first of each subsequent year, the office of facility planning and control within the divison of administration shall adjust the “contract limit” by an amount not to exceed the annual percentage increase in the Consumer Price Index (CPI) in the preceding year.
SB 163 was signed by Governor Edwards and became ACT No. 308. ABC of Louisiana supported SB 163.
SB 118 was signed by Governor Edwards and became ACT No. 111.
House Bill 2
House Bill 35
By Representative Stuart Bishop, provides $5.6 billion for Louisiana’s capital outlay budget program for fiscal year 20202021. HB 2 further provides for the implementation of a five-year capital improvement program; provides for the repeal of certain prior bond authorizations; provides for new bond authorizations; and provides for authorization and sale of such bonds by the State Bond Comission.
By Representative Stuart Bishop, creates the Capital Outlay Savings Fund as a special fund in the state treasury and restricts use of the money in the fund for funding capital outlay projects or deposit into the Budget Stabilization fund. HB 35 further requires money in the fund to be invested by the state treasurer and requires that all unexpended and unencumbered monies in the fund at the end of the fiscal year remain in the fund, including interest earnings.
HB 2 was signed by Governor Edwards and became ACT No. 2
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HB 35 was signed by Governor Edwards and became ACT No. 30.
ABC’s Political Action Committees Get into politics or get out of business!
PURPOSE OF ABC PACS The purpose of ABC PACs is to work within the local and federal election process to further the goals of the association through direct involvement in supporting and opposing candidates running for local, state or national offices. This is accomplished through educating ABC Members on the importance of political activism and through financial support of merit shop candidates.
ABC MERIT AND PELICAN PAC The purpose of the Political Action Committees of the New Orleans/Bayou Chapter and the Pelican Chapter is to work within the state and local election process to further the goals of the chapter through direct involvement in supporting and opposing candidates running for office in Louisiana. This is accomplished through educating our members on the importance of political activism and through financial support of merit shop candidates. The ABC Merit and Pelican PACs are each governed by a board of directors who are elected annually. ABC New Orleans/Bayou and ABC Pelican Members contributions are combined with others to jointly support candidates for Louisiana offices.
HOW TO CONTRIBUTE ONLINE
ABC Merit PAC: www.abcmeritpac.com ABC Pelican PAC: www.abcpelicanpac.com ABC National PAC: pac.abc.org Password: ABCPAC2019
ABC NATIONAL PAC BADGE LEVELS Green/Young Professional ($50-$149) Gold/Leadership ($150-$499) Platinum/Congressional ($500-$999) Red/Senatorial ($1,000-$2,499) Black/Presidential ($2,500-$5,000)
ABC NATIONAL PAC The purpose of ABC PAC is to work within the federal election process to further the goals of the association through direct involvement in supporting and opposing candidates for the Office of President, United States Senate and United States House of Representatives. This is accomplished through educating our members on the importance of political activism and through financial support of merit shop candidates. ABC PAC is governed by fifteen board members who are appointed by the ABC National Chairman. The board members serve a three year term and represent each of the seven regions. The ABC PAC Board of Trustees work with the Regional Vice Chairs and chapter leadership to promote political involvement and assist in raising PAC funds. Trustees also approve all disbursements to candidates based on well-established guidelines such as voting records of incumbents. ABC's PAC is your voice in elective politics. ABC PAC members' contributions are combined with others to jointly support candidates for federal or national offices. This provides a unified and powerful voice for the merit agenda. It is also an opportunity to participate in one of the largest pro-business PACs in the nation.
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