26 April 2017

Committee action, Apr. 26: HB 245, HB 6

DID YOU KNOW?
HB 245 by Rep. Frank Hoffman would have home- and community-based providers to not pay or to recoup background check fees from applicants. Hoffman told the House and Welfare Committee that the state believes providers already can recoup fees, but better to exempt them and allow the opportunity to collect fees, if not at the time after employment of the applicant. About half of all applicants fail such checks, so he thought it appropriate to exempt fees to prevent such a burden placed upon agencies that deal with waiver programs.

Without objection, the bill moved favorably.

DID YOU KNOW?
HB 6 by Rep. Paul Hollis would direct the state to adopt policies to relieve burdensome financial regulatory portions of the Patient Protection and Affordable Care Act to businesses and individuals. He told the House Insurance Committee of the bill’s consistency with an executive order issued by Pres. Donald Trump, and it likely would mean getting rid of the individual mandate.

Rep. Vincent Pierre asked whether this could be done legally. Chairman Kirk Talbot said anything could be done legally. Hollis said any constitutional challenge could be defended.

Opponents declared that to implement this law would have fewer people insured, without the penalty, and alleged health outcomes would worsen, and said it was too risky constitutionally. It also might create confusion, they argued.

Talbot pointed out the penalty represented a new form of taxation, mandating payment simply for being alive, rather than government imposing a regulation on the action of somebody. He also noted that the Constitution vested powers of this sort in the states. Rep. Mark Abraham argued that the system was broken, and change had to occur for things to improve regardless of problems that could happen as a result of getting rid of penalties. Rep. Greg Cromer said the system already caused confusion and was unstable, so the bill would not make matters worse.

Rep. Edmond Jordan said the impact would not be known given uncertainty of the policy direction nationally. Hollis noted the executive order gave some legitimacy to this move, although Edmond claimed the taxing power of Congress would conflict with that – even though former Pres, Barack Obama had used executive authority not to implement portions of the law in the past, just as Hollis’ bill would permit.

Jordan objected to favorable passage, then the bill was moved favorably by a 9-4 vote, with all Republicans present voting in favor joined by a couple of Democrats while all opposition came from Democrats.

23 April 2017

Legislative regular session through Apr. 22, 2017

Bill filing came to an end this week, with these additions to the list of the good and bad (note: bills that did not have an obvious positive or negative affect on tax burdens are not included, but as these become known may be added to the list):

THE GOOD: HB 652 by Rep. Chris Broadwater would simplify sales taxation with lower rates; SB 243 by Sen. Barrow Peacock would rein the alternative fuel conversion tax credit.

THE BAD: HB 628 by Rep. Sam Jones would institute a gross receipts tax; HB 630 by Rep. Ted James would get rid of deductibility of federal tax burden on state income taxes; HB 632 by Rep. Steve Carter would increase gasoline taxes (similar bill: HB 659); HB 637 by Rep. Lance Harris would permit greater subsidization of insurance for high-risk properties; HB 638 by Jones would continue the extra cent on sales tax another five years; HB 647 by Rep. Kenny Havard would institute an oil processing tax; HB 650 by Broadwater would increase taxes on those individuals who pay the most; HB 654 by Rep. Gene Reynolds would increase insurance rates; HB 655 by Reynolds would broaden sales tax reduction without corresponding rate reduction; HB 656 by Rep. Rob Shadoin would increase property taxes to fund the Taylor Opportunity Program for Scholars; HB 667 by Rep. Cedric Glover creates an unneeded taxing authority over Shreveport; HB 672 by Rep. Joe Stagni would impose a fee discriminatorily on rideshare companies; SB 249 by Sen. Norby Chabert would fragment allocations going to coastal restoration and protection.

17 April 2017

Committee action, Apr. 17: SB 18, SB 25, SB 33

DID YOU KNOW?
SB 18 by Sen. Barrow Peacock would eliminate the alternative fuel conversion credit for vehicles. He told the Senate Revenue Committee that the money given away, 36 percent currently but due to go to 50 percent next year, the most generous in the country, would cost nearly $17 million over five years. He pointed out that even if it provided an incentive for cleaner air, this was quite costly to the state and that many conversions would occur anyway. In response to questions, he noted that in tight budgetary times the costs of this exceeded benefits.

A few senators insisted that the costs were worth it, and Sen. Eddie Lambert said he would like to retain some form of this, if perhaps at a lower level. After a promise to bring up the bill again soon in order to confer with other senators on the item, Peacock somewhat hesitantly agreed to defer.

DID YOU KNOW?

15 April 2017

Legislative regular session through Apr. 15, 2017

Bill filing continues for a short period, and adds to the list of the good, bad, and ugly bills of the 2017 Regular session. Otherwise, as is typical, few bills are heard and fewer still move in the first week of these sessions.

THE GOOD: HB 622 by Rep. Stephanie Hilferty would remove excessing revenue-raising authority from the Ernest N. Morial-New Orleans Exhibition Hall Authority.

SCORECARD

09 April 2017

The Good, Bad, and Ugly -- 2017 Regular Session

The Louisiana Legislature Log returns for the 2017 Regular Session of the Louisiana Legislature, beginning with exposition of the good, and, and ugly bills prefiled for this year. Keep in mind that bills regarding specific budgeting are not included. Note also that a number of revenue bills tied into others which, if separate, would raise or lower total taxes but tied in may have other effects. An opinion was rendered only on those that, either designed to stand alone or in conjunction with others, that either increased or decreased taxes unambiguously. As the session proceeds, some others may be added as amendments make relationships clearer, or be removed.

THE GOOD: HB 6 by Rep. Paul Hollis would initiate the process to provide financial relief for those not wishing to buy health insurance; HB 68 by Rep. Barry Ivey would allow unlicensed law-abiding citizens to carry concealed firearms; HB 80 by Rep. Stephanie Hilferty would phase out the corporate franchise tax (similar bills: HB 361, HB 433); HB 82 by Rep. Sherman Mack would encourage more efficient use of indigent defense funds; HB 113 by Rep. Chris Broadwater would maintain higher education governing boards’ ability to set fees; HB 117 by Rep. Franklin Foil would raise grade point average standards for the Taylor Opportunity Program for Students (similar bill: HB 194); HB 135 by Valarie Hodges would prohibit sanctuary policies; HB 143 by Rep. Dee Richard would eliminate Tulane University scholarships given away by state legislators; HB 152 by Rep. Tony Bacala would create more efficient and better service provision for people with disabilities; HB 187 by Rep. Greg Cromer would end the solar energy tax credit early (similar bills: HB 301, HB 331); HB 245 by Rep. Frank Hoffman would improve the quality of waiver services care; HB 256 by Rep. Rick Edmonds would amend the Constitution to prohibit felons for 15 years without a pardon for five and other violent criminals for five years from running for elective office or appointment (similar bill: HB 351); HB 257 by Hollis would amend the Constitution to prohibit traffic camera enforcement; HB 272 by Hollis would create a more realistic recall procedure; HB 275 by Rep. Katrina Jackson would repeal a cent of sales tax a year early; HB 294 by Bacala would ensure more taxes raised on vehicles would go to roads projects; HB 302 by Rep. Lance Harris would encourage greater personal responsibility by those on probation; HB 330 by Rep. Cameron Henry would amend the Constitution to distribute Minimum Foundation Program funds more equitably; HB 337 by Rep. Julie Stokes would provide a tax credit for improvements made to the residences of individuals with certain disabilities; HB 355 by Ivey would accomplish comprehensive tax reform with a flat rate and elimination of many exceptions (similar bills: HB 360, HB 370, HB 371); HB 385 by Broadwater would repeal corporate income and franchise taxes and eliminate related tax credits; HB 441 by Rep. Robbie Carter would amend the Constitution to eliminate revenue sharing over a decade (similar bill: HB 457); HB 442 by Rep. Bob Hensgens would amend the Constitution to cap appropriations annually with a growth factor with excess funds eventually available to taxpayers (similar bill: HB 477); HB 449 by Rep. Neil Abramson would amend the Constitution not to allow tax exemption to nonprofits’ property not in use; HB 518 by Edmonds would try to make reviews of efficacy of funds and dedications (similar bill: HB 590); HB 543 by Rep. Beryl Amedee would eliminate the state as teacher union dues collector; HB 556 by Rep. Kevin Pearson would discourage fraudulent claims of disability by school personnel; HB 564 by Rep. Jay Morris reduces corporate income taxes; HB 565 by Jay Morris would increase ballot security; HB 588 by Jay Morris would divert proceeds from less useful dedicated funds into the general fund; HB 601 by Stokes would create uniformity in sales tax administration; SB 11 by Sen. Barrow Peacock would incorporate the Louisiana School Employees' Retirement System into the Teachers' Retirement System of Louisiana; SB 40 by Sen. Jay Luneau ends the Motion Picture Investors Tax Credit (similar bill: SB 78); SB 51 by Peacock would give a tax credit on franchise taxes paid in other states; SB 62 by Sen. Bret Allain would amend the Constitution to phase out the inventory tax over ten years; SB 67 by Sen. Jim Fannin would encourage audit compliance; SB 98 by Sen. Jack Donahue would improve budgetary decision-making (similar bill: SB 100); SB 111 by Sen. Beth Mizell would increase protections against criminal sexual exploitation; SB 130 by Allain would amend the Constitution to phase out the inventory tax and reduce the industrial property tax exemption related to school funding; SB 136 by Sen. Rick Ward would make some less-useful tax credits nonrefundable (similar bill: SB 161); SB 144 by Sen. Ronnie Johns would help combat human trafficking; SB 186 by Ward would flatten rates and remove exemptions for individual income taxation; SB 188 by Sen. Sharon Hewitt would introduce work requirements or equivalents for able-bodied working-age adults receiving Medicaid; SB 198 by Mizell would have the state vet relocation of monuments of historical importance; SB 226 by Hewitt discards low-priority dedications and transfers their funds balances to the general fund (similar bill: HB 458).

THE BAD: HB 15 by Rep. Ted James would impair the rights of individuals to form a municipality by allowing nonresidents to veto their desires; HB 34 by Rep. Steve Pugh would consolidate higher education governance boards, but in a half-baked and incomplete way; HB 36 by Rep. Sam Jones would encourage early retirements from jobs covered by state pensions to seek elected office; HB 54 by Robbie Carter would induce a tax increase on hydrocarbons that would reduce jobs and be passed along to consumers (similar bills: HB 55, HB 60, HB 169); HB 67 by Rep. Barbara Norton would create an unenforceable ban targeting only one type of firearm; HB 91 by Foil would create too much inflexibility in funding TOPS; HB 101 by Rep. Terry Landry would increase violent crime by removing capital punishment as a deterrent (similar bill: SB 142); HB 103 by Rep. Walt Leger would discourage work productivity by increasing the Earned Income Tax Credit (similar bill: HB 175); HB 112 by Rep. Joseph Bouie would introduce needless bureaucracy onto government contractors over a nonexistent equal pay issue (similar bills: SB 2; HB 384); HB 118 by Hoffman would raise tobacco taxes but not dedicate these to health care spending (similar bill: HB 271); HB 139 by Rep. Jack McFarland would restrict unduly executive branch discretion; HB 157 by Rep. Randal Gaines would encourage politicized enforcement of public records laws; HB 163 by Rep. Malinda White would raise needlessly individual income taxes (similar bills: HB 197, HB 254, HB 258, HB 312, HB 347, HB 349, HB 350, HB 353, HB 462); HB 170 by Robbie Carter would remove the horizontal drilling tax exemption; HB 174 by Jackson would continue penalizing Louisianans for income earned in other states (similar bill: SB 33); HB 176 by Rep. Rodney Lyons would increase the cap of state money going to Councils on Aging; HB 177 by Rep. Helena Moreno would decrease crime deterrence; HB 181 by Robbie Carter would add another unproductive carve-out for property taxation; HB 202 by Rep. Mark Abraham would discourage school choice (similar bill: HB 434; HB 546); HB 228 by Rep. Pat Smith would complicate needlessly the reapportionment process; HB 229 by Smith would decrease deterrence of crime (similar bill: HB 235); HB 239 by Bouie would create busywork for charter schools that does not enhance accountability; HB 247 by Jackson would increase permanently and needlessly corporate income taxes (similar bills: HB 274, SB 79); HB 249 by Rep. Tanner Magee would decrease use of monetary inducements to deter crime; HB 255 by Rep. Gary Carter would raid unwisely the Budget Stabilization Fund; HB 282 by Norton would create needless bureaucracy and disincentives for business; HB 333 by Rep. Patrick Jefferson would induce too much hardship on tax filing individuals and too much bureaucracy to compensate; HB 406 by Rep. Marcus Hunter would increase costs needlessly by adding two Supreme Court districts; HB 413 by Leger would provide too little flexibility in funding indigent defense; HB 429 by Rep. Steve Pylant would pay work-release inmates more than minimum wage; HB 443 by Stokes would decrease legislative budgetary flexibility with an inspector general dedication; HB 453 by Abramson would increase needlessly costs of notaries public; HB 454 by Abramson would keep an unneeded tax exception; HB 484 by James would continue the extra one cent on sales taxation; HB 497 by Norton would prohibit corporal punishment in schools; HB 544 by Rep. Mike Danahay does not guarantee adequate information solicited in voter registration forms; HB 553 by Jones would increase needless fuel taxes (similar bill: HB 561, HB 578, HB 600); HB 563 by Jones would institute a gross receipts tax on corporations; HB 570 by Richard would create too much inflexibility in governance by mandating contract reductions; HB 585 by Jay Morris would create an unneeded dedication for higher education; SB 13 by Sen. Blade Morrish would restrict some lower-income households from exercising school choice for kindergartners; SB 24 by Sen. JP Morrell would carve another unnecessary exemption into state sales taxation (similar bill: SB 27); SB 25 by Morrell would discourage school choice options (similar bill: SB 95); SB 71 by Donahue would discourage TOPS reform away from entitlement status (similar bills: HB 390, SB 157); SB 73 by Sen. John Milkovich would dilute educational standards and accountability (similar bills: HB 532, HB 536; HB 572); SB 83 by Sen. Regina Barrow foists an unneeded hotel occupancy tax hike on much of East Baton Rouge Parish; SB 106 by Sen. Wesley Bishop would distract higher education with social service duties; SB 110 by Luneau would create unenforceable standards regarding TOPS; SB 118 by Sen. Yvonne Colomb would create incentives to occupy flood-prone housing; SB 139 by Sen. Danny Martiny would weaken too much crime deterrence; SB 153 by Sen. Troy Carter would increase the minimum wage and unemployment; SB 155 by Troy Carter would regulate needlessly business personnel practices; SB 166 by Morrell ends some more useful tax exemptions (similar bill: SB 206); SB 167 by Barrow forces unnecessary costs upon air quality standard violators (similar bill: HB 394); SB 235 by Morrell keeps too inflated the Motion Picture Investor Tax Credit.

THE UGLY: HB 12 by Mack would award generous pay to part-time planning commission members in Livingston Parish – why pay for what is clearly meant as a voluntary position in this one place; HB 52 by Rep. Patrick Connick would create another special dedication when too many exist already; HB 142 by Pugh would create a one-shot special election day for constitutional amendments – what’s wrong with the usual election day; HB 207 by Rep. Gary Carter would create a dual officeholding exception for health care providers on faculty or staff of a public higher education institution – why.