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Louisiana Update – April 18, 2022
This was a relatively short week at the Capitol with the House of Representatives wrapping up business Wednesday evening for a long Easter weekend; their Thursday committees and scheduled floor activities were pushed to next week, when things will really get going. Again as a reminder: our session must adjourn by 6pm on June 6th, so there are still seven or so weeks to go.
ITEP, Local Govt, and Sales Tax Collections
Yep. That’s right. Louisiana does what Louisiana does. A lot of the same things over and over again. This time is like last time: local government has problems with state government and taxpayers (both individual and corporate), state government wants taxpayers to pay up, and taxpayers offer up suggestions to the legislature that are met with resistance by state and local government. It’s okay if your head is spinning. These are big-ticket issues, and maybe this time it’ll be different.
The current local/state/taxpayer battles specifically involve two Constitutional Amendments; one is SB 151 by Sen. Rogers Pope, R-Denham Springs, and the other is HB 681 by Speaker of the House Clay Schexnayder, R-Gonzales. SB 151 would essentially enshrine into the constitution Gov. John Bel Edwards’s 2016 executive order regarding the state’s Industrial Property Tax Exemption (ITEP); those orders and this proposed C.A. would wreak havoc for years to come via headaches and confusing hurdles with regard to ITEP and manufacturers seeking competitive advantages to operate in Louisiana. HB 681 seeks to improve the sales tax collection methods—a similar measure was rejected at the ballot box last fall, but the Speaker retooled language this year in order to make it more clear to voters that Louisiana needs to become more aligned with the rest of the country. See below from Jeremy Alford for more on the latest iteration.
KCP Resignation Domino Effect
The aftermath of (former) state Sen. Karen Carter Peterson's, D-New Orleans, resignation last week due to an ongoing federal investigation into her finances started the merry-go-round over who will take her place on key committees and who will run for her seat. There’s no definitive word yet on who will replace her as chair of Local and Municipal Affairs nor sought-after seats on Commerce and Revenue and Fiscal Affairs. Senate President Page Cortez, R-Lafayette, this week officially called a special election to fill her seat in the Senate; qualifying begins July 20 with a primary to occur along with November 8th federal elections. A few potential candidates include three current state representatives from New Orleans (all Democrats): Rep. Royce Duplessis, Rep, Aimee Freeman, and Rep. Mandie Landry. Peterson previously served as the chair of the state’s Democrat Party and continued to serve on the Democrat State Central Committee (but is resigning that post as well).
Cassidy for Governor Making Headlines. Again.
U.S. Sen. Bill Cassidy, R-Baton Rouge, this week told reporters, “…of course I’m thinking about it.” Although the race will not occur until next year many potential candidates are eyeing the position—mostly due to the wide-open nature of the seat due to Gov. John Bel Edwards being term limited. Other statewide elected officials interested in the race include state Treasurer John Schroder, Attorney General Jeff Landry, and Lt. Gov. Billy Nungesser (all three are Republicans). Many observers continue to wonder whether Cong. Garret Graves, R-Baton Rouge, or U.S. House Minority Whip Steve Scalise, R-Jefferson, would enter the race. The unique twist regarding Sen. Cassidy’s interest in the race involves a massive bargaining chip: Cassidy, if elected governor, would appoint his successor to the U.S. Senate. Time will tell whether that would entice any big names to avoid the race and endorse Cassidy in exchange for a chance at a Senate appointment.
A few of the bills AIA LA is currently keeping a close watch on (some favorable; some of concern, so please feel free to email the office should you have questions, concerns, or specific insight into any that you wish to share):
Multiple Historic Preservation bills in various areas of the state.
HB 305 | Gadberry, Foy(R) | Relative to LAPELS. Passed out of committee with Amendments.
HB 555 | Owen, Charles(R) | Relative to occupational licenses. Sill in committee.
HB 571 | Gadberry, Foy(R) | Relative to the State Uniform Construction Code. In the Senate.
HB 597 | Freeman, Aimee(D) | Relative to occupational licensing.
HB 598 | Selders, Larry(D) | Prohibits a building inspector from using his discretion in determining the applicability of building codes. House floor.
HB 619 | Selders, Larry(D) | Provides for immunity from civil liability for public entities when an owner or contractor fails to obtain the proper building permits, licenses, and inspections. Moving to Committee on Civil Law and Procedure.
HB 699 | LaCombe, Jeremy(D) | Relative to compensation for members of the planning and zoning commission for the town of Addis. House floor.
HB 710 | Stefanski, John(R) | Relative to the provisions of CMAR method of delivery. In the Senate.
HB 803 | Gadberry, Foy(R) | Relative to the Building Energy Code for State-Owned Bldgs. In the Senate.
SB 382 | Peacock, Barrow(R) | Prohibits requiring construction of a storm shelter during the construction or renovation of a public school.
SB 483 | Cathey, Stewart (R) | Provides relative to occupational licenses.
Article of interest
Defying House speaker, influential groups turn against centralized sales tax collections
by Mark Ballard
Baton Rouge, LA - The Advocate
April 13, 2022
The effort to ask voters, again, to vote on centralizing the collection and distribution of state and local sales taxes hit a major bump Wednesday when four of the state's most powerful associations came out against the measure.
House Speaker Clay Schexnayder, who sponsored the re-do House Bill 681, abruptly took the measure off the debate agenda.
Five months ago, Louisiana’s voters said no to centralized tax collections. HB681 would ask the voters to vote again in November.
The buzz around the legislation had been about the mulligan nature of the election. That was the case until the letter was released.
Lawmakers had been told that but for simplifying the ballot language, HB681 was essentially the same bill as last year’s that led to a statewide election in November 2021.
Not so, the lawyers of the four associations say.
“A close reading reveals key differences that our organizations oppose,” said the letter to Schexnayder that was signed by Michael Ranatza, executive director of the Louisiana Sheriff’s Association; Guy Cormier, executive director of the Police Jury Association of Louisiana; John Gallagher, executive director of the Louisiana Municipal Association; and Janet Pope, executive director, Louisiana School Boards Association.
The four associations didn’t oppose centralization last year, thus helping the measure receive legislative support. The four groups represent the sheriffs, police jurors, mayors and other top officials in all 64 parishes along with 308 incorporated villages, towns and cities as well as 70 public school districts. A nod from Ranatza or any of the other three executive directors often sways enough legislators' votes to pass or kill a bill.
Schexnayder said Wednesday he was disappointed and asked the four executive directors to reconsider their positions.
“It is disappointing and disheartening that at the last minute your organizations have now decided to reverse course and oppose this critical piece of legislation that put Louisiana small businesses on an equal playing field with their out-of-state competitors,” he responded to the four in an email Wednesday evening. “My hope is that your four organizations, which want the process to remain burdensome and unchanged for Louisiana businesses, come to the table with a tangible solution to your perceived problem.”
The right of local jurisdictions to levy and collect their own taxes is enshrined in the Louisiana Constitution, and that provision would need to be changed before the system can be centralized, as it is in most states.
It’s that constitutional clause that requires a majority of voters statewide to approve allowing a central commission to collect all sales taxes – levied by both state and local agencies – and distribute the proceeds.
In November, 52% of voters in all 64 parishes rejected the amendment that would have authorized a centralized state agency, instead of local jurisdictions, to collect and distribute sales taxes.
The legislation proposes streamlining the sales tax collection process through an eight-member commission, rather than through the more than 50 local government agencies ranging from sheriffs and mayors to school boards that currently do the work. The commission would pass the state’s portion of the sales tax proceeds to the Revenue Department and distribute what is owed to each of the local taxing authorities. Last year, the constitutional change cleared both chambers with unanimous support from Republicans and Democrats and the backing of Democratic Gov. John Bel Edwards.
The key point that lifted last year’s initial opposition from the sheriffs, police jurors, municipalities and school boards was their inclusion as members in the commission that would be established to handled centralized collections and oversee distributions of the proceeds.
HB681 removed words like “collector” and references to the section in the state Constitution that gives local taxing authorities the authority to raise and collect their own taxes, according to one of the lawyers speaking on condition of anonymity because the executives directors would offer no other comment than what was in the letter to Schexnayder. Removal of those and other words could add credibility to legal arguments that the local associations were not meant to be part of the commission.
“Words do have meaning, especially when you’re in the Constitution,” LMA's Gallagher said in an interview. He hopes the speaker will meet with the four executive directors sometime before Schexnayder brings the bill back up.
Though the Louisiana Municipal Association participated in drafting the legislation last year, the group that represents local governments didn’t take a position at election time. But some of the LMA’s more high-profile members, such as New Orleans Mayor LaToya Cantrell, actively opposed the measure.
Cormier of the police jury association said Wednesday night in a statement: "The letter sent to the Speaker outlines our association’s concerns. As always, we are willing to continue our work with Speaker Schexnayder in hopes of bringing a proposal that is good for all of Louisiana."
Because the legislation would change the state constitution, 70 representatives or two-thirds of the House would have to approve, and if they do, then two-thirds of the Senate, 26 senators, would also need to say yes.
Only then would the language in HB681 be added to the Nov. 8 ballot. A majority of those voting across the state also would have to agree to make the necessary wording changes in the Louisiana Constitution.
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‘I’m of course thinking about it.’ Could Senator Cassidy run for La. governor?
Baton Rouge, LA - www.WAFB.com
By Lester Duhé
April 13, 2022
BATON ROUGE, La. (WAFB) - Could U.S. Senator Bill Cassidy run for Louisiana governor in 2023? He says, “I’m of course thinking about it.”
The Republican Louisiana Senator weighed in Wednesday, April 13, after addressing both chambers of the Louisiana Legislature.
Gov. John Bel Edwards, a Democrat, cannot run for re-election in the fall of 2023.
Cassidy has been a member of the U.S. Senate since Jan. 3, 2015. He just won re-election in November of 2020, and his current term ends on Jan. 3, 2027.
When asked about his interest in the Louisiana governor job, here is what he said:
“Next question, seriously. I’ve been approached to run for governor, I’m honored. I’m of course thinking about it, but right now I’m really focused on what I’m doing in D.C. We’ve got some really big things we’re working on, some big things. And if I stopped focusing on those big things, I may not accomplish them. It’s important for our country and important for our state. So once we know whether we can accomplish that, then we’ll be willing to make that decision.”
Could U.S. Senator Bill Cassidy run for Louisiana governor in 2023? He says, "I'm of course thinking about it."
Other people who could run for the job include Lt. Governor Billy Nungesser, Attorney General Jeff Landry, and Treasurer John Schroder.
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