HLS 202ES-150 ORIGINAL
2020 Second Extraordinary Session
HOUSE BILL NO. 70
BY REPRESENTATIVE SCHEXNAYDER
UNEMPLOYMENT COMP: Repeals the unemployment trust fund solvency tax (Item #30)
1 AN ACT
2To repeal R.S. 23:1536(E)(1), relative to unemployment compensation; to repeal statutory
3 authorization of enforcing a solvency tax on employers.
4Be it enacted by the Legislature of Louisiana:
5 Section 1. R.S. 23:1536(E)(1) is hereby repealed in its entirety.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 70 Original 2020 Second Extraordinary Session Schexnayder
Abstract: Repeals the unemployment trust fund solvency tax.
Present law provides that if the administrator of the Louisiana Workforce Commission
reports, in any calendar quarter, that the fund balance projected by the administrator for the
next four calendar quarters is less than $100 million dollars, there shall be added to the
contributions required from employers a solvency tax which will be required from each
employer.
Present law requires that the solvency tax be enforced for the calendar quarter beginning 6
months after the end of the calendar quarter in which the trust fund balance is projected to
be less than $100 million dollars.
Present law provides that the administrator shall determine the ratio each employer will be
taxed and that ratio will be expressed as a fraction.
Present law provides that the solvency tax for any quarter shall not exceed a total of 30% of
the employer's contributions for that quarter.
Present law requires that prior to adding the solvency tax to the contributions, the
administrator notify the House and Senate committees on labor and industrial relations, the
House Committee on Ways and Means, and the Senate Committee on Revenue and Fiscal
Affairs of the status of the fund and of the intention to add the solvency tax.
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HB NO. 70
Present law provides that the administrator's report must also contain recommendations of
alternative actions which may be taken either administratively or legislatively to protect the
solvency of the fund.
Present law also provides that before enforcing the solvency tax, the administrator must also
conduct a public hearing for informational purposes only after giving a public notice. Present
law further provides that notice of such a hearing must be published once in the official
journal of the state at least 15 days prior to such hearing date.
Proposed law repeals present law.
(Repeals R.S. 23:1536(E)(1))
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