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.
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))