HLS 202ES-141 ENGROSSED
2020 Second Extraordinary Session
HOUSE CONCURRENT RESOL UTION NO. 20
BY REPRESENTATIVE SCHEXNAYDER
UNEMPLOYMENT COMP: Suspends the unemployment trust fund solvency tax (Item
#30)
1 A CONCURRENT RESOL UTION
2To suspend until sixty days after final adjournment of the 2021 Regular Session of the
3 Legislature of Louisiana R.S. 23:1536(E)(1), relative to the unemployment trust fund
4 solvency tax.
5 WHEREAS, the state of Louisiana was struck by the COVID-19 health emergency
6in March 2020; and
7 WHEREAS, as a result of the COVID-19 health emergency, businesses had to
8shutter their doors and lay off employees in order to comply with the statewide emergency
9order; and
10 WHEREAS, as a result of numerous layoffs, there has been an unprecedented
11number of unemployed individuals who have filed and continue to file for unemployment
12insurance benefits; and
13 WHEREAS, as a result of the unprecedented filing of claims and payment of
14unemployment insurance benefits, the state's unemployment trust fund has depleted to
15alarming numbers; and
16 WHEREAS, as a result of this depletion, the law at R.S. 23:1536(E)(1) provides for
17a mechanism to restore the solvency of the unemployment trust fund through the assessment
18of a tax upon businesses; and
19 WHEREAS, R.S. 23:1536(E)(1) provides that if the administrator of the Louisiana
20Workforce Commission finds, in any calendar year, that the unemployment trust fund, along
21with projected contributions, is projected to be less than one hundred million dollars, the
22administrator shall then enforce a solvency tax added to the contributions already collected
23from employers; and
Page 1 of 2 HLS 202ES-141 ENGROSSED
HCR NO. 20
1 WHEREAS, R.S. 23:1536(E)(1) provides that the administrator of the Louisiana
2Workforce Commission shall enforce this solvency tax for the calendar year beginning six
3months after the unemployment trust fund balance is projected to be less than one hundred
4million dollars; and
5 WHEREAS, R.S. 23:1536(E)(1) provides that the solvency tax for any quarter shall
6not exceed a total of thirty percent of an employer's contributions for that quarter; and
7 WHEREAS, it is recognized that the state will need to restore the solvency of the
8unemployment trust fund; however, at this time implementing such a solvency tax would
9be detrimental to businesses, which have been and continuously are being economically
10impacted by the COVID-19 health emergency; and
11 WHEREAS, the purpose of this Resolution is to suspend the implementation of a
12solvency tax to be levied on employers; and
13 WHEREAS, Article III, Section 20 of the Constitution of Louisiana provides that
14"only the legislature may suspend a law".
15 THEREFORE, BE IT RESOLVED that the Legislature of Louisiana hereby suspends
16the provisions of R.S. 23:1536(E)(1).
17 BE IT FURTHER RESOLVED that this suspension shall become effective upon
18adoption of this Resolution and shall extend through the sixtieth day after final adjournment
19of the 2021 Regular Session of the Legislature of Louisiana.
20 BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the
21secretary of the Louisiana Workforce Commission.
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)]
HCR 20 Engrossed 2020 Second Extraordinary Session Schexnayder
Suspends R.S. 23:1536(E)(1) which provides for the implementation of an unemployment
trust fund solvency tax.
Effective through the 60
th
day following the 2021 R.S.
(Suspends R.S. 23:1536(E)(1))
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