SLS 202ES-43 REENGROSSED
2020 Second Extraordinary Session
SENATE CONCURRENT RESOL UTION NO. 5
BY SENATOR REESE AND REPRESENTATI VE BEAULLIEU
EMPLOYMENT. Suspends certain provisions of law relative to the application of certain
wages and benefits for the next calendar year. (Items #8 and #30)
1 A CONCURRENT RESOL UTION
2 To suspend until sixty days after final adjournment of the 2021 Regular Session of the
3 Legislature the provisions of R.S. 23:1474(C), (G)(3), and (H) providing for the
4 determination of the unemployment insurance taxable wage base, maximum weekly
5 benefit amount, and formula for the calculation of benefits for the 2021 calendar
6 year.
7 WHEREAS, present law requires that each September the Revenue Estimating
8 Conference meet to adopt a projected balance of the state's unemployment trust fund for one
9 year into the future and for the secretary of the Louisiana Workforce Commission to take the
10 lower amount of that projection and the actual September first balance in the current year
11 to use in determining the taxable wage base, maximum weekly benefit amount, and formula
12 for calculating benefits for the upcoming calendar year; and
13 WHEREAS, as the balance in the state's trust fund declines, payroll taxes increase
14 on business and benefits decrease for unemployed workers and as the balance in the trust
15 rises, payroll taxes decrease on businesses and benefits increase for unemployed workers;
16 and
17 WHEREAS, the state of Louisiana is still recovering from the serious blow dealt by
18 the unprecedented pandemic known as the novel coronavirus or COVID-19; and
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SLS 202ES-43 REENGROSSED
1 WHEREAS, as a result of the COVID-19 pandemic, approximately four hundred
2 thousand jobless Louisiana workers are receiving federal or state unemployment
3 compensation benefits compared to about thirteen thousand jobless workers in this same
4 quarter in 2019, leaving a staggering economic impact on businesses and residents statewide;
5 and
6 WHEREAS, in an effort to slow the spread of the novel coronavirus, a series of
7 executive orders was issued that resulted in a statewide shutdown of nonessential businesses
8 and operations causing an increase in the number of individuals who have filed for
9 unemployment benefits; and
10 WHEREAS, the trust fund balance was approximately $1.05 billion at the start of the
11 COVID-19 pandemic, and had a balance of only forty-eight million dollars as of
12 September 25, 2020; and
13 WHEREAS, the state's UI trust fund is projected to become insolvent on October 5,
14 2020, and the commission is required to pay valid claims whether the fund is solvent or not
15 and has paid more than one billion dollars in claims since March 2020; and
16 WHEREAS, insolvency of the fund will not stop benefits to unemployed Louisiana
17 workers and the fund's diminished capacity and subsequent insolvency will, by law, trigger
18 undesirable effects, including a drop in weekly benefit payments to unemployed workers and
19 an increase in taxes to businesses in January 2021; and
20 WHEREAS, Louisiana businesses are recovering from the challenges presented by
21 this unprecedented health and economic crisis and will be struggling to restart the state's
22 economy so workers can return to earning a living in the months ahead and into 2021; and
23 WHEREAS, in an effort to stabilize unemployment taxes on businesses and
24 unemployment benefits to unemployed workers, it is necessary to temporarily suspend
25 present law procedures that trigger those consequences.
26 THEREFORE, BE IT RESOLVED that the Legislature of Louisiana hereby suspends
27 the provision of R.S. 23:1474(C), (G)(3), and (H) providing for the determination of the
28 unemployment insurance taxable wage base, maximum weekly benefit amount, and formula
29 for the calculation of benefits.
30 BE IT FURTHER RESOLVED that this suspension shall become effective upon
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SLS 202ES-43 REENGROSSED
1 adoption of this Resolution and shall extend through the sixtieth day after final adjournment
2 of the 2021 Regular Session of the Legislature of Louisiana.
The original instrument was prepared by Yoursheka George. The following
digest, which does not constitute a part of the legislative instrument, was
prepared by Curry J. Lann.
DIGEST
SCR 5 Reengrossed 2020 Second Extraordinary Session Reese
Suspends present law that provides that after the Revenue Estimating Conference’s adoption
of its official projection of the state unemployment trust fund balance for September 1st of
the next calendar year, the administrator shall make certain determinations and thereafter
apply the proper procedure, as set forth in present law, to the next calendar year beginning
January first for maximum dollar amount of wages, maximum weekly benefit amount, with
any applicable discounts, and the formula for the computation of benefits.
Suspends present law that requires the Revenue Estimating Conference, in September of
each year, to adopt its official projection of the state unemployment trust fund balance for
September 1st of the next calendar year and report to the La. Workforce Commission its
official projection not later than September 30th.
Effective through the 60th day following the 2021 R.S.
(Suspends R.S. 23:1474(C), (G)(3), and (H))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Labor and Industrial
Relations to the engrossed bill
1. Provides for the suspension of the requirement that the Revenue Estimating
Conference adopt its official projection of the trust fund balance and report
the projection to the La. Workforce Commission.
2. Removes provisions relating to certain unemployment taxes and special
assessments.
Committee Amendments Proposed by Senate Committee on Revenue and Fiscal
Affairs to the engrossed bill
1. Makes technical corrections.
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