2020 Second Extraordinary Session ENROLLED
SENATE CONCURRENT RESOL UTION NO. 9
BY SENATORS CORTEZ AND REESE
A CONCURRENT RESOL UTION
To suspend until sixty days after final adjournment of the 2021 Regular Session of the
Legislature of Louisiana the provisions of R.S. 23:1536(E)(1), relative to the
unemployment insurance solvency tax on employers.
WHEREAS, Article III, Section 20 of the Constitution of Louisiana empowers the
legislature to suspend a law; and
WHEREAS, the current public health emergency caused by COVID-19 has required
an extended shutdown of many businesses resulting in a dramatic decline in their revenue
and the layoff of their employees; and
WHEREAS, the widespread layoffs have led to massive unemployment of workers
and increased demands for unemployment benefits; and
WHEREAS, state unemployment benefits for Louisiana workers are funded by state
unemployment taxes paid by employers which are collected by the Louisiana Workforce
Commission and submitted to the United States Department of Labor to be pooled into the
state's unemployment compensation trust fund account; and
WHEREAS, the dramatic increase in the volume of unemployment benefit claims
has resulted in a drastic reduction in the balance of the state's unemployment compensation
trust fund account; and
WHEREAS, R.S. 23:1536(E)(1) requires the secretary of the Louisiana Workforce
Commission to report when the state's projected unemployment compensation trust fund
balance for the next four calendar quarters, together with projected state unemployment
taxes to be collected less the projected amount of unemployment benefits to be paid during
the next four calendar quarters, will result in a trust fund balance of less than one hundred
million dollars and provides that a solvency tax shall be added to an employer's state
unemployment taxes for the calendar quarter beginning six months after the end of the
calendar quarter in which the projection is made; and
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WHEREAS, the exact amount of the solvency tax is dependent on the amount the
unemployment compensation trust fund balance is projected to be below one hundred
million dollars and the amount of state unemployment taxes projected to be collected from
employers; and
WHEREAS, it is anticipated that in October of 2020, the secretary of the Louisiana
Workforce Commission will be required to report that the projected fund balance for the next
four calendar quarters, together with projected state unemployment taxes to be collected less
the projected amount of unemployment benefits to be paid from the state's unemployment
compensation trust fund during the next four calendar quarters, will result in a fund balance
of less than one hundred million dollars, triggering the solvency tax; and
WHEREAS, the impact of the imposition of the solvency tax at this time on many
employers already suffering from dramatically reduced revenues could negatively affect
their ability to hire back or to retain employees and stay in business.
THEREFORE, BE IT RESOLVED that the Legislature of Louisiana hereby suspends
the provisions of R.S. 23:1536(E)(1) relative to the unemployment insurance solvency tax
on employers.
BE IT FURTHER RESOLVED that this suspension shall become effective upon
adoption of this Resolution and shall extend through the sixtieth day after final adjournment
of the 2021 Regular Session of the Legislature of Louisiana.
BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the
secretary of the Louisiana Workforce Commission.
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
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