The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Dawn Romero Watson.
DIGEST
SCR 9 Engrossed 2020 Second Extraordinary Session Cortez
Suspends present law that provides that if the secretary of the Louisiana Workforce Commission
reports, in any calendar quarter, that the projected state unemployment trust fund balance for the next
four calendar quarters, (together with projected state unemployment taxes to be collected plus any
other amounts otherwise pledged thereto, less the amount of projected unemployment benefits to be
paid from the fund during the next four calendar quarters), will result in a fund balance of less than
$100,000,000, there shall be added to the employer taxes a solvency tax for the calendar quarter
beginning six months after the end of the calendar quarter in which the projection was made.
Present law further provides that the solvency tax shall be determined by the secretary of the
Louisiana Workforce Commission and that it shall be a ratio, expressed as a fraction. Provides that
the numerator of the fraction shall be the amount by which the projected unemployment trust fund
balance during the next four calendar quarters is less than $100,000,000 and the denominator of the
fraction shall be the amount of the projected unemployment taxes to be collected from employers
for the calendar quarter beginning six months after the end of the calendar quarter in which the
projection was made. Provides that the ratio shall be applied as a percentage to each employer's
unemployment tax rate for the calendar quarter beginning six months after the end of the calendar
quarter in which the projection was made, provided that the aggregate of the added solvency tax for
any quarter shall not exceed a total of 30% of the employer's regular unemployment taxes for that
quarter.
Present law also requires that prior to adding the solvency tax to an employer's regular
unemployment taxes, the secretary of the Louisiana Workforce Commission is to 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 state's
unemployment trust fund and of their intention to add the solvency tax. Requires their report to also
contain recommendations of alternative actions which may be taken either administratively or
legislatively to protect the solvency of the fund. Also requires that prior to adding the solvency tax
to an employer's unemployment tax, they shall conduct within such calendar quarter in which the
projection is made a public hearing for informational purposes only after public notice thereof. The
notice of such hearing shall be published once in the official journal of the state at least 15 days prior
to the hearing date.
Proposed Resolution suspends present law and is effective through the sixtieth day following final
adjournment of the 2021 R.S.
(Suspends R.S. 23:1536(E)(1))