RÉSUMÉ DIGEST
SCR 9 2020 Second Extraordinary Session Cortez
Suspends prior law that provided that if the secretary of the La. 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.
Prior law further provided that the solvency tax shall be determined by the secretary of the
commission and that it shall be a ratio, expressed as a fraction. Provided 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. Provided 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.
Prior law also required that prior to adding the solvency tax to an employer's regular
unemployment taxes, the secretary of the 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. Required 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 required 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.
Resolution suspends prior law and is effective through the 60th day following final
adjournment of the 2021 R.S.
(Suspends R.S. 23:1536(E)(1))