RDCSB189 2549 2455
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)]
SB 189 Engrossed 2020 Regular Session White
Proposed law creates the Coronavirus Local Recovery Allocation Fund as a special fund in
the state treasury and deposits into the fund $811,178,700 from the federal coronavirus relief
fund for states and local entities established in the Coronavirus Aid, Relief, and Economic
Security (CARES) Act.
Further provides that of the monies deposited into the fund, $200,000,000 is to be used to
fund a small business grants program. Requires $25,000,000 of that sum be awarded to
women and minority-owned businesses.
Provides that the remainder of the funds in the Coronavirus Local Recovery Allocation Fund
be used to reimburse local governments for COVID-19 related expenses incurred between
March 1, 2020 and September 30, 2020.
Requires the Governor's Office of Homeland Security and Emergency Preparedness
(GOHSEP) to develop an allocation of remaining fund monies by parish, based on the
following:
1. 30% of the funds are to be allocated according to the population of each
parish as a proportion of the total state population, using the latest federal
decennial census figures for the calculation.
2. The remaining 70% of the funds are to be allocated using the number of
cases of COVID-19 reported in a parish by the Louisiana Department of
Health on May 30, 2020, as a proportion of the statewide total.
GOHSEP must submit the allocation to the Joint Legislative Committee on the Budget
(JLCB) no later than May 31, 2020 and the committee must approve the allocation at its June
2020 meeting.
Proposed law further establishes prerequisites for distribution of monies to a political
subdivision.
1. The parish governing authority must designate a parish liaison to be the sole
intermediary for that parish for reimbursement from the Coronavirus Local
Recovery Allocation Fund.
2. The parish liaison must submit to the division of administration collected
documentation of actual expenditures incurred by the parish and other
political subdivisions within the parish.
3. GOHSEP reviews the submitted documentation and forwards documentation
deemed eligible for reimbursement to the legislative auditor for verification.
Proposed law provides a mechanism by which the legislative auditor may request more
documentation on any submitted expenditure prior to issuing a finding on its validity.
Proposed law provides that any claim for reimbursement submitted after September 30, 2020
is ineligible for reimbursement from this fund.
Requires GOHSEP to disburse funds for approved claims within fourteen days of receiving
the legislative auditor's verification of the expenditure.
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Requires the director of GOHSEP and the executive director of the office of community
development to jointly submit a report to JLCB no later than the 15
th
of each month detailing
the amounts requested for reimbursement pursuant to proposed law, the amounts actually
reimbursed, the percentage of allocated funds remaining by parish, and the average time for
disbursing funds to each parish.
Further requires JLCB to meet in October of 2020 to review the amount of monies remaining
in the fund. Authorizes JLCB to reallocate remaining funds at the October meeting, if
necessary.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Adds R.S. 39:100.36 and 100.37)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Appropriations to the
engrossed bill:
1. Delete provisions relative to the 2020 Capital Project Fund.
2. Create the Coronavirus Local Recovery Allocation Fund in the state treasury and
provide for the deposit and use of the funds.
3. Establishes protocols for distribution of monies from the fund to political
subdivisions.
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