The legislative instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Martha Hess.
CONFERENCE COMMITTEE REP ORT DIGEST
SB 189 2020 Regular Session White
Keyword and summary of the bill as proposed by the Conference Committee
FUNDS/FUNDING. Provides for the creation, transfer, deposit, and use of certain funds in the state
treasury. (gov sig)
Report rejects House amendments which would have:
Report amends the bill to:
1. Creates the Coronavirus Local Recovery Allocation Program for economic relief for
local entities due to COVID-19, as established in the Coronavirus Aid, Relief, and
Economic Security (CARES) Act.
2. Creates the Coronavirus Local Recovery Allocation Fund in order to fund economic
relief to local entities, and provides for deposit and disbursement of monies from the
fund to be administered by the commissioner of administration with the assistance
of the Governor's Office of Homeland Security and Emergency Preparedness and the
Office of Community Development.
3. Creates the La. Main Street Recovery Program to provide economic support to
businesses due to COVID-19, as provided in the CARES Act.
4. Creates the La. Main Street Recovery Fund in order to fund the economic support to
businesses and provides for deposit and disbursement of monies from the fund to be
administered by the state treasurer.
5. Creates the State Coronavirus Relief Fund and provides for deposit and disbursement
of monies from the allocation fund.
6 Provides for the duties of the legislative auditor.
Digest of the bill as proposed by the Conference Committee
Proposed law provides for legislative intent regarding the Coronavirus Local Recovery Allocaion
Program and the La. Main Street Recovery Program. Proposed law creates the Coronavirus Local Recovery Allocation Fund (allocation fund) as a special
fund in the treasury to provide funding to local governments for expenditures incurred due to the
COVID-19 pandemic. Requires that the treasurer deposit into the allocation fund $511,178,704 of
the federal monies allocated to Louisiana pursuant to Section 5001 of the Coronavirus Aid, Relief,
and Economic Security (CARES) Act, P.L. 116-136.
Provides that monies in the allocation fund be invested and interest earned be deposited and credited
to the fund and unexpended and unencumbered monies remain in the allocation fund., except as
provided in proposed law or federal guidelines. Requires that monies in the allocation fund be
appropriated to the Governor's Office of Homeland Security and Emergency Preparedness
(GOHSEP) and used solely as provided in proposed law. Requires the treasurer to allocate 0.5%
monies deposited in the allocation fund to GOHSEP and 0.5% of the monies to the legislative
auditor for the purpose of performing the duties provided under proposed law.
Proposed law authorizes the commissioner of administration, in consultation with GOHSEP, to
develop procedures to govern the administration of the program and may promulgate
emergency rules.
Proposed law provides that within fifteen calendar days after receiving a submission for
reimbursement pursuant to the allocation fund, GOHSEP and the division of administration shall
review the submission and, if eligible, approve the submission, and forward the approved eligible
expenditures to GOHSEP for disbursement. Funds for verified claims shall be disbursed by
GOHSEP within five days of receipt by GOHSEP.
Proposed law provides that only expenditures incurred due to COVID-19 between March 1, 2020,
and December 30, 2020, are eligible for reimbursement from the allocation fund and any claim
submitted after December 30, 2020, is ineligible for payment.
Provides that no later than the fifteenth of each month, the director of GOHSEP and the
commissioner of administration jointly shall submit a report to the Joint Legislative Committee on
the Budget detailing by parish the amounts requested for reimbursement under proposed law, the
amounts actually reimbursed, and the average time for disbursing funds to each parish.
Proposed law creates the Louisiana Main Street Recovery Program and creates the Louisiana Main
Street Recovery Fund, the "Recovery Fund". Monies in the Recovery Fund are to be used to provide
economic support to eligible businesses for cots incurred in connection with COVID-19.
Provides that expenses reimbursed by business interruption insurance or disallowed by the CARES
Act or any guidance or regulation issued by the U.S. Department of the Treasury shall not be eligible
expenses under proposed law.
Proposed law defines an "eligible business" to mean a for-profit corporation, a limited liability
company, a partnership, or a sole proprietorship that meets all of the following criteria:
(a) Was domiciled in Louisiana as of March 1, 2020.
(b) Is in good standing with the Secretary of State, if applicable. (c) Suffered an interruption of business.
(d) Has a controlling interest owned by one or more Louisiana residents, whether individual
resident citizens or Louisiana domestic business entities.
(e) Filed Louisiana taxes for tax year 2018 or 2019, or, for an eligible business formed on or
after January 1, 2020, intends to file Louisiana taxes for tax year 2020.
(f) Has customers or employees coming to its physical premises.
(g) Had no more than 50 full-time equivalent employees as of March 1, 2020.
(h) Is not a subsidiary of a business with more than 50 full-time equivalent employees, is not
part of a larger business enterprise with more than 50 full-time equivalent employees, and is not
owned by a business with more than 50 full-time equivalent employees.
(i) Does not exist for the purpose of advancing partisan political activities and does not
directly lobby federal or state officials.
(j) Does not derive income from passive investments without active participation in business
operations.
Proposed law defines the following terms:
(1) "Grant" means an award by the state treasurer to an eligible business as provided in
proposed law.
(2) "Interruption of business" means disruption of regular business operations resulting from
required or voluntary closure related to COVID-19.
(3) "Louisiana taxes" means all taxes administered by the secretary of the Department
of Revenue pursuant to Title 47 of the La. Revised Statutes.
(4) "Minority business enterprise" means a small business organized for profit performing
a commercially useful function which is at least 50% owned by one or more minority individuals,
women, or veterans who also control and operate the business. Provides that if more than one person
owns the enterprise, then requires at least 50% of the owners be resident citizens of the state.
Provides that "control" means exercising the power to make policy decisions and "operate" means
being actively involved in the day-to-day management of the business.
(5) "Recovery Program" means the Louisiana Main Street Recovery Program.
Proposed law requires the state treasurer to deposit in and credit to the Recovery Fund $300 million
of the federal monies allocated to Louisiana pursuant to Section 5001 of the CARES Act.
Proposed law requires that monies in the Recovery Fund be invested in the same manner as monies
in the state general fund; that interest earned on the investment of monies in the fund be deposited
in and credited to the fund; that except as provided in proposed law and applicable federal
guidelines, unexpended and unencumbered monies in the fund shall remain in the fund; and that
monies in the fund be appropriated and used solely as provided by proposed law.
Proposed law establishes the Louisiana Main Street Recovery Program, to be administered by the treasurer for the purpose of making grants to eligible businesses. Requires that monies in the fund
be disbursed in compliance with the guidelines, guidance, rules, regulations and other criteria of the
U.S. Department of the Treasury regarding the use of monies from the coronavirus relief fund
established in the CARES Act.
Requires that the treasurer develop procedures to govern the administration of the program and may
promulgate emergency rules. Requires that the treasurer use monies in the fund to make grants to
eligible businesses and that he may retain an amount not to exceed 5% of the initial deposit for
administrative expenses which expenses may include costs for the treasurer and the legislative
auditor for work performed in execution of the program.
Authorizes the treasurer to enter into a consulting services contract as an emergency procurement
to expedite the distribution of the funds and that the cost of the contract is an administrative expense.
Provides that no late than June 20, 2020, the treasurer shall submit a proposal for distribution of
grants to the Joint Legislative Committee on the Budget (JLCB) for approval prior to any
disbursement. Any proposal submitted to the JLCB, shall contain recommended proposals that
would first address within the first 21 days th needs of eligible businesses that meet all of the
following criteria:
(a) The eligible business did not receive a United States Small Business Administration-
Guaranty Paycheck Protection Program loan or a United States Small Business Administration
Economic Injury Disaster Loan Emergency Advance.
(b) The eligible business did not receive and has not been awarded reimbursement under any
other federal program for the expenses that will be reimbursed by a grant under this Section.
(c) The eligible business did not receive compensation from an insurance company for the
interruption of business.
Requires that the treasurer ensure that within the first 60 days of the program no less than $40
million in grants, exclusive of administrative expenses retained by his office, be awarded to minority
business enterprises.
Provides that no later than July 1, 2020, the treasurer shall announce the date the program shall
begin.
Provides that any unobligated balance in the allocation fund on December 1, 2020 shall be
transferred to the State Coronavirus Relief Fund to be used for local governmental units, businesses,
or the state.
Provides for purposes of proposed law, the legislative auditor is authorized to review all applications
and conduct audits for compliance with the provisions of the programs established in proposed law.
The legislative auditor shall report any findings to the Legislative Audit Advisory Council and the
Joint Legislative Committee on the Budget.