Louisiana Senate Bill SCR64

Louisiana 2020 Regular Session

• Introduced: 5/14/20
• Refer: 5/14/20

Caption

Suspends franchise fees and compensation on promotional play wagers. (OR -$29,300,000 RV See Note)

Impact

The suspension specifically targets provisions in the Louisiana Revised Statutes (R.S.) 27:91 and R.S. 27:241.1, which govern the franchise fees levied on casinos and the compensation tied to promotional wagers. This legislative change allows casinos to temporarily bypass these costs, which is projected to provide significant financial relief during a critical recovery period. The resolution will remain in effect until the 60th day following the final adjournment of the 2021 Regular Session, thereby providing a clear timeline for its implementation and renewal depending on the economic climate and ongoing effects of the pandemic.

Summary

Senate Concurrent Resolution 64 (SCR64) is a legislative action aimed at suspending certain franchise fees and compensations associated with promotional play wagers in Louisiana's casinos. The resolution was introduced in response to the economic hardships faced by these establishments due to the COVID-19 pandemic, particularly after the state implemented restrictions that limited their operations. By allowing casinos to suspend these financial obligations, the legislation seeks to alleviate the financial burden on businesses affected by the pandemic, enabling them to recover more effectively as they reopen to the public at reduced capacity.

Sentiment

Overall, the sentiment surrounding SCR64 appears to be supportive among those who advocate for the casino industry and economic recovery post-COVID-19. Stakeholders believe that the suspension of fees is a necessary and prudent step to help stabilize local economies that heavily rely on casino revenues. However, there may also be concerns about the long-term implications of reducing state revenue from these fees, especially if the suspension extends beyond the current crisis, leading to debates on fiscal responsibility and revenue generation.

Contention

Noteworthy points of contention may arise from the balancing act between immediate financial relief for casinos and the state’s fiscal health. Critics may argue that, while the suspension offers short-term benefits, it could lead to long-term revenue losses for the state budget, which is critical for funding other services. The outcome of these discussions will likely hinge on broader economic recovery trends and the evolving public health situation, prompting ongoing examination of the effectiveness and sustainability of such legislative measures.