Louisiana House Bill HCR5

Louisiana 2022 Regular Session

• Introduced: 2/25/22
• Refer: 2/25/22
• Refer: 3/14/22
• Report Pass: 4/7/22
• Engrossed: 4/18/22
• Refer: 4/19/22
• Report Pass: 5/12/22

Caption

Suspends certain provisions of law relative to unemployment compensation taxes and benefits (EG NO IMPACT See Note)

Impact

The bill proposes a significant change to the current law by suspending the existing framework that governs unemployment compensation calculations. This is particularly relevant as the state continues to recover from the economic downturn caused by the pandemic. The resolution allows for adjustments that can potentially ease the financial burden on both employers and those receiving unemployment benefits, which had previously been adversely affected by the pandemic-induced economic instability.

Summary

HCR5 is a concurrent resolution introduced in the Louisiana Legislature that aims to temporarily suspend certain provisions relating to unemployment compensation taxes and benefits. Specifically, it seeks to suspend the determination of the unemployment insurance taxable wage base, maximum weekly benefit amounts, and the computation formulas for the year 2023. The suspension is intended to aid businesses and unemployed workers in their recovery from the residual financial effects of the COVID-19 pandemic.

Sentiment

The sentiment around HCR5 appears to be overwhelmingly supportive, as indicated by the unanimous vote (95-0) in favor during the final consideration in the House. Legislators recognize the continued financial strain on workers and businesses due to the pandemic and see this suspension as a necessary measure to promote recovery. There is a clear consensus that legislative action is needed to provide immediate relief and adjustments to unemployment provisions.

Contention

Despite the general support for HCR5, there may be underlying concerns regarding the implications of suspending such provisions. Critics could argue that such a suspension must be monitored closely to ensure that it does not lead to long-term deficits in the Unemployment Compensation Fund or undermine necessary tax revenue streams that support unemployed workers. Nonetheless, the immediate goal of the resolution is focused on addressing urgent economic challenges as the state emerges from the pandemic.