Louisiana House Bill HB94

Louisiana 2020 2nd Special Session

• Introduced: 10/7/20
• Engrossed: 10/14/20
• Report Pass: 10/20/20
• Enrolled: 10/22/20
• Vetoed: 11/11/20

Caption

Provides relative to fees charged to businesses by state agencies during a state of emergency (Items #2, 32, and 35) (EN DECREASE SG RV See Note)

Impact

The bill is expected to have a tangible impact on small businesses across Louisiana, particularly those with fifty or fewer employees that have had to cease operations or significantly alter their business practices in response to the health emergency. By relieving them of certain fees, the legislation aims to give these businesses a better chance to recover financially. It includes a procedural mechanism through which businesses must apply for the fee exemption, ensuring that only those qualifying under the defined parameters benefit from this legislation.

Summary

House Bill 94 provides significant financial relief to small businesses in Louisiana impacted by the COVID-19 health crisis. Specifically, the bill enacts R.S. 29:732.1 to exempt certain businesses from paying license renewal fees during the ongoing public health emergency and for six months following its end. This exemption is aimed at aiding businesses that experienced interruptions due to the governor's emergency proclamations, particularly those classified within designated industry categories defined by their North American Industry Classification System codes. The intent is to alleviate the financial burden on small enterprises that are struggling to stay afloat amid the pandemic.

Sentiment

The sentiment surrounding HB 94 seems largely positive, especially among small business owners and advocates who view it as a necessary support measure during unprecedented economic downturns. Legislative discussions suggest a general agreement across party lines regarding the need for financial relief amid the pandemic. However, there are cautions regarding the execution of the exemption process and the need for transparency in its administration to prevent potential misuse.

Contention

While the bill enjoys support, there are notable points of contention related to how the exemption will be implemented and monitored. Concerns were raised about the potential for false reporting by applicants and ensuring that the process remains straightforward and accessible to genuine small businesses seeking relief. The legislation does impose criminal penalties for providing false information on application forms, which may help deter abuse of the system. Thus, while the core provisions of the bill hinge on providing aid, the mechanisms for applying and ensuring compliance remain areas that could generate future debate.