Appropriates $45,000 from the State General Fund (Direct) for FY 2024-2025 to pay a consent judgment in "Sharon Wilkerson v. State of Louisiana et al." (Case No. C-685,939, 19th Judicial District, East Baton Rouge Parish).

HOUSE committee and floor amendments technical

Proposes to designate the bridge on U.S. Highway 167 over the Kansas City Southern railroad tracks in Winnfield, Winn Parish, Louisiana, as the "Clayton Horne Memorial Bridge." The bill directs the Department of Transportation and Development (DOTD) to install and maintain appropriate signage for this designation. However, the installation is contingent upon receiving local or private funds to cover the actual costs incurred by the department for materials, fabrication, mounting posts, and installation, with a cap of $550 per sign.

Specialist Clayton James Horne, a 23-year-old from Atlanta, Louisiana, served as an Army Reserve military policeman and a deputy with the Winn Parish Sheriff's Office. He was assigned to the 351st Military Police Company, 160th Military Police Battalion, based in Ocala, Florida. Tragically, on August 17, 2019, Spc. Horne died in Riyadh, Saudi Arabia, from injuries sustained in a non-combat-related incident. The Winn Parish Sheriff's Office reported that he fell from a tower. His awards included the National Defense Service Medal and the Army Service Ribbon. In honor of his service and sacrifice, legislation has been proposed to name this bridge in Winnfield, Louisiana, after him.

HOUSE floor amendment [LINK] clarifies that donation acknowledgments must state whether the donor received anything in return. If goods or services were provided, the acknowledgment must include a description and estimated value, or state they were only intangible religious benefits. Also updates paragraph lettering.

Proposes amendments to Louisiana's income tax laws to enhance support for foster care adoptions and donations to foster care charitable organizations. The key provisions include:

1.    Tax Deduction for Adoption from Foster Care:

The bill seeks to amend R.S. 47:297.20(C) to allow the Secretary of the Department of Revenue to establish rules for claiming tax deductions related to adopting children from foster care. If obtaining a deduction eligibility certification letter is deemed burdensome, the Secretary may implement an alternative certification process, potentially using a standardized form.

2.    Tax Credit for Donations to Foster Care Charitable Organizations:

Amendments to R.S. 47:6042(B), (D), and (F)(4) are proposed to refine the administration of tax credits for donations to qualifying foster care charitable organizations. Notably:

·       Organizations seeking qualification must provide a statement, under penalty of perjury, confirming they meet specified criteria.

·       Qualified organizations are required to issue standardized receipts to donors, detailing the donation amount used for services to qualified individuals and other pertinent information. The Department of Revenue will provide the receipt format.

·       The definition of a "qualifying foster care charitable organization" is expanded to include any nonprofit foster care organization licensed by and in good standing with the Department of Children and Family Services, as well as organizations meeting additional specified criteria.

These proposed changes aim to simplify the process for taxpayers to claim deductions and credits related to foster care, thereby encouraging greater support for adoption and charitable contributions within Louisiana's foster care system.

Proposes amendments to R.S. 49:316.1(C) concerning electronic payment processing by Louisiana state entities. The bill mandates that the state treasurer designate acceptable forms of electronic payments, including credit and debit cards, for state entities to receive payments. It also changes the publication frequency of the approved payment methods list from at least annually to at least biannually. Additionally, the bill authorizes the treasurer to negotiate contracts, not exceeding five years, with providers of electronic payment services to ensure uniformity and cost-effectiveness across state entities. The proposed law would become effective upon the governor's signature or upon lapse of time for gubernatorial action.

Amends Louisiana's sales and use tax laws by including "accommodations intermediaries" within the definition of "marketplace facilitators." An "accommodations intermediary" is defined as a person, other than the owner, operator, or manager of a lodging facility, who facilitates the furnishing of accommodations to transient guests through a marketplace they control.

An example of an accommodations intermediary is Airbnb. Airbnb operates an online platform that facilitates short-term lodging rentals by connecting property owners with potential guests. In this role, Airbnb collects payments from guests and, after deducting service fees, remits the remaining amount to the property owners. This model classifies Airbnb as an accommodations intermediary, as it facilitates the booking and payment process between hosts and guests.

This change would make such intermediaries responsible for collecting and remitting state and local sales and use taxes on remote sales, similar to other marketplace facilitators. The act is set to become effective on July 1, 2025.

HOUSE floor amendments [LINK] reallocate state general funds and dedicated revenues, specifying distributions to various programs and organizations including directing funds to housing, youth, homelessness, and preservation projects in New Orleans, allocating $2 million to the Blue Tarp Program, clarifying funding sources from the Environmental Trust Dedicated Fund Account, replacing the "Local Housing of Adult Offenders Program" with the "Transitional Work Program," and designating $5 million for the Debt Service and State Commitments Program.

No longer simply paying off debt. See link below for additional funding. FYI, see this story from Citizens for a New Louisiana: The Million Dollar Club: How Louisiana Lawmakers Secure Capital Outlay Funds [THRU SPECIAL DISTRICTS] https://www.newlouisiana.org/the-million-dollar-club-how-louisiana-lawmakers-secure-capital-outlay-funds/

HOUSE committee amendments [LINK] allocate state funding for disaster recovery expenses related to hurricanes, storm cleanup, and security measures following a terrorist event in New Orleans, Mardi Gras, and Super Bowl LIX. Also provide funds for homelessness services in New Orleans, dementia care programs, veterans' home costs, restroom renovations at the State Archives, legal fees for the Real Estate Appraisers Board, and support for the America 250 Commission.

Provides supplemental appropriations for FY 2024-2025 to reduce the oldest unfunded accrued liabilities (UAL) in state retirement systems. 

Appropriation Total: $148,771,996 

Funding Source: State General Fund (Direct) using certified surplus from FY 2023-2024 

Allocations: 

- Louisiana School Employees' Retirement System: $5,520,766 

- Louisiana State Police Retirement System: $3,476,988 

- Louisiana State Employees' Retirement System: $60,246,955 

- Teachers' Retirement System of Louisiana: $79,527,287 

Summary: HB 460 appropriates surplus funds from FY 2023-2024 to reduce pension debt in four state retirement systems, in line with constitutional requirements for use of nonrecurring revenue.

HOUSE floor bureau amendments technical

HOUSE committee amendments [LINK] direct specific transfers of state funds to various dedicated funds:

• Transfers $15 million from Insurance Department revenues to the Louisiana Fortify Homes Program Fund.
• Transfers $8 million from the State General Fund to the Oilfield Site Restoration Fund.
• Transfers $10 million from the Mineral and Energy Operation Fund to the Oilfield Site Restoration Fund.
• Transfers $1 million from the State General Fund to the Louisiana Outdoors Forever Fund.
• Transfers $1 million from the State General Fund to the Reading Enrichment and Academic Deliverables Fund.
• Transfers approximately $25.3 million from the State General Fund to the Overcollections Fund.

Overall, it reallocates a total of about $60.3 million in state funds to support specific state programs and obligations.

ORIGINAL BILL:

Transfers surplus funds; lowers minimum threshold and raises spending cap for Revenue Stabilization Trust Fund (RSTF)

- Transfers $148.8 million (25% of FY 2023-2024 surplus) from the State General Fund to the Budget Stabilization Fund.

- For FY 2025-2026 only:

 - Lowers the RSTF minimum fund balance from $5 billion to $2.2 billion.

 - Increases the allowable percentage of RSTF that can be appropriated from 10% to 33%.

- Authorizes appropriation from the RSTF in FY 2025-2026 to address statewide emergency conditions, with two-thirds legislative approval.

- Effective upon governor’s signature or default enactment.

HOUSE committee amendments [SEE LINK] revise budget figures and provides an updated breakdown of funding allocations to parishes across the state.

Provides for the Revenue Sharing Distribution allocations of $90 million from the state Revenue Sharing Fund to local taxing bodies for reimbursement of ad valorem tax losses due to homestead exemptions.

Key Points: 

- Distribution formula: 80% based on parish population, 20% based on number of homesteads. 

- Requires state treasurer to distribute funds in thirds by Dec. 1, Mar. 15, and May 15. 

- First priority payments: sheriff commissions (11.9%) and retirement system contributions (2.44%) deducted from each parish allocation. 

- Remaining funds reimburse tax recipient bodies for homestead exemption losses, capped at 1977 levels with adjustments for homestead growth. 

- New millages after Jan. 1, 1978, excluded unless specifically authorized. 

- Any excess funds after reimbursements are distributed locally by formulas that vary by parish and may include specific allocations (e.g., school boards, municipalities, sheriffs, special districts). 

- Bond millages are generally excluded unless explicitly allowed. 

- Local authorities must file required data with the state treasurer to receive distributions. 

- Allows the state treasurer to correct formula errors with legislative budget committee approval; total distribution cannot exceed $90 million.

This bill retains all participation authorized in the 2024 revenue sharing act and continues prior practices with updated figures for FY 2025-2026.

Appropriates funds for FY 2025-2026 to support ancillary operations of state agencies through internal service funds, auxiliary accounts, and enterprise funds.

Key Provisions: 

- Appropriates approximately $3.24 billion total:

 - $997 million from interagency transfers 

 - $2.04 billion from fees and self-generated revenues 

 - $202 million from statutory dedications 

 - $1.2 million from federal funds 

- Funds are used for working capital in interagency, public, and auxiliary services. 

- Requires compliance with public bid laws. 

- Unexpended balances as of June 30, 2026, must be remitted to the state treasury by August 14, 2026. 

- Allows fund equity from prior years to carry over as a resource. 

- Agencies with over $30 million must have internal auditing positions, including a chief audit executive. 

- Authorizes adjustment of performance indicators to reflect appropriations. 

- Commissioner of administration may transfer IT and procurement functions across agencies to increase efficiency, with exceptions (e.g., Dept. of Culture, Recreation & Tourism). 

- Excess cash funds (not from working capital) are to be invested with interest credited to the respective funds. 

- Effective July 1, 2025.

Defines revenue-based financing (RBF) transactions as agreements where a business sells or forwards a percentage of its revenue or income, with repayment amounts varying based on revenue performance. The bill declares that such transactions are not considered loans or the use of money. Revenue-based financing is a funding arrangement where a business receives capital from an investor or funder in exchange for a percentage of the business’s ongoing gross revenue. Repayment amounts fluctuate based on the business’s monthly revenue—higher payments in strong months, lower in slow months—until a predetermined total repayment amount is reached.

Key Provisions: 

- Amounts charged in an RBF transaction, including fees or discounts, are not considered interest. 

- No requirement to disclose interest rates, factor rates, or APRs.

Effect: 

Clarifies that RBF is not subject to lending laws governing interest disclosures, reducing regulatory requirements for providers of this type of financing.   

Adds: R.S. 9:3137.10

HOUSE committee amendments [LINK] increase state funding by $540,000, allocating $390,000 to Court Appointed Special Advocates and $150,000 to Families in Need of Services. They adjust the bill's sections and budget totals to reflect this increase.

Appropriates funding for the Louisiana judiciary's operational expenses for FY 2025–2026.

Key Provisions:

• Total appropriation: $220,424,711, including:
• $199,188,937 from State General Fund (Direct)
• $9,392,850 from Interagency Transfers
• $11,842,924 from Statutory Dedications
• Covers salaries, retirement, operational expenses, and specialty programs for:
• Louisiana Supreme Court ($98.99M)
• Courts of Appeal ($57.46M)
• District Courts ($59.12M)
• Criminal Court of Orleans Parish ($7.5M)
• Juvenile and Family Courts ($2.93M)
• Other statutory courts and programs ($4.86M total)
• Includes funding for the Judicial College, Protective Order Registry, CASA, FINS, and Drug/Specialty Courts.
• Authorizes transfer of surplus funds within the judiciary and includes a $11.87M SGF reduction plan.
• Effective July 1, 2025.

Legislative Expenses Appropriation

Summary:

Appropriates funds for legislative operations in Fiscal Year 2025-2026, including salaries, staffing, facilities, and expenses for both legislative chambers and support agencies.

Key Provisions:

• Total state general fund appropriation: $93,371,312
• Total self-generated funds: $24,785,375 (for the Legislative Auditor)
• Allocations include:
• House of Representatives: $32,998,300
• Senate: $28,117,511
• Legislative Auditor: $15,295,000
• Legislative Fiscal Office: $3,791,600
• Louisiana State Law Institute: $1,198,901
• Legislative Budgetary Control Council: $11,970,000
• Establishes the Legislative Auditor Ancillary Enterprise Fund with $350,000 from the general fund and authorizes $24,785,375 in ancillary expenditures.
• Authorizes reimbursement for audits and self-generated revenue collection.
• Legislator per diem rate tied to the IRS federal deduction rate for Baton Rouge.
• Legislative assistants employed before December 1, 2007 may retain their salary as of that date.
• Unused funds must be returned to the general fund by October 1, 2026.
• Effective July 1, 2025.

HOUSE floor amendments [LINK] increase specific percentages related to hospital revenue allocations outlined in the resolution. Overall, the amendments slightly increase the percentages originally proposed. The amendments raise:

• From 1.3% to 1.38% for certain revenue categories.
• From 4% to 4.99% for other designated hospital revenues.
• From 5% to 6.49% and from 5% to 6.74% for inpatient and outpatient revenues of specific hospitals, respectively.
• From 2% to 2.36% for another group of hospitals' inpatient and outpatient revenues.

Establishes a hospital stabilization formula under Louisiana’s Constitution, providing a method to levy assessments on certain hospitals and implement reimbursement enhancements. This approach aims to sustain hospital funding without using state general funds, minimize costs shifted to insured residents, preserve rural hospitals, and enhance Medicaid hospital financial stability through federally compliant payment models.

Key Provisions: 

- Authorizes the Louisiana Department of Health (LDH) to levy quarterly assessments on hospitals, contingent on CMS approval. 

- Assessment rates based on hospitals' inpatient/outpatient net patient revenues (from federal fiscal year 2023):

 - Long-term acute care, psychiatric, and rehabilitation hospitals: 1.3%. 

 - Hospital Service Districts (non-rural): 4% up to $125M; 2% above $125M. 

 - Other acute care hospitals: 5% up to $125M; 2% above $125M. 

- Exempts small urban hospitals (≤40 beds), freestanding psychiatric hospitals, and rural hospitals. 

- Requires LDH to pursue federal approval for directed payment arrangements enhancing hospital reimbursements. If CMS disapproves, LDH must propose a new arrangement, requiring Joint Legislative Committee on the Budget (JLCB) approval. 

- Ensures hospital reimbursement rates are no less than rates effective on Jan. 1, 2025. 

- Requires LDH to publish quarterly data on reimbursement enhancements and CMS-approved payment arrangements online. 

- LDH must submit any necessary Medicaid state plan amendments within 120 days and may adopt rules to implement this resolution promptly.