Proposes amendments to Louisiana's public contract and bidding laws specifically for Ascension Parish. The bill seeks to raise the "contract limit" (circumvent the bidding process) for public works projects and adjust bonding requirements for contractors.

Key Provisions of HB 209:

1.    Increase in "Contract Limit":

The proposed legislation raises the "contract limit" for public works projects undertaken by the governing authority of Ascension Parish to $500,000 per project. This amount includes labor, materials, equipment (valued according to the latest Associated Equipment Dealers Rental Rate Book), and administrative overhead not exceeding 15%. Starting February 1, 2026, and annually thereafter, the Office of Facility Planning and Control within the Division of Administration will adjust this "contract limit" based on the Consumer Price Index's annual percentage increase. The updated limit will be published in the Louisiana Register each January.

2.    Bonding Requirements:

For contracts exceeding $50,000 in Ascension Parish, the bill mandates that contractors provide a bond with approved surety, amounting to at least 50% of the contract price. This bond ensures payment to claimants as defined in R.S. 38:2242. The bond must be recorded with the contract in the office of the recorder of mortgages in the parish where the work is performed, no later than thirty days after commencement.

Modifies governance rules for Louisiana drainage districts:

1.    Commissioners must own or represent property in the district (min. assessed value $500); residency not required.

2.    Parish governing authorities solely appoint commissioners via majority vote.

3.    Landowner recommendations guide commissioner appointments; majority preference prevails in disputes.

4.    Commissioners serve five-year terms; one commissioner appointed annually.

5.    Parish authorities exclusively handle commissioner removals and reorganizations.

6.    Repeals previous appointment and term-related provisions (R.S. 38:1608(D)).

HOUSE committee amendments [LINK] change the phase-in schedule and percentages for claiming the tax credit for local inventory taxes. Specifically, they shorten the overall transition timeline and establish new phase-in dates: the 50% credit rate now applies for taxable periods from July 1, 2026, through June 30, 2027, and the 75% rate applies from July 1, 2027, through June 30, 2028. Additionally, the amendments change the full effective date for claiming the full credit from July 1, 2036, to July 1, 2028, significantly accelerating the implementation schedule.

ORIGINAL BILL:

Proposes extending the tax credit for C-corporations on local inventory taxes paid until June 30, 2036. The credit amount would decrease by 20% every two years starting July 1, 2028, leading to its elimination in 2036. The bill would be effective January 1, 2026, and apply to taxable periods beginning on or after that date.

HOUSE committee amendments technical except for Amendment 5 [LINK] which describes a data sharing agreement between the Board of Regents, the Louisiana Economic Development and the Louisiana Workforce Commission.

Expands eligible programs for the M.J. Foster Promise Program by including those associated with Louisiana Economic Development (LED) projects. Key changes include:

1.    Expansion of Qualified Programs:

o  Programs related to LED projects can now be designated as "qualified programs" eligible for M.J. Foster Promise Program funding.

o  Priority is given to programs related to LED projects in the qualification process.

2.    Streamlined Review Process:

o  The Board of Regents, with Louisiana Workforce Commission (LWC) and LED, must establish a process for creating associate degree programs for LED projects.

o  Expedited reviews (45-day max) for LED projects with urgent workforce needs.

3.    Advisory Council Modifications:

o  The LWC must convene the advisory council annually and as needed for LED-related workforce priorities.

o  Review of workforce priorities every three years, but LED-related projects may trigger additional reviews.

4.    LED Secretary’s Responsibilities:

o  Maintain a list of priority programs supporting LED projects.

o  Notify the council and commissioner of higher education when new LED projects are approved.

o  Provide annual reports on the effectiveness of LED programs in meeting workforce and economic goals.

5.    Repeal of Certain Eligibility Requirements:

o  Previous eligibility requirements based on family income or unemployment/underemployment are removed.

This bill expands the M.J. Foster Promise Program removing eligibility requirements.

Increases smokeless tobacco tax from 20% to 33%. Creates a Youth Cessation and Prevention Fund, distributing revenue to cancer research and health programs.

·       Tax Increase: Raises the tax on smokeless tobacco from 20% to 33% of the invoice price.

·       Youth Cessation and Prevention Fund: Establishes a special fund in the state treasury funded by 20% of the smokeless tobacco tax avails.

·       Funding Distribution: Allocates fund monies as follows:

o  40% to Louisiana Cancer Research Center.

o  40% to Louisiana Dept. of Health (Well-Ahead Louisiana Program).

o  10% to LSU Health Sciences Center in Shreveport.

o  10% to Mary Bird Perkins Cancer Center in Gonzales.

·       Prohibition: Prevents fund allocations from replacing existing state general fund appropriations.

·       Implementation Date: Effective July 1, 2025, with required inventory filing by August 1, 2025.

HOUSE floor amendments [LINK] establish the "Youth Cessation and Prevention Fund," a special fund in the state treasury, to receive 20% of tobacco tax revenues annually. The fund will support statewide programs addressing tobacco prevention and cessation targeting youth and young adults. Specifically, 40% is directed to the Louisiana Cancer Research Center, 40% to the Louisiana Department of Health for tobacco cessation initiatives, 10% to LSU Health Sciences Center in Shreveport, and 10% to Mary Bird Perkins Cancer Center in Gonzales. The amendments prohibit replacing existing general fund appropriations with monies from this fund.

HOUSE committee amendments technical

Changes the excise tax on vapor products and electronic cigarettes from 15 cents per milliliter of nicotine solution to 33% of the invoice price of these products. 

The new tax rate applies to all vapor products and electronic cigarettes purchased by retailers and wholesalers on or after July 1, 2025. It does not apply to products already stamped or unused tax stamps held by wholesalers before this date.

All wholesale and retail dealers must submit an inventory of existing stock to the Department of Revenue by August 1, 2025.

Effective date: July 1, 2025.

Enacts R.S. 17:5024(D) to revise TOPS-Tech award eligibility. It adds a third criterion—nine early college credit hours via dual enrollment or approved skills measures—to the existing requirements (2.5 GPA on core curriculum, ACT 17 or WorkKeys silver). Students qualify by meeting any two of these three, effective for first-time freshmen in 2025-2026. Enacted upon governor’s signature, it broadens access to technical education funding by valuing early college credits. • Added Criterion: Students can qualify with at least 9 credit hours of early college credit (via academic or technical dual enrollment) or equivalent skills/learning measures approved by the Statewide Articulation and Transfer Council. • Existing Criteria Retained: o Minimum 2.5 GPA on the TOPS-Tech core curriculum (per Subsection A). o Minimum ACT score of 17 or WorkKeys silver rating (per Subsection B). • Requirement: Students must meet at least two of these three criteria, as determined by the administering agency (Louisiana Office of Student Financial Assistance). Applicability: • Applies to first-time freshmen enrolling in eligible colleges or universities starting in the 2025-2026 academic year.