2016 legislative hot topics

7/25/2019 2016 Legislative Hot Topics

1/17

HOT TOPICS

2016 Legislative Sessions

Prepared by House Legislative Services Staff

Louisiana House of Representatives


2/17

Extraordinary Special Session

Anticipated to be called

by the governor for mid-February


3/17

Budge

tShortfall

The focus of the Appropriations Committee during 2016 will be addressinganticipated budget shortfalls in the current fiscal year and the next fiscalyear with expenditure reductions, revenue increases, or a combination ofthe two.

According to the Edwards administration, a shortfall of $700-$750 millionis estimated for Fiscal Year 2015-2016. This shortfall will have to besolved before July 1, 2016.

Budget shortfalls for Fiscal Year 2016-2017 are even greater and

estimated to be about $1.9 billion. This shortfall is over half of the $2.9billion in discretionary state general fund expenditures in stategovernment.

The governor has indicated he will call a special session to addressbudget shortfalls for the current and next fiscal year on February 14.

Possible Legislative Issues in 2016 Special Session


4/17

A discussion related to the state budget that may come up in 2016 is the repurposingof revenue dedications to provide more flexibility in determining funding priorities in thestate budget. There are approximately $4 billion in dedications appropriated in thestate budget in the current Fiscal Year 2015-2016 through approximately 300 funds.Of the total, $2.2 billion is dedicated in the constitution and the remaining $1.8 billion isdedicated in the statutes.

Dedication of Revenue

During the 2015 Regular Session, the legislature appropriated approximately $3.7billion for the MFP that funds public K-12 education. The appropriation providedadditional funding outside the formula, including $36.2 million, which is equivalent to a1.375% increase in the base per pupil cost to sustain certificated teacher pay raisesand $8 million in expanded educational initiatives. Sustaining this funding will beparticularly challenging as legislators work to pass a budget that addresses a shortfallprojected for the upcoming fiscal year.

Minimum Foundation Program (MFP)

Louisiana faces over a $12 billion backlog of state highway system needs. Thistransportation system is largely funded by federal funds and a 20-cents-per-gallonstate tax on gasoline. The 20 cents is comprised of a 16-cents-per-gallon gasoline taxand an additional 4-cents-per-gallon gasoline tax. One concern is that the state's 16-cent gas tax is a flat, non-indexed tax that has consistently lost buying power fromwhen the tax increased to its current amount in 1984. Due to inflation and risingconstruction costs, the state's 16-cent gas tax has a current-day buying power ofapproximately 7 cents.

Transportation Backlog



5/17


With major budgetary shortfalls,various tax bills will likely bereferred to the Ways and MeansCommittee during a special

session.

Measures that provide immediate revenue to thestate include possible increases in the state salesand use tax rates, changes to state sales and usetax exemptions and exclusions, as well aschanges regarding income tax credits, deductions,and exemptions. Other immediate revenue-raisingmeasures include changes to existing severance

tax exemptions, increases in the state excise taxeson tobacco products and alcoholic beverages, andreductions to certain discounts.

Possible long-term policy changes to stabilizerevenue include making modifications andadjustments to both individual and corporateincome taxes including rates and brackets, scalingback or eliminating tax expenditures, andimplementing corporate add backs and combinedreporting.


6/17

Regular Session

To begin on Monday, March 14, 2016


7/17

Food Deserts According to the U.S. Department of Agriculture, Louisiana has numerous food deserts within

the state, some within urban areas, but the vast majority of the food deserts are in the ruralareas of the state. Legislative action in 2015 created a task force to study the issue withpossible legislation as a result.

Marijuana

The recreational usage of marijuana is prohibited in Louisiana. Proponents emphasize thatallowing recreational marijuana to be sold in the state would bring in valuable tax revenue.This issue has been raised repeatedly during past sessions and may be raised again.

Medical marijuana was recently authorized by the legislature and the State Board of MedicalExaminers was charged with recommending health conditions (in addition to glaucoma,spastic quadriplegia, and chemotherapy) for which medical marijuana use would beappropriate.

Wildfire Funding Louisiana has been afflicted by numerous wildfires over the years and has done a good job

containing them with the limited funds, equipment, and manpower available. In the 2016Regular Session, the Department of Agriculture may ask the legislature to request morefunding from Congress to address their shortfall in combating wildfires within Louisiana.

Possible Legislative Issues in 2016


8/17

Civil Procedure

Limitations on the availability of jury trials is of interest each legislativesession. Numerous bills were introduced over the past several sessionsattempting to raise or lower the required dollar amount in controversy inorder to be entitled to a jury trial.

Religious Freedom Legislation intended to protect religious freedom has been introduced inseveral states during recent legislative sessions and generatedsignificant public interest in Louisiana. Religious freedom remains asubject matter of interest for the 2016 legislative session.

Child Support Bills modifying child support laws are regularly introduced in legislative

sessions. Recently, these have included extending the age of childrenentitled to child support when specific conditions are satisfied, as well asmechanisms to enforce child support for failure to pay.



9/17

As crowdfunding becomes an increasingly popular mechanism forraising vast amounts of capital, state legislatures have becomeaware of their needs not only to encourage small business ownersand entrepreneurs to avail themselves of this growing resource butalso to regulate how crowdfunding is monitored within their state'sborders. 27 states introduced legislation regarding crowdfunding in2015.

Crowdfunding

Many states have recently proposed legislation aimed at legalizingonline gambling. Alternatively, some states have proposedlegislation meant either to prohibit online gambling or to commissionstudies for the purpose of analyzing the impact that the industrycould have on states and their residents.

Internet Gambling

The Louisiana State Uniform Construction Code Council haspromulgated a rule adoption of plumbing provisions in theInternational Plumbing Code, International Building Code, and theInternational Residential Code. The rule adoption is a result of Act836 of the 2014 Regular Session. The newly promulgated rulereplaces the Louisiana State Plumbing Code which was repealed inits entirety as of January 1, 2016.

Plumbing



10/17

Gun Laws - With continued mass shootings across the country and recent executiveorders addressing the purchasing of firearms, it is likely that there will be legislativeactivity regarding firearms. Two bills have already been prefiled for the 2016 RegularSession addressing concealed handgun provisions of Louisiana law.

Drones With the popularity of unmanned aircraft systems soaring, the FAA hasdeveloped rules including minimum age and registration requirements. As anaircraft, drones are likely not covered under ones homeowners insurancepolicyholders unless a policy rider is added to provide such coverage. Likewise, it islikely that drone legislation will be a hot topic in 2016 for both the Criminal Justice andthe Insurance Committees of the legislature.

Juvenile Court Jurisdiction - While most states set the maximum age of juvenilecourt jurisdiction at 17, Louisiana is one of seven states with the maximum age of

juvenile court jurisdiction at 16. Proponents of the "raise-the-age" legislation arguethat young people should be tried in juvenile court to ensure that they are not

sentenced to adult prisons and have access to more age-appropriate services andplacement options.

Corrections and Sentencing Reform - Louisiana is part of a national trend withthe likely creation of a task force this session to launch an intensive, data-drivenreview of state sentencing and corrections issues with the goal of presenting thelegislature with a comprehensive reform package for the 2017 legislative session.



11/17

Gov. Edwards elementary and secondaryeducation transition team explored severaleducation issues. According to news reportsdetailing the team's work, these issues includeaccountability, assessments, state funding forpre-K programs, school choice, local control, theMFP, and state content standards. Discussionsregarding these matters will continue as the newterm begins, and legislation pertaining to them islikely to be introduced this year.

Elementary and Secondary Education

Likewise, Gov. Edwards postsecondaryeducation transition team was charged with

making "college more affordable for students andstronger". In light of the current budget shortfall,it is likely that their recommendations will berelated to funding, tuition, and TOPS, includinglegislation to address lingering concerns aboutmaintaining the TOPS program despite ongoingfiscal challenges and rising college tuition costs.

Postsecondary Education



12/17

Medicaid Expansion Prior to the start of 2016, 30 states, excluding

Louisiana, accepted federal funding to expandMedicaid to cover individuals and families withincomes up to 138% of the federal poverty level($33,465 in annual household income for afamily of four per 2015 poverty guidelines).Through executive action, the governor isimplementing Medicaid expansion. Legislation

is expected on this issue.

Access to Mental Health Services In recent years, the availability of mental health

services has declined due to cuts in governmentspending on these services, with the cuts beingboth a cause and effect of an ongoing shiftaway from provision of mental health treatmentin institutional settings. As a result, a growingnumber of persons in need of mental healthtreatment are being held in jails - a situation

which advocates have deemed to be a crisis.

Full Transition to Managed Care Five years ago, Louisiana's Medicaid program

began a major shift away from a fee-for-service

payment model toward an insurance-basedmanaged care model in which DHH contractswith private insurance companies whichcoordinate care for certain Medicaid enrolleesand pay provider claims. However, this modeldoes not include nursing home or other long-term supports and services which inclusion willlikely be an issue in 2016.

Telemedicine and Telehealth services Legislation in 2014 modernized state laws

relative to the practice of telemedicine and

telehealth services. Beyond monitoringchanges in health care delivery as a result ofthis modernization, other issues may includetechnical standards for delivery systems,addressing barriers to telehealth expansion, andinsurance coverage.



13/17

Automobile Insurance Rates

Louisiana is among the top five states with the highest automobile insurance rates.This is generally attributable to a number of suggested factors, including the largenumber of uninsured motorists on Louisiana roads, the condition of the roads, andfactors related to personal injury lawsuits brought as a result of accidents. Likewise,legislation in this area is possible.

Driverless Vehicles

Several companies are field testing driverless vehicles in California, and thesevehicles may be in use in Louisiana within the next several years. The legislaturecould be faced with addressing a number of issues as a result of these vehicles suchas who is responsible for payment of damages if the driverless vehicle is involved inan accident and whether automobile insurers will provide coverage for suchvehicles.

Health Insurance Agent Commission Health insurers believe they are losing money on individual policies issued pursuant

to the Affordable Care Act and are therefore attempting to cut costs whereverpossible including lowering agent commissions. The Center for Medicare andMedicaid is also attempting to lower or end agent commissions. While the stateshave no regulatory authority over the Exchanges, the states may take action toensure the rights of individual agents to their commissions on policies sold outside ofthe Exchange.



14/17

In 2015, many state legislatures considered legislation that would require specificprocedures for investigating police-involved deaths, addressing the appointment ofspecial prosecutors, and improving public dissemination of information explainingprosecutorial decisions. Such legislation may be filed in Louisiana in 2016.

Also in 2015, a majority of states considered legislation to address body-worn camerasfor law enforcement. Louisiana created a task force and charged it with makingrecommendations, in advance of the 2016 session, regarding the use of body camerasby police.

Law Enforcement Authority

During the 2015 Regular Session, the legislature created an Immigration Task Forcecharged with studying and reporting to the legislature the fiscal and economic impactof illegal immigration in the state. The task force report is due prior to the 2016Regular Session.

The U.S. accepts up to 70,000 refugees per year from five different regions of theworld. Refugees are vetted overseas and background checks are conducted throughseveral federal agencies. 49 states participate in the refugee resettlement program toassist those fleeing persecution to become self-sufficient and integrated into theiradopted communities. While Louisiana is one such state, it does not provide servicesdirectly; rather it is one of 12 states wherein the program is handled by nonprofitorganizations which receive federal funding for this purpose. The legislature continuesto monitor this issue.

Immigration



15/17

Minimum Wage

Alongside a federal movementfor an increase of minimumwage, more than half of thestates have raised minimumwage within the past two years.The governor has expressed

his intention to pursue minimumwage legislation if Congressdoes not raise the federalminimum wage.

Pay Equality

Equal Pay for Women has beenan on-going topic in Louisianafor several years. In 2013, theEqual Pay for Women Act waspassed in this state requiringpay equality for womenemployed by the state. Anexpansion of that Act was filedin the last two years and is likelyto be filed again in the 2016Session.

Payroll Deductions

In recent sessions, legislationhas been introduced to removeunion dues as an authorizedpayroll deduction for publicemployees. Opponents andproponents have strong

arguments on the robust issueand because there is interest inthe outcome, authorized payrolldeductions for union dues maybe discussed again in theupcoming session.



16/17

Waste Tire Recommendations

Act 427 of the 2015 Regular Session required the Waste Tire Program Task Force tomake recommendations on improving the program, including fee structure changes,to the oversight committees. Although the program has been successful ineliminating illegal piles of waste tires, the Department of Environmental Quality(DEQ) has struggled for a decade to timely pay waste tire processors.

Orphan Well Program

SCR 89 of the 2015 Regular Session created a task force to study the regulation ofoil and gas wells and the management of orphan wells. Much of the discussionsduring the task force meetings have centered around the orphan well program, theeffect of low oil prices on small operators, and their ability to comply with theprogram's financial security requirements. The task force is required to submit theirreport no later than February 1, 2016.

Clean Power Plan

New EPA rules require states to reduce carbon dioxide emissions from powerplants. The rules allow states to choose how to reduce emissions and grant theoption to comply individually or in coordination with other states. In 2014, thelegislature charged DEQ with developing performance standards based onmeasures that can be implemented at each fossil fuel-fired electric generating unit inthe state. DEQ's compliance plans are due to the EPA in September; that is, if thefederal law survives legal challenges filed by more than half the states claiming thatthe EPA overreached its authority and that the plan would harm many states thatdepend on coal to power their economies.



17/17

Funding for Transportation

Infrastructure Proponents for enhanced funding report that the

need for new capacity projects and continuedmaintenance to existing infrastructure continues togrow as the buying power of the gas tax isdiminished. Legislators continue to search forsources of alternative funding for theseinfrastructure projects.

REAL ID Louisiana driver's licenses do not meet all the

requirements of the REAL ID Act of 2005 whichestablished minimum standards for state-issued

driver's licenses and prohibits federal agenciesfrom accepting for official use. In 2015, there wasconcern that Louisiana-issued credentials wouldnot be accepted for air travel. The U.S.Department of Homeland Security issued anextension for Louisiana citizens until October 2016.Legislation on the issue is expected this session.


2016 legislative hot topics

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