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2018 Full Legislative Update

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LMA LEGISLATIVE SUMMARY FOR <strong>2018</strong> SESSIONS<br />

compiled by the <strong>Legislative</strong> Team of the Louisiana Municipal Association<br />

(225) 344-5001 ■ (800) 234-8274 ■ www.lma.org ■ kwhite@lma.org<br />

First Special Session (2/19 – 3/5)<br />

• The session had the stated purpose of addressing the fiscal cliff for the FY19 operating budget,<br />

which was estimated at $648 million after federal tax changes.<br />

• The debate centered around how to address it: budget reform vs. increasing sales tax vs. increasing<br />

income tax.<br />

• At sine die, nothing had been done about the cliff, and only two measures passed:<br />

‣ HB 10 – protects homeowners who flooded in 2016 from having to file amended returns and<br />

pay additional state income taxes<br />

‣ HB 27 – increases the monthly wireless telecommunications fee to benefit the deaf by ½ cent<br />

(.05¢), from 4.5¢ to 5¢<br />

Regular Session (Non-fiscal) (3/12 – 5/18)<br />

• There were 901 House bills, 564 Senate bills, and 751 resolutions filed (totaling 2,216), which<br />

were reviewed and sorted for tracking by LMA <strong>Legislative</strong> Team – we tracked a total of 256 bills<br />

and resolutions.<br />

• Because this was a non-fiscal session, the legislature could not raise any revenue, which stymied<br />

the budget process. In the end, HB 1, the proposed operating budget for FY19, was labelled a<br />

“fake” or “pretend” budget, and was passed by both chambers, but was immediately vetoed by<br />

Gov. Edwards.<br />

• Further, while HB 2, the capital outlay budget, passed with LGAP and CWEP funded at $5M each,<br />

HB 3, the omnibus bond funding bill, did not pass. Thus, at the conclusion of the regular session,<br />

there was great uncertainty and acrimony about the state budget, spending, and taxation.<br />

• Of the tracked bills, 112 became law, and are summarized below, along with some defeated<br />

legislation.<br />

• LMA Package / LMA Supported Bills: these bills moved successfully through the legislative<br />

process<br />

‣ HB 230 – a LMA package bill, it allows another option for municipal investment<br />

‣ HB 286 – allows local police departments to charge up to $20 for crash reports over 2 pages,<br />

subject to LSP caps<br />

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‣ HB 315 – increases the fess for constables and marshals for civil processing<br />

‣ HB 408 – confirms the authority of locals to set EMS reimbursement rates, and provides<br />

stability therein<br />

‣ HB 604 – provides health insurance for the families of LEO’s killed in the line of duty for 2<br />

years afterwards<br />

‣ HB 629 – allows the creation of a “municipal consortium,” intended to be an online version of<br />

the Main St. program<br />

‣ HB 819 – a LMA package bill, it changes the language of the Public Bid Law to allow for<br />

electronic submissions<br />

‣ SB 3 – provides MPERS survivor benefits to surviving spouses of officers killed in the line of<br />

duty by someone with intent to kill<br />

‣ SB 12 – provides survivor benefits for the children of slain police officers under MPERS<br />

‣ SB 261 – clarifies/expands the insurance benefits provided to LEO’s who sustained<br />

catastrophic injury in the line of duty<br />

‣ SB 263 – CA to permit the “borrowing” of public equipment and personnel with a written<br />

agreement<br />

‣ SB 312 – reduces the notification mandate for proposing or renewing property taxes from 30<br />

days to 20 days, thereby making the process easier in small municipalities whose official<br />

journal or regular meeting schedule may not accommodate<br />

‣ SB 426 – creates the Local Government Public Finance Act to provide uniformity and clarity<br />

in municipal bond issuance<br />

‣ SB 499 – mandates that the <strong>Legislative</strong> Auditor provide a best practices list to local auditees<br />

• Successfully Defeated Bills: with assistance from our local government partners, our<br />

membership, and sometimes strange bedfellows, many bills that would have adversely affected<br />

municipal governments were stopped. We had a very successful year, but here are just a few:<br />

‣ Capital Outlay Bills – HB 90, HB 122, and HB 132 all sought to overhaul the capital outlay<br />

process to make is more difficult for locals to access that funding, namely by repealing<br />

executive authority in favor of a 30-member approval committee, making the local match a<br />

non-waivable, mandatory match based on total project cost (not total funding sought), and<br />

abolishing all capital outlay funding to NGO’s<br />

‣ HB 500 – proposed a Constitutional Convention, including rewriting Articles VI, VII, VIII, X,<br />

XII, any section dealing with revenue or a fund, sub-fund, account, or other designation of<br />

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funds, and Article XIV. local government finance; levee districts and regional floor protection<br />

authorities; all methods of taxation; revenue sharing; the Transportation Trust Fund; the<br />

Minimum Foundation Program to fund K-12; and higher education management and funding.<br />

We joined the Police Jury Association, School Board Association, Sheriff's Association,<br />

Assessor's Association, School Superintendents, District Attorneys Association, and the<br />

Louisiana Conference of Mayors, among others, in opposing the bill.<br />

‣ SB 462 – this preemptive bill would have abolished the local authority to mandate inclusionary<br />

zoning as part of economic development and community betterment; it was passed by both<br />

chambers, but we subsequently vetoed<br />

• Cooperative Efforts: the LMA <strong>Legislative</strong> Team worked closely with legislators and stakeholders<br />

to protect municipal interests, while allowing the bills to move forward in the legislative process.<br />

‣ HB 749 – a.k.a., the “Uber/Lyft” bill, this provided uniform regulations for transportation<br />

network companies in LA. Last year, the LMA <strong>Legislative</strong> Team joined forces with other<br />

stakeholders to beat this preemptive bill. This year, the TNC’s were willing to negotiate with<br />

local governments, and we agreed on language that addressed our members’ concerns so that<br />

we were neutral on the bill. Despite our neutrality, the bill failed to pass.<br />

‣ HB 900 – this effort led by Treasurer Schroder establishes a revolving, low-interest capital<br />

outlay loan fund for locals to use, which is funded from the unclaimed property state fund.<br />

This bill was vetoed by Gov. Edwards on 5/31.<br />

• Legislation Regarding the Practice of Law: there were both substantive and administrative<br />

changes to note, here.<br />

‣ HB 5 – provides that a dismissal after settlement does not equate to a “voluntary dismissal”<br />

for the purposes of the interrupting prescription<br />

‣ HB 6 – mandates that courts sets pretrial conferences upon request when a suit has been<br />

pending for more than one year<br />

‣ HB 16 - mandates that the court take judicial notice of all laws without any action by a party<br />

‣ HB 174 – provides a multitude of revisions to the CCP, mostly clerical in nature<br />

‣ HB 550 – reduces the time delay to respond to written interrogatories from 30 days to 15 days<br />

in family law matters<br />

‣ HB 723 – if a public records custodian sues a requestor based on their request, and the requestor<br />

prevails, they will get attorneys fee and costs of litigation<br />

‣ HB 744 – during an emergency or disaster, a court may sign orders and judgments outside of<br />

its territorial jurisdiction<br />

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• Mayor’s Court:<br />

‣ HB 622 – delays the implementation of income-sensitive payment of criminal fines, fees,<br />

costs, and restitution until August of 2019<br />

‣ HB 669 – gives the presiding judge/magistrate discretion whether to suspend or place a<br />

hold on the driver’s license of a person who fails to appear for court<br />

• Ethics Legislation:<br />

‣ HB 7 – changes “sworn statement” to “certification” for elected officials disclosing transaction<br />

with governmental entities<br />

‣ HB 51 - provides a dual officeholding exception for certain CPAs<br />

‣ HB 86 – provides an ethics exception regarding park rental to immediate family members<br />

‣ HB 188 – provides exceptions for acceptance of transportation, admission, and lodging under<br />

certain circumstances<br />

‣ HB 346 – removes an exception for persons who have served as a board member or mayor’s<br />

designee on a board, to later be employed by that board<br />

• Retirement Legislation: the bills noted below are largely ministerial in nature<br />

‣ Firefighters Retirement System – HB 9, HB 40, HB 41<br />

‣ MERS – HB 26, HB 27, HB 28, HB 29, HB 30, HB 31, HB 32, HB 34 (this one applicable<br />

to all systems)<br />

‣ MPERS – HB 771, SB 7, SB 8<br />

• Opposed Bills: despite vigorous opposition, there were a few adverse bills that passed.<br />

‣ SB 94 – if public contracts are not paid within 45 days of acceptance of the work, then .5%<br />

interest will attach per day up to 15%. Though most municipalities timely pay all invoices, we<br />

opposed this measure for Constitutional and preemptive reasons.<br />

• Tax Matters:<br />

‣ HB 155 – increases the fees levied by the Tax Commission for certain property assessments<br />

‣ HB 250 – removed the July 15 th publication mandate on roll-forward tax hearings, so that<br />

notice must be simply prior to 30 days before the hearing, etc.<br />

‣ HB 598 – authorizes local taxing authorities to accept payments now in exchange for tax<br />

credits toward future taxes for those under ITEP exemption<br />

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‣ HB 684 – allows municipal governments to grant tax incentives to those who donate money to<br />

the municipality<br />

‣ HB 840 - prohibits the issuance of occupational licenses to an applicant who intends to sell<br />

used tires unless the applicant submits the necessary permits from the Dept. of Environmental<br />

Quality<br />

‣ SB 93 – mandates that notice of intent for ad valorem taxes to fund VFD’s include a statement<br />

that a portion of those funds will go to statewide retirement systems<br />

• Law Enforcement:<br />

‣ HB 112 – provides penalties for persons who expose LEO’s to serious infectious diseases<br />

‣ HB 210 - provides that officers have 30-day notice prior to a hearing to revoke P.O.S.T.<br />

certification<br />

‣ HB 221 – clarifies provision regarding DNA testing of LEO’s<br />

‣ HB 474 – adds domestic violence and deaf communication curriculum to P.O.S.T. certification<br />

training<br />

• Miscellaneous Bills:<br />

‣ HB 35 – added an imprisonment option up to 30 days for gross littering violations<br />

‣ HB 54 – provides new threshold requirements by population for recall elections<br />

‣ HB 135 – creates a non-waivable fee for liquor permits but ONLY as to commercial airlines<br />

‣ HB 388 – streamlines volunteer assistance for disaster recovery via GOHSEP and local<br />

governments<br />

‣ HB 409 – changes the dates regarding precinct change limitations<br />

‣ HB 524 – clarifies the mandatory sexual harassment training for all public employees<br />

‣ HB 573 – allows political subdivisions to perform integrated coastal projects through outcomebased<br />

contracting<br />

‣ HB 579 – adds glaucoma, severe muscle spasms, intractable pain, and post-traumatic stress<br />

disorder to the list of conditions for which a physician may prescribe marijuana<br />

‣ HB 633 – creates a pilot program for LDH to test lead levels in school drinking water<br />

‣ HB 645 – clarifies the requirements and duties for a Uniform Command Group post-disaster<br />

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‣ HB 837 – provides regarding crime prevention districts<br />

‣ SB 360 – reduces the frequency of enhanced audits when a local auditee has 3 years of no<br />

findings<br />

Constitutional Amendments for Fall<br />

(1) ACT 717 (SB 263) – Donation of Public Equipment<br />

Do you support an amendment to permit, pursuant to written agreement, the donation<br />

of the use of public equipment and personnel by a political subdivision upon request to<br />

another political subdivision for an activity or function which the requesting political<br />

subdivision is authorized to exercise? (Amends Const. Art. VII, §14(B))<br />

(2) ACT 718 (SB 164) – Phase-In of Property Tax Increases of 50% or More<br />

Do you support an amendment that will require that any reappraisal of the value of<br />

residential property by more than 50%, resulting in a corresponding increase in property<br />

taxes, be phased-in over the course of four years during which time no additional<br />

reappraisal can occur and that the decrease in the total ad valorem tax collected as a result<br />

of the phase-in of assessed valuation be absorbed by the taxing authority and not allocated<br />

to the other taxpayers? (Amends Article VII, Section 18(A) and (F))<br />

(3) ACT 719 (SB 31) – Felons Holding Public Office<br />

Do you support an amendment to prohibit a convicted felon from seeking or holding public<br />

office or appointment within five years of completion of his sentence unless he is<br />

pardoned? (Adds Article I, Section 10.1)<br />

(4) ACT 720 (SB 59) – Transportation Trust Fund<br />

Do you support an amendment to remove authority to appropriate or dedicate monies in<br />

the Transportation Trust Fund to state police for traffic control purposes? (Amends Article<br />

VII, Section 27(B)(1))<br />

(5) ACT 721 (SB 163) – Special Tax Treatment Extended to Property In Trust<br />

Do you support an amendment to extend eligibility for the following special property tax<br />

treatments to property in trust: the special assessment level for property tax valuation, the<br />

property tax exemption for property of a disabled veteran, and the property tax exemption<br />

for the surviving spouse of a person who died while performing their duties as a first<br />

responder, active duty member of the military, or law enforcement or fire protection<br />

officer? 2 (Adds Article VII, Sections 18(G)(6), 21(K)(4) and (M)(4))<br />

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(6) ACT 722 (SB 243) – Unanimous Jury Verdicts<br />

Do you support an amendment to require a unanimous jury verdict in all noncapital felony<br />

cases for offenses that are committed on or after January 1, 2019? (Amends Article I,<br />

Section 17(A))<br />

Second Special Session (5/22 – 6/4)<br />

• This was crunch time for addressing the FY19 fiscal cliff, and the debate remained substantially<br />

unchanged.<br />

‣ The House plan was to renew 1/3 of the 5th penny, eliminate some sales tax breaks and<br />

continue sales taxes on business utilities, raising $400M; the Senate plan would have renewed<br />

½ of that penny while keeping business utility taxes, extending suspension on tax exemptions,<br />

and imposing a temporary sales tax on immovable property, which would have raised $540M<br />

‣ Though both chambers passed HB 1, supplemental appropriations bills, and HB 3, the budget<br />

fell short of the funding needed to maintain a standstill budget and fund services/state agencies.<br />

Without revenue, it was estimated that public universities would be cut by $96M, TOPS by<br />

30% percent, and there would be big cuts to Corrections, DA’s and Sheriffs.<br />

• In the last moments of this session, which adjourned at midnight, a stalling technique prevented<br />

the House from voting on any revenue-raising measure.<br />

Third Special Session (6/18 – 6/24)<br />

• HB 10: this instrument became “the deal,” setting forth a renewal of .45 of the 5 th penny and<br />

maintaining suspension of exemptions through 2025 ($463M per year)<br />

• HB 1: after passage of HB 10, this new appropriations bill that fully funds TOPS, higher education,<br />

hospitals, nursing homes, food stamps, and other services/state agencies was passed<br />

• The session adjourned 3 days early after four months of contentious fighting.<br />

Read and research legislative instruments online at www.lma.org<br />

and www.legis.la.gov<br />

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