The 2022 Legislative Session came to a close last week after months of debate focused mainly on how to spend a significant budget surplus. For the travel industry, this session was foundational. Our legislators’ accomplishments include events funding, infrastructure improvements and broadband access – all things that will have lasting effects in our efforts to bring visitors to Louisiana.

The Legislators’ work is not yet over, though. Gov. Edwards called for another Special Session, beginning yesterday, to redraw Louisiana’s Congressional district maps with two majority Black districts. The session, which is necessary because of last week’s ruling of the U.S. Court for the Middle District of Louisiana, was temporarily sidelined by an appeals court, but moved forward on Wednesday.

While redistricting keeps our Legislators in Baton Rouge, we applaud all of their hard work during the regular session. More than ever, after the COVID-19 pandemic, legislators saw the value and importance of the travel and tourism industry in Louisiana. We look forward to the next Legislative Session as we strive to make Louisiana a better place to live, work and visit.

Notable legislation for the travel industry included:
 
State Tourism Funding
  • The main budget bill, HB 1, contains full funding for the Office of Tourism (see pg 48) and the industry’s dedicated Visitor Enterprise Funds (see pgs 149-158). Signed into law with five line-item vetoes
  • HB 406, which provides for the transfer, deposit, and use of monies among state funds has been signed into law without any line item vetoes. The Louisiana Tourism Revival Fund is found on pgs 6 & 12. Signed into law
  • SCR 42, suspends provision of law capping percentage of funds that can be spent by DCRT on in-state advertising. Lifting this limitation will encourage more in-state and regional travel. Sent to Secretary of State
 
Supplemental Appropriations
  • HB 592, which makes supplemental appropriations for the $1.6 Billion in unspent cash from the current fiscal year, was signed into law without any line item vetoes. HB 592 includes funding for various museums, nonprofits, and travel related initiatives.
  • Tourism related appropriations can be found on pgs 7-8 and pgs 25-53.
 
Major Events Incentive
  • HB 1015 was a key focus for LTA in this session, as major events result in significant economic impact and provide substantial public visibility for our state. Although the Major Events Incentive Fund has existed for several years, this bill seeks to amend the program administration and funding to make all Louisiana destinations more attractive for event planners.
  • HB 1015 seeks to shift the program from a reimbursement model to a fund that can be confidently used during the bidding process on events.
  • Bill also adds an “Events Incentive Fund” in the state treasury for smaller events
  • Bill moves administration of the program from Economic Development to the Department of Culture, Recreation & Tourism
  • HB 1015 is awaiting the Governor’s signature
  • $10 million for the Major Events Fund and $5 million for the Events Incentive Fund is included in HB 406. An additional $4 million is included on pg 49 of HB 1. 

Occupancy Tax
  • HB 49, which raises the hotel occupancy tax in the Town of Henderson, passed through the Legislature and was signed by the Governor.
  • Unfortunately, this bill includes a broad description for the dedication of these funds, but LTA hopes to work with local officials to reinvest occupancy tax dollars in local tourism marketing to increase visitation. 

Transportation Infrastructure Funding
  • SB 277, which creates the Megaprojects Leverage Fund, is awaiting the Governor’s signature.
  • The Fund dedicates budget surplus dollars to the four major transportation infrastructure projects: the I-10 Calcasieu River Bridge, I-49 South, the Baton Rouge Mississippi River bridge project and I-49 North.
  • The money will come from motor vehicle sales tax revenue being moved from Louisiana's general revenue fund to one for transportation only.

Centralized Tax Collection
  • HB 681, an effort to amend the state constitution and streamline Louisiana’s complicated process for tax collection, failed to make it out of committee.
 
Minimum Wage
  • Numerous bills were filed this session to establish a state minimum wage, all failed in committee or were deferred.

Capitol Maintenance
  • HB 756, which attempted to transfer control of several buildings in the Capitol complex to the Lieutenant Governor's Office, failed to pass.
  • The Division of Administration stated this shift would have been more expensive and less efficient for taxpayers.

Broadband
  • Louisiana will receive $176.7 million from the U.S. Department of Treasury to help provide easier access to affordable, high-speed internet. The State Broadband Grant Program was made possible by 2021’s American Rescue Plan Act. Click here to read more.
  • LTA supports broadband initiatives that advocate on behalf of the evolution and application of digital technologies that profoundly change the way people travel and do business, and in the process, transform and reshape the tourism economy.
 
While events funding, infrastructure improvements and broadband access will make Louisiana a more desirable destination, workforce recruitment and retention issues are continuing to hold our industry back. Our hotels still cannot turnover rooms at the normal rate and our restaurants are unable to staff their normal hours of operation. LTA is committed to working with our industry partners and elected officials to find solutions for building back Louisiana’s hospitality workforce.

In spite of the lingering post-pandemic challenges, the travel industry has many reasons for a positive outlook. Last week, the Biden administration lifted the pre-departure testing requirement for inbound air travelers to the U.S. This marks a major step forward in welcoming visitors from around the world. This timely news came right on the heels of IPW, US Travel’s major inbound travel trade show, in Orlando.

As the state’s largest travel industry association, LTA prides itself in bringing together the voices of our diverse membership. Our members and partner organizations continued to work in harmony this year to educate legislators on the needs of our industry. Thank you for engaging with us and advocating on behalf of your industry!

Sincerely,