Another joyous occasion unfolded as Louisiana’s first special session of 2020 adjourned sine die late last Tuesday afternoon without many last minute fireworks. While many items were eligible for introduction during the special session the top-level issues remained passing the state’s operating budget (which did not happen during the regular session) and some version of tort reform (some of which passed in the regular but was subsequently vetoed by the governor). 

The state’s fiscal year began July 1 with a budget in tact plus a key tort reform measure that finally passed both chambers in the waning hours of the special session. That said, issues surrounding the budget and tort reform will quite likely continue shaping the tone of the next few legislative sessions. It will be interesting to see whether lawmakers light the fuse and get away or instead pick up pieces of legislation that went down in the past two sessions. 

Historic Rehab Tax Credit Extension Headed to Gov – A WIN for AIALA! Thanks to the AIALA Advocacy Committee and all members that reached out for this one. While it may not be exactly what we were hoping for, it’s a good step and we’ll keep working…

HB 4 by Rep. Tanner Magee, R-Houma, extends the date for which eligible expenses can qualify for the tax credit on rehabilitation of historic structures from costs and expenses incurred prior to January 1, 2022, to costs and expenses incurred prior to January 1, 2026. The bill also extends the effectiveness of the program from taxable years ending prior to January 1, 2022, to taxable years ending prior to July 1, 2026. A few other amendments were adopted (see the final version headed to the Governor HERE). This measure was one of the only tax credit bills to survive the entire special session; many others were defeated over concerns of impacts to the state’s fiscal coffers. 

HB 758 by House Appropriations Chairman Rep. Zee Zeringue, R-Houma, provides a definition of liquidated damages and provides that any entity letting certain public works construction contracts, as per the contract, may withhold liquidated damages from any payments or monies otherwise due to the contractor, taking into consideration all granted time extensions, after the expiration of the forty-five day period. The bill was further amended to apply to a public entity letting a public works contract for a flood protection project or for an integrated coastal protection project. This bill passed favorably removing architects and engineers during the regular session with the help of AIALA members involvement.

Several highlighted instruments were aimed at tort reform, but in a matter of days nearly all went tumbling like a barrel thrown from the top of a waterfall. As most tort reform measures began heading the way of the wooly mammoth, HB 57 by Speaker of the House Clay Schexnayder, R-Gonzales, climbed to safety. His bill is the result of a few years of work to address the state’s high cost of auto insurance for personal and commercial lines. While parties on both sides of the issue contend the bill isn’t perfect, most can agree that it’s an important first step at putting meaningful reform on the books. 

At the commercial level the cost of insurance has escalated in recent years to catastrophic levels—heavily fueled by an incredibly litigious atmosphere. HB 57 takes a shot at alleviating a few variables considered to be major contributors to high insurance premiums in Louisiana. The bill lowers the state’s jury trial threshold from $50,000 to $10,000, reforms direct action, repeals the seat belt “gag rule” thereby allowing as evidence whether a plaintiff was wearing a seatbelt at the time of the accident, and addresses collateral source by allowing judges the discretion to award no more than 40 percent of the difference between the amount billed for healthcare services and the amount paid after the verdict. Gov. John Bel Edwards, D-Amite, indicated shortly after the special session adjourned that he intends to sign HB 57 into law. 

Early voting is underway for several local and municipal primary elections across the state; Election Day is July 11th and any necessary runoffs will be settled August 15th. These races were all pushed back several weeks as a result of voting concerns and stay at home orders related to COVID-19. 

In addition to local races, the special election to replace Rep. Reggie Bagala, R-Cut Off, (who, sadly, passed away earlier this Spring) is underway. There are six candidates in the race and all are Republicans. Joe Orgeron is considered the front-runner at this time; he has received quite a bit of support from the business community and likewise was endorsed by members of the Bagala family. 

U.S. Sen. Bill Cassidy, R-Baton Rouge along with the state’s U.S. House delegation is on the ballot this fall. Primaries for those races take place November 3rd and any necessary runoffs take place on December 5th. The only wide-open federal post is in the Fifth District, which encompasses northeast Louisiana and hugs the entire border with Mississippi all the way to Bogalusa. Cong. Ralph Abraham announced his retirement from the seat. The top two candidates are Luke Letlow, R-Start, and state Rep. Lance Harris, R-Pineville. Letlow served as Cong. Abraham’s chief of staff for the previous six years and has experience in the oil and gas industry. Rep. Harris is term-limited in the state House of Representatives and owns convenience stores in central Louisiana. A couple other individuals have indicated their intent to run, and we will know how many other candidates throw their hats in the ring by the end of July after qualifying completes (22nd-24th). 

Also, on the ballot this fall is a Supreme Court race to replace retiring justice Marcus Clark, R-Monroe. The top two candidates for the bench appear to be Jay McCallum, R-Farmerville, and Shannon Gremillion, R-Alexandria. McCallum served in the state House of Representatives years ago and currently serves as a judge on the Second Circuit Court of Appeals; Gremillion is a judge on the Third Circuit Court of Appeals.