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Construction associations focused mostly on defensive instead of offensive tactics during the recent "fiscal-only" legislative session.
The Louisiana Legislature'srecent fiscal session was a unique hybrid that featured both fiscal bills and a smaller number of non-fiscal bills. Hundreds of bills were introduced in a short 45-day session.
"This year's Legislative Session was the first of its kind," said Greg Bowser, director of government affairs with the Louisiana Chemical Industry Alliance, in a recent report. "During this first hybrid 'fiscal only' session, each legislator was able to file five non-fiscal bills and an unlimited amount of local bills.
"The effect was that there were a large number of bills to consider in a shorter legislative session, as opposed to a regular session (60 legislative days)."
"Of interest . . . was the $360 million in additional state revenue recognized by the Revenue Estimating Conference in mid-May," Bowser added. "The recognition of that additional money seemed only to hamper the efforts of Governor Blanco to pass her tax package. Governor Blanco could not get the two-thirds vote needed in the House of Representatives to pass her $1 per pack cigarette tax to fund additional teacher pay increases."
"It will go down as one of the least remarkable sessions in recent history," said Maria W. Bowen, director of governmental relations with the Louisiana Chapter, Associated Builders and Contractors, in a legislative report. "Although the governor passed the largest ever state budget at $18.7 billion, she failed to get the $3,300 teacher pay increase, an overhaul of the ethics rules, an expansion in Medicaid benefits for the uninsured or the money to pay the New Orleans Saints.
"However, she did get a hospital provider tax to help fund health care and a record new state budget."
Bowen added that "no one industry or group feels that they got a lot out of this session - in which the norm became killing bills instead of passing them."
In his annual legislative report, Derrell Cohoon, chief executive officer of Louisiana Associated General Contractors, said certain "growing pains" were experienced during this year's session.
". . . each legislator is allowed five bills unrelated to 'fiscal/taxation' issues, which theoretically allows an additional 720 bills more than would normally be introduced in a fiscal session," Cohoon said.
"When some legislators ran out of their allotted five bills, lobbyists would scurry to legislators who had not already utilized their allocation."
"It still wasn't necessarily a bad session for AGC," he added. "Knowing that we had a limited number of days to address a lot of issues, both fiscal and general, we took a conservative approach to bill introductions - not much different from our position during the former fiscal-only sessions. (That is to) protect our flank with a strong defense and look out for funding possibilities in capital outlay and transportation."
Following are some of the key bills and how they fared:
HB 128- was amended in the Senate Revenue and Fiscal Affairs Committee to include co-generation facilities in the phase-out of state's manufacturing machinery and equipment sales and use tax. HB 128 now awaits the Governor's signature.
Amendment toHB 187- would have clarified that component parts of vehicles are not subject to property taxes. In the construction industry, this means dumpsters of dump trucks could be taxed, as well as the buckets of bucket trucks and the towing hitch on pickup trucks. The amendment was rejected by the House.
HB 583- would have tied the Homestead Exemption to the Consumer Price Index. If passed, business owners could have faced uncertainty in their taxes every year. The bill tied on the House floor.
HB 679- enacts the Louisiana Headquarters and Growth Act relative to corporate income tax. HB 679 was amended in the Senate Revenue and Fiscal Affairs Committee and now awaits the Governor's signature.
HB 684- will extend the R & D tax credits from 8% to 20%, authorize the transfer of the credit by sale, receive credits under the Small Business Innovation Research Grant, as well as make credits retroactive for income tax years beginning 1/1/03. The House has concurred in the Senate amendments and this bill now awaits the Governor's signature.
HB 688- sought to levy a new 2 percent tax on all wireless communications. The bill would have levied the tax through the Louisiana Communications Excise Tax without a vote of the people. This would have focused on wireless communications and would have totaled more than $50 million for local governments. The bill was defeated on the House floor.
HB 710- to change plumber apprentice rules. While the bill did ease apprentice-to-journeyman ratios, it would not have solved other problems. The bill died on the House calendar.
HB 795- expands the tax equalization program to make the program available in connection with warehousing and distribution facilities and makes the program available in connection with retention of facilities. The House refused to concur in the Senate amendments and it now sits on the Senate calendar awaiting conference committee appointees.
HB 803- provided for a state sales and use tax limitation on the sales price and cost price of natural gas at $4.50 per mmbtu. It was amended at the request of the Legislative Fiscal Office to $6.20 per mmbtu so as to have no fiscal impact.
HB 804- would phase in an exemption for sales tax on natural gas for the period July 1, 2006 through June 30, 2008.
HB 811- provides for a state sales and use tax limitation on the sales price and cost price of natural gas and to phase in the restoration of the sales tax exemption for natural gas. The House Committee on Ways and Means deferred the bill.
HCR 168- commends the Republic of China (Taiwan) for its close economic and business ties with the state of Louisiana and to urge and request the President to direct the United States Trade Representative to negotiate a free trade agreement between the United States and Taiwan. The bill passed.
SB 98- would have mandated collective bargaining for all public employees. Presently, all public employees are granted the right to voluntarily bargain with their employees, but they are not mandated to do so. This bill would have required it.
SB 188- provides relative to criminal penalties for violations of the Louisiana Pollutant Discharge Elimination System. It now awaits the Governor's signature.
SB 196- will provide in law a definition of "component parts" of buildings or other constructions. This bill clarifies a court decision that could have cost companies significant amounts of money and now awaits the Governor's signature.
SB 219- repeals the authority of the PSC to establish rules for the Energy Efficiency Fund. Without this repeal, the PSC would have promulgated rules to add $32 million per year to utility bills of Louisiana customers. SB 219 now awaits the Governor's signature.
SB 220- The Undocumented Alien Bill was defeated by the Senate. The bill would have placed requirements on contractors and related parties concerning the employment of aliens not entitled to lawfully reside or work in the U.S. and provide for license suspension or revocation for violation.
SB 338- provides for a state sales and use tax limitation on the sales price and cost of price of natural gas at $4.50 per mmbtu. Duplicate of HB 304 and was also amended at the request of the Legislative Fiscal Office to $6.20 per mmbtu so as to have no fiscal impact. The House Committee on Ways and Means deferred the bill.
SB 339- provides for the phase-in restoration of the sales tax exemption for natural gas and electricity.
SB 340- provides for the phase-in restoration of the sales tax exemption for natural gas and electricity.
SCR 83- establishes a commission to study and determine the status of all tax exemptions relative to education. SCR 83 was amended in House Governmental Affairs Committee and died on the House calendar after it was debated.
SCR 117- memorializes Congress to authorize more input and authority to states regarding proposed LNG terminals. It passed.
SCR 120- memorializes Congress to establish a domestic energy policy that will ensure an adequate supply of energy and the necessary infrastructure. It passed.
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