LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 70 HLS 201ES 281
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: July 6, 2020 3:28 PM Author: JENKINS
Dept./Agy.: Revenue
Subject: One-time Hazard Pay Rebate For Critical Workers Analyst: Greg Albrecht
TAX/TAX REBATES EN SEE FISC NOTE SD EX Page 1 of 1
Extends Enterprise Zone Program incentives to essential critical infrastructure workers by authorizing the payment of a one-
time hazard pay rebate (Item #18)
Proposed law provides a one-time $250 hazard pay rebate to eligible essential critical infrastructure workers. Eligible workers
are those employed in a list of occupations (including various medical and hospital support, in/out patient care facilities,
childcare, emergency response, transportation, waste removal, grocery, fuel, convenience etc) from March 11, 2020, who
provided in-person services responding to or mitigating the Covid-19 emergency for at least 200 hours between March 22,
2020 and May 14, 2020. Eligible workers are further defined by the federal Cybersecurity & Infrastructure Agency, and
whose adjusted gross income is no more than $50,000. Applications for payment are to be made between July 15, 2020 and
October 31, 2020. Up to $50 million of payments are to be made from the Coronavirus Local Recovery Allocation Fund ($25
million), and the Louisiana Main Street Recovery Fund ($25 million). Additional rebates may be paid if monies are made
available, and additional payments are approved by the JLCB. Information can be shared between the Revenue Dept and the
Treasury, but Treasury must maintain confidentiality of the information. Effective upon governor's signature.
EXPENDITURES 2020-21 2021-22 2022-23 2023-24 2024-25 5 -YEAR TOTAL
State Gen. Fd. INCREASE $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other INCREASE $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0 $0
REVENUES 2020-21 2021-22 2022-23 2023-24 2024-25 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0 $0 $0
EXPENDITURE EXPLANATION
While the potential eligible pool of workers, employed in the enumerated occupations is thousands of persons, the bill
imposes qualifications on eligibility that make an estimate of actual eligibility exposure indeterminable (federal agency
guidelines, minimum 200 hours of in-person and outside residence Covid-19 related work, and adjusted gross income no
more than $50,000 - individual or household unclear). Thus, no estimate of payments can be made.
However, the bill authorizes up to $50 million of payments initially, with additional payments allowed if monies are made
available and approved by the JLCB. These payments are to be made from the Coronavirus Local Recovery Allocation Fund
($25 million), and the Louisiana Main Street Recovery Fund ($25 million); special funds created by Act 311 of the 2020
Regular Session to receive $511 million and $300 million, respectively, of federal monies pursuant to the federal CARES act
from which disbursements to local governments and eligible businesses are to made. The payments to individuals provided
by this bill would be additional obligations of those Funds, but would not change the total obligations of those Funds.
The Dept. of Revenue, in consultation with the La Workforce Commission and Dept. of Economic Development, will
determine applicant eligibility based on the conditions contained in the bill, and presents a list to the Board of Commerce &
Industry for its approval. Payments are then to made by the state treasurer.
The Dept. of Revenue estimates $51,000 of costs to establish an online portal to accept and process applications and verify
each applicant’s adjusted gross income eligibility for payment. The Dept. anticipates sharing a data file with the Workforce
Commission to verify employment eligibility. Potential costs of the Workforce Commission have note been assessed yet. LED
expects minor costs associated with the required C&I Board approval. The Treasury anticipates having Chase Bank perform
the check-writes with per check charges of 61¢/check plus $5/file upload of recipient information. Since the bill does not
provide for administrative costs to be paid from the dedicated funds, the fiscal note assumes these are state general fund
costs.
REVENUE EXPLANATION
The bill adds an additional dedication ($50 million or more of hazard payments to individuals) out of existing dedications of
$300 million (Coronavirus Local Recovery Allocation Fund) and $511 million (Louisiana Main Street Recovery Fund). Total
dedicated funds do not change, but the disposition of existing dedications are changed to incorporate an additional
dedication.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
13.5.2 >= $500,000 Annual Tax or Fee Christopher A. Keaton
6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Legislative Fiscal Officer


Statutes affected:
HB70 Original: 51:1787(K)
HB70 Engrossed: 51:1787(K)
HB70 Reengrossed: 51:1787(K)
HB70 Enrolled: 47:1508(B)(43), 51:1787(K)
HB70 Act 12: 47:1508(B)(43), 51:1787(K)