LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: SB 24 SLS 202ES 46
Bill Text Version: REENGROSSED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: October 14, 2020 9:58 AM Author: TALBOT
Dept./Agy.: Revenue/Alcohol & Tobacco Control and Health/Public Health
Subject: Waived and Refunded Fees Due to COVID-19 Analyst: Patrice Thomas
FEES/LICENSES/PERMITS RE DECREASE SG RV See Note Page 1 of 1
Provides an exemption to certain fees collected by the Louisiana Department of Health and the Office of Alcohol and Tobacco
Control. (gov sig) (Item #32)
Under current law, the Office of Public Health (OPH) within the Department of Health (LDH) is authorized to charge an
annual permit fee to several types of food establishments and specialty operations. Proposed law provides that any
applicant with a permit that was timely paid and effective on March 17, 2020, shall be eligible for either of the following
regarding the COVID-19 public health emergency: (1) if applicant temporarily closed operations, a reduction in the amount
payment of next regularly scheduled permit renewal fee based on the number of days closed during calendar year 2020; or
(2) if applicant permanently closed operations, a refunded permit fee on a pro-rata basis for the number of days closed
during calendar year 2020.
EXPENDITURES 2020-21 2021-22 2022-23 2023-24 2024-25 5 -YEAR TOTAL
State Gen. Fd. SEE BELOW $0 $0 $0 $0 $0
Agy. Self-Gen. INCREASE SEE BELOW $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
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. DECREASE DECREASE $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
EXPENDITURE EXPLANATION
Proposed law creates an increased expenditure exposure as a result of refunding permit fees in FY 21 and eliminates self-generated
revenues as a result of waiving permit fees in FY 21 and FY 22. OPH utilizes self-generated revenues to support its regulation of food
establishments. OPH reports a loss of self-generated revenue will result in a reduction of its staff, which is compromised of 155 positions
in the Sanitation Services program. If OPH is to maintain its current functions and services, an alternative source of revenue would have
to be utilized. State General Fund revenue would be the most likely alternative revenue sought for replacement.
REVENUE EXPLANATION
Proposed law will decrease SGR revenue collections in OPH by an indeterminable amount over FY 21 and FY 22. The impact within each
fiscal year is not known as it will depend on when renewal fees are due for each individual applicant. Proposed law requires OPH to reduce
permit renewal fees based on the number of days the applicant’s business establishment temporarily closed operations as a result of the
COVID-19 public health emergency, or refund permit fees on a pro-rata basis if applicant’s business establishment permanently closed as
a result of the COVID-19 public health emergency.
For illustrative purposes, currently, OPH reports 15,000 active restaurant permits and 5,190 active bar permits. OPH reports that 1,079
facilities have closed since March 17, 2020 (see table below) and turned in their operating permit. The average cost of retail food permits
issued to restaurants and bars is $130. If the closed facilities requested a pro-rata refund for 9 months in the 2020 calendar year, OPH
may have to refund $105,203 ($130/12 months x 9 months x 1,070 closed establishments). The number of remaining establishments
that may apply for a waiver of fees is unknown, as is the number of days they remained unable to operate during the 2020 calendar year.
The potential revenue reduction is indeterminable but potentially significant.
Projected Reduction Annual SGR Revenues
# of Establishments Permit Fee Total
Restaurant Establishments 15,000 $130 ($1,950,000)
Bar Establishments 5,190 $130 ($674,700)
Closed Restaurants/Bars 1,079 $130 ($140,270)
TOTAL 21,269 $130 ($2,764,970)
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}
Alan M. Boxberger
x 13.5.2 >= $500,000 Annual Tax or Fee x 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} Staff Director
or a Net Fee Decrease {S}


Statutes affected:
SB24 Original: