LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HCR 20 HLS 202ES 141
Bill Text Version: ENGROSSED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: October 12, 2020 6:39 PM Author: SCHEXNAYDER
Dept./Agy.: Workforce Commission
Subject: Unemployment Analyst: Tanesha Morgan
UNEMPLOYMENT COMP EG DECREASE SD RV See Note Page 1 of 1
Suspends the unemployment trust fund solvency tax (Item #30)
Suspends R.S. 23:1536(E)(1) which provides for the implementation of an unemployment trust fund solvency tax. Effective
through the 60th day following the 2021 Regular Legislative Session.
EXPENDITURES 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
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 DECREASE DECREASE $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
There is no anticipated direct material effect on governmental expenditures as a result of this measure.
REVENUE EXPLANATION
The proposed resolution temporarily suspends the LWC’s ability to impose a solvency tax on employers until the 60th day
following the 2021 Regular Legislative Session (effective August 9, 2021 - in state FY 22). Present law provides that the
solvency tax is applied if the balance of the UI Trust Fund falls below $100 M. This tax can be up to an additional 30% above
an employer’s normal contributions.
For illustrative purposes, if this tax would have been applied in 2019, employers would have paid at most an estimated
$61.6 M in additional UI tax contributions. See the table below:
UI tax Solvency
collections tax of 30%
1st quarter of 2019 $27,590,000 $ 8,277,000
2nd quarter of 2019 $117,600,000 $35,280,000
3rd quarter of 2019 $34,795,000 $10,438,500
4th quarter of 2019 $25,490,000 $7,647,000
Total $205,475,000 $61,642,500
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 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} Staff Director
or a Net Fee Decrease {S}