LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 94 HLS 202ES 178
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.: HB 27
Date: October 23, 2020 2:45 PM Author: ZERINGUE
Dept./Agy.: State Agencies
Subject: Suspension of fees Analyst: Rebecca Robinson
FEES/LICENSES/PERMITS EN DECREASE SG RV See Note Page 1 of 2
Provides relative to fees charged to businesses by state agencies during a state of emergency (Items #2, 3, 32, and 35)
Proposed legislation exempts businesses that 1) had a physical and active operation in Louisiana as of 3/1/20; 2) had 50 or fewer full-time
employees as of 3/1/20; 3) is not a subsidiary of a business with more than 50 full-time employees; 4) ceased operations or suffered an
interruption in business due to COVID-19; and 5) is assigned a specific NAICS code; and 6) has not received $250 or more from specified
sources; from the payment of any license renewal fee until 6 months after the termination of the COVID-19 public health emergency.
Provides that the following fees do not apply for this exemption: 1) fees for weights and measures (R.S. 3:4622); 2) licenses, fees, and
registrations for participating in racing (R.S. 4:169); 3) retail food establishment fees (R.S. 40: 31.37); and 4) fees chargeable to the
Secretary of State (SOS) (R.S. 49:222). The proposed amendment also requires the Secretary of State to provide an application to
businesses to apply for this exemption and also clarifies the language “license renewal fee”. The proposed legislation requires the Division
of Administration (DOA) to submit a report to the Joint Legislative Committee on the Budget (JLCB) by 12/1/20 indicating each agency fee
which has been exempted. JLCB may also further extend any fee exemption an additional six months. Effective upon signature of the
Governor.
EXPENDITURES 2020-21 2021-22 2022-23 2023-24 2024-25 5 -YEAR TOTAL
State Gen. Fd. INCREASE INCREASE $0 $0 $0 $0
Agy. Self-Gen. DECREASE DECREASE $0 $0 $0 $0
Ded./Other DECREASE DECREASE $0 $0 $0 $0
Federal Funds DECREASE DECREASE $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 DECREASE DECREASE $0 $0 $0 $0
Federal Funds DECREASE DECREASE $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0
EXPENDITURE EXPLANATION
There will be an indeterminable decrease in the expenditures of certain state agencies and/or boards as a result of the fee
waivers. These fees are classified as self-generated revenues and/or are deposited into statutorily dedicated funds and are
budgeted by agencies/boards across state government to fund annual operating expenses, including oversight and
administration of these impacted businesses. For some agencies/boards these revenue sources constitute the majority of
certain program budgets, and they receive no state general fund support. For other agencies/boards the percentage of
program budgets supported by these revenues is much smaller. Therefore, any reductions will have varying impacts on state
agencies/boards. Out years reflect no impact because the LFO assumes the public health emergency declaration will expire
in 2021.
Note: Some agencies reported that IT costs may increase as a result of adjusting their computer processes and systems due
to declared emergencies and exemptions. However, it is unlikely that these IT costs would be larger than the loss of self-
generated revenue from the fee waivers, resulting in a net decrease in expenditures.
In order to maintain existing operations, agencies would require an appropriation from the state general fund or an alternate
means of finance.
REVENUE EXPLANATION
There will be a significant decrease in the revenue of multiple state agencies as a result of the exemption of license renewal
fees. The impact could range from no impact to the elimination of a significant amount of fee revenue ordinarily collected.
In addition, some agencies may lose federal funds without sufficient revenues to match grants. Provides clarification to the
term “license renewal fee”, which includes occupational licenses. The inclusion of occupational licenses will result in a
decrease in revenue to some boards that regulate professions that fall under the NAICS codes listed in the proposed
legislation.
Note: Some agencies already have processes in place to take into account declared states of emergencies and adjust their
billing collections, offer payment plans, and often waive late fees for businesses located within the area of the declared
emergency.
There are 21 executive branch departments that impose fees. Numerous agencies may be impacted by this proposed
legislation. For informational purposes, the following is a sampling of the responses received by the LFO as of 10/13/20.
[CONTINUED ON PAGE 2]
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} or a Net Fee Decrease {S} Staff Director
 LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 94 HLS 202ES 178
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.: HB 27
Date: October 23, 2020 2:45 PM Author: ZERINGUE
Dept./Agy.: State Agencies
Subject: Suspension of fees Analyst: Rebecca Robinson
CONTINUED EXPLANATION from page one: Page 2 of 2
REVENUE EXPLANATION CONTINUED FROM PAGE ONE
Department of Public Safety: Office of the Fire Marshall regulates amusement rides which bring in approximately $80,000
annually
Department of Environmental Quality: For business with less than 50 employees, DEQ reports it has billed $103,195 to
facilities that may qualify for an exemption; $70,623 has been paid with a remaining unpaid balance of $32,572.
Department of Natural Resources: $10,000 to permit marinas; DNR reports this amount is easily absorbed within the usual
fluctuation of permitting activity
Department of Agriculture & Forestry: the list of NAICS codes would limit the exemption to only florists; licenses for florists
bring in $85,000 annually
Department of Health & Hospitals: safe drinking water $7,900; renewals for tattoo artists $147,000
Department of Insurance: no impact
Public Service Commission: no impact
Alcohol & Tobacco Control: beer, liquor, wine, 2 year permit accounts, and gross sales fees brought in $3.9 M in FY 20;
tobacco retail permit brought in $197,350 in FY 20
Department of Wildlife & Fisheries: no impact
Department of Education: no impact
Louisiana Racing Commission: no impact
Secretary of State: no impact due to exclusion in the proposed amendments; requirement for SOS to create the exemption
application can be absorbed within their current operating budget
Louisiana Board of Cosmetology: $1,891,579 in revenue in FY 19, or 100% of board expenditures*
State Board of Electroylsis Examiners: $9,375 in revenue in FY 19, or 100% of board expenditures*
Board of Massage Therapy: $300,000 in license renewals for individual therapists; $35,000 in license renewals for
establishment licenses
Barbers Examiners Board: $536,446 in revenue in FY 19, or 100% of board expenditures*
*The LFO has requested information from these boards to determine the amount of revenue from license renewals but had
not received the information by the time of this writing. The total revenues reported above for these boards would include
licenses and fees outside of renewals. Total revenue collections tied directly to renewals only is unavailable at this time.
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} or a Net Fee Decrease {S} Staff Director