LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 612 HLS 22RS 824
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: June 8, 2022 9:54 AM Author: HUVAL
Dept./Agy.: Insurance
Subject: Creates the LA Fortify Homes Program & Fortify Home Fund Analyst: Patrice Thomas
INSURANCE DEPARTMENT EN SEE FISC NOTE SD EX Page 1 of 2
Provides for the Louisiana Fortify Homes Program
Proposed law creates the LA Fortify Homes Program within the LA Department of Insurance (LDI) and provides that the
Commissioner of Insurance may make financial grants to retrofit roofs of insurable property with a homestead exemption to
resist loss and meet or exceed the fortified home standards of the Insurance Institute for Business and Home Safety -
“fortified roof”. To receive a grant under proposed law, the grantee shall obtain all permits required for construction,
arrange and pay for inspections performed by a certified inspector, comply with applicable building codes, and maintain
records. Proposed law provides the grantee's name and municipal address as well as the amount of the grant shall be a
public record. Proposed law creates the LA Fortify Homes Fund within the state treasury that appropriated or transferred
monies shall be used to cover the cost of grants, and unexpended shall remain in the fund. Proposed law does not create an
entitlement for property owners to receive grant funding or create any obligation for the state. Proposed law effective Jan.
1, 2023 and sunsets June 30, 2025.
EXPENDITURES 2022-23 2023-24 2024-25 2025-26 2026-27 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other SEE BELOW SEE BELOW SEE BELOW $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0
REVENUES 2022-23 2023-24 2024-25 2025-26 2026-27 5 -YEAR TOTAL
State Gen. Fd. SEE BELOW SEE BELOW SEE BELOW $0 $0 $0
Agy. Self-Gen. SEE BELOW SEE BELOW SEE BELOW $0 $0 $0
Ded./Other SEE BELOW SEE BELOW SEE BELOW $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0
EXPENDITURE EXPLANATION
Proposed law may increase statutory dedication expenditures within the LA Department of Insurance (LDI) as a result of
making financial grants to retrofit roofs of insurable property in the state. The proposed law creates the LA Fortify Homes
Program, which shall be administered by LDI and will make financial grants to retrofit a “fortified roof” on residential
properties from the newly created statutorily dedicated LA Fortify Homes Program Fund. Monies in the fund are subject
to appropriation or transfer by the legislature. To the extent monies are available, the department will experience
increases in expenditures from the LA Fortify Home Program Fund by an indeterminable amount in FY 23, FY 24, and FY 25.
To implement the program, LDI anticipates this measure will require an additional Insurance Specialist position ($85,000
salary and $47,480 related benefits), operating services ($3,488), and supplies ($646) as well as one-time costs for IT
programming ($77,500), computer equipment ($2,290), and office furniture ($1,630) in FY 23. Beginning in FY 24 and
subsequent fiscal years, this fiscal note assumes a 2% market rate adjustment in salaries for the Insurance Specialist
position and a 2.4% inflation increase in operating services (total expenditures of $139,111 in FY 24, and $141,655 in FY
25).
FY 22-23 FY 23-24 FY 24-25
Salary/Related Benefit* $66,240 $134,877 $137,321
Operating Expenses $3,488 $3,572 $3,657
Supplies. $646 $662 $677
Professional Services $77,500 $0 $0
Acquisitions $3,920 $0 $0
Sub-Total $151,794 $139,111 $141,655
Other Charges (Grants)* Indeterminable Indeterminable Indeterminable
*Since proposed law is effective January 1, 2023, FY 23 expenditures represent 6 months of funding for salary and related benefits. Also,
the amount of monies that will be appropriated or transferred by the legislature into the LA Fortify Home Program Fund is indeterminable.
Note: The proposed law is silent regarding administrative costs for running the LA Fortify Homes Program. The LFO
presumes the cost of administering the program by LDI would be funded in addition to monies for grants. See Page 2
REVENUE EXPLANATION
There is no anticipated direct material effect on governmental revenues as a result of this measure.
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 Evan Brasseaux
6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Interim Deputy Fiscal Officer
 LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 612 HLS 22RS 824
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: June 8, 2022 9:54 AM Author: HUVAL
Dept./Agy.: Insurance
Subject: Creates the LA Fortify Homes Program & Fortify Home Fund Analyst: Patrice Thomas
CONTINUED EXPLANATION from page one: Page 2 of 2
EXPENDITURE EXPLANATION Continued from Page 1
Treasury
Creating a new statutory dedication within the state treasury will result in a marginal workload increase for the Department
of Treasury, which can generally be absorbed within existing resources. However, to the extent other legislative instruments
create new statutory dedications, there may be material additional costs associated with the aggregate effort to administer
these funds. The Treasury performs fund accounting, financial reporting, banking, and custodial functions for 436 special
funds. When unable to absorb additional workload with existing resources, the Treasury anticipates it will be required to add
one T.O. position at a total personnel services cost of approximately $73,000, plus approximately $2,450 for a one-time
purchase of office equipment. These expenditures are assumed to be SGF in this fiscal note.
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 Evan Brasseaux
6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Interim Deputy Fiscal Officer