892666v.1
2007 LOUISIANA
LEGISLATIVE ACTS
SUMMARY
892666v.1
2007 Legislative Acts Summary
Contents
This book summarizes those new laws passed by the Louisiana Legislature in late 2006 and in
2007 that were deemed material to SPWW's practice of law (along with a few not so material).
The book is organized in a logical fashion, rather than Act number order. Please see the Table of
Contents. In addition, the appendices contain various summaries prepared by other
organizations, as well as a very brief summary of all of the Acts passed in late 2006 and in 2007
in Act number order.
Warning
The summaries are not intended to substitute for careful examination of a new law itself, if it is
at issue. Our summaries are based on more detailed summaries prepared by the Legislative staff,
which are available at www.legis.state.la.us/home.htm (scroll down to "Bill Search", search by
"ACT" rather than "HB", and print the latest "Digest"). We have not attempted to verify the
accuracy of the summaries prepared by the Legislative staff; we have simply edited them down.
The summaries prepared by other organizations obviously vary widely in quality, scope, and
perspective.
Where to Find Full Text of Acts and Laws
All Acts are available at www.legis.state.la.us/home.htm (scroll down to "Bill Search" and
search by "ACT" rather than "HB").
All Louisiana laws, once codified, are available at www.legis.state.la.us/tsrs/search.htm.
Feedback
If you have any thoughts on how this book might be improved, please send an email to Mike
Landry, John Farnsworth, or Larry Orlansky. We would like to make the book as useful as
possible.
Credits
Emily Brewer – downloaded the Legislative staff summaries from the Legislature's website,
implemented all edits and conformed them to a common style sheet, assembled the summaries in
the Table of Contents order, and assembled all the parts into a single book
Mike Landry – selected and edited legislative staff summaries for inclusion in book, found
summaries by other organizations, and provided design and oversight
Copy Department – made copies of this book for all attorneys and paralegals and distributed it
TABLE OF CONTENTS
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Constitution ......................................................................................................................................1
Civil Code ........................................................................................................................................1
Code of Civil Procedure...................................................................................................................2
Code of Criminal Procedure ............................................................................................................4
Code of Evidence .............................................................................................................................4
Children's Code ................................................................................................................................4
Uncodified........................................................................................................................................6
Title 1: General Provisions .............................................................................................................6
Title 2: Aeronautics.........................................................................................................................6
Title 3: Agriculture and Forestry ....................................................................................................6
Title 4: Amusements and Sports .....................................................................................................6
Title 5: Auctions and Auctioneers (Repealed) ................................................................................7
Title 6: Banks and Banking.............................................................................................................7
Title 7: Bills and Notes (Repealed) .................................................................................................9
Title 8: Cemeteries ..........................................................................................................................9
Title 9: Civil Code Ancillaries ........................................................................................................9
Title 10: Commercial Laws ..........................................................................................................10
Title 11: Consolidated Public Retirement Systems ......................................................................10
Title 12: Corporations and Associations .......................................................................................11
Title 13: Courts and Judicial Procedure ........................................................................................11
Title 14: Criminal Law..................................................................................................................14
Title 15: Criminal Procedure ........................................................................................................15
Title 16: District Attorneys ...........................................................................................................17
Title 17: Education ........................................................................................................................17
Title 18: Louisiana Election Code ................................................................................................18
Title 19: Expropriation ..................................................................................................................19
Title 20: Homesteads and Exemptions .........................................................................................19
Title 21: Hotels and Lodging Houses ...........................................................................................19
Title 22: Insurance ........................................................................................................................19
Title 23: Labor and Workers' Compensation ................................................................................24
Title 24: Legislature and Laws .....................................................................................................26
Title 25: Libraries, Museums, and Other Scientific and Cultural Facilities .................................26
Title 26: Liquors – Alcoholic Beverages ......................................................................................26
Title 27: Louisiana Gaming Control Law .....................................................................................26
Title 28: Mental Health .................................................................................................................27
Title 29: Military, Naval, and Veterans' Affairs ...........................................................................27
Title 30: Minerals, Oil, and Gas and Environmental Quality .......................................................28
Title 31: Mineral Code ..................................................................................................................29
Title 32: Motor Vehicles and Traffic Regulation .........................................................................29
Title 33: Municipalities and Parishes ............................................................................................31
TABLE OF CONTENTS
(continued)
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Title 34: Navigation and Shipping ................................................................................................33
Title 35: Notaries Public and Commissioners ..............................................................................33
Title 36: Organization of Executive Branch of State Government ...............................................33
Title 37: Professions and Occupations ..........................................................................................33
Title 38: Public Contracts, Works and Improvements ..................................................................36
Title 39: Public Finance ................................................................................................................37
Title 40: Public Health and Safety ................................................................................................39
Title 41: Public Lands ...................................................................................................................44
Title 42: Public Officers and Employees ......................................................................................45
Title 43: Public Printing and Advertisements ...............................................................................47
Title 44: Public Records and Recorders........................................................................................47
Title 45: Public Utilities and Carriers ...........................................................................................48
Title 46: Public Welfare and Assistance .......................................................................................52
Title 47: Revenue and Taxation ....................................................................................................54
Title 48: Roads, Bridges and Ferries.............................................................................................71
Title 49: State Administration .......................................................................................................72
Title 50: Surveys and Surveyors ...................................................................................................72
Title 51: Trade and Commerce .....................................................................................................72
Title 52: United States ..................................................................................................................76
Title 53: War Emergency ..............................................................................................................76
Title 54: Warehouses ....................................................................................................................76
Title 55: Weights and Measures (Repealed) .................................................................................77
Title 56: Wildlife and Fisheries ....................................................................................................77
APPENDIX A: SUMMARIES BY OTHER ORGANIZATIONS
APPENDIX B: ACTS OF 2006 SECOND EXTRAORDINARY SESSION
APPENDIX C: ACTS OF 2007 REGULAR SESSION
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CONSTITUTION
Police and Firemen Compensation (Act
No. 483)
Proposed constitutional amendment prohibits the
reduction of state salary supplements for full-
time local law enforcement and fire protection
officers. Further provides that full funding shall
be the amount needed to meet legal requirements
by law.
Specifies submission of the amendment to the
voters at the statewide election to be held on
Oct. 20, 2007.
(Amends Const. Art VII, Sec.10(D)(3)(a) and
(c))
State Retirement Benefits (Act No. 484)
Proposed constitutional amendment would
provide that no benefit provision for members of
a state retirement system having an actuarial cost
shall be approved by the legislature unless a
funding source providing new or additional
funds sufficient to pay all such actuarial cost
within 10 years of the effective date of the
benefit provision is identified in such enactment.
Specifies submission of the amendment to the
voters at the election to be held on October 20,
2007.
(Amends Art. X, Sec. 29 (E)(5))
Waterfront Police and Port Firemen
Compensation (Act No. 485)
Proposed constitutional amendment authorizes
the legislature to supplement the uniform pay
plans for civil service law enforcement officers
employed on a full-time basis by a police agency
of the state or its political subdivisions who
serve by effecting arrests, issuing citations, and
serving warrants while patrolling waterways and
riverfront areas.
Proposed constitutional amendment additionally
authorizes the legislature to supplement the
uniform pay plans for fire protection officers
employed on a fulltime basis who provide fire
protection services to a port authority.
Specifies submission of the amendment to the
voters at the statewide election to be held on
October 20, 2007.
(Amends Const. Art. X, Sec.10(A)(1))
Ad Valorem Tax Exemption for Consigned
Jewelry (Act No. 486)
Proposed constitutional amendment adds
jewelry listed as a consignment article by a
jewelry dealer to the list of property exempted
from ad valorem taxation.
Provides for submission of the proposed
amendment to the voters at the statewide
election to be held Oct. 20, 2007.
Effective January 1, 2008. (Amends Const. Art.
VII, §21(C)(19))
CIVIL CODE
Settlements (Act No. 138)
New law rewrites the Civil Code articles on
settlement. Here are the new articles verbatim:
Art. 3071. Compromise; definition
A compromise is a contract whereby the parties,
through concessions made by one or more of
them, settle a dispute or an uncertainty
concerning an obligation or other legal
relationship.
Art. 3072. Formal requirements; effects
A compromise shall be made in writing or
recited in open court, in which case the
recitation shall be susceptible of being
transcribed from the record of the proceedings.
Art. 3073. Capacity and form
When a compromise effects a transfer or
renunciation of rights, the parties shall have the
capacity, and the contract shall meet the
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requirement of form, prescribed for the transfer
or renunciation.
Art. 3074. Lawful object
The civil consequences of an unlawful act giving
rise to a criminal action may be the object of a
compromise, but the criminal action itself shall
not be extinguished by the compromise.
A compromise may relate to the patrimonial
effects of a person's civil status, but that civil
status cannot be changed by the compromise.
Art. 3075. Relative effect
A compromise entered into by one of multiple
persons with an interest in the same matter does
not bind the others, nor can it be raised by them
as a defense, unless the matter compromised is a
solidary obligation.
Art. 3076. Scope of the act
A compromise settles only those differences that
the parties clearly intended to settle, including
the necessary consequences of what they
express.
Art. 3077. (Reserved)
Art. 3078. After-acquired rights
A compromise does not affect rights
subsequently acquired by a party, unless those
rights are expressly included in the agreement.
Art. 3079. Tender and acceptance of less than
the amount of the claim
A compromise is also made when the claimant
of a disputed or unliquidated claim, regardless of
the extent of his claim, accepts a payment that
the other party tenders with the clearly expressed
written condition that acceptance of the payment
will extinguish the obligation.
Art. 3080. Preclusive effect of compromise
A compromise precludes the parties from
bringing a subsequent action based upon the
matter that was compromised.
Art. 3081. Effect on novation
A compromise does not effect a novation of the
antecedent obligation. When a party fails to
perform a compromise, the other party may act
either to enforce the compromise or to dissolve
it and enforce his original claim.
Art. 3082. Rescission
A compromise may be rescinded for error, fraud,
and other grounds for the annulment of
contracts. Nevertheless, a compromise cannot
be rescinded on grounds of error of law or
lesion.
Art. 3083. Compromise suspends prescription
A compromise entered into prior to filing suit
suspends the running of prescription of the
claims settled in the compromise. If the
compromise is rescinded or dissolved,
prescription on the settled claims begins to run
again from the time of rescission or dissolution.
CODE OF CIVIL PROCEDURE
Venue for Child Custody or Support
Proceeding (Act No. 99)
New law requires a child custody or support
proceeding to be transferred to the parish where
a party has established a new domicile after
August 26, 2005, and before August 15, 2007, if
the other party was a nonresident of the state.
New law requires the motion for transfer to be
filed on or before December 31, 2007.
Effective August 15, 2007. (Adds C.C.P. Art.
74.2(F))
Venue for Judgment Debtor Exams and Suits
on Open Account (Act No. 433)
Prior law provided that a judgment debtor may
be examined in a court of competent jurisdiction
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in the parish where the judgment debtor is
domiciled. New law adds that a judgment debtor
may also be examined in the parish where the
judgment was rendered or where the debt that
has been reduced to judgment was incurred.
New law provides that an action for the
collection of an open account may be brought in
the parish where the open account was created
or where the services forming the basis of the
open account were performed, or in the parish of
the debtor's domicile.
Effective August 15, 2007. (Amends C.C.P. Art.
2452(B); Adds C.C.P. Art. 74.4)
Abandonment of Civil Actions after
Katrina/Rita (Act No. 361)
Existing law provides that a civil action is
abandoned when the parties fail to take any step
in its prosecution or defense for a period of three
years.
New law provides an additional abandonment
period for pleadings filed prior to August 26,
2005, which were not previously abandoned,
when the parties fail to take any step in its
prosecution or defense for a period of five years
due to Hurricane Katrina or Rita.
New law provides that it shall be null and void
as of August 26, 2010.
Effective upon signature of governor (July 9,
2007). (Amends C.C.P. Art. 561(A))
Amendments to Discovery Rules (Act
No. 140)
New law provides that electronically stored
information is discoverable.
New law requires parties claiming information
as privileged or protected to make the claim
expressly and to specify the nature of the
document, without revealing protected
information.
New law also provides procedures for when
protected information is inadvertently disclosed.
New law protects from discovery the mental
impressions of the attorney that may be reflected
in an expert's draft report.
New law adds "electronically stored
information" to the type of business record
information which may contain discoverable
material.
New law provides for the discovery of
"electronically stored information", sound
recordings, images, and data compilations "in
any medium", and permits the testing and
sampling thereof.
New law provides a procedure for reasonably
specifying the form or forms in which
information is to be produced, objection thereto,
and limited access to computers or other storage
devices to the requesting party upon a showing
of noncompliance and for good cause shown.
New law allows live testimony of witnesses by
video.
New law specifies the procedures for utilizing a
commercial carrier for service of process.
Effective August 15, 2007. (Amends C.C.P.
Arts. 1424, 1425, 1460-1462 and R.S. 13:3205;
Adds C.C.P. Art. 1633.1)
Judgments and Liens to Include SSN Ending
(Act No. 11)
New law provides that a final judgment for the
payment of money shall include the last four
digits of the social security number of the
judgment debtors, if known by the attorney
preparing the judgment. However, the failure to
include such information shall not affect the
validity of the judgment.
New law additionally requires that a recorded
lien having the effect of a money judgment shall
include the last four digits of the social security
number or the IRS taxpayer identification
number of the debtor, if known by the attorney
preparing the lien. However, the failure to
include such information shall not affect the
validity of the lien.
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Effective upon signature of the governor (June
18, 2007). (Amends C.C.P. Art. 1922)
CODE OF CRIMINAL PROCEDURE
Witness Subpoenaes by 24th JDC (Act
No. 29)
New law provides that the clerk of court for the
24th JDC (Jefferson Parish) may place his
signature by electronic means on all subpoenas
issued for the compulsory attendance of
witnesses at hearings or trials.
Effective August 15, 2007. (Amends C.Cr.P.
Art. 731(B))
CODE OF EVIDENCE
Subpoenaes of and Orders to Government
Attorneys (Act No. 23)
New law provides that the procedural provisions
and protections regarding subpoenas of attorneys
shall extend to lawyers representing the state or
any political subdivision, whether the lawyer is
the attorney general or assistant attorney general,
a district attorney or assistant district attorney, or
a municipal or city attorney or assistant
municipal or assistant city attorney, and shall
extend to lawyers employed by either house of
the Louisiana Legislature.
Effective August 15, 2007. (Adds C.E. Arts.
507(E) and 508(E))
CHILDREN'S CODE
Mediation in FINS Cases; Pre-Natal Alcohol
Exposure (Act No. 396)
New law permits a court to refer cases to
mediation in families in need of services (FINS)
cases.
New law adds that prenatal neglect may also
include exposure in utero to chronic or severe
use of alcohol that produces observable and
harmful effects in the newborn's physical
appearance or functioning, and requires a
physician to report to the local child protection
office if he observes such effects which he
believes are due to such causes.
Effective upon the appropriation of sufficient
funds by the legislature. (Amends Ch.C. Arts.
437(A), 603(16.1), and 610(G); Adds Ch.C. Art.
603(14.1.1))
Indigent Parents' Representation Program
(Act No. 95)
New law provides for the Indigent Parents'
Representation Program to provide qualified
legal counsel to indigent parents in child abuse
and neglect cases.
New law provides for standards, guidelines, and
rules to be adopted by the board in
implementation of the program, the creation of
the "Louisiana Indigent Parent Representation
Program Fund", special reporting requirements
for indigent parent representation cases, auditing
requirements for attorneys representing indigent
parents in child abuse and neglect cases, and a
timeline for the incremental implementation of
new law.
Effective August 15, 2007 (Amends R.S.
46:460.21; Adds R.S. 46:460.21(B)(1.1) and (G)
and Ch.C. Arts. 571-575 and R.S. 15:185.1-
185.9)
Parent Coordinator Mediators (Act No. 265)
New law provides for a parenting coordination
process, which is an alternate dispute resolution
process in which a parenting coordinator assists
parents to implement a parenting plan by
facilitating the resolution of their disputes in a
timely manner.
New law provides that a court may appoint a
parenting coordinator on its own motion or upon
motion of any party upon a showing of good
cause and only if there is a preexisting judgment
establishing custody. The initial term for the
appointment of the parenting coordinator shall
not exceed one year, but for good cause shown,
the term may be extended for additional one
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year terms. Each party must pay a portion of the
costs of the parenting coordinator.
New law provides for qualifications, duties and
authority of the parenting coordinator.
The parenting coordinator may not assist the
parties in reaching an agreement that would
change legal custody or that would change the
physical custody or visitation schedule in a way
that results in a change in child support.
The parenting coordinator must prepare
necessary reports, but may not be called as a
witness in the child custody proceeding without
prior court approval.
The parenting coordinator may not communicate
ex parte with the court, except in an emergency
situation; may communicate with the child and
other persons not a party to the litigation; and
may be terminated for good cause shown.
The court shall order the parties to cooperate
with the parenting coordinator by providing
requested information.
The parenting coordinator shall not be
personally liable for any act or omission
resulting in damage, injury, or loss arising out of
the exercise of his official duties and in the
course and scope of his appointment, unless the
damage, injury, or loss was caused by the gross
negligence or willful or wanton misconduct of
the parenting coordinator.
A parenting coordinator is a mandatory reporter
of child abuse and neglect.
Effective August 15, 2007. (Adds Ch.C. Art.
603(13)(h) and R.S. 9:358.1-358.9)
Family Child Day Care Homes (Act No. 119)
Prior law provided that the term "caretaker"
included an operator or employee of a family
child day care home. New law limits this
provision of the definition to mean a family
child day care home that is registered with the
state.
New law further allows the Dept. of Social
Services to notify parents of children in
registered family child day care homes of a valid
abuse finding, as is currently allowed for similar
findings in public or private day care centers.
New law further authorizes the Dept. of Social
Services to release to the Dept. of Education
limited information as to valid findings of child
abuse, neglect, or exploitation occurring at a
family child day care home that is registered by
that department.
Effective upon signature of the governor (June
25, 2007). (Amends Ch. C. Art. 603(3) and R.S.
46:56(F)(4)(c))
Notice of Foster Child Hearings (Act No. 334)
New law makes necessary changes to existing
law in order to comply with the federal Safe and
Timely Interstate Placement of Foster Children
Act of 2006. Among other things:
New law requires that notice of any court
hearing regarding a child be given to parents,
parties, foster parents, pre-adoptive parents, and
relatives providing care. New law also provides
for notice of the right to be heard and permits
the court to hold various types of hearings even
if certain classes of persons are absent.
New law adds that the court will consider in-
state and out-of-state permanent placement
options.
New law adds that interstate placement is an
option when removal is appropriate.
New law requires the court in a permanency
hearing to consult the child, in an age-
appropriate manner, regarding the new
permanency or transition plan for the child.
New law provides that for a child of age 16, the
hearing must determine the services the child
needs to move from foster care to independent
living.
Effective August 15, 2007. (Amends Ch.C. Arts.
623, 624, 645, 672.1, 675, 682, 695, 702, 705,
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and 1025; Adds Ch.C. Arts. 116(6) and (8.1),
603(11), 622.1, 679(D), 702(I) and (J), 780(E),
and 901(F))
Adoption by Relatives (Act No. 111)
New law expands the persons who may petition
for intrafamily adoption of a child to include
second and third cousins.
Effective August 15, 2007. (Amends Ch.C. Art.
1243(A))
UNCODIFIED
Home Rehabilitation Income Tax Credit
Extension (Act No. 188)
New law extends the individual income tax
credit for the rehabilitation of certain owner
occupied residential structures until and
including the tax years beginning on or before
Dec. 31, 2012.
Effective August 15, 2007. (Amends §2 of Act
No. 479 of the 2005 R.S.)
DDD Historic Structures Tax Credit
Extension (Act No. 182)
New law extends last year to take income and
corporation franchise tax credit for the
rehabilitation of historic structures located in a
downtown development district from 2007 to
2011.
Effective August 15, 2007. (Amends §3 of Act
No. 60 of the 2002 R.S., as amended by Act No.
12 of the 2004 1st E.S.)
Capital Improvement Program and State
Bond Commission (Act No. 38)
New law provides for the implementation of a
five-year capital improvement program;
provides for the repeal of certain prior bond
authorizations; provides for new bond
authorizations; provides for authorization and
sale of such bonds by the State Bond
Commission; provides for related matters.
Effective upon signature of governor (July 19,
2007).
L.A. R.S. TITLE 1: GENERAL
PROVISIONS
Nothing of particular interest.
L.A. R.S. TITLE 2: AERONAUTICS
Nothing of particular interest.
L.A. R.S. TITLE 3: AGRICULTURE
AND FORESTRY
Nothing of particular interest.
L.A. R.S. TITLE 4: AMUSEMENTS AND
SPORTS
Professional Boxing, Wrestling, and Mixed
Technique Events (Act No. 90)
New law provides the Louisiana State Boxing
and Wrestling Commission also has authority to
regulate mixed technique events.
New law provides that each club promoting a
boxing, mixed technique, or professional
wrestling event shall pay for and obtain the
attendance of emergency medical personnel to
include no less than two attendants and an
ambulance which shall be in attendance
throughout each event.
New law provides that an appointed physician as
well as referees, judges, and other officials
appointed by the commission shall be
considered independent contractors of the
commission.
New law provides that the fees for the physician,
referees and judges for each individual event
shall be paid by the club promoting the event in
question and shall be reasonable and customary
for the size and location of the event.
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892666v.1
New law provides that no person shall conduct,
promote, or in any manner participate in any
boxing, mixed technique, or wrestling event or
exhibition without the sanctioning of the
commission.
New law does not apply to amateur contests,
competitions, or exhibitions. New law repeals
definitions provided for in present law and
provides new definitions for "amateur", "club",
"exhibition", "mixed technique event",
"professional boxer", "professional wrestler",
and "professional wrestling event".
New law makes various other changes,
particularly with respect to fees.
(Amends R.S. 4:61, 63, 64, 65, 67, 70, 72, 73,
75, 76, 79, 81, 82, 83, and 85; Adds R.S.
4:61(F), 82.1, and 82.2)
L.A. R.S. TITLE 5: AUCTIONS AND
AUCTIONEERS (REPEALED)
Nothing of particular interest.
L.A. R.S. TITLE 6: BANKS AND
BANKING
Car Dealers (Act No. 131)
New law authorizes the seller of a motor vehicle
to charge and collect a documentation and
compliance fee, not to exceed $100.
New law makes void and unenforceable any
litigation or arbitration clause contained in a
motor vehicle credit transaction that was entered
into in the state which would remove the
transaction outside of Louisiana.
New law exempts from licensing requirements
of the La. Motor Vehicles Sales Finance Act,
licensed used motor vehicle dealers to the extent
they regularly sell, assign, and transfer contracts
originated by them to third party assignees
within 60 days following origination. New law
authorizes a licensed used motor vehicle dealer
to retain at any one time, and from time to time
thereafter, a maximum of 12 contracts for its
own account without being subject to such
licensing requirements.
Effective upon signature of the governor (June
25, 2007). (Amends R.S. 6:969.18(A)(2) and
969.36(A)(8); adds R.S. 6:969.42)
OFI to Use Online Licensing System (Act
No. 36)
New law provides that the commissioner of the
Office of Financial Institutions shall have the
authority to take all action regarding an online
licensing system.
New law provides that the commissioner may
disclose information that may be obtained in
connection with the online licensing system to
other regulatory agencies that utilize the same
system and to third-party providers of the
system.
New law provides that persons engaged in
activities that require licensure pursuant to new
law shall be required to pay all applicable fees to
utilize the licensing system.
New law provides that a renewal of a license
may be rejected for failure to utilize the
licensing system.
New law no longer provides that the
commissioner may make public any final
administrative action instituted against a licensee
or exempt registrant for a violation of law.
Effective upon signature of governor (June 18,
2007). (Amends R.S. 6:1088(F)(4); Adds R.S.
6:103(B)(16), 1083(3.2), and 1088.1; Repeals
R.S. 6:1092(J))
Conflict of Interest between Residential
Mortgage Lending and Real Estate License
(Act No. 39)
New law prohibits a licensee under the
Residential Mortgage Lending Act from
engaging in or being financially compensated
for any loan transaction in which such person,
for a fee, commission, or other valuable
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892666v.1
consideration, is acting as a licensee under the
Louisiana Real Estate License Law, in
connection with the same residential loan
transaction.
Effective August 15, 2007. (Adds R.S.
6:1090(I))
OFI May Not Publicize Administrative
Actions (Act No. 376)
Prior law allowed the commissioner of the office
of financial institutions (OFI) to make public
any administrative action instituted against a
licensee or exempt registrant for a violation of
law. New law removes this authority from the
commissioner.
New law authorizes the commissioner to obtain
criminal history information on any person listed
on any application, registration, or renewal filed
with OFI.
Effective upon signature of the governor (July
10, 2007). (Amends R.S. 6:121.2(B), (C), and
(D); repeals R.S. 6:1092(J))
CPE Requirements for Mortgage
Professionals (Act No. 34)
New law changes continuing professional
education requirements for all persons applying
for reinstatement or renewal of their mortgage
broker, mortgage lender, or originator license.
New law provides that recognized professional
educational institutions shall be approved by the
commissioner and the Residential Mortgage
Lending Board and that each course taught by
professional education providers shall include at
least 30 minutes of instruction relating to
changes or updates on new developments in the
residential mortgage lending business. New law
further provides that the applicant shall acquire
four hours of required instruction through
courses offered or approved by the Mortgage
Bankers Association or the National Association
of Mortgage Brokers.
Effective August 15, 2007. (Amends R.S.
6:1094(C)(1))
Insurance Premiums in Residential Mortgage
Loans (Act No. 12 of 2006 2nd Extraordinary
Session)
Existing law provides that no mortgage lender
may finance or include in the loan amount of a
residential mortgage loan the premium amount
for any single premium credit life,
dismemberment, health and accident, mortgage
life and disability, involuntary unemployment,
collateral protection, or debt cancellation
insurance sold in connection with a residential
loan transaction, unless those premiums are
financed prior to 8/14/07.
New law retains existing law, and further
clarifies that the loan amount refers to the
original principal balance of the residential
mortgage loan.
New law exempts residential mortgage loans
which have an original principal balance of less
than $50,000 and those which will fully
amortize the insurance premium no later than the
expiration date of such insurance product.
Effective upon signature of the governor (June
18, 2007). (Amends R.S. 6:1096(G)(3))
Mutual Savings Banks (Act No. 15)
New law provides that the articles of
incorporation of a mutual savings bank may
limit the total number of votes held by each
member, provided that the limit is no less than
500 votes.
New law further provides that a mutual savings
bank may divide the board of directors into three
classes who will serve staggered terms. No
director can be elected for a single term of more
than three years.
New law provides that the provisions of new law
are remedial in nature and are to be applied
retrospectively.
Effective upon signature of the governor (June
18, 2007). (Amends R.S. 6:1185(B)(2) and
1188(B))
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L.A. R.S. TITLE 7: BILLS AND NOTES
(REPEALED)
Nothing of particular interest.
L.A. R.S. TITLE 8: CEMETERIES
Nothing of particular interest.
L.A. R.S. TITLE 9: CIVIL CODE
ANCILLARIES
Vessel Titles and Security Interests (Act
No. 319)
New law, entitled the "Vessel Titling Act,"
among other things:
1. Authorizes the purchaser or possessor of
a vessel which is valued in excess of $2,500, to
be principally operated in this state, transferred
for the first time on or after July 1, 2008, and
required to be numbered, to obtain a certificate
of title from the Dept. of Wildlife and Fisheries.
2. Prohibits the sale, assignment, or
transfer of a vessel titled by the department or
documented with the U.S. Coast Guard without
delivering a certificate of title or certificate of
documentation.
3. Prohibits a dealer from purchasing or
otherwise acquiring a new vessel without
obtaining a manufacturer's or importer's
certificate of origin or equivalent document.
4. Requires vessels to have a hull
identification number, and
5. Requires certificates of title to show any
security interest in the vessel.
New law, relative to the UCC:
1. Provides that a security interest in a
titled vessel may be perfected only by
compliance with provisions of the UCC and new
law.
2. Provides that certain provisions of the
UCC do not apply to vessels held in inventory
for sale or lease.
3. Provides that the filing office for the
perfection of security interests under new law is
the Department of Wildlife and Fisheries.
4. Provides that certain provisions of UCC
concerning numbering, maintaining, and
indexing records do not apply to the Department
of Wildlife and Fisheries.
Effective July 1, 2008. (Amends R.S. 10:9-
309(1), 311(b) and (d), 506(c), 513(a)(2), 519(i),
and 526(a); Adds R.S. 10:9-501(a)(3), 504(4),
515(i), and 516(3), and R.S. 34:852.1-852.22)
Jefferson Parish Public Trust Bonds May Be
Tax Exempt (Act No. 93)
New law provides that the property of a public
trust having Jefferson Parish as its beneficiary
which is authorized under its trust indenture to
engage in or issue bonds to finance projects for
certain public purposes is public property used
for essential public and governmental purposes,
and that, accordingly, such public trust, its
properties and income, and bonds it issues and
income from such bonds are exempt from all
taxes of the parish or municipality, the state, or
any political subdivision thereof or any other
taxing body.
New law provides that such public trust may
require the lessee of each of the projects of the
public trust to pay annually a sum in lieu of ad
valorem taxes.
New law shall not become effective until
approved by resolution of the Jefferson Parish
Council.
Effective upon signature of governor (June 22,
2007). (Adds R.S. 9:2347(M))
Limited Liability for Certain Emergency
Services (Act No. 331)
New law provides a limitation of liability for
evacuation services and other assistance
rendered prior to a storm declared by the NOAA
weather service.
New law also provides a limitation of liability
for health care providers who render services in
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a community health care clinic or community
pharmacy following a declared state of
emergency.
Effective August 15, 2007. (Amends R.S.
9:2793.3-2793.6; Adds R.S. 9:2799.5(F))
Limited Liability for Emergency Responders
(Act No. 360)
New law provides that liability shall not be
imposed on any authorized duly licensed or
certified person or juridical person who acts in
good faith and within the scope of applicable
protocols adopted and promulgated by the
Louisiana Emergency Response Network Board
for the Louisiana Emergency Response Network
(LERN) for damages from acts or omissions
resulting in injury, death, or loss, unless such
damage or injury was caused by willful or
wanton misconduct or gross negligence.
New law shall not supersede the provisions of
R.S. 9:2798.1 (liability for discretionary acts of
public entities or officers or employees) or apply
to claims covered by R.S. 13:5101 et seq.
(Louisiana Governmental Claims Act), R.S.
40:1299.39 et seq. (Malpractice Liability for
State Services), or R.S. 40:1299.41 (Medical
Malpractice Act).
Effective August 15, 2007. (Amends R.S.
36:259(J); Adds R.S. 9:2798.5)
Residential Mortgage Lending Act and
Consumer Credit Law (Act No. 13)
New law clarifies that the Residential Mortgage
Lending Act is the primary law governing
mortgage lending loans. Notwithstanding, the
parties to a consumer loan that is secured by a
mortgage on one to four family residential
immovable property may mutually agree that the
loan will be governed by the Louisiana
Consumer Credit Law.
New law changes definition of a "consumer
loan," for purposes of the Louisiana Consumer
Credit Law, to exclude a loan of money to a
consumer which is secured by a second or junior
lien on owner occupied one to four family
residential immovable property, or which is
secured by a first lien or mortgage on owner
occupied one to four family residential
immovable property to the extent the loan does
not qualify as a federally related mortgage loan.
Effective upon signature of the governor (June
18, 2007). (Amends R.S. 9:3516(14) and (19);
adds R.S. 9:3511(F))
Loan Origination Fees (Act No. 31)
New law provides that a lender may charge an
origination fee of not more than $50 (formerly
$25) on a consumer loan or revolving account.
Effective August 15, 2007. (Amends R.S.
9:3530(A)(1))
French Quarter Zoning Prescription (Act
No. 263)
New law provides that the prescriptive period
regarding any action to enforce a zoning
restriction or regulation or a violation thereof in
the Vieux Carre shall begin to run on the date
the properly authorized agency of the city
actually receives written notice of the violation.
New law additionally provides that the
provisions of new law shall not divest a person
of any right obtained as a result of prescription
that accrued prior to August 15, 2007.
Effective August 15, 2007. (Adds R.S.
9:5625(G)(3))
L.A. R.S. TITLE 10: COMMERCIAL
LAWS
Nothing of particular interest.
L.A. R.S. TITLE 11: CONSOLIDATED
PUBLIC RETIREMENT SYSTEMS
Investment in Terrorist Nations (Act No. 352)
New law establishes very complex provisions
apparently designed to require Louisiana public
retirement and pension systems to discourage
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892666v.1
any entities in which they invest from doing
business in Iran, North Korea, Sudan, or Syria
and to create a "terror-free" index fund.
Effective August 15, 2007. (Amends R.S.
11:312(B)(2); Adds R.S. 11:313-316)
L.A. R.S. TITLE 12: CORPORATIONS
AND ASSOCIATIONS
Updated Licenses for Converted Business
Entities (Act No. 63)
New law provides that a domestic business
entity that converts into a different form of
entity shall be recognized by a licensing board
or commission. Prior to updating a license, a
state board or commission may require various
documents.
New law provides that an updated license shall
be issued within 30 days of the board or
commission receiving all documents or fees
requested, unless the licensee owes any unpaid
fines or fees, or is cited or charged with a
violation of the laws or rules pertaining to the
board or commission.
New law provides that an updated license shall
have an effective date retroactive to the date
stated on the certificate of conversion.
New law provides that except for publicly traded
entities, the provisions of new law shall not
apply to a converted entity seeking an updated
license that has changed ownership.
Effective August 15, 2007. (Adds R.S. 12:1607)
L.A. R.S. TITLE 13: COURTS AND
JUDICIAL PROCEDURE
Reorganization of Fifth Circuit (Act No. 261)
New law divides the first district of the Fifth
Circuit Court of Appeal, which district is
composed of the parish of Jefferson, into two
election sections with certain precincts in each
section.
New law provides that the first vacancy created
by the death, resignation, retirement, or removal
of a judge of the first district occurring after
8/15/07, shall be filled by election from election
section two of the first district and such
judgeship shall be assigned to election section
two of the first district for election purposes
thereafter. New law further provides that if no
such election has occurred or is scheduled to
occur prior to the opening of qualifying for the
regular statewide elections in 2012, the regular
election to fill the judgeship designated as
Division G of the first district shall be held in
election section two of the first district and such
division shall be assigned to election section two
for election purposes thereafter.
New law shall become effective upon the
entering of a written consent judgment by the
United States District Court for the Eastern
District of Louisiana,.
Effective August 15, 2007. (Amends R.S.
13:312(5) and 312.1(E))
New Judge for North Shore (Act No. 3)
New law increases the judgeships for the 21st
JDC (Livingston, St. Helena, and Tangipahoa)
from eight to nine and provides that the new
division shall have jurisdiction over juvenile
matters.
New law provides that the additional judge shall
be elected at large, preside over Division I for
purposes of nomination and election, and take
office on January 1, 2009.
Effective upon signature of governor (June 8,
2007). (Amends R.S. 13:621.21)
Jefferson Parish Blighted Property (Act
No. 277)
New law, relative to eliminating deleterious
property in Jefferson Parish, provides that the
public authority in Jefferson Parish may enforce
health, safety, and welfare statutes or
ordinances, or otherwise seek to eliminate
blighted property, unsafe structures and
equipment, unlawful structures and structures
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892666v.1
unfit for human occupancy, housing violations
or public nuisances in any court of competent
jurisdiction.
New law provides that public officers shall have
the authority to (1) investigate the conditions of
premises to determine whether said premises are
unfit for human habitation and to request and
obtain search warrants for entry if necessary, (2)
obtain and receive evidence, and (3) enter upon
any premises for the purpose of making
examinations, provided the entries are made in
such manner as to cause the least possible
inconvenience to the persons in possession.
New law also provides that the court may order
remedial action to be taken, including but not
limited to repair of the premises to appropriate
standards, securing premises from entry by
others, and demolition of any unsafe structures
unfit for human occupancy.
New law establishes a separate environmental
docket to be heard by Division "J" of the 24th
Judicial District Court and provides that any
civil judicial proceeding on the environmental
docket may be heard by summary proceeding.
Effective upon signature of the governor (July 6,
2007). (Adds R.S. 13:621.24.1 and R.S.
33:1373)
Uniform International Child Abduction
Prevention Act (Act No. 369)
New law provides that a petition under the
Uniform International Child Abduction
Prevention Act may be filed only in a court that
has jurisdiction to make a custody determination
with respect to the child in accordance with the
Uniform Child Custody Jurisdiction and
Enforcement Act (UCCJEA).
New law provides a list of factors the court shall
consider in determining the risk of abduction,
authorizes courts to impose certain abduction
prevention measures and remedies, and
authorizes the court to issue an ex parte warrant
to take physical custody of the child after
determining there is a credible risk that the child
is imminently likely to be abducted.
Effective August 15, 2007. (Adds R.S. 13:1851-
1862)
Local Government Liens and Privileges (Act
No. 115)
Existing law provides procedures whereby
certain municipalities or parishes have liens and
privileges against immovable property for
violations of public health, housing, fire code,
environmental, and historic district ordinances.
New law provides that the lien and privilege do
not arise until the order, judgment, notice, and
lien are final and not subject to appeal when
recorded in the mortgage office.
New law authorizes the enforcement of the lien
and privilege by applying to the clerk of the
district court for the issuance of a writ directed
to the sheriff of the parish where the judgment is
to be executed.
New law provides that the remedies are
nonexclusive and may be pursued independently
or all together.
Effective August 15, 2007. Amends R.S.
13:2575(C)(1) and 2576(A)(1))
Hearings for Code Violations (Act No. 193)
New law authorizes each municipality or parish
to adopt ordinances establishing an
administrative adjudication hearing procedure to
provide, in part, for a time period for persons
charged with violating a public health, housing,
fire code, environmental, and historic district
ordinance to have a hearing.
Effective August 15, 2007. (Amends R.S.
13:2575(B)(1))
Jury Trial Costs (Act No. 5)
New law, probably only applicable to 24th
Judicial District Court (Jefferson), makes
numerous changes to jury service rules,
including the following:
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892666v.1
New law requires the court to fix the amount of
the bond to cover all costs related to the jury
trial when the case has been set for trial and
shall fix the time for filing the bond, which shall
be not later than 60 days prior to trial. Also
requires the clerk of court to order the jury
commission to draw the sufficient number of
jurors to try and determine the case when the
bond has been filed.
New law authorizes the court to order, in lieu of
the bond, a deposit for costs, which shall be a
specific cash amount, and requires the court to
fix the time for making the deposit, which shall
be not later than 60 days prior to trial. Also
prohibits the deposit from exceeding $2,000 for
the first day and $400 per day for each
additional day the court estimates the trial will
last. Also provides that failure to post the cash
deposit shall constitute a waiver of a trial by
jury.
New law requires the clerk of court to refund to
the party filing the cash deposit any unexpended
amounts after payment of all jury costs.
New law requires juror compensation to be paid
by the clerk of court out of the funds on deposit
upon completion of this service as a juror.
Provides that if the jury costs exceed the amount
on deposit or if the judge has waived the deposit,
or if a bond was posted, the clerk of court shall
have the right to seek recovery of such amount
immediately from the party or parties cast in
judgment, or from the surety on any bond
furnished for jury costs.
Effective upon signature of governor (June 8,
2007). (Adds R.S. 13:3049.1)
Health Care Quality Improvement
Corporation (Act No. 359)
New law describes a "nonprofit health care
quality improvement corporation" as a
corporation established with the assistance and
participation of the Dept. of Health and
Hospitals which is incorporated under the
Louisiana Nonprofit Corporation Law, is
501(C)(3) tax exempt, and functions as a
statewide public-private partnership working to
improve the quality of health care in Louisiana
through activities such as reporting, research,
collection, and analysis of certain health data
and measures and the evaluation and promotion
of clinical guidelines and criteria.
New law specifies that all standards, guidelines,
or criteria created, developed, or promoted by
such a corporation and all opinions, findings,
conclusions, decisions, or recommendations
made by a corporation shall be strictly voluntary
in nature and may not be used or cited in a civil,
criminal, or administrative proceeding to prove a
legal standard of care, either to support or negate
the liability of a party.
New law provides that the proceedings and
records of the corporation shall be privileged
and confidential and shall not be subject to
production pursuant to a subpoena, order, or
discovery process, or offered or introduced in
evidence in any civil or administrative
proceeding or subject to such in any criminal
proceeding.
New law additionally provides that no director,
officer, employee, staff member, or agent of
such a corporation shall be permitted or
compelled to testify in any judicial or
administrative proceeding or to respond to any
discovery request propounded in the proceeding
regarding any records or actions of a
corporation.
New law provides a limitation of liability for the
corporation for the creation, development, or
revision of any quality improvement work
product or the disclosure of certain information
and a limitation of liability for health care
providers and health plans for voluntarily
reporting or disclosing information to the
corporation.
Effective August 15, 2007. (Adds R.S.
9:2800.20 and R.S. 13:3715.6)
Orders of Appeal (Act No. 82)
New law requires city court judges to sign an
order of appeal within three days and requires
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district court judges to sign an order of appeal
within seven days.
Effective August 15, 2007. (Amends R.S.
13:4207)
Costs to Enjoin a Public Nuisance (Act
No. 238)
New law adds the mayor and the chief of police
of a municipality to the list of enumerated
persons who may petition for an injunction or
order of abatement of a public nuisance without
the payment of any costs.
Effective August 15, 2007. (Amends R.S.
13:4712)
L.A. R.S. TITLE 14: CRIMINAL LAW
DA Need Not Seek Death for First Degree
Murder (Act No. 125)
New law provides the district attorney, in a first
degree murder case, with the option to seek a
capital verdict or to not seek a capital verdict.
Effective August 15, 2007. (Amends R.S.
14:30(C))
Partial Birth Abortions Outlawed (Act
No. 473)
New law prohibits partial birth abortions in light
of recent U. S. Supreme Court ruling.
Effective upon signature of the governor (July
11, 2007). (Adds R.S. 14:32.10 and R.S.
40:1299.35.17; repeals R.S. 14:32.9 and R.S.
40:1299.35.16
Partial Birth Abortion Cause of Action (Act
No. 477)
New law prohibits a physician from performing
a partial birth abortion, except when the partial
birth abortion is necessary to save the life of the
mother whose life is endangered by a physical
disorder, physical illness, or physical injury.
New law prohibits a woman upon whom a
partial birth abortion is performed from being
prosecuted for this offense, as a principal,
accessory or co-conspirator.
New law creates a cause of action for civil
damages for injuries and wrongful death for a
partial birth abortion procedure in favor of (1)
father of the fetus; (2) mother of the fetus, unless
she is of the full age of majority and consented
to the procedure; and (3) parents or guardian of
the mother if she is a minor, unless they
consented to the procedure.
Effective upon signature of governor or lapse of
time for gubernatorial action. (Adds R.S.
14:32.10 and R.S. 40:1299.35.17; Repeals R.S.
14:32.9 and R.S. 40:1299.35.16)
No Betting on Cockfighting (Act No. 223)
New law prohibits gambling and wagering at a
cockfight and related activities.
Effective August 15, 2007. (Adds R.S. 14:90.6)
No Cockfighting (Act No. 425)
New law creates the crime of organizing or
conducting a commercial or private cockfight.
New law prohibits persons from possessing,
training, purchasing, or selling any chicken with
the intent that the chicken engage in an unlawful
cockfight.
New law repeals prior law that fowl were not
considered animals for purposes of the cruelty to
animals statutes, but exempts traditional rural
Mardi Gras parades, processions, and runs
involving chickens from statutes pertaining to
cruelty to animals.
Effective August 15, 2008. (Amends R.S.
14:102.1(C); Adds R.S. 14:102.23; Repeals R.S.
14:102.1(D))
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Illegal Traffic in Sound Recordings (Act
No. 104)
New law provides that any person who, for
commercial gain, knowingly transfers, sells,
distributes, circulates, directly or indirectly, or
possesses for such purposes, any sounds
recorded on any article for a consideration
without the consent of the owner, shall be guilty
of a criminal offense, regardless of when the
sound recording was initially fixed.
Law does not apply to motion pictures or other
audiovisual works.
Effective August 15, 2007. (Amends R.S.
14:223)
L.A. R.S. TITLE 15: CRIMINAL
PROCEDURE
Public Defender Board (Act No. 307)
New law creates the Louisiana Public Defender
Board (LPDB) and provides that the board is a
state agency subject to public records and open
meetings, bid and procurement, and all other
laws applicable to state agencies.
New law provides that except for the inherent
regulatory authority of the Louisiana Supreme
Court, the LPDB shall have all regulatory
authority over all aspects of the delivery of
public defender services throughout the courts of
the state of Louisiana.
New law repeals prior law provisions providing
for the judicial district indigent defender boards.
New law provides for the executive staff of the
board, a maximum of eleven public defender
service regions in the state, and a regional office
in each service region shall provide supervision
over the district offices within that region.
New law provides that any attorney providing
public defender services in a district shall be
licensed to practice law in the state of Louisiana.
New law shall not prohibit an attorney licensed
to practice in another state from defending an
indigent person in a criminal case on a pro-bono
basis.
New law provides that a district public defender
may establish a district public defender advisory
board.
New law provides that in certain cases, the board
shall regionalize and operate the public defender
services of a district as a subdivision of the
board through a regional office.
New law provides that in any district where the
board takes over the operation of indigent
defender services, the district office shall be
maintained for client services in the judicial
district.
New law provides for the creation of the
Louisiana Public Defender Fund and the
composition of the fund, administration of the
fund, and use of monies from the fund.
New law further provides that there is created
within each judicial district an indigent defender
fund which shall be administered by the district
public defender.
New law provides that the board shall provide
notice of a public hearing to the district public
defender, district advisory panel, if applicable,
and the chief judge of the judicial district prior
to changing any delivery model, regionalizing a
district, or terminating or demoting a district
public defender.
Effective August 15, 2007. (Amends R.S.
9:2800.16, R.S. 15:85.1, 146-149.1, 150, 151,
1202, and 1424, R.S. 24:513, 515.1, and 517.1,
R.S. 33:1342, R.S. 36:4 and 801.1, R.S.
39:1302, R.S. 46:236.5, Ch.C. Arts. 321, 607,
608, 740, and 809, and C.Cr.P. Arts. 944, 948,
and 953; Adds R.S. 15:141-143, 149.2, and 152-
184; Repeals R.S. 15:144, 145, 145.1, and
151.2)
Persons Who May Testify Outside the
Courtroom (Act No. 70)
Prior law authorized the taking of testimony
outside of the courtroom in a criminal
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892666v.1
prosecution or a juvenile proceeding from a
"protected person" defined as a person who is
the victim of a crime or a witness in a criminal
prosecution or juvenile proceeding who is either
fourteen years of age or younger or has a
developmental disability. New law amends the
definition of "protected person" to include a
person under the age of seventeen years.
Effective August 15, 2007. (Amends R.S.
15:283(E)(1) and 440.2(C) and Ch.C. Arts.
323(2)(a) and (b) and 324(B))
Payments to Sheriff or Court (Act No. 228)
New law provides that the sheriff or the
executive officer of any court in the state may
accept payment for all fines, forfeitures,
penalties, and costs by means of credit card,
electronic fund transfer, money order, bank
check, teller's check, cashier's check, traveler's
check, electronic fund transfer terminal,
electronic financial terminal, automated banking
device, or similar device or terminal.
New law provides that any sheriff or the
executive officer of the court who accepts
payments by such means shall collect a fee for
processing the payments in an amount that is
reasonably related to the expense incurred in
processing the payment by credit card, or other
means, not to exceed 5% of the amount of taxes
and any penalties or interest being paid. The fee
shall be in addition to the amount of fines,
forfeitures, penalties, or costs imposed.
Effective August 15, 2007. (Adds R.S.
15:571.11(O))
Compensation for Wrongful Imprisonment
Limited (Act No. 262)
New law changes venue for actions for
compensation for wrongful conviction and
imprisonment to the district court in which the
original conviction was obtained, provides that
compensation for the loss of life opportunities
shall not exceed $40,000, and requires any
judgment rendered to be payable only from the
Innocence Compensation Fund.
Effective August 15, 2007. (Amends R.S.
15:572.8)
Authority of Private Prison Guards (Act
No. 241)
New law provides that any correctional facility
employee who is employed by the operator of a
private correctional facility and who has met the
employment and training requirements set forth
in the applicable standards of the American
Corrections Association shall have full authority
to perform his duties and responsibilities under
law, including but not limited to exercising the
use of force in the same manner and to the same
extent as would be authorized if he were
employed by the DPS&C in a similar capacity.
Effective August 15, 2007. (Adds R.S. 15:741-
743)
Expansion of Inmate Exploitation (Act
No. 289)
New law provides that DPS&C shall operate
prison enterprises to provide products and
services not only to state agencies and agencies
of parishes, municipalities, and other political
subdivisions, but now also to public employees,
and no longer need sell at cost.
New law provides that the department may use
inmate labor to maintain production and service
facilities.
Effective August 15, 2007. (Amends R.S.
15:1152, 1153(A)(2), 1154(D) and (E), 1157,
1158, 1159, and 1161(A), (B), and (D); Adds
R.S. 15:1157(A)(3))
Ex-Con Rehabilitation Program (Act No. 176)
New law authorizes the Department of Labor to
establish or to contract with a service provider or
community service organization to establish a
comprehensive post-release skills program for
offenders recently released from the custody of
the Department of Public Safety and
Corrections.
Effective August 15, 2007. (Adds R.S. 15:1193)
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Mandatory Wire Tapping Assistance (Act
No. 132)
New law requires communication providers,
landlords, etc. to assist law enforcement with
wire tapping when requested by law
enforcement.
Effective August 15, 2007. (Amends R.S.
15:1310(D) and 1315(C); adds R.S. 15:1312.1)
L.A. R.S. TITLE 16: DISTRICT
ATTORNEYS
Nothing of particular interest.
L.A. R.S. TITLE 17: EDUCATION
Public School Teacher Qualifications (Act
No. 184)
New law makes various changes to the required
qualifications of public school teachers.
Effective upon signature of governor (June 27,
2007). (Amends R.S. 17:7(6)(b)(i)(cc))
Public School Screening for Dyslexia (Act
No. 217)
New law requires the State Board of Elementary
and Secondary Education (BESE), by the
beginning of the 2007-2008 school year, to
develop and implement a pilot program to
provide for universal screening of students in
grades K-3 for characteristics of dyslexia and
related disorders, subject to appropriation of
funds by the Legislature.
Effective upon signature of the governor (July 2,
2007). (Adds R.S. 17:24.11)
BESE To Develop Arts Curricula (Act
No. 175)
New law requires BESE to develop, adopt, and
provide for the implementation of a visual arts
curriculum and a performing arts curriculum in
public schools.
Effective upon signature of governor (June 27,
2007). (Adds R.S. 17:7(26))
Authority of Recovery School District (Act
No. 207)
New law grants the Recovery School District
(RSD) the same authority and autonomy
afforded to local public school systems under
state law regarding the procurement of services,
including personal, professional, consulting, and
social services; procurement of immovable
property; and the leasing of movable property.
New law provides that the RSD is not required
to use or obtain approval from any state agency,
including the DOA, when procuring data
processing and telecommunications goods or
services; or in the procurement of materials,
supplies, or major repairs; or in the disposition
of property, but requires the RSD to comply
with all other applicable statutory provisions in
Title 39.
New law provides that the RSD is not required
to utilize any selection board, when contracting
for public works, professional services, and
other services, but requires the RSD to comply
with all other applicable statutory provisions in
Title 38.
Effective upon signature of the governor (June
27, 2007). (Adds R.S. 17:1990(B)(1)(c), (d), and
(e))
Tuition Opportunity Program for Students
(Act No. 412)
New law changes the academic standards for
initial eligibility for awards pursuant to the
Tuition Opportunity Program for Students
(TOPS).
Effective upon signature of governor (July 10,
2007). (Amends R.S. 17:3048.1(Q)(5) and
(V)(3); Adds R.S. 17:3048.1(C)(5))
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892666v.1
TOPS Residency Requirements and Related
Laws (Act No. 372)
New law makes various changes to TOPS
residency requirements, residency requirements
for dependents of military personnel, award
eligibility for students who graduate from an
out-of-state high school, and TOPS eligibility
for hurricane-displaced students.
Effective upon signature of the governor (July
10, 2007). (Amends R.S.
17:3048.1(A)(1)(a)(iii)(dd); adds R.S.
17:3048.1(A)(1)(a)(iii)(ee) and (ff))
L.A. R.S. TITLE 18: LOUISIANA
ELECTION CODE
Amendments to Voting Laws (Act No. 240)
New law makes numerous minor and technical
changes to laws regarding voter registration,
election procedures, absentee voting, ballot
inspection, ballot counting, voting machines,
and related matters.
Effective August 15, 2007. (Amends R.S.
18:108(A) and (B), 134(D), 154, 423, 434(A)(1),
435(B), 436, 467(3), 562(A)(2), 563(C), 571,
1253(E), 1275.3(C), 1278(B), 1279, 1306, 1307,
1309, 1310, 1313, 1314, 1333, 1351(13), 1355,
and 1371(B); Adds R.S. 18:423(I); Repeals R.S.
18:572(A)(1)(a)(ii) and (b)(v))
Election Procedures (Act No. 448)
New law makes numerous changes to election
procedures, including: (1) provides that, subject
to certain exceptions, a change of registration
based upon a change of residence within a parish
received after the closing of registration for a
first party primary or special first party primary
becomes effective prior to the second party
primary election or special second party primary
election; (2) provides for the time period for
objecting to candidacy; (3) clarifies that
unaffiliated voters may participate in a
congressional primary election unless the party
prohibits such participation; (4) provides for
notice requirements for parties that choose to
prohibit such participation of unaffiliated voters;
(5) provides procedures and requirements for
reopening the qualifying period for
congressional elections; and (6) clarifies
language relative to qualifying for congressional
second party primary elections and general
elections.
Effective August 15, 2007. (Amends R.S.
18:110(B), 1275.1(A), 1275.11(A) and (B),
1275.14(B), 1275.15, 1275.19, 1275.20,
1355(6), and 1405(A))
Absentee Voting for Elderly and Disabled
(Act No. 124)
New law provides that a person who is 65 or
older may vote absentee by mail. New law also
provides that a person who is physically disabled
may submit his mobility impaired identification
card issued by OMV to the registrar of voters to
vote absentee by mail.
Effective August 15, 2007. (Adds R.S.
18:1303(I) and (J) and 1307(G))
Candidates' Self-Contributions (Act No. 144)
New law amends the Campaign Finance
Disclosure Act by providing that a contribution
by a candidate for an office other than a major or
district office for his own campaign shall not be
considered in determining whether the candidate
has received a sufficient contribution to subject
the candidate to campaign finance reporting
requirements.
New law amends Campaign Finance Disclosure
Act to provide that a contribution by a candidate
for other than a major or district office does not
count toward the $200 threshold that triggers
reporting requirements.
Effective upon signature of governor (June 25,
2007). (Amends R.S. 18:1484(2))
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892666v.1
L.A. R.S. TITLE 19: EXPROPRIATION
Private Expropriation for CO2 Pipelines (Act
No. 428)
Existing law authorizes private companies to
expropriate property for pipelines to transport
carbon dioxide for use in oil and gas recovery
projects only if the recovery project is approved
by the commissioner of conservation and a
certificate of public convenience and necessity
for the pipeline has been issued.
New law specifies that the project need not be
located in La., provides that if the recovery
project is in another state, the commissioner's
approval consists of confirmation that the
applicable regulatory authority has approved the
recovery project, and specifies that property
subject to such expropriation must be located in
this state.
Effective upon signature of governor (July 11,
2007). (Amends R.S. 19:2(10) and R.S.
30:4(C)(17))
Limitations on Waiver of Right to Contest
Expropriation (Act No. 362)
Existing law provides for the waiver of a
property owner's right to contest the necessity of
expropriation and just compensation prior to the
taking, when the property was possessed in good
faith by the expropriating authority.
New law provides that the provisions of existing
law shall apply only to privately owned
immovable property over which the state or its
political corporation or subdivision has both
exercised actual possession in good faith for 10
years and completed construction of facilities
upon, under, or over such property.
New law provides that the provisions of existing
law shall not be deemed to authorize the
acquisition of any interest in privately owned
immovable property adjoining such facilities,
including but not limited to a servitude, right of
use, or any right of passage across or access to
the private immovable property adjoining such
facilities.
New law is interpretative and is intended to
clarify existing law.
Effective August 15, 2007. (Amends R.S. 19:14)
L.A. R.S. TITLE 20: HOMESTEADS AND
EXEMPTIONS
Nothing of particular interest.
L.A. R.S. TITLE 21: HOTELS AND
LODGING HOUSES
Nothing of particular interest.
L.A. R.S. TITLE 22: INSURANCE
Effects of Fire Insurance Fraud on Others
(Act No. 156)
New law provides that the actions or fault of a
named insured that is determined to be the cause
of a loss by fire to the insured property shall not
be imputed to any other insured such that the
innocent insured would be deprived of coverage
provided by the policy. New law specifies that in
case of arson, the policy proceeds may only be
reduced by the proper interest attributable to the
arsonist. New law requires that, in the case of
multiple named insureds, an innocent insured
shall receive his proportionate share of the
policy proceeds.
New law provides that if a court determines that
a policy of fire insurance may be voidable for
breach of any material representation, warranty,
or condition, such judicial determination shall
only apply to the claim that is the subject of the
litigation and shall not apply retroactively to any
prior claim submitted by any insured.
Effective upon signature of governor (June 25,
2007). (Amends R.S. 22:615 and 692.1)
Two Years to Sue Insurers (Act No. 43)
New law provides that no insurance policy shall
contain a provision limiting the right of action
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892666v.1
against an insurer to less than 24 months after
the inception of the loss when the claim arises
under a policy of fire and extended coverage,
steam boiler and sprinkler leakage, crop and
livestock, inland marine insurance, burglary and
forgery, glass, and homeowners' insurance.
New law provides that no suit for recovery that
is based on the standard fire insurance policy
shall be sustainable in a court of law unless
commenced within 24 months after the inception
of the loss.
New law also makes technical changes.
(Amends R.S. 22:629(B) and 691(F))
Homeowner Policy Cancellation (Act No. 381)
Prior law prohibited a homeowner insurer from
cancelling, failing to renew, or increasing a
policy deductible that has been in effect and
renewed for more than three years unless based
on nonpayment of premium, fraud of the
insured, a material change in the risk being
insured, two or more claims within a period of
three years, or if continuation of such policy
endangers the solvency of the insurer, unless the
insurer ceases writing homeowner's insurance or
the policy deductibles are increased for all
homeowners' policies in the state.
New law provides that the phrase "two or more
claims within a period of three years" does not
include any loss incurred or arising from an "Act
of God" incident which is due directly to forces
of nature and exclusively without human
intervention.
Effective upon signature of the governor (July
10, 2007). (Amends R.S. 22:635.3(C) and
636.2(D))
Homeowner Policies (Act No. 449)
New law provides that in the gubernatorially
declared disaster areas for Hurricane Katrina or
Rita, any insurance company that issues a
homeowner's policy which includes personal
property coverage in the coastal parishes of the
state must, upon written request of the
policyholder, offer one of the following options:
(1) a residential property policy that provides
dwelling coverage without personal property
coverage beginning July 20, 2007, or (2) an
exclusion of personal property coverage that is
accompanied by an appropriate reduction in
premium beginning Jan. 1, 2008.
New law provides that a substitute policy or an
exclusion of personal property coverage during
the existence of the policy shall not be
considered a new policy.
New law is only applicable to homeowners'
insurance policies written on structures that have
been rendered unhabitable by Hurricanes
Katrina or Rita because of more than 50%
damage to the dwelling area. Also, new law
authorizes an insurer to withdraw the exclusion
or substitute policy when the structure is
repaired to the point that it is habitable or the
homeowners' policy has been terminated.
The option to select a residential property policy
that provides dwelling coverage without
personal property coverage shall become
effective on July 20, 2007. The option to
exclude personal property coverage shall
become effective on signature by the governor
but shall only apply to policies issued or in
existence on or after Jan. 1, 2008.
Effective upon signature of governor (July 11,
2007). (Adds R.S. 22:667.1)
Group Health Plan Requirements (Act
No. 80)
Prior law provided that the minimum aggregate
stop-loss limit for a group health plan shall be
120% of the group health plan's total expected
claims per policy period. New law decreases the
minimum aggregate stop-loss limit for groups of
51 or more to 110% of the group health plan's
total expected claims per policy period.
Effective August 15, 2007. (Amends R.S.
22:675(C)(3))
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892666v.1
Rental Car Insurance (Act No. 354)
New law provides that automobile collision and
liability insurance coverage shall extend to
rental motor vehicles (rather than rental private
passenger automobiles) and to temporary
substitute motor vehicles on a primary basis
unless other automobile insurance coverage is
purchased by the insured for that vehicle.
New law requires rental car companies to
maintain mandatory minimum insurance on their
vehicles, but such insurance shall apply only
when there is no other valid or collectible
insurance meeting the minimum financial
responsibility requirement. New law further
provides that such financial responsibility
protection for third party liability claims against
renters and drivers applies only if the renter or
driver is not in violation of the rental agreement,
if the renter or driver is not otherwise insured to
satisfy the minimum financial responsibility
laws, and if the third party claimant does not
have uninsured or underinsured motorist
coverage.
New law provides that it shall not be construed
to (1) limit a rental car company from providing
by contract that the renter or driver shall assume
responsibility for all claims if the renter or driver
is already insured; (2) prohibit a rental car
company from pursuing the renter or driver for
indemnity or contribution or both; (3) obligate a
rental car company to defend renters or drivers;
or (4) subject a rental car company to existing
law relative to direct action, prompt payment,
adjustment of claims, or bad faith.
New law provides that if a rental car company
provides minimum financial responsibility for
third party claims against renters and drivers, it
shall not be required to extend uninsured or
underinsured motorist coverage.
Effective August 15, 2007. (Amends R.S.
22:681)
Domestic Insurers May Invest in LLCs (Act
No. 294)
New law authorizes domestic insurers to invest
in, acquire debt obligations of, or otherwise
acquire an interest in any limited liability
company which is formed pursuant to the laws
of any state or the U. S. and which invests in
assets otherwise permitted under existing law,
but retains limitations on any such interests or
debt obligations contained in existing law.
Effective August 15, 2007. (Amends R.S.
22:844(D)(3))
Lower Premiums for Good Construction (Act
No. 323)
New law requires any insurer required to submit
rates and rating plans to the office of property
and casualty to provide an actuarially justified
adjustment to reduce the insurance premium to
insureds who:
1. Build or retrofit a structure to comply
with the State Uniform Construction Code; or
2. Install mitigation improvements or
retrofit their property utilizing construction
techniques, demonstrated to reduce the amount
of loss from a windstorm or hurricane.
Effective upon signature of governor (July 9,
2007). (Adds R.S. 22:1426)
Natural Losses Don't Count for
Insurance Rating (Act No. 459)
New law abolishes the Louisiana Insurance
Rating Commission (LIRC) and transfers its
powers, duties, and functions and those of the
office of property and casualty to the
commissioner of insurance.
New law provides that for all lines of insurance,
each application for a rate change is to be on file
with the commissioner of insurance, and unless
disapproved in writing within that 45 days, the
application is deemed approved. New law
provides that insurers, except with regard to
workers' compensation and medical malpractice
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892666v.1
insurance, with not less than $10,000 in annual
premiums are required to file insurance rates
with the commissioner for informational
purposes only. New law provides that a
competitive market for a line of insurance is
presumed to exist unless the commissioner, after
notice and hearing, rules that a reasonable
degree of competition does not exist. New law
specifies the factors to be considered by the
commissioner in making this determination; and
requires that the ruling identify those factors that
have caused the market to be noncompetitive
and the actions to be undertaken to return
competition to the market. New law provides
that any such ruling expire in one year unless
rescinded or renewed; requires a hearing for
renewal of a ruling.
New law requires the commissioner to regularly
monitor the degree and existence of competition
in this state.
New law provides that rates shall not be
inadequate or unfairly discriminatory in a
competitive market and not excessive,
inadequate, or unfairly discriminatory in a
noncompetitive market.
New law deletes prior law allowing for
informational filings to be made by rating
organizations. New law authorizes an insurer to
make a rate filing either by filing its final rates
or by filing a loss cost multiplier and, if
applicable, an expense constant adjustment to be
applied to prospective loss costs that have been
filed by an advisory organization on behalf of an
insurer.
New law deletes prior law allowing the LIRC to
suspend or modify filing requirements for rates
which could not practicably be filed before they
are used.
New law provides that rates and supporting
information filed shall be open to public
inspection upon expiration of the 45-day period
or upon disapproval, except for information
deemed confidential, trade secret, or proprietary.
New law authorizes the commissioner to
disapprove a rate in a competitive market only if
he determines that the rate is inadequate or
unfairly discriminatory.
New law authorizes the commissioner to
disapprove a rate in a noncompetitive market
only if he determines that the rate is excessive,
inadequate, or unfairly discriminatory.
New law provides that any insurer whose rate
filing is returned as incomplete more than once
or not acted upon within 45 days from the date
of receipt by the commissioner shall be given a
hearing upon written request made within 30
days of the return of the rate filing, disapproval
of the rate filing, or inaction of the
commissioner. New law requires the
commissioner to issue an order if he disapproves
the rate or rate change within 30 days of the
hearing and to specify his reasons.
New law specifies that all appeal hearings shall
be public, and that any appeals from the
commissioner's decision to disapprove shall be
to the 19th Judicial District Court.
Effective January 1, 2008. (Amends R.S.
22:1382, 1401, 1402, 1404, 1404.1, 1404.2,
1405, 1407, 1408, 1411, 1416, 1417, 1422,
1422.1, 1430.5, 1430.11, 1430.14, 1441.7,
1441.10, 1441.21, and 2092.5.1, and R.S. 44:4;
Adds R.S. 22:15(C)(22), 1402.1, 1402.2, and
1402.3; Repeals R.S. 22:15(C)(8), (E)(16),
(F)(7), and (G)(7), 1401.1, 1405, 1406, 1410(B),
1418, and 1450.3 and R.S. 36:686(C)(1))
Assessments by La. Citizens Property Ins.
Corp. (Act No. 235)
New law, relative to the La. Citizens Property
Insurance Corporation, no longer authorizes the
board of directors to adopt credit schedules for
essential property insurance voluntarily written
in the coastal areas or elsewhere in the state, nor
provides that participation by assessable insurers
in the writings of the Coastal and FAIR plans
could be reduced in accordance with such credit
schedules.
New law provides that if, during the term of a
policy of insurance upon which an emergency or
regular assessment is applied, such an insured or
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892666v.1
insurer cancels, endorses, or makes changes to
the policy of insurance which result in an
increase or decrease in the premium, such
assessment shall be adjusted such that the
insured or insurer shall either owe or be owed
payment in an amount computed on a pro rata
basis for the term of the policy.
Effective January 1, 2008. (Adds R.S.
22:1430.10(E); Repeals R.S. 22:1430.8(B) and
1430.9(B))
Assignment of Policies by La. Citizens
Property Ins. Corp. (Act No. 377)
New law requires that the La. Citizens Property
Insurance Corporation (Citizens), not less than
once per calendar year, offer its in-force policies
for removal to the voluntary market. New law
requires that these policies be bundled in groups
of not less than 500 policies and include certain
types of policies.
New law authorizes every insurer authorized to
write property insurance in the state to submit a
take-out plan to Citizens for the bundled policies
and requires that Citizens then submit the take-
out plan to the Department of Insurance (DOI)
for review and approval based on specified
criteria.
New law provides that if a take-out plan is
approved by the department then Citizens shall
submit it to its board of directors and the La.
Insurance Guaranty Association for approval.
New law is not to be construed to impair the
right of any Citizens policyholder to retain
Citizens as their insurer.
Effective November 1, 2007. (Adds R.S.
22:1430.23)
Residential Property Insurance Rates of La.
Citizens Property Ins. Corp. (Act No. 420)
New law provides that until August 15, 2010,
La. Citizens Property Insurance Corporation
(Citizens) must charge the higher of the
actuarially sound rates or the rates equal to the
highest of the top 10 insurers with the greatest
total direct written premium for residential
property insurance in any noncompetitive
market until competition resumes.
New law provides that if the commissioner of
insurance is informed that Citizens is writing
more than 50% of the residential property
insurance business in a market, he must
determine if a reasonable degree of competition
exists in that market. If the commissioner finds
that a competitive market does not exist,
Citizens shall use such findings in determining
the application of its noncompetitive rating
structure to residential property insurance
policies in the noncompetitive market. New law
also establishes the factors that the
commissioner should consider in determining if
a reasonable degree of competition exists in a
particular line of insurance.
Effective August 15, 2007. (Adds R.S.
22:1405(K) and 1430.12(D))
La. Citizens Property Ins. Corp. and
Adjusters (Act No. 468)
New law requires that, when La. Citizens
Property Insurance Corporation (Citizens) is
contracting with adjusters to adjust claims, it
shall give a preference to adjusters and adjusting
companies who are domiciled in Louisiana for a
period of not less than five years, if the adjusting
of such claims is subject to a fee schedule or
other fixed fee arrangement.
Requires each service provider for Citizens to
provide monthly reports to Citizens that include
the names of the adjusting companies, domiciled
in Louisiana for five years, whose services are
being used as well as the number of claims
provided to these companies.
Effective August 15, 2007. (Adds R. S.
22:1405(K) and 1430.23)
Insurers Required To Be More Responsive
(Act No. 222)
New law clarifies in the policyholder bill of
rights that if a claim is denied, the policyholder
has the right to written explanation as to the
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892666v.1
reason for the denial, in whole or in part, of any
claim made under the insurance policy. New
policy adds provisions in the bill of rights that
the policyholder, as to property damage claims,
has a right to receive any estimates, bids, plans,
measurements, and drawings prepared by or for
the insurer, but allows the company to keep
confidential any adjustor notes, logs, or
documents prepared in conjunction with a fraud
investigation.
New law provides that a policyholder has a right
to a readable policy, to receive a complete
property insurance policy, and to request a
duplicate or replacement policy as needed.
New law requires an insurer of a residential or
commercial property to respond to all inquiries
or requests from the insured within fourteen
days of the inquiry or request, unless such time
period to respond has been extended by the
commissioner of insurance because of a declared
disaster or emergency, and requires prompt
adjustments by a qualified adjuster under the
Louisiana Claims Adjuster Act. Provides that
violations of new law that are committed or
performed with such frequency as to indicate a
general business practice shall subject the
insurer to Unfair Trade Practices Act of the
Insurance Code.
Effective upon signature of the governor (July 2,
2007). (Amends R.S. 36:681(C)(1); adds R.S.
36:696 and R.S. 22:1455 and 1476)
Insure La. Incentive Program (Act No. 447)
New law creates the Insure La. Incentive
Program and provides that its purpose is to
foster economic development and stability by
encouraging additional insurers to participate in
the voluntary property insurance market. The
commissioner of insurance is authorized to
implement public-private partnerships executed
through cooperative endeavors with authorized
insurers which may include matching capital
fund grants.
New law provides that the commissioner of
insurance may grant matching capital funds to
qualified property insurers, including approved
unauthorized insurers, from the fund.
New law establishes criteria for insurers
applying for matching capital fund grants.
New law establishes a residential property
insurance tax credit of 7% of the premiums for a
homeowner's insurance policy, condominium
owners' insurance policy, or a tenant
homeowners' insurance policy paid by the
individual during the tax year for the primary
residence of the individual, less the amount for
which a credit is granted pursuant to a tax credit
for the Citizens' assessment.
Parts of new law will become effective on Dec.
1, 2007; other parts on July 1, 2008.
Effective upon signature of governor (July 11,
2007). (Adds R.S. 22:3301-3311 and R.S.
47:297.7)
L.A. R.S. TITLE 23: LABOR AND
WORKERS' COMPENSATION
Group Self-Insurance Funds for Workers'
Compensation (Act No. 384)
New law, relative to group self-insurance funds
for workers' compensation, defines public
entities to include a parish, municipality, and
any other unit of local government, including a
school board and a special district authorized by
law to perform governmental functions, but
specifically excludes hospital service districts
and health care facilities established by local
governing authorities.
New law provides that a self-insurer's fund must
maintain at least $2,000,000 in premiums in the
fund per year.
New law requires that a qualifying trade or
professional association, for a period of five
years prior to application as a group self-
insurance fund, must have held regular meetings
of its board on no less than an annual basis and
must have produced a newsletter on no less than
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892666v.1
an annual basis that was mailed to each
association member.
New law provides that an application as a group
self-insurance fund must contain copies of
acceptable excess insurance or reinsurance
which must be approved by the Department of
Insurance (DOI) prior to use and that there must
be a bond covering each third party
administrator of the fund. If the fund employs its
own administrator, then it is required to
purchase a bond, errors and omissions insurance,
directors and officers insurance, and other
security approved by DOI for the administrator
of such funds.
New law requires that during the second and
subsequent fund years, the fund must deposit
and pledge $250,000 in money or bonds of the
United States, the state, or any political
subdivision thereof, of the par value of $250,000
or post a surety bond in the amount of $250,000,
to secure fund obligations under new law.
New law provides for audits by independent
payroll audit firm or by the fund without
approval by the department. New law clarifies
that the audits of member employers must be
conducted by payroll auditors.
New law provides that a fund with three years of
consecutive net losses on the audited financial
statements of the fund, or two years of
consecutive net losses on the audited financial
statements of the fund in excess of $500,000 or
5% of the premium of the latest audited financial
statement, whichever is greater, shall take
specified actions to communicate with DOI, plan
for the future, and obtain an actuarial rate
analysis.
New law requires that in the event a fund
becomes insolvent, the fund shall submit a plan
to DOI which shall notify the fund of the plan
approval or disapproval within 30 days.
Effective August 15, 2007. (Amends R.S.
23:1195 and 1196; adds R.S. 23:1191, 1200.4,
and 1200.5
Workers' Compensation Second Injuries (Act
No. 332)
New law regarding workers' compensation
second injuries changes time period, previously
July 1, 2004 to July 1, 2007, to July 1, 2007 to
July 1, 2009, for numerous complex provisions.
New law provides that the Second Injury Fund
reimburse or credit an employer or creditor for
attorney fees paid that have been reviewed and
approved by a workers' compensation judge.
New law provides that upon the board's approval
of a claim for reimbursement, the insurer no
longer need report annually the estimated future
medical and indemnity liability to the injured
employee.
Effective upon signature of governor (July 9,
2007). (Amends R.S. 23:1378)
Electronic Filing of Contribution and Wage
Reports by Employers (Act No. 89)
New law requires all employers to file
contribution and wage reports with the
Department of Labor electronically, beginning
on dates dependent on the number of employees.
Hardship waivers may be granted.
Effective upon signature of governor ( June 22,
2007). (Amends R.S. 23:1541(4); Adds R.S.
23:1531.1)
Deferment of Government and Nonprofit
Unemployment Taxes (Act No. 288)
New law defers, without penalty and interest,
until July 1, 2008, any unemployment benefit
reimbursement owed by the state and local
governments and eligible nonprofit
organizations as a result of Hurricanes Katrina
and Rita as well as pursuant to executive orders
issued by the governor after the storms.
New law authorizes the administrator to
negotiate payment terms for benefit charges to
be paid quarterly, without penalty and interest,
for a period not to exceed two years, beginning
July 1, 2008.
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892666v.1
Effective upon signature of governor (July 9,
2007). (Amends R.S. 23:1552(B)(6) and (7))
Incumbent Worker Training Program (Act
No. 59)
New law changes the eligibility criteria for
businesses within the state.
New law makes various changes regarding
training, the Employee Security Administration
Account, and other details of the program.
Effective August 15, 2007. (Amends R.S.
23:1514 and 1553; Adds R.S. 23:1553(G);
Repeals R.S. 23:1553(B)(12))
Lost Wage Benefits Act for Domestic
Violence Victims (Act No. 421)
New law permits government benefits for a
victim if the employee establishes that the
employee left work as a result of domestic
violence and remains separated from the
situation.
New law provides that individual employers
shall not be charged with the benefits for
employees who fall under the provisions of new
law. The benefits shall be charged to the state's
general fund.
New law requires the administrator to cease in
granting benefits if the amount of benefits paid
and the administrative cost exceed the monies
available.
New law prohibits the charging of these benefits
to the experience-rating account of an employer
or to the Unemployment Compensation Fund.
New law shall become ineffective on July 1,
2010.
Effective August 15, 2007. (Adds R.S. 23:1770-
1775)
L.A. R.S. TITLE 24: LEGISLATURE AND
LAWS
Nothing of particular interest.
L.A. R.S. TITLE 25: LIBRARIES,
MUSEUMS, AND OTHER SCIENTIFIC
AND CULTURAL FACILITIES
Nothing of particular interest.
L.A. R.S. TITLE 26: LIQUORS –
ALCOHOLIC BEVERAGES
Nothing of particular interest.
L.A. R.S. TITLE 27: LOUISIANA GAMING
CONTROL LAW
Non-Gaming Supplier Permits (Act No. 292)
Prior law required the issuance of a non-gaming
supplier permit to suitable persons who furnish
services or goods and receive compensation or
remuneration therefor in excess of $100,000 per
calendar year, to the holder of a riverboat
gaming license, or slot machine gaming at live
racing facility license, or to the casino gaming
operator. New law increases the amount from
$100,000 to $200,000.
New law provides that any person who, directly
or indirectly, furnishes services or goods to the
holder of a riverboat gaming license, to slots at
track facility license or to the casino gaming
operator, or who has a business association with
the holder of such a license or the casino
operator, may be required by the board or
division, when applicable, to be found suitable
or apply for a non-gaming supplier permit.
Effective August 15, 2007. (Amends R.S.
27:29.3(A))
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892666v.1
Calcasieu Riverboat Admission Fees (Act
No. 171)
New law authorizes the governing authority of
Calcasieu Parish to levy an additional admission
fee of $0.50 for each passenger boarding or
embarking upon a riverboat.
Effective August 15, 2007. (Amends R.S.
27:93(A)(6)(intro para); adds R.S. 27:93(A)(10))
Baton Rouge Riverboat Gaming Fees (Act
No. 236)
New law provides that in East Baton Rouge
Parish, in lieu of the admission fee authorized by
existing law, the governing authority of the
location of the berthing facility may levy a fee
not to exceed 4.5% of the monthly net gaming
proceeds from each riverboat located within the
jurisdiction of that governing authority.
New law provides that the amount of the fee
shall be established by contract between the
governing authority and the riverboat licensee.
Effective August 15, 2007. (Adds R.S.
27:93(A)(10))
Video Draw Poker Devices (Act No. 443)
New law provides that a video draw poker
device may not allow more than $4 to be placed
on a game, award games, or credits in excess of
the value of $1,000.
Effective October 15, 2007. (Amends R.S.
27:304)
Truck Stop Facility Location (Act No. 338)
New law changes the laws relating to the
permissible locations of truck stop facilities
having video draw poker devices, seemingly
increasing the required distance from historic
buildings, public playgrounds, churches,
synagogues, public libraries, and schools from
500 to 2,500 feet.
Effective August 15, 2007. (Amends R.S.
27:306(C))
Video Draw Poker Device Franchise Fees
(Act No. 469)
New law changes the manner of calculation of
the franchise fee to be remitted by video draw
poker device owners at pari-mutuel wagering
facilities.
Effective July 1, 2008. (Amends R.S.
27:311(D)(2))
L.A. R.S. TITLE 28: MENTAL HEALTH
Nothing of particular interest.
L.A. R.S. TITLE 29: MILITARY, NAVAL,
AND VETERANS' AFFAIRS
Louisiana Military Authority and Courts-
Martial (Act No. 309)
New law clarifies that the governor may, with or
without a declaration of emergency, order any
part of the National Guard, State Guard, or
militia into active service for various missions.
New law provides that the military forces of the
state may be called into service to assist civil
authorities in Louisiana or to provide support to
other states under an Emergency Management
Assistance Compact.
New law provides that the adjutant general may
order into the active service of the state any
member or unit of the National Guard or State
Guard for nonemergency purposes which are
necessary and attendant to the mission of the
state Military Department.
New law provides that the Military Department
may establish and maintain the Louisiana
Military Police for the purpose of conducting
law enforcement missions necessary to the
mission of the Military Department. The
Louisiana Military Police will be recognized as a
law enforcement agency of the state.
New law provides that when any person subject
to the Louisiana Code of Military Justice is
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892666v.1
placed in arrest or confinement prior to trial,
within twenty-four hours of arrest or
confinement, the accused shall be informed of
the specific wrong of which he is accused and
appointed military defense counsel and that
arrest or confinement prior to trial shall not
exceed 72 hours unless approved by a military
judge.
New law provides that a special court-martial
shall consist of a military judge and not less than
six panel members or only a military judge, if
the accused knowingly waives his right to a
panel.
New law changes the various punishments that
may be imposed by different types of courts-
martial.
New law excludes summary courts-martial from
appellate jurisdiction. New law makes various
changes to appellate procedures.
New law provides that an accused shall have the
right to appointed military defense counsel as
appellate counsel.
Effective July 1, 2007. (Amends R.S. 29:1, 5, 7,
7.1, 26, 28.1, 110, 115, 116, 118, 119, 120, 122,
158, 161, 165, 166, 170, 171, 173, 174, and 175;
Adds R.S. 29:7.1(C))
La. Family Recovery Corps (Act No. 313)
New law, for purposes of the state recovery from
emergencies and disasters, authorizes the use of
the nongovernmental nonprofit organization
known as the La. Family Recovery Corps to
provide and coordinate the services needed by
La. citizens displaced and affected by those
disasters.
Effective August 15, 2007. (Adds R.S. 29:726.1)
L.A. R.S. TITLE 30: MINERALS, OIL,
AND GAS AND ENVIRONMENTAL
QUALITY
Underwater Obstruction Removal Fund (Act
No. 167)
New law changes the termination date of the
Underwater Obstruction Removal Fund, and of
certain funding of same, from after 6/30/07, to
after 6/30/12.
Effective June 29, 2007. (Amends R.S.
30:101.11 and R.S. 56:700.2(A)(4))
State Mineral Leases (Act No. 451)
New law specifies that a prospective leaseholder
of a mineral lease on state lands must be
registered and in good standing with the La.
secretary of state.
New law provides that if the office of mineral
resources notes that a current record lessee is not
properly registered, the office is to notify the
record lessee. If the record lessee is not
registered within 30 days, the State Mineral
Board may levy liquidated damages in the
amount of $100/day until the record lessee is
properly registered with the office.
New law requires any bidder who was not
registered at the time of the bid opening, but
who submitted an otherwise acceptable bid, to
register within two business days of the bid
opening, or the bid will be rejected.
New law authorizes the state to assign a trust to
the co-owners, thereby relieving the state of
responsibility, at any time after July 1, 2007,
regardless of the number of co-owners.
Effective August 15, 2007. (Amends R.S.
30:125(B), 127(A)(intro. para.), and 188(D))
Odor Control (Act No. 340)
New law authorizes municipalities and parish
governing authorities to enact ordinances that
prohibit a person from causing or allowing the
emission of odorous air contaminants detectible
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892666v.1
after dilution with 7 or more volumes of odor
free air in a residential or commercial area, or
after dilution with 15 or more volumes of odor
free air in other land use areas.
Effective upon signature of governor or lapse of
time for gubernatorial action. (Adds R.S.
30:2055.2)
Trash Trucks Must Be Covered (Act No. 233)
Existing law provides that intentional and simple
littering prohibitions shall not apply in the
course of collecting and transporting solid
wastes by duly licensed commercial vehicles.
New law limits the exception to vehicles that are
covered to prevent rain from reaching the waste
and waste from falling or blowing from the
vehicle and to ensure leachate is not discharged.
Effective August 15, 2007. (Amends R.S.
30:2531(I))
L.A. R.S. TITLE 31: MINERAL CODE
Nothing of particular interest.
L.A. R.S. TITLE 32: MOTOR VEHICLES
AND TRAFFIC REGULATION
Driver's Licenses (Act No. 127)
New law requires an unlicensed minor to be at
least 14 years old to drive with a licensed parent
or guardian who is providing driving instruction
to the minor child, provided the minor is not
driving on a public street, road or highway.
New law provides that no driver's license is
required by a person who operates farm
equipment on the shoulder of a highway,
provided that the person is at least 12 years of
age and the operation of such equipment is in
compliance with prior law.
Effective upon signature of the governor (June
25, 2007). (Amends R.S. 32:298, 402, 416, and
417)
Motor Vehicle Sales (Act No. 446)
New law adds to the definition of "used motor
vehicle salesperson" anyone who is actively
engaged in the sale of used motor vehicle or
recreational products.
New law adds to the commission's powers and
duties to include mandatory repurchase disputes;
revocation or suspension of licenses;
receivership of certificates of title from a used
motor vehicle dealer or a recreational products
dealer who has failed or refused to provide a
certificate of title to their customer; issuing,
serving, and enforcing subpoena or subpoena
duces tecum after having a hearing or lawful
investigation into suspected misconduct of a
licensee; and regulating recreational products
trade shows.
New law changes the grounds upon which the
commission may deny an application for a
license as a motor vehicle dealer or salesperson.
New law authorizes the commission to revoke or
suspend a license, issue a fine or penalty, or
enjoin a used motor vehicle dealer or
salesperson for any of numerous grounds.
New law provides that the commission may
revoke or suspend a license, issue a fine or
penalty, or enjoin a used motor vehicle broker
for any of various grounds.
New law provides that the commission shall not
deny an application for a used motor vehicle
dealership based upon consideration of an
existing or anticipated economic or competitive
effect on other licenses in the surrounding
community or territory.
New law prohibits the conduct of any business
which sells, offers for sale, or leases recreational
products without licensure.
New law provides that no person shall conduct
the business of a manufacturer, distributor, or
manufacturer's sales representative who sells or
offers to sell recreational products through a
recreational products dealer in this state without
being licensed by the commission.
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892666v.1
New law provides that no person conduct the
business of recreational products trade shows,
including promoters and nonresident exhibitors
of trade shows, without being licensed by the
commission.
New law provides that it is unlawful for any
person to engage in business as a manufacturer
or distributor of any recreational product sold by
either a recreational products dealer in this state
or by the manufacturer or distributor selling into
the state.
New law provides that manufacturers,
distributors, and their sales representatives be
exempt from the educational seminar. New law
further requires the owner or operator of a
salvage pool to collect and transmit to the
commission a $5 transaction fee per vehicle sold
in the event a bid card is not required to
purchase a vehicle.
Effective August 15, 2007. (Amends R.S.
32:781(33), 783(F)(6) and (8), 784, 792, and
811(K)(1); Adds R.S. 32:783(F)(9) and (10),
808(F) and 811(L))
Motor Vehicle Commission Licensee Liability
(Act No. 27)
New law provides licensees, motor vehicle
dealers, used motor vehicle facilities licensed by
the commission, and satellite warranty and
repair centers shall have the option of having
liability protection provided by a liability trust
fund.
New law provides that pursuant to a written and
signed sale conditioned on financing, the
purchaser shall be responsible for any and all
damages to the vehicle or other vehicles
damaged by the fault of the purchaser and any
and all liability incurred by the purchaser during
the purchaser's custody of the vehicle to the
extent provided for in present law.
New law provides that it is interpretive and shall
apply to any liability trust fund arrangement
covered by the provisions of the new law which
is in existence on or prior to the effective date of
proposed law.
Effective upon signature of governor or lapse of
time for gubernatorial action. (Amends R.S.
32:1254 and 1261(2)(f)(iii))
Vehicle Protection Products (Act No. 388)
New law requires any person who is operating
as a warrantor of a vehicle protection product
must be licensed by the La. Motor Vehicle
Commission, must annually file certain
registration records with the department, and
must meet one of several financial responsibility
conditions.
New law provides that warranty reimbursement
insurance policies which are issued, sold, or
offered for sale must meet a number of
conditions.
New law requires that every vehicle protection
product warranty sold or offered for sale must
clearly make certain disclosure statements.
New law prohibits a person who issues a vehicle
protection product from utilizing certain words
or phrases in its written documents, unless such
person is also licensed as an insurance company.
New law requires all vehicle protection product
warrantors to keep accurate accounts, books, and
records regarding all transactions conducted
pursuant to new law.
New law will apply to all vehicle protection
products sold or offered for sale on or after
9/1/08.
Effective January 1, 2008. (Adds R.S. 32:1271-
1282)
Front-Viewing Car Cameras (Act No. 45)
New law authorizes use of visual display
technology for the area immediately in front of a
motor vehicle.
Effective upon signature of governor (June 18,
2007). (Amends R.S. 32:365(A)(2)(d))
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892666v.1
Authorized Blood-Drawers (Act No. 96)
New law adds physician assistants, emergency
medical technicians, and nurse practitioners to
those authorized to draw blood for the purpose
of determining the alcoholic content of the blood
or the presence of a controlled dangerous
substance.
Effective August 15, 2007. (Amends R.S.
32:664(A) and (B))
Migrant Farm-Workers Can Drive Sooner
(Act No. 112)
New law provides that in order to be eligible for
a driver's license, a citizen of another country
who is employed in the agricultural industry
must be legally authorized to be in the U.S. for
at least 60 days (as opposed to the usual 180
days).
Effective August 15, 2007. (Amends R.S.
32:409.1)
Protection for Retail Motor Vehicle Dealers
(Act No. 170)
New law prohibits a manufacturer, distributor, a
wholesaler, distributor branch, factory branch,
converter or officer, agent or other
representative to coerce or attempt to coerce any
retail motor vehicle dealer or prospective retail
motor vehicle dealer to:
1. Offer to sell or sell any extended service
contract or extended maintenance plan, or gap
product offered, sold, back by, or sponsored by
the manufacturer or distributor or affiliate.
2. Sell, assign, or transfer any retail
installment sales contract or lease obtained by
the dealer in connection with the sale or lease by
him of motor vehicles manufactured or sold by
the manufacturer or distributor, to a specified
finance or class of finance companies, leasing
company or class of leasing companies, or to
any other specified persons.
New law specifies numerous actions that will
constitute coercion or attempted coercion.
New law will not prohibit a manufacturer or
distributor from offering or providing incentive
benefits or bonus programs to a retail motor
vehicle dealer or prospective retail motor vehicle
dealer who voluntarily chooses to offer such
products.
Effective upon signature of the governor (June
27, 2007). (Adds R.S. 32:1261(1)(w))
Salvage Car Sales Open to All (Act No. 257)
New law repeals requirement that the sales of
motor vehicles at a salvage pool, salvage
disposal sale, or through an insurance company
be opened only to persons possessing a
Louisiana buyer's ID card.
Effective August 15, 2007. (Amends R.S.
32:808(E)(1); and repeals R.S. 32:808(A) - (D)
and 809)
L.A. R.S. TITLE 33: MUNICIPALITIES
AND PARISHES
Government Investment in BIDCOs (Act
No. 159)
New law authorizes any parish, municipality,
school board, special district, or political
subdivision to legally invest any monies or
funds belonging to them or within their control
in a La. Business and Industrial Development
Company (BIDCO) established pursuant to the
La. BIDCO Act. New law shall not be construed
as relieving any person(s) of any duty of
exercising reasonable care in selecting
securities.
Effective August 15, 2007. (Adds R.S.
33:2955(A)(1)(i) and R.S. 51:2395.1)
Purchases of Real Estate by Political
Subdivision (Act No. 346)
New law prohibits a political subdivision from
purchasing immovable property with a value
greater than $3,000 unless prior to such purchase
the property has been appraised by a qualified
appraiser.
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892666v.1
Effective August 15, 2007. (Adds R.S.
33:4712.10)
Expedited Foreclosure and Quiet Title
Process for New Orleans Redevelopment
Authority (Act No. 256)
New law provides for the New Orleans
Redevelopment Authority to initiate an
expedited quiet title and foreclosure action (to
quiet title to real property held by the authority
or interests in tax reverted property held by the
authority) by recording a notice with the register
of conveyances.
New law authorizes the authority to file a single
petition with the district court listing all property
subject to expedited foreclosure by the authority
and for which the authority seeks to quiet title.
New law provides for the district court to
immediately set the date, time, and place for a
hearing on the petition for foreclosure, not more
than 10 days after the date requested by the
authority.
Not less than 30 days before the quiet title and
foreclosure hearing, the authority shall send
notice of the hearing to the persons identified
with a property interest in property subject to
expedited foreclosure.
New law provides for the authority to record a
notice of judgment for each parcel of foreclosed
property in the office of the register of
conveyances.
New law provides for the authority or a person
claiming to have a property interest may appeal
the district court's order or judgment to the court
of appeals.
New law provides that after a judgment of
foreclosure is entered, the owner of any
extinguished interest who claims that he did not
receive notice is barred from bringing an action
against the subsequent property owner, but may
only bring an action to recover monetary
damages from the authority.
Effective upon signature of the governor (July 6,
2007). (Adds R.S. 33:4720.60.1)
New Redevelopment Authorities (Act
No. 417)
New law creates the East Baton Rouge
Redevelopment Authority and the Lafayette
Redevelopment Authority to provide for the
utilization of appropriate private and public
resources to eliminate and prevent the
development or spread of slum, blighted, and
distressed areas. New law provides in great
detail the duties, liabilities, authority, and
functions of each such redevelopment authority,
including the power to levy ad valorem taxes
and sales and use taxes.
Effective upon signature of governor or lapse of
time for gubernatorial action. (Adds R.S.
33:4720.101)
Jefferson Parish Redevelopment Authority
(Act No. 390)
New law provides for the preparation and
adoption of a community improvement plan by
the authority to address slum and blighted areas.
New law provides that the authority shall have
the power to acquire any blighted property and
to hold, clear, manage, and dispose of said
property.
New law provides for the authority to initiate an
expedited quiet title and foreclosure action (to
quiet title to real property held by the authority
or interests in tax reverted property held by the
authority) by recording a notice with the clerk of
court.
New law provides that the authority shall have
power to issue refunding or other bonds of the
authority from time to time in its discretion for
the payment, retirement, renewal, or extension
of any bonds previously issued by it under new
law and to provide for the replacement of lost,
destroyed, or mutilated bonds previously issued
under new law.
- 33 -
892666v.1
Effective upon signature of the governor (July
10, 2007). (Adds R.S. 33:4720.101-4720.117)
East Feliciana Zoning Law (Act No. 186)
New law, apparently applicable only to East
Feliciana Parish, addresses zoning matters in
great detail.
Effective August 15, 2007. (Adds R.S.
33:4780.61-4780.70)
Political Subdivisions May Pay Post-
Employment Benefits (Act No. 202)
New law authorizes a political subdivision to
establish "post-employment benefits" funds,
defined as health care, life insurance, or any
other benefit, not including pension benefits,
provided by the political subdivision to a person
who is no longer employed by such political
subdivision.
New law provides that any such fund shall be
established to pay the employer's share of post-
employment benefits of employees, all as
prescribed by the ordinance or resolution
creating the fund.
New law authorizes a political subdivision to
establish one or more trusts or to participate in a
multiemployer trust to hold and invest the assets
of post-employment benefits funds, and to
provide for the management and investment of
any such fund or trust, including the
establishment of a board or commission or the
designation of an existing board or commission
for such purposes.
Effective August 15, 2007. (Adds R.S. 33:5161)
Community Development Districts in
Jefferson Parish (Act No. 311)
New law provides that board members of
community development districts in Jefferson
Parish shall be appointed by the members of the
Jefferson Parish Council rather than elected as in
other parishes.
Effective August 15, 2007. (Amends R.S.
33:9039.15(A) and (B))
L.A. R.S. TITLE 34: NAVIGATION AND
SHIPPING
Nothing of particular interest.
L.A. R.S. TITLE 35: NOTARIES
PUBLIC AND COMMISSIONERS
Nothing of particular interest.
L.A. R.S. TITLE 36: ORGANIZATION
OF EXECUTIVE BRANCH OF STATE
GOVERNMENT
Nothing of particular interest.
L.A. R.S. TITLE 37: PROFESSIONS AND
OCCUPATIONS
Accountants (Act No. 102)
New law adds Government Auditing Standards
as a guideline to which an audit or other
engagement can be performed.
New law adds that a report or performance of
any engagement can be performed in accordance
with standards established by the comptroller of
the U.S.
New law requires that out-of-state practitioners
notify the board of their intent to offer or render
professional services in this state.
New law provides that the board can adopt a rule
allowing an individual who offers or renders
professional services under existing law to be
granted practice privileges in this state without
giving notice or paying any fee.
New law makes numerous changes in
requirements relating to the practice of
accounting in Louisiana by persons based out-
of-state.
- 34 -
892666v.1
Effective August 15, 2007. (Amends R.S. 37:73,
77, 79, 80, 81, and 94; Adds R.S.
37:94(A)(3)(d))
Cosmetologists (Act No. 106)
New law adds that one can qualify as a
registered cosmetology teacher if he possesses a
license as an esthetics, cosmetology, or
manicuring instructor issued by another state.
New law provides that the board may contract
with a testing service to conduct examinations.
New law requires an applicant to pay for all
costs associated with taking an examination at
an off-site testing center.
Effective upon signature of governor (June 22,
2007). (Amends R. S. 37:583(B)(2), 585(A), and
586 (A)(1); Adds R. S. 37:586(A)(6))
Dental Hygienists (Act No. 42)
New law adds federal and state institutions
where health care is provided to the list of
persons that may employ a dental hygienist.
New law authorizes committee in an
administrative hearing to levy an administrative
fine.
(Amends R.S. 37:766 and 780(B)(1))
Certified Medication Attendants (Act
No. 293)
Relative to certified medication attendants, new
law provides for the purpose, application, and
definitions of new law.
New law provides for DHH to certify
medication attendants to work in licensed
nursing homes.
New law authorizes certified medication
attendants to deliver and administer certain
medications under the supervision of a licensed
nurse by various methods.
New law prohibits certified medication
attendants from performing various tasks.
New law provides for the qualifications an
applicant for the medication administration
course must meet.
Effective upon signature of governor (July 9,
2007). (Adds R.S. 37:1026.1-1026.9)
Eye Medicines (Act No. 66)
New law defines a "diagnostic and therapeutic
agent" as any chemical in solution, suspension,
emulsion, ointment base, or other form that
when used topically or orally has the property of
assisting in the diagnosis, prevention, treatment,
or mitigation of abnormal conditions and
pathology of the human eye and its adnexa, or
those which may be used for such purposes, and
certain approved narcotics, when used in the
treatment of disorders or diseases of the eye and
its adnexa. (New law removes oral antibiotics
and oral antihistamines from definition.)
Effective August 15, 2007. (Amends R.S.
37:1041(C)(2)(a))
Mental Health Counseling Includes
Psychotherapy (Act No. 206)
New law includes psychotherapy in the
definition of "mental health counseling services"
and includes assisting an individual or group
through psychotherapy in the definition of the
"practice of mental health counseling." New law
is interpretive and intended to explain and
clarify the existing law and is not intended as a
substantive change in the law. New law is to be
applied both prospectively and retroactively
from its effective date.
Effective upon signature of the governor (June
27, 2007). (Amends R.S. 37:1103)
Acupuncture Detoxification Specialists (Act
No. 452)
New law provides for requirements necessary
for the certification of acupuncture
detoxification specialists.
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892666v.1
New law requires that the La. State Board of
Medical Examiners promulgate rules for the
certification and practice of acupuncture
detoxification specialists.
New law deletes the requirement that an
acupuncturist's assistant be employed by a
physician.
Effective August 15, 2007. (Amends R.S.
37:1358(B); Adds R.S. 37:1356(G), (H), and (I)
and 1357.
Real Estate License Renewals (Act No. 35)
New law reduces prior six-month time period for
delinquent renewal of an active or inactive real
estate license or registration to a three-month
time period, and doubles the amount of fees for
delinquency.
(Amends R.S. 37:1442(B), (C), and (D),
1443(4)(a) and (b), and 1462(A))
Required Reporting of Adverse Actions
Against Health Care Professionals (Act
No. 274)
New law provides that, except in certain
circumstances, a health care entity shall report
each instance in which the health care entity
takes an adverse action against a health care
professional due to impairment or possible
impairment or accepts the surrender of clinical
privileges, the resignation of employment or a
contractual relationship, or the withdrawal from
participation in a health care training program of
or by a health care professional under certain
conditions.
New law provides the reports shall be made to
the appropriate professional licensing board
within 72 hours of the adverse action, surrender,
resignation, or withdrawal. New law provides
for the confidentiality of such reports and
specifies such reports received by the
professional licensing boards shall not be
deemed to be or be treated as public records.
New law provides for the limitation of liability
for mandatory reporters (health care entities and
employees and agents of such entities), unless
the reporter knew of the falsity of the
information.
Effective August 15, 2007. (Amends R.S.
44:4.1; adds R.S. 37:1745.2-1745.8 and 2372.1)
Residential Contractors and Home
Improvement Contractors (Act No. 398)
New law provides that a residential contractor's
license is required only when the cost of the
undertaking exceeds $75,000. New law further
provides that a "residential building contractor"
means any person performing home
improvement contracting when the cost of the
undertaking exceeds $75,000.
New law provides that any person registered or
licensed by the board who is the subject of two
or more complaints within a six-month period
shall have his name and the nature of each
complaint received posted on the board's
website.
New law provides that every agreement to
perform home improvement contracting services
in an amount in excess of $7,500, but not in
excess of $75,000, shall be in writing.
New law provides that any home improvement
contractor who possesses a certificate of
registration from the subcommittee as of Oct.1,
2007, shall be entitled to complete any
preexisting contracts they have entered into in
excess of $75,000 without having to obtain a
residential contractor's license. New law further
provides that such home improvement
contractors shall be required to obtain a
residential contractor's license prior to bidding
on or entering into any contracts in excess of
$75,000 after Oct. 1, 2007.
New law provides that no home improvement
contractor who fails to obtain a certificate of
registration shall be entitled to file a statement of
claim or a statement of lien or privilege with
respect to monetary sums allegedly owed under
any contract when the contractor is required to
possess a certificate of registration.
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Effective August 15, 2007. (Amends R.S.
37:2150.1(, 2175.1, and 2175.2; Adds R.S.
37:2162(L) and (M) and 2175.6)
Social Workers (Act No. 436)
New law requires a graduate social worker to
work only as an employee in a private setting
but permits social work services on behalf of a
federal, state, or local governmental agency on a
contractual basis.
New requires an applicant for licensure as a
clinical social worker to complete 5,760 hours of
postgraduate social work practice. At least 3,840
hours of the required postgraduate social work
experience after January 1, 2000, must be in a
setting practicing social work under the
supervision of a board-approved clinical
supervisor.
Effective August 15, 2007. (Amends R.S.
37:2703(1), 2707(C), and 2708(A)(3); Repeals
R.S. 37:2703(9))
Podiatrists (Act No. 204)
New law provides that the treatment of the
ankle, muscles, or tendons of the lower leg may
be included in the definition of podiatry when
performed by qualified podiatrists in accordance
with rules promulgated by the Louisiana State
Board of Medical Examiners (LSBME).
New law changes and greatly expands the causes
for refusal, suspension, or revocation of a
certificate, license, or permit to practice
podiatry. New law makes a number of changes
relating to suspension or revocation hearings,
board orders, and judicial orders.
Effective upon signature of governor (June 27,
2007). (Amends R.S. 37:611(3)(a), 616, and
624)
Chiropractors (Act No. 44)
New law requires that, beginning on July 1,
2011, each applicant for licensure as a
chiropractor hold a baccalaureate degree from a
college or university approved by an accrediting
agency of the U.S. Dept. of Education.
New law increases delinquent fees substantially.
(Amends R.S. 37:2805, 2808, 2809, and 2810)
Respiratory Therapy (Act No. 142)
New law makes extensive changes to the
Respiratory Therapy Practice Act, including
expanding the definition of respiratory therapy,
changing the requirements for licensure,
granting regulatory power to the Louisiana State
Board of Medical Examiners, and changing
provisions regarding education, temporary
licenses, work permits, unprofessional conduct,
hearings, reinstatement of licenses, fees, and the
qualifications for students of respiratory therapy.
Effective August 15, 2007. (Amends R.S.
36:259 and R.S. 37:3353, 3354, 3355, 3356,
3357, 3358, 3359, 3360, and 3361; Adds
3357.1-3357.4)
L.A. R.S. TITLE 38: PUBLIC
CONTRACTS, WORKS AND
IMPROVEMENTS
Design-Build Exception to Public Bid Law
(Act No. 373)
New law, relative to the public bid law,
authorizes the following public entities to utilize
the design-build method in the construction or
repair of any public building or structure which
has been destroyed or damaged by Hurricane
Katrina, Hurricane Rita, or both: the division of
administration; the Recovery School District; the
city of New Orleans; parish governments in
Calcasieu, Cameron, Jefferson, Orleans,
Plaquemines, St. Bernard, St. Tammany, and
Vermilion parishes and the Port of New Orleans.
New law provides for the public entity to
prepare plans and specifications of the work, and
requires that the governing authority adopt a list
of projects under which design-build contracts
will be utilized and specify the selection process
for awarding the design-build contract.
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New law requires every design-builder to be
licensed and registered to do business in the
state as either an architect, an engineer, or a
general contractor, but authorizes the design-
builder to sublet responsibility for services to
persons or entities registered, licensed, or
otherwise qualified to provide those services.
New law requires the governing authority of the
public entity to adopt an ordinance establishing
procedures to select the design-builder,
including a two stage selection process that will
utilize a request for qualifications graded and
judged by a primary evaluation committee and a
request for technical proposals graded and
judged by a separate technical review
committee.
New law requires each member of the technical
review committee to score assigned elements
and such scores shall be considered public
record.
New law requires that the winning proposal be
the proposal with the lowest adjusted score and
provides a formula for determining the adjusted
score.
New law authorizes design-builders who have
submitted bona fide proposals, within seven
days of the announcement of an award, to
challenge the award.
New law authorizes the head of the public entity
to resolve any challenge concerning the award of
a contract and that a written decision be
rendered within fourteen days.
New law provides that once the design-builder
has been chosen and a contract for a stipulated
schedule and sum certain price executed, the
price of the design-build contract can not be
increased other than for inflation as prescribed in
the contract and for site or other conditions of
which the design-builder had no knowledge and
should not have had knowledge as a reasonable
possibility existing at the site or concerning the
design and construction.
Effective upon signature of the governor (July
10, 2007). (Amends R.S. 38:2318.1(B); adds
R.S. 38:2212(D)(3) and 2225.2.1)
Extension of Public Bid Law Exception (Act
No. 336)
New law extends until July 31, 2008 provision
of public bid law that authorizes a local
government to undertake work costing up to
$300,000 with its own employees if:
1. The local government did not have flood
insurance at the time of Hurricanes Katrina and
Rita.
2. The public work being done is to repair
damage caused by one of the hurricanes.
Effective July 31, 2007. (Amends R.S.
38:2212(A)(1)(d)(iv))
L.A. R.S. TITLE 39: PUBLIC FINANCE
Management of Offshore Royalty Revenues
(Act No. 249)
New law creates the La. Coastal Protection and
Restoration Financing Corporation as a special
purpose, public corporate entity, which is an
independent instrumentality of the state, whose
purpose is to carry out the financing, purchasing,
owning and managing of offshore royalty
revenues.
New law provides that the State Bond
Commission, subject to approval of the Joint
Legislative Committee on the Budget and
subject to approval by a majority vote of the
legislature if the legislature is in session and by
mail ballot during the interim, is authorized to
sell and convey, from time to time, a portion of
the state allocation to the corporation, up to one
hundred percent thereof. New law further
provides that, in order to provide current assets
and funds for the Coastal Protection and
Restoration Fund, the corporation board may
provide for the issuance of bonds, subject to the
approval of the State Bond Commission and
Joint Legislative Committee on the Budget.
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892666v.1
New law provides that all proceeds and monies
received by the state, whether received as
offshore royalty revenue assets sold or as the
residual interests shall be deposited in and
credited to the Coastal Protection and
Restoration Fund. Authorizes coastal political
subdivisions to sell to the corporation all or a
portion of their 20% of the allocable share due
the state.
Effective upon signature of the governor (July 6,
2007). (Adds R.S. 39:99.25-99.43)
Tobacco Settlement Enforcement Fund (Act
No. 196)
New law creates the Tobacco Settlement
Enforcement Fund in the state treasury and
requires the annual transfer to the fund of the
sum of $400,000 from the state general fund.
New law provides that, subject to annual
appropriation, monies in the fund shall be used
by the Department of Justice solely for the
enforcement of the Master Settlement
Agreement.
Effective upon signature of governor (June 27,
2007). (Amends R.S. 39:100.21 and 100.26;
Adds R.S. 39:98.7; Repeals R.S. 39:100.31(C)
and Section 6(C) of Act No. 642 of the 2006
R.S.)
Health Care Redesign Fund (Act No. 172)
New law provides that monies in the new Health
Care Redesign Fund in the state treasury may be
appropriated solely to pay costs and expenses
associated with the following health care
initiatives and services:
1. Development of a medical home to
serve the low income uninsured population and
reduce the incidence of emergency room
services.
2. Funding to maintain, administer and
improve various specified health care areas.
3. Initiatives of the Louisiana Health Care
Quality Forum designed to improve the quality
of health and health care statewide.
4. Initiatives to further the adoption and
use of health information technology.
5. Assistance for health care workforce
development and employee retention.
Effective upon signature of the governor (June
27, 2007). (Adds R.S. 39:100.51)
Parish Levee and Canal Bonds (Act No. 179)
New law provides that any parish where the
construction of pump and levee drainage
systems are required in order to drain its
territory, directly or through a special district,
may incur debt and issue bonds for the purposes
of constructing and improving levees and
gravity and forced drainage works. Such
indebtedness, including the existing bonded debt
of the parish or the district, may exceed 10% but
shall not exceed 20% of the assessed valuation
of the taxable property of such parish.
Effective upon signature of the governor (June
27, 2007). (Adds R.S. 39:562(N))
Social Service Contracts (Act No. 214)
Prior law provided that contracts for social
services may be awarded without the need for
competitive bidding or negotiation but only if
the office of contractual review determined that
certain conditions are met and documented.
Prior law provided that the maximum amount
for proposals for social service contracts is
$150,000. New law retains prior law but
increases the maximum amount for proposals for
social service contracts from $150,000 to
$250,000.
(Amends R.S. 39:1494.1(A)(7))
Procurement Code Exclusion for Certain
School IP (Act No. 302)
New law adds an exclusion from the
requirements of the procurement code for
interinstitutional agreements between co-owners
of intellectual property when one of the co-
owners is a Louisiana regionally accredited
college, technical school, or university.
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Effective July 1, 2007. (Adds R.S.
39:1554(D)(7))
L.A. R.S. TITLE 40: PUBLIC HEALTH
AND SAFETY
Sanitary Code to Address Residential Needles
(Act No. 267)
New law provides that rules and regulations of
the Sanitary Code shall be designed to regulate
the packaging, storage, treatment, disposal, and
transportation of home-generated sharps waste,
i.e., needles, syringes, and other medical
instruments that are capable of puncturing the
skin for the delivery of medications derived
from a household, including a multifamily
residence or household.
Effective August 15, 2007. (Amends R.S.
40:4(A)(2)(b)
Housing Counseling Assistance (Act No. 383)
New law provides that housing counseling
assistance may be provided through private
nonprofit organizations which are certified
through the La. Housing Finance Agency and
contracted through an RFP process to be
administered by the office of community
development.
New law provides that housing counseling
assistance providers may counsel owners
relative to refinancing options, availability of
loans and grants, and determining entitlements
from FEMA programs, LRA housing programs,
or any other available housing programs.
New law provides that housing counseling
providers may also assist displaced persons, who
were homeowners or renters, and property
owners by creating suitable housing strategies
for persons with special needs.
New law shall terminate on 7/1/10.
Effective upon signature of the governor (July
10, 2007). (Adds R.S. 40:600.71-600.76)
Patient Disclosure of Prior Drug
Prescriptions (Act No. 287)
New law provides that it shall be unlawful for
any person, while being supplied with any
controlled dangerous substance or a prescription
for any controlled dangerous substance by one
health care practitioner, to knowingly and
intentionally obtain or seek to obtain any
controlled dangerous substance or a prescription
for a controlled dangerous substance from a
second or subsequent health care practitioner
without disclosing the fact of the existing
prescription to the practitioner from whom the
subsequent prescription for a controlled
dangerous substance is sought. New law requires
the disclosure to be in writing and to be made a
part of that person's medical record and specifies
certain information required to be disclosed.
New law contains similar provisions for the
legend drug Carisoprodol.
Effective August 15, 2007. (Amends R.S.
40:1238.1(B); Adds R.S. 40:971(B)(1)(i) and
1238.1(C))
Testing for HIV and Other Venereal Diseases
(Act No. 153)
New law makes extensive revisions to laws
governing the manner of obtaining patient
consent for and the testing for HIV and other
venereal diseases and reporting of the results to
health authorities.
Effective August 15, 2007. (Amends R.S.
40:1061, 1065, 1091, 1092, 1300.12, and
1300.13; Repeals R.S. 40:1300.13(F) and
1300.16)
Pharmacists May Not Prescribe Based Solely
on Electronic Questionnaire (Act No. 318)
New law provides that a prescription issued
solely on the results of an electronic
questionnaire, in the absence of a documented
patient evaluation and physical examination, is
issued outside of the physician-patient
relationship and is not a valid prescription.
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892666v.1
New law prohibits a pharmacist from knowingly
dispensing a prescription which is authorized
solely on the results of an electronic
questionnaire or in the absence of a valid
physician-patient relationship.
Effective August 15, 2007. (Adds R.S.
40:1238.4)
Informed Consent for Abortions (Act
No. 282)
New law requires that, at least 24 hours before
an abortion, the physician who will perform the
abortion inform the woman, orally and in
person, as a requirement to informed consent, of
the availability of anesthesia or analgesics to
alleviate or eliminate organic pain to the unborn
child that could be caused by the method of
abortion to be employed, and the option of
reviewing and receiving an explanation of an
obstetric ultrasound image of the unborn child.
Effective August 15, 2007. (Amends R.S.
40:1299.35.6(C)(1)(a); Adds R.S.
40:1299.35.6(A)(5)(d) and (B)(1)(g) and (h))
Public Rural Hospitals May Lease to Part-
Time Health Care Providers (Act No. 224)
New law provides that notwithstanding any law
to the contrary, a public rural hospital may
employ a licensed health care provider on a part-
time basis, and may lease, at fair market value, a
portion or all of a facility or equipment to such
health care provider for the provision of health
care services.
Effective upon signature of the governor (July 2,
2007). (Adds R.S. 40:1300.143(5) and (6) and
1300.147)
Increased Medicaid Money for Rural
Hospitals (Act No. 327)
New law requires a Medicaid state plan
amendment to provide that rural hospitals be
reimbursed at 110% of their costs and specifies
that if the Centers for Medicare and Medicaid
Services (CMS) authorize a reduction in
reimbursement, rural hospitals and clinics will
retain a 100% reimbursement level.
If CMS approves the amendment to the state
Medicaid plan, new law authorizes the Dept. of
Health and Hospitals (DHH) to promulgate an
emergency rule to implement the cost-based
payment system and then to set interim payment
rates to minimize the amount of annual cost
settlements.
New law provides for a definition of "reasonable
cost", to include only outpatient services.
New law requires DHH to pay 75% of interim
rural hospital outpatient cost report settlement
amounts and 100% of final rural hospital
outpatient cost report settlement amounts within
14 days of receipt from the Medicaid audit
contractor.
New law provides that the new payment
methodology be effective July 1, 2008, or as
soon thereafter as is allowable under federal law.
Effective upon signature of governor (July 9,
2007). (Amends R.S. 40:1300.144(A)(2); Adds
R.S. 40:1300.142(A)(7)-(13) and1300.143(5)
and (6))
Aging and Disability Information Station
Program (Act No. 406)
New law creates the Aging and Disability
Information Station program in the Office of
Elderly Affairs within the governor's office.
New law provides that the Aging and Disability
Information Station program assist people with
adult-onset disabilities in accessing and applying
for manufacturers' discount cards,
pharmaceutical assistance programs, and other
supports and service programs.
Effective August 15, 2007. (Amends R.S.
40:1300.211, 1300.212, 1300.213, 1300.214,
1300.215, and 1300.216)
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Cigarette Performance Standards (Act
No. 409)
New law provides that no cigarettes may be sold
or offered for sale unless the cigarettes meet
certain test method and performance standards.
New law requires filed written certification and
marking of cigarettes.
New law permits a wholesale dealer or retailer
to continue to sell its existing cigarettes after the
effective date of new law if they were purchased
prior to the effective date of the new law.
New law provides that each manufacturer
submit to the state fire marshal a written
certification stating that each cigarette has been
tested and meets the performance standards.
New law provides that a manufacturer mark
individual packages of cigarettes to signify that
the cigarettes are in compliance with the fire
safety performance standards established by new
law.
New law does not prohibit any person or entity
from manufacturing or selling cigarettes outside
this state that do not meet the requirements set
forth by new law if that person or entity takes
reasonable steps to ensure the cigarettes will not
be sold in this state.
Effective August 31, 2009. (Adds R.S.
40:1601.1-1601.11)
Major Facility Projects Must Be Energy
Efficient (Act No. 270)
New law requires the office of facility planning
and control of the division of administration to
adopt rules and regulations that require certain
state-funded "major facility projects" to meet
energy efficiency requirements.
New law requires that such major facility
projects must be designed, constructed, and
certified to exceed the requirements of the state
energy code by at least 30%.
Effective upon signature of the governor (July 6,
2007). (Adds R.S. 40:1730.49)
Energy Conservation Codes Updated (Act
No. 110)
Prior law provided that ANSI/ASHRAE/IESNA
90.1-2001 is the Commercial Building Energy
Conservation Code for applicable buildings.
New law changes prior law from the 2001
edition to the 2004 edition.
Prior law provided that the 2000 edition of the
International Energy Conservation Code is the
Commercial Building Energy Conservation
Code for applicable buildings not covered by
prior law. New law changes prior law from the
2000 edition to the 2006 edition.
Effective upon signature of governor (June 22,
2007). (Amends R.S. 40:1730.42, and 1730.45)
Construction Code Matters (Act. No. 335)
New law provides that all municipalities and
parishes shall use building code enforcement
officers or certified third-party providers
contracted by the municipality, parish, or
regional planning commission to enforce the
State Uniform Construction Code, and their
enforcement procedures shall include
examination or review of plans, drawings, or
specifications; the conducting of inspections;
and the issuance, denial, or revocation of
permits.
New law provides that the exemption for
manufactured housing shall extend to driveways,
steps, decks, or other similar accessory
structures or work, but shall not include any
additional living area or other type of heated and
cooled space outside of the original footprint of
the manufactured home.
New law provides that homeowners who are
excepted from the contractor licensing law may
establish agreements with certified third-party
providers to conduct plans review and
inspections.
New law provides that beginning Jan. 1, 2008,
upon application and fulfillment of necessary
requirements, a third-party provider who is a La.
licensed architect or engineer shall be granted a
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892666v.1
certificate of registration without certification by
a recognized code organization for their
specialty work only.
New law amends the latest edition of the
International Residential Code to include the
wind speed map of the 2003 edition of the
International Residential Code in lieu of the
wind speed map of the 2006 edition. The code
shall remain in effect until the 2009 edition of
the International Residential Code is published,
at which time such edition of the code shall be
adopted by the council. New law provides that
enforcement of the adopted standards of the
International Residential Code shall be
mandatory only with respect to new
construction, reconstruction, additions to homes
previously built to the residential code, and
extensive alterations. New law defines extensive
alteration as an alteration when the total area of
all the work areas included in the alteration
exceeds 50% of the area of the dwelling unit.
New law provides definitions for
"reconstruction", "alteration", and "addition".
New law provides that Appendix J of the
International Residential Code, which is entitled
Existing Buildings and Structures, shall not be
adopted by the council and may be adopted and
enforced only at the option of a parish,
municipality, or regional planning commission.
New law amends the energy part of the code to
require that supply and return ducts be insulated
to a minimum of R-6.
Effective upon signature of governor (July 9,
2007). (Amends R.S. 40:1730.22, 1730.23,
1730.24, 1730.26 and 1730.28 and (3); Adds
R.S. 40:1730.28(C))
Industrialized Buildings (Act No. 364)
New law provides that industrialized buildings
constructed after Jan. 1, 2007, meet or exceed
the requirements of the building code and the
requirements of the state fire marshal.
New law provides that industrialized buildings
constructed prior to Jan. 1, 2007, meet or exceed
the requirements established by the parish or
municipality in which the building is to be
located at the time of construction of the
industrialized building.
New law provides that an industrialized building
not accessible by the public may be relocated
within the state without the requirement of
modification or alteration unless the building
allows access by the public.
New law provides that a municipality or parish
not make any requirement more stringent than
the standards set forth in new law when granting
or approving a building or construction permit or
certificate of occupancy.
New law provides that third-party providers be
registered with the council.
New law requires the state fire marshal or an
approved third-party provider to review designs,
plans, and specifications of industrialized
buildings for compliance with the building code.
New law provides that the state fire marshal may
determine from an engineering standpoint all
questions concerning building code equivalency
or alternative materials or methods of
construction or as approved by the La. State
Uniform Construction Code Council. New law
requires the state fire marshal to inspect the
construction of industrialized buildings.
New law provides that a parish or municipality
may regulate the on-site construction or
installation of industrialized buildings.
Effective August 15, 2007. (Adds R.S.
40:1730.51-1730.66)
Liquefied Petroleum Gas Handling
Exemptions (Act No. 273)
New law exempts certain persons, firms, or
corporations from permit requirements relating
to storage, sale, or transportation of liquefied
petroleum gases or installation of related items,
if they qualify and their normal and routine
business is not primarily the transportation of
liquefied petroleum gases.
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892666v.1
New law excepts from the personnel
competency test administered by the LPG
Commission, drivers transporting 300 gallons or
less of liquefied petroleum gas in 25 gallon or
more containers that conform to USDOT
specifications if the driver's normal and routine
duties are not the transportation of liquefied
petroleum gases.
Effective upon signature of the governor (July 6,
2007). (Amends R.S. 40:1849(C)(1); adds R.S.
40:1847.1(E))
Nursing Home Fire Sprinklers (Act No. 328)
New law permits a nursing home to request
DHH to grant an extension of time for
submission of supervised automatic fire
sprinkler plans by August 31, 2007.
New law provides that nursing home operators
are in compliance with the requirement that
facilities must be protected by a supervised
automatic fire sprinkler system if:
1. The operator attests to the fact that its
facility will be replaced by a licensed and
operable facility that will be protected
throughout with a supervised automatic fire
sprinkler system by Dec. 31, 2009; and
2. The operator presents plans for the
replacement facility to DHH and the state fire
marshal by Nov. 1, 2007.
Effective August 15, 2007. (Amends R.S.
40:2009.4.1(A))
Medicaid Money for Social Workers and
Psychologists (Act No. 343)
New law provides that, subject to an
appropriation by the legislature, the Department
of Health and Hospitals (DHH) must include
licensed clinical social workers and medical
psychologists with three years of work
experience in private practice as providers for
the purposes of Medicaid reimbursement.
New law requires DHH to establish an
administrative organization to oversee all
behavioral health services.
Effective August 15, 2007. (Amends R.S.
40:2017)
Donation of Nursing Homes to Government
(Act No. 165)
New law authorizes the offer of a donation to the
state, political subdivision, or other public entity
of the buildings and grounds constituting a
nursing facility for uses consistent with public
purposes.
Effective upon signature of the governor (June
27, 2007). (Adds R.S. 40:2116(D)(4))
Exceptions to Moratorium on Nursing Homes
and Beds (Act No. 253)
New law provides that the moratorium on
replacement of existing nursing facilities does
not apply if certain criteria are met.
New law provides an exception to the
moratorium for the licensing of additional beds
for nursing facilities if certain criteria are met.
New law provides that DHH license, but not
certify for Medicaid participation, up to thirty
additional beds for a continuing care retirement
community meeting certain criteria.
New law provides licensed beds, at the
discretion of the continuing care retirement
community provider, to be used for persons who
are not residents of the care retirement
community and who are not parties to a care
contract, for up to five years after receipt of
occupancy certification. Thereafter, the licensed
beds may only be used by owners of the care
contract with the continuing care retirement
community provider.
New law provides that DHH shall adopt rule(s)
allowing a nursing home, located in a service
area having less than 93% occupancy, to
temporarily convert a number of licensed beds
for alternate use. Beds can be converted for
alternate use until the average annual occupancy
exceeds 93%. Thereafter, the facility shall either
re-license the beds as nursing home beds or the
beds will be deemed expired. Nothing precludes
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892666v.1
nursing homes from taking beds out of alternate
use, at any time, unless deemed expired.
Effective upon signature of the governor (July 6,
2007). (Adds R.S. 40:2116(D)(4) and (5) and
(K))
Washington Parish Exempted from Nursing
Home Moratorium (Act No. 378)
New law excepts Washington Parish from the
moratorium on additional facilities and
additional beds in nursing facilities.
New law provides that the department may
license and approve additional nursing facilities
and additional beds in nursing facilities, located
in the service area known as Washington Parish,
as follows: (1) the department shall follow the
facility need review process; (2) the total
number of additional beds in nursing facilities
licensed and approved shall not exceed 120; and
(3) any additional beds in nursing facilities
licensed shall be enrolled and participate in the
Medicaid program.
New law provides that within 60 days after the
effective date of new law, any nursing facility in
Washington Parish that is involuntarily
terminated from participation in the Medicare
and Medicaid programs shall not be eligible to
participate in the bed abeyance program.
Effective upon signature of the governor (July
10, 2007). (Adds R.S. 40:2116(D)(4) and (5))
Hospice License Moratorium (Act No. 444)
New law imposes a moratorium on the issuance
of hospice licenses until 12/31/08.
New law allows DHH to license hospices that
have submitted their applications to the
department prior to July 1, 2007. If an applicant
is unable to comply with the survey within 90
days of submission of the application, no license
shall be issued under the moratorium.
Effective July 1, 2007. (Adds R.S. 40:2183(E))
Pre-Judgment Sale of Seized Contraband
(Act No. 71)
New law provides that the district attorney may
petition the court for a sale pending forfeiture of
any vessel, vehicle, aircraft, merchandise, or
other property which is subject to forfeiture as
contraband if the hearing has not been held
within 60 days of filing a claim or 180 days of
the seizure and either (1) it appears that the
property is liable to perish or to greatly
depreciate in value during storage, or (2) the
costs associated with storage of the property are
disproportionate to its value.
New law provides that after notice to interest
holders and claimants and a contradictory
hearing, the court may order an immediate sale
of such property and the proceeds thereof
deposited until a final judicial disposition is
reached. New law provides that the use of
minimum bids is required to ensure that the
greater of 50% of the fair market value or 100%
of the principal for any interest holder is
obtained.
New law provides that prior to sale, the property
seized shall be published in an appropriate
newspaper.
New law provides that if the final judicial
disposition is in favor of the claimant, neither
the seizing agency nor the district attorney shall
be liable for any difference in the amount
received at auction and the retail sale price for
any property sold.
Effective August 15, 2007. (Adds R.S.
40:2607(D) and 2608.1)
L.A. R.S. TITLE 41: PUBLIC LANDS
Nothing of particular interest.
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892666v.1
L.A. R.S. TITLE 42: PUBLIC OFFICERS
AND EMPLOYEES
State to Contract with HMOs (Act No. 479)
New law requires that the office of group
benefits contract with certain Louisiana-based
health maintenance organizations if such
organizations submit competitive offers,
proposals, or bids to solicitations of the office
regarding the provision of health insurance for
persons participating in office programs.
Effective upon signature of governor (July 19,
2007). (Amends R.S. 42:802(B)(6); Adds R.S.
42:802.1))
Nepotism in New School Systems (Act
No. 150)
New law provides that Code of Governmental
Ethics shall not prohibit the school board of a
school system created after June 1, 2006, from
employing an immediate family member of a
school board member, provided that the
immediate family member was previously
employed in a similar capacity by a school board
within the same parish for a period of at least
one year prior to the creation of the new school
system. New law further requires any school
board member whose immediate family member
is either being considered for employment or is
employed by the school board to recuse himself
from any decision involving the hiring,
promotion, or assignment of such employee.
Effective upon signature of governor (June 25,
2007). (Adds R.S. 42:1119(F))
Nepotism Exception for Hospital Service
Districts Broadened (Act No. 225)
Existing law provides for an exception to the
prohibition of employment by any governing
authority of a member of the immediate family
of a member of the governing authority or of the
chief executive of the governmental entity by
allowing any hospital service district with a
population of 100,000 persons or less or hospital
public trust authority located in such district to
employ a health care provider who is a member
of the immediate family of any district board or
authority member or of the chief executive of
the district or authority.
New law, in addition to retaining the exception
for employment, permits any such hospital
service district or hospital public trust authority
to enter into an initial recruiting contract with a
health care provider who is a member of the
immediate family of any district board or
authority member or of the chief executive of
the district or authority.
New law requires an immediate family member
who enters into an initial recruiting contract with
or is employed by the hospital service district or
the hospital public authority to file a disclosure
statement with the board of ethics stating the
facts of such employment no later than January
13th of each year.
Effective August 15, 2007. (Amends R.S.
42:1119(B)(2)(b))
Physician Exception to Code of
Governmental Ethics (Act No. 152)
New law expands exceptions to the Code of
Governmental Ethics to allow a licensed
physician who is a member of a hospital service
district board located within a parish with a
population of 125,000 or less to contract with
the hospital over which the board exercises
jurisdiction, to subcontract with another provider
who contracts with the hospital, and to have an
ownership interest in an entity that contracts
with the hospital. New law requires the
physician to recuse himself from participating in
a transaction before the board relating to such
contracts permitted by new law.
Effective upon signature of governor (June 25,
2007). (Amends R.S. 42:1123(18)(a); Repeals
R.S. 42:1123(18)(b))
Conflicts in Provision of Insurance for
Governmental Entities (Act No. 250)
New law provides, as an exception to the Code
of Governmental Ethics, that an insurance
producer of record for a governmental entity will
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892666v.1
not be precluded from providing to that
governmental entity all of the normal insurance
and risk management services to a governmental
entity, including but not limited to providing
advice or recommendations regarding insurance
coverages, markets, costs, terms, selection of
coverages and all related matters.
New law provides that an insurance producer
who solicits to be producer of record or serves as
producer of record for a governmental entity will
not serve in any other official decision making
capacity over insurance issues for the
governmental entity, including but not limited to
elected or appointed positions, advisory
committees, as an employee, or as risk manager.
New law requires that any insurance producer
who has served in any official decision making
capacity over insurance issues for a
governmental entity who wishes to solicit or
serve as producer of record for that same
governmental entity shall comply with the two
year prohibition provided for in the Code of
Governmental Ethics.
New law requires that an insurance producer of
record fully disclose in writing to the
governmental entity in writing all fees,
commissions, or other compensation payable to
the producer of record from the insurer or any
source other than the governmental entity that
relate to the placement of the insurance
coverages.
New law does not preclude a governmental
entity from contracting with an insurance
consultant, separate from the producer of record,
to provide risk management services and to
assist the governmental entity in making
insurance decisions.
New law does not apply to individually
underwritten guaranteed renewable limited
benefit health insurance policies.
Effective upon signature of the governor (July 6,
2007). (Adds R.S. 42:1123(37))
Board of Ethics To Be More Visible (Act
No. 315)
New law requires the Board of Ethics to offer
training on a regular basis on the use of its
computerized data management system as well
as educational materials detailing the procedures
necessary to file reports electronically.
New law provides that the Board of Ethics
conduct educational activities and seminars and
publish educational materials on a regular basis
and provides that such activities, seminars, and
materials shall also be open or available not only
to public servants in all state and local agencies,
and persons who do business with such
agencies, but also to candidates, lobbyists, and
other interested persons.
New law further requires the board to design and
make available to all interested persons via the
Internet training and educational materials
pertaining to the ethics code, the campaign
finance disclosure laws, and the laws relative to
lobbying. New law requires the board to publish,
both in hardcopy format and via the Internet, all
public charges, opinions, letters of advice, and
decisions of the board and its predecessors
concerning all of the laws under the jurisdiction
of the board. New law requires the board to
compile and publish, both in hardcopy format
and via the Internet, an index referencing each
such charge, opinion, letter of advice, and
decision of the board and its predecessors to the
specific citations of law on which the charge,
opinion, letter of advice, or decision is based.
New law requires the board to keep records of
compliance with the requirements of law by
each public servant and by state agencies.
Effective on Jan. 1, 2008; however, requires the
board to take actions consistent with the new
law which are necessary for implementation
after signature by governor (July 9, 2007).
(Amends R.S. 42:1134(M) and (N) and 1170;
Adds R.S. 42:1134(O))
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892666v.1
Public Posting of Whistle-Blowing
Protections (Act No. 148)
New law requires each agency head to ensure
that a notice containing an explanation in plain
language of the rights of public employees
against reprisals for whistle-blowing is posted
and maintained at some convenient and
conspicuous point in each building where more
than ten public employees are employed.
Effective August 15, 2007. (Amends R.S.
42:1169(A) and (E); Adds R.S. 42:1169(G))
L.A. R.S. TITLE 43: PUBLIC PRINTING
AND ADVERTISEMENTS
Nothing of particular interest.
L.A. R.S. TITLE 44: PUBLIC RECORDS
AND RECORDERS
Secrecy of Notarial Exams (Act No. 155)
New law provides that the laws relating to
public records do not apply to any portion of a
notarial examination administered or to be
administered by the secretary of state, nor to any
answers for such a notarial examination.
Effective upon signature of governor (June 25,
2007). (Adds R.S. 44:4(42))
Attorney Regulators May Use Expunged
Records (Act No. 314)
New law adds the Louisiana Attorney
Disciplinary Board, Office of Disciplinary
Counsel, and the Louisiana Supreme Court
Committee on Bar Admissions to the list of
organizations authorized to receive and use
expunged records of arrest.
Effective August 15, 2007. (Amends R.S. 44:9)
Notice of Mineral Leases (Act No. 8)
New law, relative to recordation of documents in
the mortgage and conveyance records, provides
that the notice of lease provisions now also
apply to mineral leases.
New law provides that notices for mineral leases
shall include the primary term of the lease and
any additional period during which the lease
may be maintained by the payment of the
rentals.
Effective upon signature of the governor (June
18, 2007). (Amends R.S. 44:104(E))
Cancellation of Mortgages (Act No. 337)
New law requires the recorder of mortgages to
cancel a mortgage or vendor's privilege upon
receipt of an affidavit from a notary public or
title insurer when the paraphed promissory note
secured by a mortgage or vendor's privilege on
immovable property has been lost or destroyed.
Prior law provided that the affidavit of
cancellation shall include a statement that the
affiant had made a due and diligent search for
the last holder, the last holder could not be
located, and one year had elapsed since
recordation of the act of sale or mortgage which
gave rise to the affidavit of cancellation, or it
was required to be accompanied by an affidavit
from the last holder stating that the promissory
note marked "Paid in Full" was delivered to the
notary public.
New law provides the statement will be that the
affiant has made a due and diligent search for
the note, the note cannot be located, and 60 days
have elapsed since payment or satisfaction of the
note.
New law authorizes a person under the direction
of the notary public or an officer of a licensed
title insurer to submit an affidavit of cancellation
which sets forth certain facts, including a
description of the property.
New law provides that no mandamus proceeding
is required to use the cancellation provisions of
new law.
New law provides that the affiant who has
signed an affidavit that is provided to the
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892666v.1
recorder of mortgages pursuant to new law that
contains materially false or incorrect statements
that cause the recorder to incorrectly cancel the
recordation of a mortgage or privilege is liable
to and shall indemnify the recorder and any
person relying upon the cancellation for any
damages that they may suffer as a consequence
of such reliance.
New law provides that the request for
cancellation shall have attached to it an act
executed before a notary public or duly
acknowledged before a notary public with or
without witnesses or any act that is otherwise
self-proving under the provisions of C.E. Art.
902(1), (2), (3), or (8).
New law provides a cancellation form which
shall be accepted by the recorder of mortgages
for each and every parish.
Existing law provides that a person requesting
the recorder to cancel recordation of a mortgage
or privilege and who provides the recorder with
an act or declaration that contains materially
false or incorrect statements that cause the
recorder to incorrectly cancel the recordation of
a mortgage or privilege is personally liable to
and shall indemnify the recorder and any person
relying upon the cancellation for any damages
that they may suffer as a consequence of such
reliance, and that a person who knowingly
provides the materially false or incorrect
statement is also guilty of false swearing under
the provisions of R.S. 14:125.
New law extends existing law to any person who
knew or should have known that the act or
declaration he provided to the recorder
contained materially false or incorrect
statements and provides that any person who
knowingly executes the materially false or
incorrect statement is also guilty of false
swearing under the provisions of R.S. 14:125.
Effective August 15, 2007. (Amends R.S.
9:5167 and R.S. 44:106(A), 109(A), and 110;
Adds R.S. 44:109.1)
Orleans Parish Notary Law Repealed (Act
No. 212)
New law repeals prior law that required
custodian of notarial records in Orleans Parish to
keep a list of all notaries public in the parish, to
file proceedings annually to test the surety on
the bonds of non-attorney notaries in the parish,
and to revoke notary commissions for failure to
pay required fees or post bonds.
Effective upon signature of the governor (July 2,
2007). (Repeals R.S. 35:325-328 and 330-335
and R.S. 44:182.2-182.10)
L.A. R.S. TITLE 45: PUBLIC UTILITIES
AND CARRIERS
Tow Trucks Are Motor Carriers (Act
No. 108)
New law provides that a "motor carrier" shall
include tow trucks.
Effective August 15, 2007. (Amends R.S.
45:162(10) and 169.1)
Natural Gas System Disconnection Hearings
(Act No. 272)
New law prohibits a distributor from
disconnecting the supply of natural gas to a local
distribution system, unless the local distributing
system is given at least 90 days written notice of
the disconnect or shut-off and at least one public
hearing is held by the Public Service
Commission (PSC) prior to the disconnect or
shut-off.
New law further provides that the PSC must
consider certain factors related to disconnecting
the supply of natural gas to a local distribution
system, including whether or not the local
distribution system has agreed to the shut-off for
a specific period of time; the length of time
required to obtain public financing, time
constraints necessary to construct necessary
facilities; the time constraints and requirements
of the State Bond Commission; and time
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892666v.1
constraints and requirements of the Federal
Energy Regulatory Commission.
Effective upon signature of the governor (July 6,
2007). (Amends R.S. 45:302)
PSC Attorneys and Fees (Act No. 234)
Prior law provided that the Public Service
Commission (PSC) select an attorney for the
PSC and pay the attorney out of the fees
collected pursuant to prior law. New law repeals
prior law.
Prior law provided that attorneys or special
counsel may be retained by the PSC to assist the
"economics and rate analysis division" for the
purpose of evaluating and reviewing matters
affecting services and rates charged by public
utilities to Louisiana consumers and for
representing the PSC in such cases or the
judicial review thereof. New law changes
"economics and rate analysis division" to PSC
and makes the compensation standards
previously applicable to attorneys assisting the
economics and rate analysis division applicable
to attorneys assisting the PSC.
New law similarly substitutes PSC for the
economics and rate analysis division with
respect to the employment of engineers,
consultants, accountants and others.
Prior law required each common carrier,
contract carrier, and public entity, subject to the
control of the PSC, to pay a fee for the
inspection and control and supervision of their
business service and rates. New law increases
the fees paid to the PSC.
Prior law provided for the Economics and Rate
Analysis Division and Hearing Examiners
Division Supplemental Fee Fund. New law
repeals prior law.
Prior law provided that each gas, electric, and
telephone utility doing business in Louisiana
subject to regulation by the PSC pay
supplemental fees for the financing of the costs
of the economics and rate analysis division and
the hearing examiners division. New law repeals
prior law.
Effective August 15, 2007. (Amends R.S.
45:1177(A)(2) and (3) and (C), 1180(A) and (B),
and 1181(A); Repeals R.S. 45:1177(D) and (E),
1177.1, and 1178)
La. Utilities Restoration Corp. (Act No. 55)
The legislature declares as valid public purposes
the restoration and rebuilding of utility systems
after natural disasters using low cost capital and
supporting the financial strength and stability of
utility companies that have restored and rebuilt
their systems. New law provides that the
Louisiana Utilities Restoration Corporation
(LURC) shall be a nonprofit corporation created
for the purpose of providing an alternate
financing mechanism available to the Public
Service Commission (PSC) and the council of
the city of New Orleans, as applicable, to attract
low-cost capital to finance utility system
restoration.
The purpose of the new law is to minimize costs
charged to ratepayers for system restoration
costs. New law provides the PSC may authorize
the issuance of system restoration bonds upon
certain findings.
New law provides that system restoration
charges authorized by the PSC will be imposed
by the LURC.
New law provides that a utility receiving
securitization financing proceeds shall not be
required to provide utility services as a result of
receiving such proceeds.
New law provides that LURC shall operate to
perform the essential governmental function of
financing utility system restoration costs and
that LURC shall be a public corporation and
instrumentality of the state subject to the Public
Records Law, the Open Meetings Law, the Bond
Validation Procedures Law, and the Code of
Governmental Ethics, with various exceptions.
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892666v.1
New law provides that the staff of the PSC may
staff LURC and that state officers, departments,
and agencies may also render support.
New law provides that LURC may retain such
professionals as it deems necessary to carry out
its duties, subject to the approval of the PSC.
New law provides for the governing body and
officers of LURC.
New law provides that members of the board
and persons acting on LURC's behalf shall not
be subject to any personal liability while acting
within the scope of their duties or employment.
Proposed law provides that LURC shall be
required by the terms of any financing order that
provides for the assessment of system
restoration charges to either (1) sell such
specified system restoration property to an issuer
in exchange for the net proceeds of the issuance
of system restoration bonds or (2) borrow from
an issuer the net proceeds from the issuance of
system restoration bonds and pledge such
system restoration property to the issuer and use
the restoration charges to pay LURC's obligation
and financing costs. Proposed law further
provides that LURC shall be required to provide
such bond proceeds as a nonshareholder
contribution to capital to the utility collecting
such system restoration charges, subject to the
requirements in the financing order.
New law provides that LURC may: (1) acquire,
sell, pledge, and transfer system restoration
property as necessary to effect the purposes of
proposed law, and (2) borrow monies from an
issuer of system restoration bonds and use the
monies from the collection of the pertinent
system restoration charges to repay such loans
and the related financing costs.
New law provides that LURC shall prepare an
annual operating budget to be submitted for
approval by the PSC. If requested by the PSC,
LURC shall prepare and submit an annual report
containing the annual operating and financial
statements.
New law provides that the PSC shall regulate
LURC with the same plenary regulatory
authority as provided under present law with
respect to public utilities.
Proposed law provides that a utility may petition
the PSC for a financing order.
New law provides that for a financing order to
create system restoration property such order
shall meet a number of requirements.
New law provides that after the issuance of a
financing order, LURC shall arrange for the
issuance of system restoration bonds as specified
in the financing order by an issuer selected by
LURC and approved by the PSC. New law
provides that LURC shall enter into a sale or
loan transaction with the issuer and then transfer
the net proceeds received by LURC to the
pertinent utility as a non-shareholder
contribution to capital.
New law provides that the PSC may commence
a proceeding and issue a subsequent financing
order that provides for the refinancing, retiring,
or refunding of system restoration bonds issued
pursuant to the original financing order. New
law provides that system restoration bonds
issued pursuant to a financing order shall not be
the debt of the utility and system restoration
charges paid and collected under any financing
order shall not be considered the revenue or
property of the utility.
Proposed law provides that an aggrieved party or
intervener may file a petition setting forth the
particular objection to a financing order in the
district court of the domicile of the PSC within
15 days after the financing order made by the
PSC becomes effective.
New law provides that the system restoration
property specified in a financing order may be
sold to an issuer by LURC, or may be pledged to
an issuer by LURC to secure LURC's payment
to the issuer of monies sufficient to pay the
system restoration bonds issued.
New law provides that the utility shall have no
ownership or beneficial interest in the system
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892666v.1
restoration property, other than the obligation to
collect and transfer the system restoration
charges as agent of LURC, the issuer, or
financing party, as applicable.
New law provides that system restoration
property shall be an individualized, separate,
incorporeal movable susceptible of ownership,
sale, assignment, transfer, pledge, and security
interest encumbrance, notwithstanding any of
the following:
1. That notice is not given to utility
customers that the system restoration property is
owned by LURC or a transferee and that the
utility or other entity is acting as a collection
agent.
2. That the system restoration charges are
not shown as a separate line item on individual
utility bills.
3. That funds arising from the collection of
system restoration charges by the utility as
collection agent are commingled with other
monies of the utility, prior to the utility's transfer
of such funds to LURC, the issuer, or financing
party.
New law provides a detailed legal regime for the
sale and assignment of system restoration
property.
System restoration bonds issued pursuant to a
financing order under proposed law shall not be
the debt of the utility. System restoration
charges paid and collected under any financing
order shall not constitute the revenue or property
of the utility. System restoration bonds shall be
nonrecourse to the credit or any assets of the
utility, other than the utility's obligation as
collection agent.
LURC shall either sell the system restoration
charges and other system restoration property
available to LURC to the issuer, or pledge the
system restoration property to the issuer as
security for LURC's loan obligation. The issuer
shall pledge to the financing parties either the
system restoration property purchased by the
issuer, or the loan payment obligation owing by
LURC to the issuer as the source of revenue for
payment of and to secure system restoration
bonds and related financing costs.
All bonds issued under the new law shall be
approved by the State Bond Commission.
The public purpose of system restoration bonds
is to finance the acquisition or replacement of
capital assets or permanent working capital of a
utility in order to support its financial stability in
order to minimize the rates charged by utilities.
The expenditure of money by LURC shall be
under the direction of the governing board and
the regulation of the PSC.
There shall be created separate accounts by
LURC for each utility that is collecting system
restoration charges on behalf of LURC, and the
net proceeds of system restoration bonds issued
pursuant to a financing order transferred to
LURC shall be allocated to the account of the
utility collecting such system restoration
charges.
Upon the deposit of proceeds of system
restoration bonds, a utility shall be entitled to
request disbursements from the appropriate
account of the fund in the amount of the PSC-
approved system restoration costs, and LURC
shall grant such request consistent with the terms
of the PSC's order and the new law.
Any disbursements by LURC to a utility are
intended to be non-shareholder contributions to
the capital of the utility and such disbursements
are not payments for any service provided by the
utility to LURC or the utility's customers, but
are made only in exchange for the utility's
commitment contained in the financing order.
New law provides that LURC is a public
corporation and an instrumentality of the state
and is subject to certain provisions of present
law regarding bankruptcy of political
subdivisions and refunding of bonds.
System restoration charges authorized by the
PSC shall be regulatory fees and shall not be
considered taxes intended to raise revenue for
the maintenance of governmental services.
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892666v.1
System restoration bonds and the income
therefrom shall be free from taxation by the state
and any of its political subdivisions or other
instrumentalities.
New law provides that nothing in new law shall
be construed to constitute any limitation,
derogation, or diminution of the jurisdiction or
authority granted to the PSC or the council of
the city of New Orleans as provided in present
law.
Effective upon signature of governor or lapse of
time for gubernatorial action. (Adds R.S.
12:202.1(F), R.S. 44:4.1(B)(36), and R.S.
45:1311-1328)
L.A. R.S. TITLE 46: PUBLIC WELFARE
AND ASSISTANCE
Foster Parents' Rights (Act No. 122)
New law grants foster parents the right to
uniform treatment throughout the state by DHH
in the providing of information and in ensuring
the exercise of the rights granted to foster
parents.
New law adds that information provided to
foster parents by DHH shall include written
information explaining the rights and duties of
foster parents.
New law adds that foster parents have the right
to be informed concerning participation as foster
caregivers in legal and administrative actions as
authorized by law.
Effective upon signature of the governor (June
25, 2007). (Amends R.S. 46:52.1(C)(1)(b) and
286.13(1), (2), and (5))
Medicaid Fraud (Act No. 14)
New law provides that no person shall
knowingly make, use, or cause to be made or
used a false record or statement to conceal,
avoid, or decrease an obligation to pay or
transmit money or property to the medical
assistance programs (Medicaid).
New law provides that in addition to the actual
damages and the civil fines imposed, civil
monetary penalties of not less than $5,000 but
no more than $10,000 for each false or
fraudulent claim, misrepresentation, illegal
remuneration, or other prohibited acts may be
imposed on the violator.
New law provides that when a qui tam plaintiff
proceeds with the action, the court, without
limiting the status and rights of the qui tam
plaintiff, may nevertheless permit the secretary
of DHH or the attorney general to intervene at a
later date upon a showing of good cause.
New law provides that except under certain
circumstances, if the secretary or the attorney
general intervenes in the action brought by a qui
tam plaintiff, the qui tam plaintiff shall receive
at least 15%, but not more than 25%, of
recovery, exclusive of the civil monetary penalty
provided in law.
New law increases the amount a court may
award to the qui tam plaintiff to less than 15% of
recovery, exclusive of the civil monetary penalty
provided in law, if the court finds the allegations
in the qui tam action to be based primarily on
disclosures of specific information other than
information provided by the qui tam plaintiff.
New law provides that except under certain
circumstances, if the secretary or the attorney
general does not intervene in the qui tam action,
the qui tam plaintiff shall receive an amount, not
less than 25% of recovery and not to exceed
30% of recovery, which the court decides is
reasonable for the qui tam plaintiff pursuing the
action to judgment or settlement.
Effective upon signature of the governor (June
18, 2007). (Amends R.S. 46:438.3, 438.6, 439.2,
and 439.4; adds R.S. 46:438.3(H))
Coordination of Medicaid and Other Health
Insurance (Act No. 147)
New law complies with the Federal Deficit
Reduction Act of 2005 by requiring that third
party health insurers be held liable for coverage
if a Medicaid recipient has other health
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892666v.1
insurance coverage. Further specifies that the
Dept. of Health and Hospitals (DHH) can seek
reimbursement from health insurers for
Medicaid payments up to 36 months from the
date health care service was provided in such
instances.
New law provides for the definition of "health
insurer" to include a list of third parties legally
responsible for payment of a claim for a health
care item or service.
New law requires health insurers to provide
DHH with eligibility and coverage information
in order to determine the existence of third-party
coverage for Medicaid recipients.
New law requires health insurers to provide
information to determine when a Medicaid
recipient may be or may have been covered by a
health insurer and the nature of the coverage that
is or was provided.
New law recognizes the right of DHH to recover
payment from a health insurer in the event that
payment pursuant to Medicaid has been made.
New law requires health insurers to respond to
an inquiry by DHH regarding payment of a
claim for any health care item or service
submitted no later than three years after the
service has been provided.
New law provides that health insurers cannot
deny a claim submitted by DHH under certain
conditions.
New law provides that in any legal action
brought to enforce the new law, the prevailing
party is entitled to attorney fees and related
collection fees and costs.
New law specifies that a claim submitted by
DHH can be denied by a health insurer due to a
lack of preauthorization if review after a service
has been rendered indicates that the service
would have been deemed not to be medically
necessary.
Effective August 15, 2007. (Adds R.S. 46:446.6)
Louisiana Children and Youth Health
Insurance Program (Act No. 407)
New law requires that the Department of Health
and Hospitals (DHH) purchase or provide health
care benefits for children eligible for the
captioned program which are equivalent to the
benefits provided by the federal Children's
Health Insurance Program, subject to the general
appropriation act of the legislature. New law
also allows DHH to provide alternative benefits
to the equivalent benefits in certain
circumstances. New law specifies that DHH is
not required to provide Medicaid or LaCHIP
services if alternative benefits are provided.
New law provides cost-sharing requirements for
subsidized insurance for the responsible party of
a child enrolled in the program.
New law authorizes DHH to collect required
premiums from the family or responsible party
of a child enrolled in the program, notify them
of a change in a premium requirement, refuse
payment of services for nonpayment of a
premium, and monitor the availability and
retention of employer-sponsored dependent
health insurance coverage.
Effective upon signature of governor (July 10,
2007). (Adds R.S. 46:977.1-977.13)
Louisiana Health First (Act No. 243)
New law creates a health care delivery system,
known as Louisiana Health First, to provide a
continuum of evidence-based, quality driven
health care services to Medicaid recipients and
low-income uninsured citizens. New law
provides that Louisiana Health First shall consist
of a medical home system of care and shall
incorporate health information technology and
quality measures.
New law defines the "medical home system of
care" as a health care delivery system that is
patient and family centered and is guided by a
personal primary care provider who coordinates
and facilitates preventative and primary care that
improves patient outcomes in the most cost
efficient manner possible.
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New law allows DHH to establish a mechanism
to evaluate, promote, and improve the quality of
health and health care delivered to Medicaid
recipients and low-income uninsured citizens.
New law requires that DHH establish
reimbursement methodologies to compensate
providers who care for Medicaid recipients and
low-income uninsured citizens in the medical
home system of care. New law provides that the
provisions of new law shall be budget neutral or
subject to an annual appropriation of the
legislature.
New law provides for legislative oversight of
any waiver or state plan amendment that is
submitted to the Centers for Medicare and
Medicaid Services (CMS).
New law authorizes DHH to apply to CMS for
any approval necessary to implement the
provisions of the Health Care Reform Act of
2007. New law mandates that DHH implement
elements of the Health Care Reform Act of 2007
that are within the state's authority.
Effective August 15, 2007. (Amends R.S.
46:978-979)
Diabetes Initiatives Council (Act No. 418)
New law adds to the powers, duties, and
functions of the La. Diabetes Initiatives Council.
Effective August 15, 2007. (Adds R.S.
46:2617(6)(c)-(i) and (8) and 2618(B)(32))
L.A. R.S. TITLE 47: REVENUE AND
TAXATION
Tax Deduction for Bringing Home Up to
Code (Act No. 467)
New law provides a "construction code
retrofitting deduction" against taxable income
equal to 50% of the cost paid or incurred on or
after 1/1/07, by a taxpayer to voluntarily retrofit
an existing residential structure for which the
taxpayer claims the homestead exemption for ad
valorem tax purposes, excluding rental property,
to bring it into compliance with the State
Uniform Construction Code, less the value of
any other state, municipal, or federal– sponsored
financial incentives for such cost paid. New law
defines "voluntarily retrofit an existing
residential structure" as retrofitting that is not a
construction, reconstruction, alteration, or repair
of such structure required by the State Uniform
Construction Code because the structure is a
new residential structure or because of damage
or destruction of an existing residential structure.
New law provides that the total amount of the
deduction granted under new law shall not
exceed $5,000 per retrofitted residential
structure.
New law provides that the tax credit shall be
applicable to tax years beginning on and after
1/1/08.
Effective upon signature of the governor (July
11, 2007). (Amends R.S. 47:293)
Income Tax Deduction for Excess Federal
Itemized Deductions (Act No. 399)
New law phases in an individual income tax
deduction for excess federal itemized deductions
as follows:
1. For tax years beginning during calendar
year 2007, 57.5% of such excess federal
itemized personal deductions.
2. For tax years beginning during calendar
year 2008, 65%.
3. For all tax years beginning on and after
January 1, 2009, 100%.
Prior law defined "federal income tax liability"
as the total amount of tax due the U.S. for the
taxable period on the individual income tax
return required to be filed by any taxpayer,
except that social security and self-employment
taxes are not included. Prior law required that,
beginning for tax years starting in 2004, the
federal tax liability be increased by any federal
income tax credits determined to be disaster
relief credits and the amount by which an
individual's tax liability was decreased as a
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result of claiming a deduction for casualty
losses. New law removes the increase in the
Louisiana deduction for federal tax liability
because of decreases in federal taxes resulting
from a deduction for casualty losses.
Effective for all taxable periods beginning on or
after January 1, 2007. (Amends R.S. 47:293(3)
and (7); adds R.S. 47:293(2) and (6)(a)(i))
Income Tax Deductions for Various Katrina
Recovery Benefits (Act No. 247)
New law grants an individual and corporate
income tax deduction for any gratuitous grant,
loan, or other benefit directly or indirectly
provided to a taxpayer by the Road Home
Corporation, the Louisiana Recovery Authority,
or the Louisiana Family Recovery Corps if such
benefit was included in federal adjusted gross
income.
Effective upon signature of the governor (July 6,
2007) and retroactive, applying to any gratuitous
grant, loan, or other benefit directly or indirectly
provided to a taxpayer by the hurricane recovery
entities set forth above. (Amends R.S.
47:293(7); adds R.S. 47:287.738(G) and
293(6)(a)(i) and (8))
Income Tax Exemption for Military
Personnel (Act No. 160)
Prior law provided for an exemption from the
state income tax of the first $30,000 of income
paid to military personnel for active duty service
outside of the state for at least 120 consecutive
days, effective for taxable periods beginning
after 12/31/02 and ending before 1/1/08. New
law removes the expiration date for such
exemption.
Effective August 15, 2007. (Amends R.S.
47:293(6)(e); repeals R.S. 47:293(6)(f))
Free Hunting/Fishing Licenses for Military
(Act No. 306)
New law provides for an individual income tax
credit for amounts paid by active and reserve
military servicemembers and their spouses and
dependents for La. noncommercial hunting and
fishing licenses.
Effective July 1, 2007 and shall be applicable to
all taxable periods beginning on or after Jan. 1,
2007. (Amends R.S. 56:643(B); Adds R.S.
47:297.7 and 297.8)
Cultural Product Districts (Act No. 298)
New law authorizes the establishment of cultural
product districts and grants a state and local
sales and use tax exemption for works of art sold
in such districts and an income and corporate
franchise tax credit for rehabilitation of
structures in such districts.
New law provides that a "cultural product
district" shall mean a district designated by a
local governing authority for the purpose of
revitalizing a community by creating a hub of
cultural activity, including affordable artist
housing and work space.
New law authorizes a state and local sales and
use tax exemption for the sale of original, one-
of-a-kind works of art from an established
location within the boundaries of a cultural
product district.
New law authorizes a credit against income and
corporation franchise tax for the amount of
eligible costs and expenses incurred during the
rehabilitation of a historic structure located in a
cultural product district. The credit shall not
exceed 25% of the eligible costs and expenses of
the rehabilitation. New law prohibits a taxpayer
from receiving more than $5 million of credit for
any number of structures rehabilitated within a
particular district.
Effective August 15, 2007, for all taxable years
beginning January 1, 2008. (Amends R.S.
47:297.6(A)(1) and (5), 6019(A)(1)(a),
(A)(2)(a), and (B)(1); Adds R.S. 47:305.56)
Refundable Earned Income Tax Credit (Act
No. 278)
New law, relative to the individual income tax,
provides a refundable earned income tax credit
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892666v.1
for individuals in an amount equal to 3.5% of
the federal earned income tax credit for which
the individual is eligible for the taxable year
under Section 32 of the Internal Revenue Code.
New law is applicable to tax years beginning on
and after 1/1/08.
Effective January 1, 2008. (Adds R.S. 47:297.7)
Sales Tax Exclusion for Certain Utility
Equipment (Act No. 427)
New law provides for a state sales and use tax
exclusion for machinery and equipment
purchased as defined in and subject to the
requirements of R.S. 47:301(3)(i)(ii) which is
purchased by a utility regulated by the Public
Service Commission or the council of the city of
New Orleans which is assigned a North
American Industrial Classification System Code
22111, Electric Power Generation, as it existed
in 2002.
New law provides that a political subdivision
whose boundaries are not coterminous with
those of the state may provide for a sales and use
tax exclusion for machinery and equipment as
defined in and subject to the requirements of
R.S. 47:301(3)(i)(ii) which is purchased by a
utility regulated by the Public Service
Commission or the council of the city of New
Orleans.
Effective July 1, 2008. (Adds R.S.
47:301(16)(m))
Sales Tax Exclusion for Storm Shutters (Act
No. 462)
New law grants an exclusion from state sales
and use tax for the sale, purchase, or use of any
storm shutter device. Defines "storm shutter
device" as materials and products manufactured,
rated, and marketed specifically for the purpose
of preventing window damage from storms.
Effective July 1, 2007. (Adds R.S.
47:301(10)(dd) and (18)(o) and 337.10)
Annual Hurricane Preparedness Sales Tax
Holiday; Sales Tax Reduction for Recyclable
Materials Merchants (Act No. 429)
New law provides for an annual "sales tax
holiday" during the last weekend of May each
year beginning at 12:01 a.m. on Saturday and
ending at 11:59 p.m. on Sunday, affecting state
sales and use taxes on the first $1,500 of the
purchase price on the purchase of certain
hurricane-preparedness items or supplies.
New law prohibits hurricane-preparedness items
or supplies purchased at airports, public lodging
establishments, convenience stores, and
entertainment complexes from qualifying for
this sales and use tax exemption. New law
provides for the tax treatment of exempt items
sold in sets, promotional sales, exchanges,
layaways, rainchecks, and rebates.
New law authorizes a reduction in state and
local sales and use taxes to apply to certain
machinery and equipment used by a
manufacturer whose principal activity is
manufacturing and who is assigned industry
code 423930 as a recyclable material merchant
wholesaler engaged in manufacturing activities,
which must include shredding facilities.
Effective June 30, 2007. (Amends R.S.
47:301(3)(i)(ii)(bb)(I); Adds R.S. 47:305.56)
Sales Tax Exemptions for Certain Social
Projects (Act No. 430)
New law excludes, for purposes of state sales
and use tax, from the definition of "retail sale"
or "sale at retail" purchases of food items for
school lunch or breakfast programs by nonpublic
elementary or secondary schools which
participate in the National School Lunch and
School Breakfast programs or the purchase of
food items by nonprofit corporations which
serve such students and which participate in the
national program.
New law provides for a state and local sales and
use tax exemption for purchases of construction
materials by Habitat for Humanity when the
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892666v.1
materials are intended for use in constructing
residential dwellings in this state.
Effective October 1, 2007. (Adds R.S.
47:301(10)(dd) and 305.56)
Sales Tax Exclusion for Certain Pallets (Act
No. 419)
New law provides for a state and local sales and
use tax exclusion for leases or rentals of pallets
which are used in packaging products produced
by a manufacturer.
New law defines the term "manufacturer" to
mean a person whose primary activity is
manufacturing and who is assigned by the La.
Dept. of Labor a NAICS code within the
manufacturing sectors 31-33 as they existed in
2002.
Effective for all taxable periods beginning on or
after July 1, 2008. (Adds R.S. 47:301(7)(l))
Sales Tax Exclusions to Benefit Newspapers
and Radio Stations (Act No. 339)
New law defines machinery and equipment for
purposes of a certain state sales and use tax
exclusion to include machinery and equipment
used primarily to produce a news publication
whether it is ultimately sold at retail or for resale
or at no cost.
New law defines the term "manufacturer" to
mean a person whose principal activity is
manufacturing and who is not required to
register with the Dept. of Labor for purposes of
unemployment insurance, but who has a NAICS
code within the information Sector 51 or the
manufacturing Sectors 511-511110 as they
existed in 2002.
New law provides for an exclusion from state
sales and use tax for machinery and equipment
purchased by the owner of a radio station
located within the state that is licensed by the
FCC for radio broadcasting, if the owner is:
1. An individual domiciled in the state who
owns a business with substantially all of its
assets located in the state and substantially all of
its payroll paid in the state, or
2. A business entity with substantially all
of its assets located in the state and substantially
all of its payroll paid in the state, provided that
the business entity is not (a) owned or controlled
or is otherwise an affiliate of a multi-state
business entity; and (b) is not owned or
controlled by an individual who is not domiciled
in the state.
Effective July 1, 2007. (Amends R.S.
47:301(3)(i)(ii))
No Sales Tax on Offshore Drilling Rig
Repairs (Act No. 173)
Prior law [R.S. 47:305(I)] "exempted" from state
and local sales tax labor and property used in the
repair, renovation or converting of any drilling
rig, or machinery and equipment which are its
component parts, if the rig is "used exclusively"
for the exploration or development of minerals
in OCS waters. However, prior law "suspended"
all sales tax "exemptions" for all four cents of
the sales tax - three cents suspended until 7/1/09,
one cent permanently, unless the exemption is
excluded from the "suspension." New law, in
effect, places the "suspended" exemption for
drilling rigs and their component parts in the law
as an "exclusion" (and therefore not
"suspended"), thus making it effective.
New law also makes changes to sales and use
tax laws that are specific to particular parishes.
Effective upon signature of the governor (June
27, 2007). (Amends R.S. 47:301(14)(g)(i); adds
R.S. 47:301(14)(g)(iii) and 337.10(L))
Sales Tax Exemption Numbers for Political
Subdivisions (Act No. 162)
New law requires the Department of Revenue,
upon request by any political subdivision for a
sales/use tax exemption identification number,
to issue such number.
Effective August 15, 2007. (Amends R.S.
47:301(8)(c))
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892666v.1
Sales Tax Exclusion for Auto Makers (Act
No. 1)
New law provides for a state sales and use tax
exclusion for machinery and equipment by a
motor vehicle manufacturer with a North
American Industry Classification System
(NAICS) Code beginning with 3361. New law
also provides that political subdivisions may
provide for an exemption of such equipment.
Effective upon signature of governor (May 31,
2007). (Adds R.S. 47:301(16)(m))
Sales Tax Exclusions for Newspapers and
Steelworks (Act No. 480)
New law excludes newspapers from the
definition of "tangible personal property" for
purposes of sales and use taxes imposed by the
state and its political subdivisions, thereby
excluding newspapers from the collection of
such taxes.
New law would make the sales and use tax
exemption suspension for steelworks and blast
furnaces effective for all taxable periods
beginning on or after July 1, 2007.
Effective August 15, 2007, for all taxable
periods beginning on or after July 1, 2008.
(Amends R.S. 47:302(S), 321(I), and 331(Q);
Adds R.S. 47:301(16)(m); Repeals R.S.
47:305(D)(1)(e) and 337.9(C)(10))
Sales Tax Exemption for Certain Steelworks
(Act No. 439)
New law provides that the sales and use tax
exemption provided for purchases of utilities by
certain steelworks and blast furnaces with more
than 125 full-time employees, including certain
coke ovens and rolling mills, shall be applicable,
operable, and effective indefinitely.
Effective July 1, 2007. (Amends R.S. 47:302(S),
321(I), and 331(Q))
Sales Tax Exemptions for Certain Farming
Items (Act No. 424)
New law provides that the state sales tax
exemption for irrigation wells, drives, motors,
and equipment shall be applicable, operable, and
effective indefinitely starting July 1, 2007.
New law provides that the state sales tax
exemption for the gross proceeds derived from
the sale in this state of livestock at public sales
sponsored by breeders' or registry associations
or livestock auction markets shall be applicable,
operable, and effective indefinitely starting July
1, 2007.
Effective July 1, 2007. (Amends R.S. 47:302(R)
and 321(H); Adds R.S. 47:331(P)(3))
Sales Tax Exclusion for Paper and Wood
Products Manufacturers (Act No. 471)
New law permanently excludes from state sales
tax natural gas and electricity purchased and
used by paper or wood products manufacturing
facilities beginning 7/1/07.
Effective July 1, 2007. (Amends R.S.
47:301(3)(j) and (13)(m); adds R.S. 47:305.56
and 337.9(D)(28); repeals R.S. 47:302(T),
321(J), and 331(R))
Sales Tax Exclusion for Glasses and Contacts
(Act No. 463)
New law exempts from state sales and use tax
prescription eyeglasses and contact lenses.
Effective July 1, 2007. (Amends R.S.
47:305(D)(1)(k))
Sales Tax Exemption for Off-Road Vehicles
Purchased by Non-Residents (Act No. 291)
New law provides that the purchaser of an off-
road vehicle who, at the time of purchase,
presents proof to the seller that he is domiciled
in another state and signs an affidavit indicating
he has paid or will pay the sales and use tax on
the off-road vehicle in the state in which he is
domiciled within 60 days of purchase or delivery
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892666v.1
of the vehicle, whichever is later, shall be
exempt from state sales and use taxes in
Louisiana if the state in which the buyer is
domiciled provides a similar exemption.
Effective October 1, 2007. (Amends R.S.
47:303(E)(1) and 304(A); Adds R.S. 47:305.56)
Annual Sales Tax Holidays (Act No. 244)
Prior law enacted the 2005 Louisiana Sales Tax
Holiday Act which exempted from state sales
tax the first $2,500 of any consumer purchase of
tangible personal property that occurred on
December 16, 17, and 18, 2005.
Prior law excluded from the exemption the
purchase of vehicles subject to license and title
and meals furnished for consumption on the
premises where purchased, including to-go
orders.
New law establishes the annual La. Sales Tax
Holidays to exempt from state sales tax each
year the sales to consumers, in the same manner
as is provided in the prior law, on the first
consecutive Friday and Saturday of August each
year.
Effective upon signature of the governor (July 6,
2007). (Amends R.S. 47:305.54)
Sales Tax Exemption for Containerized
Cargo Trucks (Act No. 209)
New law provides that state and local sales and
use taxes shall not apply to the purchase, use, or
lease of certain qualifying trucks and trailers
used to haul containerized cargo to intermodal
facilities.
New law requires that, prior to the
commencement of an audit or investigation and
prior to an examination or investigation of the
place of business of any taxpayer, the auditor
shall submit written justification of such audit or
investigation to the secretary of the Dept. of
Revenue. However, the approval of the secretary
of the Dept. of Revenue is not needed prior to an
audit, examination, or investigation conducted
by a political subdivision in order to determine
the correct amount of a tax exemption.
Effective upon signature of governor (June 29,
2007). (Amends R.S. 47:305.50)
Advance Sales Tax (Act No. 393)
New law reduces the amount of sales necessary
for a retail dealer to be exempt from payment of
advance sales tax to manufacturers, wholesalers,
jobbers and suppliers from $3 million to
$500,000, effective 1/1/08.
New law prohibits, effective 1/1/09, the
collection of "advance sales tax" by the state and
any parish, municipality, school board, and any
other tax authority.
New law authorizes a deduction for certain
amount of tax paid by dealers to manufacturers,
wholesalers, jobbers, and suppliers.
Parts of Act effective January 1, 2008 and parts
effective January 1, 2009. (Amends R.S.
47:306(B)(1)(a) and (11) and 337.18(B)(1); adds
R.S. 47:306(A)(6) and (7) and 337.18(A)(6);
repeals R.S. 47:306(B) and (C) and 337.18(B)(2)
and (3))
Sales Tax Exclusion for Certain Charitable
Institutions (Act No. 464)
New law grants an exemption to "qualified
charitable institutions" from state sales tax on
the sale of donated tangible personal property or
items made from such donated property. If such
institutions submit an application to the
secretary of DOR, they receive the exemption in
the form of a "restricted" refund of the sales tax
which the institution has collected on such sales.
However, the refund must be used exclusively in
this state for capital construction, or equipment,
or debt service related thereto, and/or job
training, job placement, employment or other
related community services program and support
program costs.
"Qualified charitable institution" is defined as an
organization which meets various criteria,
including that it spends at least 75% of its annual
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revenue on job training, job placement, the
direct employment of, or other related
community services programs and support
programs for, people with workplace disabilities
or disadvantages.
Effective January 1, 2008. (Adds R.S. 47:315.5)
Sales Tax Exclusion for Farming Items (Act
No. 245)
New law gives political subdivisions the option
to grant an exclusion from their taxes for any
machinery, equipment, supplies, materials, or
services used or consumed in the business of
farming.
Effective July 1, 2007. (Amends R.S.
47:337.10(I))
Occupational License Tax for Retail Gas
Dealers (Act No. 426)
New law provides that for every fixed location
retail dealer in gasoline or other motor fuel, the
occupational license tax shall be computed
based on the amount of gallons of gasoline or
motor fuel sold and the amount of gross sales of
merchandise, services, and rentals. The
maximum sum of the tax shall not exceed
$6,200.
New law eliminates the prior law deduction for
retail gasoline filling and service stations which
excludes from "gross sales" the portion of the
purchase price paid by the filling and service
stations equal to the federal and state dealer's
license, privilege, or excise tax paid on gasoline,
motor fuels, or lubricating oils.
Effective for all taxable periods beginning on or
after January 1, 2008. (Amends R.S. 47:361(A);
Adds R.S. 47:354.1)
Gasoline and Diesel Fuel Taxes (Act No. 303)
New law requires that a tax be imposed on the
sale or transfer of gasoline or undyed diesel fuel
in the bulk transfer/terminal system in this state
by a supplier to a person who does not hold a
Louisiana supplier or permissive supplier
license.
New law clarifies the definition of a "supplier"
and adds that a supplier is a person registered
under applicable federal law as a producer of
agri-biodiesel, biodiesel, or alcohol.
New law provides that an industrial user is any
person who receives gasoline blend stocks for
their own use in the manufacture of any product
other than finished gasoline. New law further
clarifies the definition of liquefied petroleum
gas.
New law adds an exemption for gasoline blend
stocks or undyed kerosene as feedstock received
by a licensed supplier or permissive supplier
under certain conditions.
New law adds an exemption for gasoline blend
stock or undyed kerosene as feedstock received
by a qualified purchaser from a licensed supplier
or permissive supplier if the gasoline blend stock
will be used for purposes other than producing
gasoline or the undyed kerosene will be used as
a feedstock for purposes other than as a motor
fuel.
New law exempts persons dealing solely in tax
and fee paid product below the terminal rack
from being required to obtain a license.
However, in order for an applicant to make a
claim for a refund of taxes paid, the applicant
shall be licensed.
New law decreases the minimum amount of the
surety bond for a supplier and permissive
supplier from $2 million to $50,000 and
provides that for a terminal operator license, the
amount of the bond shall be a minimum of $1
million or an amount equal to three months tax
liability, whichever is greater, and only one
surety bond shall be required for a terminal
operator that is also a supplier.
New law clarifies a conflict in existing law
concerning the refund for three-fourths of the
gasoline or special fuels tax for contract drivers
of privately owned school buses.
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Effective upon signature of governor (July 9,
2007). (Amends R.S. 47:715.1(B), 818.2,
818.13(C), 818.15(A)(1), 818.37, 818.40; Adds
R.S. 47:818.2(38.1), 818.14(E) and (F), and
818.40(A)(5))
Special Gas Tax Exemption (Act No. 181)
New law provides for a gasoline tax exemption,
until June 30, 2012, for gasoline sold to a
manufacturer which will use the gasoline in the
manufacture of a premixed two-cycle engine
fuel containing gasoline and oil sold in
containers of one gallon or less.
Effective for all taxable periods beginning on or
after July 1, 2007. (Adds R.S. 47:818.14(A)(4))
Tobacco Tax on Foreign Dealers (Act
No. 474)
Existing law provides a tobacco tax discount of
6% to cigarette dealers affixing stamps.
New law requires the secretary of revenue to
allow wholesale tobacco dealers of other states
serving a trade area of retail dealers in this state
who have a direct purchasing contract with a
manufacturer to sell and purchase stamps in this
state with the benefit of the discount, provided
the discount cannot be greater than that which is
extended to the wholesale tobacco dealer by
their state of domicile and in any event shall not
exceed 6%.
Applicable to taxable periods beginning on and
after 9/1/07.
Effective August 15, 2007. (Amends R.S.
47:843(B) and (F) and 851(B)(1) and (2)(b))
Utility Tax Exemption for Household Goods
Carriers (Act No. 465)
Prior law levied a tax on public utilities of 2% of
the gross receipts derived from intrastate
business, and defined "public utility" as railroads
and railways, sleeping cars, motor bus lines,
motor freight lines, express companies,
telegraph companies, boat or packet lines, and
pipe lines.
New law redefines "motor freight lines" and
"gross receipts," thereby exempting household
goods carriers from the tax.
Effective upon signature of the governor (July
11, 2007). (Amends R.S. 47:1003)
Tax Credits for Motion Picture Investors (Act
No. 456)
Existing law provides for a motion picture
investor tax credit for "state-certified
productions" and "state-certified infrastructure
projects". New law designates and ratifies the
office of entertainment industry development in
the Department of Economic Development,
("DED"), to administer the program since
August 15, 2006.
New law consolidates the prior tax credit into
one 40% tax credit for a base investment in
excess of $300,000 lasting until January 1, 2009,
for "state-certified infrastructure projects" which
meet the criteria provided for in new law and
which are approved by the office, the secretary
of DED, and the division of administration,
provided that the total tax credit allowed for any
one project cannot exceed $25 million. The tax
credit must be "earned" and may be "structured"
as provided for in new law.
New law provides that the initial certification for
state-certified productions shall be effective for
a period of 12 months prior to and 12 months
after the date of initial certification, unless the
production has commenced, in which case the
initial certification shall be valid until the
production is completed.
New law redefines "state-certified infrastructure
project" to mean a film, video, television, and
digital production and postproduction facility,
and movable and immovable property and
equipment related thereto, or any other facility
which supports and is a necessary component of
such proposed state-certified infrastructure
project, all as determined and approved by the
office of entertainment industry development,
the secretary of DED, and the division, but
excludes of movie theaters or other commercial
exhibition facilities in existing law.
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New law requires the approval of an
infrastructure project if it is a film, video,
television, or digital production or
postproduction facility.
New law provides that the tax credits for
infrastructure projects can be "earned" only by
meeting certain criteria.
New law authorizes "recapture" of infrastructure
tax credits in the event the time limits are not
complied with.
New law allows the office, the secretary, and the
division to require the tax credits to be taken
and/or transferred in the tax period in which the
credit is "earned" or allows the credit to be
structured in the "initial certification" of the
project to provide that only a portion of the tax
credit be taken or transferred over the course of
two or more tax years.
New law provides that the "intention" of new
law is that the approvals of the division required
by new law and the other requirements for state-
certified infrastructure projects in R.S.
47:6007(C)(2) are required for any state-
certified infrastructure project which has not
received "initial certification", regardless of the
date the infrastructure project applied for the tax
credit.
New law designates the office of entertainment
development and the secretary of DED as the
main administrators of the production credits.
New law specifies that a production credit ends
when another production credit begins.
New law provides that the approvals and
requirements for state-certified infrastructure
projects as provided for in new law shall be
required for any state-certified infrastructure
project which has not applied for initial
certification or pre-certification prior to August
1, 2007.
New law provides that an application for an
infrastructure project filed on or before August
1, 2007, shall have 24 months from the date of
approval of the rules or January 1, 2008,
whichever is earlier, in which to claim the 40%
tax credits. Further requires the credits to be
considered earned in the year made, provided
that a minimum of 20% or $10 million of the
total base investment provided for in the initial
certification that is unique to film production
infrastructure shall be expended before
infrastructure tax credits can be earned on
expenditures. The payment of credits may
extend beyond or after the year expenditures are
made.
Effective July 1, 2007. (Amends R.S. 36:107(A)
and 109(J) and R.S. 47:1123(10), 1125(C)(3),
and 6007)
Gift Tax Repeal; Inheritance Tax Refunds;
Tax Credits for Residential Insurance
Premiums and Wind or Solar Energy
Systems (Act No. 371)
New law repeals the state gift tax effective
7/1/08.
Prior law repealed the tax on inheritances for
deaths occurring after 6/30/04 unless a judgment
of possession is not rendered or the succession is
not judicially opened before the last day of the
ninth month following the death of the decedent.
New law deletes this provision and allows a
refund for tax paid on deaths occurring after
6/30/04 if a claim is made between 1/1/08 and
12/31/09.
New law amends R.S. 47:297.7(A) as enacted in
HB 678 of 07 RS to specify that the refundable
individual income tax credit provided in that bill
for 7% of premiums paid for homeowners',
condominium owners', or tenant homeowners'
insurance policies is applicable to tax years
beginning during 2008 only.
New law provides a refundable and transferable
wind or solar energy system tax credit against
individual and corporate income tax for the cost
of purchase and installation of a wind or solar
energy system by a resident individual at his
residence located in this state or by the owner of
a residential rental apartment project. Provides
that the credit may be claimed in cases where an
individual purchases a newly constructed home
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with such a system already installed or where
such a system is purchased and installed at an
existing home, or where such systems are
installed in new or existing apartment projects.
New law provides that the credit shall be equal
to 50% of the first $25,000 of the cost of each
wind or solar energy system, including
installation costs, that is purchased and installed
on or after 1/1/08. The credit may be used in
addition to any federal tax credits earned for the
same system.
Provisions regarding gift tax, inheritance tax,
and wind or solar energy systems tax credit are
applicable to tax years beginning on and after
1/1/08.
Effective upon signature of the governor (July
10, 2007). (Amends R.S. 47:2401(B) and CCP
Art. 2953(C)(1); adds R.S. 47:297.7(A) and
2451(A)(5) and 6026; repeals R.S. 47:1201-
1212)
Tax Sales of Property Not Divisible in Kind
(Act No. 195)
New law provides, relative to tax sales of
property for satisfaction of ad valorem taxes,
that if the tax collector determines from the
description of the property contained on the
assessment rolls that it is not divisible in kind,
he shall then sell immediately the least quantity
of property which any bidder will buy for the
amount of the taxes, interests, and costs.
Effective upon signature of governor (June 27,
2007). (Amends R.S. 47:2184)
Tax Equalization Contracts (Act No. 389)
Existing law authorizes the Board of Commerce
and Industry to enter into tax equalization
contracts with manufacturing establishments,
headquarters, or warehousing and distribution
establishments, under which contracts such
businesses are granted exemption from excise
taxes imposed by the state (not property taxes).
Prior law further provided each contract of
exemption entered into shall be reviewed and
reevaluated, and shall be subject to
renegotiation, five years from the date of the
execution of the contract and may be renewed
for an additional five-year period, provided that
the total number of years of exemption shall not
exceed 10 years.
New law removes the 10-year limitation and
provides that at the discretion of the Board of
Commerce and Industry, subsequent renewals
for additional five-year or less periods may be
granted if the applicant can demonstrate the
conditions of the initial contract were met and
the activities of the applicant in the state of
Louisiana generate economic benefits to the
state that exceed 20 times the benefit to the
applicant of the incentive provided by existing
law for the year preceding the request for
renewal.
New law requires the Board of Commerce and
Industry to forward its recommendations,
together with the proposed contract and all
supporting documents, to the Department of
Economic Development and the Joint
Legislative Committee on the Budget. The
committee has 30 days to approve or reject the
renewal contract.
Effective upon signature of the governor (July
10, 2007). (Amends R.S. 47:3204(B)(1) and
4302(B))
Tax Credits for Investments in Low-Income
Areas (Act No. 379)
New law grants a non-refundable income and
corporate franchise tax credit to a taxpayer who
holds a "qualified equity investment" on certain
"credit allowance dates" if the "qualified equity
investment" is in "qualified low-income
community investments" on the "credit
allowance date."
New law increases the credit percentage from
1% of the first three "credit allowance dates" to
10% of the first two, and from 2% of the
remaining four to 5% of the remaining one.
New law caps the tax credit amount of
"investments issued to taxpayers" after the date
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the new law becomes effective at $50 million
"over the life of the program."
New law defines "qualified low-income
community business" the same as in Section
45D of the IRC - (i.e. 50% of gross income
earned in the active conducting of a business,
use of substantial portion of its property, or a
substantial portion of its performance is in a low
income area) and "qualified business" the same
as in such Section, and specifically includes
otherwise qualified businesses located in any
special GO Zone Targeted Population or
"similar census tract" approved as eligible for
receipt of qualified low-income community
investments under 45D of the IRC.
New law authorizes the Department of Revenue
to recapture some of the state tax credits under
certain conditions.
New law provides for the manner in which
various entities may claim the credit. New law
authorizes the transfer of unused credits and
provides for a procedure to do so.
New law provides that credits shall be allowed
for qualified equity investments invested in
qualified low-income community investments
made on and after the earlier of the effective
date of the new law, or 7/1/07, until 12/31/12.
New law, relative to the new markets tax credit,
provides that the changes in the new law are not
applicable to "qualified equity investments"
issued prior to 7/1/07 - which are eligible for
credits in accordance with provisions of prior
law.
Effective upon signature of the governor (July
10, 2007) or July 1, 2007, whichever occurs
first. (Amends R.S. 47:6016)
Tax Credits for Buying Inmate-Made
Clothing (Act No. 466)
New law extends indefinitely the tax credit
against corporate and personal income taxes and
corporate franchise tax for any individual or
business which purchases "specialty apparel
items" including, but not limited to industrial
clothes, uniforms, and scrubs, from a contractor
in a certified Private Sector/Prison Industry
Enhancement Program which employs inmates
of Louisiana correctional institutions to
manufacture such apparel.
Effective upon signature of the governor (July
11, 2007). (Amends R.S. 47:6018)
Tax Credits for Musical and Theatre
Productions and Facilities (Act No. 482)
Extremely detailed new law provides five types
of corporate or individual refundable income tax
credits for "state-certified musical or theatrical
productions" and for "state-certified musical or
theatrical facility infrastructure projects."
"Musical or theatrical production" is defined as
producing, rehearsing, marketing,
administration, recording, performing and/or
filming of a live musical or theatrical
performance in the state before live audiences
the costs of which are not certified for other tax
credits provided for in Louisiana law, whether or
not there is a charge for admission. Such
performances include, but are not limited to
drama, comedy, comedy revue, opera, ballet,
jazz, cabaret and variety entertainment.
A "state-certified musical or theatrical
production" is defined as such a production, or a
series of productions occurring over the course
of a 12-month period, and the recording or
filming of such production, which originate, are
developed, or have their initial public
performance before a paying audience within
Louisiana, or which have their United States
debut within Louisiana.
"State-certified musical or theatrical facility
infrastructure project" is defined as a capital
infrastructure project in the state directly related
to the production or performance of musical or
theatrical productions, and movable and
immovable property and equipment related
thereto, or any other facility which supports and
is a necessary component of such facility, and
any "expenditures in the state" related to the
construction, repair, or renovation of such
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project, which are certified, verified, and
approved as provided for in the new law.
A "base investment credit" is authorized for
"production expenditures" for a "state certified
musical or theatrical production," or for
investments made by a person in such
production which are, in turn, expended for such
production expenditures.
The credit includes "production expenditures,"
expenditures for the payroll of residents,
"transportation expenditures," and expenditures
for employing college and vo-tech students
related to such production or productions, that
are "certified, verified, and approved" as
provided for in the new law.
Until 1/1/14 and under certain conditions, a
"base investment credit" may be granted for
"expenditures in the state" for the construction,
repair, or renovation of a "state-certified musical
or theatrical facility infrastructure project," or
for investments made by a financier in such
infrastructure project which are, in turn,
expended for such construction, repair, or
renovation. The credit cannot exceed $10
million per project.
New law provides that no more than $60 million
in tax credits shall be granted for infrastructure
projects per year, granted on a first-come, first-
served basis. If total credits applied for exceed
this amount, the excess is treated as having been
applied for on the first day of the next year.
New law provides that 50% of the tax credits
granted under new law for infrastructure projects
are to be "reserved" for projects located outside
of Jefferson and Orleans parishes, but prohibits
credits granted for projects within those parishes
from being "conditioned" upon the granting of
tax credits for projects outside of those parishes.
"Expended in the state" for both productions and
infrastructure projects is defined as expenditures
for tangible property to be used within the state;
and in the case of services, expenditures for
services performed within the state; and in the
case of "intangible property," means the
acquisition of permits, licenses, or other rights
related to such productions or infrastructure
projects used within the state.
Subject to the limitations on the credit for
infrastructure projects, the "base investment
credit" provides income tax credits ranging from
10% to 25% of the base investment, depending
on its amount.
"Base investment" is defined for infrastructure
projects as "expenditures in the state" for the
construction, repair, or renovation of a state-
certified musical or theatrical facility
infrastructure project.
"Base investment" is defined for productions as
expenditures or investments made by a person
for "production expenditures" for a state-
certified musical or theatrical production. Such
"production expenditures" are defined as
development, production, or operating
"expenditures in this state" for a state-certified
production.
New law grants an additional transportation
expenditure credit for large percentages of
certified, verified, and approved "transportation
expenditures"; provided that transportation
services are purchased through a company
which has a significant business presence in the
state.
New law grants an additional tax credit of one
tenth of one percent of the amount expended to
employ students enrolled in Louisiana colleges,
universities, and vo-tech schools in a state-
certified production in arts-related positions,
such as actor, writer, producer, stage hand, or
director, or as a technician working on aspects of
the production such as lighting, sound, and
actual stage work, or working indirectly on the
production in accounting, law, management, and
marketing.
New law grants an additional tax credit of 10%
of base investment that is expended on payroll
for Louisiana residents employed in connection
with a state-certified musical or theatrical
production, except for the students, or the
construction of a state-certified musical or
theatrical facility infrastructure project.
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However, the additional credit may not include
any amount paid to any one person that exceeds
$1 million.
New law provides that the credit is allowed
against individual or corporate income tax of the
"companies" or "financiers" of the production or
infrastructure project in accordance with their
share of the credit as provided for in the
application for "certification" for the production
or infrastructure project. New law authorizes the
transfer of the credit on a one-time basis, and/or
any refund of an overpayment, to an individual
or other entity, provided that the transfer is not
effective until receipt by the Department of
Revenue.
New law provides that the secretary of the
Department of Economic Development, the
commissioner of administration, and the office
of the governor determines which productions
and which infrastructure projects are to be
"certified."
Prior to "final certification" of a production or
infrastructure project, the applicant must submit
to DED a report of the final amount of
qualifying expenditures, which report DED may
require to be prepared by an independent CPA.
DED must review the report and, upon the
consent of the commissioner and the office of
the governor, issue a "final tax credit
certification letter," certifying the applicant and
indicating the type and amount of tax credits for
which the applicant or other companies or
financiers are eligible. An applicant is required
to reimburse DED for any audits required in
relation to granting the certification or tax
credits.
New law provides that if funds for which credits
were received were not expended for
"production expenditures" or were not
"expended in the state" for an infrastructure
project, then the taxpayer's income tax for such
taxable period must be increased by the amount
necessary for the recapture of the credit.
Effective upon signature of the governor (July
19, 2007) and applicable to expenditures
incurred after that date. (Adds R.S. 47:6026)
Tax Credits for Employers of Apprentices
(Act No. 472)
New law grants employers, for all taxable
periods beginning after 12/31/07 and ending
prior to 1/1/11, a non-refundable "apprenticeship
tax credit" against any income tax or franchise
tax each tax year equal to $1.00 for each hour of
employment of each "eligible apprentice," not to
exceed 1,000 hours for each eligible apprentice.
An "eligible apprentice" is defined as a person
who has entered into a written apprentice
agreement with an employer or an association of
employers pursuant to a registered
apprenticeship program as provided for in prior
law or a person who is enrolled in a training
program accredited by the National Center for
Construction Education and Research which has
no less than four levels of training and no less
than 500 hours of instruction.
Effective upon signature of the governor (July
11, 2007) and applicable to hours of
employment of eligible apprentices on and after
January 1, 2008. (Adds R.S. 47:6026)
Tax Credits for Milk Producers (Act No. 461)
New law provides that a resident taxpayer
engaged in the business of producing milk for
sale shall be allowed a refundable income or
corporation franchise tax credit based on the
amount of milk produced and sold.
New law provides that the credit for each
producer shall not exceed $30,000 per calendar
year, and the total aggregate amount of tax
credits for all producers shall be capped at
$2,500,000 per calendar year.
Effective for all taxable periods beginning on or
after Jan. 1, 2007. (Adds R.S. 47:6026)
Tax Credits for Angel Investors (Act No. 445)
New law specifies that the Angel Investor Tax
Credit is a refundable tax credit.
Effective August 15, 2007. (Amends R.S.
47:6020.1(A) and 6020.2(A)(1))
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Tax Credits for Voluntary Remediation of
Brownfields (Act No. 392)
New law increases the state income tax credit
from 15% of the total investment made to 50%
of the total investment made by a taxpayer in
voluntary remediation at a state-certified
brownfield site.
New law deletes prior law provision allowing
the tax credit upon the date of completion of the
investigation or remediation and allows credits
to be applied when expenditures for remediation
are certified by the secretary of DEQ.
New law changes the procedure for applying for
and obtaining approval of the credits.
New law clarifies that no corporation or
partnership including any company owned,
affiliated, or controlled, in whole or in part, by
any company or person that is a responsible
person is eligible for a brownfields tax credit.
New law provides for the transferability or sale
of unused tax credits to another Louisiana
taxpayer.
New law provides that no tax credits may be
granted after 12/31/09; however, the
transferability provisions may continue to be
effective after 12/31/09 for tax credits
authorized prior to that date.
The Act is effective for taxable periods
beginning on or after 1/1/08.
Effective August 15, 2007. (Amends R.S.
47:6021
Tax Credits for Sound Recording Investors
(Act No. 368)
Prior law authorized the granting of refundable
sound recording investor income tax credits for
investments made in state-certified productions
and state-certified musical recording
infrastructure projects until 1/1/08, with a limit
upon the aggregate amount of tax credits
certified for all investors during any calendar
year of $3 million. Investors are allowed the
following credits: 10% if the total "base
investment" is greater than $15,000 and less than
or equal to $150,000; 15% if greater than
$150,000 and less than or equal to $1,000,000;
20% if greater than $1,000,000.
New law extends the 1/1/08 termination date to
1/1/10.
New law further allows investors a tax credit of
25% of base investment in excess of $15,000 for
productions and infrastructure projects certified
on and after 7/1/07.
New law requires DED to approve within 180
days of receipt of a complete application for
initial certification of an infrastructure project or
production.
Effective upon signature of the governor (July
10, 2007). (Amends R.S. 47:6023(B); R.S.
47:6026(B)(1) as enacted by that Act which
originated as SB 9 of 07 RS)
Claim Form for Tax Credit for Emergency
Assessments (Act No. 382 of 2006 2nd
Extraordinary Session)
Prior law provided for a refundable tax credit
from individual and corporation income taxes
for the amount of surcharges, market
equalization charges, or assessments paid by a
taxpayer during the taxable year as a result of
the 2005 regular or the emergency assessments
levied due to hurricanes Katrina and Rita by La.
Citizens Property Insurance Corporation.
Prior law further provided that assessment
amounts paid on or after 1/1/07, be claimed and
allowed on the first income tax return that is due
in the year after the payment. New law instead
provides that these assessment amounts be
claimed and allowed on a form provided by the
secretary after the payment is made.
Effective upon signature of the governor (July
10, 2007). (Amends R.S. 47:6025(A)(3))
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Tax Credits for La. Citizens Property
Insurance Corporation Assessments (Act
No. 4)
New law provides for a refundable tax credit
from individual and corporation income taxes
for the amount of surcharges, market
equalization charges, or assessments paid by a
taxpayer during the taxable year as a result of
the 2005 regular or emergency assessments
levied due to Hurricanes Katrina and Rita by La.
Citizens Property Insurance Corporation for the
FAIR Plan and Coastal Plan.
New law provides that the credit shall be
applicable to all taxable periods beginning on or
after Jan. 1, 2006.
Effective upon signature of the governor (Dec.
21, 2006). (Adds R.S. 47:6025)
Community Development Corporations and
Related Financial Institutions (Act No. 374)
New law provides for the formation of certified
community development corporations and
certified community development financial
institutions, provides the requirements for each,
provides the criteria for certification by the
Department of Economic Development, and
provides for tax credits for donations,
contributions or sales below cost to same.
Effective upon signature of the governor (July
10, 2007). (Adds R.S. 33:130.731-737 and R.S.
47:6026)
Sugarcane Hauling Permits and Tax Credits
(Act No. 365)
Existing law requires the secretary of the
Department of Transportation and Development
(DOTD), provided there are no objections from
the federal government, to issue annual special
permits to persons who own or operate trucks
which haul sugarcane at a gross vehicle weight
not to exceed 100,000 pounds. Provides that
such permits may be issued to either the pulling
unit or the trailer contained in the combination
which shall have a minimum of 18 wheels.
Existing law prohibits the secretary of DOTD
from issuing any annual special permits to any
owner or operator of a vehicle hauling sugarcane
who has not added an additional single axle on
the sugarcane trailer for a total of six axles for
the vehicle and trailer combination, beginning
8/1/10.
New law extends the date until which the DOTD
may continue to issue certain sugarcane hauling
special permits to 8/1/12.
New law allows a refundable tax credit for either
the acquisition of a sugarcane trailer that is
eligible for a special permit which replaces an
ineligible sugarcane trailer or for conversion of
an ineligible trailer to an eligible trailer.
New law provides that the tax credit is
applicable to La. income taxes or corporate
franchise taxes. The amount of the credit is
$8,500 per trailer for amounts paid in 2008. The
amount decreases by $500 each year through
2012; no credit is allowed for costs paid after
1/1/13.
New law provides that the provisions pertaining
to tax credit for conversion or acquisition of
trailers which haul sugarcane shall apply to the
cost of conversion or modification of eligible
sugarcane trailers paid on or after 1/1/09.
Effective upon signature of the governor (July
10, 2007). (Amends R.S. 32:387.7(B); adds R.S.
47:6026)
Tax Credits for Mentors (Act No. 356)
New law defines a "mentor" as a business
committed and able to provide professional
guidance and support to a protégé business to
facilitate the protégé's development and growth.
New law defines a "protégé" as a business
certified active in the Dept. of Economic
Development's (DED) Small and Emerging
Business Development Program or that is
registered in the state's small entrepreneurship
program and is the recipient of developmental
assistance pursuant to a Mentor-Protégé
Agreement.
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New law defines a "Mentor-Protégé Agreement"
as a written agreement between the mentor and
protégé, approved by DED, that includes an
assessment of the protégé's needs, a description
of the specific assistance that the mentor will
provide to address those needs, the term of the
agreement, and establishes the amount of the tax
credit.
New law provides that in order to qualify for a
mentor tax credit, each mentor shall possess a
favorable financial health, shall demonstrate its
capability to provide managerial or technical
skills transfer or capacity building, and must
meet the goals and objectives of the Mentor-
Protégé Agreement.
New law provides that a mentor may be granted
a refundable credit on any income or corporation
franchise tax liability owed to the state by the
mentor. The amount of the refundable credit
shall be established by DED; however, the
maximum amount of tax credits available under
any one Mentor-Protégé Agreement shall not
exceed $50,000.
New law prohibits tax credits granted by DED in
any fiscal year to exceed $1 million. New law
authorizes DED to recapture credits under
certain circumstances.
New law provides penalties for any person
making a false or fraudulent application or claim
for a mentor-protégé tax credit. Further provides
that any person convicted of a violation of new
law shall be liable for the repayment of all
credits which were granted to that person.
Effective August 15, 2007 for all income tax
years beginning on or after January 1, 2007, and
franchise tax years beginning on or after January
1, 2008. New law shall become null and void on
December 31, 2011. (Adds R.S. 47:6026)
Tax Credits for Small Business Inventories
(Act No. 357)
New law provides for a refundable Louisiana
income or corporation franchise tax credit for
the amount of any overpayment made by a
taxpayer with gross receipts from business of
$500,000 or less as a result of failing to claim
any inventory tax credit for each tax year from
1999 through 2002 for income taxes, and for
each tax year from 2000 through 2003 for
corporation franchise taxes. The credit not
previously claimed for these tax years may be
claimed on amended returns until December 31,
2007.
New law is limited to $10,000 per taxpayer and
there can be no more than $500,000 of total
credits granted.
Effective August, 15, 2007. (Adds R.S. 47:6026)
Sales Tax on Telecommunications (Act
No. 358)
New law conforms the state sales tax on
telecommunications to the definitions from the
Streamlined Sales Tax Agreement.
New law provides that any sale of a prepaid
calling service or prepaid wireless calling
service, or both, shall be deemed to be the sale
of tangible personal property.
New law provides that prepaid calling services
and prepaid wireless calling services shall be
subject to the sales tax if the sale takes place in
this state. If the customer physically purchases a
service at the vendor's place of business, the sale
is deemed to take place there. If the customer
does not physically purchase the service at the
vendor's place of business, the sale is deemed to
take place at the first of the following locations
that applies to the sale: (1) the customer's
shipping address, if the sale involves a shipment;
(2) the customer's billing address; (3) any other
address of the customer that is known by the
vendor; or (4) the address of the vendor or,
alternatively in the case of a prepaid wireless
calling service, the location associated with the
mobile telephone number.
New law provides that, with certain exceptions,
telecommunications services sold on a call-by-
call basis shall be subject to the state sales and
use tax if: (1) the call both originates and
terminates in this state; or (2) the call either
originates in this state or terminates in this state
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and the service address associated with the call
is located in this state.
New law provides that, with certain exceptions,
telecommunications services sold on a basis
other than a call-by-call basis shall be subject to
the state sales and use tax if the
telecommunications service is charged to a
customer whose place of primary use is in this
state.
New law provides that, with certain exceptions,
mobile telecommunications services provided by
a customer's home service provider shall be
subject to the state sales and use tax if the
customer's place of primary use is in this state.
New law provides for various exceptions to the
sourcing rules provided for in new law.
New law provides that the sales price of
telecommunications services shall include,
whether or not separately stated, various charges
but not others.
New law contains extensive new definitions.
Effective August 1, 2007. (Amends R.S. 47:301,
321(A), 337.10(H)(1), and 6014(E)(1)(a); Adds
R.S. 47, 301.1, 302(C), and 331(C); Repeals
R.S. 47, 302(C), and 331(C))
Tax Credits for Child Care (Act No. 394)
New law grants credits against income tax and
corporate franchise tax for child care for
children 5 years old or less.
New law grants a credit against individual
income tax for child care expenses which is in
addition to the credit provided for such expenses
in existing law in R.S. 47:297.4. The new credit
is based upon the existing credit and upon the
"quality rating" of the "child care facility" which
the child attends.
New law grants a refundable credit against any
individual or corporation income tax or
corporation franchise tax for child care
providers. The tax credit is based upon the
average monthly number of children who either
participate in the Child Care Assistance Program
administered by the Office of Family Support in
the Department of Social Services or who are
foster children in the custody of the department,
and who are attending a child care facility or
facilities operated by the child care provider,
multiplied by an amount which is based upon
the "quality rating" of each child care facility
operated by the "child care provider".
New law grants a refundable credit against
individual income tax for eligible child care
directors and eligible child care staff for various
amounts based upon certain qualifications.
New law grants a refundable credit against any
income tax or corporation franchise tax for the
eligible business child care expenses of a
business. The credit is a percentage of such
eligible business child care expenses depending
upon the "quality rating" of the child care
facility to which the expenses are related.
"Eligible business child care expenses" is
defined as the following expenses of an
employer:
1. For the construction, renovation,
expansion, or major repair of an "eligible child
care facility" or for the purchase of equipment
for such facility, or for the maintenance and
operation thereof, not to exceed $50,000 per tax
year.
2. For payments made to an "eligible child
care facility" for child care for each child for
which the employer pays for services not to
exceed $5,000 per child per tax year.
3. For the purchase of child care slots at
eligible child care facilities actually provided or
reserved for children of employees, not to
exceed $50,000 per tax year.
There is also an additional refundable credit
against any income tax or corporation franchise
tax for the payment by a business of fees and
grants to child care resource and referral services
not to exceed $5,000 per tax year.
Effective upon signature of the governor (July
10, 2007). (Adds R.S. 47:6101-6109)
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Assignment of Lottery Winnings (Act
No. 139)
New law provides that the right of a person to a
prize payable in deferred annuity payments may
be voluntarily assigned as a whole or in part, if
the assignment is made to a person designated in
accordance with an order of the 19th JDC.
New law provides for the criteria the court shall
use in ordering a voluntary assignment of lottery
annuity prizes, including a certification from
DSS, office of family support, as to whether
child support payments are in arrears or whether
an overpayment exists.
Effective August 15, 2007. (Amends R.S.
47:9025(B)(1); Adds R.S. 47:9027)
L.A. R.S. TITLE 48: ROADS, BRIDGES
AND FERRIES
DOTD Project Bid Laws (Act No. 386)
New law doubles threshold amounts relating to
projects for construction, maintenance, or
improvements to highways or other public
facilities advertised and let by the Dept. of
Transportation and Development (DOTD), so
that contracts under $50,000 do not require
advertisement or bids; contracts over $50,000
but less than the "contract limit" of $500,000
may be let by "invitation to bid," rather than by
advertising; and contracts over the "contract
limit" of $500,000 must be advertised for bids,
except in emergencies.
New law restricts bids submitted for projects in
excess of $50,000 to using only bid bonds. New
law provides that the bid bonds of unsuccessful
bidders will not be returned by DOTD.
New law provides that the low bidder must be
the lowest responsive bidder on the base bid if
the bidding documents contain additive
alternates, but retains the authorization in prior
law for such alternates to be accepted in any
order which does not affect determination of the
low bidder.
New law requires bidding documents to specify
whether the low bid will be determined based on
the lowest bid cost, the lowest combination of
bid cost plus construction time, or the lowest
combination of bid cost plus construction time
plus estimated life cycle cost. If construction
time is utilized as a factor to determine the
lowest responsive bidder, then its value and use
in the determination of the lowest responsive
bidder must be specified in the bidding
documents.
New law makes various minor procedural
changes regarding the means of soliciting and
submitting bids.
Effective July 1, 2007. (Amends R.S. 48:251(B),
251.9(A)(1), 252, 253, and 255(C); adds R.S.
48:252(H); repeals R.S. 48:255(B)(7))
DOTD Small Engineering Consultant
Program (Act No. 40)
New law authorizes the Dept. of Transportation
and Development (DOTD) to establish a Small
Engineering Consultant Program. Under the
program small engineering firms (not more than
three engineers) are prequalified for
preconstruction engineering services on small
DOTD projects (estimated construction costs
below $500,000). Provides that "preconstruction
engineering services" includes all professional
services before initiation of construction,
including but not limited to surveys,
environmental analysis, design, and bidding
analysis.
New law requires that in order to be prequalified
for selection for an engineering contract under
the program, a firm must annually apply for
participation and meet various qualifications.
New law provides that a firm shall be
disqualified if it receives an average
performance rating of less than 1.4 on three
projects. A prequalified consultant removed
from the program may not requalify for three
years, unless a corrective action plan is
submitted to the department's project manager
and approved by the chief engineer or his
designee.
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892666v.1
New law provides that all firms that timely
apply, that meet the qualifications, and that are
not disqualified shall be accepted as prequalified
firms.
New law provides that when the department has
a project appropriate for the program, it shall
notify all prequalified firms regarding the
project. Based on responses from such firms, the
department shall prepare a short list of firms for
the particular project; the short list shall be
comprised of the five interested firms who are
geographically closest to the construction site, or
all interested firms if fewer than five express
interest. The winning firm is selected at random
from the short list. Prequalified firms are limited
to five projects through this program.
Effective January 1, 2008. (Amends R.S.
48:285; Adds R.S. 48:292.1)
L.A. R.S. TITLE 49: STATE
ADMINISTRATION
Nothing of particular interest.
L.A. R.S. TITLE 50: SURVEYS AND
SURVEYORS
Nothing of particular interest.
L.A. R.S. TITLE 51: TRADE AND
COMMERCE
Scrap Metal Dealer Reporting (Act No. 65)
New law requires that every person engaged in a
junk yard, auto wrecker, scrap metal, junk truck
or similar business must include in reports filed
with the Department of Public Safety and
Corrections the driver's license number of each
person from whom any material was purchased.
New law provides that the purchaser may
electronically maintain certain data and must
provide such data to the appropriate law
enforcement agency upon its request.
Existing law provides that for a period of not
less than 10 days from the date on which all of
the reports are required, the material purchased
or acquired be kept separated so that it is readily
identifiable from all other purchases. New law
allows the owner to photograph the material
purchased or acquired instead of keeping the
material pursuant to existing law. New law
requires a time and date stamp on the
photograph as well as identification of the
individual taking the photograph.
Effective August 15, 2007. (Amends R.S.
51:579(A)(1)(a), (c), and (e), and (2), (B), (C),
and (D))
More Scrap Metal Dealer Reporting (Act
No. 322)
New law requires that all dealers in scrap metal
and junk include in their filed report a
photocopy of either a valid driver's license or
valid identification card issued by the seller's
current state of residence.
New law further provides that the purchaser may
electronically maintain certain data and must
provide such data to the appropriate law
enforcement agency upon their request.
(Amends R.S. 51:579
Mobile Homes and Manufactured Housing
(Act No. 441)
New law makes various changes to laws relating
to the sale, lease, or distribution of mobile
homes or manufactured housing, especially by
manufactured housing community or park
owners.
Effective August 15, 2007. (Amends R.S.
51:911.22, 911.24(C)(2), 912.25(intro. para.),
and 912.27(B); Adds R.S. 51:912.51-912:53;
Repeals R.S. 51:911.26(I))
Enterprise Zone Tax Credits Tightened (Act
No. 279)
Present law provides for credits against income
tax and corporate franchise tax of $2,500 or
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892666v.1
$5,000 per tax year per employee depending on
the type of business, claimed by a business
enterprise in an enterprise zone. New law
provides that the credit shall only be applicable
to a position within the state that is filled by a
person who is a citizen of the United States and
who is domiciled in Louisiana, or who is a
citizen of the United States and becomes
domiciled in Louisiana within 60 days after his
employment in such position. New law further
provides that the total number of credits allowed
to a business enterprise for employees who are
citizens of the United States and who become
domiciled in Louisiana within 60 days after
employment shall not exceed 50% of the total
number of credits allowed to the business
enterprise under the contract.
Effective upon signature of the governor (July 6,
2007). (Amends R.S. 51:1787(A)(3))
Enterprise Zone Tax Credits Loosened (Act
No. 271)
Prior law authorized contracts for businesses
located in enterprise zones, for a period not to
exceed five years, that provide for a $2,500
credit against income and franchise tax per
employee during the taxable year for which
credit is claimed, so long as certain criteria are
met.
New law changes the employee residency
requirement to be that 35% of the employees are
residents of any enterprise zone in Louisiana.
New law is applicable to contracts entered into
on and after 7/1/07.
Effective upon signature of the governor (July 6,
2007). (Amends R.S. 51:1787(B)(4), (D)(4), and
(H)(3))
Sales Tax Rebates for Commercial
Construction; Enterprise Zone Tax Credits;
Quality Jobs Program Tax Credits (Act
No. 400)
Existing law authorizes the State Board of
Commerce and Industry, with the approval of
the secretaries of the Dept. of Revenue and the
Dept. of Economic Development and the
governor, to enter into contracts of up to five
years to provide for the rebate of state and local
sales and use taxes for the following:
1. The use of customer-owned tooling in a
compression molding process.
2. The purchases of material used in the
construction of a building, or any addition or
improvement thereon, for housing any legitimate
business enterprise, and machinery and
equipment used in that enterprise.
New law provides for the option of choosing the
rebate provided for in present law or taking a
refundable investment income tax credit equal to
1-1/2% of certain qualified expenditures.
New law defines "qualified expenditures" to
mean amounts classified as capital expenditures
for federal income tax purposes plus exclusions
from capitalization provided for in I.R.C.
Section 263(a)(1)(A) through (L), minus the
capitalized cost of land, minus: (1) capitalized
leases of land, capitalized interest, and
capitalized costs of manufacturing machinery
and equipment to the extent the capitalized
manufacturing machinery and equipment costs
are excluded from sales and use tax pursuant to
R.S. 47:301(3); and (2) capitalized cost for the
purchase of an existing building.
Prior law provided, under an enterprise zone
contract, for a $2,500 tax income or corporation
franchise tax credit per employee of a company
granted a contract. New law provides that the
$2,500 tax credit shall only be granted for each
net new employee as determined by the
company's average annual employment reported
under the La. Employment Security Law.
New law provides for a sunset date of June 30,
2009 for the $5,000 tax credit for each new job
created by certain motor vehicle parts
manufacturers in the Enterprise Zone Program,
and a sunset date of June 30, 2012 for the $5,000
tax credit for each new job created by certain
rubber manufacturers in the Enterprise Zone
Program.
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892666v.1
New law provides that the prior law employee
restrictions apply to all business enterprises
claiming the enterprise zone employee tax
credit.
New law repeals certain duplicative provisions
of prior law regarding the enterprise zone tax
rebates and credits and merges prior law
provisions dealing with rural enterprise zones,
economic development zones, and urban
economic development zones in Calcasieu
Parish into the provisions dealing with urban
enterprise zones.
New law allows an employer who has executed
a quality jobs program contract to be entitled to
a choice of either the enterprise zone sales and
use tax rebate or the new enterprise zone
refundable investment income tax credit of new
law.
New law provides that on and after January 1,
2012, no new applications to receive incentive
tax credits or rebates under the La. Quality Jobs
Program Act shall be approved by the
Department of Economic Development.
However, an employer which, prior to January
1, 2012, has been approved by the department to
receive incentive tax credits or rebates under the
program shall continue to receive tax credits or
rebates pursuant to the terms of its agreement
with the state of La. as long as the employer
retains its eligibility.
Effective upon signature of governor (July 10,
2007). (Amends R.S. 51:1787(A), (B), (I), and
(J), 2456(B), and 2461(B); Repeals R.S.
51:1787(C), (D), and (H))
Technology Commercialization Tax Credit
and Jobs Program (Act No. 401)
New law establishes a program for providing a
refundable tax credit against La. income or
corporation franchise taxes for those who invest
in fees and costs related to obtaining the rights to
use or the use of technology and invest, by lease
or purchase, in machinery and equipment used
in the commercialization of a product or
intellectual property owned or research
sponsored by a regionally accredited college,
technical school, or university located in La. or
any product or intellectual property to which
significant development or enhancement
occurred in La.
New law further provides for a refundable tax
credit for new jobs created, such credits to be
earned over not less than five and not more than
ten consecutive years.
New law requires, to qualify for earning a credit,
an agreement with a La. regionally accredited
college, technical school, university, or research
company to commercialize or research a
technology and an investment of no more than
$250,000 in La.
New law authorizes a qualifying research center
that develops technology to be commercialized
to apply for a refundable tax credit on new jobs
created.
New law provides that a taxpayer may earn and
apply for and, if qualified, be granted a credit on
any income or corporation franchise tax liability
owed to the state by the taxpayer seeking to
claim the credit, equal in value to 40% of the
amount of money invested by the taxpayer
applicant in commercialization costs for one
business location.
New law provides that there shall be no tax
credits granted or earned after December 31,
2011.
Effective upon signature of governor (July 10,
2007). (Adds R.S. 51:2351-2356)
La. Quality Jobs Program (Act No. 387)
The Louisiana Quality Jobs Program provides
economic incentives to employers who meet
certain qualifications. New law eliminates
various industries which qualify for benefits and
adds industries which are located in areas
designated by DED as being a distressed region.
New law provides that for new direct jobs that
pay at least $14.50 in hourly wages and health
care benefits, the benefit rate will be 5% of the
new direct jobs receiving the wages; and for new
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892666v.1
direct jobs that pay at least $19.10 in wages and
health care benefits, the benefit rate will be 6%.
New law requires that the basic health benefit
plan offered to individuals must have a value of
at least $1.25 per hour for each new direct job.
New law extends the program until 1/1/12. New
law further provides that the provisions of prior
law may apply to all contracts executed or filed
prior to 6/30/2008, unless the employer chooses
to amend its existing contract to adopt the
provisions contained in new law.
Effective upon signature of the governor (July
10, 2007). (Amends R.S. 51:2453, 2454(B) and
(C), 2455(E)(2), 2457, 2461(B), and 2462
Tax Credits for Investing in Community
Development Financial Institutions (Act
No. 345)
New law provides individuals or businesses that
invest in a La. Community Development
Financial Institution (LCDFI) may earn, apply
for, and be granted a transferable tax credit on
any personal income, corporate income, or
corporation franchise tax liability equal to 75%
of the person's investment in the LCDFI.
New law defines LCDFI as an entity whose
"primary business activity" is investing in
"qualified Louisiana businesses" in "low-income
communities." "Qualified Louisiana business" is
defined as any of the following:
1. A business that performs substantially
all of its production in Louisiana, or is
headquartered in Louisiana with a substantial
portion of its assets located in Louisiana, and of
which 80% of the total employees of the
business are domiciled in the state and 80% of
the payroll is paid to such employees.
2. A Louisiana-based nonprofit corporation
which furthers community development and
which is in good standing with the secretary of
state.
3. Loans to medical service professionals,
professional medical corporations, or buildings
constructed to house the medical practices of the
foregoing provided the medical practice is
located in a "low-income community" or a
"medically underserved area".
4. Any qualified Louisiana business that
has been temporarily displaced as a result of a
natural disaster, regardless of where the
temporary location is based.
New law defines "low-income community" as:
5. Any census tract that had 35% of the
median family income
6. Any community located in an area in
which a major disaster has been declared under
the Stafford Act by reason of Hurricane Katrina
or Rita for income and franchise tax credits
7. Any census tract which has a poverty
rate of at least 20% or in which the median
income of that census tract is 80% or less of the
statewide median income
8. Any "medically underserved area" to the
extent the business assists in the providing of, or
delivery of, health care services, prescription
drugs, or medical equipment
9. Any location to which a Louisiana
business has been temporarily displaced as a
result of a natural disaster
New law provides that the portion of a LCDFI's
qualified investments outstanding at any one
time in any group of affiliated Louisiana
entrepreneurial businesses shall not exceed 25%
of the LCDFI's total certified capital.
New law extends the program until July 1, 2009,
and continues to apply to any granted tax credits
until July 1, 2012.
Effective upon the earlier of signature of
governor or June 30, 2007. (Amends R.S.
47:1508(A)(1), 51:3083, 3084, 3085, 3087(A)
and (B), 3091, 3093, and 3094; Adds R.S.
47:1508(B)(23) and (24))
La. Infrastructure Bank Fund (Act No. 276)
New law creates the Louisiana Infrastructure
Bank Fund, to fund or assist in funding "eligible
infrastructure projects" of public entities through
a revolving loan fund, to be capitalized by
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892666v.1
federal grants, state funds when required or
available, and other funds generated by the
operation of the fund.
New law authorizes the bank to review, accept,
or deny all loan applications made by any public
entity, but requires that all projects have prior
approval of DED.
New law authorizes the infrastructure bank to
receive, administer, and expend grants from the
federal government; to make loans at or below
market interest rates; to guarantee loans; to
provide interest reduction on loans and loan
guarantees; to make bond interest subsidies; to
provide bond guarantees to local governments
and political subdivisions; to assist with non-
federal share of the cost of a local government or
political subdivision project; to finance expenses
of publicly owned projects; to finance the cost of
purchase or lease agreements for transit projects;
to secure bonds or other evidence of
indebtedness; to improve credit market access;
to fund programs authorized by the federal
government; and to provide for any other
expenditure consistent with the federal grant and
state law.
New law requires that loans made from the fund
and any other action by the department on behalf
of an infrastructure project receive State Bond
Commission approval.
New law requires investment by the state
treasurer of money dedicated to the operation of
the infrastructure bank.
New law authorizes a political subdivision to
dedicate a portion of its revenues for repayment
of any portion of a loan. New law provides for
the sale, advertisement, and contesting of bonds,
notes, or other evidence of indebtedness of a
political subdivision. New law exempts such
bonds, notes, and other evidence of indebtedness
from taxation and authorizes their investment for
banks, savings banks, U.S. Treasury securities
and other investments. New law provides that
the debt will not be considered net state tax
supported debt for purposes of the debt
limitation.
New law prohibits the use of funds to benefit
any private entity.
Effective upon signature of the governor (July 6,
2007). (Adds R.S. 51:3101-3105)
Banking Development Districts (Act No. 255)
New law establishes banking development
districts in geographic areas where there is a
demonstrated need for banking services.
New law requires a local government and any
financial institution which will be located in the
proposed banking development district to submit
an application to the commissioner of OFI for
the designation of such a district.
New law authorizes a local government to
designate a financial institution located in the
district as a banking district depository for
purposes of depositing local funds.
New law authorizes the governing body of a
local government to enter into a tax abatement
agreement with a financial institution with
respect to the property on which the branch is
located in a banking development district.
Effective August 15, 2007. (Adds R.S. 51:3101-
3109)
L.A. R.S. TITLE 52: UNITED STATES
Nothing of particular interest.
L.A. R.S. TITLE 53: WAR
EMERGENCY
Nothing of particular interest.
L.A. R.S. TITLE 54: WAREHOUSES
Nothing of particular interest.
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892666v.1
L.A. R.S. TITLE 55: WEIGHTS AND
MEASURES (REPEALED)
Nothing of particular interest.
L.A. R.S. TITLE 56: WILDLIFE AND
FISHERIES
Destruction of Natural Evidence (Act No. 84)
New law provides that no person shall
intentionally conceal, destroy, or deposit any
fish, wildlife, or other animal which was taken
or possessed illegally if the person knows or has
good reason to believe that such act will affect a
criminal proceeding.
Effective August 15, 2007. (Adds R.S. 56:16)
Hunting/Fishing License Issuance Contracts
(Act No. 85)
New law authorizes the Dept. of Wildlife and
Fisheries to utilize the request for proposals
process in selecting an electronic license
issuance contractor and to enter into multiyear
contracts not to exceed ten years.
Effective August 15, 2007. (Amends R.S.
56:30.1; Adds R.S. 39:198(G))
Vessel Monitoring System for Oyster Thieves
(Act No. 310)
New law makes vessel monitoring system (vms)
requirements consistent and applicable to all
violations of laws regarding taking of oysters.
New law provides that the cost of the VMS is
the responsibility of the person convicted of the
violation.
New law provides that any person required to
harvest from a vessel with a VMS who is found
harvesting from a vessel not so equipped shall
have his harvester's license suspended for the
remainder of the year in which he is convicted,
and he shall not be eligible for a harvester's
license the following year.
Effective August 15, 2007. (Amends R.S.
56:424(E)(2) and 433(J); Adds R.S. 56:424.1)
Transient Reptile and Amphibian Dealers
(Act No. 81)
Prior law required nonresidents engaged in
buying, acquiring, selling, transporting, or
handling any species of native reptile or
amphibian in La. to purchase a reptile and
amphibian wholesale/retail dealer's license at a
cost of $405. New law authorizes the issuance of
a nonresident three-day reptile and amphibian
wholesale/retail dealer's license for $75. The
license is valid only for three consecutive days.
Effective August 15, 2007. (Amends R.S.
56:632.5(E); Adds R.S. 56:632.5(F))
Dredging Licenses (Act No. 454)
New law prohibits the dredging of fill sand or
fill material from state water bottoms without a
license from the Dept. of Wildlife and Fisheries.
New law provides for royalties to be paid to the
Wildlife and Fisheries Commission.
New law exempts a private landowner from the
fees and bond requirements of existing law if it
is engaged in an approved coastal conservation
or restoration activity.
New law provides that dredging any water
bottom to remove sediment buildup, to preserve
or restore the natural habitat, or to enhance
navigation and recreation activities is exempt
from royalty payments and bond requirements,
provided certain approvals are obtained.
New law requires any entity or person exempt
from royalty payments and bond requirements to
obtain a license.
New law specifically exempts port authorities
and port, harbor, and terminal districts, but
requires them to have applicable federal or state
permits.
Effective August 15, 2007. (Amends R.S.
56:2011-2015)