Not even an election during a pandemic can stop the Louisiana Legislature from passing constitutional amendments.
Despite a “wacky” legislative session, lawmakers managed to place seven proposed amendments on the Nov. 3, 2020, ballot.
With 197 amendments already on the books, this may be the year we surpass 200 total amendments added to the Constitution since its adoption in 1974.
Amendment 1 “Do you support an amendment declaring that, to protect human life, a right to abortion and the funding of abortion shall not be found in the Louisiana Constitution?”
The proposed amendment says that nothing in the Constitution shall be construed to secure or protect a right to abortion or require the funding of abortion. It would have no immediate effect but would limit any future state judicial interpretation that might otherwise find a right to abortion.
The state constitution currently has no specific language concerning abortion. The purpose of this amendment is to place the issue of abortion in the hands of the public. The amendment would state that nothing in the state constitution protects right to abortion. If Roe V Wade is never overturned, this amendment could be irrelevant. A vote against would leave the constitution with no specific language on abortion.
Amendment 2 “Do you support an amendment to permit the presence or production of oil or gas to be included in the methodology
used to determine the fair market value of an oil or gas well for the purpose of property assessment?” Supported jointly by assessors and the oil and gas industry, this amendment specifies that the production of an oil or gas well may be included in the methodology when determining the fair market value of a well for the purpose of ad valorem, or property, taxes. The intent is not to raise or lower taxes on oil and gas wells in general. However, a shift in tax burden would occur. Low-producing or shut-in wells may be assessed less, and wells with higher production potential may be assessed more.
Amendment 3 “Do you support an amendment to allow for the use of the Budget Stabilization Fund, also known as the Rainy Day
Fund, for state costs associated with a disaster declared by the federal government?”
The amendment allows the fund to offset state costs associated with a federally declared disaster. It does not change any of the other constitutional reasons for tapping the fund. The amount used still cannot exceed more than one-third of total money in the fund. A two-thirds vote of the House and Senate would still be required to tap it.
Voters can approve the fund to be tapped during a federally declared disaster or continue to have it restricted to revenue shortfalls.
Amendment 4 “Do you support an amendment to limit the growth of the expenditure limit for the state general fund and
dedicated funds and to remove the calculation of its growth factor from the Constitution?”
The amendment requires the Legislature to establish a procedure to determine the expenditure limit. It does not alter the existing constitutional balanced budget requirement. The procedure would allow an annual growth factor that cannot exceed 5% in a year.
Voters can create a new state budget spending limit with probable slower growth or continue with the current method.
Amendment 5 “Do you support an amendment to authorize local governments to enter into cooperative endeavor ad valorem tax
exemption agreements with new or expanding manufacturing establishments for payments in lieu of taxes?”
The amendment lets manufacturers and local government bodies negotiate deals for payments in lieu of taxes for new projects or additions without the need to transfer legal title of the project. Property covered by an agreement for payments in lieu of taxes would be exempt from the payment of property taxes.
The Louisiana School Board Association, the Police Jury Association, the Louisiana Sheriff’s Association and multiple business organizations support this amendment. It gives local governments an additional, optional tool for incentivizing business investment and empowers local governments to negotiate a more “front-loaded” funding schedule for local needs without having to wait out the eightor 10-year ITEP period. Assessors generally oppose this amendment.
Amendment 6 “Do you support an amendment to increase the maximum amount of income a person may receive and still qualify for the special assessment level for residential property receiving the homestead exemption?” Property tax assessments are frozen, and therefore do not increase, for homeowners of certain income levels who are: age 65 or older; disabled veterans; surviving spouses of members of the military who were killed in action; and the totally disabled. Only primary residences that qualify for the homestead exemption are eligible for the freeze. Also, the homeowner income level must be no more than $77,030.
The amendment keeps the property assessment freeze program in place but raises the income limitation level to $100,000. This new threshold would be effective upon adoption and would be adjusted for inflation each year starting in the 2026 tax year.
Amendment 7 “Do you support an amendment to create the Louisiana Unclaimed Property Permanent Trust Fund to preserve the money that remains unclaimed by its owner or owners?”
This amendment protects money that belongs to individuals. Unclaimed property comes to the state with somebody’s name on it and the state’s job is to try to find those people. This money does not belong to the state; it’s for the citizens with rightful claims. This new fund is needed because the recent increase in returns to claimants has created a cash flow issue in the Treasurer’s offce. Twice the escrow fund has temporarily run dry resulting in a slowdown of payments. The amendment creates the Louisiana Unclaimed Property Permanent Trust Fund. The fund principal would be used solely for the payment of claims. Any money not refunded in a given year would stay in the Unclaimed Property Fund rather than flow into the general fund. The state Treasurer would invest the balance, including up to 50% in stocks and other equities.
THIS ARTICLE WAS PUBLISHED IN THE October 16 ISSUE OF FOCUS SB - THE INQUISITOR.