2016 Legislative Sessions Report

2016 LEGISLATIVE SESSIONS REPORT

JULY 2016

Dear LBA Members:

2016 is a year that will not soon be forgotten by those involved with the state legislative process in Louisiana. With a new legislature and governor, and a large budget shortfall to contend with, lawmakers convened for three consecutive legislative sessions between February and June.

The First Extraordinary Session of the 2016 Legislature ended on March 9 and the Second Extraordinary Session ended on June 23. During these two special sessions over $1.5 billion dollars of new revenues were reportedly raised by the legislature. No bills specifically targeting banks for tax increases were introduced or passed during the special sessions. However, like with other businesses, there will be an impact from the laws passed, the full extent which can only be known with the passage of time. LBA worked diligently to detect and minimize impacts to banks and their shareholders. We appreciate the feedback of the tax professionals and bankers we consulted with during this process, who helped us tremendously in our work. More details about the tax-related Legislative Acts that passed during the specials sessions are included on page 4 of this report.

Of particular note, was the passage of HB 7 (Act 1) by Rep. Katrina Jackson during the first special session. Act 1 restored the full corporate tax exclusion for dividend income received by certain bank holding companies from their bank subsidiaries. This remedied the unfair and harmful double-taxation situation created for some C-Corp bank holding companies by Act 123 of the 2015 Regular Session. We thank Rep. Jackson for authoring Act 1, the legislature for their overwhelming support on this issue, and Governor John Bel Edwards for putting this item in the call of the special session and making it the first Act of his gubernatorial career.

Between the two special sessions was a very busy three-month regular session. During the regular session, LBA sponsored seven bills that were eventually passed into law, which will be helpful to Louisiana banks and thrifts. See page 8 of the following report for more information on these Acts. We also were successful in protecting the banking industry from harmful legislation by either stopping or favorably amending numerous bills of concern throughout the process.

The legislation we pursued at the state capitol was approved by your Government Relations Council (GRC) and LBA Board of Directors at our GRC Meeting in January. Of note, our GRC has recently been renamed as the Government Relations and Grassroots Council (GRGC) to emphasize the importance and renewed focus on grassroots activity. Member bank participation on the GRGC is extremely important. Please contact us if you are unsure about your bank’s representation on the GRGC.

The LBA government relations team (including Joe Gendron, Director of Government Relations, David Boneno, General Counsel, Ginger Laurent, Chief Operating Officer and myself) stands committed to fervently protecting your interests at the state capitol, and we hope this report of the 2016 Legislative Sessions is helpful to your bank in becoming familiar with recent legislative developments.

To view or print an Act, simply click on the link above the description of each Act throughout the report (the links show the Act number and effective date). You can also go to the Louisiana State Legislature’s website at www.legis.la.gov to access Legislative Acts.

Thanks to the bankers and bank counsel around Louisiana who helped us in our work.

Sincerely,

Robert T. Taylor Chief Executive Officer

CONTENTS

Bills Enacted Into Law during the First and Second Extraordinary Sessions of 2016

Tax Measures------4

Bills Enacted Into Law during the Regular Session of 2016

LBA Initiatives, Banking & OFI Regulated Activity------8

Lending & Collateral------11

Insurance------12

Other Bills of Interest------13

BILLS ENACTED INTO LAW DURING THE FIRST AND SECOND EXTRAORDINARY SESSIONS OF 2016

TAX MEASURES

Legislative Acts of Interest from the First Extraordinary Session of 2016:

Bank Holding Company Dividend Income View Act 1; Effective 3/03/16 HB 7 (Act 1) by Rep. Katrina Jackson restored the full corporate tax exclusion (the exclusion was increased from 72% to 100%) for amounts received as dividend income from banking corporations organized under the laws of Louisiana, from national banking corporations doing business in Louisiana, and from capital stock associations whose stock is subject to ad valorem taxation. During the 2015 Regular Session, Act 123 by Rep. Jackson reduced the exclusion from 100% to 72% for a three-year period (this reduction was to sunset in 2018). Act 123 created a tax on transfers of income from some C- Corp banks to their holding companies. This created a double-taxation situation where a portion of the same income could be taxed twice at the corporate level, by being taxed first at the bank subsidiary level (through bank shares tax) and then again at the holding company level (through state corporate income tax). We thank Rep. Jackson for authoring this Act to correct the issue. The provisions of this Act shall apply to all exclusions from taxable income as provided for in R.S. 47:287.71(B)(6) claimed on any return filed for any taxable year beginning on or after January 1, 2015. This Act amends La. R.S. 47:287.71(B)(6).

Expansion of Franchise Tax View Act 12; Effective 3/10/16 HB 19 (Act 12) by Rep. Ted James expands the franchise tax to apply to certain limited liability companies (LLCs). The Act provides that for franchise tax purposes, a LLC shall be treated and taxed in the same manner that it is treated for federal income tax purposes. See R.S. 12:1368. The Act amends provisions to add an additional type of incident where the franchise tax would be levied against a corporation. The Act changed the tax from applying to the owning or using any part or all of its capital, plant or other property in this state in a “corporate capacity” to the owning or using any part or all of its capital, plant, or other property in this state “whether owned directly or indirectly by or through a partnership, joint venture or any other business organization of which the domestic or foreign corporation is a related party as defined in R.S. 47:605.1.” See R.S. 47:601(A)(3).

The Act expands the definition of a “domestic corporation” to include all entities taxed as corporations pursuant to 26 U.S.C. Subtitle A, Chapter 1, Subchapter C for federal income tax purposes, notwithstanding any law to the contrary. It also provides that such entities shall be treated and taxed in the same manner that such entities are treated and taxed for federal income tax purposes. See R.S. 47:601(C)(1)(b). The Act also provides that nothing in R.S. 47:601(C) shall extend franchise tax liability to any LLC qualified and eligible to make an election to be taxed in accordance with the provisions of 26 U.S.C. Subtitle A, Chapter 1, Subchapter S on the first day of its fiscal or annual year or to any other entity that was acquired before January 1, 2014, but not earlier than January 1, 2012, by an entity that was taxed pursuant to 26 U.S.C. Subtitle A, Chapter 1, Subchapter S. See R.S. 47:601(C)(1)(c).

The Act provides that for purposes of this Chapter of law, “corporation” shall mean a domestic corporation or a foreign corporation as provided for in R.S. 47:601. See R.S. 47:601(C)(3). The Act provides for holding company deductions from taxable capital for certain investments. See R.S. 47:602(G). The Act also increases the rate of the initial franchise tax from $10 to $110. See R.S. 47:611.

The provisions of this Act shall be applicable to taxable periods beginning on or after January 1, 2017, and do not have a sunset date. Our understanding is that the Act’s primary purpose was to get at larger corporations that used the LLC as a way to avoid the franchise tax liability. It is understood that many depository financial institutions operating in Louisiana use the LLC form of entity for their subsidiaries. For example, financial institutions may be using LLCs for the purposes of operating insurance agencies, holding repossessed property, making specialized loans involving tax credits, or for other purposes. The feedback we have received from our tax consultants is that most LLC subsidiaries of banks will not be impacted by this change. However, we have learned of a few banks with LLC subsidiaries that will be, or could be, impacted. Financial institutions with LLC subsidiaries should check with their accountants and tax attorneys to determine whether the changes in Act 12 relative to franchise tax impacts them and whether certain actions can be taken to manage the impact of the franchise tax change. This Act amends La. R.S. 12:1368 and R.S. 47:601(A)(3) and (C)(1), 602(G), and 611 and enacts La. R.S. 47:601(C)(3) and 602(H).

NOL Deduction Amount View Act 6; Effective 1/01/16 HB 20 (Act 6) by Rep. Chris Broadwater prohibits the amount of the net operating loss (NOL) deduction from exceeding 72 percent of Louisiana net income, effective January 1, 2016. The Act also repeals the three-year sunset of the previous 28% reduction to the NOL deduction provided for in Act 123 of the 2015 Regular Session, making the reduction permanent. This Act amends La. R.S. 47:287.86(A) and repeals the introductory paragraph of La. R.S. 47:287.86(A) as amended in Section 3 of Act No. 123 of the 2015 Regular Session.

NOL Deductions - Order of Application View Act 24; Effective 1/01/17 HB 116 (Act 24) by Rep. Barry Ivey changes the order of applying net operating loss (NOL) carryovers from the earliest to the most recent taxable year. This Act amends La. R.S. 47:287.86(C)(2).

Sales and Use Tax Changes - Cleaning of Pennies View Act 25; Effective 4/01/16 HB 61 (Act 25) by Rep. Jay Morris removes various exclusions and exemptions from the existing 4 percent state sales and use tax from April 1, 2016 through July 1, 2016 and removes various exclusions and exemptions from 2 percent of existing state sales and use tax from July 2, 2016 through July 1, 2018. This Act amends La. R.S. 22:270 and R.S. 47:301(7)(h) and (14)(b)(i)and 331(P) and (Q), enacts R.S. 47:302 (V) ,(W), and (X), 321(L), (M), (N), and (O), and 331(S), (T), and (U), and repeals Section 4 of Act No. 386 of 1990.

Sales and Use Tax Changes - Additional Penny View Act 26; Effective 4/01/16 HB 62 (Act 26) by Rep. Katrina Jackson imposes an additional 1 percent state sales and use tax from April 1, 2016 through June 30, 2018 for most purchases of tangible personal property and taxable services. This Act amends La. R.S. 47:301(3), (7), (10), (13), (14), (16), (18), and (28) and 318(A) and enacts R.S. 47:321.1.

Insurance Premium Tax Credits - Qualifying Investments View Act 10; Effective 3/09/16 HB 87 (Act 10) by Rep. Andy Anders provides for changes to the insurance premium tax credit and to the annual license tax for certain health maintenance organizations. Of note, beginning January 1, 2017, the Act eliminates cash and certificates of deposits in banks as qualifying Louisiana investment options for insurance companies for purposes of receiving insurance premium tax credits. Tax credits for cash and CD’s at banks have been scrutinized for many years and attempts have been made in the past to alter or

5 eliminate these qualifying investment options. Although insurance premium tax credits are for insurance companies, the theory is that some banks could lose insurance company deposits with this provision repealed. It is hard to quantify if, and to what degree, some banks will be impacted by this change. However, at the LBA Government Relations Council Meeting in January, which was attended by about 70 bankers from around the state, the feedback was unanimous that bankers in attendance were not concerned about this issue. This Act amends La. R.S. 22:270(A) and 832(A) and (C).

Corporate Income Tax Deductions: Add-Back of Certain Expenses View Act 16; Effective 3/10/16 HB 55 (Act 16) by Rep. Walt Leger and Rep. Barbara Carpenter amends the state corporate income tax law to require corporations to add-back otherwise deductible interest expenses and costs, intangible expenses and costs, and management fees directly or indirectly paid, accrued, or incurred to, or in connection directly or indirectly with one or more direct or indirect transactions, with one or more related members. The Act provides certain exceptions to this add-back requirement. The provisions of this Act shall be applicable to all tax years beginning on or after January 1, 2016. The Act enacts La. R.S. 47:287.82.

Corporate Income Tax Rate View Act 8; Effective contingent on election HB 29 (Act 8) by Rep. Walt Leger establishes a single corporate income tax rate of 6.5% that would be applicable to all tax years beginning on and after January 1, 2017. This Act is part of a package of legislation that includes Acts 30 and 31. The change provided in this Act is conditioned on voter approval of proposed amendment to Article VII of the Louisiana Constitution contained in Act 31 to remove the deductibility of federal income taxes paid when computing Louisiana corporate income taxes.

Corporate Income Tax-deductibility of Fed. Income Taxes View Act 31; Effective contingent on election HB 31 (Act 31) by Rep. Walt Leger amends Louisiana Constitution, Article VII to remove the deductibility of federal income taxes paid when computing state corporate income taxes. This proposal shall be submitted to the voters for consideration on the November 8, 2016 ballot. If approved by the voters, it will become effective on January 1, 2017 and be applicable for all tax years beginning on and after January 1, 2017.

Corporate Income Tax-deductibility of Fed. Income Taxes View Act 30; Effective contingent on election HB 95 (Act 30) by Walt Leger repeals the deductibility of federal income taxes paid for purposes of calculating corporate income taxes. This legislation makes statutory changes to go along with the constitutional change proposed in Act 31. This Act is conditioned on voter approval of proposed amendment of Article VII of the Louisiana Constitution contained in Act 31 to remove the federal income tax deduction as a deduction against Louisiana corporate income tax. The election will be held on November 8, 2016, and if the voters approve the constitutional amendment, then this Act will become effective on January 1, 2017, and be applicable for all tax years beginning on and after January 1, 2017.

Legislative Acts of Interest from the Second Extraordinary Session of 2016:

Apportionment of Corporate Income Tax View Act 8; Effective 6/28/16 HB 20 (Act 8) by Rep. Gene Reynolds changes the apportionment percent for income derived for certain transportation and service industry sectors to a single ratio calculation consisting of the ratio of the amount of gross apportionable income derived from Louisiana sources to the total gross apportionable income of the taxpayer. The Act requires sales other than sales of tangible personal property to be sourced to Louisiana if the taxpayers market for the sale is in this state. The Louisiana apportionment percent of taxpayers whose net apportionable income is derived primarily from certain oil and gas activity is calculated using the arithmetical average of four ratios (with a double-weighted net sales ratio) provided for in the Act. Consult your tax professional as to the impact this Act may have on any bank-

6 related entities subject to the Louisiana corporate tax. This Act became effective on June 28 upon signature of the Governor and the provisions of the Act are applicable to all taxable periods beginning on and after January 1, 2016. This Act amends La. R.S. 47:287.95(A), (C)(1), (D), and (F)(2)(b) and enacts R.S. 47:287.95(E), (L), and (M).

Capital Gains Deduction View Act 11; Effective 6/28/16 HB 50 (Act 11) by Rep. Jack Montoucet modifies the individual income tax deduction for net capital gains to only apply to the sale or exchange of an equity interest in or the assets of a non-publicly traded business domiciled in the state that the taxpayer has held for a minimum of five years immediately prior to the sale or exchange. The amount of the deduction available is based on the number of years the entity has been domiciled in the state prior to the sale or exchange (different tiers are provided for in the Act). For those entities domiciled in the state for thirty years or greater, the deduction is 100%. A good amendment to improve this Act was added during the Senate Committee hearing. Prior to the amendment, the bill only applied to a business in which the taxpayer was employed or in which the taxpayer materially participated for five years (in addition to the minimum five-year holding period immediately prior to the sale or exchange). There was concern that the prior language would not have covered many shareholders of non-publicly traded businesses. This Act amends La. R.S. 47:293(9)(a)(xvii).

Sales and Use Tax Exemptions View Act 12; Effective 6/28/16 HB 51 (Act 12) by Rep. Jim Morris restores certain exemptions and exclusions from state sales and use tax that were suspended during the first special session earlier this year. Of particular interest to LBA, this Act restored (effective July 1, 2016) the exemption for “isolated or occasional sales” of tangible personal property by a person not engaged is such business. See R.S. 47:302(AA)(6). We worked with the Department of Revenue, legislators and other interested parties to help achieve a good outcome on this issue. Among other types of situations, LBA was concerned about the sale of certain loan collateral at a sheriff’s sale or tax sale, or the sale of certain collateral otherwise acquired and sold by the creditor, being subject to tax. Had this exemption not been restored, numerous types of occasional transactions that traditionally have not been subject to sales tax, may have been deemed taxable by the state. This Act amends La. R.S. 47:302(X)(introductory paragraph) and enacts R.S. 47:302(AA) and 321.1(F)(66).

Insurance Premium Tax Credits - Qualifying Investments View Act 7; Effective 6/24/16 HB 24 (Act 7) by Rep. Andy Anders makes changes to the tax due by certain domestic health maintenance organizations (HMOs) for calendar year 2016 and makes changes related to the insurance premium tax credit for HMOs. Of note, this Act revisited changes made to the qualifying Louisiana investments during the first special session and restores cash and certificates of deposits in banks as qualifying Louisiana investment options for health maintenance organizations subject to tax in R.S. 22:842(B), for taxable years beginning on or after January 1, 2017 and before January 1, 2019. This Act amends La. R.S. 22:832(A)(3) and enacts R.S. 22:832(C)(6) and (F).

BILLS ENACTED INTO LAW DURING THE REGULAR SESSION OF 2016

LBA INITIATIVES, BANKING & OFI REGULATED ACTIVITY

PACE Loans View Act 643; Effective 8/01/16 HB 766 (Act 643) by Rep. Chris Broadwater (LBA-sponsored) repeals Louisiana’s Sustainable Energy Financing District law, otherwise known around the country as the Property Assessed Clean Energy (PACE) loan program. The bill was opposed by the City of New Orleans and solar industry interests, among others. PACE programs allow local governments to establish (by ordinance) financing districts that can issue bonds and use bond proceeds to make energy efficiency improvement loans to property owners in the financing district. A major concern with PACE is that it treats the repayment of the government-created PACE loan like a property tax giving financing districts a super-priority lien (first- lien) right for past due PACE assessments that ranks ahead of an existing mortgage. Because of this super-priority lien (first-lien) for PACE loans, the Federal Housing Finance Agency (FHFA) has made clear that Fannie Mae and Freddie Mac's policies prohibit them from purchasing a mortgage where the property has a first-lien PACE loan attached to it. This can make it difficult for a property owner with a PACE loan to sell or refinance their home before the obligation is completely paid off. There are also serious questions and concerns about: the high overall costs associated with PACE loans; consumer protections for PACE borrowers; and the oversight and enforcement over PACE programs for compliance with applicable laws and regulations. This Act repeals Subpart B-44 of Part IV of Chapter 1 of Title 33 of the Louisiana Revised Statutes, comprised of R.S. 33:130.811 through 130.814.

Financial Literacy View Act 624; Effective 8/01/16 HB 401 (Act 624) by Rep. Gene Reynolds (LBA-sponsored) provides that each public elementary or secondary school shall offer instruction in personal financial management based on the concept of achieving financial literacy through the teaching of personal management skills and the basic principles involved with earning, spending, saving, and investing. The Act further provides that such instruction and subject matter shall be integrated into an existing course of study. For decades LBA has worked with bankers to achieve greater financial literacy in our state. This Act helps further that cause. This Act amends La. R.S. 17:282.3(B)(1).

Payable on Death Deposit Accounts View Act 166; Effective 8/01/16 SB 126 (Act 166) by Sen. Danny Martiny (LBA-sponsored) provides an alternative to the authentic act requirement for Payable on Death (POD) account affidavits naming beneficiaries when the account is established. R.S. 6:314(A) had required POD account affidavits to be executed by authentic act (signed in the presence of a notary and two witnesses). Instead of executing an authentic act, this Act allows a customer to establish a POD deposit account by naming the beneficiaries in an act under private signature executed in the presence of a bank officer or branch manager and two additional persons. The previous requirement (or the requirement until August 1, 2016) of using an affidavit in authentic form to name account beneficiaries caused an inconvenience and hardship for some banks and their customers, especially with the shortage of notaries in certain areas of the state. Similar changes were made for savings and loan associations and savings banks through the amendment of R.S. 6:766.1. This Act amends La. R.S. 6:314(A) and R.S. 6:766.1(A).

Self-Help Repossession - Collateral and Notice View Act 205; Effective 8/01/16 SB 233 (Act 205) by Sen. Ronnie Johns (LBA-sponsored) makes changes to the Additional Default Remedies Act. This Act expands the definition of “collateral” subject to self-help repossession beyond just motor vehicles (cars and trucks) to include motorcycles. The Act also provides that the notice of repossession and the accompanying fee may, in all cases, be paid to the Sheriff of the parish of the debtor's last known address. This Act amends La. R.S. 6:965(C)(introductory paragraph) and (2) and 966.1(A)(3).

Self-Help Repossession - Fees View Act 171; Effective 8/01/16 SB 234 (Act 171) by Sen. Ronnie Johns (LBA-sponsored) also makes changes to the Additional Default Remedies Act to make clear that additional fees shall not be added to the statutorily required $75 fee that is payable to the clerk of court under current law for the filing of a notice of repossession. We are told that some clerks of court are including add-on fees for self-help filings. This Act amends La. R.S. 6:966.1(B).

Consumer Credit Law Licensure Exemption View Act 48; Effective 8/01/16 HB 346 (Act 48) by Rep. Thomas Carmody (LBA-sponsored) clarifies the bank exemption from licensure under the Louisiana Consumer Credit Law. Although OFI has historically interpreted the current language of the Louisiana Consumer Credit Law to exempt all banks and thrifts from licensure, the Act clarifies that the exemption applies to all banks, savings banks, and savings and loan associations, whether state or federally chartered, and whether chartered in this state or another state. This Act amends La. R.S. 9:3560(A)(introductory paragraph) and (1)(a) and (b).

Agriculture - Security Interests View Act 12; Effective 8/01/16 HB 592 (Act 12) by Rep. Andy Anders (LBA-sponsored) clarifies the rights of lenders who hold UCC-9 Security Interests in farm products. During the 2015 Regular Session, Act 430 revised the Agricultural Commodities Dealer and Warehouse Law to update the language on types of permissible security required for licensed warehouses, grain dealers and cotton merchants (“licensees”). The security is held for the purpose of two funds: a self-insurance fund; and a grain and cotton indemnity fund. The Act also clarified the Commissioner of Agriculture’s authority over the security in the event of a licensee's failure. Act 12 adds language to make clear that the Commissioner shall perform a UCC search to look for secured creditors before disbursing money from the indemnity fund or self-insurance fund, and that payments shall be made jointly to the farmer and the bank that holds a lien on the harvested crop/farm products. This codifies what we are told is already the practice by the Commissioner. This Act amends La. R.S. 3:3412(G), (H), (I), (J), and (K) and 3412.1(I), (J), and (K) and enacts R.S. 3:3409(H)(4), 3412(L), and 3412.1(L).

Deferred Presentment and Small Loans View Act 200; Effective 8/01/16 SB 108 (Act 200) by Sen. Francis Thompson (OFI-sponsored) amends required disclosure language (related to extended payment plans) contained in the Deferred Presentment and Small Loan Act. The amended language notifies a borrower seeking an extended payment plan that requests must be in writing and may be made in person, by email or facsimile. The amended provision also requires the licensee/lender to place its name, email, address, phone number and facsimile number in the disclosure statement. This Act amends La. R.S. 9:3578.4.1(G)(2)(a).

Accounting of Bank-Held Immovable Property View Act 74; Effective 8/01/16 SB 144 (Act 74) by Sen. Danny Martiny (OFI-sponsored) provides for the accounting of certain immovable property held by banks. The Act provides that any bank holding immovable property which is subject to the ten-year divestiture period shall enter the immovable property on its books in accordance with generally accepted accounting principles (GAAP). Prior law (or the law until August 1, 2016) required such immovable property to be entered on the books at fair market value or acquisition cost,

9 whichever was lower. See R.S. 6:243(B)(1). The Act provides that a state bank shall obtain annually, within a reasonable time as determined by the commissioner, from a qualified appraiser a current appraisal of the fair market value of any such property valued at an amount greater than two hundred fifty thousand dollars and shall account for the property in accordance with GAAP. Prior law (or the law until August 1, 2016) required a state bank to reduce the value of any such property on its books if the fair market value had declined. See R.S. 6:243(B)(2)(a). The Act further provides that for property valued at less than two hundred fifty thousand dollars (for which a state bank shall annually perform an adequate evaluation), after adequate evaluation of the property, a state bank shall account for the property in accordance with GAAP. The prior law (or the law until August 1, 2016) provided that if it was determined after adequate evaluation that such property had a value that was less than its book value, then the book value was required to be reduced to reflect the correct valuation of the property in accordance with polices adopted by the commissioner. See R.S. 6:243(B)(2)(b). This Act amends La. R.S. 6:243(B)(1) and (2)(a) and (b).

Sale of Checks and Money Transmitters - Change of Control View Act 75; Effective 8/01/16 SB 145 (Act 75) by Sen. Danny Martiny (OFI-sponsored) repeals an exemption for certain persons from having to comply with the change of control requirements for a licensee engaged in the business of money transmission or selling checks. Prior law (or the law until August 1, 2016) exempted certain persons previously identified as a person in control in an approved Sale of Check or Money Transmitter application from having to give notice and receive approval of the Commissioner of Financial Institutions in subsequent changes of control. Note that banks are exempt from licensure requirements pursuant to R.S. 6:1034. This Act repeals La. R.S. 6:1054(G)(4).

Financial Exploitation Protection View Act 580; Effective 1/01/ 17 SB 338 (Act 580) by Sen. Danny Martiny (OFI-sponsored) establishes the Louisiana Protection of Vulnerable Adults from Financial Exploitation Law. The Act applies to securities dealers (broker- dealers), investment advisors and qualified individuals. The Act is based on model legislation prepared by the North American Securities Administrators Association (NASAA). The Act establishes procedures, if financial exploitation of an eligible adult is reasonably believed, for taking of protective measures that may include the following: (1) notifying the appropriate adult protection agency and the commissioner of securities; (2) notifying any third party previously designated in writing; and (3) delaying the disbursement of funds. The Act provides immunity for certain governmental disclosures made in accordance with this Act, and it provides immunity for certain disclosures to third parties.

"Financial exploitation" is defined in the Act to mean the wrongful or unauthorized taking, withholding, appropriation, or use of money, assets, or property of an eligible adult, or any act or omission taken by a person, including through the use of a power of attorney, act of procuration, contract of mandate, or letters of curatorship, guardianship, or conservatorship of an eligible adult, to take certain actions as described in the definition. See R.S. 51:725.1(4). The Act seeks to protect eligible adults who are defined as persons sixty years of age or older and persons subject to the Adult Protective Services Act, R.S. 15:1501, et seq., by authorizing a qualified individual to notify the appropriate adult protection agency and the commissioner of securities. See R.S. 51:725.2. This Act enacts Part X-A of Chapter 2 of Title 51 of the Louisiana Revised Statutes, comprised of La. R.S. 51:725 through 725.7.

Securities Law View Act 141; Effective 5/19/16 HB 521 (Act 141) by Rep. Thomas Carmody (OFI-sponsored) amends the Louisiana Securities Law in response to a JOBS Act change in federal law. It is our understanding that federal law now provides for two tiers of Regulation A securities: Tier 1 and 2. Prior state law provided for the state registration of all Regulation A securities. This Act retains the state registration requirement for Tier 1 Regulation A securities. This Act also requires issuers of Tier 2 Regulation A securities to file a notice of sale with the Commissioner of the Office of Financial Institutions using the "Uniform Notice of Regulation A - Tier 2

Offerings" form, prior to the sale of such securities in Louisiana. Issuers are required to pay a fee equal to one-tenth of one percent of the offering amount (with a minimum fee of $100, and a maximum fee of $1,000), plus a $250 processing fee. The Act also allows for the offer, but not the sale, of a Tier 1 Regulation A security under Section 3(b)(2) of the Securities Act of 1933, prior to such security being registered with the Commissioner, where the issuer intends to register the security in multiple states using a coordinated review for these offerings, and conducts its offering in compliance with federal Regulation A as promulgated by the Securities and Exchange Commission. This Act amends La. R.S. 51:705(H)(1)(introductory paragraph) and 709(5)(a)(introductory paragraph) and (ii) and (b) and (10).

Credit Union Prize-Linked Accounts View Act 257; Effective 8/01/16 HB 681 (Act 257) by Rep. Ed Price allows a credit union to offer savings promotion raffles to its members. In the Act, the term “savings promotion raffle” means a contest in which the sole consideration required for a chance of winning designated prizes is obtained by the deposit of a specified amount of money in an interest-bearing share account, where each ticket or entry has an equal chance of being drawn. A recent change in federal law allows states to pass laws to allow prize-linked savings accounts. At our Government Relations Council meeting in January, attendees were outspoken against combining any sort of gaming (raffles) and banking. As a result, LBA did not pursue the ability for banks to offer these accounts, and we testified in opposition to this measure for credit unions in the House and Senate Commerce Committees. The bill was amended in the Senate Commerce Committee to require interest to be paid on these accounts. This Act enacts La. R.S. 6:644(B)(17).

LENDING & COLLATERAL

Condominium Association Liens View Act 244; Effective 8/01/16 HB 213 (Act 244) by Rep. Ray Garofalo extends the time period from one year to five years from the date of recordation of a claim of privilege for preserving a privilege against a condominium parcel. In order to further preserve their privilege, the condominium association must file suit and record a notice of filing of suit on the claim within five years of the date of the recordation of the inscription of the claim. The Act requires the condominium association to pay reasonable attorney fees and all associated costs to the owner or interest holder in the condominium if the condominium association files a wrongful lien (for amounts not owed) that requires an owner or interest holder to file suit to have the lien or privilege released. This Act amends La. R.S. 9:1123.115(B) and enacts R.S. 9:1123.115(A)(4).

Cancellation of Prescribed State Judgments, Liens, and Privileges View Act 76; Effective 8/01/16 SB 469 (Act 76) by Sen. Eric LaFleur mandates that the recorder of mortgages, upon receipt of a written signed application, cancel recordation of a mortgage, pledge, or privilege that has prescribed by lapse of time under R.S. 9:5685. The cited statute, R.S. 9:5685, provides for a ten-year prescription period for judgments, liens, and privileges, in favor of the state. This Act amends La. Civil Code Article 3367.

Affordable Housing Tax Credits View Act 182; Effective 1/01/17 HB 610 (Act 182) by Reps. Mark Abraham and Taylor Barras provides that when performing a valuation of any affordable rental housing property, the assessor shall not consider any of the following in determining fair market value: (1) Income tax credits available to the property under Section 42 of the Internal Revenue Code; (2) Below-market interest rate on financing obtained under the Home Investment Partnership Program under the Cranston-Gonzales National Affordable Housing Act, or the Federal Home Loan Bank Affordable Housing Program established pursuant to the Financial Institution Reform, Recovery, and Enforcement Act of 1989; (3) Any other federal, state, or similar program intended to

11 provide or finance affordable rental housing to persons of low or moderate income and requiring restricted occupancy and rental rates based on the income of the persons occupying such housing. The Act also provides that in utilizing the income approach, the assessor shall use an appraisal technique in which the anticipated net income is capitalized to indicate the capital amount of the investment which produces the net income. This LBA-supported Act was supported throughout the process by developers and lenders involved in affordable rental housing developments. This Act amends La. R.S. 47:2323(C)(3) and enacts R.S. 47:2323(E).

INSURANCE

Certificates of Insurance View Act 278; Effective 8/01/16 HB 476 (Act 278) by Rep. Mike Huval amends the certificates of insurance statute to restrict certain insureds from having producers prepare complicated, customized certificates of insurance forms. With this Act, only lenders may request the use of a customized certificate of insurance form for risks located in this state. Everyone else is required to use standard certificate of insurance forms promulgated by the insurer, ACORD, AAIS, or ISO. The statute was also revised to restrict the practice of having insurance producers prepare or issue opinion letters or other documents or correspondence in lieu of or in addition to a certificate of insurance. This restriction does not apply to lenders or to certificates of insurance required or requested by a lender from a policyholder. The Act further clarifies that a lender may request that an insurer or insurance producer prepare or issue an addendum that clarifies, explains, summarizes, or provides a statement of the coverages provided by a policy of insurance or otherwise complies with the requirements of R.S. 22:890. The Act also eliminates a procedure whereby the Department of Insurance reviews and approves certificate forms. R.S. 22:890(H) was amended to clarify that certificates of insurance shall not contain references to legal or insurance requirements contained in any contracts. Further, the certificates may list only the specific forms or endorsements contained in the underlying contracts of insurance. R.S. 22:890(H) as amended by the Act also prohibits a certificate holder or other interested party from requiring an interpretation of those forms or endorsements from the insurance agent. R.S. 22:890(H) as amended does not apply to lenders or to certificates required or requested by a lender from a policyholder. The term “lender” is defined in R.S. 22:890(A)(7) to mean an individual, partnership, corporation, LLC, association, federally insured depository institution, or other entity, agent, loan agent, servicing agent, or loan or mortgage broker, who makes, owns, or services a loan.

We are told that the legislation was brought to address a concern among producers who are being asked by parties in certain industries to complete complicated certificate of insurance forms and addendum forms related to certain liability insurance policies, which creates risk for errors and omissions claims. This Act amends La. R.S. 22:890.

Termination of Non-captive Insurance Producer-Notice View Act 142; Effective 8/01/16 HB 663 (Act 142) by Rep. Major Thibaut enacts R.S. 22:1569. The Act provides that no admitted insurance company which is authorized to do business in this state shall terminate the appointment or the agency contract of a non-captive insurance producer without the mutual agreement of the parties in writing at the time of the termination of the agency agreement or without providing at least 180 days advance written notice, except when the termination is based on a reason that constitutes "cause" for which an insurer may terminate a producer's appointment without providing such notice. The Act provides a list of reasons that constitute cause. See R.S. 22:1569(B)(1).

The Act also provides that any admitted insurance company which is authorized to do business in this state shall, upon issuing the written notice required by the Act (in R.S. 22:1569(B)) of the termination or cancellation of a non-captive insurance producer's contract, permit the renewal of all contracts of insurance written by the non-captive insurance producer until the producer's contract is terminated, subject to the normal underwriting requirements of the insurer. If the insured fails to meet the current underwriting requirements of the insurer, the insurer shall provide the policyholder with the statutory notice of nonrenewal. The Act also provides that any insurer renewing contracts of insurance in accordance with the Act shall pay commissions for the renewals to the terminated or cancelled non- captive insurance producer in the same amount and manner as previously paid to the non-captive insurance producer under the terminated or cancelled contract. See R.S. 22:1569(C).

The provisions of this Act do not apply to: captive insurance producers; non-admitted, excess, or surplus lines policies; individually rated excess insurance policies; non-captive producers writing life, annuity, and health insurance policies; and insurance companies whose agency contracts contain a written provision expressly reserving to the insurer all right, title, and interest to the ownership or use of business written by the insurance producer. The Act defines “captive insurance producer” and “non-captive insurance producer”. This Act enacts La. R.S. 22:1569.

Insurance Premium Finance-Wind Mitigation Retrofit Loans View Act 202; Effective 8/01/16 SB 185 (Act 202) by Sen. Blade Morrish amends the Louisiana Consumer Credit Law relative to insurance premium finance companies to allow them to make certain wind mitigation retrofit loans in connection with the insured properties. This Act pertains to the financing of homeowners’ insurance policies, and it allows for a separate loan agreement with the policyholder for wind mitigation retrofits to the insured property. In order to qualify, the homeowners’ insurance policy shall be issued to a homeowner who has financed the cost of wind mitigation retrofits with a licensed consumer finance company, in part, for the purpose of obtaining wind mitigation and other credits on his homeowners’ insurance policy. Upon cancellation, expiration, or nonrenewal of the qualifying homeowner’s insurance policy, the wind mitigation loan agreement shall continue to be administered pursuant to its terms until paid in full. The loan due date cannot be accelerated due to cancellation, expiration, or nonrenewal of the qualifying homeowner’s insurance policy. This Act amends La. R.S. 9:3550(B)(4).

OTHER BILLS OF INTEREST

Successions and Donations View Act 86; Effective 8/01/2016 HB 269 (Act 86) by Reps. Greg Miller and Mike Johnson was brought on recommendation of the Louisiana State Law Institute and amends Civil Code Article 1522 dealing with separate donations of usufruct and naked ownership. The Act clarifies that a disposition inter vivos or mortis causa by which the usufruct is given to one person and the naked ownership to another is not a prohibited substitution. The Act also amends Civil Code Article 3396.9 to delete or change some current language related to unemancipated minors, and includes new language related to interdicted minors. As amended, that Article provides that if a successor whose concurrence is required is an unemancipated minor, the concurrence may be made on his behalf by the administrator of his estate or his natural tutor, as appropriate, without the need for a formal tutorship proceeding or concurrence of an undertutor. New language is added to the Article providing that if a successor whose concurrence is required is an interdict, the concurrence may be made on his behalf by the curator without the need for court authorization in the interdiction proceeding or concurrence of the undercurator. This Act amends La. Civil Code Article 1522 and La. Code of Civil Procedure Article 3396.9.

Code of Civil Procedure Revisions-Discovery and Seizures View Act 132; Effective 8/01/16 HB 285 (Act 132) by Rep. Ray Garofalo was brought on recommendation of the Louisiana State Law Institute. It extends the time period within which to respond to discovery requests from 15 days to 30 days. The Act also clarifies that unlike state and federal judgments, judgments of a foreign country may not be enforced pursuant to R.S. 13:4241. Of interest to creditors, changes were made to La. Code of Civil Procedure (C.C.P.) Article 2642, which had previously used the date of the signing of the order of seizure and sale as the commencement of the delay for taking a suspensive appeal from the order. The Act changed the commencement of the suspensive appeal delay to run upon service of the notice of seizure as provided in C.C.P. Article 2721. Changes were also made to C.C.P. Article 2721, which provides for the required contents of the notice of seizure of property. The Act requires that the notice of seizure shall reproduce in full the provisions of C.C.P. Article 2642. R.S. 13:3852(B), which provides the form that shall be used by the sheriff for the notice of seizure of property, was amended to require that additional language be contained in the notice of seizure used. The additional language reproduces the provisions of C.C.P. Article 2642, within the notice of seizure of property that is required under present law. A change was also made to R.S. 13:4611, which provides the penalties that may be imposed in a civil contempt of court proceeding. The change adds an award of attorney fees to the prevailing party in a civil contempt of court proceeding to the penalties permitted under present law. This Act amends La. Code of Civil Procedure Articles 1458, 1462(B)(1), 1465.1(B), 1467(A), 2541, 2642, and 2721(B), and La. R.S. 13:3852(B), and enacts R.S. 13:4611(1)(g).

Trust Code Revisions View Act 544; Effective 8/01/16 HB 286 (Act 544) by Rep. Ray Garofalo was brought on recommendation of the Louisiana State Law Institute and makes revisions to the Louisiana Trust Code. It expands the definition of "person" in the Louisiana Trust Code to include a limited liability company. See R.S. 9:1725(3). R.S. 9:1972 was amended to clarify that a trust instrument may designate substitute principal beneficiaries. Revisions were made to R.S. 9:1973 relative to shifting interest in principal. It enlarges the category of allowable parties to whom a principal interest can be shifted at the death of an original or substitute principal beneficiary. According to the comments, it allows for a settlor to provide that if a principal beneficiary dies with descendants his interest passes to one or more of the beneficiary’s descendants. If the legitime is affected, the shifting of principal is allowed only if the beneficiary dies intestate and without descendants.

R.S. 9:2092 relative to the recordation of instruments was also amended to clarify that any time the trust property of an inter vivos or testamentary trust includes immovable property or other property that requires the title to the property be recorded in order to affect third persons, the trustee must file the trust instrument for record, rather than an extract of the trust, in the parish in which the property is located. R.S. 9:2092(B) was amended to clarify that when recording an abstract of a trust instrument, it shall include any limitation or restriction on the power of the trustee to alienate, lease, or encumber immovable property contained in the trust instrument. R.S. 9:2262.2 provides that any time a foreign trust includes immovable property or other property that requires that the title to the property be recorded in order to affect third persons, and the trust contains a transfer of such property, the trustee must file the trust instrument for record in the parish in which the property is located, and not file an extract of the trust. R.S. 9:2262.2(B) clarifies that an extract of a trust instrument (foreign trusts) shall contain a statement as to whether the trust is revocable or irrevocable, the date of execution of the trust, and any limitation or restriction on the power of the trustee to alienate, lease, or encumber immovable property contained in the trust instrument. R.S. 9:2262.2(B) also was amended to clarify that when recording an abstract of trust, any limitation or restriction in the trust instrument on the power of the trustee to alienate, lease or encumber immovable property shall not be effective against third persons unless it is recited in the extract of trust. This Act amends La. R.S. 9:1725(3), 1972, 1973, 2092, and 2262.2.

Bankruptcy View Act 88; Effective 8/01/16 HB 288 (Act 88) by Rep. Ray Garofalo amends provisions dealing with an order of discharge in bankruptcy to include Chapter 13 debtors. As amended by this Act, the law provides that a judgment debtor may obtain a partial cancellation of the inscription of a judgment as it affects property not owned by the judgment debtor on the date of his filing a petition under Chapter 7 or Chapter 13 of the United States Bankruptcy Code upon the filing of an affidavit in accordance with law. This Act amends La. R.S. 9:5175(C)(1) and (2)(a).

Facsimile Filings View Act 109; Effective 8/01/16 HB 331 (Act 109) by Rep. Greg Miller changes the law relative to facsimile filings in civil and criminal actions. The Act provides that facsimile filing shall be deemed complete at the time the facsimile transmission is received by the clerk of court. Prior law (or the law until August 1, 2016) provided filing was complete at the time that the facsimile transmission was received and a receipt of transmission had been transmitted to the sender by the clerk of court. Thus, this Act removes the requirement that receipt of transmission be transmitted to the sender by the clerk of court for filing to be deemed complete. The Act provides that no later than on the first business day after receiving a facsimile filing, the clerk of court shall transmit to the filing party via facsimile a confirmation of receipt and include a statement of the fees for the facsimile filing and filing the original document. Further, the Act provides that the facsimile filing fee and transmission fee are incurred upon receipt of the facsimile filing by the clerk of court and payable as provided in the Act. According to the Act, the facsimile filing shall have the same force and effect as filing the original document if the filing party subsequently files the identical original document within seven days (exclusive of legal holidays) after the clerk of court receives the facsimile filing and pays the required fees. This Act amends La. R.S. 13:850(A), (B), and (C) and 2562.25(A), (B), and (C) and La. Code of Criminal Procedure Article 14.1(A), (B), and (C).

Notarial Commissions View Act 116; Effective 8/01/16 HB 456 (Act 116) by Rep. Rob Shadoin amends provisions dealing with revocation or suspension of a notarial commission or authority to exercise notarial powers. The Act provides that a notary public who is not an attorney may have his notarial commission and powers revoked or suspended for officially certifying as true what he knew or should have known was false. The Act adds the word “officially” before the word “certifying”. See R.S. 35:15(A)(4). The Act also provides for notification by the secretary of state to the attorney general or the district attorney of the parish in which the notary is commissioned for purposes of instituting a rule to show cause to revoke a notary commission pursuant to R.S. 35:15, if the suspension of the notary arises from failure of the notary to be registered as a voter in the parish of his commission, or if the suspension arises from a felony conviction. See R.S. 35:16(B) and (C). Prior to this Act, notification by the secretary of state was required to the district attorney of the parish in which the notary was commissioned. This Act amends La. R.S. 35:15(A)(4) and 16(B) and (C).

Judgments of Interdiction View Act 122, Effective 8/01/16 HB 574 (Act 122) by Rep. Greg Miller requires judgments of interdiction to include the interdicted person’s (defendant’s) name, domicile, age, and current address. This Act amends La. Code of Civil Procedure Article 4551(A).

Revisions to Louisiana Business Corporations Law View Act 442; Effective 8/01/16 HB 714 (Act 442) by Rep. Franklin Foil was brought on recommendation of the Louisiana State Law Institute to make changes to the Louisiana Business Corporations Act. The state corporations law was revised in 2014 through Act 328, which took effect on January 1, 2015, and it adopted the model business corporations law. Current Act 442 was brought as cleanup legislation to address various issues that have been identified since the 2014 enactment. Here is a brief summary of changes made by Act 442. Section 1-202(A)(5) was amended to require a statement about exculpation only if departing from default statutory rules. Section 1-832(D), was added to clarify that pre-2015 provisions purporting to protect a

15 director or officer from monetary liability to the corporation or its shareholders are treated as fully accepting new rules unless they were narrower than permitted at the time adopted. Thus, the pre-2015 provisions in a corporation’s articles of incorporation shall not operate as a limitation of the protection against liability provided by this Section except to the extent that it provides less protection against liability than was permitted by the law in effect at the time the provision became effective. Section 1-725 and 727 provide clarification to rules limiting changes in quorum and vote-level rules – adopting the former rules. Section 1-820 was amended to permit bylaws to provide means of calling special meetings of board of directors. Section 1-1022, pertaining to public corporation bylaw provisions relating to the election of directors, was amended to change Model Act detailed rules on “vote no” provisions into more general authorization. Section 1-955, pertaining to the effect of entity conversion, was amended to provide a service of process rule for entity conversions like that for mergers. It provides that a foreign eligible entity that is a survivor of a merger may be served in accordance with the rules applicable to service of process on a foreign corporation, if certain listed conditions exist. Section 1-1106, relative to articles of merger or share exchange, was amended to drop signature requirement for a 90%+ subsidiary in short-form merger. Specifically, articles of merger need not be signed on behalf of any subsidiary that is a party to a merger authorized without the approval of the subsidiary's board of directors or shareholders as permitted by R.S. 12:1-1105(A). Sections 1-1435 and 1436 pertaining to oppressed shareholders proceedings, were amended to provide that an affidavit for a missing certificate in oppression proceeding may say “previously delivered”. Section 1-1705 was added to provide a transition rule for pre-2015 revocations – allowing for reinstatements until 12-31-2018 for a corporation with a revoked charter.

Corporations-Restated Articles and Annual Reports View Act 107; Effective 8/1/16 HB 284 (Act 107) by Rep. Franklin Foil amends the Louisiana business corporations law to make technical changes relative to the requirements for restated articles of incorporation and for the filing of annual reports. R.S. 12:1-1007, relative to restated articles of incorporation, was amended to require that the articles of restatement presented to the secretary of state for filing shall include the entire text of the original articles as amended by all amendments. Section 1-1621, relative to the annual report, was amended to delete language that provided a time restriction for correcting an annual report. The law had provided that if an annual report needed to be corrected and the corrected annual report was returned to the secretary of state within thirty days of the effective date of notice, then it would be deemed timely filed. This Act amends La. R.S. 12:1-1007(A) and (C) and 1-1621(D).

Terminated or Revoked Corporations- Transfer of Immovables View Act 89; Effective 8/1/16 HB 289 (Act 89) by Rep. Ray Garofalo amends the Louisiana business corporations law to put back a provision that was in the former state corporations law prior to the 2014 revision, authorizing terminated (formerly called “revoked”) corporations to dispose of or transfer immovable property. Specifically, R.S. 12:1-1443(B) provides an exception to the termination of the existence of a corporation for the purpose of disposing of immovable property owned by the corporation pursuant to a resolution of the board of directors. This Act enacts La. R.S. 12:1-1443(B)(4).

Annual Reports to DOR and Tax Withholdings View Act 662; Effective 6/17/16 HB 737 (Act 662) by Rep. Neil Abramson changes the deadline from on or before the 1st business day following February 27 of each year for the preceding calendar year to on or before January 31 of each year, for the filing of an annual return by an employer to the Department of Revenue regarding deductions and withholdings of employee wages. See R.S. 47:114(E). The Act also amends tax withholding provisions pertaining to the motion picture investor tax credit and related production expenditures. See R.S. 47:164(D)(2). Section 2 of this Act amends Section 2 of Act 425 of the 2015 Regular Session to provide for the applicability of that Act to certain production expenditures. The provisions of this Act are applicable to all taxable years beginning on and after January 1, 2016. This Act amends La. R.S. 47:114(E), 164(D)(2), and Section 2 of Act No. 425 of the 2015 Regular Session.

Real Estate Appraisers Law View Act 259; Effective 8/01/16 HB 804 (Act 259) by Rep. Steve Pugh makes changes to the Louisiana Real Estate Appraisers Law. The Act amends licensing criteria provisions to provide that applicants for a real estate appraiser trainee license shall, among other things, be subject to training and direct supervision by a certified appraiser who has been licensed as a certified real estate appraiser in Louisiana for at least three years prior to becoming a supervising appraiser, and who is in good standing as a certified residential or certified general real estate appraiser in Louisiana. The Act further provides that the supervising appraiser shall not have been subject to any disciplinary action in any jurisdiction within the last three years that affect the supervisor’s legal eligibility to engage in appraiser practice. See R.S. 37:3397(B)(1). The Act amends provisions relative to appraisal logs and provides that an appraisal experience log shall be maintained jointly by the supervising appraiser and the trainee appraiser, and it is the responsibility of both the supervisory appraiser and the trainee appraiser to ensure the appraisal experience log is accurate, current, and complies with the requirements of the trainee appraiser's credentialing jurisdiction. The Act also amends the type of information required to be kept in an appraisal log. See R.S. 37:3397(B)(3). The Act amends the section of law providing for retention of records by a licensed real estate appraiser. See R.S. 37:3411. The Act also extends until December 31, 2017, provisions related to license application, renewal and delinquent renewal assessments. See R.S. 37:3415.10.

The Act amends provisions requiring an appraisal management company to compensate appraisers at a rate that is customary and reasonable for appraisals being performed in the market area to include specific citations to federal law and regulation. See R.S. 37:3415.15. The Act also enacts a section of law entitled federal registry requirements. See R.S. 37:3415.22. It provides that the Louisiana Real Estate Appraisers Board (board) shall collect from each appraisal management company that is registered or seeking to be registered in this state the information that the appraisal subcommittee, as described in R.S. 37:3395, requires to be submitted to it by the state pursuant to regulations promulgated by the appraisal subcommittee, including the collection of administrative fees consistent with the final federal rules as provided for in the applicable provisions of 12 CFR Parts 34, 208, 225, 323, 390,1026, and 1222. It also provides that a federally regulated appraisal management company operating in this state shall report to the board any information required to be submitted by the state to the appraisal subcommittee pursuant to the policies of the appraisal subcommittee regarding the determination of the appraisal management company national registry fee. The Act provides for the information to be included in reports submitted. This Act amends La. R.S. 37:3397(B)(1) and (3), 3411, 3415.10, 3412.15(A) and enacts R.S. 37:3415.22.

Commercial Filings by Electronic Means View Act 554; Effective 1/01/18 HB 876 (Act 554) by Rep. Walt Leger provides for the filing of certain commercial filings with the Secretary of State. The Act provides that the secretary of state may accept authorized filings by electronic, online, or facsimile transmission, and all authorized online filings shall include an electronic signature. In the Act, "online" means a filing made through the secretary of state's commercial online computer system. The Act provides that notwithstanding certain provisions of law, any filing that the secretary of state has the capability to accept online shall be filed only online. Additionally, if a document is required to be filed or recorded with another entity or official, the online filing with the secretary of state shall not satisfy that requirement. The Act provides that notwithstanding any contrary provision in certain Titles of law named in the Act, until the secretary of state has the capability to accept filings online, any filing with the secretary of state (pursuant to the Titles of law named in the Act), which has the effect of changing the name of a designated or registered agent or changing the name of a principal officer of the corporation shall be accompanied by a resolution signed by each member of the corporation's board of directors in order for the change to be deemed validly filed. The Act provides that notwithstanding the provisions of Sections of law named in the Act, any filing filed by an individual from a parish with a population of one hundred thousand or less according to the latest federal decennial census

17 may be filed by facsimile transmission or mail. This Act shall become effective on January 1, 2018. This Act amends La. R.S. 9:3402(B), R.S. 12:1-120(D) and (J) and 1701(A), (C), and (D) and enacts R.S. 9:3402(D), R.S. 12:1-120(M), R.S. 45:1364.1, and R.S. 51:195.

ABLE Accounts View Act 604; Effective 8/01/16 HB 991 (Act 604) by Rep. Franklin Foil transfers responsibility of administering the ABLE account program from the ABLE Account Authority to the La. Tuition Trust Authority (LATTA) and makes the ABLE Account Authority an advisory council of LATTA. The Act also transfers the ABLE account program statutes from Title 46 to Title 17. ABLE stands for "Achieving a Better Life Experience in Louisiana Act" or "Louisiana ABLE Act", which establishes a governance framework and broad guidelines for a state ABLE account savings program (the "program") for persons with disabilities. The program’s purposes are as follows: (1) To pay "qualified disability expenses" so that persons with disabilities may maintain health, independence, and quality of life; (2) To provide secure funding for disability-related expenses on behalf of designated beneficiaries that will supplement, but not supplant, certain other benefits; and (3) to comply fully with all provisions of the ABLE Act and all regulations issued pursuant thereto. Eligible individuals are persons with a disability who meet criteria to qualify as provided in 26 U.S.C. 529(e). The state treasurer is charged with investing monies deposited in the ABLE accounts in the same manner as prescribed by R.S. 17:3091, et seq. for the investment of monies deposited in START Program accounts. See R.S. 17:3086. The state ABLE program has an advisory board called the ABLE Account Advisory Council, which will advise and consult with the authority relative to the authority’s administration of and adoption of rules pertaining to the program. An officer of a Louisiana bank as nominated by the LBA serves as a member of the council. See R.S. 17:3089.

Here is some helpful background on the ABLE program. In 2014 Congress passed federal legislation called the Stephen Beck, Jr., ABLE Act of 2014. The federal ABLE Act allows people with disabilities and their families to set up a special savings account for disability-related expenses. Earnings on an ABLE account would not be taxed, and account funds would generally not be considered for the supplemental security income (SSI) program, Medicaid, and other federal means-tested benefits. Read more about federal ABLE Act of 2014. This Act enacts Chapter 22 of Title 17 of the Louisiana Revised Statutes, comprised of La. R.S. 17:3081 through 3089, and R.S. 36:651(G)(5) and repeals R.S. 17:3093.1, R.S. 36:651(T)(6) and 802.24, and Chapter 19 of Title 46 of the Louisiana Revised Statutes, comprised of R.S. 46:1721 through 1730.

Self-Storage Facilities View Act 167; Effective 5/19/16 SB 128 (Act 167) by Sen. Danny Martiny makes changes to the Self-Service Storage Facilities law. The Act amends the definition of a “last known address” to include an electronic mail address, and enacts definitions for “electronic mail”, “electronic mail address” and “verified mail”. See R.S. 9:4757(5), (6), (7), and (8). The Act amends provisions to provide that a notice of default shall be delivered in person or sent by verified mail to the last known address of the lessee, and electronic mail if the email address is provided by the lessee in the rental agreement. See R.S. 9:4759(3). Previously, if the notice was not delivered in person to the lessee, it was required to be sent by certified mail to the last known address of the lessee. The Act amends provisions dealing with what is to be included in a notice. See R.S. 9:4759(4).

The Act amends provisions dealing with advertisement, and the contents of an advertisement, of the sale or other disposition of movable property subject to a privilege by a self-storage facility. See R.S. 9:4759(5). The Act also provides for the sale or other disposition of movable property on a publicly accessible website that conducts personal property auctions. See R.S. 9:4759(8). The Act enacts a new Paragraph that provides that if the property upon which the lien is claimed is a motor vehicle, watercraft, or trailer, and rent and other charges remain unpaid for sixty days, the owner may have the property towed in lieu of foreclosing on the lien. If a motor vehicle, watercraft, or trailer is towed pursuant to the

18 provisions of the new Paragraph, the owner shall not be liable for the motor vehicle, watercraft, or trailer or for any damages to the motor vehicle, watercraft, or trailer once the tower takes possession of the property. Any tower shall be licensed pursuant to the Louisiana Towing and Storage Act, R.S. 32:1711 et seq. See R.S. 9:4759(9).

The Act enacts a new Paragraph that provides that a reasonable late fee may be imposed and collected by an owner for each period that a lessee does not pay rent when due under the rental agreement, provided the amount of the late fee and the conditions for imposing such fee are stated in the rental agreement or in an addendum to that agreement. For purposes of this new Paragraph, a late fee of twenty dollars or twenty percent of the monthly rent, whichever is greater, shall be deemed reasonable and shall not constitute a penalty. Any reasonable expense incurred as a result of rent collection or lien enforcement by an owner may be charged to the lessee in addition to late fees. See R.S. 9:4759(13).

The Act enacts a new Paragraph providing that if the rental agreement contains a limit on the value of property stored in the lessee's storage space, such limit shall be deemed to be the maximum value of the property stored in that space and the lessor shall not be liable for any claims in excess of any such stated value. See R.S. 9:4759(14). This Act amends La. R.S. 9:4757(5) and 4759(3), (4), (5), (8), (9), (10), and (11) and enacts R.S. 9:4757(6), (7), and (8) and 4759(12), (13), and (14).

Real Estate License Law View Act 533; Effective 8/1/16 SB 259 (Act 533) by Sen. Bodi White makes changes to the Louisiana Real Estate License Law. Among other things, the Act amends provisions relative to the powers of the Louisiana Real Estate Commission; amends various provisions dealing with licensing, registration and education requirements for those engaging in real estate activity; and amends provisions dealing with fees chargeable by the commission. This Act amends La. R.S. 37:1433, 1435(C)(1) and (2), (D), (E), (F), and (H), 1436, 1437, 1437.1(A), (B), (C), (D), (F), and (G), 1437.2, 1437.3, 1438, 1439, 1441, 1443(1)(f) and (4), 1446, 1449, 1451, 1465, and 1466(F) and repeals R.S. 37:1435(C)(3) and 1443(3)(g).

Medical Marijuana View Act 96; Effective (See Act) SB 271 (Act 96) by Sen. Fred Mills allows a physician that meets the requirements of the Act to recommend medical marijuana (in a permissible form) for therapeutic use by patients with debilitating medical conditions as defined in the Act. Among other things, the Act provides the following: definitions; physician requirements; rulemaking requirements; and responsibilities of certain licensing boards and agencies. This Act amends La. R.S. 40:1046 and enacts R.S. 40:1047.

Resolution to Study a Statewide Filing System for Clerks View HR 191; Sent to Sec. of State HR 191 by Rep. Tanner Magee creates the Clerk of Court Statewide Filing System Task Force to study and make recommendations regarding the implementation and development of a universal electronic filing system for civil proceedings throughout the state and to provide for a written report of its recommendations and findings no later than sixty days prior to the 2017 Regular Session of the Louisiana Legislature.