Analysis: Gov. Edwards still wields power despite override of transgender bills

By Christopher Tidmore
Contributing Writer

Most local news coverage concentrated on the fact that John Bel Edwards suffered more overrides of a gubernatorial veto than every other chief executive combined since the ratification of the 1974 Constitution. Yet judging the legislative desire to enact the three anti-LGBTQ+ measures in the one-day, July 18 veto override session over his objections might be the wrong metric to measure Edwards’ relative power.

Roughly two dozen other bills that the governor also rejected were never even brought up for reconsideration, while others fell short of the needed votes to become law. In fact, the measurement of Edwards’ power should be the fact that the bill to phase out the Louisiana Corporate Franchise tax never even came up for an override vote.

Senate Bill 1, by Sen. Bret Allain, R-Franklin, cleared both chambers with only one lawmaker voting in opposition. It was incredibly popular amongst legislators, as independent ratings agencies said that the tax’s abolition would jump Louisiana from 39th to 32nd in the business friendliness rating scale. Moreover, the phaseout wouldn’t cost the state any operating capital. Over a decade ago, corporate income and franchise tax revenues were locked at a ceiling of $600 million for use as operating capital. Any other monies above that sum are directed to the rainy day fund or to pay off debt. Allain called the Franchise Tax “the worst tax Louisiana has on the books” because it discourages investment, ranking as the second-highest franchise tax in the nation at 0.275 percent, with no limits.

The devil, of course, was in the details.

SB 1 did aim to reduce the franchise tax by 25 percent per year if corporate income tax revenues remained above $600 million, and the phase out would have paused if revenues dropped below that figure. However, a companion measure – SB6 – also changed significant provisions of Edwards’ signature achievement, the Quality Jobs Bill. Allain sought to limit its existing tax incentives in order to offset a portion of state revenue lost by eliminating the franchise tax. Edwards disagreed with that alteration and worried that the added revenue drop – at the same time that the state next year will endure a .45 percent reduction in sales taxes – would provide too much fiscal uncertainty to his successor.

Allain, who is term-limited, admitted that he opted not to push for the veto override after quietly canvassing his colleagues in the legislature. Many of the same people who voted for SB1 during the 2023 “Fiscal” Regular Session agreed with the governor’s assessment that it was bad timing to phaseout the franchise tax. “Unfortunately, I talked to every one of our members and just didn’t have the votes,” he told La. Illuminator. “So I’m going to leave it to the next legislature.” Consequently from unanimous support to nonexistent, lame-duck Governor Edwards maintained some significant “stroke,” partially born from a fear amongst legislators that he might duplicate the actions of another Edwards – and run again in four years.

A bill authored by Rep. Tony Bacala, R-Prairieville, to provide more detailed accounting of the state revenue available to lawmakers to spend each fiscal cycle also failed to overcome the governor’s veto override in the House.

House Bill 166 brought no opposition from lawmakers when it was passed last month but failed on a partisan vote of 69-39 in the House – with all Democrats opposed. Rep. Beryl Amedee, R-Schriever, came just one House vote short to override the governor’s veto of House Bill 415, which would have excluded digital currency from being considered a deposit account for banking purposes. (The governor’s veto message warned of unforeseen consequences as federal banking policy for digital currency has not yet been created.) Legislation to deny parole to “dangerous offenders” as defined in Rep. Larry Frieman’s House Bill 188 came up short in a 67-29 veto override vote. (The governor’s veto message argued such legislation as provisions are existent in current law.)

Other measures that passed with overwhelming support yet were not considered in the override session due to gubernatorial opposition included House Bill 91 by Rep. Jonathan Goudeau, R-Lafayette, which dealt with restitution to victims of vehicular homicide; House Bill 205, from Rep. Marcus Bryant, D-New Iberia, establishing overtime pay schedule for teachers and school employees; House Bill 260, from Rep. Beau Beaullieu, R-New Iberia, requiring state legislative approval for any federal election directive handed down from Washington; House Bill 504, from Rep. Alan Seabaugh, R-Shreveport, repealing a law that requires all unclassified state employees and civil service employees making over $100,000 a year hold a Louisiana driver’s license and register all owned vehicles in Louisiana; House Bill 661, by Rep. Nick Muscarello, R-Hammond, calling for the Judicial Council of the Supreme Court of Louisiana to make suggestions to the legislature for merging or splitting judicial districts; House Bill 659, from Rep. Troy Romero, R-Jennings, establishing a registry for certain offenders convicted of crimes against children; Senate Bill 123, by Sen. Cameron Henry, R-Metairie, attempting to shield signatures in recall petitions for 90 days; and Senate Bill 196, by Sen. Barrow Peacock, R-Bossier City, seeking to reveal specifics when financial backing proves the driving force behind litigation.

This article originally published in the July 24, 2023 print edition of The Louisiana Weekly newspaper.