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Read. Follow. Verify.Louisiana House Bill 40 Exempts Employers from Unfunded Liability Payments After Certain Police Employee Transfers
Last action · March 9, 2026: Read by title, under the rules, referred to the Committee on Retirement.Sponsor: Rhonda Butler
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What This Bill Proposed
Louisiana House Bill 40 exempts police departments from making payments to the Municipal Police Employees' Retirement System if a partial department dissolution resulted solely from transferring employees to another participating department where they remain system members.
Determines whether local police departments or municipalities must pay large unfunded liability assessments to the state retirement system when transferring officers between agencies.
Who It Would Have Affected
Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.
Municipal police departments
Police departments that transfer employees may be exempt from or have modified calculations for unfunded accrued liability payments.
Municipal Police Employees' Retirement System
The system is required to evaluate transfer circumstances and recalculate unfunded liability obligations for qualifying employers.
Key Facts
- The Municipal Police Employees' Retirement System must determine whether a partial police department dissolution would have occurred without an employee transfer.
- If a partial dissolution would not have happened absent the transfer and transferred employees remain system members, the transferring employer is excused from unfunded accrued liability payments.
- If the retirement system determines a partial dissolution would have occurred regardless of the transfer, calculations of the amount due exclude the transferred employees.
- Present law defines partial dissolution based on employee headcounts dropping below 70% of the previous year or decreasing by 50 or more employees as of June 30.
Frequently Asked Questions
When is an employer exempt from unfunded accrued liability payments under HB 40?
How is the payment calculated if a partial dissolution would have happened anyway?
What else do you want to know?
News Coverage
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Votes, people, money & the original sourceWhere This Stands
This bill did not become law - Died at adjournment · in House committee.
Procedural history
4 actions- Mar 9, 2026HouseIntroducedRead by title, under the rules, referred to the Committee on Retirement.
- Jan 23, 2026HousePrefiled.
- Jan 23, 2026HouseCommitteeUnder the rules, provisionally referred to the Committee on Retirement.
- Jan 23, 2026HouseFirst appeared in the Interim Calendar on 1/23/2026.
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
Connected Entities
Sources
www.legis.la.gov
Analysis Score
0–100- Significance20Lowered because this bill did not pass (its text scored 45)
- Controversy10Intensity of disagreement among stakeholders
- Entertainment5Compellingness for a non-policy-wonk reader
- Buzz15Current news / social attention level
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