BATON ROUGE, La. (AP) - Louisiana’s state senators Wednesday blocked approval of a $3.6 million casino support services contract for New Orleans amid complaints that the city’s new smoking ban likely will cause the state to lose money.
The prohibition against smoking in bars and gambling halls took effect last month.
Louisiana collects fees from the Harrah’s casino, a horse racing track and video-poker halls in New Orleans. If revenue at the gambling locations falls, the state also collects less.
Estimates predict that, because of the smoking ban, Louisiana could lose anywhere from 5 percent to more than 20 percent of its share of the gambling revenue from New Orleans, which could total millions of lost revenue.
New Orleans lawmakers had sought approval from the Joint Legislative Committee on the Budget for the support services contract, which would authorize the state to pay New Orleans for police, fire and sanitation services at Harrah’s for the fiscal year that begins July 1.
Rep. Walt Leger, D-New Orleans, said conversations continue with city officials about possible tweaks to the smoking ban. But that wasn’t enough to persuade lawmakers.
Approval had been twice delayed. On Wednesday, the contract was rejected.
House members on the committee voted 9-7 for contract approval. But the vote was 4-7 from senators on the panel, with Senate President John Alario among those opposed.
Even with contract approval, the money also would have to be included in the state budget before the city could collect the payment.
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Drivers for rideshare services like Uber and Lyft would be required to carry beefed-up insurance policies under a proposed law advancing in the Louisiana Legislature.
The proposal’s sponsor, Sen. Dan “Blade” Morrish, R-Jennings, said the bill is a “21st century” solution to public safety concerns that have “been an issue across the country.”
Rideshare services like Uber connect contract drivers, who frequently use their personal cars, with passengers through a smartphone app. These providers have drawn scrutiny in cities around the U.S. where they operate, often because of safety issues that arise from the lack of regulation.
Under Senate Bill 172, drivers would be required to carry a $1 million minimum insurance policy when shuttling passengers. Any driver found without adequate insurance could face a misdemeanor charge, a maximum $1,000 fine and no less than 60 days in jail.
The proposal won support Wednesday from the House Insurance Committee and heads next to the full House for consideration. The Senate has passed the bill.
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Online:
Louisiana Legislature: www.legis.la.gov
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