Louisiana Moving Ahead With Incumbent Franchise Opt-Out Provision

Louisiana is moving forward with implementation of its state franchising law, as a state court judge issued a one-paragraph ruling in December that the opt-out provision for incumbent operators in the new law is constitutionally permissible. The Louisiana Police Jury Association, the trade group for parishes in the state, would like to appeal the ruling of Judge Janice Clark of the state court in Baton Rouge, but its attorney said the group needs more guidance from the judge. The LPJA's Dan Garrett has asked for a written ruling detailing the judge's thinking on the new law. The trade group challenged the provision in the law in the 19th Judicial District Court on Oct. 27. The municipal group alleged the provision, which allows incumbent operators to opt out of their current, local franchise provisions on implementation of the law, in unconstitutional under state law. Louisiana's constitution prevents state laws that serve to "extinguish" obligations between local cities and companies with whom they contract, the association argued.