Daily Report

A bloc of conservative Republicans in the Louisiana House of Representatives couldn't stall a budget bill today that taps into one-time dollars to help piece together spending plans for the next fiscal year. The House voted 63-38 to send the bill to the Senate, raising questions about whether the coalition was fracturing and would be unable to hold together in negotiating a final version of next year's $25 billion operating budget with the Senate. The group of GOP lawmakers objects to using the one-time cash, calling it an irresponsible way to pay for state operating expenses that reappear year after year. The Republican Jindal administration and other lawmakers argue removing the one-time money would force steep cuts to public colleges and health services. In an unrelated matter at the Capitol today, a proposal to ban the use of hand-held cell phones while driving failed to win support in the Louisiana Senate. The Senate Transportation Committee voted 2-1 against the House-backed proposal. New Orleans Rep. Austin Badon, a Democrat, says he proposed the bill as a safety measure. Under terms of the bill, drivers could legally use a hands-free device to talk on the phone behind the wheel. Critics say cell phone use by drivers isn't any more dangerous than actions like drinking coffee while driving, eating while driving or reading the newspaper while driving. Livingston Sen. Dale Erdey, a Republican, says hands-free devices aren't any safer than holding a phone to the ear. Louisiana currently has a ban on texting while driving.

While the state's 10 riverboat casinos outside Baton Rouge posted a combined decrease in winnings of about 8% in April compared to the same month last year, the Belle of Baton Rouge and Hollywood Casino collectively won 4.3% more from gamblers on the month, according to figures out today from the Louisiana Gaming Control Board. The Belle accounted for most of that increase, taking in $6.9 million in April, a 9.9% increase. Hollywood Casino's $10.5 million in winnings represented just shy of a 1% increase. When Baton Rouge's casinos' winnings are added to the losses seen at casinos in the Shreveport, Lake Charles and New Orleans markets, Louisiana's riverboat casinos saw combined winnings dip 5.9%—from $139.6 million in April 2011 to $131.5 million last month. Louisiana's lone land-based casino, Harrah's in downtown New Orleans, also had a tough April, taking in $26.8 million on the month—8.4% less than in April 2011. Louisiana's four racetracks took in a combined $33.2 million, which is 1% less than a year ago. The figures do not include Indian reservation casinos in Louisiana, which are not required to report their winnings to the public. You can access complete casino revenue reports at the Louisiana Gaming Control Board's website here.

Esperance Pharmaceuticals, a Baton Rouge-based company founded on technology developed at LSU, Pennington Biomedical Research Center and the LSU AgCenter, announced today it has begun enrollment of a randomized, multicenter Phase 2 trial of its lead drug, EP-100. The drug, which will undergo trials in combination with paclitaxel, could serve as a targeted treatment of advanced ovarian cancer. Esperance CEO Hector Alila has compared EP-100 to a "guided missile," saying "it seeks and destroys only those [cancer] cells without harming normal cells." The EP-100 Phase 2 study is enrolling five to eight patients in an attempt to confirm the maximum safe dose of the drug, in combination with paclitaxel. The randomized study will later enroll 40 patients randomized at a 1:1 ratio to receive either the standard weekly dose of paclitaxel or the same regimen of paclitaxel plus twice weekly EP-100 doses for three of four weeks, during each of six cycles. Complete details of the trial can be found here. Results of a Phase 1 study of EP-100 in advanced solid tumors will be presented at the annual meeting of the American Society of Clinical Oncology in June. "Based on our successful Phase 1 study and results of preclinical studies, we believe there is a compelling rationale for the study of EP-100 in ovarian cancer," says Alila. "We are hopeful EP-100 may hold promise for this patient population with very few treatment options." Read a Business Report cover story from October on Esperance here.

In an attempt to "restructure its business portfolio and address underperforming assets," Albemarle Corp. says it plans to exit the phosphorus flame retardant business and close two such plants in the U.K. and China. However, the Baton Rouge specialty-chemical manufacturer notes that both plant closures are subject to consultation with its employees. Those conversations are taking place now. "Subject to the conclusion of the consultation process in the U.K., production at both facilities will cease upon completion of customer contracts," says a news release from Albemarle. Closing the plants will cost an estimated $5 million to $15 million, the company says, and it expects to recoup those funds in about one year. In addition, Albemarle expects to incur a one-time, after-tax accounting charge in the range of $80 million to $95 million during the second quarter of this year, resulting from severance and closure costs, as well as asset write-downs. "Once these actions are completed, including a restructuring program intended to eliminate costs allocated to the phosphorus business, annual earnings per share should improve by $0.10 to $0.15 per share in 2013," the news release says.

Oil and gas companies have until June 19 to file their bids for the government's upcoming auction of drilling leases in the central Gulf of Mexico, the Interior Department announced today. The Houston Chronicle reports as many as 7,276 blocks covering about 38.6 million acres will be up for grabs in the sale to be conducted at the Mercedes-Benz Superdome in New Orleans on June 20. The auction will mark the final sale in an existing five-year Bush-era plan for leasing the outer continental shelf, which ends on June 30. The Interior Department's Bureau of Ocean Energy Management offered up details on the auction in a final notice of sale today. BOEM Director Tommy Beaudreau says the auction will give oil and gas companies fresh access "to a number of world-class producing basins, including many in deepwater areas that are becoming increasingly accessible with new technology." The acreage on the auction block includes areas ranging from three miles to 230 miles offshore, with water depths up to roughly 11,115 feet in the central Gulf of Mexico. According to the ocean energy bureau's estimates, the region contains close to 31 billion barrels of oil and 134 trillion cubic feet of natural gas that are undiscovered but technically recoverable. The auction constitutes a combination of two planned sales that were delayed by required environmental reviews following the 2010 Gulf oil spill.

Louisiana's property insurer of last resort has gotten permission to secure a $75 million cash line of credit in case a hurricane damages the state. The Louisiana Citizens Property Insurance Corp. has enough money set aside to cover a $110 million legal judgment against the company, but paying it could nearly drain its bank account. In consequence, the Bond Commission agreed today to allow the insurer to establish the credit for a bank loan in case of a catastrophic event where the company would need millions to pay claims. Treasurer John Kennedy says Citizens won't draw down the money unless there is an emergency. The $110 million judgment, still being argued in legal proceedings, was levied against the company for its slow movement in paying hurricane damage claims in 2005.

Words without ink: New Orleans Saints quarterback Drew Brees was no longer putting any kind of optimistic spin on his lingering contract standoff with the Saints on Wednesday, telling WWL radio that the process has been "extremely frustrating." The Times-Picayune reports Brees also ratcheted up the pressure on the Saints, suggesting that the "lack of communication" with the organization has been his biggest disappointment. "There's always a back-and-forth when it comes to these negotiations. But I know we've reached out on quite a few occasions. And at times I know I've been frustrated with the lack of response," Brees says in the radio interview. "I would just say, there should be a sense of urgency, and yet it seems like there's not." Read the full story here.

Busted down on Bourbon Street: Brian Downing, the Alabama fan seen on a video apparently committing sexual battery on an unconscious LSU fan after the BCS championship football game, has been indicted. An Orleans Parish grand jury today handed down the indictment against the 32-year-old Downing, formally charging him with one count each of sexual battery of a male victim and obscenity. A video that went viral on the Internet is believed to have been taken at the Krystal hamburger restaurant on Bourbon Street in New Orleans after Alabama defeated LSU on Jan. 9. A man—said to be Downing, of Smiths Station, Ala.—wearing Crimson Tide attire appears to expose himself and perform a simulated sex act on the LSU fan. The court set a bond in the amount of $50,000.

Now it's personal: Suspended Saints linebacker Jonathan Vilma has filed a defamation lawsuit against NFL Commissioner Roger Goodell. The lawsuit filed today in U.S. District Court in New Orleans claims Goodell has made false statements about Vilma while discussing the NFL's bounty investigation of the New Orleans Saints. Goodell has said Vilma was a leader of the team's bounty program and put up thousands of dollars for bounties on opposing team's star players, including on then-Arizona quarterback Kurt Warner and then-Minnesota quarterback Brett Favre during the 2009-10 playoffs. Goodell has also suspended Vilma for the entire season. Vilma and three other players who received shorter suspensions all have appealed their punishments. Vilma denies putting up money to knock any player out of a game. His lawsuit asks for unspecified monetary damages.

John Maginnis is out today, and his 'Capitol Views' column on the legislative session will resume upon his return.

Louisiana Public Broadcasting is providing a daily video update featuring highlights of the session, which you can see beginning at 6 p.m. here.