We've made it to May and the home stretch of week eight of the Regular Session. The legislature completed the vast majority of its work for the week as both the House and Senate won't convene again until Monday.
Civil Law Approves Bill Targeting Foreign Legal Funders
The House Civil Law Committee considered a bill targeting foreign third-party litigation financing arrangements, legislation LABI maintains concern with as it does not provide transparency regarding the domestic use of these funding arrangements. SB 355 by Sen. Jeremy Stine (R-Lake Charles) requires foreign funders to disclose certain information to the attorney general.
While LABI appreciates the general intent behind Sen. Stine's effort, his bill allows domestic third-party financing arrangements to continue operating in the dark, only addressing one side of a multi-faceted, increasingly prevalent problem.
There was an attempt to amend the bill in Committee to mirror Rep. Emily Chenevert's TPLF legislation, HB 336, which would have removed LABI's concerns that Sen. Stine's bill does not go far enough to address the issue at hand. However, that amendment failed to pass by a vote of 4-9.
Jud A Committee Recap: The Good, the Bad & Under Construction
If you've been following along this session, you know that this week was a crossroads for several of LABI's top priority bills on the legal and insurance reform front. So far, bills targeting Louisiana's abusive legal climate have sailed through the legislative process with overwhelming, bipartisan support. As expected, Jud A—long known as the place good legal reform bills go to die—was the speed bump in the journey to lowering insurance costs.
THE GOOD
SB 84 by Sen. Alan Seabaugh (R-Shreveport), which revises what constitutes an offer of judgment, was advanced from the Committee without objection as amended. This bill adjusts an imbalance in the Code of Civil Procedure that allows plaintiffs to capitalize on a provision typically reserved for defendants in other states. That's a lot of legalese to say this bill will put Louisiana more closely in line with peer states that allow offers of judgment.
SB 130 by Sen. Adam Bass (R-Bossier City) received its first hearing which lowers Louisiana's jury trial threshold from $10,000 to zero.
Prior to 2020, Louisiana had the highest jury trial threshold in the nation, meaning unless your case was valued at $50,000 or higher, a judge—rather than a jury—would decide the verdict. The next highest threshold was $15,000 in Maryland, and 32 states have no jury trial threshold at all. The Civil Justice Reform Act of 2020 lowered the threshold to receive a jury trial to $10,000 (except in specific circumstances), bringing Louisiana down to the number two spot for the highest jury trial threshold in the country.
SB 130 removes the value limitation on receiving a jury of your peers. There is still a long road ahead to get this bill to the finish line, but LABI supports the effort to align Louisiana with the majority of other states.
THE BAD
Two bills in the package supported by LABI and the Louisiana Department of Insurance were voluntarily deferred by their respective authors at the request of Chairman Greg Miller, who is typically the tie-breaking vote in Committee. While there is still potential for a revival, chances are slim to none
Those measures were HB 24 by Rep. Michael Melerine (R-Shreveport), which would have repealed the Housley Presumption of causation, and HB 336 by Rep. Emily Chenevert (R-Baton Rouge) to require the disclosure of third-party litigation financing arrangements.
Both bills - key components of LABI and our coalition's lawsuit reform package - would have helped signal to insurers that Louisiana is back open for business.
UNDER CONSTRUCTION
HB 423 by Rep. Michael Melerine (R-Shreveport) as originally drafted limits the number of damages recoverable to the amount actually paid. As amended, the bill provides the court discretion in awarding up to an additional 20% of the difference between the amount billed and the amount paid to account for costs such as copays and deductibles.
Committee amendments to the bill clarified that medical costs paid were subject to the rules of discovery. The bill was reported with amendments by a 4-3 vote, with Chairman Greg Miller (R-Norco) breaking the tie.
While the passage of SB 84 and HB 423 are steps in the right direction, as Commissioner of Insurance Tim Temple noted in his testimony, there is no silver bullet. Still, this package of bills was specifically designed to address Louisiana's legal climate holistically to confront our insurance crisis—and to stimulate competition to lower insurance costs, the entire package needed to be passed collectively.
The majority of Jud A Committee members today continued the cycle of siding with billboard lawyers over constituents by adding several noteworthy bills to the legal reform graveyard, again taking a piecemeal approach to addressing Louisiana's deep-rooted culture of lawsuit abuse. The results remain to be seen, but LABI will continue to be on the front lines advocating for changes that will bring competition to the insurance market.
Workforce Alignment
Two LA Driven-approved instruments were reported favorably and are headed to the Floor. These measures aim to corral funding and programming for workforce development to ensure the effective and efficient use of taxpayer dollars to address the state's workforce needs:
- SCR 11 by Sen. Mike Reese (R-Leesville), which urges the Congress of the United States to amend federal law to allow states to provide for the consolidation of federally funded workforce development services with federally funded social safety net services, and
- SB 293 by Sen. Rick Edmonds (R-Baton Rouge), which creates a single point of contact in the Louisiana Workforce Commission for all workforce development programs and funding.
Also in House Labor, LABI-backed HB 703 by Rep. Michael Melerine (R-Shreveport) was reported with amendments by a 10-4 vote. The bill puts reasonable limits on punitive attorney fees. It shuts down a money pipeline that serves only to drive unnecessary litigation and delay the resolution of claims.
Louisiana’s workers’ compensation system generates far more litigation than in other states and has become a “cash cow” for attorneys. Our employers should not be cowed into submission by the threat of unreasonable attorney fees and penalties
Education
This week, the Senate Education Committee members took up several LABI-supported bills that advance LA Driven priorities, including maintaining high standards for students and schools, expanding access to school choice and ensuring students graduate from high school ready for college or career.
First up were two bills focused on student and school accountability. HB 8 by Rep. Michael Melerine (R-Shreveport) ensures the bar will not be lowered for students to earn a diploma. The legislation prohibits using an appeals process for certain students who fail to pass state-administered tests required for high school graduation.
HB 112 by Rep. John Wyble (R-Bogalusa) requires superintendent evaluations to be based, in part, on student achievement in literacy and math in grades K-3, bringing a new level of accountability to school districts. The bill passed the House by a vote of 97-0.
LABI supports these efforts to demand high standards for students to ensure they are set up for success. Both bills were reported favorably and now head to the full Senate for consideration.
HB 190 by Rep. Barbara Freiberg (R-Baton Rouge), allows for the business community to provide input on early childhood care and education by adding members to the Early Childhood Care and Education Commission. It passed the House by a vote of 70-30. LABI has long supported investments in early childhood care and education and believes the business community needs a voice at the table when these decisions are made.
HB 264 by Rep. Jason Hughes (D-New Orleans) adds computer science as a high school graduation requirement. Computer science drives innovation and technological advancement in numerous industries, from manufacturing to healthcare to finance. Adding this course as a graduation requirement will give students the foundational knowledge and valuable skills needed for modern careers, and LABI supports this effort to anticipate the workforce needs of the future and prepare students accordingly. HB 264 was reported favorably. It passed house by a vote of 102-1.
Arguably the most debate was HB 708 by Rep Freiberg, which removes requirements that charter schools meet a certain threshold with respect to the number of students with exceptionalities and economically disadvantaged students relative to their total student enrollment. The bill was reported with amendments. It passed the House by a vote of 66-33.
And finally, HB 862, also by Rep. Hughes, gives autonomy to higher education institutions when it comes to tuition costs. Current law provides the authority to change tuition costs to the Legislature, but only with a two-thirds majority vote. Louisiana is one of only two states, along with Florida—that requires legislative approval for higher education institutions to make price adjustments.
Given the impending fiscal cliff, giving tuition autonomy to higher education institutions is key to ensuring the viability of many high-cost programs in the event of budget cuts. Maintaining program quality and robust education opportunities is paramount to keeping young adults here in Louisiana for post-secondary education. The bill was reported favorably by a vote of 5-2.