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April 19, 2024
CEO visits Capitol

Our legislative delegation is hard at work at the Capitol in committees, meeting with special interest groups that visit daily, and in session. Our CEO Lacey Osborne traveled Tuesday to check in with some of our members on bills including some mentioned in today’s update. She attended the House Governmental Affairs committee where there was a lively discussion on the bill calling for a Constitutional Convention to begin May 20. We are watching that bill closely, as we are planning our Northshore Focus Day at the Capitol on May 29.
Regulatory Rollback Unanimously Approved by House
LA Driven-priority bill HB 109 by Rep. Shane Mack (R-Livingston) sailed through the House by a vote of 100-0 and is on the way to the Senate for consideration. This bill overhauls Louisiana's regulatory climate, a significant impediment to business growth and economic development. The bill implements a process for a five-year review of all agency rules and regulations and requires reporting to legislative oversight committees. Thank you to members of the House for clearing the way to a simplified, streamlined regulatory system. 
 
Corporate Charter Clears Senate Floor
LABI-supported SB 47 by Sen. Kirk Talbot (R-River Ridge) advanced to the House this afternoon by a 27-11 vote. This bill allows charter schools with a corporate partner to apply directly to BESE as a Type 2 charter school, an opportunity to expand educational choice for parents while driving economic and workforce development in our state.

Currently, these type of charter partnerships must first get approval from their local school boards. That often leads to political roadblocks and red tape. Introducing a new level of efficiency to the process will invite more businesses to collaborate with charter schools.  
LABI believes this type of economic development tool deserves the consideration of BESE, as high-quality schools help attract and retain businesses in Louisiana.

Also speaking of greater efficiency, the Senate unanimously signed off on SB 272 by Sen. Rick Edmonds (R-Baton Rouge), which would bring the MJ Foster Promise Program under the umbrella of the Louisiana Workforce Commission, to ensure the program is aligned with workforce development priorities of the state. The measure, which now heads to the House, also increases funding for the program.


Constitutional Convention
The House & Governmental Affairs Committee will discuss one of the most anticipated bills of the session - HB 800 by Rep. Beau Beaullieu (R-New Iberia) - the bill providing the framework for the legislature to hold a limited Constitutional Convention. While details about a possible Constitutional Convention have been swirling for weeks, Tuesday's hearing marked the first time lawmakers have debated the issue publicly. 

HB 800 calls for a limited constitutional convention convening at 5:30 PM on May 20, 2024—two weeks before the scheduled end of the of the regular session—with 171 delegates named:
  • 105 members of the House of Representatives
  • 39 members of the Senate
  • 27 delegates appointed by Governor Landry
Will Green, LABI President and CEO, notes the 2024 delegation would not be tasked with a rewrite of the state's constitution, but rather a reorganization of the document. 

Insurance Reform Measures Continue to Move with Little Opposition
Five LABI-supported insurance reform measures were heard in the House and Senate Insurance Committees. All five bills made it out of committee and now move to the House and Senate Floor, respectively. If passed, these bills would establish a process for good faith and fair dealing in property insurance claims and address other areas where Louisiana is an outlier among other states.

HB 611 by Rep. Gabe Firment (R-Pollock) and SB 370 by Sen. Adam Bass (R-Bossier City) modify the "three-year rule" for homeowners' insurance policies to allow insurers to better manage their risk by removing certain policies from their portfolio. Rep. Firment's HB 611 was reported favorably as amended without objection and SB 370 by Sen. Bass was reported with amendments by a vote of 10-4. 

HB 613 by Rep. Firment and SB 295 by Sen. Heather Cloud (R-Turkey Creek) change Louisiana's rate-filing requirements for property and casualty insurance policies, shifting from “prior approval” to “file and use” to remove restrictions precluding insurers from determining fair market prices for policies. HB 613 was reported favorably from Senate Insurance and SB 295 was reported favorably as amended—both now advance to the Floor. 

The House Insurance Committee also approved Sen. Kirk Talbot's (R-River Ridge) SB 323, which streamlines the claims handling process for property insurance claims and removes the ambiguity in current law. The bill lays out specific timeframes for policyholders and insurers to comply with their respective obligations in the claims process.  

Insurance Commissioner Tim Temple spoke in favor of the bill as part of LDI's package, noting that clarifying this process on both sides is critical for the consumer to get the best service possible. "This is a good, consumer-protection bill," he said. The bill was reported favorably as amended without objection and now moves to the Floor for debate. 

LABI supports this effort to provide clarity to the claims process to facilitate swift payments to policyholders so they can repair and return to their homes. 

 
Carbon Capture Bills Dominate House Natural Resources Agenda
Three LABI-opposed measures limiting the growth of carbon capture and storage (CCS) were up for debate in the House Natural Resources Committee—efforts that could cost Louisiana billions in economic investment and thousands of jobs a year over the next 15 years.

The trio of instruments, all authored by Rep. Robby Carter (D-Amite), placed burdensome regulations on the industry and increase legal liability for companies investing in CCS projects.

Labor Committee to Consider Measures Promoting Fairness and Balance in Workers' Comp System 
In a move to align Louisiana with other states in the workers' compensation arena, a LABI-supported package of bills addressing our state's exceedingly high costs for workers' comp claims is set for hearing in the House Labor Committee. 

Despite our state historically having fewer work accidents than almost every other state in the country, national comparison studies show Louisiana has moved from the 25th highest workers’ comp insurance premium in 2010 to the 5th highest in 2022. By comparison, Mississippi ranks 34th, Texas ranks 46th, and Arkansas ranks 50th.
HBs 529 by Rep. Raymond Crews (R-Bossier City), 619 by Rep. Beau Beaullieu (R-New Iberia) and 703 by Rep. Michael Melerine (R-Shreveport) all aim to bring Louisiana in line with other states in our handling of WC claims. 

HB 529 (Crews) simplifies what's called the "average weekly wage" calculation for benefits—currently a complex formula making the claims process unpredictable and burdensome for adjusters, resulting in costly litigation and delayed claims resolution. 

As amended, HB 529 will define “average weekly wage (AWW)” to mean what it says – the average compensation paid each week by an employer to the injured employee. The bill states that the AWW is the employee’s total earnings divided by the number of weeks worked for the employer, capped at a maximum of 52 weeks.

LABI's Patrick Robinson went to the table in support of HB 529 and noted a successful workers' comp system is designed to do three things:
  • support employees who are hurt on the job,
  • expedite good medical care so they can recover and return to work as fast and efficiently as possible
and come at a reasonable cost to the employer.
However, Robinson explained, in Louisiana those goals are not being met.

HB 618 (Beaullieu) expedites the claims investigation process by requiring employees to sign and return medical releases so their employer can fully investigate the claim. Gathering medical records is critical to the initial investigation of workers’ compensation claims. Likewise, timely reporting allows employers to confirm compensability and avoid unnecessary disputes later on.

Current law requires employees to report work accidents within thirty days and recognizes that reasonable access to medical information facilitates better care and faster return to work for injured workers. Nonetheless, the courts have often watered down the law and excused employees who reported accidents months later, making it difficult for employers to investigate the claim. 

HB 618:
  • Requires employees to sign and return medical releases so their employer can fully investigate the claim and confirm compensability,
  • Allows employers to suspend benefits when employees fail to sign and return a medical release, but also provides for benefits to resume quickly and retroactively once the employee signs and returns the release, and
  • Requires employees to report work accidents within thirty days and imposes a similar requirement that employers report accidents to their insurers promptly.


HB 703 (Melerine) aims to reduce unnecessary lawsuits by placing a reasonable limit on attorney's fees. As we've discussed all session, Louisiana is well known for its abusive legal climate that incentivizes frivolous claims through the promises of high payoffs for claimants. However, this often only results in windfalls for attorneys, while driving up costs for employers. HB 703 brings balance to the claims process by giving employers a reasonable opportunity to correct mistakes quickly, without being subject to excessive attorney fees and penalties. The bill also clearly establishes that the burden of proof rests with the claimant and clarifies the intent of the safe harbor provision under current law.
 
National data shows that workers’ compensation claims costs are far higher in Louisiana compared to other states. Injured workers in Louisiana are off work far longer than their counterparts elsewhere. Lawyers are involved more often and at a greater cost. LABI supports these measures to restore fairness and balance to Louisiana's workers' comp system by bringing our laws in line with those in other states. 
 
These bills were both reported favorably as amended by a vote of 10-3 and now head to the full House for debate. LABI supports these measures to bring fairness and balance to Louisiana's workers' comp system by aligning our policies with those in other states. 

The information included in this Legislative Update is provided by the Louisiana Association of Business and Industry (LABI), the state’s largest business organization, and a voice for the principles of free enterprise in Louisiana. LABI represents the views and interests of the Louisiana business community in the political, legislative, judicial and regulatory processes.
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