Insurance Reforms Head to Governor’s Desk

by | May 6, 2024 | Legislative Advocacy

Home » Insurance Reforms Head to Governor’s Desk

Several 1A-priority bills advanced during week eight of the 2024 Regular Session, including a package of four bills focused on the state’s property insurance crisis, which has been sent to Governor Landry’s desk. Together, the measures represent what Commissioner Temple calls a “bold first step” for insurance reform in Louisiana. A bill to reorganize Louisiana Economic Development (LED) also moved another step forward in the legislative process and now heads to the Senate floor. Legislators are teed up for a big week nine, where a vote is expected in the House on legislation calling for a limited Constitutional Convention.

Legislators have until June 3 to handle business before adjournment. Read on for a recap of week seven and a look ahead at week eight.

 

 

WEEK EIGHT RECAP

 

Property Insurance Reforms Headed to Governor’s Desk
As we approach the final weeks of session, many 1A-supported measures are approaching the finish line, i.e, they’re headed to Governor Landry’s desk on the 4th floor of the Capitol.

Among the measures headed to the Governor are a package of insurance bills supported by Insurance Commissioner Tim Temple: 

  • HB 120 by Rep. Willard – ensures continuation of the Louisiana Fortify Homes Program. The program authorizes grants of up to $10,000 to homeowners to retrofit roofs to better withstand weather events. Without HB 120, the program would have sunset in 2025
  • HB 611 by Rep. Firment – removes Louisiana’s three-year rule for new policies – the only of its kind – putting Louisiana in line with every other state in the U.S. in allowing insurers to more effectively manage risk
  • SB 295 by Sen. Cloud – increases speed-to-market for insurance products by shifting Louisiana’s ratemaking system from a “prior approval” process to a “use and file” system, allowing insurers more flexibility to price their product
  • SB 323 by Sen. Talbot – promotes good faith and fair dealing in the property insurance claims process by providing clear rights and timelines for both the insured and the insurer, encouraging swift claims resolutions and discouraging unnecessary litigation

On final passage of these measures, Commissioner Temple stated that “these bills provide real solutions that have been plaguing our market and start the process of bringing the Insurance Renaissance Louisiana deserves.” Read more from Commissioner Temple HERE.

  

Louisiana Economic Development (LED) Restructure
Legislation to revamp Louisiana Economic Development (LED), SB 494, was reported favorably by Senate Finance last week, where the committee took testimony on the bill on Monday, 4/29, before requesting the author, Senate Commerce Chair Beth Mizell, hold the bill until the committee’s Thursday meeting in order to grant time for members to consider the amendments offered. The Committee then reported the bill favorably as amended on Thursday, 5/2.

1A is supporting SB 494 to strengthen LED as a business-first, best-in-class economic development agency. The bill makes key changes that modernize LED’s organizational structure and operations and remove burdensome regulations constraining the department’s ability to function proactively and keep pace with the business sector.

Key provisions of SB 494 include:

  • Creating the Louisiana Economic Development Partnership (LEDP), a 12-member board led by highly-qualified private-sector members representing a cross-section of Louisiana’s key industries:
    • 9 gubernatorial appointments (one from each of the state’s eight economic regions and one at-large)
    • 1 appointment by the Speaker of the House
    • 1 appointment by the President of the Senate
    • LED Secretary, as a non-voting member
  • Requiring LED to develop a long-range economic development plan and a comprehensive strategic plan with the advice and consultation of the LEDP
  • Redesigning membership of the Louisiana Economic Development Corporation board to add more economic development and business oversight
  • Requiring a plan to seek federal, private, and other grant funds to support economic growth

  

Workforce Readiness
Another of 1A’s priority bills, SB 293 by Senator Edmonds, seeks to address Louisiana’s critical talent shortage by strategically aligning state workforce development programs and funding under a single point of contact, the Louisiana Workforce Commission (LWC). LWC Secretary Susana Schowen is a proven leader on business workforce solutions, and SB 293 will ensure Louisiana’s workforce strategies are best positioned to foster economic success for our citizens and industries. SB 293 was reported favorably by House Labor and Industrial Relations on 5/1 and now heads to the full House.

  

Computer Science Education
1A-supported HB 264 by Rep. Hughes also cleared a committee hearing in its opposite chamber last week. Entitled the “Computer Science Education Advancement Act of 2024,” HB 264 would make computer science a high school graduation requirement, as well as a qualification requirement for the Taylor Opportunity Program for Students (TOPS), to be fully implemented by the graduating class of 2031. Computing jobs are among the highest-wage and highest-demand careers nationally. Unfortunately, Louisiana currently lags behind our southern neighbors with only 35% of our high schools offering computer science courses, compared to 78% in Mississippi, 95% in Alabama, and 99% in Arkansas.

HB 264 will better align Louisiana’s high school curricula with our peers and set students up for success in high-wage, high-demand computing occupations. The bill was reported favorably without objection by Senate Education on 5/1 and now heads to the full Senate.

Check out more state-specific computer science education statistics at Code.org.

  

Occupational Licensing
Also on the 1A priority list is HB 716 by Rep. Owen, which cleared the Senate Commerce Committee last week. Entitled the “Welcome Home Act,” HB 716 would provide for universal recognition of occupational licenses for individuals moving into our state from elsewhere in the country. HB 716 provides for a recognition process that would grant an occupational license or certification to an individual moving to Louisiana if certain criteria are met, including that the individual is in good standing with the state they’re coming from.

The Institute for Justice reports that nearly one in five American workers are affected by occupational licensing and 20 other states have enacted their own version of universal license recognition, including neighboring Mississippi. 1A supports HB 716 to reduce barriers to employment and make it easier for professionals to relocate to Louisiana or for those who have left to come back home.

HB 716 was reported favorably as amended by Senate Commerce on 5/1 and now heads to the Senate floor.

 

Constitutional Convention
On the House floor last week, House and Governmental Affairs Chairman Rep. Beau Beaullieu offered additional amendments to his legislation, HB 800, calling for a limited Constitutional Convention to restructure Louisiana’s overly complex governing document.

HB 800 provides that the Convention would be comprised of 171 delegates, including the 144 members of the Legislature and 27 delegates appointed by the Governor, to convene on May 20, 2024. Delegates would frame a new constitution under the directive that they determine the provisions of the document that constitute the fundamental and foundational law of the state that should remain in the constitution and place any remaining provisions in statute.

The measure cleared its initial vote in House and Governmental Affairs on April 24 after three rounds of hearings that included amendments and public testimony. Then, last week, House Appropriations was required to consider the legislation due to the costs associated with hosting a convention. Appropriations Committee members reported the bill favorably on 4/29.

Rep. Beaullieu took to the House floor later in the week to offer additional amendments which would ensure the state’s homestead exemption and Minimum Foundation Program (MFP) would be protected. He then returned HB 800 to the calendar to allow House members time to consider the amendments before he plans to call for a vote on the measure on Tuesday, May 7.

Stay tuned for future updates.

 

 

LOOKING AHEAD

 

Literacy and Numeracy
Two 1A-supported measures seeking to boost reading and math competency among K-12 students, HB 244 by Rep. Hughes and HB 267 by Rep. Carver, will be reconsidered in House Appropriations today, 5/6. These bills build on the success of the Steve Carter Literacy Tutoring Program and place a renewed focus on numeracy skills among Louisiana’s students.

HB 244 renames the Steve Carter Literacy Tutoring Program to the “Steve Carter Education Program,” and expands services provided to include math tutoring. The bill also extends the availability of the program, originally only open to students in grades K-5, to students through grade 12, and increases the per-student funding available from $1,000 to $1,500.

HB 267 requires the Louisiana Department of Education (DOE) to develop or select and provide screeners in order to measure the foundational numeracy of K-3 public school students. Public schools would administer DOE’s screeners three times during the school year and provide interventions and support to students identified as having numeracy skills below grade level.

Both bills were heard by House Appropriations earlier in the session but were paused as legislators awaited the latest Revenue Estimating Conference (REC) projections…

 

Revenue Estimating Conference
On that note, the REC has officially rescheduled their meeting to provide the latest projections on revenue the state will have available for appropriation in the current and next fiscal years. The REC’s forecast will provide legislators a better understanding of the amount of state funds available to allocate to new programs.

REC meets tomorrow, Tuesday, 5/9 at 9:30 AM.

 


 

1A is tracking key legislation across three priority areas outlined in our 2024 Legislative Priorities:

  • Economic competitiveness
  • Talent development
  • Infrastructure investment

Be on the lookout for 1A legislative updates on these issues, and more, every Monday morning.