Implictions:

Limits excessive future damage awards by ensuring that funds are used only for documented medical expenses and allowing unspent funds to revert to the insurer.

Summary:

Establishes a legal framework for using a Reversionary Medical Trust in personal injury lawsuits where future medical expenses are expected. Aimed at tort reform and cost control.

Key Provisions:

Definition of Reversionary Medical Trust

• A trust created solely to pay for future medical care and related expenses resulting from a personal injury.

Creation and Administration

• If a defendant is found liable for future medical costs, their insurer can set up a reversionary medical trust.
• The insurer appoints and pays a trustee to manage the trust.
• The injured person sends medical bills to the trustee, who pays the providers directly.

Trustee Responsibilities

• Reviews submitted invoices.
• Prepares vouchers and processes payments.
• Operates under the fiduciary duties defined in the Louisiana Trust Code (R.S. 9:1721 et seq.).

Reversion of Funds

• Any money left in the trust after the injured person dies or the trust ends goes back to the party that funded the trust (usually the insurer).

Attorney Fees

• Injured persons can still hire attorneys and agree to pay legal fees and costs.

Prospective Application

• The law only applies to personal injury cases filed after the effective date of the bill.

HOUSE floor amendments [LINK] extend multiple deadlines from thirty to forty-five days and shift responsibilities related to redomestication filings from the Secretary of State to the Commissioner of Insurance.

HOUSE committee amendments [LINK] revise financial requirements, restrict captives from directly selling certain types of insurance (like life and health), but allow them to reinsure workers’ comp for affiliated companies. The changes also define what qualifies as common ownership, streamline redomestication procedures, adjust regulatory approval processes, and require commissioner approval for company names. Most of the changes are technical.

Renames and expands the Captive Insurers Law as the “Creating Holistic Options in Coverage for Enterprise and Self-Insurance (CHOICES) Law,” establishing a comprehensive regulatory framework for captive insurance companies in Louisiana.

A captive insurance company is a special type of insurance company that is created and owned by a business or group of businesses to insure their own risks. Instead of buying insurance from a traditional carrier, the company forms its own insurer—called a captive—to cover things like property damage, liability, or workers’ compensation.

- set up by a business to insure itself.

- Gives the owner more control over coverage, claims, and costs.

- Captives can lead to cost savings, tax benefits, and customized coverage.

- They are regulated by state insurance departments and must meet specific capital, reporting, and licensing requirements.

Common users of captives include large corporations, industry associations, and even municipalities.

Key Provisions of HB635:

- Allows formation and licensure of various types of captive insurance companies, including pure, association, branch, and affiliated reinsurance companies.

- Reduces capital requirements for captive insurers (e.g., $250,000 for pure captives).

- Authorizes new activities including reinsurance and excess workers' compensation coverage under specified conditions.

- Imposes reporting, examination, confidentiality, and operational standards.

- Creates tax and fee structure specific to captive insurers with annual caps.

- Authorizes dormant status and redomestication procedures for captive entities.

- Exempts certain captive records from public disclosure laws.

Proposes comprehensive updates to Louisiana laws regulating athletic trainers to better align with current national standards and practices. The bill focuses on the following areas:

1.    Updated definitions:

o  Revises key terms used in the law.

o  "Athletic trainer" now refers specifically to individuals licensed by the board and certified by the Board of Certification, Inc.

o  "Emergency management" is defined as immediate onsite care under physician supervision using accepted first aid methods.

o  "General supervision" clarifies that a physician need not be physically present during services but must oversee care.

o  "Physical rehabilitation" is redefined as post-injury care that includes prescribed modalities and exercises.

o  "Practice of prevention" includes using clinical guidelines to reduce risks such as injury, illness, or overtraining.

2.    Repeal of outdated definitions:

o  Eliminates terms no longer deemed necessary or appropriate under the updated framework, including "athlete," "athletic injury," "board," and "consulting physician."

3.    Licensure requirements:

o  Updates qualifications for licensure, requiring certification from the Board of Certification, Inc. and compliance with all state board standards.

o  Aims to ensure athletic trainers meet consistent, modern competency benchmarks.

4.    Disciplinary standards:

o  Specifies grounds for license denial, suspension, or revocation.

o  Ensures disciplinary actions are based on professional conduct, ethical violations, or failure to meet standards of care.

5.    Purpose and impact:

o  Seeks to streamline and modernize Louisiana's regulatory approach to athletic training.

o  Enhances public protection by ensuring qualified, accountable practitioners.

o  Aligns state law with national best practices and credentialing expectations.

Proposes legislative changes affecting the village of Hall Summit in Red River Parish, Louisiana.

The bill seeks to amend R.S. 33:381 by adding subsection (C)(37), which would grant the village's board of aldermen the authority to abolish the office of the police chief, contingent upon the mayor's recommendation.

Key Provisions of the Bill:

1.    Abolition of the Police Chief's Office:

o  The board of aldermen may abolish the office of the police chief upon the mayor's recommendation.

o  This action would become effective either at the end of the current police chief's term or upon the occurrence of a vacancy.

o  If the office is occupied by a temporarily appointed officer at the time of the decision, the abolition would take effect as specified by ordinance.

2.    Contracting for Law Enforcement Services:

o  Should both the office of the police chief and the municipal police department be abolished, the mayor and board of aldermen are authorized to enter into contracts or cooperative endeavor agreements with any law enforcement entity or officer within Red River Parish to provide police services for the village.

Context and Implications:

Under existing law, municipalities operating under the Lawrason Act are required to have certain officers, including a mayor, aldermen, and a chief of police. While the board of aldermen has the authority to create, abolish, merge, or consolidate municipal departments upon the mayor's written recommendation, the police department, particularly when led by an elected chief of police, has been an exception to this provision.

LOCAL BILL

Proposes legislative changes concerning the village of Edgefield in Red River Parish. Specifically, the bill seeks to amend R.S. 33:381(C) by adding a new provision, designated as (C)(37).

Under the proposed legislation, the board of aldermen of Edgefield, upon the mayor's recommendation, would have the authority to abolish the office of the chief of police. This action would take effect at the end of the current police chief's term or upon the occurrence of a vacancy, whichever comes first. However, if the office is occupied by a temporarily appointed officer at the time of such action, the abolition would become effective as specified by ordinance.

If both the office of the chief of police and the municipal police department are abolished, the mayor and board of aldermen would be authorized to enter into contracts or cooperative endeavor agreements with other law enforcement entities or officers within Red River Parish to provide police services for the village.

The bill includes a notice indicating that the intention to introduce this Act has been published in accordance with Article III, Section 13 of the Louisiana Constitution.

HOUSE floor amendment [LINK] The amendment lowers the minimum fine from $2,000 to $1,000 and sets the penalty range to $750–$1,000 or imprisonment.

Increases penalties for motor vehicle violations in construction zones, utility work zones, and highway safety corridors when workers are present.

Key Provisions: 

- Sets fines between $500–$2,000 for speeding or entering construction or utility zones when workers are on site. 

- Sets fines between $1,000–$2,000 and allows up to 30 days imprisonment for violations in designated highway safety corridors. 

- Defines “construction zone” and “utility work safety zone” to clarify enforcement areas.

Impact: 

Enhances worker safety by replacing general fine multipliers with specific monetary penalties and potential jail time.