Louisiana House Bill HB807

Louisiana 2012 Regular Session

• Introduced: 3/12/12
• Refer: 3/12/12
• Report Pass: 5/2/12

Caption

Provides relative to the application of the Code of Governmental Ethics to certain services provided by certain insurance producers and insurance consultants

Impact

The enactment of HB 807 could significantly alter the ethical landscape surrounding insurance dealings with government bodies. By explicitly stating that insurance services provided to government entities do not constitute governmental functions, the bill seeks to minimize the restrictions imposed on insurance producers. This modification could enhance the ability of government agencies to select insurance solutions tailored to their needs without facing procedural hurdles typical of governmental functions, thereby potentially expediting the procurement process for insurance services.

Summary

House Bill 807 is a legislative measure introduced by Representative Huval, aimed at modifying the application of the Code of Governmental Ethics specifically concerning services provided by insurance producers and consultants to governmental entities. The bill proposes that the provision of normal insurance or risk management services should not be deemed a governmental function, nor should individuals providing such services be considered as operating under the authority of elected officials or public employees. This change is intended to create clearer boundaries regarding the interactions between insurance providers and government agencies, potentially allowing greater flexibility for these insurers in client engagements with public entities.

Sentiment

The sentiment around HB 807 appears largely supportive among those in the insurance industry who argue that the bill will streamline communications and transactions between insurers and governmental entities. However, some concerns may exist regarding ethical implications and transparency, as this separation may lead to perceptions of diminished accountability when public funds and interests are involved. The discussions surrounding the bill hint at a balance between fostering efficient operational practices within government and maintaining high ethical standards.

Contention

While the bill aims to facilitate insurance service provision, it raises points of contention, particularly among public ethicists and watchdog organizations who might argue it risks introducing loopholes that could be exploited. The concerns are centered on the potential for conflicts of interest and the erosion of ethical boundaries that underpin public service engagements. The legislative review process will likely scrutinize the bill's provisions to address any ethical gaps that could undermine public trust in governmental insurance contracts.