HLS 12RS-1353 ORIGINAL
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are additions.
Regular Session, 2012
HOUSE BILL NO. 807
BY REPRESENTATIVE HUVAL
ETHICS/CODE: Provides relative to the application of the Code of Governmental Ethics
to certain services provided by certain insurance producers and insurance consultants
AN ACT1
To amend and reenact R.S. 42:1123(37)(d) and to enact R.S. 42:1123(37)(e), relative to2
ethics; to provide for an exception for the provision of certain insurance services; to3
provide for effectiveness; and to provide for related matters.4
Be it enacted by the Legislature of Louisiana:5
Section 1. R.S. 42:1123(37)(d) is hereby amended and reenacted and R.S.6
42:1123(37)(e) is hereby enacted to read as follows: 7
ยง1123. Exceptions8
This Part shall not preclude:9
* * *10
(37)11
* * *12
(d) For purposes of this Paragraph, the provision of normal insurance or risk13
management services to a governmental entity in the manner provided by this14
Paragraph shall not be considered to be the performance of a governmental function15
nor shall any person providing the normal insurance or risk management services to16
a governmental entity in the manner provided by this Paragraph be considered to be17
under the supervision or authority of an elected official or public employee.18
(e) The provisions of this Paragraph shall not apply to individually19
underwritten guaranteed renewable limited benefit health insurance policies.20
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HB NO. 807
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Section 2. This Act shall become effective upon signature by the governor or, if not1
signed by the governor, upon expiration of the time for bills to become law without signature2
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If3
vetoed by the governor and subsequently approved by the legislature, this Act shall become4
effective on the day following such approval.5
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Huval HB No. 807
Abstract: Specifies for purposes of certain ethics provisions that certain insurance
functions and services to governmental entities are not governmental functions nor
shall a person providing such services to a governmental entity be considered to be
under the supervision or authority of an elected official or public employee.
Present law (Code of Governmental Ethics) generally prohibits a public servant and certain
associated persons from participating in certain transactions that involve the governmental
entity of the public servant. Prohibits certain contractual arrangements or transactions
between a public servant, or certain associated persons, and the public servant's agency.
Present law provides an ethics exception which provides that an insurance producer of
record shall not be precluded by the ethics code from providing all of the normal insurance
and risk management services to a governmental entity, including but not limited to
providing advice or recommendations regarding insurance coverages, markets, costs, terms,
selection of coverages and all related matters; provided that an insurance producer who
solicits to be producer of record or serves as producer of record for a governmental entity
shall not serve in any other official decision making capacity over insurance issues for the
governmental entity, including but not limited to elected or appointed positions, advisory
committees, as an employee, or as risk manager and that any insurance producer who has
served in any official decision making capacity over insurance issues for a governmental
entity who wishes to solicit or serve as producer of record for that same governmental entity
shall comply with the two year prohibition post service restrictions in the ethics code.
Present law requires that an insurance producer of record fully disclose in writing to the
governmental entity all fees, commissions, or other compensation payable to the producer
of record from the insurer or any source other than the governmental entity that relate to the
placement of the insurance coverages.
Present law further specifies that it does not preclude a governmental entity from contracting
with an insurance consultant, separate from the producer of record, to provide risk
management services and to assist the governmental entity in making insurance decisions.
The exception in present law does not apply to individually underwritten guaranteed
renewable limited benefit health insurance policies.
Proposed law specifies that for purposes of present law, the exception that the provision of
normal insurance or risk management services to a governmental entity in the manner
provided by the present law exception shall not be considered to be the performance of a
governmental function nor shall any person providing the normal insurance or risk HLS 12RS-1353 ORIGINAL
HB NO. 807
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are additions.
management services to a governmental entity in the manner provided by present law be
considered to be under the supervision or authority of an elected official or public employee.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 42:1123(37)(d); adds R.S. 42:1123(37)(e))