HLS 13RS-508 ORIGINAL
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2013
HOUSE BILL NO. 216
BY REPRESENTATIVE SHADOIN
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
MALPRACTICE/MEDICAL: Provides relative to the ability of the Patient's Compensation
Fund Oversight Board to invest certain funds
AN ACT1
To amend and reenact R.S. 40:1299.44(A)(1)(b) and 1299.46(H), relative to the Patient's2
Compensation Fund Oversight Board; to provide for the authority of the Patient's3
Compensation Fund Board to invest private monies and segregated funds in certain4
circumstances; and to provide for related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 40:1299.44(A)(1)(b) and 1299.46(H) are hereby amended and7
reenacted to read as follows: 8
§1299.44. Patient's Compensation Fund9
A.(1)10
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(b) The Patient's Compensation Fund Oversight Board may invest, in12
accordance with R.S. 40:1299.44.1, any portion of the private monies comprising the13
corpus of the fund, as determined by the board, which are not required for the14
payment of one and one-half times the current fiscal year of budgeted expenditures.15
while maintaining its ability to timely pay claims, future medical care and related16
benefits, and other current expenses under this Part. The board may enter into a17
cooperative endeavor agreement whereby the state treasurer may be authorized to18
invest, in accordance with R.S. 40:1299.44.1, a portion of the private monies19
comprising the corpus of the fund, as determined by the board.20
* * *21 HLS 13RS-508 ORIGINAL
HB NO. 216
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
§1299.46. Risk management; authority1
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H. The surplus of premiums over losses and expenses received by the3
authority shall be placed in a segregated fund and shall be invested and reinvested4
by the risk manager with the concurrence of the board in accordance with the5
insurance code of the state of Louisiana Insurance Code and investment income6
generated shall remain in the fund. These funds shall not be considered public or7
state funds. 8
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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)]
Shadoin HB No. 216
Abstract: Authorizes the Patient's Compensation Fund Oversight Board to invest any
portion of private monies of the Patient's Compensation Fund while maintaining
timely payment of expenses and to invest the segregated fund of the Residual
Malpractice Insurance Authority.
Present law (Const. Art. XII, §16) authorizes the establishment of the Patient's
Compensation Fund to hold private monies in trust for the use, benefit, and protection of
medical malpractice claimants and private health care provider members.
Present law establishes the Patient's Compensation Fund Oversight Board to manage,
administer, operate, and defend the Patient's Compensation Fund.
Present law authorizes the board to invest private monies making up the body of the fund if
the private monies are not needed to pay one and one-half times the amount of budgeted
expenditures for that fiscal year.
Proposed law changes present law by deleting the limitation that the board may only invest
the private monies that exceed the amount of one and one-half times the budgeted
expenditures. Proposed law authorizes the board to invest any portion of private monies
making up the body of the fund as long as the board is able to maintain timely payment of
claims, future medical care and related benefits, and other expenses.
Present law creates the Residual Malpractice Insurance Authority to make available medical
malpractice insurance to health care providers who have been refused coverage by private
insurers and establishes rules for administration of the authority.
Present law directs the authority to place the surplus of premiums over losses and expenses
into a segregated fund and directs the risk manager, with concurrence by the Patient's
Compensation Oversight Board, to invest and reinvest those funds. HLS 13RS-508 ORIGINAL
HB NO. 216
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Proposed law changes present law by authorizing the board to invest and reinvest those
funds.
(Amends R.S. 40:1299.44(A)(1)(b) and 1299.46(H))