SLS 14RS-295 ORIGINAL Page 1 of 3 Regular Session, 2014 SENATE CONCURRENT RESOLUTI ON NO. 40 BY SENATOR WHITE PRIVATE SECURITY. Reduces the amount of insurance required of licensed private security companies for care, custody, and control from $500,000 to $100,000. A CONCURRENT RESOLUTI ON1 To amend the Department of Public Safety and Corrections rule (LAC2 46:LIX.203(A)(10)(a)) that provides relative to general liability insurance required3 of private contract security companies; to reduce the minimum amount of insurance4 coverage required for care, custody, and control from five hundred thousand dollars5 to one hundred thousand dollars; and to direct the office of the state register to print6 the amendment in the Louisiana Administrative Code.7 WHEREAS, R.S. 37:3276(E) requires a licensed private security company to have8 in effect general liability insurance of at least five hundred thousand dollars, with the state9 of Louisiana named as an additional insured; and10 WHEREAS, LAC 46:LIX.203(A)(10)(a) requires that the general liability policy11 required by R.S. 37:3276 shall, at a minimum, contain coverage provisions for hiring,12 training and retention, errors and omissions, firearms, and care, custody, and control, with13 minimum limits equal to those set forth in R.S. 37:3276 and with contractual liability14 exclusive of sole negligence; and15 WHEREAS, only one insurance company in Louisiana will issue a policy with a16 care, custody, and control endorsement with such high limits, thus placing an undue burden17 on many private security companies wishing to do business in this state; and 18 SCR NO. 40 SLS 14RS-295 ORIGINAL Page 2 of 3 WHEREAS, the goal of state law should be to encourage business development and1 growth, while protecting the public, both of which can be accomplished with lower limits2 on care, custody, and control coverage for private security companies.3 THEREFORE, BE IT RESOLVED by the Legislature of Louisiana that LAC4 46:LIX.203(A)(10)(a) is hereby amended to read as follows:5 ยง203. Application Procedure6 A. Application must be made to the board on application forms obtained7 from the board. If the applicant is an individual, the application shall be subscribed8 and sworn to by such person. If the applicant is a partnership, the application shall9 be subscribed and sworn to by each partner. If the applicant is a corporation, it shall10 be subscribed and sworn to by at least two principal corporate officers. The11 application shall include the following information:12 * * *13 10. general liability insurance:14 a. the general liability policy as required by R.S. 37:3276 shall name the15 state of Louisiana as an additional insured and, at a minimum, shall contain16 contractual liability exclusive of sole negligence and:17 (i) coverage provisions for hiring, training and retention; errors and18 omissions; and firearms; care, custody and control, with minimum limits equal to19 those set forth in R.S. 37:3276 for general liability coverage and with contractual20 liability exclusive of sole negligence. The policy shall not void coverage for all21 insureds based upon the exclusion of one insured;22 (ii) an amendatory endorsement for care, custody, and control, with23 minimum limits of one hundred thousand dollars;24 * * *25 BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the26 office of the state register and the secretary of the Department of Public Safety and27 Corrections.28 BE IT FURTHER RESOLVED that the office of the state register is hereby directed29 to have the amendments to LAC 46:LIX.203(A)(10)(a) printed and incorporated into the30 SCR NO. 40 SLS 14RS-295 ORIGINAL Page 3 of 3 Louisiana Administrative Code.1 The original instrument and the following digest, which constitutes no part of the legislative instrument, were prepared by Alden A. Clement Jr. DIGEST White SCR No. 40 Changes rule requiring a licensed private security company to have in effect a general liability policy containing, at a minimum, coverage provisions for hiring, training and retention, errors and omissions, firearms, and care, custody, and control, with minimum limits of $500,000 and with contractual liability exclusive of sole negligence. Changes the minimum limits for the required coverage for care, custody, and control from $500,000 to $100,000. Directs the transmission of copies of this Resolution to the office of the La. Register and the secretary of the Dept. of Public Safety and Corrections. Directs the La. Register to print the amendments in the La. Administrative Code.