HLS 15RS-984 ENGROSSED 2015 Regular Session HOUSE BILL NO. 256 BY REPRESENTATIVE POPE Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana. SCHOOLS/BOARDS: Provides relative to certain interlocal risk management agencies 1 AN ACT 2To amend and reenact R.S. 33:1342(1), 1343(B) and (F), and 1344, relative to the joint self 3 insurance programs created by local governmental subdivisions; to authorize the 4 Louisiana School Board Association to act on behalf of local public school systems 5 as an administrator of an interlocal risk management agency; to authorize the 6 Louisiana School Board Association to participate as a member of such agency; to 7 provide definitions; and to provide for related matters. 8Be it enacted by the Legislature of Louisiana: 9 Section 1. R.S. 33:1342(1), 1343(B) and (F), and 1344 are hereby amended and 10reenacted to read as follows: 11 §1342. Definitions; terms defined 12 The following words and terms shall have the meaning indicated unless the 13 context shall clearly indicate a different meaning. 14 (1) "Local governmental subdivision" means any parish or municipality, 15 other governing or administrative body created under the charter of, or by the 16 governing body of, such parish or municipality to serve a public purpose, or other 17 local governing or administrative body created by or pursuant to law or the 18 Constitution of Louisiana to serve a public purpose. For purposes of this Subpart 19 only, this term also means the offices of the various clerks of court and district public 20 defender offices established in accordance with R.S. 15:141 et seq., and the members Page 1 of 4 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 15RS-984 ENGROSSED HB NO. 256 1 of a trust established by a statewide hospital association for the purposes of 2 providing employers' liability or workers' compensation coverage for its members, 3 provided the majority of the members of such trust consists of governmental 4 subdivisions, and any city, parish, or other local public school system. 5 * * * 6 §1343. Authority of governmental subdivisions to form, join, and participate in 7 interlocal risk management agency; employer contributions toward 8 premiums; ownership of record 9 * * * 10 B. Each group self insurance fund shall be separate as to risk, and maintained 11 as a separate pool, but one or more of the funds may be administered by a single 12 interlocal risk management agency. Local governmental subdivisions concluding an 13 agreement under the provisions hereof may by resolution duly adopted by the 14 governing body thereof designate the Louisiana Municipal Association for the 15 municipalities, and the Police Jury Association of Louisiana for the parishes, and the 16 Louisiana School Board Association for the local public school systems to 17 administer the interlocal risk management agency and any group self insurance fund 18 established by said agency, and to further administer the terms and conditions of the 19 intergovernmental agreement by which the agency and the group self insurance fund 20 has been created. 21 * * * 22 F. In addition to local governmental subdivisions, statewide organizations 23 composed of local governmental subdivisions and their wholly owned subsidiaries 24 may become members of an interlocal risk management agency for purposes of 25 providing accident and health protection to their employees and for purposes of 26 providing coverage for those risks defined in R.S. 22:47(3), (6), (7), and (10), and 27 public liability and worker's compensation coverage upon approval of the governing 28 body of the association and the governing body of the interlocal risk management 29 agency. For purposes of this Subsection, the Police Jury Association, and the Page 2 of 4 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 15RS-984 ENGROSSED HB NO. 256 1 Louisiana Municipal Association, and the Louisiana School Board Association shall 2 be considered statewide organizations composed of local governmental subdivisions. 3 * * * 4 §1344. Governance of interlocal risk management agencies 5 In the event If the Louisiana Municipal Association, and/or the Police Jury 6 Association, or the Louisiana School Board Association is be designated to 7 administer an interlocal risk management agency, the executive boards of the 8 Louisiana Municipal Association and of the Police Jury Association of Louisiana, 9 as the case may be, and the board of directors of the Louisiana School Board 10 Association shall constitute the board of trustees of each such agency established as 11 provided in Section 1340(B) R.S. 33:1343, and shall be authorized as such to adopt 12 bylaws for the administration of their respective agencies. 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)] HB 256 Engrossed 2015 Regular Session Pope Abstract: Authorizes the La. School Board Assoc., on behalf of local public school systems, to serve as an administrator of an agency formed by local school boards to administer a local risk management program to insure and protect against certain risks, and to join as a member beneficiary of such program. Proposed law authorizes multiple local governmental subdivisions to form an "interlocal risk management agency" to develop and administer risk management programs to insure and defend against certain legal claims and to establish group self-insurance funds to self-insure or purchase joint insurance policies for accident and health protection or to insure against public liability or worker's compensation risks. Proposed law retains present law and also authorizes city, parish, or local public school systems to form and participate in interlocal risk management agencies. Present law authorizes municipalities to designate the La. Municipal Assoc. and parishes to designate the Police Jury Assoc. of La. to administer the risk management agency and any group self-insurance fund and, if so designated, the boards of these associations serve as trustees of each interlocal risk management agency. Proposed law also authorizes school boards, by adoption of a resolution, to so designate the La. School Board Assoc. as an administrator and its board of directors will serve as a board of trustees. Present law specifically authorizes the La. Municipal Assoc. and the Police Jury Assoc. of La. to become members of an interlocal risk management agency in order to provide accident and health protection to its own employees, insure against public liability and worker's compensation, and to provide coverage for motor vehicle liability, burglary and Page 3 of 4 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 15RS-984 ENGROSSED HB NO. 256 forgery, and fire loss. Proposed law authorizes the La. School Board Assoc. to also become a member beneficiary of such agency. Proposed law provides technical corrections to cross-references of various laws. (Amends R.S. 33:1342(1), 1343(B) and (F), and 1344) Page 4 of 4 CODING: Words in struck through type are deletions from existing law; words underscored are additions.