Provides relative to participation by public postsecondary education institutions in the state's risk management program
The bill seeks to repeal existing mandates that forced institutions into participation. By allowing institutions the flexibility to choose, it is expected that they might pursue more tailored, potentially cost-effective insurance options. Additionally, the measure clarifies that even if institutions choose not to participate, they are still protected under certain provisions that provide for state legal representation and the establishment of contractual obligations regarding insurance. In this respect, the bill aims to balance institutional autonomy with necessary protections.
House Bill 788 addresses the participation of public postsecondary education institutions in Louisiana's statewide risk management program. Traditionally, state law mandated that these institutions participate, but this bill proposes an important shift by allowing them the option to opt-in instead of being required to participate. This change is set to take effect until July 1, 2020, indicating a limited timeframe during which institutions can reconsider their approach to risk management and insurance coverage.
The sentiment around HB 788 is generally positive, especially among educational institutions that have long campaigned for greater flexibility in managing their insurance and risk. Supporters argue that the bill empowers institutions to make decisions that are best for their financial situation and risk profile. However, there may be concerns among legislators about whether this increased autonomy could lead to inconsistencies in how risks are managed across different institutions, potentially exposing the state to increased liability.
Potential points of contention include fears that by giving institutions the option to opt-out of the risk management program, it could lead to varied standards of risk management and legal protections across the state. Critics might argue that this could create vulnerabilities for both the institutions themselves and the state if not managed correctly. Legislators have also raised concerns regarding accountability and the financial implications for entities that may not have the capacity to manage risks effectively on their own, emphasizing the need for adequate oversight and support.