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 788 Original 2016 Regular Session Jefferson
Abstract: Provides for optional participation by public postsecondary education institutions in the
state's risk management program.
Present law (R.S. 39:1527 et seq.) provides for the creation of the office of risk management within
the division of administration headed by the commissioner or administration. Further requires that
public postsecondary education institutions participate in the state's risk management program.
Present law (R.S. 3139.5(B)(2)(e)) provides for exemption from participation in the state's risk
management program. Further provides that exemption from participation in such program is
pursuant to a determination by the division of administration that the institution or management
board, as applicable, has the capacity to manage its own risk and a phased-in plan of implementation
as determined by the institution in collaboration with the attorney general and the division of
administration, subject to the prior review and approval of the Joint Legislative Committee on the
Budget. Proposed law deletes present law in its entirety.
Proposed law provides that, notwithstanding any provision of present law to the contrary, and until
July 1, 2020, any public postsecondary education institution may choose but shall not be required
to participate in the state's risk management program established by present law.
Proposed law provides that nothing in proposed law shall abrogate, amend, or alter the authority of
the attorney general or the Dept. of Justice under present law (Article IV, Sections 1 and 8 of the
Constitution of Louisiana) or any other provision of present law to represent the state and all
departments and agencies of state government in all litigation arising out of or involving tort or
contract. Further provides that an institution shall enter into an interagency agreement with the
attorney general and pay the attorney general reasonable attorney fees and expenses incurred in
representing the institution.
Proposed law provides that nothing in proposed law shall be construed as creating any independent
or separate cause of action against the state. The state shall continue to be sued only through the
institution's management board and cannot be sued in addition to or separately from the institution's
management board in any cause of action asserted against the institution. The office of risk
management shall not be responsible for payment of any judgment against the institution's
management board rendered subsequent to the transfer of the applicable line of coverage. The state's
obligation to indemnify a covered individual as provided in present law (R.S. 13:5108.1) shall not
be performed by the office of risk management. Proposed law provides that any contract between the institution's management board and its insurer
shall name the state as an additional insured. Any provision in any contract between the institution's
management board and its insurer that conflicts with the provisions of proposed law shall be deemed
null and void.
Proposed law provides that nothing in proposed law shall be construed to adversely affect any of the
substantive and procedural provisions and limitations applicable to actions against the state,
including but not limited to the provisions of present law (R.S. 13:5106, 5107, 5108.1, and 5112,
and R.S. 9:2800) which would continue to apply equally to any institution. Those provisions that
will not apply are those that are specifically excluded in proposed law. Upon transfer of each line
of coverage to the institution under proposed law, the provisions of present law (R.S. 39:1527 et
seq., R.S. 13:5106(B)(3)(c)) shall not apply to the line of coverage so transferred, nor to any claims
asserted against the institution within the transferred line of coverage.
(Adds R.S. 17:3139.8; Repeals R.S. 3139.5(B)(2)(e))