Louisiana Senate Bill SB193

Louisiana 2019 Regular Session

• Introduced: 3/27/19
• Refer: 3/27/19
• Refer: 4/8/19
• Report Pass: 4/30/19
• Engrossed: 5/16/19
• Refer: 5/20/19
• Report Pass: 5/28/19
• Enrolled: 6/5/19
• Chaptered: 6/11/19
• Passed: 6/11/19

Caption

Enacts the Louisiana Structured Settlement Protection Act. (7/1/20)

Impact

The act impacts Louisiana law by repealing an existing statute and establishing new regulations regarding structured settlements. It defines key terms related to structured settlements, including 'transfer', 'transferee', and 'structured settlement purchase company'. By putting these new rules in place, the act prevents unauthorized transfers and protects consumers from predatory practices in the structured settlement market. The regulation also includes requirements for clear disclosures to the payee regarding the terms, amounts, and conditions of the transfers, thereby enhancing consumer awareness.

Summary

Senate Bill 193, known as the Louisiana Structured Settlement Protection Act, aims to regulate the transfer of structured settlement payment rights. This bill introduces a framework that requires structured settlement purchase companies to register with the state and obtain court approval before any transfer of payment rights can take place. The intent of the act is to protect payees from potential exploitation and to ensure that any transfer of their structured settlement payments is in their best interest. By mandating that a payee receives independent professional advice, the bill seeks to promote transparency and fairness in these financial transactions.

Sentiment

The overall sentiment surrounding SB 193 appears to be supportive, particularly among consumer advocacy groups and legal professionals who recognize the need for greater consumer protection in financial transactions stemming from structured settlements. Legislation aimed at enhancing transparency and protecting vulnerable consumers has generally garnered bipartisan support. However, there may be concerns from structured settlement purchase companies regarding the regulatory burden and potential limitations on their operations in the state.

Contention

Notable points of contention include the balance between consumer protection and the operational freedom of structured settlement purchase companies. While the act aims to ensure that payees are not pressured into unfavorable agreements, some critics may argue that these regulations could restrict legitimate business practices and hinder access to needed capital for those who rely on structured settlements for financial support. Furthermore, the requirement of court approval for transfers adds an additional layer of bureaucracy that some may see as unnecessary.