HLS 20RS-835 ORIGINAL
2020 Regular Session
HOUSE BILL NO. 579
BY REPRESENTATIVES DAVIS AND HILFERTY AND SENATOR JOHNS
PUBLIC OFFLS/EMPS: Provides for the defense and indemnification of public officials
and employees
1 AN ACT
2To amend and reenact R.S. 13:5101(B) and 5108.1(A)(1) and (E)(1) and R.S. 39:1532(B),
3 1533(B), 1535(A), (B)(6), (C), and (D)(1), and 1538(A) and to enact R.S.
4 13:5101(C) and 5102(D) and R.S. 39:1537(8) and 1540(B)(4), relative to the defense
5 and indemnification of public officials and employees; to provide for definitions; to
6 provide for applicability; to provide relative to the Self-Insurance Fund; to provide
7 for duties and responsibilities; to impose reporting requirements; to provide relative
8 to claims against the state; to provide for access to public records upon written
9 request; and to provide for related matters.
10Be it enacted by the Legislature of Louisiana:
11 Section 1. R.S. 13:5101(B) and 5108.1(A)(1) and (E)(1) are hereby amended and
12reenacted and R.S. 13:5101(C) and 5102(D) are hereby enacted to read as follows:
13 §5101. Title and application
14 * * *
15 B. This Part applies to any suit in contract, or for injury to person or
16 property, or any antitrust claim against any of the following entities or persons:
17 (1) The the state,.
18 (2) A a state agency,.
19 (3) A board member, commissioner, appointee, official, an officer, or
20 employee of the state or a state agency arising when the suit or claim arises out of
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1 the discharge of his official duties or within the course and scope of his
2 employment,.
3 (4) A or a political subdivision of the state, as defined herein in R.S.
4 13:5102., or
5 (5) A board member, commissioner, appointee, official, against an officer,
6 or employee of a political subdivision, as defined in R.S. 13:5102. arising out of the
7 discharge of his official duties or within the course and scope of his employment.
8 C. The provisions of this Part shall not supersede the provisions of R.S.
9 15:1171 et seq. or R.S. 15:1181 et seq.
10 §5102. Definitions
11 * * *
12 D. As used in this Part, "antitrust" or "antitrust claim" means and includes
13 any legal action, claim, or proceeding in any state or federal court or federal agency,
14 which alleges or reasonably relates in any manner to any of the following:
15 (1) Any anticompetitive conduct or other unlawful limitation or restraint of
16 trade, commerce, or the scope of practice of a trade or profession, including but not
17 limited to any of the following:
18 (a) Conspiracy to unlawfully limit or restrain trade, commerce, or the scope
19 of practice of a trade or profession.
20 (b) Monopoly, the attempt to monopolize, or the conspiracy to monopolize.
21 (c) Price fixing or price discrimination.
22 (2) Issuance of any subpoena, cease and desist order, or investigative
23 demand.
24 (3) Any claim or legal proceeding which invokes or reasonably relates to any
25 provision of the Sherman Antitrust Act as amended (15 U.S.C. 1 et seq.).
26 (4) Any claim or legal proceeding which invokes or reasonably relates to any
27 provision of the Clayton Act as amended (15 U.S.C. 12 et seq.).
28 (5) Any claim or legal proceeding which invokes or reasonably relates to any
29 provision of the Federal Trade Commission Act as amended (15 U.S.C. 41 et seq.).
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1 (6) Any claim or legal proceeding which invokes or reasonably relates to any
2 provision of the Louisiana Antitrust Act as amended (R.S. 51:121 et seq.).
3 * * *
4 §5108.1. Indemnification of officers and employees of the state; civil rights;
5 representation by attorney general
6 A. Indemnification.
7 (1) The state shall defend and indemnify a covered individual against any
8 claim, demand, suit, complaint, or petition seeking damages or any other equitable
9 relief filed in any state or federal court or federal agency when the act that forms the
10 basis of the cause of action took place in the course and scope of state employment,
11 the performance of official state duties, or while engaged in the provision of services
12 on behalf of the state or any of its departments related to any of the following claims
13 or demands:
14 (a) Any antitrust claim, as defined in this Part.
15 (b) Any tort.
16 (c) Any over alleged negligence or other act by the individual, including any
17 demand under pursuant to any federal statute. when the act that forms the basis of
18 the cause of action took place while the individual was engaged in the performance
19 of the duties of the individual's office, employment with the state, or engaged in the
20 provision of services on behalf of the state or any of its departments pursuant to
21 Paragraph (E)(2) of this Section.
22 * * *
23 E. Definition.
24 As used in this Section "covered individual" includes:
25 (1) An official, officer, appointee, commissioner, board member, or
26 employee holding office or employment:
27 * * *
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1 Section 2. R.S. 39:1532(B), 1533(B), 1535(A), (B)(6), (C), and (D)(1), and 1538(A)
2are hereby amended and reenacted and R.S. 39:1537(8) and 1540(B)(4) are hereby enacted
3to read as follows:
4 §1532. Reporting requirements
5 * * *
6 B.(1) In the fiscal year immediately following a regular session of the
7 legislature in which the legislature has enacted appropriations from the state general
8 fund for the payment of specific judgments or claims, the commissioner of
9 administration shall report to the House Committee on Appropriations and the Senate
10 Committee on Finance on the fifteenth day of October and the fifteenth day of
11 February regarding the payment status of all such claims and judgments, including
12 but not limited to the last offer made by the plaintiff claimant as well as the last offer
13 made by the state of Louisiana and the final cost of each judgment.
14 (2) Any report made pursuant to Paragraph (1) of this Subsection shall
15 include information regarding each decision of the office of risk management to
16 decline a claim or request for payment or reimbursement made by any state agency
17 pursuant to this Chapter, which has occurred since the last such report.
18 §1533. Self-Insurance Fund
19 * * *
20 B.(1) The representation of the state and state agencies in all claims covered
21 by the Self-Insurance Fund, in all antitrust claims as defined in R.S. 13:5102,
22 whether or not covered by the Self-Insurance Fund, and in all tort claims, whether
23 or not covered by the Self-Insurance Fund, shall be provided by the attorney general
24 or by private legal counsel appointed by the attorney general, with the concurrence
25 of the commissioner of administration in accordance with the provisions of R.S.
26 49:258.
27 (2) The attorney general shall be reimbursed for all reasonable costs incurred
28 in providing the necessary legal services. The preceding sentence shall not be
29 interpreted to prevent direct payment by the office of risk management of private
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1 legal counsel and vendors. The fund shall be used for no other purposes. The office
2 of risk management shall maintain separate accounts for each of the insurance
3 categories.
4 * * *
5 §1535. Duties and responsibilities
6 A. It is the responsibility of the commissioner of administration through the
7 office of risk management to manage all state insurance covering property and
8 liability exposure, through commercial underwriters or by self-insuring. Personnel
9 benefits and group health and life coverage are excepted. It is also the responsibility
10 of the commissioner of administration through the office of risk management to
11 manage all antitrust claims, as defined in R.S. 13:5102, made against the state or any
12 state agency whether or not covered by the Self-Insurance Fund and all tort claims
13 made against the state or any state agency whether or not covered by the
14 Self-Insurance Fund.
15 B. The duties and responsibilities of the office of risk management shall
16 include but not be limited to the following:
17 * * *
18 (6) Negotiation, compromise, and settlement of all claims against the state
19 or state agencies covered by the Self-Insurance Fund, all antitrust claims, as defined
20 in R.S. 13:5102, against the state or state agencies whether or not covered by the
21 Self-Insurance Fund, and all tort claims against the state or state agencies whether
22 or not covered by the Self-Insurance Fund; however, all such compromises and
23 settlements shall be made in return for a complete release and waiver of all further
24 liability of the state, state agencies, and of the officers, officials, and employees
25 covered by R.S. 13:5108.2. No settlement over twenty-five thousand dollars per
26 claimant shall be made without the approval of the attorney general's office.
27 * * *
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1 C. In addition to the foregoing duties and responsibilities, the commissioner
2 of administration is authorized to adjust and negotiate all antitrust claims, as defined
3 in R.S. 13:5102, against the state or state agencies whether or not covered by the
4 Self-Insurance Fund, and tort claims which are not covered by the Self-Insurance
5 Fund and to compromise or settle such claims against the state or against state
6 agencies as defined by R.S. 39:1527(1) in the manner provided for in R.S.
7 39:1535(B)(6). Settlements or compromises of claims which are not self-insured
8 shall be paid from the state general fund.
9 D.(1) Any settlement or compromise agreement of claims against the state
10 or a state agency for an amount of five hundred thousand dollars or more that is
11 covered by the Self-Insurance Fund, or of tort claims against the state or a state
12 agency whether or not covered by the Self-Insurance Fund, or of antitrust claims, as
13 defined in R.S. 13:5102, whether or not covered by the Self-Insurance Fund shall
14 contain a resolutory condition that payment shall not be made unless the agreement
15 is approved by a majority of the members of a subcommittee of the Joint Legislative
16 Committee on the Budget comprised of three members of the Senate and three
17 members of the House of Representatives designated by the chairman.
18 * * *
19 §1537. Annual report
20 The commissioner of administration shall submit to the governor, the
21 attorney general, and the legislature annually a formal report on the state's risk
22 management program which shall include:
23 * * *
24 (8) Data regarding each decision of the office of risk management to decline
25 a claim or request for payment or reimbursement made by a state agency pursuant
26 to this Chapter, which has occurred since the last such report.
27 §1538. Claims against the state
28 A. Claims against the state or any of its agencies to recover damages or other
29 equitable relief in any antitrust claim, as defined in R.S. 13:5102, or in tort, for
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1 money damages against the state or its agencies for injury or loss of property,
2 personal injury, or death caused by the negligent or wrongful act or omission of any
3 employee of the agency while acting within the scope of his office or employment
4 under circumstances in which the state or such agency, if a private person, would be
5 liable to the claimant in accordance with the general laws of this state, may be
6 prosecuted in accordance with the provisions specified in this Chapter. However,
7 immunity for discretionary acts of executive, legislative, and judicial officers within
8 the scope of their legally defined powers shall not be abridged.
9 * * *
10 §1540. Competition
11 * * *
12 B.
13 * * *
14 (4) Any contract entered into by the state pursuant to this Section and any
15 policy of insurance coverage procured either by the office of risk management or by
16 any licensed insurance producer on behalf of the office of risk management shall be
17 made immediately available by electronic mail to any authorized designee of a state
18 agency upon the written request of such designee.
19 Section 3. This Act shall become effective upon signature by the governor or, if not
20signed by the governor, upon expiration of the time for bills to become law without signature
21by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
22vetoed by the governor and subsequently approved by the legislature, this Act shall become
23effective on the day following such approval.
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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 579 Original 2020 Regular Session Davis
Abstract: Requires state indemnification of any agency, board member, commissioner,
appointee, official, officer, or employee of the state or of its political subdivisions
in antitrust actions.
Present law provides relative to suits against the state, its agencies, officers, or employees
and against political subdivisions and sets out when the state must indemnify its agents.
Proposed law adds to the list of indemnified parties board members, commissioners,
appointees, and officials of the state and its political subdivisions.
Present law provides state indemnity for these parties in certain types of civil actions.
Proposed law adds antitrust claims to the list of covered actions.
Present law requires indemnity when the act that forms the basis of the cause of action was
a tort that took place while the individual was engaged in the performance of his office,
employment with the state, or engaged in providing services on behalf of the state pursuant
to present law. Proposed law requires indemnity when demand is made for damages or other
equitable relief, is filed in state or federal court or federal agency, and is grounded in any of
the following:
(1)An antitrust claim (as defined in proposed law).
(2)Any tort.
(3)Any demand made pursuant to a federal statute.
Present law (R.S. 39:1532) requires certain reports by the commissioner of administration
relative to payment of specific judgments when funds have been appropriated therefore.
Proposed law retains present law and further requires the report to contain information
regarding each decision the office of risk management (hereafter "ORM") made to decline
a claim or request for payment made by any state agency.
Present law (R.S. 39:1533) requires the attorney general or private legal counsel appointed
by the attorney general to represent the state and its agencies in all tort claims. Proposed law
retains present law and adds antitrust claims to the list of actions the attorney general must
defend on behalf of the state and its agencies.
Present law (R.S. 39:1535) requires the commissioner of administration to manage all tort
claims made against the state. Proposed law retains present law and adds antitrust claims
to the list of claims the commissioner must manage.
Present law further places responsibility for negotiating settlement of all tort claims against
the state or its agencies with ORM and the commissioner of administration. Proposed law
retains present law and adds antitrust claims to the list of covered claims.
Present law provides that any settlement in excess of $500,000 may not be paid until
payment is approved by a majority of a subcommittee on the Litigation Subcommittee of the
Joint Legislative Committee on the Budget. Proposed law adds antitrust claim settlements
in excess of $500,000 to this requirement.
Proposed law requires disclosure of any state contract for insurance and insurance policy
procured by ORM or on behalf of ORM.
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Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 13:5101(B) and 5108.1(A)(1) and (E)(1) and R.S. 39:1532(B), 1533(B),
1535(A), (B)(6), (C), and (D)(1), and 1538(A); Adds R.S. 13:5101(C) and 5102(D) and R.S.
39:1537(8) and 1540(B)(4))
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