Louisiana House Bill HCSR1

Louisiana 2015 Regular Session

Caption

Urges and requests the Office of Group Benefits to study the cost for certain school boards to terminate participation in the program

Impact

The bill highlights the regulations surrounding group insurance participation and the financial responsibilities that groups face when deciding to withdraw from state programs. Current state laws dictate that if a school board wishes to sever ties with the group benefits program, it must pay an actuarially determined share of any accrued liabilities. This requirement could be financially burdensome. Thus, the bill seeks to bring attention to these costs, particularly for smaller parishes that may have limited budgets.

Summary

HCSR1 is a concurrent study request that urges the Office of Group Benefits to investigate the financial implications for the local school board of Assumption Parish in terminating its participation in the group insurance program it offers. The bill stipulates that a comprehensive report must be submitted to both the House Committee on Appropriations and the Senate Committee on Finance by a specific deadline, which is set for sixty days prior to the next regular session of the Legislature. This seemingly straightforward measure carries particular relevance for smaller school boards which may find the costs prohibitive when considering such a termination.

Sentiment

The sentiment around HCSR1 is generally supportive among those who understand the financial constraints faced by smaller parishes and local school boards. This request emphasizes the need for considerations to be made regarding the unique circumstances of these entities. However, it may also raise questions among stakeholders about the overall state funding and support for local education systems, particularly in addressing insurance and benefits areas.

Contention

While the bill itself does not propose any changes to existing laws or regulations, it does spotlight a significant issue regarding the intersection of state-mandated insurance participation and the financial viability for local school boards. The contention may arise in the discussions regarding state funding and the fiscal responsibilities placed on local governments, especially if the findings indicate systemic issues that require legislative attention or reform in the future.