LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: SB 10 SLS 24RS 90
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: May 24, 2024 3:42 PM Author: PRESSLY
Dept./Agy.: Judiciary
Subject: Separate legal personalities Analyst: Tanesha Morgan
COMMERCIAL REGULATIONS EN NO IMPACT See Note Page 1 of 1
Provides for the recognition of separate legal personalities among affiliated corporations and other business entities.
(8/1/24)
Proposed law provides that the separate juridical personality of a business organization should not be disregarded between
one business organization and another, except on grounds that would justify disregarding the separate personality between
the business organization and a natural person. Proposed law provides circumstances that should not be used as the sole
basis for disregarding the separate legal personalities of business organizations, such as common control, directors, offices,
or employees; unified administrative control; centralized accounting; or one organization financing or organizing another.
Proposed law defines "business organization" and provides that it shall not affect any legal or regulatory action taken by the
commissioner of insurance or any law or administrative rule that requires or permits a group of business organizations to be
consolidated or disregarded for specific purposes. The provisions of proposed law would apply prospectively to all business
organizations. Provisions of proposed law legislatively overrule the decision in Green v. Champion Ins. Co., 577 So.2d 249
(La. App.1st Cir. 1991) in favor of a traditional veil piercing analysis.
EXPENDITURES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0 $0 $0
REVENUES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0 $0 $0
EXPENDITURE EXPLANATION
There is no anticipated direct material effect on governmental expenditures as a result of this measure. Proposed law
establishes legal principles regarding the separate legal personalities of affiliated business organizations. Proposed law does
not require any specific actions or changes in business practices that would impact governmental expenditures.
REVENUE EXPLANATION
There is no anticipated direct material effect on governmental revenues as a result of this measure.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Patrice Thomas
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Deputy Fiscal Officer