House Bill No. by Representative Bacala proposes the enactment of Civil Code Article 3547.1, which allows for the application of certain foreign laws from Arkansas, Mississippi, and Texas in legal actions arising from automobile accidents involving Louisiana residents insured by companies domiciled in those states. Specifically, the bill stipulates that delictual or quasi-delictual obligations related to such accidents will be governed by the laws of the insurer's domicile, provided they do not conflict with existing Louisiana laws (Articles 3493.1 and 3493.2). Additionally, the bill permits Louisiana insurers, agents, or brokers to sell policies from these foreign insurers and mandates that they provide written disclosures to insured individuals regarding the application of foreign law and compliance with state regulations.

The bill also directs the Louisiana State Law Institute to compile and publish the relevant laws from Arkansas, Mississippi, and Texas on its website by the effective date of the Act, which is set for July 1, 2026. However, this effective date is contingent upon the condition that the base rate for liability coverage of the top twenty private passenger automobile insurers does not decrease by at least seven percent between January 1, 2024, and December 31, 2025.