LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 44 HLS 201ES 100
Bill Text Version: REENGROSSED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: June 24, 2020 4:04 PM Author: GAROFALO
Dept./Agy.: Supreme Court/ORM/OGB/Judicial Districts
Subject: Omnibus Premium Reduction Act of 2020 Analyst: Rebecca Robinson
INSURANCE/AUTOMOBILE RE SEE FISC NOTE GF EX Page 1 of 2
Enacts the Omnibus Premium Reduction Act of 2020 (Item #40)
Proposed legislation provides for a two year prescription period for delictual actions for injury or damages arising from the
operation or control of a motor vehicle. Proposes to lower the jury threshold for a jury trial to $35,000, except for tort
actions, for which the threshold is $5,000. Proposes to limit the recovery of the plaintiff’s medical expenses to the amount
actually paid to the medical provider by the health insurance issuer, Medicaid, Medicare, or the Louisiana Workers’
Compensation Law. Proposes to provide a direct action against an insurer when 1) the insured has been adjudged bankrupt;
2) the insured is insolvent; 3) damages result from an offense between children and parents or between married persons; 4)
plaintiff is seeking recovery under an uninsured or underinsured policy; 5) damages related to asbestos exposure; or 6) the
insured is deceased. Proposes to repeal R.S. 32:295.1(E) in its entirety which will allow the failure to wear a safety belt to
be used as evidence of comparative negligence in lawsuits concerning motor vehicle accidents; and will be allowed as
evidence to mitigate damages. Effective January 1, 2021.
EXPENDITURES 2020-21 2021-22 2022-23 2023-24 2024-25 5 -YEAR TOTAL
State Gen. Fd. SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
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 SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Annual Total
REVENUES 2020-21 2021-22 2022-23 2023-24 2024-25 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
The net impact to the state is indeterminable. There will be an increase in expenditures to the Attorney General (AG) and
the local Clerks of Court as a result of the lower jury threshold. There will be an indeterminable impact for the Office of Risk
Management (ORM), the Louisiana Supreme Court, (LSC), and the Office of Group Benefits (OGB) due to the combined
changes.
ORM reports an indeterminable impact to the Office of Risk Management (ORM) as a result in the change in prescription
period. ORM indicates that often the first time they receive knowledge of a claim is when a lawsuit is filed. Currently, in
such a case, up to a year has elapsed since the time of the incident. Under the proposed legislation, up to two years could
elapse before ORM is notified of an incident. This extension of time adversely affects ORM and its ability to effectively and
timely investigate claims against the State and impairs ORM’s ability to identify and secure/preserve relevant evidence and
witness testimony. The delay in investigating claims may lead to ORM having to compromise certain claims that it otherwise
would have been able to defend. However, the extension of the prescription period is for those suits involving motor vehicle
accidents, where there is often a police report available as evidence of an accident. Obtaining such evidence reduces ORM’s
concern relative to collection of evidence; however, the fiscal impact to ORM is indeterminable.
ORM reports an indeterminable impact associated with the lowering of the jury threshold as it is unknown whether this would
lead to an increase or decrease in jury trials; and/or an increase or decrease in settlements. ORM indicates that the
prevailing opinion is that defendants experience a greater opportunity for a fair trial before a jury. Thus, the expansion of
the availability of jury trials may lead to more settlement of cases involving significant injuries, possibly lowering the
expenditures of ORM. However, the lowering of the jury threshold could lead to an increase in jury trials actually conducted,
which would increase the expenditures of ORM due to increased attorney’s fees and associated litigation costs. Therefore,
any expenditure increase or decrease to ORM is indeterminable at this time.
[CONTINUED ON PAGE 2]
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}
13.5.2 >= $500,000 Annual Tax or Fee Evan Brasseaux
6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Staff Director
 LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 44 HLS 201ES 100
Bill Text Version: REENGROSSED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: June 24, 2020 4:04 PM Author: GAROFALO
Dept./Agy.: Supreme Court/ORM/OGB/Judicial Districts
Subject: Omnibus Premium Reduction Act of 2020 Analyst: Rebecca Robinson
CONTINUED EXPLANATION from page one: Page 2 of 2
[CONTINUED FROM PAGE 1]
There will be an indeterminable impact to ORM for potential and future claims payments related to motor vehicle accidents.
ORM could not provide the number of pending cases involving safety belts by the time of this writing. The number of claims
involving safety belt usage which may be filed in the future is also unknown. The proposed legislation would allow a party
involved in a motor vehicle claim/lawsuit to present evidence of the injured person’s failure to wear a safety belt in a motor
vehicle accident as a contributory factor in the injuries suffered by the injured person. Such evidence may reduce the
damages paid to an injured person. However, the proposed legislation does not require that the failure to wear a safety belt
be admitted into evidence. Judges will still have the discretion over which evidence is presented to the trier of fact.
Therefore, any expenditure decrease in indeterminable. LSU’s Office of Risk Management and local governmental agencies
will experience the same indeterminable impact.
The AG’s office reports there will be an increase in expenditures as a result of the reduction of the jury threshold and the
extension of the prescription period. The AG indicates that virtually all of their cases would be eligible for a jury trial with
the reduction in the jury threshold; and that they will also see an increase in jury trials as a result of the extension of the
prescription period. As a result, the AG anticipates a need for increased staffing levels: a total of 12 attorneys, 6 paralegals,
and 6 secretaries (with associated operating expenses and acquisitions) for a total of $2.45M annually. It is unknown how
many cases will actually qualify for a jury trial; how many will actually go to trial; and the extent to which it increases the
AG’s workload. The LFO recognizes a potential workload adjustment for the AG as a result of the lower jury threshold;
however, the LFO is unable to subtantiate the level of resources needed by the AG’s office. Further, the AG’s office did not
provide any information on how the additional staff needed due to the change in prescription period was derived.
Based on information received from the LSC, district judges anticipate the lowered jury trial threshold will result in increased
requests for jury trials, which are docketed in a limited manner. As a result, the increased demand for jury trials may lead
to a delay in trials and backlogged dockets, potentially necessitating more judgeships which would require funding via the
SGF. However, because the extent to which there will be additional trials as a result of the proposed law is indeterminable,
the overall effect it will have on dockets, and the prospective need for additional judgeships is similarly indeterminable. The
Louisiana Supreme Court reports an indeterminable impact as a result of the change in the prescription period as they
cannot determine whether the extension will increase or decrease the number of trials.
There will be an indeterminable impact to OGB as a result of the proposed changes to the collateral source rule. In CY19,
OGB had 926 subrogation cases; the total amount paid in claims was $5.7M and the total amount recovered through
subrogation was $3.7M (65%). OGB anticipates that it will be more difficult to settle subrogation cases if the legislation
limits the amount recovered for medical bills. There will be less room for negotiation and there is a potential to reduce the
amount recoverable by OGB.
The Clerks of Court report an increase in expenditures as a result of the lowering of the jury threshold. The Clerks of Court
expect an increase in jury trial requests and associated increase in costs, especially when any governmental entity requests
a jury trial (as they are not required to post a jury bond). In that instance, the Clerks of Court will bear the cost of jury
trials which are funded through self-generated revenues. The Clerks of Court will likely raise court costs on all cases to
cover the additional costs associated with jury trials.
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}
13.5.2 >= $500,000 Annual Tax or Fee Evan Brasseaux
6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Staff Director


Statutes affected:
HB44 Original: 22:1269(B), 32:1(E)
HB44 Engrossed: 22:1269(B), 32:1(E)
HB44 Reengrossed: 22:1269(B), 32:1(E)