LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: SB 56 SLS 202ES 192
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: October 23, 2020 10:58 AM Author: TALBOT
Dept./Agy.: Insurance
Subject: HMOs as Business Corporations or Nonprofit Corporations Analyst: Patrice Thomas
HEALTH/ACC INSURANCE EN NO IMPACT See Note Page 1 of 1
Provides relative to health maintenance organizations. (gov sig) (Item # 32)
Proposed law expands the definition of health maintenance organizations (HMOs) to include any corporation organized as
either a business corporation or a nonprofit corporation. In addition to Business Corporation Law, proposed law expands
the Nonprofit Corporation Law to health maintenance organizations.
EXPENDITURES 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
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
There is no anticipated direct material effect on governmental expenditures as a result of this measure. Proposed law
expands the definition of Health Maintenance Organizations (HMOs) to include any corporation organized as either a
business corporation or a nonprofit corporation as well as clarifies language in nonprofit corporation law as it pertains to
HMOs in Title 22 (Insurance Code) and Title 12 (Corporations and Associations). Currently, LA Department of Insurance
licenses and regulates all HMOs, including nonprofit HMOs.
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}
Alan M. Boxberger
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} Staff Director


Statutes affected:
SB56 Original: 22:242(7), 22:243(F)
SB56 Engrossed: 22:242(7), 22:243(F)
SB56 Reengrossed: 22:242(7), 22:243(F)
SB56 Enrolled: 22:242(7), 22:243(F)
SB56 Act 58: 22:242(7), 22:243(F)