It was no coincidence that this year's lobbying day for the Louisiana Bankers Association, which drew the largest number of participants in recent history, featured a keynote speech from Insurance Commissioner Jim Donelon.
"It's not sexy or all over the news, but this is a very huge issue for us," says David Boneno, general counsel to the Louisiana Bankers Association. "You can't write loans without the insurance, and some companies have already stopped writing policies altogether. This could drive up the cost of transactions for everyone."
The LBA is usually a quiet force in the Legislature, but its fundraising and lobbying tactics have grown more sophisticated. LBA has become the unofficial backbone of the Coalition to Insure Louisiana, a broad group of professional associations and white-collar businesses ' banking, real estate, insurance, accounting, contracting, auto dealerships and more ' whose main mission is to keep insurance available and affordable. LBA's state PAC has almost $53,000 in its coffers, and its PAC for federal lobbying contains almost $37,000.
The insurance bill deemed most detrimental by the LBA to regional economies in the state was Senate Bill 693 by Benton Democratic Sen. Robert Adley. It would have repealed the "flex band" law that was enacted several years ago. The law allows insurance companies to increase or decrease their rates up to 10 percent a year without seeking the approval of the Insurance Rating Commission ' the only state entity in the nation that still oversees rates in such a way.
The flex band provision also forces insurance companies to justify their changes with the state Department of Insurance. The LBA and its coalition were successful in killing the measure but are standing guard for any unexpected surprises in the final weeks of session.
Repealing the flex band law would have sent a terrible signal to any company doing or considering doing business in Louisiana, says Guy Williams, president of Gulf Coast Bank and Trust, which has ATM and branch locations stretching from Acadiana into East Baton Rouge Parish and through the New Orleans region. Williams, who has spent considerable time at the Capitol this session lobbying the issue, also believes any move to strengthen the rating commission or give insurance companies another excuse to leave the state should be considered dead on arrival.
"Louisiana has a backwards way of approaching these things," he says. "It's all anti-competitive. We're letting a group of people who have no interest in the industry make these decisions. I fear the Legislature is moving in the wrong direction."
During the same committee meeting where the LBA killed the flex band bill, the group gutted legislation that would have offered consumers different options in suing insurance companies.
The association is also bitterly fighting to alter House Bill 448 by New Orleans Rep. Charmaine Marchand. HB 448 requires the Office of Financial Institutions to educate the public following another natural disaster on their loan payment options if regulators again encourage forbearance, or later payments. New additions to the bill provide that lenders obtain written approval of the borrower if the entire principal and interest is due after the forbearance period, which was 90 days following the fall hurricane season in most cases.
Loan defaults were a major concern last year, but fears subsided a bit in January when payments came due and deposits into banks started increasing again. "We learned just how resilient the banking industry was and how willing consumers can be," Williams says.
As the current legislative session hits its final stride this month, the LBA is also opposing a set of bills that attempt to keep insurance proceeds resulting from damaged homes from being seized for other debts ' and out of the hands of lenders. On the other end of the spectrum, the group has thrown its support behind legislation that requires insurance agents and brokers to have three hours of continuing education dedicated just to flood insurance.
One of the most significant policy issues still looming is the state's housing plan, which recently received approval from the federal Housing and Urban Development agency. The nod comes with $4.6 billion from HUD's Community Development Block Grant program, but another $4.2 billion is needed from Congress to fully finance the housing plan. In theory, homeowners would use the money to make repairs, rebuild or participate in buyouts.
Previous versions of other housing plans promised bankers and lenders 60 percent of what they were owed, or completely left them out of the process. Under the state's plan, the devil is in the proverbial details, and many in the industry still don't know what they are.
"The banks aren't crying and telling us they are having problems," says Boneno, "but many are waiting to find out about the fine print on many issues, like the recovery plan. These things will need to be clarified before any major decisions about the future can be made."
The Lafayette City-Parish Council will consider on Tuesday a revised plan to the transform a block in Downtown Lafayette into a mixed-use residential-retail-commercial development that doesn’t include giving title to the property to the Lafayette Public Trust Finance Authority, an arrangement the council rejected earlier this month.
Trying to combat the national undertones of Louisiana's U.S. Senate race, Democratic incumbent Mary Landrieu is traveling the state this week on a sort of pork celebration tour, telling voters about the projects and aid she's delivered to Louisiana.
Ever thought that big, pink Gulf coast shrimp you ordered at the restaurant or bought from the store didn't taste juicy or salty enough? Maybe it wasn't from the Gulf.
The state treasurer won't sign financial documents needed for $200 million in borrowing or for a refinancing of existing debt until he believes they accurately explain the surplus disagreement.
Bill Cassidy voted for 97 percent of the bills signed by Barack Obama.
Louisiana Gov. Bobby Jindal is joining South Carolina Gov. Nikki Haley on her campaign bus tour.
A New Iberia man has been sentenced to life in prison for killing a 4-year-old girl and scalding her 3-year-old brother.
A district judge decided Wednesday against sanctioning attorney/school board candidate Dawn Morris for her behind-the-scenes role in a lawsuit against Mark Cockerham.
Secretary of State Tom Schedler says Gov. Bobby Jindal's administration may have improperly destroyed records in the state employee health insurance program, in the middle of a heavily-criticized rewrite of benefit plans.
San Fran wins the World Series; Sistine Chapel improvements; Kurds moving toward Syria and more national and international news for Thursday, October 30, 2014.
Thursday's Blogs from the Bog!
Paper cites the former ADA's "experience as a prosecutor, his demonstrated integrity, and his ideas for reshaping the [DA's] office" in urging voters to support Keith Stutes Nov. 4.
Louisiana officials have sent a letter to the American Society of Tropical Medicine and Hygiene un-inviting members of the group who have recently been to ebola-affected West African countries from attending the group’s annual conference in New Orleans next week.
Drew Brees and the New Orleans Saints have to find a way to win on the road if they plan to take over first place in the NFC South.
"It is obvious that Louisiana economic performance has not outperformed the South or the United States as a whole and, in fact, has substantially underperformed..."
A state district judge said he will rule Friday on a preliminary injunction to keep some charter schools from receiving $60 million through Louisiana's public school financing formula.
Saints fans were to gather, make merry, eat/drink compliments of a new Downtown group and watch the Saints beat Carolina and claim 1st place in the NFC South. But...
New Orleans Saints running back Mark Ingram doesn't see his dramatic spike in production as any sort of validation.
U.S. Sen. Mary Landrieu is facing off one last time with her two main Republican challengers before next week's election.
He’s pulling for Knezek and Hidalgo on his end of the parish but issued endorsements in three other districts as well.
Off a narrow gravel road running between a handful of mostly abandoned lots near a Mississippi River levee, down past sprawling oak trees and thick weeds, a lectern framed by banana trees has been set up in front of three short rows of folding chairs.
Hillary Rodham Clinton is heading to New Orleans this weekend to stir up voter support for Democratic U.S. Sen. Mary Landrieu.
Saints coach Sean Payton has spent much of his team's erratic season trying to build his players up.
The Daily Advertiser has weighed in on this year's LPSB elections with nine endorsements.