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 It would have repealed the "flex band" law that was enacted several years ago.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."
Hopefully he’ll be better prepared today than he was in that Feb. 20 deposition.
They came by the hundreds, arriving from all regions of the state to gather on the steps of our Capitol in protest of the Legislature’s long tradition of giving industry the go-ahead to abuse our air, our water and our coastline, all in the name of good economics.
Gov. Bobby Jindal’s recent rhetoric against President Barack Obama has failed to boost his standing among the conservative base.
Louisiana's annual legislative session begins.
The state has hired marksmen to shoot feral hogs from helicopters at two wildlife management areas in south Louisiana.
The former star of Saturday Night Live throws in his 2 cents on the Big Oil lawsuit.
Here's your daily look at late-breaking national and international news, upcoming events and the stories that will be talked about Monday, March 10, 2014:
The Board of Elementary and Secondary Education has stalled action on a $3.5 billion annual school funding formula due to state lawmakers by March 15.
The New Orleans Saints have yet to make it official as of this writing, but popular wide receiver Lance Moore has reportedly been cut by the team to free up salary-cap space on the roster.
While two medical marijuana bills are slated for the upcoming legislative session, what some Louisianans might not know is that the plant was approved for therapeutic use by state lawmakers in 1991.
The agenda is shaping up to be lighter than in previous years. But Jindal is term-limited, with fewer than two years remaining in office, and he saw his last big initiative — a proposed rewrite of Louisiana tax law — collapse without getting a vote in 2013.
Sharper has been held without bail because of an arrest warrant issued by Louisiana authorities accusing him and another man of raping two women.
Two Lafayette men have been revealed by police as the infamous duo behind a caper that shook our fair city to its core.
The Lafayette Parish School Board has received a second letter of demand related to last year’s insurance debacle, this time from Key Benefit Administrators claiming it’s owed $93,000 from the school system.
The Louisiana coastline is vanishing faster than mappers can keep track.
A bill that would have overridden local ordinances prohibiting public and private employers from discriminating against lesbian, gay and transgender people has been pulled within less than a week of being filed.
The panel that selects nominees for a controversial New Orleans area flood control board — a board that is suing more than 90 oil, gas and pipeline companies — is set to discuss legislation affecting its independence.
State prison officials cannot keep secret the seller and manufacturer of the two drugs purchased for executions at the Louisiana State Penitentiary, a federal judge ruled Wednesday.
State lawmakers will not appeal a judge's ruling that it was improper to use $3.7 million from a probation and parole officers' retirement fund to balance the state's operating budget.
Conservatives have been losing their minds over this satirical bit on the Colbert Report.
The Lafayette Parish School Board leaves a lot to be desired, but is scrapping the election process in favor of an appointed board the answer?
The House approved legislation Tuesday night to roll back a recently enacted overhaul of the federal flood insurance program, after homeowners in flood-prone areas complained about sharp premium increases.
The NFL has formally designated New Orleans' Jimmy Graham as a tight end for the purposes of his franchise tag value, which is now set at $7.05 million next season unless Graham and the Saints subsequently agree on a long-term deal.
A federal appeals panel ruled Monday that businesses don't have to prove that they were directly harmed by BP's 2010 Gulf Of Mexico oil spill to collect settlement payments.
The Louisiana Department of Transportation and Development has closed Interstate 10 from I-49 in Lafayette to Seigen Lane in Baton Rouge.