Louisiana Senate Bill SCR66

Louisiana 2020 Regular Session

• Introduced: 5/19/20
• Refer: 5/20/20

Caption

Suspends the provisions of Act 260 of the 2019 Regular Session relative to structured settlements.

Impact

If enacted, the suspension of Act 260 would temporarily halt the regulations that govern structured settlement transactions. This includes provisions requiring court approval for transferring structured settlement payment rights, as well as mandates for companies to register and ensure compliance with state laws. By suspending the act, SCR66 would allow for a review or potential modification of these regulations, impacting not only the operational capacity of structured settlement purchase companies but also the rights and protections afforded to payees under Louisiana law.

Summary

Senate Concurrent Resolution No. 66 (SCR66) seeks to suspend the provisions of Act 260 of the 2019 Regular Legislative Session pertaining to structured settlements until July 1, 2021. This act established regulations for structured settlements in Louisiana, introducing requirements for structured settlement purchase companies, their registration, and the obligations they must fulfill, including posting security bonds to protect payees. The suspension proposed by SCR66 reflects concerns regarding the implications of these regulations on the industry and the rights of the payees involved in structured settlements.

Sentiment

The discussions surrounding SCR66 highlight a mixture of sentiments, with proponents viewing the suspension as a necessary measure to facilitate clarity and fairness in structured settlement transactions. They argue that the existing regulations may impose undue burdens on structured settlement purchase companies, thereby limiting payees' options. In contrast, opponents might express concern that the suspension could undermine the protections provided by Act 260, leaving payees vulnerable to potential exploitation or unfavorable transfer agreements.

Contention

A notable point of contention is how the suspension could affect the oversight of structured settlement transfers. Under Act 260, court involvement is required to ensure that the interests of payees are safeguarded. By suspending these provisions, there is a risk that individuals seeking transfers may navigate a less regulated environment, which could lead to unmonitored transactions that might not be in their best interest. As such, the debate encapsulates broader concerns regarding consumer protection, regulatory oversight, and the balance between facilitating business operations and ensuring the welfare of vulnerable individuals.