Legislative Update A MESSAGE FROM THE PRESIDENT COULTER McMAHEN, PRESIDENT/CEO, LADA The past six months have been eventful for LADA, marked by significant legislative activity and accomplishments. This year’s regular session was a general session, meaning no tax legislation could be considered. Our primary objective was to educate the 36 newly elected legislators about LADA, the franchise system and its importance in Louisiana. Additionally, we focused on defending the franchise dealer model and advocating for legislation to reduce rising insurance costs by fostering competition among insurance companies. I am pleased to report that we achieved these goals. House Bill 535, introduced by Representative Aimee Freeman, proposed allowing manufacturers of solely electric vehicles to sell directly to consumers in Louisiana, undermining our franchise system. Thanks to our efforts, including my testimony before the House Transportation Committee, the bill was defeated. Your engagement was crucial to this success, so thank you to all who contacted the committee members. House Bill 957, introduced by Representative Edmond Jordan, sought to prohibit sharing personal driver information without the driver’s express consent. This bill would have disrupted communication channels between dealerships, manufacturers, insurers and third-party vendors and imposed an onerous requirement on dealers to obtain explicit consent from consumers. Moreover, the bill could have exposed dealers to potential lawsuits if any employee failed to secure this consent. We led the opposition, and the bill was defeated. Representative Jordan subsequently introduced House Concurrent Resolution 94 to study direct-to-consumer motor vehicle sales despite clear evidence supporting the franchise model. This was a retaliatory move following the defeat of HB 957. I’m pleased to announce that the study resolution was denied a hearing and did not advance out of the House Commerce Committee. This rare outcome underscores our legislators’ recognition of the significant role our franchised dealers play in Louisiana’s economy. LADA, alongside diverse stakeholders, championed multiple legislative initiatives aimed at improving Louisiana’s insurance and legal environment. Despite some achievements, our efforts encountered significant resistance from Senate Judiciary A Committee, Governor Landry and the plaintiff attorney bar. House Bill 337, introduced by Representative Jack McFarland, repeals Louisiana’s direct-action statute and was signed by Governor Landry on May 23. Previously, Louisiana was one of only three states permitting plaintiffs to sue both the tortfeasor and the insurance company. Most states have eliminated this practice, recognizing that naming the insurance company in lawsuits often leads juries to award higher damages. Senate Bill 355, introduced by Senator Jeremy Stine, mandates disclosure of third-party litigation financing agreements to enhance transparency. Currently, funders operate without the need to disclose their agreements, leaving uncertainty about their influence on litigation decisions. Under the bill, plaintiffs must disclose all third-party litigation funding agreements upon request during discovery, akin to defendants being obligated to produce insurance policies when requested by plaintiffs. Governor Landry signed the bill into law on June 18. 6
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