www.thecentersquare.com – By Nolan McKendry | The Center Square – (The Center Square – ) 2025-04-23 14:48:00
(The Center Square) — A Louisiana House committee advanced legislation this week that could reshape how contractors interact with homeowners after storm damage, reigniting debate over consumer protection and insurance industry influence.
At the center of the debate is House Bill 121, which seeks to crack down on unlicensed public adjusting by contractors, particularly in the roofing industry. The measure would keep the current penalty of up to $5,000 per violation but adds clearer restrictions on what contractors can say or do when it comes to insurance claims.
Though the bill was reported favorably without objection from lawmakers, witnesses testimony suggests that the bill could backfire tremendously.
The bill would explicitly prohibit roofing contractors from assisting homeowners with insurance paperwork before a claim is filed.
A separate, related proposal would broaden that restriction to include all contractors. The bill also bars licensed public adjusters from doing repair work on the same claims they’re handling — a move supporters argue would eliminate conflicts of interest that could inflate costs and premiums.
Opponents say the measure is overly vague and could unfairly penalize contractors trying to help clients navigate the often-confusing claims process.
“This bill is ambiguous,” said Jonathan Davis, a board member of the Residential Roofing Association of Louisiana, during committee testimony. “It talks about claim handling, but that could mean a lot of things,” he said, such as doing a damage assessment or sending in a bid using the insurer’s own software.
Davis raised concerns that even basic communication — like explaining deductibles — could be interpreted as unauthorized public adjusting.
“Just like I can tell you there’s an engine in a car without being a mechanic, I should be able to explain what a deductible is without being a licensed adjuster,” Davis told lawmakers.
Josh Lovell, a sales and project manager with Gator Roofing, echoed those concerns.
“Eighty percent of the homeowners I meet don’t know what to do when we find damage,” he said. “They ask, ‘What do I do?’ and we walk them through it — wind damage, hail damage, hurricane damage — they don’t know the difference or what deductible applies. If we’re not even allowed to explain the process, we’re just handing everything over to the insurance companies.”
Lovell warned that limiting contractor communication with homeowners could leave people vulnerable to underpaid claims and strip them of the support they often rely on.
“People say, ‘I don’t want to talk to my insurance company, can you handle it?’ That doesn’t mean we’re trying to act as adjusters. We’re just helping people who are overwhelmed,” Lovell continues.
Despite the pushback, supporters of the bill say the intent is to protect consumers and preserve the integrity of the claims process.
The House Insurance Committee advanced the bill, though some lawmakers acknowledged the enforcement concerns.
Rep. Edmond Jordan, D-East Baton Rouge, questioned how the state would prove violations without direct evidence.
“If we don’t have something in writing or an audio recording, how do we enforce this?” he asked.
House Bill 121 now heads to the full House for consideration.
Louisiana lawmakers plan to withdraw \$1.2 billion from the state’s Revenue Stabilization Trust Fund to fund infrastructure, economic development, and technology upgrades. The budget includes \$709M for roads and bridges, \$150M for development sites, and \$59.8M for government tech. Notable allocations include \$280M to attract federal transportation funds, \$101M for bridge maintenance, \$75M for water systems, and \$29M for college repairs. Other spending supports voting machine upgrades, a marketing campaign, and AI monitoring in prisons. Though Louisiana isn’t in a budget crisis, lawmakers cite strong reserve balances. After the withdrawal, \$2.7B remains in the trust fund.
The Louisiana Legislature’s leaders want to spend $1.2 billion that would typically be deposited into a state savings account on infrastructure, economic development and technology upgrades.
State lawmakers expect to send Gov. Jeff Landry a $48 billion budget plan for the fiscal year that starts July 1 by the time their legislative session concludes Thursday. The current plan includes additional money for roadways and bridges ($709 million), economic development site upgrades ($150 million), state government technology improvements ($59.8 million) and public university maintenance projects ($28 million).
The money comes from a state savings account called the Revenue Stabilization Trust Fund, which takes in corporate taxes as well as energy production taxes in excess of $600 million each per year. Established by voters in 2016, the fund was set up to provide an additional source of funding to Louisiana during economic downturns when the state faces budget crises.
Lawmakers gave themselves a significant amount of latitude in the law to access the fund at any time, so long as they can get two-thirds of the House and Senate to vote to draw down the money.
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The Senate voted unanimously Monday through House Bill 461 to withdraw $1.2 billion. The House is expected to approve the same plan Wednesday or Thursday.
Louisiana is not in the midst of a budget crisis but legislators feel confident about using the money anyway because the state’s two major savings accounts are flush with cash. They also took $717 million out of the account just last year, mostly for transportation and youth prison projects.
Even after the withdrawal, the Revenue Stabilization Trust Fund will have $2.7 billion left. There’s also more than $1.1 billion in the Budget Stabilization Trust Fund, a separate account often referred to as the state “rainy day” fund used to cover budget shortfalls.
Here are some highlights of how the money will be spent:
$280 million: Transportation funding to attract federal money
Rep. Jack McFarland, R-Jonesboro, said this allocation will be used to draw down $1.3 billion in federal funding for transportation projects that could include both new construction and maintenance of existing infrastructure. A list of specific items that would be funded was not provided.
This money would be used to fix and upgrade existing transportation infrastructure, according to McFarland. On top of this money, an additional $63 million is going directly to state transportation districts, where it can also be used for that purpose.
$150 million: Louisiana economic development site investment
The Louisiana Economic Development agency requested this funding in order to pay for physical upgrades and infrastructure at specific sites where the state hopes to attract private sector investment.
For example, the state has already committed to spending millions of dollars to build new roads around the site of the anticipated Hyundai steel mill in Ascension Parish. It will also reimburse Hyundai for some of the construction the company undertakes to build its facility at that location, according to The Times-Picayune. It’s unclear whether any of this funding is committed to the Hyundai project or others recently announced.
On top of this allocation, the economic development agency will also receive an additional $74 million for its “debt service and commitments program” from the $1.2 billion. The department will also get $5 million to launch a marketing campaign for the state.
$101 million: Bridge upgrades McFarland said Louisiana intends to “bundle up” bridge maintenance projects – around 20 at a time – and put them out to bid as a collective in order to get a better price on the construction work. This money would be used to pay for that work.
$75 million: Water system upgrades
This money is supposed to be used to improve local drinking water and sewerage systems in Louisiana. The state has put hundreds of millions of dollars toward similar projects since 2021, but the repairs needed are estimated to cost billions of dollars.
$29 million: College campus deferred maintenance
The funding will support delayed construction projects and repairs at public universities and colleges. It includes $3 million for work at the University of New Orleans, which is being transferred to the LSU System later this year.
$24.1 million: OMV technology upgrades
The state Office of Motor Vehicles experienced outages of its system this spring, leading Gov. Jeff Landry to declare a state of emergency and waive driver’s license fees as members of the public struggled to access the system. The technology motor vehicle offices rely on is approximately 50 years old.
$10 million: LIV Golf and other ‘major’ events
Lawmakers will combine this money with other state funds in the Major Events Incentive Fund for a total of $16.4 million in spending for tourist-heavy events that are expected to generate revenue.
These include $7 million for a LIV Golf League event in New Orleans; $3.5 million for the months-long U.S. Bowling Congress Tournament in Baton Rouge; $1.2 million for Essence Festival in New Orleans and $1.5 million for an Ultimate Fighting Championship event in New Orleans.
$10 million: New voting machines For years, Louisiana has been trying to purchase new voting machines to replace ones that are more than three decades old. This allocation comes as lawmakers passed legislation to change the bid process for purchasing a voting system earlier this month.
$5 million: Upgrade to Medicaid eligibility system
This money is supposed to allow Louisiana to upgrade the technology it uses to make sure Medicaid recipients are eligible for the public health insurance benefit. The Louisiana Department of Health recently announced its intention to start cross-checking its Medicaid rolls with other state databases, including those used by the Office of Motor Vehicles.
$4 million: More grass cutting on state roads
This allocation will be used to pay for additional cycles of mowing along state roads over the next fiscal cycle.
$3 million: AI tool for monitoring state prisoner phone calls Louisiana’s prison system will receive $3 million to help pay for an artificial intelligence tool that monitors and collects data on phone calls from state prisoners. The program Verus, made by the company LeoTech, is used to detect criminal activity, prevent self-harm and assist with public safety, according to the LeoTech’s website.
The company says it does not monitor communication between incarcerated people and their attorneys, spiritual advisors or doctors.
$3 million: Louisiana Supreme Court building security
The court is receiving a blanket $1.8 million to upgrade security at its facility in the French Quarter in New Orleans. Another $1.1 million has been allocated specifically for additional fencing around the building.
$1.8 million: State police payment for the ‘recapture of fugitives’ The state’s top law enforcement agency is receiving $1.8 million for “expenses related to the recapture of fugitives.”
Louisiana Illuminator is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Louisiana Illuminator maintains editorial independence. Contact Editor Greg LaRose for questions: info@lailluminator.com.
Note: The following A.I. based commentary is not part of the original article, reproduced above, but is offered in the hopes that it will promote greater media literacy and critical thinking, by making any potential bias more visible to the reader –Staff Editor.
Political Bias Rating: Centrist
The content presents a detailed and factual account of Louisiana’s legislative budget decisions without any overt editorializing or partisan language. It describes how funds are being allocated across various sectors such as infrastructure, economic development, technology upgrades, and public safety, reflecting a pragmatic approach to governance. The emphasis on bipartisan legislative approval and the inclusion of multiple perspectives and facts suggests a neutral stance aimed at informing readers rather than advocating a particular political viewpoint.
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