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LMR July 2023

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TREASURY NOTES<br />

Making Electronic Payments Possible at State Agencies<br />

I have been advocating for<br />

state agencies to expand<br />

their payment options, and I<br />

feel now is the time to make<br />

it happen. I’m tired of hearing<br />

all the reasons it can’t be<br />

done or how much it’s going<br />

to cost. This isn’t about what’s<br />

convenient for the government<br />

to do, it’s about doing<br />

what’s best for taxpayers.<br />

I have requested that the<br />

Louisiana Cash Management<br />

Review Board (CMRB) craft a<br />

comprehensive plan with implementation<br />

deadlines for<br />

all state agencies to accept<br />

electronic payment options<br />

such as Venmo and PayPal.<br />

This is about efficiency and<br />

With the arrival of the <strong>2023</strong><br />

hurricane season, the Louisiana<br />

Department of Insurance<br />

(LDI) is hopeful that this<br />

season will be similar to the<br />

relatively quiet and uneventful<br />

season we experienced in<br />

2022. As we ready ourselves<br />

for this new hurricane season,<br />

the LDI encourages everyone<br />

to review their overall hurricane<br />

preparedness and replenish<br />

their hurricane emergency<br />

supplies.<br />

As part of emergency preparedness,<br />

every municipality<br />

should review and examine<br />

its insurance policies and<br />

verify that all National Flood<br />

Insurance Program (NIP) policies<br />

are in place and cover<br />

up to the maximum amount<br />

of insurance offered for all<br />

municipality-owned facilities<br />

made the subject of a previous<br />

Stafford Act (42 U.S.C.<br />

customer service for Louisiana<br />

citizens.<br />

The state’s current merchant<br />

services contract provides<br />

the option of accepting digital<br />

payments with a cost similar<br />

to the cost of accepting<br />

credit cards. However, there<br />

5121, et seq.) grant. Coverage<br />

verification is critical, as the<br />

Federal Emergency Management<br />

Agency (FEMA) may<br />

conclude that a municipality<br />

is ineligible to receive a<br />

Stafford Act grant due to the<br />

may be upfront costs related<br />

to changing an agency’s integrated<br />

software so that when<br />

payments are received electronically,<br />

the payment activates<br />

the agency’s network<br />

to process, for example, the<br />

fishing license that was purchased.<br />

After a request from<br />

the agency and an approved<br />

recommendation from my<br />

office, the House and Senate<br />

must approve any convenience<br />

fees before agencies<br />

can charge them to citizens.<br />

Later this summer, a plan for<br />

shifting to statewide agency<br />

electronic payment acceptance<br />

will be presented to<br />

the full CMRB.<br />

municipality’s failure to obtain<br />

and maintain adequate<br />

NIP flood insurance on facilities<br />

included in a prior FEMA<br />

grant.<br />

John Schroder,<br />

State Treasurer<br />

I look forward to a day in the<br />

near future, when electronic<br />

payments, beyond credit<br />

cards, are accepted at all<br />

state agencies.<br />

Stafford Act: Obtain and Maintain Insurance Obligations<br />

As part of emergency<br />

preparedness, every<br />

municipality should<br />

review and examine<br />

its insurance policies.<br />

Jim Donelon<br />

Commissioner, Louisiana<br />

Department of Insurance<br />

Municipalities in 63 of Louisiana’s<br />

64 parishes previously<br />

requested and received a<br />

Stafford Act FEMA grant. Each<br />

of these municipalities should<br />

take a moment to verify that<br />

they comply with the statutory<br />

obligation to obtain and<br />

maintain property insurance<br />

for the full amount of the<br />

FEMA grant for the peril that<br />

caused the previous damage.<br />

Any municipality that is unable<br />

to obtain and maintain<br />

property insurance for the full<br />

amount of the FEMA grant,<br />

must apply to our office for<br />

an Insurance Commissioner<br />

Certification (also referred to<br />

as an “ICC”), requesting a reduction<br />

to the amount of insurance<br />

required by law.<br />

Please alert every municipality<br />

of this critical issue, and if<br />

you have any questions concerning<br />

the obtain and maintain<br />

requirement or need further<br />

assistance, please contact<br />

Deputy Commissioner Chuck<br />

Myers by phone at (225)<br />

342-5203, or electronically at<br />

chuck.myers@ldi.la.gov.<br />

<strong>LMR</strong> | JULY <strong>2023</strong> Page 7

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