§5082. Authority of the affiliate or subsidiary of local housing authority to form, join, and participate in risk management agency

            A. Any two or more subsidiaries and affiliates of a local housing authority may make and execute an agreement between or among themselves to form and become members of a risk management organization. After a risk management organization has been formed, any affiliate or subsidiary of a local housing authority may, subject to the bylaws and requirements of the entity, become a member and through participation in the organization may do any of the following items:

            (1) Pool its general liability risks in whole or in part with those of other affiliates and subsidiaries of local housing authorities.

            (2) Pool its workers' compensation risks in whole or in part with those of other affiliates and subsidiaries of local housing authorities.

            (3) Pool its directors and officers liability risks, including employment practices liability coverage, in whole or in part with those of other affiliates and subsidiaries of local housing authorities.

            (4) Pool its property coverage risks in whole or in part with those of other affiliates and subsidiaries of local housing authorities.

            (5) Pool other coverage risks the board of trustees or the risk management organization may determine to be appropriate in whole or in part with those of other affiliates and subsidiaries of local housing authorities.

            (6) Purchase insurance for risks of general liability; workers' compensation; directors and officers liability, including employment practices liability; property; or other insurance for such other lines of coverage pooled by the risk management organization with other affiliates and subsidiaries of local housing authorities participating in and belonging to the risk management organization. The pooled risks of the participating affiliates and subsidiaries of local housing authorities shall be described in a plan of coverages with the total premium prorated among the participants.

            B. Affiliates and subsidiaries of local housing authorities concluding an agreement under the provisions of this Chapter shall by resolution duly adopted by their governing body designate the Louisiana Housing Council, Inc. to administer the risk management agency and any group self-insurance fund or funds established by the organization, and to administer the terms and conditions of the agreement by which the organization and any self-insurance fund or funds have been established.

            C. All arrangements and agreements made under the authority of this Chapter shall be reduced to writing. Any affiliate and subsidiary of a local housing authority may become a member of a risk management organization by the resolution adopted by its governing body in the same manner as are other proceedings of the governing body. The risk management organization will operate under the name and style as provided in the agreement and shall have the power to sue and be sued.

            Acts 2022, No. 686, §1, eff. June 18, 2022.