Provides relative to the tax on premiums paid for surplus lines insurance (EN SEE FISC NOTE GF RV See Note)
Impact
By enacting HB 469, Louisiana will establish clearer guidelines for surplus lines insurance transactions, enabling better cooperation with other states. The bill establishes a uniform method for remitting surplus lines taxes and requires brokers to report on the premium transactions periodically. This modification serves to streamline tax-related procedures, which can benefit both the state in terms of revenue collection and the insurance industry by reducing administrative burdens. The agreement with other states on tax matters will help avoid confusion and potential discrepancies in taxation across borders.
Summary
House Bill 469 regulates the tax on premiums paid for surplus lines insurance in Louisiana. It amends R.S. 22:439 to conform state law with federal law by setting a clear structure for the collection, receipt, and distribution of taxes on surplus lines insurance. The bill also requires the state’s insurance commissioner to enter into agreements with other states to facilitate the collection and allocation of premium taxes, aligning Louisiana’s practices with the Nonadmitted and Reinsurance Reform Act of 2010. This regulatory measure aims at improving the efficiency and compliance of surplus lines insurance taxation across different jurisdictions.
Sentiment
The sentiment surrounding HB 469 is largely supportive among industry stakeholders who recognize the need for uniformity and clarity in insurance tax regulations. Proponents believe that the bill will facilitate smoother operations for surplus lines brokers and help the state ensure that it receives its proper tax revenues. However, there are concerns from some quarters about the implications of tax changes for smaller insurers and the need for adequate oversight to prevent compliance issues. Overall, the sentiment appears to tilt towards acceptance, with some caution regarding the implementation details.
Contention
Notable points of contention involve the implementation of the multistate agreements, specifically regarding how taxes will be allocated between states and how brokers will be assessed fees for their transactions. Critics express concern that without careful oversight, the system might disadvantage smaller insurance companies that may find compliance more challenging under new regulations. Additionally, as the bill necessitates adherence to federal law, there is ongoing scrutiny regarding the readiness of Louisiana’s systems and regulatory bodies to adapt effectively to these legislative changes.
Establishes a flat rate of insurance premium tax and provides relative to certain insurance premium tax credits and exemptions (RR SEE FISC NOTE GF RV)
Provides a procedure for the LSU Board of Supervisors and the commissioner of administration to seek approval from the JLCB and the legislature to proceed with the sale of a hospital. (gov sig) (EN SEE FISC NOTE GF EX)
Authorizes the commissioner of administration to transfer certain property in Lincoln Parish to Grambling State University and to Louisiana Tech University. (8/1/12)