Provides relative to the insurance premium tax credit (Item #6) (EN -$1,300,000 GF RV See Note)
Impact
The implementation of HB 24 is expected to positively impact state laws concerning financial regulations specific to health maintenance organizations. By lifting the tax reduction restrictions imposed previously, HMOs will have a greater incentive to invest significantly in state-approved bonds and other qualifying investments. This change could catalyze further economic activities in relevant sectors such as healthcare and local infrastructure development. This bill thus aims to align financial incentives for HMOs with the legislative push for economic growth and local investment in Louisiana.
Summary
House Bill 24 aims to amend the state law governing the insurance premium tax credit, specifically addressing the treatment of health maintenance organizations (HMOs). This bill seeks to exempt HMOs from a reduction on their insurance premium taxes imposed in a prior act, thereby encouraging them to engage in qualifying Louisiana investments. Qualifying investments would include specific financial products like certificates of deposit and cash deposits within local financial institutions. The overarching goal is to stimulate investments within Louisiana by these organizations, creating a more favorable financial environment for state-managed healthcare entities.
Sentiment
The sentiment surrounding HB 24 appears to be largely favorable among legislators who support enhancing investment opportunities and strengthening the local economy. During discussions, proponents have advocated that this bill could ultimately benefit healthcare accessibility and operational capabilities of HMOs in the state. However, there might be underlying concerns among some stakeholders regarding the long-term implications of tax exemptions and whether such measures could lead to overall revenue losses for the state.
Contention
While the bill has gained support for its potential financial benefits, it has also raised questions about the appropriateness of tax exemptions for health maintenance organizations in the context of broader state budgetary concerns. Detractors worry about the precedent set by further exemptions in taxation for certain sectors, which raises ethical considerations about equitable tax treatment among various businesses and industries in Louisiana. Thus, the discussions could potentially indicate a split between economic growth advocates and tax equity proponents within the legislative framework.
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)
Adds certain investments by businesses issuing life insurance policies to investments eligible for the insurance premium tax credit (OR DECREASE GF RV See Note)
Reduces the amount of the insurance premium tax credit for insurers who invest their assets in certain La. investments through July 1, 2017 (OR +$1,544,000 GF RV See Note)
Requests that the Bd. of Regents and the State Bd. of Elementary and Secondary Education, with the Taylor Foundation, La. Office of Student Financial Assistance, public postsecondary education management boards, and certain others, study certain issues relative to TOPS
Requests the Louisiana Workforce Commission and the Louisiana Department of Veterans Affairs to study employment practices and professional licensing requirements to benefit veterans in the workforce
Creates a task force to study meaningful oversight of the professional healthcare licensing boards statutorily created within the Department of Health and Hospitals.