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Data privacy, tax compliance clash as surplus‑lines data bill fails on tie vote
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Summary
House Bill 12‑21, which would require collection of surplus‑lines policy data to support Fortified Homes fund audits, failed in committee on a 6‑6 roll call after extended debate over whether names, street addresses and policy limits should be included in a centralized database.
House Bill 12‑21 was presented to the committee as a measure to centralize surplus‑lines policy reporting into a clearinghouse (SlipPlus or similar) to improve premium audit reconciliation, fraud detection and post‑storm consumer outreach for the Fortified Homes Fund. The sponsor and former Rep. Bowler urged narrow data collection — excluding insured names, street addresses and coverage limits — citing privacy and the Gramm‑Leach‑Bliley financial‑privacy framework.
Matthew Stewart, deputy commissioner of licensing at the Department of Insurance, said brokers already collect the insured’s name, address and policy identifiers and that centralizing the input would allow the department to “know to the best possible ability that we're getting a 100% of the tax that is due the state of Louisiana.” Stewart described benefits for premium tax reconciliation, post‑storm outreach and fraud detection.
Commissioner Tim Temple supported the department’s approach as an efficiency and consumer‑protection tool; former Rep. Bowler and others urged stronger limits on what elements are sent to the clearinghouse and emphasized constitutional privacy concerns. On the committee roll call the motion to report HB 12‑21 favorably resulted in a 6‑6 tie and the bill failed to be reported favorably.
The outcome leaves the Department of Insurance pursuing its centralized reporting timeline (the department indicated the system would begin July 1 for surplus‑lines reporting) while opponents signaled they will continue to press for narrower data elements or stronger safeguards.
