The Legislature could hold a special session next month to address Louisiana’s property insurance crisis, Senate Speaker Page Cortez said Saturday morning.
State leaders are grappling with how to bring property insurers into the state and reverse the trend of businesses fleeing or failing after several hurricanes hit the state in recent years.
Cortez, a Republican from Lafayette, said he plans to meet with Gov. John Bel Edwards, possibly Wednesday, to finalize plans on whether a session will be needed and when.
“I don’t think any of us have a different solution,” he said.
The Senate leader also said he thinks it could be finished before Mardi Gras — a statewide holiday — because the meeting would likely be limited.
“I think the idea is that this is really an appropriations bill,” Cortez said.
Edwards’ office did not immediately respond to a request for comment.
State Insurance Commissioner Jim Donelon has been pushing for a special session since late last year.
Donelon, a former House member, said he wanted to start an incentive program to attract home insurers to the state.
The move also seeks to reduce the roles of Louisiana Citizens Property Insurance Corp., the state-run insurer of last resort.
These policyholders are facing huge rate hikes.
A similar plan was launched after Hurricane Katrina hit in 2005.
But in December, Cortez and other heads of state, including Edwards, weren’t keen on a special session and said the issue could wait until the 2023 regular legislative session.
Cortez said what has changed is the view that in order to attract insurance companies to Louisiana, they should reinsure themselves before hurricane season and that process happens in late February or March.
Donelon asked lawmakers to let him use $15 million in tax revenue from remaining bonuses to start the incentive program.
About $45 million in total was discussed, Cortez said.
Check back with The Advocate for more details.