HR40: HR40 House Study Committee on Reinsurance for Essential Industries; create

LC 59 0182S The House Committee on Rules offers the following substitute to HR 40: A RESOLUTION Creating the House Study Committee on Reinsurance for Essential Industries; and for other1 purposes.2 WHEREAS, continual increases in both the frequency and severity of claims will increase3 the cost of the property and casualty reinsurance market, which results in higher premiums4 and lower coverage; and5 WHEREAS, commercial property and casualty insurance brokers hav e reported quarterly6 price increases of an average of six percent, which can pressure insured entities to purchase7 inadequate products that do not reflect their actual exposure; and8 WHEREAS, the National Association of Insurance Commissioners states that rising claims9 costs driven primarily by increased frequency of severe storms and rising replacement costs10 continued to challenge United States property and casualty insurers; and11 WHEREAS, these increasing prices disproportionally affect small businesses who may be12 forced to purchase lower limits that do not cover their replacement costs; and13 - 1 - LC 59 0182S WHEREAS, Georgia Commissioner of Agriculture Tyler Harper and G overnor Brian P.14 Kemp, the University of Georgia College of Agricultural and Environmental Sciences, and15 the Georgia Forestry Commission announced the preliminary estimate of Hurricane Helene's16 economic impact on Georgia agriculture is $6.46 billion; and17 WHEREAS, Georgia Commissioner of Agriculture Tyler Harper state d, "The future is18 uncertain for thousands of Georgia farmers and farm families wh o were devastated by19 Hurricane Helene"; and20 WHEREAS, increased capacity in Georgia's commercial property and casualty reinsurance21 market will significantly reduce the overhead costs for all bus inesses, especially small22 businesses.23 NOW, THEREFORE, BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES:24 (1) Creation of House study committee. There is created the House Study Committee25 on Reinsurance for Essential Industries.26 (2) Members and officers.27 (A) The committee shall be composed of seven members.28 (B) The Speaker of the House of Representatives shall appoint five members of the29 House of Representatives who are members of the House Committee on Insurance.30 (C) The Speaker shall also appoint an additional two nonlegisl ative members of the31 committee as follows:32 (i) The Commissioner of Insurance, or his or her designee; and33 (ii) The Commissioner of Agriculture, or his or her designee.34 (D) The Speaker shall also designate a legislative member of t he committee as35 chairperson of the committee.36 - 2 - LC 59 0182S (3) Powers and duties.37 (A) The committee shall undertake a study of the conditions, n eeds, issues, and38 problems mentioned above and the terms and conditions necessary for public-private39 partnerships in Georgia's commercial property and casualty reinsurance market, under40 which the Georgia Department of Insurance will calculate reinsu rance payments to41 issuers participating in Georgia's Reinsurance for Essential Industries Program.42 (B) The committee shall identify:43 (i) Ways in which the state can facilitate special risk pools with public-private funds;44 (ii) The approximate amount of funding necessary for premium reductions for special45 risk pools;46 (iii) Criteria to identify essential industries of strategic interest in the state facilitated47 special risk pools; and48 (iv) Industries whose premium reductions would be the most beneficial for Georgia's49 economy.50 (C) The committee shall recommend any action or legislation which it deems necessary51 or appropriate.52 (4) Meetings. The chairperson shall call all meetings of the committee. The committee53 may conduct such meetings at such places and at such times as it may deem necessary or54 convenient to enable it to exercise fully and effectively its powers, perform its duties, and55 accomplish the objectives and purposes of this resolution.56 (5) Allowances, expenses, and funding.57 (A) The legislative members of the committee shall receive the allowances provided58 for in Code Section 28-1-8 of the Official Code of Georgia Annotated.59 (B) Members of the committee who are state officials, other than legislative members,60 or who are state employees shall receive no compensation for th eir services on the61 committee, but they may be reimbursed for expenses incurred by them in the62 - 3 - LC 59 0182S performance of their duties as members of the committee in the same manner as they63 are reimbursed for expenses in their capacities as state officials or employees.64 (C) The allowances authorized by this resolution shall not be received by any member65 of the committee for more than three days unless additional days are authorized. Funds66 necessary to carry out the provisions of this resolution shall come from funds67 appropriated to the House of Representatives; except that funds for the reimbursement68 of the expenses of state officials, other than legislative memb ers, and for the69 reimbursement of the expenses of state employees shall come from funds appropriated70 to or otherwise available to their respective agencies.71 (6) Report.72 (A) In the event the committee adopts any specific findings or recommendations that73 include suggestions for proposed legislation, the chairperson shall file a report of the74 same prior to the date of abolishment specified in this resolut ion, subject to75 subparagraph (C) of this paragraph.76 (B) In the event the committee adopts a report that does not i nclude suggestions for77 proposed legislation, the chairperson shall file the report, subject to subparagraph (C)78 of this paragraph.79 (C) No report shall be filed unless the same has been approved prior to the date of80 abolishment specified in this resolution by majority vote of a quorum of the committee.81 A report so approved shall be signed by the chairperson of the committee and filed with82 the Clerk of the House of Representatives.83 (D) In the absence of an approved report, the chairperson may file with the Clerk of the84 House of Representatives a copy of the minutes of the meetings of the committee in lieu85 thereof.86 (7) Abolishment. The committee shall stand abolished on December 1, 2025.87 - 4 -