House Insurance Committee, March 20, 2026

Transcript

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1. 0:20:38

   Good morning. Let's see, volume up, volume up, volume up. Yes.

2. 0:20:43

   How you doing this morning?

3. 0:20:46

   Right. I was, I was going to make you aware. We'll be a few minutes. Um, stand at ease for a few more minutes. We are getting some copies up, but, uh, make you aware that, uh, there's some more things coming. That's what we're, we're waiting on. Thank you.

4. 0:24:08

   All right, I think we're about ready to begin here. If you would, please. Welcome. This is the, uh, full House Insurance Committee. We have, uh, four measures before us today. I th- well, actually three, but before we get started, I'm going to call on, uh, Carolyn Hugley, our, uh, the majority leader to, um, minority leader to, um, say a word of prayer. Thank you.

5. 0:24:31

   Good morning. Uh, please join us in a word of prayer. Oh, Father God, we thank you for this day. We thank you for the opportunity that you've given each of us to be here, to work on behalf of the citizens of this great state. We ask now for wisdom and justice as we deliberate the issues before us. We ask you also for traveling grace and mercy today as we go back to our respective homes. These things we ask in the name of Jesus. Amen.

6. 0:24:59

   All right. You are, I think. All right. L- let's get started. Um, I'm going to call, uh, Senator Steele, uh, first. We, you have before you a, uh, substitute to Senate Bill 462. We'll be working from LC521101S. That was just passed out to you. Um, Senator Steele, if you would, please. Uh, you can either the ... Just ... Okay.

7. 0:25:25

   Make sure we're up to the latest and greatest.

8. 0:25:47

   Floor is yours. If you would, uh, present the bill, and you are at the table mic. Okay, go ahead.

9. 0:25:54

   Thank you, Chairman, committee. Good to see you all. Uh, thanks for making the effort. You know, it's not, uh, it's not a 6:00 AM committee meeting, but, uh-

10. 0:26:01

    Mm-hmm.

11. 0:26:04

    Too soon?

12. 0:26:07

    Yeah. Okay.

13. 0:26:10

    You know, we, we gotta keep it light around here whenever we can. Um, I'll be on that time as well, so, uh, you are not suffering alone. Um, Senate Bill 462, LC521101S. Everybody have that version?

14. 0:26:29

    Yes.

15. 0:26:30

    Okay. So Senate Bill 462 started off as a, um, out of network ambulance billing bill. It was designed to allow, um, or to eliminate surprise billing. So if you've ever, yourself or a loved one, um, been taken by ambulance, um, one of the most traumatic parts of that, other than the injury and the cause itself, is the, uh, the need to sign a contract, uh, in a moment of duress, uh, on what the billing on that is going to be.

16. 0:27:07

    And so in an abundance of trying to do right by consumer protection, uh, we worked, um, most of the off- off session this past year to get the entire, um, ambulance, the, the private, uh, side, not the, the county side, together to write a bill to, uh, make clear that they cannot bill more than 325% of the Medicare rate on private ...

17. 0:27:42

    So just on that side, on the emergency side. This does not include, uh, non-emergency. Does not include air. And so that's where the bill started. Um, and as you can see in front of you, um, it is no longer a four-page bill. It's a little bit longer. Uh- ... picked up a couple of friends along the way, and, uh, and we like those friends. And so embedded within 420, or 462, uh, we have House Bill 1344, House Bill 1262, House Bill 1263, House Bill 1274.

18. 0:28:19

    Um, and, um, while I'm not an expert yet on those sections of the bill, I know that many of y'all are, so I'm happy to discuss any of the questions pertaining to the hospital billing portion.

19. 0:28:36

    We have a few questions. Uh, Representative Hawkins.

20. 0:28:43

    Me? Okay. Oh, thank you, Mr. Chairman. I'm particularly interested in your ambulance portion, as you know.

21. 0:28:49

    Oh, good. Thank you.

22. 0:28:50

    Yes.

23. 0:28:50

    I can speak to that part.

24. 0:28:51

    Yeah, yeah, yeah. Any, uh, I don't see any changes in, in that from your, uh, 4892, your original LC, or maybe a second LC. As passed from the Senate, your Senate version.

25. 0:29:05

    Yes, sir.

26. 0:29:06

    Are any changes in, in this that I'm not picking up?

27. 0:29:09

    No, sir. No, there's no changes.

28. 0:29:11

    Good. I like it.

29. 0:29:12

    Yes, sir.

30. 0:29:15

    Thank you, Mr. Chairman.

31. 0:29:15

    Yes. Um, Representative Scott.

32. 0:29:20

    Okay. Um, uh, thank you, uh, Mr., uh, Chairman. Um, can you give me the list of bills again and, um ... I mean, I know you said, um, about five or six bills embedded into this one bill. Uh-

33. 0:29:35

    Yeah, if you wanna, uh, grab a pen, I'll run through those again.

34. 0:29:39

    O- okay, yeah.

35. 0:29:40

    Um, so 1344, the insurance affordability bill, 1262 on monetary penalties- 1263 on premium tax look-back limitations and 1274 on auto insurance policy data and profits. I believe that covers everything, Chairman. Is that correct? Those are-

36. 0:30:02

    That is correct. Those are all bills that have been passed out of the House. They were part of our insurance package that's been sent to the Senate.

37. 0:30:11

    Representative Davis.

38. 0:30:13

    All of House bills. I'm sorry.

39. 0:30:16

    Yes, yes, all were House bills.

40. 0:30:18

    Senate bills don't get up to the thousands in number, so we, we don't, we're not as productive as y'all here.

41. 0:30:24

    Okay.

42. 0:30:25

    It dropped down.

43. 0:30:26

    Yes. Representative Davis, do you have a question?

44. 0:30:29

    I do.

45. 0:30:29

    Okay.

46. 0:30:29

    The answer is no.

47. 0:30:30

    Uh, all right, uh, Representative Reeves.

48. 0:30:34

    Senator Still, I wanna thank you for putting those, uh, Blue Ribbon Insurance Affordability Study Committee, uh, bill products, uh, in your, uh, good bill. Uh, one of the study committee meetings was in Gwinnett County. Uh, we had a lot, a lot of people there. Insurance affordability's, uh, just a big need, and then claims, uh, processing and risk mitigation, insurance fraud, uh, increase in fines on wrongdoing, uh, that hurts insurance customers, uh, getting uninsured motorists covered. A lot of good things that are gonna make insurance more affordable for Georgians.

49. 0:31:07

    I appreciate you putting them in your bill and helping out with that effort, 'cause, uh, we got over 9.1 million drivers in Georgia, and we all know the big numbers on homeowners also, so this is gonna help every Georgia driver, and family, and, and, uh, resident. So, uh, thank you for doing that. And, uh, uh, the intention, it was combining LC 52-1092S with LC 395092S, uh, into what's in front of us here, and appreciate you, uh, working on this, and getting this together, and keeping this moving this session.

50. 0:31:43

    Representative Davis.

51. 0:31:45

    Thank you, Chairman. Um, I wanted to just make it clear that I know that we added a number of bills here, and we probably agree as a, a board on these bills, but since we, a number of us are not sure what those, what is in those bills, um, if we vote no, a lot of it is not so much that we disagree, it's that we need to just have time to go and research and see what they are.

52. 0:32:14

    I, I believe that is entirely your prerogative and position to do so, Representative.

53. 0:32:19

    All right.

54. 0:32:19

    I just didn't wanna feel like-

55. 0:32:21

    I will take no offense whatsoever there.

56. 0:32:25

    Okay. Representative Reeves.

57. 0:32:29

    Thank you, Chairman Lumsden. Um, Senator Still, those four bills that passed out of, uh, subcommittee of this, uh, committee, as well as the full committee, and passed the House floor with about 170 votes, if there's any language we need to, um, add as we go through the process, uh, I take it you're willing to work with us on this. But the intention is to add those four bills that have already passed the House with 170 votes.

58. 0:32:52

    Those are your bills, Representative. The, this was, uh, not my quilt to stitch together. Uh, our, you and our very capable attorneys and legislative council did that for us. But, um, I'm just happy to be a team player and get it across the finish line.

59. 0:33:06

    Thank you so much. And, uh, I think, do we already have a motion, Mr... Okay.

60. 0:33:10

    I think-

61. 0:33:11

    I second that.

62. 0:33:11

    Representative Hawkins, has you make a motion? Yes. He makes a motion. Second. Second. So we have a motion and second. Uh, I, I will ask, is there anybody in the audience that needs to make any comments, would like to make a comment? If so, please.

63. 0:33:28

    We'll be brief, sir.

64. 0:33:28

    Be, be, be brief. Be brilliant. Be gone.

65. 0:33:33

    Yes. And yes, sir. My name is Joel Trusty with the Association of County Commissioners of Georgia, and I just wanted to personally thank Shawn Still for being a leader on this issue. This is gonna help our rural and smaller counties, and I'm sure the friends we've made along the way will be helpful as well. Thank you. Also, my boss is here. I'll be very brief.

66. 0:33:51

    Todd, Todd Edwards.

67. 0:33:52

    Todd Edwards with the Association of County Commissioners. And, uh, Representative Reeves, this is something we spoke about before. Uh, in for- 1344, there's a number of provisions that counties are asked to report on, uh, through fire safety initiative, property damages, et cetera. Under current state law, counties are limited to how they, uh, spend their insurance premium tax revenues to four or five specific areas. They don't mesh with what we're going to ask, we're, we're being asked to report on. In fact, we're already submitting our, uh, counties are submitting a report on those issues that we're required to.

68. 0:34:24

    Should this bill, and I imagine it will, move forward, we'll continue to ask that, uh, we work on that language, and we'll be speaking that, uh, bright and early Monday morning on the Senate, uh, with 1344. But with that, the great bills, just wanted to point that out. It's duplicative. Put the counties between a rock and a hard place on how to comply with what's being proposed here and what's already in state law. Thank you for your consideration, Mr. Chairman, members of the committee.

69. 0:34:47

    All right. Thank you. Representative, excuse me, 17. Huguley. Okay. Go ahead.

70. 0:34:54

    Thank you, Mr. Chairman. So are you suggesting that, uh, HB1344 be removed from this package? Is that, is that what you're asking us to do?

71. 0:35:04

    I would like to see the language, I mean, but for a specific, remove the language within the bill that requires counties to report on, uh, if it's still in there, demonstrating how funds were used to promote homeowner and private passenger automobile premium insurance through safety initiatives, property damage. That's it. We're in agreement entirely with the other part of the bill. I ask this because we're already required to do a report, counties are, on how insurance premium taxes are spent, and we're limited on how they could be spent. So they're in conflict with what's being asked in this bill.

72. 0:35:37

    Can you point to the line that you're talking about?

73. 0:35:40

    I have not, I have not seen this up, ma'am.

74. 0:35:41

    Okay.

75. 0:35:41

    I apologize.

76. 0:35:43

    All right. Uh, okay, we have a, um, yes sir.

77. 0:35:48

    Thank you.

78. 0:35:49

    Questions? Representative Gambill.

79. 0:35:54

    Chairman, I know this, uh, we're asking audience questions. I did have one question that I don't know if you want me to ask you or ask the bill sponsor, and I can wait till you tell me-

80. 0:36:02

    Okay

81. 0:36:02

    ... if it's appropriate.

82. 0:36:03

    Go ahead and ask the question. We'll see.

83. 0:36:04

    Uh, just a clarification. Is the effective date of the ambulance part still January 1, or has that changed?

84. 0:36:11

    It's January 1, '27.

85. 0:36:12

    Okay. Thank you.

86. 0:36:13

    Mr. Mayne. Thank you. And Representative Reeves.

87. 0:36:18

    Thank you, Mr. Chairman. Uh, Mr. Edwards, if, if you'll provide some language, we're glad to work with you. I know cities and counties have some different, uh, premium tax, uh-

88. 0:36:27

    Sure

89. 0:36:28

    ... um, restrictions. But with a billion dollars out there in premium tax revenue annually, what we were just trying to do is make sure that filters down to the residents to make sure they're getting some benefit.

90. 0:36:40

    Sure.

91. 0:36:40

    And, and, uh, we'll work with y'all on that.

92. 0:36:43

    Yeah. And county-

93. 0:36:43

    And it's not-

94. 0:36:44

    Yeah

95. 0:36:44

    ... it's not taking the money away, but it's just ensuring that there are initiatives to make sure that premiums are gonna go down due to that money. For instance, public safety, uninsured motorist enforcement, things like that. We're glad to work with you on any, uh, requests y'all have on the language.

96. 0:36:58

    And you're absolutely right. However, it's the counties that have the restrictions, both on what we can spend it on, and we have to report. Uh, we've got a two-sentence amendment, uh, we'll be offering. I'd like to run it by you later just to try to mesh them. So, I mean, we're up talk about tr- reducing bureaucracy. Uh, the duplicative reports and noncompliance are certainly considerations in that regard, Representative.

97. 0:37:21

    All right. We have no further comments. Do we have, uh... We have a motion and a second. Anyth- anything further from the committee? Okay. I see none. Uh, all in favor say aye. Aye. All opposed like sign. All right. The ayes have it. That bill passes. All right. Uh, you also have another bill with us, I believe, Senate Bill 230.

98. 0:37:47

    I do. Thank you, Chairman. Um-

99. 0:37:49

    Let's make sure we have the right one sitting right here

100. 0:37:52

     ... LC521095S. 230.

101. 0:37:56

     LC521095S. All right. Go ahead, sir.

102. 0:38:01

     Yes, sir. Uh, this is another one that has changed a little bit since the, uh, the Senate passed version. Um, so we'll speak to the original SB 230, which begins, um, on page seven. So section six is the original bill. Um, sections one through five are, uh, also a, uh, an amended House bill that has been added to it. So I'll speak to the original 230, which the pertinent information here is really focused on lines 161 through 171, so on the very, uh, last page of the bill.

103. 0:38:40

     Um,

104. 0:38:43

     for many, many years, uh, the deductible cap on the master policy for condominiums was capped at 5,000. That was really preventing, um, the management master policy to be able to shop competitive rates because of such a low deductible. So they've asked... And originally the bill started as removing the cap, but we put a cap of 25,000 in rather than no cap at all, at, um, at 25,000. So that's, uh, discussed on line 162.

105. 0:39:14

     And then we also, um, through the committee process, and, um, things that we find very important is to be able to put clarifying language, uh, on notification. So, um, if there is a change in the master policy deductible, that's discussed in lines 166 through 171. I apologize. I do not have the, um, House bill numbers that comprise sections one, two, three, four, and five. Uh, hoping the chair can, uh, share that.

106. 0:39:48

     Representative Reeves, I believe, has that information.

107. 0:39:51

     And Senator Still, thank you for working with us on that. It's House Bill 1042. Um, this is judicial security. We've had, uh, some legislation on this. However, since Sandy Die last year, there was a judge in Indiana, Judge Meyer, who got, uh, shot through his door and window. His wife got shot also. There was a defendant up for a violent crime. He enlisted accomplices. They found the judge's home address through, uh, public records. They went out and shot the judge and his wife and damaged their house and all that. Uh, 1042 make sure that doesn't happen in Georgia by enacting some confidentiality of judicial addresses to protect our judges, uh, and to mitigate insurance claims in doing so, and also it deals with title insurance and things like that.

108. 0:40:35

     It's been carefully, uh, vetted on the House, uh, through House Bill 1042. We appreciate you adding on to this Title 44 bill.

109. 0:40:42

     Great.

110. 0:40:45

     My friend from Gwinnett. Thank you.

111. 0:40:48

     Uh, thank you, Mr. Chairman. Uh, Rep, Senator, um, I wanna talk about your section for a moment.

112. 0:40:53

     Oh, thank you.

113. 0:40:54

     Um-

114. 0:40:54

     Yes, that would be wonderful

115. 0:40:55

     ... so you chose the $25,000 limit. Was that, it, was that level chosen because that's a sweet spot in terms of-

116. 0:41:09

     It is

117. 0:41:10

     ... premium rates?

118. 0:41:11

     It, it, it just allows the... It's just like a health plan. You know, you think about when, you know, you're shopping for insurance for your, for your company. If you have a slightly higher deductible, you can get a lower monthly rate on that. And so the 25,000 was really the sweet spot that the industry found and, and believed that that was something that would hold them, um, for the, you know, the, the foreseeable future until probably a, a different, uh, set of legislators will be taking up, you know, a conversation on that. But it had been over 20 years since they'd raised the cap on that.

119. 0:41:43

     I understand. I always get a little leery when we put dollar amounts in legislation because as soon as we put it in, it's probably obsolete, uh, the next year. Uh, the other question I have for you is can you, uh, go over for us- What happens when, uh, we have the deductible, the unit owners, um, are gonna all have to participate in this. So is it, is it that each unit owner's, um-

120. 0:42:18

     This is master policy

121. 0:42:18

     ... fees are gonna... Right, I understand. And on the master policy, the $25,000 deductible, that's for the structure itself. Um, so how will the... You're gonna notify the unit owners, I see, in this legislation, but is there any other responsibility or any other thing that unit owners will face, uh, other than what they're already having to do now?

122. 0:42:42

     We have an expert from the industry who I think can speak to the, the deep nuance of that, and I think give you maybe a little more information than you want. But he'll, he has a great narrative to explain that if, if the Chair would be so kind to allow him to speak to that.

123. 0:42:57

     Be glad to. Um, let's see. Podium. Maybe. If you would, give us your name and tell us who you're with and-

124. 0:43:05

     Yes

125. 0:43:06

     ... your comments.

126. 0:43:06

     Uh, my name is Sean Rucker. I am, uh, a broker for a large management company, a property management company here in Georgia. I'm also an insurance agent. Um, we, um, we're, we are concerned about homeowners and what they're able to pay. Uh, but many and most homeowners have an HO6 policy, which is for condominiums-

127. 0:43:29

     Mm-hmm

128. 0:43:29

     ... which covers this deductible already. So this would be under coverage A, and, uh, the, the dwelling coverage. So raising it from 5,000 to 25,000, um, most of these policies, a, a large majority of them, already have this coverage in place. So we're not seeing any, uh, increase in their premium, uh, for that, for that amount of money. Does that answer your question?

129. 0:43:59

     Yeah.

130. 0:44:00

     Okay.

131. 0:44:02

     All right. Representative Davis.

132. 0:44:06

     Thank you, Chairman. I looked at this bill, and I t- was thinking that we had something similar to this in prior years in which we were gonna go from 5,000 deductible to 10,000 deductible. But now I see that we're going all the way to 25,000 deductible. But at that time, I think I objected because I said a number of your unit owners could not obtain information about the insurance, so I see that you have that in this bill, right?

133. 0:44:43

     Yes, ma'am.

134. 0:44:44

     Yes. My question now is dealing with special assessments. Uh, we have a number of unit owners that are totally, totally, uh, having a problem with these special assessments because the management companies or some people that are not following the law per se are using special assessments as a method of taking over or putting people in court so that they can foreclose on their homes.

135. 0:45:17

     Can you explain to me how we can... There's some, are there some safeguards in this when it comes to your special assessments?

136. 0:45:28

     The special assessments would be a totally different area from this, uh, legislation. Uh, this addresses the deductible for a master policy and does not include anything about a special assessment. That's a different area of the, of the, uh, condo act.

137. 0:45:46

     But I, I thought that within this legis- Follow-ups?

138. 0:45:50

     Yes.

139. 0:45:51

     I thought that within this legislation that they can do the special assessment and not necessarily have to go back to the unit owners.

140. 0:46:02

     No, the special assessment has nothing to do with this. This is not part of that. This is just insurance deductible.

141. 0:46:11

     Thank you.

142. 0:46:11

     All right. All right. Um, any other questions from members of the committee? Is there anyone in the public that needs to make a comment regarding this one? All right. Seeing none, uh, time for a motion. Uh, just have a motion-

143. 0:46:31

     So moved

144. 0:46:32

     ... to pass. We have a second. All in favor say aye.

145. 0:46:36

     Aye.

146. 0:46:36

     All opposed like sign. All right. So noted. Thank you. The bill passes.

147. 0:46:41

     Thank you, Chairman, Committee.

148. 0:46:44

     Thank you.

149. 0:46:44

     I've got, uh, three of your bills on the floor today. It's gonna be a busy day in the Senate. I'm glad we can finally get some, some motion on that. So, uh, uh, we do have, um, Pro Tem Jones' final bill, uh, in the Senate today. So if you have an opportunity, just maybe tune in on that. Um, I'll try to get word out when it's, when it's out. But we are, uh... I know she's not in the room, but she has been such a champion and a friend, and I'm, I'm honored to be the, uh, the carrier on her, uh, her final one today.

150. 0:47:15

     So thanks y'all.

151. 0:47:16

     Thank you. Uh, Representative Reeves.

152. 0:47:19

     Thank you, Mr. Chair. Um, Senator Still, if you could wait just a minute. We've gotten some language from ACCG that, uh, we're gonna have in just a minute to clean that issue up.

153. 0:47:28

     Sure.

154. 0:47:28

     Uh, and, and I'll move to reconsider it, uh, to add that language. It's about three lines. They're getting copies made right now.

155. 0:47:35

     All right. Okay. We will stand at ease then. Well, yes, we'll stand at ease.

156. 0:51:38

     All right. We have,

157. 0:51:44

     we have some, um, an amendment before us. Um-

158. 0:51:49

     You won't make a motion to reconsider.

159. 0:51:51

     Thank you.

160. 0:51:51

     Just a moment. Um-

161. 0:51:55

     We had a question from Representative Hugley, and I think Representative Reeves could best ask that. Um, let's see, 17. Do you want to r- address that question to him that you asked me earlier?

162. 0:52:11

     Uh, I was just asking about the bills that were included.

163. 0:52:13

     Right. That's what, that's what I said. He could probably address that for you because we worked on these trying to get them together.

164. 0:52:19

     I thought we were going back to the-

165. 0:52:19

     Okay

166. 0:52:20

     ... one we were at ease on.

167. 0:52:22

     We are. I'd, I just, I just, just gonna, I was just gonna let you answer that question before we got started down that path.

168. 0:52:27

     Legislative Council took care of it.

169. 0:52:28

     Took care of it. Okay, great. Thank you. Uh.

170. 0:52:35

     All right.

171. 0:52:39

     Representative Reeves, let's see, that's the table mic. Okay. Go ahead.

172. 0:52:43

     Thank you, Chairman Lumsden. I would like to request the committee to reconsider 462 to add language about the, the, uh, premium tax, uh, reporting and guardrails for the local governments, uh, to add this language requested by, uh, ACCG, uh, that is before you. Um, i- it's about five lines. It's alternative language. And, uh, uh, we would just like to have something in there about reporting and guardrails, and I think this is, uh, sufficient.

173. 0:53:11

     Okay. We have a request to reconsider.

174. 0:53:16

     Yeah. Where are we in the bill? I mean, this, this doesn't line up with my-

175. 0:53:20

     Page 10

176. 0:53:20

     ... 1344.

177. 0:53:21

     Uh, I, uh, this was the original 1344. Uh, Ms. Crittenden, uh, can find the applicable portion in the new substitute.

178. 0:53:30

     Yeah, that's okay.

179. 0:53:31

     Um-

180. 0:53:31

     You did what?

181. 0:53:32

     Yes.

182. 0:53:33

     Okay.

183. 0:53:33

     Yes. Thank you. And this-

184. 0:53:34

     It just had 231 in this one.

185. 0:53:36

     This will modify the applicable portion about the, uh, premium tax reporting and, uh-

186. 0:53:42

     For the ACCG?

187. 0:53:43

     That's right, for local governments.

188. 0:53:45

     Okay.

189. 0:53:47

     Okay. And-

190. 0:53:50

     Second the motion to reconsider.

191. 0:53:51

     Representative DeLoach.

192. 0:53:53

     Mr. Chairman, this time I'd like to move that this committee reconsider its action on the do pass motion on Senate Bill 462.

193. 0:54:03

     Second.

194. 0:54:03

     We, we have a motion and a second. All in favor say, "Aye."

195. 0:54:07

     Aye.

196. 0:54:07

     All right. We are now in the posture of reconsidering. Would you explain the, um, amendment?

197. 0:54:13

     Thank you, Chairman Lumsden. Uh, request for, uh, this language to be added in the premium tax reporting and r- restrictions portion of the bill. On or before January 1st, 2027, and annually thereafter, any county or municipal corporation receiving allocated taxes collected pursuant to this code section shall file with the commissioner an annual report on a form prescribed by the commissioner demonstrating how funds were expended for purposes authorized by law, or a copy of the budget report required of counties pursuant to Code Section 38-8-8.3.

198. 0:54:48

     This would add that language, uh, for the, uh, portion, uh, relating to counties and municipal corporations.

199. 0:54:56

     Do we need another do pass motion?

200. 0:54:57

     All right. You have, um, heard the, um, amendment. Are there any questions? Any comments?

201. 0:55:07

     Do we need to have a do pass motion before we consider the amendment?

202. 0:55:11

     Do pass.

203. 0:55:11

     Do pass as amended. All right, since we are reconsidering it, we need a motion and a second on the bill before we can consider the amendment. So do I have a motion?

204. 0:55:35

     I move do pass on Senate Bill 462.

205. 0:55:38

     All right. Do I have a second? Motion and a second. All in favor say, "Aye."

206. 0:55:42

     Aye.

207. 0:55:43

     What? Say again?

208. 0:55:45

     Not yet. Not yet?

209. 0:55:47

     Let's do the amendment.

210. 0:55:48

     Okay, now the a- I thought you were saying we needed to pass the ... Okay. Now we're open for the amendment. Okay. All right. And you've, you've just given us the amendment. You've explained the amendment, correct?

211. 0:55:58

     Yes.

212. 0:55:58

     All right. Representative Hugley.

213. 0:56:01

     So, Mr. Chairman, um, according to legislative council, I want to make sure we're all together. We're on section eight, and in this bill, we, we would be replacing lines 394. Is that what we're doing?

214. 0:56:17

     Yeah.

215. 0:56:17

     Line 394 is where this will start, 'cause this is a new section F. And section F is found on page 16, line 394, and that's what we're replacing. So that we'd all be together as we consider this.

216. 0:56:33

     Appreciate you finding that reference. Thank you.

217. 0:56:35

     That is correct, and we appreciate that. Thank you.

218. 0:56:42

     All right.

219. 0:56:43

     Mr. Chairman, we do pass on the amendment.

220. 0:56:45

     Second.

221. 0:56:45

     No problem.

222. 0:56:46

     We have a n- motion of do pass on the amendment and a second. All in favor say, "Aye."

223. 0:56:51

     Aye.

224. 0:56:52

     All opposed like sign. Very good. So the amendment passes.

225. 0:56:56

     Yeah.

226. 0:56:56

     Now we need to pass the full ... Now we need a motion on the full bill as amended. We have a motion.

227. 0:57:04

     Second.

228. 0:57:04

     Second. All in favor?

229. 0:57:05

     Aye.

230. 0:57:06

     All opposed like sign. Okay. All right. Now we're through that. Passes, thank you. All right, we have one more bill on the agenda today. Um-

231. 0:57:20

     I think we have to do one

232. 0:57:21

     ... Senate Bill 503. Uh, Senator Harpen, if you would please.

233. 0:57:32

     Come to the mic.

234. 0:57:37

     Mr. Chairman, I appreciate the, uh, 8:00 timeframe. That, uh, that was very appreciated.

235. 0:57:40

     Uh, better than, better than 6:00. Better than 6:00. Yes.

236. 0:57:43

     I will not argue with you on that, sir.

237. 0:57:44

     All right.

238. 0:57:45

     Thank you very much. We're, we're gonna be working on SB 503 LC481445S. It's interesting is that ... Nope.

239. 0:58:06

     LC 445S.

240. 0:58:13

     Need a bi-

241. 0:58:23

     There's a committee sub.

242. 0:58:25

     Yes, sir.

243. 0:58:26

     Okay. Y'all have added some things to this.

244. 0:58:30

     Uh, yes, sir. I thought you were aware, but, uh, your-

245. 0:58:33

     Give, give me about an hour to read through. Okay

246. 0:58:35

     ... your basic underlying bill is somewhere-

247. 0:58:37

     It's somewhere in there?

248. 0:58:38

     It is, it is in there.

249. 0:58:39

     Okay.

250. 0:58:39

     So if you explain your basic underlying bill, we will, uh, go from there.

251. 0:58:43

     Y'all will figure out the rest of it.

252. 0:58:44

     We will go from there.

253. 0:58:45

     Okay.

254. 0:58:46

     All right.

255. 0:58:47

     All right. That's a little bit of a...

256. 0:58:49

     Maybe before we get started, Representative Reeves, you had comments.

257. 0:58:52

     Ah, he's-

258. 0:58:53

     Thank you, Chairman Lumsden. Uh, what we have done, Chairman Harbin, is the same thing we did to that other bill. We've added 1344, 1274, 1262, 1263. Uh, we would like to add that amendment that we just did as an additional amendment, uh, the ACCG amendment. But we are just keeping those insurance affordability bills moving in the session. We've added it to your bill. We did not intend to, uh-

259. 0:59:21

     Okay

260. 0:59:21

     ... take your bill out or otherwise amend your bill. So your, your bill's in there-

261. 0:59:25

     So you, you've added those four bills on here?

262. 0:59:27

     That's right. That's right.

263. 0:59:29

     A- and you're doing it on all the bills that you're passing through Insurance?

264. 0:59:32

     Well, two of the three this week.

265. 0:59:33

     Two of the three, okay.

266. 0:59:34

     Yes, sir.

267. 0:59:34

     Just wondered, okay. Okay.

268. 0:59:37

     All right, sir.

269. 0:59:37

     Surpri-

270. 0:59:38

     Go ahead.

271. 0:59:38

     Surprise billing is one thing. This is surprise legislation. But okay. You know.

272. 0:59:45

     Feels like 6.

273. 0:59:46

     Nah.

274. 0:59:47

     It's, uh-

275. 0:59:48

     It's, it's fun

276. 0:59:49

     ... we, uh- We passed this about a month ago, and, uh, gas, gas taxes and insurance affordability, that's at the top of the list.

277. 0:59:57

     Is the gas tax in here too?

278. 0:59:58

     No.

279. 0:59:58

     Okay.

280. 0:59:58

     I think y'all did that yesterday.

281. 1:00:00

     Okay.

282. 1:00:00

     And we appreciate it, but-

283. 1:00:01

     Okay, I was wondering

284. 1:00:01

     ... this is keeping the insurance affordability moving and, uh- ... uh, we kept yours in there. And, uh, glad to consider yours, but we added those four, um, insurance affordability House measures in there.

285. 1:00:13

     Okay. Okay. Well, I was gonna say this is a simple bill, only three pages, but I will forget that. This-

286. 1:00:20

     I think the crux of it is still a simple bill.

287. 1:00:21

     Still, it is a simple bill.

288. 1:00:22

     Please present your three pages, sir.

289. 1:00:24

     That's what's said of every bill that comes before the Senate, "This is a simple bill." But nevertheless, this is really kind of dealing with the changes that we are seeing really in across the board for insurance. Uh, can you imagine renting your house out to a loc- to a stranger, and that stranger you don't know, and you're, he's gonna come stay in your house? We're seeing also, even in the automobile, uh, arena, we're seeing where you can, uh, rent your car to someone. Uh, it's a real change of what's happening in our culture. Uh, I think it's good in a lot of ways, but for the insurance industry, when you rent your house out to someone that they don't know, you don't know, uh, that's a real change.

290. 1:01:01

     This is really dealing with the Airbnbs, and I want to introduce with me, um, Brad Nall. He represents the Airbnb industry, and this is kind of coming from them and what's going on. This is only dealing with property damage. It does not deal with liability. And here's what any... If you're in the insurance business, you know anytime you start businesses, the homeowner's policy is not really set up to deal with business. It has very, very, very limited coverage in that respect. And when you rent your house out, what's been the standard has been that you have a guarantee of damage, uh, from the vendor that you're using to transact business with, which is, could be for, I won't mention names, but there's various ones.

291. 1:01:47

     And they basically guarantee that if the tenant that's renting your home does damage, that they will do that. What this is doing is bringing in a backstop of insurance. There are 14 states that have already done this, and it puts not only their guarantee to do the repairs, but also an insurance policy behind that and requiring that of the vendor from that standpoint. That way, your own homeowner's policy more than likely is gonna exclude it because it's not contemplated unless you've set it up for a rental policy or to be rented.

292. 1:02:20

     And so what this is to do is to put a backstop behind their guarantee. Even though they may guarantee it, this says you're required to have an insurance policy on property damage only. And so that's really the, the crux of the bill. It's kind of helping where we're, we're seeing people rent cars and houses and everything else, and insurance just has not been set up so that the vendor that's doing the rental, if you will, is responsible, and this is making him have a, a backstop of insurance. Did I miss anything, sir?

293. 1:02:52

     No. That was a good summary.

294. 1:02:53

     Mm. I believe this is NCOIL model legislation also, is it not?

295. 1:02:57

     Correct. Correct.

296. 1:02:58

     Okay. Very good. Um, would you like to say some things?

297. 1:03:01

     Sure. Thank you, Mr. Chairman. Uh-

298. 1:03:02

     Introduce yourself.

299. 1:03:03

     My name is Brad Nall, uh, here on behalf of Airbnb. Uh, I'll just make two quick points if I can. Uh, one, this was an NCOIL, uh, model legislation. We're proud that the model received bipartisan support there. It's received bipartisan support here. Um, here as well as there, we've solicited the input of the insurance industry regulators and tried to incorporate all that into the bill. So we, we think we have a good final product for your consideration. And then the second point is that, uh, these guarantees are important for our hosts, who are the property owners who agree to rent out their properties.

300. 1:03:35

     Uh, under the rental contract, if the guest or the renter causes damage to the host's property, the guest has to pay that damage, and most of the time that's what happens. But sometimes, uh, the renter does not live up to his or her obligation, and it's important for the host to have peace of mind that in those situations, Airbnb, in our case, will step in and compensate them for their damages under this guarantee, and then Airbnb can decide whether to continue to go after the renter to pay those damages.

301. 1:04:07

     Um, it prevents the host from having to chase down the renter themselves, prevents the host from having to make a homeowner's claim under their homeowner's policy when that really shouldn't be necessary. So we, we appreciate this, uh, and, and, we ask your support.

302. 1:04:22

     All right. We have some questions. Representative Huguley.

303. 1:04:27

     Mr. Chairman, I was gonna ask him to walk through, uh, this process, but who is paying for this? Is, is there gonna be any, uh, additional cost to the host or any additional cost to the person who, uh, signs up to rent the, our Airbnb for a weekend or whatever?

304. 1:04:49

     It would be-

305. 1:04:49

     Who, who pays?

306. 1:04:50

     Yeah, the vendor would be, if it's Airbnb that you're going through-

307. 1:04:53

     Mm-hmm

308. 1:04:53

     ... that's a cost that they are assuming. They're already do- doing it in a guarantee in their written contract.

309. 1:05:00

     Mm-hmm.

310. 1:05:00

     And what this does is it puts a backstop that if they fail in th- their backing up their damages, there's an insurance policy to back up their guarantee.

311. 1:05:12

     So who's, who's gonna pay for that?

312. 1:05:14

     That would be whoever the vendor is that's renting the house for the owner, whoever that would be, that's who would end up paying that cost.

313. 1:05:23

     If I m-

314. 1:05:23

     Yeah

315. 1:05:23

     ... Mr. Chairman.

316. 1:05:24

     Sure.

317. 1:05:24

     I can tell you that we actually do this guarantee today.

318. 1:05:27

     Mm-hmm.

319. 1:05:27

     And it's not an additional cost. We, it's just factored into the overall costs.

320. 1:05:31

     Okay.

321. 1:05:33

     All right.

322. 1:05:33

     Representative Scott.

323. 1:05:35

     Okay, good morning.

324. 1:05:36

     Good morning.

325. 1:05:36

     Thank you all for being here this morning. Um, what state agencies is responsible for enforcing compliance and, and addressing the consumer complaints under this new framework that you all have here?

326. 1:05:50

     This would really be the insurance commissioner-

327. 1:05:52

     The insurance company

328. 1:05:52

     ... from that standpoint.

329. 1:05:53

     The insurance commissioner.

330. 1:05:53

     Yeah, and any kind of complaints would go through him.

331. 1:05:58

     Okay.

332. 1:05:58

     Okay.

333. 1:05:59

     Representative Davis.

334. 1:06:01

     Thank you, Chairman. Um, there's a number of us, well, not a number, a few of us that's on this board that really are not in the industry of insurance, so we're trying to better understand, and we're coming from the point of view as a consumer. Can you, um, how does the bill ensure that consumers clearly understand the difference between the marketplace guarantee and a licensed insurance policy?

335. 1:06:32

     When they have a, a, a rental agreement that is given to them, that rental agreement's going to state the guarantee, and that's what's going on right now. What is not there has been that there is insurance as well to back up the guarantee. Um, and that's what's, what's happening here. So say, for instance, if you wanted to rent your house out, and this is something that's done pretty big in Georgia. If you take the Augusta Nationals, for instance-

336. 1:06:56

     Mm-hmm

337. 1:06:56

     ... people rent out their houses, and they are nice houses. And what this would do if that was handled through a vendor like Airbnb, they would have a contract where they would outline who's responsible for what. It would have a guarantee. But now we're adding to that a insurance policy guarantee as well. So it's really for the consumer. This is helping the consumer.

338. 1:07:17

     A follow-up quick.

339. 1:07:18

     Yeah.

340. 1:07:18

     Uh, uh, guarantees, this is a new type of insu- well, it's not considered insurance.

341. 1:07:25

     Yeah.

342. 1:07:25

     But is it, does it fall up under the insurance commissioner like you said?

343. 1:07:31

     The guarantee, I, I think w- I think that would ultimately go under the consu- the consumer side. I'm thinking from his, it's gonna go to the insurance a- agency or insurance commissioner.

344. 1:07:41

     It's, it's, uh, very, it's analogous to, uh, warranties to other types of non-insurance, uh, uh, products that are out there that companies offer you. And, uh, it's not unusual for that to be overseen by the insurance commissioner.

345. 1:07:57

     So it doesn't really fall under any real enforcement?

346. 1:08:01

     They have, they have full authority to promulgate regulations on this and to investigate any violations.

347. 1:08:08

     Representative DeLoach.

348. 1:08:11

     Good morning. Thank you for being here.

349. 1:08:13

     Morning.

350. 1:08:14

     My question has to do with the availability of this coverage. I have no doubt somebody like Airbnb would be able to talk to your insurer, and if they need to manuscript a contract or get a new contract, uh, 'cause that's prob- that's, it's probably not a standard boilerplate right now for this kind of coverage. Would you agree with that?

351. 1:08:35

     There are markets that are developed for this because this has become a major industry, if you will, will. Um, just like if you, you use, let's say, um, Uber as an example for the auto side, they have an insurance policy in place that when you ride in an Uber, you have an insurance policy that we're required to, that the s- State of Georgia required them. So the markets are a- adapting. Like I said, the markets have had to adapt when you look at the industries that are opening up. So I mean, it's available from that standpoint.

352. 1:09:07

     What this is doing is, I, a- and this is my guess from NCOR, is that there have been smaller companies maybe who didn't live up to their warranty, and that's why they're wanting the insurance policy to back up their guarantee or their warranty, if you will, for the homeowner.

353. 1:09:22

     M- may I follow up, Mr. Chairman?

354. 1:09:23

     Yes.

355. 1:09:24

     So it's no problem for Airbnb, but I would assume that that would, that might help us all, including the consumer, in setting up some higher standard for smaller companies to enter because they might not be able to purchase this insurance. And I'm not saying it's a bad thing to keep them out. If they're not financially stable enough to, in, in, in order to do that, they probably don't need to be in anyway. But, but would you agree, the gentleman from Airbnb, if that might be the case?

356. 1:09:59

     Uh, I, and, uh, right now this is a, it's a reimbursement insurance policy, and it's pretty much off the shelf. It's, it's-

357. 1:10:05

     Yeah

358. 1:10:05

     ... not too difficult.

359. 1:10:06

     Thank you.

360. 1:10:09

     All right. I see no other questions. Any comments? All right. I guess we're at the point of taking a motion.

361. 1:10:19

     Motion to pass.

362. 1:10:20

     We have a motion to do pass and a second.

363. 1:10:25

     Rep- representative.

364. 1:10:26

     Mr. Chair, I would like to add the ACC's, uh, amendment to line 381.

365. 1:10:32

     All right.

366. 1:10:35

     Second that motion. That's a motion.

367. 1:10:37

     We have a motion and second to add that to the existing language. All in favor say aye.

368. 1:10:43

     Aye.

369. 1:10:43

     All right. All right. Uh, we have a motion to, um, pass as amended.

370. 1:10:51

     Motion.

371. 1:10:52

     Second? We have second. Motion and second. All in favor say aye.

372. 1:10:56

     Aye.

373. 1:10:57

     Very good. Thank you, sir. I believe we're done here.

374. 1:11:00

     Thank you.

375. 1:11:01

     No, uh, uh-

376. 1:11:01

     I'll have fun reading my bill.

377. 1:11:04

     What we vote for

378. 1:11:05

     That's what we just did.

379. 1:11:07

     I was gonna talk

380. 1:11:08

     Oh, oh, I'm sorry. I'm sorry. Okay, gotcha. So, so noted. Okay. Bye.

381. 1:11:13

     All right. Thank you, sir.

382. 1:11:16

     Get it out of the

383. 1:11:35

     way.