On Monday, June 15, Georgia's General Assembly resumed the 2020 legislative session after it was suspended in March due to safety concerns over COVID-19. Legislators returned to the Capitol on Monday to pick up their work on the state budget and key pieces of legislation.

Georgians are reeling from the economic and health impacts of the ongoing COVID-19 crisis. This is not the first time Georgia legislators have been faced with making important policy decisions amid a crisis. Yet the COVID-19 emergency presents a unique opportunity to apply lessons learned from previous crises, particularly the 2008 recession, the effects of which lasted for a decade and are still felt in many Georgia communities today. For this reason, we believe it's essential that the legislature prioritize policies now to prevent a short-term emergency from becoming a long-term crisis for Georgians.

We're very excited about consumer protection bills the legislature has already taken up or passed since resuming the session this week. Read more below about strong consumer protections on the way for Georgians.

PROTECT GEORGIANS FROM SURPRISE MEDICAL BILLS

On June 17, 2020, the Georgia Senate unanimously approved House Bill 888, bringing Georgia one step away from ending burdensome surprise medical bills. In February, Senator Chuck Hufstetler (R – Rome) and Representative Lee Hawkins (R – Gainesville) introduced identical legislation aimed at eliminating balance or surprise billing for many health care services. Senate Bill 359 and House Bill 888, both known as the Surprise Billing Consumer Protection Act, aim to take patients out of the middle of billing disputes between providers and insurers. Before the session suspended, the bills received overwhelming support, both passing their respective chambers. With the passage of HB 888 in the Senate, the Act now heads to Governor Kemp’s desk for his signature. Click here to read the press release.

INCREASE THE STATE TOBACCO TAX TO GENERATE REVENUE

As a result of the COVID-19 pandemic, Georgia is facing an economic and fiscal crisis. The state is projecting a budget shortfall of $3 to $4 billion for fiscal year 2021. Currently, the legislature is considering significant budget cuts that could harm Georgians for years to come. We believe it is critical for the legislature to consider alternatives to budget cuts to programs Georgians will need to climb out of this economically unstable period. To generate additional revenue and avoid budget cuts that could slow economic recovery, the legislature should implement a higher tobacco tax that is in line with the rest of the country. Lifting Georgia’s tobacco tax from 37 cents per pack to the national average of $1.81 could generate $600 million in revenue per year.

STRENGTHEN CONSUMER PROTECTIONS AROUND SMALL-DOLLAR LOANS

On February 28, Senator John Kennedy (R - Macon) introduced Senate Bill 462. This bill continues previous efforts to shift regulatory authority of industrial loans, also known as small-dollar loans, from the Industrial Loan Commissioner to the Department of Banking and Finance. Before the session suspended, SB 462 passed the Senate. On June 17, the bill unanimously passed in the House Banks and Banking Committee. It is now heading to the House Rules Committee before moving on to the House Floor for a vote. We support SB 462, which strengthens consumer protections in Georgia by employing more robust licensing and reporting requirements for installment lenders. 

PROTECT GEORGIANS FROM PREDATORY CAR TITLE LOANS

On January 28, 2020, Senator Randy Robertson (R – Cataula) introduced a bill that calls “title pawns” what they are – loans that should be subject to Georgia’s usury laws. Senate Bill 329, known as the Motor Vehicle Title Loan Act, would close legal loopholes that currently allow car titles to be “pawned” at interest rates as high as 300%. On March 3, SB 329 passed out of the Senate Finance Committee and advanced to the Senate Rules Committee, where it remained until Crossover Day. We urge the legislature to take steps to protect Georgians from high-interest car title loans during this uncertain time when many Georgians are feeling more cash-strapped than ever before. To protect Georgians, the legislature should implement a 36% cap on all small-dollar loans, including car title loans.

You can keep up-to-date on all the bills we're following on our    Take Action page. To hear more about our current legislative priorities, click here to watch "A Speedy Recovery for Georgians: Legislative Priorities During COVID-19," a virtual discussion we hosted on June 10.

In the Fall of 2019, Liz Coyle wrote an article for the American Bar Association (ABA) titled " Income, Equality, and Consumer Protection," addressing the intersection of race and consumer protection. The article directly calls out the ways in which systemic racism underlies our consumer protection laws, perpetuating a longstanding system of inequality.

For nearly twenty years, Georgia Watch has tackled pressing consumer issues that disproportionately impact communities of color, particularly African-Americans, throughout the state. In 2018, we adopted a new strategic direction that explicitly rather than implicitly addresses racial injustices at the heart of these consumer issues. We recognized the urgent need to center racial justice in all our endeavors.

Now as we stand in solidarity with #BlackLivesMatter and the ongoing uprising, we are more determined than ever before to continue leading with racial justice and equity in all our efforts to ensure that all Georgians prosper and communities thrive.

Read the ABA article here...

© 2020. Published in The GP Solo, Vol. 37, No. 3, May/June 2020, by the American Bar Association. Reproduced with permission. All rights reserved. This information or any portion thereof may not be copied or disseminated in any form or by any means or stored in an electronic database or retrieval system without the express written consent of the American Bar Association or the copyright holder.

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