Subcommittee approves HB 504 to regulate optional vehicle value protection plans

The Regulatory Subcommittee of Regulated Industries approved a committee substitute for House Bill 504 on the subject of optional vehicle value protection agreements, the panel announced at the start of its session.

Chairman Monahan, who presented the bill to the subcommittee, said the substitute tightens consumer protections by strengthening disclosure requirements, adding a cancellation window, requiring ‘‘real financial backing’’ so claims are paid, and giving ‘‘the office of consumer protections’’ enforcement authority. He described the products covered as optional, not mandatory, for consumers.

Industry witnesses said they support the framework. Travis Moore, general counsel for the Guaranteed Asset Protection Alliance, described HB 504 as an expansion of model legislation GAAPA developed and said Georgia previously adopted GAAPA’s model for guaranteed asset protection more than a decade ago. "This legislation ... reflects that model," Moore said, and offered to answer questions from committee members. Crystal Bullard, representing Shortfall Cover, said her company provides these products to credit unions, banks and dealerships in other states and would like to offer them in Georgia under HB 504’s definition.

Committee members reported that a prior concern from one member had been addressed by the changes in the substitute and indicated no remaining objections at the subcommittee level. Committee members asked no substantive questions during the subcommittee hearing; one member said they expect additional questions if the bill reaches the full committee.

A motion to pass the bill as a committee substitute was made, seconded and approved by voice vote; the transcript records only a voice affirmation and the chair’s announcement that the motion passed, with no roll-call or recorded vote tallies.

The transcript refers to minor text changes ‘‘on lines 50–52’’ of the substitute but does not provide the substituted text in the hearing record. The transcript also refers to an enforcement entity as ‘‘the office of consumer protections’’ without specifying a statutory office name or citation.

What happens next: the subcommittee approved the committee substitute, and members said they anticipate further consideration at the full committee where additional questions may be asked. The transcript does not specify a date for further consideration or the full committee’s scheduled action.