(The Center Square) – National groups are backing Gov. Brian Kemp’s tort reform package as the bill continues to move through the House of Representatives.
Senate Bill 68 would limit some liability awards and protect businesses from lawsuits for acts outside of their control. The goal, according to the bill’s backers, is to ease high insurance premiums blamed on high jury awards in civil cases.
Four hearings, two longer than four hours, have taken place in a special rules subcommittee since the bill passed the Senate in February and moved to the House. Many of those testifying opposed the bill said the bill had nothing to do with insurance premiums.
“It obviously has everything, everything to do with insurance premiums and we know that because the intent behind the bill was said to lower insurance premiums for everyday Georgians,” said former Georgia state representative Matthew Wilson at a House hearing held this week.
Wilson also challenged whether or not insurance companies are losing money.
“Please show us that somewhere because I can tell you that the Trial Lawyers Association, opponents of the bill, have been asking since the end of last session for proof that insurance companies are losing money.”
Georgia Insurance Commissioner John King told a Senate committee in February that some companies have reported losses. But King also said he couldn’t say when rates would decline if the bill passes.
“I don’t think you’ll see an immediate one year (reduction) because the companies are going to watch. This has a lagging effect,” King said. “I think it is going to be a slow decline but at least we can stop the rates from increasing at the rate that they’re increasing.”
Kemp has dug in his heels and threatened lawmakers with a special session if they don’t pass the bill before the Legislature ends on April 4. The state topped the list of “Judicial Hellholes” in a report from the American Tort Reform Association up until 2024, when it took fourth place.
Nuclear verdicts, identified as ones that are more than $10 million, cost Georgians a “tort tax” of $1,372.94 each year, according to the association, which quoted numbers from a Perryman Group study. The study also said 137,658 jobs were lost annually because of the high verdicts
The governor has some high-profile business groups supporting his package.
The National Federation of Independent Businesses is currently running a series of radio and digital ads backing Senate Bill 68.
“If you’ve been injured, you have a right to seek compensation, but some cases are filed simply because someone sees an opportunity to make money,” said Georgia NFIB director Hunter Loggins. “That results in higher costs for everyone. Insurance companies raise premiums on small businesses to cover the expense of baseless litigation, which drives up prices for hardworking Georgians.”
The U.S. Chamber of Commerce published an article supporting its passage on Tuesday.
“This comprehensive reform package is a win for Georgia’s business community, offering essential protections against frivolous lawsuits, inflated costs, and unfair legal practices,” the organization said in its article. “By supporting these changes, business owners can focus on growing their operations and serving their communities without the constant threat of being sued.”
The bill is currently in the House Rules Committee.
