House Insurance & Commerce Committee Part 1
Video
Transcript
Bills discussed (4)
| Bill | Title | Sponsor | Status |
|---|---|---|---|
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SB938
· 3 mentions in chapter, transcript
Matched: “SB938”
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Pre-2017 bill | ||
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HB1920
· 2 mentions in chapter, transcript
Matched: “HB1920”
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Pre-2017 bill | ||
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HB2033
· 2 mentions in chapter, transcript
Matched: “HB2033”
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Pre-2017 bill | ||
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SB516
· 2 mentions in chapter, transcript
Matched: “SB516”
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Pre-2017 bill |
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- October 5, 2026
The trustees of Quorum, members and guests, please be seated. Representative Vines, you're recognized to present your amendment. Thank you, Mr. Chair and committee.
I appreciate the opportunity and the courtesy of coming
in this morning. This, again, is House Bill 2033. We had some further amendment in the Senate. We had several amendments, and the last amendment in the Senate kind of cleaned everything up
and got everybody comfortable, so without any further ado, I'd be happy to answer any questions, and I'd appreciate a good vote. Representative Green, you recognize. Motion at
the proper time, Mr. Chair. Anyone want to speak for or against
Speaker 5
0:49
amendment? You're recognized for your motion. Motion do pass on the amendment, Mr. Chairman. All
right. All in favor of the amendment being adopted, and that would be known by saying aye.
Aye. Congratulations. Thank you. Thank you for the privilege. I appreciate it. Thank you. Rep. Wood, you're recognized to present your
Speaker 8
1:17
bill. 938. 938. You're a failure. Yeah. Thank
Representative Jon Woods
Unverified
1:27
you, Mr. Chair. Committee members, this is Senate Bill 938 by Senator Teague.
And at this time, with the Chair's permission, I'd like to invite Derek Smith with Mitchell Williams Law Firm. They'll take any questions. Ms. Smith, you're
welcome to come to the table and recognize yourself, those who you
Derek Smith
Unverified
1:47
represent. Thank you, Mr. Chairman. My name is Derek Smith. I'm an attorney with the Mitchell Williams Law Firm here in Little Rock, Arkansas, and I represent
Representative Jon Woods
Unverified
1:56
Asurion Insurance Services. Okay. Just real quick, the bill finally will offer insurance coverage on electronic devices such as iPhones, iPads,
which, you know, there's just a high demand for that in the marketplace. And finally, in Arkansas, we're going to be able to do that, and that's what this bill will allow. So I'll be happy
to take any questions. Thank you. Okay. Representative Rand,
Speaker 20
2:24
you're recognized. Thank you, Mr. Chairman. And just one quick question. From my years in the cellular industry, can't you already buy insurance on a wireless device?
Derek Smith
Unverified
2:35
Typically what's available out there legally are service contracts or contracts that cover things like a defective device. A manufacturer can sell that without it being considered insurance. An insurance product that would cover damage to the phone, theft of the phone, and things like that, That's insurance. It has to be sold by an insurance producer. This bill allows, like in the rental car industry where you go to the counter and you can buy insurance over the rental car from the person behind the desk,
this bill sets up a similar framework so that anybody that's working in a store that sells a mobile electronic device, as long as that store is licensed to sell the product, they can market it. Okay. Thank
Speaker 26
3:23
you, Mr. Chair. Representative Kerr, do you recognize for a question? Thank you, Mr. Chairman. Which companies are going to be offering this coverage, and how can I sign up for them?
Derek Smith
Unverified
3:32
The insurance companies, you mean? Yes, sir. I'm not quite sure of
the insurance companies. I know that our client, Asurion Insurance Services, helps administer the product, and
in touch with them. That would be wonderful. Thank you, sir. Will do. Any further questions from
Speaker 5
3:57
the committee? Oh. No, don't. Professor Barnett, you're recognized. Okay. You're recognized for a motion. That's after you make it.
Speaker 37
4:11
I make a motion. Do pass. Okay. All right. Anybody in the audience want to speak?
before it gets the bill, okay. All in favor, let it be known by saying aye. Aye. Opposed? Congratulations, you passed your bill.
Representative Jon Woods
Unverified
4:45
And you also have an amendment, is that correct?
Speaker 43
4:50
Yes, sir. yes sir we have a resolution over there saying something about the turkish council and we put your name i put your name on it because you think they wanted your name is that okay i didn't ask your permission so i thought i better tell you yeah that's
Speaker 45
5:18
all right you you always do stuff without my permission
we haven't done it yet Thank you.
Speaker 51
6:05
it's number 19-20, yeah. Can we have an amendment, Reverend
Wilson? Motion for the amendment. Okay, motion
to adopt. Anybody want to speak against it?
All in favor, let it be
known by saying aye. Aye. Okay, motion
adopted. Okay. I mean, amendment adopted. You
Speaker 57
6:41
recognize the presidential bill as amended. Thank you, Chairman. House Bill 1920 just amends the, or it adds the term electronic check to the offenses of forgery and fraudulent use. take for example that chairman allen wanted to buy he was watching tv and wanted to buy a six
set cd of johnny cash or six cd set well he called and say he wanted me to pay for it well he could get my check and over the phone or over the internet he could just tell him my routing number and my check number just like he could if he had my credit card and it'd be on its way to his house. And so this just adds a term electronic check. Shame on
Speaker 58
7:28
Chairman Allen to do something like that.
Speaker 57
7:32
Yes, sir. So you can say it just adds an electronic check through there and it'll help our
Representative Buddy Lovell
Unverified
7:51
law enforcement. Any questions? Representative Lovell? Thank you, Mr. Chair. I know you reluctantly called on me
because of a comment earlier, but this is kind of a pun, I guess.
But why would you want to make it illegal for somebody to electronically credit your account or make a direct deposit to your account? What page is that
Speaker 61
8:17
on? That's your amendment. Oh, okay, okay. That's just
Representative Buddy Lovell
Unverified
8:20
the... I guess the point is, if somebody deposited $2,000 credit in my account, I wouldn't want them prosecuted. Don't press charges.
No more questions. Isn't there a possibility that people could be laundering money
Representative Buddy Lovell
Unverified
8:46
in your account, too? Yes. There is. Okay. That's your answer.
Speaker 68
8:54
last three days. All right. All right, is
Speaker 5
8:59
that a motion? What's the pleasure of the
committee? Okay. Is there anybody in the audience that want to speak for or against the bill?
We have a motion due pass. All in favor, let it be known by saying aye. Aye. Opposed? Congratulations. Representative Johnson, you passed your bill. Thank you, committee. Okay. Representative Landon, you're here to present the bill. You'll recognize to
Speaker 72
9:31
present your bill. Thank you, Mr. Chair, members of the committee.
Representative Greg Leding
Unverified
9:37
Before I begin, I'm going to allow the gentleman with me to introduce himself.
Speaker 75
9:41
I'm Mark Robertson here in Little Rock. I'm representing the Legislative Task Force on Sustainable Buildings. And you
all are going to present Senate Bill 516? Yes. Okay. Senate
Representative Greg Leding
Unverified
9:54
Bill 516 would allow the state, counties, or cities to use their authority to issue bonds to create PACE bonds. PACE stands for Property Assessed Clean Energy. These bonds could then be voluntarily, or homeowners could then voluntarily use funds generated by these bonds to invest in energy conservation improvements or to install clean and renewable energy options to power their property.
This loan is then repaid by an assessment added to the property tax of the applicant and paid back over time. I want to stress that the PACE is voluntary. This legislation would only allow state or county or any municipalities to use their authority to issue bonds. Any county or municipality or the state didn't want to do this, they don't have to. This is a voluntary program. And because these bonds are issued on the open market, it is completely revenue neutral. So it's voluntary, it's revenue neutral. It would also, perhaps most important, allow the state to help create jobs in one of the hardest-hit sectors,
the construction industry, because then you'd have people going out and installing solar panels and that kind of thing on homeowners' homes. So it's voluntary, it's revenue-neutral, and it could create jobs. I want to say that 23 other states have passed this type of legislation since 2007, including a number of our neighbors, Missouri, Oklahoma, Texas, and Louisiana. I suppose with that, we'll
Representative Jonathan Barnett
Unverified
11:17
take questions. Okay. Representative Barnett, you're next. So you're saying that there's going to be a lien and the assessor is going to put the lien on your assessment, on your property tax?
Speaker 79
11:31
That's how the loan will be repaid, but it is voluntary. If the homeowner doesn't
Representative Greg Leding
Unverified
11:35
want to participate in this program, then they are not affected at all. If I choose to participate and you're my neighbor, your property taxes don't go up. I am voluntarily agreeing to repay this loan through an increase in my property of tax. So if you do that and
Speaker 80
11:48
then you live there for two years and you decide you want to sell your
Representative Jonathan Barnett
Unverified
11:53
house, and you obviously have to disclose that, but that could hurt you as far as the sale is concerned, couldn't it? I mean, somebody might not want to buy your house because there's a loan on it.
Speaker 84
12:09
to clarify that. But the loan is attached to the property that is correct under this financing mechanism. What we found, though, is that this helps offset the pushback from homeowners of unable to get the immediate gains of energy efficiency improvements. This will allow for immediate benefit of those improvements. It also adds to the property value, and there is full disclosure. So an individual buying a home that had this property assessed clean energy bond attached
to it would know going in, and they would also know that, you know, if it was a 10-year loan, for example, I mean, there is a time frame as to what this loan would be paid back at, and say they bought it five years in, five years after they purchased the property as the second owner, that would go away, and then they'd get the full benefit of all the energy improvements that had been made on the home. So it actually improves the value of the home, and it allows for future homebuyers to know they're buying in improved efficiencies.
Speaker 83
13:09
If I were a bank and I had a loan, there was a
Representative Jonathan Barnett
Unverified
13:14
mortgage on that piece of property, and I was the bank that gave the mortgage, then the homeowner goes out and puts another lien on that through the assessor's office, and it goes two years and the person defuncts on their loan payment, and I'm the mortgage holder, it seems like to me I'd get stuck with that loan. I think this didn't just create a lot of problems.
Speaker 84
13:43
This has been adopted in 20-plus states. On this bill, it's a junior position on the lien, so it's secondary to the
Speaker 86
13:51
primary loan. So the primary loan would take precedence. Representative Viviano,
Chair
Unverified
14:05
you reckon I ask the question? Thank you, Mr. Chairman. I guess a
Representative Mark Biviano
Unverified
14:09
follow-up to Representative Barnett, when the property is transferred or sold,
would they not have to satisfy this lien by paying off the bond and that transaction? It stays.
Speaker 84
14:23
The bond attachment stays with the property, so it's just assumed by the second purchaser. And that's all
Representative Mark Biviano
Unverified
14:30
disclosed as part of the... I'm not 100% familiar with the banking laws and mortgage laws, but have you discussed that here in the state of Arkansas that
mortgage holders will actually allow that to occur without satisfying that lien?
Speaker 84
14:48
Pardon me. We've had discussions with some folks within the industry. The task force has looked at this for over a year, so we convened monthly and had a lot of folks in and out through the task force meetings. that brought testimony from other states and from different industries. Do I have a 100% signature from the
Speaker 86
15:06
banking industry? No, I couldn't say we did. I just
Representative Mark Biviano
Unverified
15:09
know they're adamant to make sure everything's clean. They get a clean title on taxes, insurance, whatever it needs to do on any types of liens on these things to make sure we're not putting somebody in a position here where it prevents them from selling their property if they need to.
Speaker 84
15:24
Well, under this legislation, there is a board that's set up to oversee the individual districts, and they'd be able to set up some of the specific criteria that their district would operate under. So we've left that flexible to be clarified. You mentioned
Representative Mark Biviano
Unverified
15:39
this has been adopted in several other states, and one of the justifications is job creation. Can you give me any examples of how this
Speaker 84
15:48
has helped create jobs in other states? Well, looking at this as a typical home, the first job that would be created is the need for an energy auditor to come in and do an assessment on the home that would look at the property, determine
where your deficiencies are, write your report, be able to determine what your potential savings would be if you did certain improvements. So there's one job. Currently, just looking at income-worthy homes alone, we've got 400,000 homes in Arkansas that qualify for income assistance on energy efficiency. We need in excess of 200 to 300 auditors, and we've got about a dozen in the state. So there's hundreds of jobs there just in an auditor's position. Then you need folks to go in and do the improvements. They need to be qualified and trained in energy efficiency improvements and renewable.
There's another two to three jobs. And then there's testing on the way out. And then there's a rollover all
Representative Mark Biviano
Unverified
16:40
the way through. Who employs those auditors? Pardon me? Who employs the auditors? They
Speaker 84
16:45
can either be in a small company or individual entrepreneurial. Those are private. MR. Private, yes. Okay. Okay. Thank
Speaker 26
16:59
you. All right. Thank you, Representative. Representative Rice, you're recognized for a question.
Representative Terry Rice
Unverified
17:04
MR. Thank you, Representative Leaning. It has been stated the loan attachment to the property assessment, and the word voluntary was used, I think, more than once, and that's the way it's set up right now. But one thing we've seen and I've drawn attention to in my short time is the fact that one session we set the process up or the framework up, and the next session or the one after that
they come back and it's not voluntary anymore. Are there any concerns been addressed to you about this? You mean that's
Representative Greg Leding
Unverified
17:48
coming back and making it a non-voluntary
Representative Terry Rice
Unverified
17:50
program? If this program's set up and it's working somewhat on a voluntary basis and it's said we want to expand this more and we want to put assessments on there and have everybody contribute, that could be done by the legislature, could it not? I suppose it could. I would not support that.
It poses concern. Thank you, Mr. Chairman. MR. Okay.
I need to make an announcement. There is a possibility that we will meet twice today upon recess or adjournment. So I have to make that note. MR. This is your notice. Okay. MR. Kerr, you recognize for a question? MR. They've answered my
Speaker 27
18:32
questions. Thank you. MR. Representative Wright, you
recognize for a question? Thank you, Mr. Chairman.
Representative Marshall Wright
Unverified
18:42
So Representative Lenin, in my reading of the bills, this is really no different than any type of secondary loan. Is that correct? That's my understanding. Okay. So a primary lender is still going to be protected, just like if I went out and got some sort of secondary loan to do a window replacement in my house. Is that correct? Correct. Okay. So the primary mortgage holder is going to
Representative Les "Skip" Carnine
Unverified
19:08
be free and clear. Is that correct? Correct. Thank you. Representative Carman. Thank you, Mr. Chair. In terms of this particular legislation, and I'm sure since you indicated that it's in several other states,
tell me about how the IRS has viewed this. In other words, most of the time when you make home improvements, has that. Are those deductible, and is the amount there deductible, or is it like when the city comes in and puts sidewalks in and you're able to pay the sidewalks back over a period of time, that is not an IRS deductible expense. So kind of tell me where we are with the IRS and how they're treating these particular improvements.
I'm actually unsure. Because I know that has become an issue, and since you mentioned the fact it had been in several other states, I wondered if you had had some – I mean, I'm pretty positive about this type of issue, So I'm not trying to speak against it as much as I'm trying to get it clarified of how are the homeowners going to be treated in this area. And that is a valid point. That hasn't come
Representative Greg Leding
Unverified
20:11
up in our conversations to date, but I can try to get that information. Well, we're in the last hour.
Representative Les "Skip" Carnine
Unverified
20:21
Yeah, well, and again, whether you vote for it or against it, I mean, that's something that's going to have to come, obviously, and be part of this to be sure we understand all the tax issues that go with
Speaker 84
20:37
this. If I could just add, I mean, that's certainly something that the homeowner could look into. I mean, since it is a voluntary opt-in program, if that's a concern of the individual taking the loan and that's a consideration, whether it's tax deductible or not, they'd have that option or opportunity to look at that,
make a personal evaluation, and then determine for themselves it's the right financing mechanism. It's just offering another tool. Well,
Representative Les "Skip" Carnine
Unverified
21:03
my comment when I said IRS, obviously we would make that as a federal issue, but it also has state implications because our school districts across the state are primarily financed locally through property taxes. It's a very stable thing, and so that does, in fact, impact that. And that was why I was asking the question, is to be sure we understood how that all was going to be actually handled.
Representative Buddy Lovell
Unverified
21:31
So thank you very much, Mr. Chairman. Nothing, Mubble? Thank you, Mr. Chair. I've got two questions. I guess the first one would be, have you looked at or have you asked an opinion from the tax assessors and I guess more importantly the Association of Arkansas counties and how do they feel about this? We've not spoken with those groups. Okay. My next question would be, if you've got a primary lender on a piece of property
and they're in the habit of making home equity or second mortgage loans on a home, why would they not go back to the primary lender instead of doing this type of loan? And I really have a big problem with causing the tax assessors to collect that. But my question would be, why would they not go back to the primary lender
and get a second mortgage or a home equity loan? There's two
Speaker 84
22:44
reasons. One is typically these are below market rate in terms of the interest on them. So it's a lower cost loan than a traditional lending tool. The second is because of these being attached to the property rather than to the individual, the homeowner or the property owner gets the immediate benefit of the payback and doesn't have to wait until the end of the loan cycle.
Where in a traditional loan, they're responsible for that loan. Say it's a 10-year payback. They assume the full cost of that 10-year payback were under a PACE program. They only pay for the portion while they own the property. the next homeowner or the next property owner picks it up at that point, and then when it expires at the 7- or 10-year period, whoever owns the property at that point gets the full benefit of the savings.
Representative Buddy Lovell
Unverified
23:40
Okay. Your comment was a lower interest rate loan. If this were available now, what would be the interest rate today? Well, it
Speaker 84
23:49
would depend on whatever the market is, and I don't
Representative Buddy Lovell
Unverified
23:53
know. I think all lenders depend on that, but you said it would be lower than what a normal lender would do, so you don't have any idea what it would be?
Speaker 86
24:05
What we've seen in other programs is typically 1% or 2% lower.
Okay. Thank you. Thank you, Mr. Chair. Representative Barnett,
Representative Jonathan Barnett
Unverified
24:31
wouldn't you just pay cash? Okay, Representative Letting, you're saying that you really haven't vetted this bill then with the assessors and necessarily the banking community?
I mean, it looks like to me that this is creating a new type of consumer loan that, I mean, why wouldn't you just go and get a second mortgage on your house at the bank? why would you you're saying it's a better interest rate um i mean i mean if you could you could make all kinds of improvements on your house and just add it to your tax bill but if i were the tax if i were the taxing body i would i don't know that i'd want these things
tagged on left and right it'd be there'd be a lot of be very complicated and be a lot of ifs as far Whereas, you know, as far as foreclosures are concerned, I would think you'd just go to the secondary loan market and just borrow your money there. You're trying to make the county assessors getting in the consumer loan business, it looks like to me. I mean, have you all thought about talking to the assessors and see what their thoughts are on this? I'm
Representative Greg Leding
Unverified
25:45
not sure if Senator Johnson, who carried this bill over the Senate where it passed without opposition, has had conversations with the assessors.
Speaker 103
25:51
I have not been a part of those conversations.
Speaker 84
25:58
Do you? Okay. No conversations. Again, I just try to explain the difference between this and a secondary loan, if you will. I mean, I suspect most of us have lived in, you know, at this table have lived in our homes more than the average four or five years where folks move. So it may not seem that relevant to those of us who have been long-term residents of our property.
But on an average, folks move every four or five years. The payback on these types of improvements is typically seven to ten years. And so one of the difficulties of getting the investment is people won't be in their home long enough to realize the immediate benefit of the investment. This allows for immediate benefit. It allows for more than just a nickel and dime improvement. Typically, these run anywhere from $10,000 and some programs up to $30,000.
Again, the individual district has the latitude to set the guidelines of what they loan based upon the size of the bond available. But it's not intended for, you know, just minimal small $1,500, $2,000 improvements typically. so. Representative Hyde, you
Chair
Unverified
27:18
recognize. Thank you, Mr. Chairman. I move immediate consideration on this issue. Proper motion.
Speaker 77
27:26
Representative Lovell, you recognize. I was going to do the same thing. I thought you had a
motion for due pass. Okay, we have to have a due pass. You got to do due pass. All in favor of immediate consideration, let it be known by saying aye. Aye. Okay.
Now, do we have a motion? Do pass. Do pass. Okay. All right. All in favor of do pass, let it be
known by saying aye. All in favor of do pass, let
you can pull that out. I'm sorry.
You can bring it back this afternoon.
We'll go. Yeah, that's right. Yeah. Okay, next item, we have one more
item, what's that Senate bill, anybody here to run Senate bill 779? If not, we'll adjourn to further notice.
Agenda
Call to Order
HB2033
SB938
SB938
HB1920
SB516
Adjournment
Documents
No documents posted.
Speakers
Representative Fred Allen Chair
Unverified
Representative John T. Vines Chair
Unverified
Speaker 5
Speaker 8
Representative Jon Woods
Unverified
Derek Smith
Unverified
Speaker 20
Speaker 26
Speaker 31
Speaker 37
Speaker 43
Speaker 45
Speaker 49
Speaker 51
Speaker 57
Speaker 58
Representative Buddy Lovell
Unverified
Speaker 61
Speaker 22
Speaker 68
Speaker 72
Representative Greg Leding
Unverified
Speaker 75
Representative Jonathan Barnett
Unverified
Speaker 79
Speaker 80
Speaker 74
Speaker 84
Speaker 83
Speaker 86
Chair
Unverified
Representative Mark Biviano
Unverified
Representative Terry Rice
Unverified
Speaker 27
Representative Marshall Wright
Unverified
Representative Les "Skip" Carnine
Unverified
Speaker 103
Speaker 77
Speaker 114
Speaker 70