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State Legislative Issues - 2013

Georgia’s 2013 General Assembly session began
Jan. 14. As always, there will be a variety of bills introduced that will affect the banking industry.

GBA at the Capitol
Throughout the session, GBA will be represented by our Senior Vice President for Government Relations, Elizabeth Chandler, 404.420.2027, and President and CEO, Joe Brannen, 404.402.2026. Contact either of them with questions about legislation, information about how your legislator voted on a particular issue or any to request any other information related to the Georgia General Assembly.

Check on the bill numbers below for summaries and links to the full text of bills as they are introduced. Also, look for weekly the GBA Legislative Update electronic publications throughout the session.

Full Summaries of All Legislation Monitored

Support / Amend / Oppose

Foreclosure – Unpaid Condo / HOA Assessments
S.B. 56 by Sen. Jesse Stone (R-Waynesboro) would require the purchaser of a foreclosed property, prior to the purchaser obtaining title to the property, to pay an amount equivalent to six months of unpaid assessments if the foreclosure is a condo and up to one-half of unpaid assessments in the previous 12 months if the foreclosure is a lot or home governed by a homeowners association. GBA Opposed.

Funds Transfer - Remittances
H.B. 289
by Rep. Trey Kelley (R-Carrollton), a GBA-requested bill that updates Georgia’s Uniform Commercial Code related to remittance transfers as required by the Dodd-Frank Act.

Note Sales
H.B. 82 by Rep. Earl Ehrhart (R-Powder Springs) would require an acquirer of a note purchased from an insured institution at a discount of more than 60 percent to notify to borrower of a new right being given the borrower to purchase the note for a 10 percent premium if purchased within 30 days or a 20 percent premium if purchased within 90 days. GBA Opposed.

Actively Monitoring

Assets - Forfeiture of Seized Assets
H.B. 1 by Rep. Wendell Willard (R-Sandy Springs) would establish a comprehensive forfeiture procedure for seized assets. Financial institutions qualify as an “interest holder” if they have filed proper paperwork with the court asserting that interest in seized property. As an interest holder and upon being granted permission from the court, a financial institution may dispose of seized property using commercially reasonable means to satisfy their interest plus recoup selling costs. Any excess would be turned over to the court. In addition, if the seized asset is cash, the clerk of court will be required to place the funds in an interest bearing account at a financial institution branch in the county where the civil forfeiture action is located.
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Automobile Title
H.B. 80
by Rep. Tom Rice (R-Norcross) is legislation introduced to clarify some of the provisions of the new automobile tax and title legislation passed last session. Legislators have been told of increased  and apparently unintended taxes that are being collected related to leased vehicles, rental vehicles, and on vehicles that may be sold more than once in a particular year.
This bill was merged with H.B. 266, below, which passed and was signed by the Governor.
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Automobile Title and other Tax Issues

H.B. 266
by Rep. Allen Peake (R-Macon) corrects some unintended consequences from last year's bill replacing what's commonly called "the birthday tax" on motor vehicles. The bill passed and was signed by the Governor. Here's a link to a summary of new provisions, and here's a link to some specific changes to how Fair Market Value is calculated for new vehicles.
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Bankruptcy - Vehicle Exemption
H.B. 531
by Rep. Mike Jacobs (R - Brookhaven) would increase a debtor's exemption for motor vehicles in a bankruptcy from $3,500 to $5,000.
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UCC - Bulk Transfers
H.B. 554 by Rep. Tom Weldon (R-Ringgold) repeals UCC Article 6 related to Bulk Transfers.
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Contracts - Collection of Closing Fees
S.B. 139
by Sen. Butch Miller (R-Gainesville) would allow a lender or seller to collect a one-time closing fee of up to 4 percent, but not to exceed $50, to defray the cost of credit and reference checks. For loans prepaid in full within 90 days of the loan or sales contract, lenders or sellers must refund or credit the borrower with a pro rata portion of the fee and can't keep more than $25 of the fee.
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Contracts - Renewal Notifications

H.B. 234 by Rep. Lynn Smith (R-Newnan) requires a 30-day notice on certain automatically renewing consumer contracts with a specific exemption for financial institution contracts.
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Covenants and Warranties
H.B. 175 by Rep. Dustin Hightower (R-Carrollton) would establish that covenants entered into by a property owner with third parties will run with the land for 20 years.
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Credit Reports
S.B. 20 by Sen. Donzella James (D-Atlanta) with limited exceptions, prohibits employers from requesting credit reports on existing or potential employees.
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Court Filings

H.B. 215 by Rep. Tommy Benton (R-Jefferson) would change the process by which clerks record instruments in their records and raises the fee for certain filings.
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Debt Management Services
H.B. 465
by Rep. Chuck Martin (R-Alpharetta) would enact a new Chapter 5 for Title 18 of the Official Code of Georgia to require certain companies providing debt management services to be regulated by the Georgia Department of Banking and Finance. It would require annual registration with the department, and it defines several other rules related to fees, advertising and services that may be provided.
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Electronic Benefit Transfer (EBT) Cards - ATM Usage Prohibition
H.B. 181 by Rep. Kevin Cooke (R-Carrollton) would prohibit the use of EBT cards that provide public assistance benefits such as the Supplemental Nutrition Assistance Program to be used at ATMs to withdraw cash. Banks and other ATM operators would have to set up the machines so they will not accept the cards.
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Electronic Benefit Transfer (EBT) Cards - Retail Usage Prohibitions
H.B. 138
by Rep. Andrew Welch (R-McDonough). As required by the Federal Middle Class Tax Relief and Job Creation Act of 2012, this bill would prohibit the use of EBT cards by beneficiaries of
the federal Temporary Assistance for Needy Families program in establishments such as liquor stores or adult entertainment venues. Those establishments would also have to prevent access to cash from EBT cards through ATMs or point of sale terminals. EBT recipients would not be able to use and other retailers would not be able to accept EBT cards for purchases such as alcohol, tobacco, firearms, gambling, pornography, tattoos and other defined items. A number of reporting and disclosure requirements are included, as well.
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Elder Abuse -- Notification Requirement
H.B. 78
by Rep, Wendell Willard (R-Sandy Springs) adds to the list of individuals, mostly nursing homes, day care centers, clergy and other professionals who are required to report suspected or known cases of elder abuse. Financial institution employees have been covered by this same requirement for many years.
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Fraudulent Transfers
S.B. 105 by Sen. Hardie Davis (D-Augusta) would prevent gifts from being recovered from charitable organizations if the organizations were unaware the gifts were fraudulently transferred under the meaning prescribed in the Georgia Fraudulent Transfer Act.
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Foreclosure -- Confirmation Process
S.B. 106
by Sen. Curt Thompson (D-Tucker) relates to the confirmation process and adds new requirements for providing appraisals to the court.
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Foreclosure -- Deeds to Secure Debt Transfer

S.B. 108 by Sen. Lester Jackson (D-Savannah), among other things, would remove the small dollar exemption for transferring deeds to secure debt, requires notification to the borrower of the transfer, requires all transfers to be recorded, prevents property from being sold if transfers are not recorded, adds new notice requirements on residential foreclosures, and creates a new crime of residential mortgage foreclosure fraud.
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Foreclosure - Definition of a Mortgage.
S.B. 123 by Sen. Vincent Fort (D-Atlanta) provides that any document or instrument made for the purpose of securing the payment of money for owner occupied residential real property shall be deemed to be a mortgage and if the property is later foreclosed upon, the foreclosure process for a mortgage would apply.

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Foreclosure - Post Judgment Process
S.B. 126 by Sen. Jesse Stone (R-Waynesboro), would add a new right for borrowers related to the valuation of property sold at foreclosure after a judgment has been granted on a note. Within 30 days after a foreclosure, any person or entity obligated on the debt may file a complaint against the holder to establish the fair market value of the real estate. If the court determines the property was sold at less than the fair market value, the court may set aside the foreclosure OR reduce the balance of the remaining judgment by the fair market value, with any excess funds left over after satisfaction of the judgment paid by the holder to the person or entity obligated on the debt.
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Foreclosure - Post Judgment Process
H.B. 344 by
Rep. Matt Ramsey (R-Peachtree City) would add a new right for borrowers related to the valuation of property sold at foreclosure after a judgment has been granted on a note. Within 30 days after a foreclosure, any person or entity obligated on the debt may file a complaint against the holder to establish the fair market value of the real estate. If the court determines the property was sold at less than the fair market value, the court may set aside the foreclosure sale OR the court enters an order crediting the amount of the court's finding of true market value against the remaining balance of the judgment. A primary difference from S.B. 126 above is that if the court's finding of true market value exceeds the remaining balance of the judgment, the credit shall be limited to such remaining balance in full satisfaction of the judgment and the holder shall not be liable to any person or entity for any sum in excess of the full satisfaction of the judgment."
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Foreclosure - Property Owner Associations
H.B. 502
by Rep. Christian Coomer (R-Cartersville) would require mortgage holders to pay up to six months of unpaid property association fees on a property upon foreclosure.
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Foreclosure – Right to Cure

H.B. 47 by Rep. Billy Mitchell (D-Stone Mountain) would give a borrower the right to cure a default up to five calendar days before a sale is scheduled.
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Foreclosure – Rescue Consultants

H.B. 49 by Rep. Billy Mitchell (D-Stone Mountain) would create a licensing procedure within the Georgia Real Estate Commission for individuals and companies that operate as foreclosure rescue consultants.
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Foreclosure – Study Committee

H.R. 75 by R
ep. Dar’shun Kendrick (D-Lithonia) calls for the creation of the House Committee on the Foreclosure Crisis, which would study all the factors related to foreclosures in Georgia the past few years and make recommendations to the 2014 legislative session.
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Foreclosure – Statewide Registry Clarifications
H.B. 160
by Rep. Mike Jacobs (R-Brookhaven)
makes slight revisions to last session's bill that established statewide foreclosure registry standards. Unrelated to the registries, the bill would prohibit fees from being charged for future conveyances except in limited circumstances related to homeowners or condo associations.
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Garnishment - Exemption of Retirement Funds and Benefits
H.B. 377
by Rep. Ronnie Mabra (D-Fayetteville), would exempt retirement account, pension fund and certain other employee benefits from garnishment until such earnings or funds are actually paid to the person or transferred to a beneficiary. The exemption would not apply to garnishments for alimony, child support or divorces involving property divisions.
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Garnishment -
Summons
S.B. 113 by Sen. Emanuel Jones (D-Decatur) would clarify that a summons of garnishment would be served on the registered agent of a corporation rather than the list of individuals listed in current law.

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Gift Cards as Unclaimed Property/Trauma Care S.B. 190 by Sen. Emanuel Jones (D-Decatur) adds remaining balances on gift cards after one year to be designated as unclaimed property and the money collected would be administratively set aside to help fund a statewide trauma care system.
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HomeSafe Program
A group of Senate Democrats led by Sen. Nan Orrock (D-Atlanta) introduced S.R. 595 which calls on the Georgia Department of Community Affairs to broaden the coverage of individuals who could be served using the federal HomeSafe grant money. A similar group of House Democrats led by Rep. Pat Gardner (D-Atlanta) introduced an identical resolution, S.R. 757.

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Liability of Property Owners
S.B. 125 by Sen. Jesse Stone (R-Waynesboro) would codify the duties, responsibilities and liability of owners and occupiers of land for protecting trespassers from harm. Land holders would owe no duty of care for adult trespassers other than to refrain from causing willful or wanton injury. A possessor of land may be subject to liability for physical injury or death to a child trespasser under certain situations. The legislation would apply to bank ORE property.

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Liens - Mechanics and materialmen
H.B. 434
by Rep. Tom Weldon (R-Ringgold) would ensure that property liens allowable for services, labor or materials provided include the amount due and interest on such amount.  
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S.B. 269 by Sen. Lindsey Tippins (R-Marietta) would give liens for work performed on real estate priority over a deed to secure debt by requiring distributions from a foreclosure sale to first be used to satisfy these liens.
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Liens - Waste Management
H.B. 595 by Rep. Brett Harrell (R-Snellville) would prevent liens generated from
unpaid taxes, fees, or assessments owed local government solid waste providers from being attached as a lien against the property upon which the taxes, fees or assessments are imposed.  
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Medicad - Smart Card Pilot
S.B. 220
by Sen. Judson Hill (R-Marietta) would establish pilot program for the use of smart cards for Medicaid program recipients. The cards could be used to authenticate participants and providers, and could include the ability to store multiple recipients on one card as well as include photo identification features and store pertinent billing codes and deductible amounts, among other things.
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Mortgages - Property Covenants
H.B. 464
by Rep. Brian Strickland (R-McDonough) would make deeds to secure debts on residential development lots subordinate to covenants on the properties. Entities foreclosing would be subject to all properly filed homeownership association and other covenants.
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Property - Uniform Rule against Perpetuities
S.B. 159
by Sen. William T. Ligon, Jr. (R-Brunswick) would change the law
designed to prevent someone living today from dictating for a long time how the property is used after his or her death. The legislation would extend the period from 90 years to 360 years.
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Property Taxes - Non-Tax Fees
H.B. 159
by Rep. Brett Harrell (R-Snellville) would restrict property tax bills from including any nontax related fees or assessments.
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Security Interest - Perfection
S.B. 185 by Sen. Jesse Stone (R-Waynesboro)
and introduced at the request of the State Bar of Georgia, revises UCC Article 9 related to the perfection of security interests and lien rights.
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Short Sales - Exemption from Licensing
H.B. 83 by Rep. David Knight (R-Griffin) would exempt real estate brokers or sales persons from having to register as a mortgage broker as long as they are simply assisting a buyer with a potential short sale and not receiving an additional payment for their services.
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State Income Tax -
Credits for bad debts on private label credit cards of dealer credit program
H.B. 307 by Rep. Allen Peake (R-Macon) would allow tax deductions or refunds for lenders or dealers on unpaid balances on accounts or receivables charged off as bad debt from certain private label credit cards.

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Tax Credits - Downtown Investments

H.B. 128 by Rep. Allen Peake (R-Macon) would provide $30 million annually in tax credits for certain investments
in commercial, industrial or residential projects in Georgia’s historic downtown districts. Each project would be eligible for a tax credit equal to a certain percentage of its total cost. Commercial projects would be capped at $500,000 and residential projects or renovations at $50,000. Also, donations to a fund that would finance low-interest loans for such projects would be tax deductible. The concept for the Georgia Downtown Renaissance Tax Credit Act is among the results of a 2011 Georgia Municipal Association/Georgia Cities Foundation special Downtown Development Task Force. GBA Past Chair Rick Whaley, president and CEO, The Citizens Bank of Americus, and Joe Brannen, GBA president and CEO, served on the task force at the request of Lt. Gov. Cagle.
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Tax Sales - Redemption Costs to be Paid
H.B. 69
by Rep. Tommy Benton (R-Jefferson) would add amounts owed to property owners' associations to the various costs to be paid to redeem property from a tax sale.
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Tenants - Storage of Property after Eviction
H.B. 379 by Rep. Sandra Scott (D-Rex) would require a landlord removing personal property after an eviction to store the property for up to two weeks in a convenience warehouse and provide a receipt of the contents to the court. Landlords would be entitled to reimbursement of costs and fees by the tenant, and would have a lien on the property that could be satisfied after two weeks by sale or disposition of the property.

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Trust – Transfer of Property
H.B. 222
by Rep. Robert Dickey (R-Musella) would allow property to be transferred to a trust (in addition to a trustee) if the name of the trust is ascertainable with reasonable certainty.

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Archive

Click here for our final 2012 GBA Legislative Update summarizing the outcome of the 2012 session. We also archived summaries of the bills that passed and were considered in the 2012 session. Access the 2012 archive here.


Questions?  Email the Webmaster.

GBA's professional staff represents the membership at the state and federal levels. Contact any of them with questions about issues:

Joe Brannen
President & CEO

Elizabeth Chandler
SVP, Government Relations

David Oliver
SVP, Communications & Marketing