Jan. 14, 2011

Busy Week at the State Capitol
 The weather may have stopped mail delivery and disrupted GBA-sponsored events this week, but the State Constitution trumped the weather and the Capitol was abuzz with activity. GBA was one of the hosts for the annual Wild Hog Supper Sunday night, a decades-old tradition heralding the start of the annual session, and the festivities concluded just as the snow storm hit metro-Atlanta. The state Constitution mandates the General Assembly convene the second Monday in January, so with some good planning on their part by staying in nearby hotels and with some assistance by the state patrol, natural resources personnel and other state agencies with all-weather vehicles, the 2011 session got underway on schedule. Most all their business this week was organizational in nature. The House overwhelmingly elected David Ralston (R-Blue Ridge) Speaker of the House. In the Senate, new rules were adopted putting much of the control into the hands of a committee of senate leaders. The General Assembly also met on Wednesday to hear the Governor’s State of the State address before adjourning until Jan. 24.

State of the State
Governor Nathan Deal addressed a joint session of the House and Senate on Wednesday for the annual State of the State address. Deal remained optimistic about our future quoting from Georgia’s second Commissioner of Agriculture, J.T. Henderson, who posed the following question: “In general productiveness, in salubrity of climate, in the incomparable blessing of good water, in facilities of transportation, in educational advantages, in the moral tone of her people, and the almost unbroken good order of society, what State of our day and generation can justly claim a happier condition or a higher civilization?” But he also presented two budgets that face the reality of the state’s current revenue situation. He reduced revenue estimates the General Assembly used to adopt the current budget that will require millions in further cuts. The budget he proposed for fiscal year 2012 necessitates deeper cuts. He said the days of teacher furloughs were over while announcing state employee positions will be cut by 14,000. He reminded legislators of the $1 billion in federal stimulus money that won’t be available this year, and he recommended cutting in half the proposed bonded indebtedness for next fiscal year. Bonds are being proposed to deepen the Savannah Harbor, increase school construction at all levels, and build new water reservoirs. His budget also anticipates that the General Assembly will no longer use HOPE reserves to fund scholarships and he proposes to spend only the money collected and stop dipping into reserves. While in Congress, he was an outspoken critic of the Obama Administration’s health care proposals, and told legislators the new law will bring 650,000 more Georgians onto the Medicaid rolls, a new expense that must be funded. He closed on a positive note thanking the dedicated state employees, from teachers to law enforcement officers and all those others, who have been working under years of declining revenues and pay freezes.

Senate Committees Announced
 We were pleased to learn this week that the State Senate Committee on Assignments named Sen. Jack Murphy (R-Cumming) Chairman of the Senate Banking and Financial Institutions Committee. The Vice-Chair is Sen. Jim Butterworth (R-Cornelia) and the Secretary is Sen. Jesse Stone (R-Waynesboro). Other members announced as members of the committee are John Bulloch, Ex-Officio (R-Ochlocknee), John Crosby (R-Tifton), Ed Harbison (D-Columbus), Jeff Mullis (R-Chickamauga), Josh McKoon (R-Columbus), Steve Thompson (D-Powder Springs), Ronnie Chance (R-Tyrone) and Cecil Staton (R-Macon). The past Chairman, Sen. Bill Hamrick (R-Carrollton), will move to the Chairmanship of the Senate Judiciary Committee. We appreciate Sen. Hamrick’s leadership of the banking committee for the past six years and appreciate his handling of the complex issues that came before his committee.  We look forward to working with the new leadership and assisting in their understanding of how proposed legislation could affect our member banks. 

Few Bills Introduced So Far
We can always count on Rep. Bobby Franklin (R-Marietta) to come to each session with a handful of legislation to be introduced, and he didn’t disappoint again this year. We’ll add two of his many bills to our tracking list. H.B. 3 requires banks to open accounts denominated in gold and accept deposits and pay out in gold upon request. H.B. 19 eliminates the Federal Reserve Bank of Atlanta’s exemption from the state income tax. When the General Assembly returns Jan. 24, we can expect the pace of bill introduction to skyrocket. We’ve already heard from members who plan to introduce bills that would cap interchange rates, require credit/debit card processors to remit sales tax instead of merchants, lengthen the foreclosure period, mandate mediation prior to foreclosure and involve the courts in every foreclosure. On a more positive note, we’ve also talked with legislators who oppose all those initiatives and will support legislation to prevent local governments from creating foreclosure registries like we’ve seen in DeKalb County.

Georgia Trend Names Ralston “Georgian of the Year”
Congratulations to House Speaker David Ralston for the well-deserved recognition by Georgia Trend Magazine as Georgian of the Year. “Anyone who has known the Speaker over the years, see the quality of the issues he focuses on, and the level-headed temperament he brings to his role, would agree with Georgia Trend’s selection this year. The Speaker stepped up at a time when his intellect, wisdom, leadership and genuine concern for the people of Georgia were most needed. Being Speaker is one of the toughest in all of state government, and I’m glad we’ve got him at the helm,” said GBA President and CEO Joe Brannen.

House and Senate Leadership Announced
Speaker Ralston will joined by a talented group of Republican House members elected by their caucus this session: Jan Jones (Milton), Speaker Pro-Tempore; Larry O’Neal, (Bonaire) Majority Leader; Ed Lindsey, (Atlanta) Majority Whip;  Donna Sheldon (Dacula) Majority Caucus Chairman; Matt Ramsey, (Peachtree City); Majority Caucus Vice Chairman; and Allen Peake (Macon), Majority Caucus Secretary/Treasurer. On the Democrat side, those members elected Stacey Abrams (Atlanta) Minority Leader; Carolyn Hugley (Columbus), Minority Whip; Brian Thomas (Lilburn); Minority Caucus Chairman; Rashad Taylor (Atlanta) Minority Caucus Vice Chairman; and Stephanie Stuckey Benfield (Decatur), Minority Caucus Secretary.

In the Senate, Lt. Gov. Casey Cagle (Chestnut Mountain) will be the presiding officer. Republican control of the Senate will be in the hands of Tommy Williams (Lyons); Chip Rogers (Woodstock), Majority Leader; Bill Cowsert (Athens), Majority Caucus Chair; and Cecil Staton, Majority Whip. The Democrats elected Robert Brown (Macon), Democratic Leader; Doug Stoner (Smyrna), Democratic Caucus Chair; and Steve Henson (Tucker), Democratic Whip.

GBA at the Capitol
Stay tuned and follow our updates on the GBA’s State Issues Page on our website as it’s updated daily. If you Tweet – follow us on Twitter – we’ll be Tweeting significant events as they occur. GBA will be well-represented again this year at the Capitol with Elizabeth Chandler, GBA’s Senior Vice President of Government Relations, coordinating our lobbying efforts. With questions about the session, bills of interest or anything related to the process, just give her a call at 404.420.2027.

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