April 1, 2011

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Legislature in Session Four Days This Week
When the Georgia General Assembly adjourned for the week on Thursday, they had completed Day 37 of their 40-day allotment of days to be in session each year. Their plans are to be in recess the week of Apr. 4 and meet three days the following week, adjourning on Apr. 14. Much effort was spent this week by members of the House and Senate leadership and the Special Joint Committee on Georgia Revenue Structure trying to develop a tax reform package that would be both revenue neutral while creating new jobs and making Georgia more competitive in attracting new businesses. Negotiations will continue during the recess. In other news this week, the state budget for fiscal 2012 passed the Senate and a conference committee is working on a final version.

Several Bills of Interest Move Forward This Week
Foreclosure Registries. The Senate Banking and Financial Institutions Committee chaired by Sen. Jack Murphy (R-Cumming) reported HB 110 by Rep. Mike Jacobs (R-Atlanta). The legislation will preempt local ordinances requiring the registration of vacant or foreclosed property and replace those ordinances with statewide standards. The bill also provides a way for foreclosing lenders to avoid having to register with these local registries. It's simple: the new owner (the lender in the case of a foreclosure) files the new deed within 60 days that will contain more identifying information than current deeds require and, upon providing a receipt of that deed filing to the local registry authority, the lender will not have to actually file with the registry. We told you last week that representatives from municipal and county governments have asked that the bill be amended and a subcommittee chaired by Sen. Jim Butterworth (R-Cornelia) considered their concerns, but only made minor modifications which did not do harm to the underlying concept behind the legislation. We hope the bill will receive final action this year.

Motor Vehicle Security Interest Perfection. HB 323 by Rep. Michael Harden (R-Toccoa) was passed by the Senate clearing it for the Governor's signature. The bill extends from 20 to 30 days the time allowed to deliver notice of a security interest in a motor vehicle to the local tag office or the Revenue Commissioner. This time crunch was created by legislation passed last year and we appreciate Rep. Harden introducing this bill to give banks more time to file this paperwork and was handled in the Senate by Sen. Jack Murphy (R-Cumming).

Certificate of Insurance. We’ve been monitoring HB 66, legislation that puts into statutory language that certificates of insurance are for informational purposes only. The bill will require the forms to be approved by the Insurance Commissioner and allows the Commissioner to approve forms that did not contain the “informational purposes only” language. Insurance Commissioner Ralph Hudgens has committed to issue such forms. The bill was introduced at the request of the Georgia Independent Insurance Agents Association. The bill was slightly revised prior to being passed by the Senate this week and managed by Sen. Greg Goggins (R-Douglas). The House will have to either agree to those changes or request a conference committee.

Attorney's Fees. We've been reporting on HB 64, the bill that relates to the validity and enforcement of obligations to pay attorney's fees upon notes or other evidence of indebtedness to remove specific percentages based on amount of the indebtedness (currently 15 percent of the first $500 of principal and interest owing and 10 percent in excess of $500) and replaces that with a fee that would be an amount found by the court to be reasonable and necessary for asserting the rights of the aggrieved party. Mentioning his concern that the House-passed bill could be hung up in the Senate, the bill's author, Rep. Mike Jacobs (R-Atlanta) successfully had the language in the original bill added to another bill that had already passed the Senate, SB 181. This bill was subsequently reported out of the House Judiciary Committee. In adding the language, Rep. Jacobs also raised the attorney fee amount that would trigger a court review from $10,000 to $20,000. 

Guardianship. The House passed SB 134 which contains technical corrections to guardianship legislation passed in a previous session. Their action clears the bill for the Governor's signature. The bill was introduced by Sen. Bill Hamrick (R-Carrollton) and handled in the House by House Judiciary Committee Chairman Wendell Willard (R-Sandy Springs).

Reconveyance Fees. HB 129 by Rep. Doug McKillip (R-Athens) was reported out of the Senate Judiciary Committee. The bill is designed to prevent certain fees from being assessed on property that would be collected every time the property is sold. We understand the bill was introduced at the request of the State Bar of Georgia and mirrors legislation passed in other states. Sen. Jesse Stone (R-Waynesboro) will be handling the bill in the Senate.

State Purchase Cards. HB 290 by Rep. Mike Cheokas (R-Americus) was passed by the Senate this week clearing the bill for the Governor's signature. The bill removes the recommendation passed last year that state agencies attempt to reduce the number of outstanding purchase cards by 10 percent.

Abandoned Motor Vehicles. Rep. Alan Powell (R-Hartwell) introduced two bills, HB 113 and HB 114, related to property in vehicles stored or deemed abandoned. HB 113 gives lien rights on both the vehicle and its contents with some exceptions to those who tow and store vehicles. HB 114 clarifies that a fee beyond the existing $10 fee to assert lien rights shall not be charged unless the matter goes to court. In that case, normal court fees would apply. HB 114 had passed the House, but the Senate Judiciary Committee substantially amended the bill. As written now, the bill preserves the $10 fee, allows owners of the stored vehicle to remove certain items without paying towing and storage costs (such as prescription drugs, firearms, and personal documents) and requires certain contents be turned over to law enforcement prior to sale by the storage company. The revised bill was reported out of committee this week and is awaiting further action.

Murphy	Jacobs	Butterworth	Harden	Hudgens	Goggins

Hamrick	Willard	McKillip	Stone	Cheokas	Powell

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 is 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.