April 4, 2008
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| A number of our members have asked whether the Senate will follow the House’s action to override the Governor’s veto of our bill from last session that repealed the formula on carrying U.S. Government obligations. That legislation created a new tax burden that was disproportionately felt by community banks. While the Senate overrode one of the Governor’s vetoes, we do not anticipate any other veto overrides will be considered. In the meantime, Rep. David Knight (R-Griffin) has been meeting with us and Administration officials looking for other alternatives. He kept constantly being told the statutory formula was tying the hands of the Department of Revenue and they had no choice except to use the formula. |
Rep. Knight used
another of his bills that was working its way through the
process, and amended that bill to delete the formula
altogether. The bill passed this week and is awaiting the
Governor’s signature. Although the Revenue Department has
adopted regulations based on the statutory formula, Rep. Knight
has been assured that alternatives can now be considered. We
will continue to work on this issue in an attempt to lessen this
new tax burden. Our thanks to Rep. Knight for his work.
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| At the request of Sen. Preston Smith (R-Rome), the Senate amended a House-passed bill, S.B. 355, that changes the instruments mortgage settlement agents may accept in lieu of collected funds. You will recall we worked with Sen. Smith and he agreed to leave certain insured financial institution checks in the statute. The House restricted those instruments to only cashier’s checks and added additional language to clarify how loans with a right of rescission should be handled. Using language similar to what had passed in several other states, the bill was amended by Rep. Larry O’Neal (R-Warner Robins) to require these loan funds to go to the settlement agent the day following the rescission expiration. That language was attacked in the House with an amendment offered by Rep. Don Wix (D-Powder Springs). |
Distributing a
letter to the House from former Governor Roy Barnes
suggesting the language was anti-consumer, Rep. Wix moved to
strike the language. After a heated debate, his amendment lost
and the bill passed. However, instead of agreeing to the
House-passed changes, Sen. Smith had the Senate amend the bill
to require the funds go to the settlement agent no later than
the final rescission date, a day earlier than industry
practice. The House has insisted on their position, and we will
continue to work with the House members and Sen. Smith to delete
or modify this provision. |
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| The House this week passed a revised version of S.B. 531, the one bill expected to pass this session dealing with foreclosures. Sen. Bill Hamrick, Chairman of the Senate Banking and Financial Institutions Committee, has been handling the negotiations on the bill between the lenders and consumer advocates who continue to push for additional changes. As passed the House, the bill they reported is using the bill number of one of his bills, S.B. 531, and changes the current 15-day notice of foreclosure sale is extended to a 30-day notice; requires the security instrument or an assignment to be filed with the clerk of superior court prior to a foreclosure sale, requires the notice to include the name, address, and telephone |
number of the
individual or entity who has full authority to negotiate, amend,
and modify all the terms of the mortgage with the debtor. The
Senate may simply agree to the House-passed changes. However,
if the bill is amended, it will go back to the House for either
agreement or a conference committee will be appointed to work
out the differences. While this bill will require some changes
to foreclosure procedures, it is far more benign than moving to
a judicial foreclosure process that was going to be considered. |
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| The Senate passed a substitute to H.B. 1093, a bill that clarifies the notification provisions for liquidated damages which result from the failure to satisfy a mortgage within the current 60-day period after a loan has been paid. The bill was introduced by House Judiciary Committee chairman, Wendell Willard (R-Sandy Springs). The bill is in response to a number of class action cases which have been filed against lenders throughout Georgia. It has been assumed that in order for a borrower to receive the liquidated damages, the borrower would have to give notice to the lien holder and demand the payment. Plaintiff lawyers have taken that a step further and are now saying the demand can be made when a suit is filed seeking the payment |
not only for the borrower, but also
for any other borrowers of the lender whose mortgages had not
been satisfied within the 60 day period. There was a drafting
error in the bill reported out of the Senate Judiciary
Committee that needed to be corrected on the floor. Our
thanks to Sen. Bill Cowsart (R-Athens) for his help in
handling the bill in the Senate. The bill now goes to the House
where they are expected to agree to the Senate changes.
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 Uniform Investment
Bill to Governor |
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The Senate is expected to agree to changes made in the House at GBA’s request to the Uniform Securities Act, S.B. 358. Senate Banking and Financial Institutions Committee Chairman Bill Hamrick (R-Carrollton) is the sponsor of the bill. The bill was requested by the Secretary of State, Karen Handel's office and we worked with their representatives to have several areas of the bill amended. Many of our concerns were addressed in the Senate; however, we felt bill could be further perfected and worked with the House Judiciary Committee who supported our efforts. |
 GBA has been following H.B. 972 by Rep. Steve Tumlin (R-Marietta) and others. The legislation would adopt the "Uniform Prudent Management of Institutional Funds Act" which provides standards for charities to use in managing investments and spending from endowments and other rules regarding the management of institutional funds. The bill was introduced at the request of the State Bar of Georgia and seems to be non-controversial. The Senate Banking and Financial Institutions Committee held two hearings on the bill and reported it favorably. The full Senate adopted the bill and it is now awaiting the Governor’s signature. |
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Lottery
Assignment Bill to Governor |
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The Senate has passed a new version of H.B. 1000 by Rep.
John Heard (R-Lawrenceville) and others that would create
a new titling procedure for certain watercraft. Rep. Heard, a
boat dealer, has emphasized the importance of having a better
tracking procedure for motorized watercraft and we appreciate
his efforts. The bill has been amended several times to limit
the number of boats requiring a title and to ensure small
pleasure boats will not require a title. The bill is awaiting
House agreement on the most recent changes in the Senate. |
We have been monitoring legislation, H.B. 515 by Rep.
Allen Freeman (R-Macon) and others that allows an
individual, upon approval by the Superior Court, to assign
winnings from a lottery annuity. The bill clarifies the
procedures under which assignments may be entered into and
defines various terms. We occasionally get questions from our
members who are helping customers consider various options, and
this legislation will be of help. The bill has been passed in
final form and is awaiting the Governor’s signature. |
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Legislature
to Adjourn Friday |
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The Senate has passed a bill that allows individuals to place
freezes on their credit files with the various credit reporting
agencies. H.B. 130, by Rep. Calvin Hill
(R-Canton) and others, initially set the maximum fee at $10.00,
but that fee was reduced to $3.00 on the floor of the House.
The Senate added language allowing the Banking Commissioner to
raise the fee under certain circumstances. A conference
committee must be appointed to resolve differences in the two
versions of the bill. |
As this Legislative Update was being written, the General Assembly was preparing for a marathon final work day for the 2008 session of the Legislature. Much work is left to be done and conference committees will be busy reaching final agreements on a range of issues. While much of the media attention has been focused on the various tax relief plans being considered, rank and file legislators have been busy at work in committees. GBA has had the largest legislative agenda in recent history and has been called to testify before many committees multiple times. Next week, we will provide a comprehensive report highlighting all the bills we have been following or were introduced or amended at our request. | |
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Contact GBA Staff Lobbyists With Questions |
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GBA's three lobbyists will be onsite at the Capitol all session to be available to legislators and staff as questions arise about the various bills that may affect the banking industry. If you have questions about any legislation pending, please call on these professionals for their help. Also, GBA's State Issues Page of our website will be updated daily during the session. |
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Georgia Bankers Association • 50 Hurt Plaza, Suite 1050, Atlanta, GA 30303 • Phone 404.522.1501 • Fax 404.522.9848 • www.gabankers.com |
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