Legislative Update

February 11, 2000          A review of current developments from the Georgia Bankers Association
www.gabankers.com
 

Insurance Bill Passes House


Bannister

 

H.B. 656, the bill introduced at GBA’s request last year that would remove the “Town of 5,000” restriction on bank’s ability to sell insurance passed the Georgia House of Representatives overwhelmingly this week.  Rep. Charles Bannister (R-Lilburn) handled the bill on the floor and did an outstanding job explaining the need for the legislation.  The text of the bill was substantially rewritten from last session as a result of the federal financial modernization bill passing the Congress.  The new version of H.B. 656 deletes some of the language in the original version that dealt with operational issues separating banking and insurance functions that are now fully allowed by the federal bill.  A floor amendment was added to the bill that restricts state-chartered banks’ ability to sell title insurance; however, banks currently in the business would be grandfathered.  Few banks sell title insurance and we have found little interest among our members to get into this line of business.  We are continuing to assess the language and may try and improve the bill in the Senate.  The bill has been assigned to the Senate Banking and Financial Institutions Committee and could be voted on in committee as early as Thursday, February 17. 

Subchapter S Tax Relief

 

 

Legislation is expected to be introduced early next week to provide tax relief for the stockholders of Georgia banks that have elected Subchapter S status.  The bill is designed to allow corporate tax credits to be passed along to individuals, something not currently allowed in the statute.  When the bank taxation laws were enacted in the mid-1980s, banks were not able to elect Sub S status.  However, since then, the rules have changed and approximately 40 banks have elected to move to Sub S.  There are significant restrictions for these banks and their stockholders, but the tax benefits more than outweigh any disadvantages for those banks that have elected to make the change.  Other business corporations that elect Sub S status are allowed to pass these credits along to their stockholders, and this bill will simply bring equity to bank stockholders.  The bill will be offered by Rep. Butch Parrish (D-Swainsboro) and Rep. Bob Hanner (D-Parrott) and will be assigned to the House Ways and Means Committee. 


Parrish


Hanner

Education Bill Passes House

Governor Roy Barnes
Barnes

Governor Roy Barnes’ education bill, H.B. 1187, passed the House of Representatives this week and is headed to the Senate.  Twelve amendments were offered, but all were defeated.   The Governor has made education reform his number one priority this session.

Housekeeping Bill Moving


Howard

The annual housekeeping bill from the Georgia Department of Banking and Finance, H.B. 1231,  was reported out of a subcommittee of the House Banks and Banking Committee this week.  The subcommittee was chaired by Rep. Henry Howard (D-Augusta).  The bill is designed to accommodate some of the changes in the federal financial modernization bill especially as they relate to banks being able to offer more financially-related products.  The bill is on the agenda for the Monday meeting of the House Banks and Banking Committee.

Venue Bill Reported

H.B. 1346, legislation designed to give plaintiffs more opportunities to sue business corporations, was reported out of the House Judiciary Committee this week.  The bill is sponsored by Judiciary Committee chair, Rep. Jim Martin (D-Atlanta).  The GBA has worked with the Georgia Chamber of Commerce as other business groups to oppose and improve the bill.  Efforts are continuing to make the bill more reasonable so that Georgia will not become a haven for plaintiff lawyers.  The next step for the bill is go to the House Rules Committee chaired by Rep. Calvin Smyre of (D-Columbus).


Martin


Smyre

Perfection Bill Introduced

H.B. 1364 by Rep. Alan Powell (D-Hartwell) and Rep. Bobby Parham (D-Milledgeville) was introduced and passed out of committee this week.  The bill is designed to help lenders more quickly perfect their security interest in motor vehicles.  GBA supports the bill.


Powell


Parham

GBA Keeps You Informed

GBA’s Legislative Update is intended to keep you apprised of the bills that the GBA is tracking on the industry’s behalf.  Subsequent issues will be mailed on alternate Fridays except when the legislature is in recess.  On Fridays that the Update is not mailed, GBA’s LegisFAX will be sent via fax to all CEO’s, Contact Bankers, Bank Counsel Section members and those interested in tracking issues on a weekly basis. The electronic version of both the Legislative Update and the LegisFAX will be sent by e-mail to those on our e-mail list.  The ‘State Issues’ section of GBA Online, GBA’s home page at www.gabankers.com, is linked to the website maintained by the General Assembly and assures that you will have the latest version of any bill being tracked by the GBA.

GBA’s Lobbyists at the Capitol

The lobbying team for the GBA will be at the Capitol full-time throughout the session.  If you need to get in touch with any of them on a particular issue, several ways are available. Call the main number at the GBA, (404) 522-1501, or leave a message on their direct voice mail, or send them an e-mail. They will get back to you at the earliest opportunity.

Joe Brannen, Direct phone, (404) 420-2026

Elizabeth Way, Direct phone, (404) 420-2027

Don Browne, Direct phone, (404) 420-2021

Dan Thomason, Direct phone, (404) 420-2016

The electronic version of GBA's Legislative Update will be published regularly during the 2000 session of the Georgia General Assembly.  Let GBA's Lydia Thomas know of others you would like to add to our distribution list.

State Legislative Issues l Georgia House of Representatives l Georgia State Senate l Governor
Federal Legislative Issues l Georgia Members of Congress