Legislative Update

February 16, 2001          A review of current developments from the Georgia Bankers Association
 

Revised Article 9 Passes Committee


Rep. Martin
 

H.B. 191 by Rep. Jim Martin was finally passed by the full House Judiciary Committee on Tuesday after marathon sessions were held by the subcommittee charged with reviewing the bill.  As we reported last week, this bill deals with secured transactions and is the first substantial rewrite of this area of the law since 1962.  GBA President Joe Brannen testified at both the final subcommittee meeting as well as the full committee meeting in support of this important piece of legislation.  In opposing an amendment sponsored by auto repair shop representatives that would have given them a superior lien to lenders, Joe said, “The lien priority for lenders has been the law in Georgia for many years, and this bill is not the place for that to be changed.”  The committee supported GBA’s position on the amendment as it failed.  Joe went on to say, “This bill is important for all banks in Georgia both in the ways it addresses electronic commerce and complex commercial transactions but also in the ways it maintains current law with respect to mechanics liens and agriculture production liens.”  Another amendment was offered to delay the effective date.  That amendment failed primarily because the other 27 states which have already adopted the uniform bill used July 1, 2001 as the effective date.  There was also significant concern expressed about the disruption of the 5-year life of financing statements if a different date were used.  Our thanks to members of the State Bar of Georgia UCC subcommittee, especially the GBA representatives on the subcommittee, for their countless hours of work on this bill.  The bill now goes to the Rules Committee and on to the full House.

House Banks and Banking Committee Reports Two Bills


Rep. Parrish
Rep. Butch Parrish, Chairman of the House Banks and Banking Committee, this week held the first meeting of the committee this session.  The committee considered two bills, S.B. 16, the Banking Department’s housekeeping bill, and H.B. 207, a bill to regulate the deferred presentment or payday loan industry.  Both bills were reported out of the committee and now go to the Rules Committee.

Predatory Lending


Sen. Fort
S.B. 70, the predatory lending bill introduced by Sen. Vincent Fort, remains in the subcommittee of the Senate Banking and Financial Institutions Committee and awaits a hearing to be called.  The GBA continues to work to remove provisions that restrict traditional lenders.  The bill prohibits the financing of single premium credit insurance and prepayment penalties on any home-related loans.  In an interview with the Atlanta Constitution, GBA President Joe Brannen said, “Why aren’t they going after the predatory lenders instead of the highly regulated banks?  Banks are part of the solution, not the problem.  The bill as written will stop the flow of credit to low and moderate income areas and we can’t stand back and let that happen.”  Stay tuned to this important issue as the session progresses.

Higher Education Savings Accounts


Rep. McBee

H.B. 417 by Representatives Smith, McBee, Turnquest, Dukes, Porter and Jamison.  Provides for tax benefits through establishing school tuition accounts to pay for qualified higher education expenses and introduced at the request of Governor Barnes.  GBA supports the legislation which was reported out of the Higher Education Committee this week.

Historic Property Tax Credits


Rep. Jamieson
H.B. 118 by Representatives Jamieson, Ashe and McClinton.  The GBA has joined with The Georgia Trust, the Historic Preservation Division of the Georgia Department of Natural Resources and other preservation organizations to support legislation to further encourage the revitalization of historic neighborhoods and central business districts.  The bill provides a 30% state tax credit for a certified rehabilitation of residential properties, a 25% state tax credit for a certified rehabilitation of income-producing properties, a mortgage certificate program targeted to low- to moderate-income residents who may not benefit from a state tax credit and a pass-through provision for developers.  GBA supports.

Sale of Tax Liens


Rep. Richardson

H.B. 337 by Rep. Richardson.  Provides that any excess in the sale of tax liens be authorized to go to the defendant in a fi.fa.  Also the traditional 20% premium is authorized for only one year the tax lien is outstanding.  The bill is pending in the House Judiciary Committee.  GBA monitoring.

Responses to Garnishment


Sen. Cheeks 

S.B. 198 by Senator Cheeks.  Would allow a corporate officer or employee to reply to a garnishment notice.  The bill was scheduled to be reported from the Senate Banking and Financial Institutions Committee this week, however Chairman Cheeks reported an error had been in the drafting of the bill and a new version would be introduced next week.  GBA supports the concept although passing such a bill will be difficult in light of a Supreme Court decision that responding to garnishments beyond the Magistrate Court level constitutes the practice of law and is therefore limited to attorneys.

Cancellation of Property Insurance


Rep. Mueller 

H.B. 629 by Representatives Mueller, Wilkinson and Irvin.  Prohibits the holder of a security interest in real property to request the cancellation of any insurance covering the real property without the written consent of the owner of the property. Also prohibits an insurer from canceling any insurance covering real property at the request of a party holding a security interest in the real property without the written consent of the owner of the property.  GBA monitoring.

Privacy Protection


Sen. Thompson 

S.B. 205 by Senators Thompson, Stokes and Tanksley adds mother’s birth name, credit card number, debit card number, bank account information, or financial data or information to the classes of information that will not be released by the state under open records requests. The bill was introduced at the request of Governor Barnes this week and GBA supports.

For More Information

Contact GBA’s lobbying team for information about these or other bills pending in the General Assembly:

Joe Brannen (404) 420-2026
Elizabeth Way (404) 420-2027
Don Browne (404) 522-1501

Let Us Have Your Feedback 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.  Please take a moment to write or send an email to GBA President Joe Brannen with your suggestions for improving these publications or with questions.  

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The electronic version of GBA's Legislative Update will be published regularly during the 2001 session of the Georgia General Assembly.  Let GBA's Lydia Thomas know of others you would like to add to our distribution list.

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