Banking Committee Hears Two Bills
The Financial Institutions and Services and the Regulations and Oversight subcommittees of the  House Banks and Banking Committee met jointly this week and considered two issues we have been following.  Several bills have been introduced that will allow individuals to place a freeze on their credit files with the credit reporting companies.  The most recent bill, H.B. 130 by Reps. Hill, Mills, Meadows, England and Benton, is modeled after legislation in other states that has been reported to be more workable that other proposals.  Several witnesses spoke both for and against the file freeze concept including well-known consumer advocate Clark Howard.  Subcommittee chairman, Rep. Calvin Hill (R-Canton), said another hearing is expected prior to any action being taken.   The other issue considered was H.B. 163 by Rep. Steve "Thunder" Tumlin (R-Marietta) and a number of legislators.  The bill would allow a highly regulated form of payday loans to be made in Georgia.  In Rep. Tumlin's absence due to a death in his family, Rep. Earl Ehrhart (R-Powder Springs) explained the bill to the committee.  These types of loans were essentially banned by the legislature several years ago.  No action was taken on the legislation and the subcommittee chair, Rep. Mike Coan (R-Lawrenceville) announced another hearing would be held.
 

Bank Tax Bill Introduced
Legislation was introduced this week by Rep. Johnny Floyd (R-Cordele), H.B. 441, which would revise the tax code provisions relative to the adjustment of taxable income with respect to income from federal obligations and certain other obligations. In 2005, the legislature adopted a change in tax policy which disallowed any interest expense attributable to tax exempt dividend or investment income.  The result for some of our members has been an increase in their overall state tax liability.  The bill as introduced, would return the code to its original form.  GBA Chairman Bobby Carmichael, President and CEO of Commercial Bank & Trust in LaGrange, appointed a Tax Advisory Committee to consider ways to address the issue.  The Committee chair, Mark Robinson with Synovus in Columbus, and the GBA staff met with the Revenue Department prior to the session to discuss various alternatives.  The Department has not accepted any of our recommendations and discussions will continue.  It is too early to predict what final form the legislation will take.  Joining Rep. Floyd in introducing the bill were Representatives James Mills (R-Gainesville), Butch Parrish (R-Swainsboro),  Richard Royal (R-Camilla) and David Knight (R-Griffin).
 

Retraining Tax Credit Bill Introduced
At the request of the Revenue Department, legislation was introduced this week, H.B. 361 by Ways and Means Committee chairman, Larry O'Neal (R-Warner Robins) which would essentially eliminate the ability of financial institutions to take advantage of the existing retraining tax credits in the Georgia code.  The bill contains three provisions of concern:  it restricts the application of the retraining credit to certain industries (specifically excluding any retail industries where banks would fall), redefines the term "new technology" to exclude most types of technology changes banks would employ which would qualify for the existing credits, and limits the amount of retraining credit to $1,000 per employee per year.  A number of other industries are concerned about the legislation and we will be discussing our concerns with the legislature.  Please understand it is traditional for the chairman of the Ways and Means Committee to introduce legislation at the request of the Revenue Department.  The legislation is not necessarily something he will support or expect to be passed in the form it was introduced.
 

Bank Data Match Bill for Taxes Introduced
H.B. 353 was introduced this week at the request of the Revenue Department that would set up a new data match program which financial institutions would be required to use in responding to certain requests issued by the Department.  The program attempts to follow a similar program financial institutions are already required to use as part of the parent locator service.  We had met with the Revenue Department over a year ago at their request to discuss this idea in concept, and our understanding was the the Department was doing some additional research.  We were surprised the Department took a legislative approach, but we will carefully review the legislation and share our concerns with the appropriate individuals.  Please let GBA's Elizabeth Chandler know if you have any comments on how your bank is currently complying with the parent locator service or how you might have difficulty complying with this legislation.  Please click here to see a copy of the legislation.
 

Housekeeping Bill Passes Senate
S.B. 70 by Senate Banking and Financial Institutions Committee Chairman Bill Hamrick (R-Carrollton) has passed the Senate and is pending in the House Banks and Banking Committee.  Among the provisions of most interest to bankers:  provides parity between state and federally chartered banks by removing certain limits on real estate loans for state banks; statutory capital base is redefined to limit the impact of goodwill and other intangibles after a merger to prevent artificial increases in loan limits, investments and fixed assets; clarifies that proxy voting by electronic means is allowed; and, eliminates the need to form an interim bank when a share exchange transaction occurs.  Please click here for a summary of the bill.  No action has yet been scheduled on the bill in the Committee.
 

Legislature in Recess Friday,  Monday and Next Friday
The General Assembly will be in recess Friday of this week and Monday and Friday next week.  This week, the legislature passed the halfway point of their 2007 session.  On Thursday, the Senate did not meet and the House met only briefly before adjourning to allow members to attend the funeral of Georgia Congressman Charlie Norwood who died earlier this week.  With regard to the process to fill the vacancy created by the Congressman's death, the Secretary of State will call an election no later than February 23 which will be held 30 days following the date of the call.  If no candidate receives a majority, a run-off election will be held.  The election will be non-partisan but each candidate's party affiliation will be disclosed on the ballots.
 

GBA Adds Bills Daily to Our Monitoring List
The Georgia Bankers Association is already following a number of bills introduced in the 2007 session of the General Assembly and updates the Government Relations area of our website daily.  Please check this area frequently so you will be informed about issues affecting your industry.  Please click here to see the bills currently on our watch list.
 

GBA's Lobbyists
GBA is represented this year at the Capitol by our three lobbyists:  Joe Brannen, Elizabeth Chandler and Don Browne so give them a call if you have questions about any legislation.  Don’t forget to check the 2007 State Issues link on GBA’s website for up-to-the-minute status of bills being followed this session.

Joe Brannen, Direct phone, (404) 420-2026
Elizabeth Chandler, Direct phone, (404) 420-2027
Don Browne, Phone, (404) 522-1501

GBA Keeps You Informed
GBA’s e-Legislative Update is intended to keep you apprised of the bills that the GBA is tracking on the industry’s behalf and is sent on Fridays during the session.  On Fridays when the Update is not mailed, it will be sent electronically to those who have provided us with their email addresses.  The ‘State Issues’ section of GBA’s website, 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.

The e-version of GBA's Legislative Update will be published regularly during the 2006 session of the Georgia General Assembly.  Please let GBA's Lydia Thomas know of others you would like added to our distribution list.
 

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Georgia Bankers Association - 50 Hurt Plaza, Suite 1050, Atlanta, GA 30303 • Phone 404.522.1501 • Fax 404.522.9848