Legislature Has Short Week

Senate Committee Reports Title Pawn Bill

The Senate Banking and Financial Institutions Committee met this week and unanimously reported out S.B. 535 introduced by Committee Chairman Bill Hamrick (R-Carrollton) and others.  The bill is designed to add more consumer protections for people who choose to pawn the title of their vehicle for short term cash needs.  Among other things, the bill would require a title pawn dealer to return to the individual any proceeds in excess of the amount owed if the vehicle is sold to satisfy the debt.  As the Committee had heard testimony last week from those advocating for the bill, they did not receive additional testimony this week.  The bill is now pending in the Senate Rules Committee awaiting their action to send it to the full Senate for a vote.  Similar legislation has been reported out of the House Banks and Banking Committee and is pending before the House Rules Committee, although Rules Committee Chairman Earl Ehrhart told his committee a substitute bill was being drafted for the one reported out of the House Banks and Banking Committee.  That substitute bill reportedly contains provisions that would change the definition of a title pawn to be a loan and would create a regulatory scheme for title loan companies within the Department of Banking and Finance.  GBA has been monitoring this issue as we have been concerned about the possibility of issues being raised such as those in this substitute bill.
 

ATM Bill Awaiting Hearing

GBA continues to meet with Senator John Wiles (R-Marietta) to discuss his bill, S.B. 513, which would mandate that every outside ATM be equipped with a button to be used in an emergency to call the local 911 office.  Sen. Wiles told us he is moving forward and has asked for a hearing.  We have told Sen. Wiles we cannot support his bill for three reasons:

• Emergency 911 ATM buttons could actually create an unsafe environment for bank customers.

• There is no evidence to support the notion 911 emergency buttons serve as a deterrent.

• The legislation would most likely only apply to ATMs owned by state-chartered banks.

File Freeze Bills Receiving Attention

A Subcommittee of the House Banks and Banking Committee chaired by committee Vice Chairman Calvin Hill (R-Woodstock) met this week to consider H.B. 966 by Representative Rob Teilhet (D-Smyrna) and others that would allow consumers to place freezes on their credit reports with the credit reporting agencies.  Rep. Tielhet told the committee at a previous meeting his intent is to prevent people from becoming victims of identity theft.  Representatives from Equifax and CheckFree testified again at this subcommittee meeting, but in opposition to the bill.  They reported that in states where similar legislation has been enacted, consumers have had difficulty enjoying both the protections the concept provides while still having access to a variety of financing options.  Another meeting of the Subcommittee is expected to be held later in the session.  Representative Tommy Benton (R-Commerce) introduced H.B. 1389, legislation which is similar to Rep. Teilhet's bill but would not allow the credit reporting agencies to charge a fee for the freezing and thawing a credit report.
 

Mechanics and Materialmens Lien Bill Passes Senate

GBA always monitors legislation dealing with mechanics and materialmens liens as these have often been the subject of last minute amendments that could potentially create lien priority problems for our members.  One bill we have been following this session is S.B. 530 by Senator Dan Weber (R-Dunwoody).  The bill amends the current provisions of the law dealing with mechanics and materialmen to allow a lien to attach to property for improvements done at the request of a tenant or subcontractor acting on behalf of the owner; the lien could also extend improvements authorized by the tenant or subcontractor to the adjacent easement or public right of way.  The bill passed the Senate this week and so far, has little, if any, impact on our members.  For the reasons stated above, we will continue to monitor the bill as it goes through the legislative process in the House.
 

Life Insurance Proceeds Bill Reported

H.B. 1304 by Representative Tom Knox (R-Cumming) and others, was reported out of the House Insurance Committee this week.  Among other things, the bill provides that neither the cash surrender values nor the proceeds of life insurance policies and annuity contracts shall be liable to attachment, garnishment, or legal process in favor of any creditor of the person for whose use or benefit the policy or contract was executed.  Language in the bill appears to protect creditors who have assignments; however, we are reviewing the language to ensure it does not interfere with current banking practices.  Rep. Knox chairs the House Insurance Committee.

Coleman Announces Retirement

In a surprise announcement this week, former Speaker of the House Terry Coleman (D-Eastman) announced he would not seek reelection to the seat he has held for more than three decades.  In an interview, Rep. Coleman said, “I struggled with it for a year. I still have mixed feelings about it, but I know it’s time to get out.”  Rep. Coleman was elected to the House in 1972 and was chairman of the House Appropriations Committee for 16 years.  He was elected Speaker of the House in 2002 and served for two years when the Republicans won the majority in the House in the 2004 elections.  The new Republican leadership gave Rep. Coleman the honorary title "Speaker-emeritus" and provided office space in the Capitol.  "Rep. Coleman has been an outstanding legislator and leader in the House for many years," said GBA President Joe Brannen.  "He has always been willing to listen to our concerns and been supportive over the years.  We will miss his leadership and wish him all the best in his retirement," Joe concluded.
 

GBA Monitoring More Than Three Dozen Bills

The Georgia Bankers Association is following a number of bills carried over from the 2005 legislative session all those introduced in the 2006 session.  All the 2005 bills are eligible for consideration at any time and many are of serious concern.  We have substantially revised GBA's website and particularly the Government Relations area.  Please check this area frequently as we update the State Government Relations page daily while the General Assembly is in session.  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 2006 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