Legislature Convenes
The Georgia General Assembly kicked off their 2007 session on Monday of this week. Much of the week was consumed with organizational issues.  Lt. Governor Casey Cagle presided over the Senate beginning Tuesday following his swearing in on Monday afternoon.  He confirmed his interest in giving a voice to the Democrat minority by appointing two Senators, Ed Harbison (D-Columbus) and Michael Meyer Von Bremen (D-Albany), to committee chairmanships.  President Pro Tem Eric Johnson (R-Savannah) was easily re-elected to the position he had held the previous session.  The Senate also adopted rules restoring the historic powers to the Lt. Governor that had been stripped from the former Democrat Lt. Governor by the Republican-led Senate.  In the House, Speaker Glenn Richardson was easily reelected to the position with all Republicans and several Democrats supporting his candidacy. Speaker Pro Tem Mark Burkhalter (R-Duluth) was also reelected.  The General Assembly was in session through Thursday and will be in recess next week in recognition of the Martin Luther King, Jr. Holiday and for budget hearings.
 

Legislative Reception Attracts Crowds of Bankers and Public Officials
Almost a thousand bankers, legislators and other state dignitaries joined the Georgia Bankers Association for our annual tribute to state elected officials.  The Hyatt Regency-Atlanta was the scene of the gala event.  “The annual Legislative Reception is simply a time for Georgia bankers to say ‘thanks’ to our elected leaders for the time and personal sacrifices each makes to serve us all,” said GBA Chairman Bobby Carmichael, CEO of Commercial Bank and Trust in LaGrange.  “We appreciate our members turning out to help thank our elected officials and show support for the Association’s agenda,” he said.
 

GBA Board, Public Affairs and BankPAC Committees Meet
A joint meeting of the GBA Board of Directors, Public Affairs Committee and BankPAC Board was held this week. The bankers heard presentations from Rep. James Mills (R-Gainesville), Chairman of the House Banks and Banking Committee, Sen. Bill Hamrick (R-Carrollton), Chairman of the Senate Banking and Financial Institutions Committee and Banking Commissioner Rob Braswell.  Rep. Mills and Sen. Hamrick thanked the banking leaders for their role in supporting positive initiatives moving the industry forward and for their traditional role in fostering economic development throughout Georgia.
 

Session Expected to be Busy
At the Joint Meeting of the GBA Board, Public Affairs Committee and BankPAC Board, a number of issues were discussed.  GBA will be asking the legislature to adopt several proposals this year:

• Tax Correction/Amendment
  In the 2005 session, legislation was adopted bringing the Georgia tax code in conformity with the Federal Tax Code.  One provision of that bill has created an increased tax liability for many banks due to the change in how U.S. Government obligations are now being treated. In adopting the new language, the legislature did not intend on a revenue windfall, and the GBA is working with the Revenue Department and legislative leaders to craft a bill which would leave the current law in place while adding an amendment that would recognize the unique nature of bank balance sheets and liquidity requirements.
   

• FHLB Letters of Credit
  The Federal Home Loan Bank of Atlanta has asked GBA to support legislation that would add the bank’s letters of credit to the authorized list of securities that can be pledged against public deposits.  A bill has been drafted and we expect it will be introduced when the legislature returns from their upcoming recess.
   

• Garnishment Service
  There have been a couple of recent court cases against banks regarding the banks’ failure to respond timely to garnishment notices.  The facts in each case have shown the notices were given to employees of the bank with little knowledge of the matter and the notices were simply not handled as expeditiously as called for in the statute.  GBA will be supporting legislation requiring the notices to be sent to the agent of record address of the bank.
   

• Banking Department Housekeeping Bill
  For the first time in two years, the Georgia Department of Banking and Finance will ask the General Assembly to consider a bill that will clarify existing laws and interpretations of the current financial institutions code.  Among the provisions of interest to our members:  state banks will get parity with national banks on real estate loans; “statutory capital base” will be redefined to ensure loan limits are not artificially inflated with goodwill or other intangible assets following a merger; share exchange transactions in mergers will be clarified to avoid the need to form interim banks; and proxy voting by electronic means will be allowed.  The Department bill is expected to be introduced soon.

Other Bills of Interest
GBA will monitor legislation which has a direct or peripheral impact on our members.  Following are several bills that are of concern:

• Credit Report File Freeze
  Legislation has been introduced that would allow consumers to place freezes on their credit reports with the credit reporting agencies.  Similar legislation has been considered by other states and consumers have found some difficulty in enjoying both the protections the concept provides while still having access to a variety of financing options.  GBA monitoring.
   

• ATM Emergency PIN
  Sen. John Wiles (R-Marietta) held a hearing just before Christmas getting testimony from vendors selling all sorts of devices and software that would notify law enforcement of an emergency at an Automatic Teller Machine (ATM).  The GBA, CBA and Georgia Credit Union League gave a joint statement opposing the idea of any state mandates of such devices or software.  Sen. Wiles has said he plans to pursue his idea of such mandates this year.  GBA opposes.
   

• Title Pawn Lending
  Last year, a concept was discussed that would be a different take on traditional title pawn lending.  The concept was referred to an ignition key pawning which meant a consumer could pawn an already-mortgaged automobile.  GBA would oppose such legislation as such a practice could easily create problems for superior lien holders.  We expect the concept to be considered again in 2007.  GBA opposes.

With questions about any of these issues or about the process, please contact GBA’s Elizabeth Chandler at (404) 420-2027.
 

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