e-Legislative Update

January 14, 2005 A review of current developments from the Georgia Bankers Association

General Assembly Underway

The 2005 session of the Georgia General Assembly got underway this week. For the first time since reconstruction, the Governor’s office, the State Senate and the State House are controlled by the Republican Party. Breaking with tradition, the week prior to the session was not used for budget meetings. Instead, the legislature adjourned after Wednesday’s session until January 24 to work on the budget and to get settled into their new offices.

House Leadership

Glenn Richardson (R-Hiram) was elected as Speaker with support from all the Republicans, some Democrats and one Independent. Speaker Richardson’s leadership team consists of Speaker Pro-Tem Mark Burkhalter (R-Alpharetta), Majority Leader Jerry Keen (R-St. Simons Island), Majority Whip Barry Fleming (R-Harlem), House Majority Caucus Chair Sharon Cooper (R-Marietta), Caucus Vice Chair Jay Roberts (R-Ocilla) and Caucus Secretary Sue Burmeister (R-Augusta). Speaker Richardson also broke with tradition and created a Committee on Assignments to select committee officers and members. Rep. James Mills (R-Gainesville) was named Chairman of the House Banks and Banking Committee. The Committee Vice Chair is Calvin Hill (R-Canton) and the Committee Secretary is David Knight (R-Griffin).

Rep. Richardson

Senate Leadership

Much of the Senate Leadership, which took control in the 2003 session, remains in place for the 2005 Session. Senate President Pro-tem Eric Johnson (R-Savannah) is joined by Majority Leader Bill Stephens (R-Canton), Majority Whip Mitch Seabaugh (R-Sharpsburg), Senate Majority Caucus Chair, Don Balfour (R-Snellville ), Majority Caucus Vice Chair, Tommie Williams (R-Lyons), Majority Caucus Secretary Renee Unterman (R-Loganville) and Majority Caucus Treasurer Dan Moody (R-Alpharetta). The Senate Banking and Financial Institutions Committee will have a new chair for the 2005 Session: Sen. Bill Hamrick (R-Carrollton). Vice Chair will be Sen. Bill Stephens (R-Canton) and Secretary will be Sen. Ralph Hudgens (R-Comer).

Sen. Johnson

Legislative Reception a Hit

Almost a thousand bankers, legislators and other state dignitaries gathered this week at the annual GBA Legislative Reception. “Our thanks to the tremendous support from our members who came out in huge numbers. Grassroots involvement is the key to our success in promoting our industry’s agenda, and the turn out of bankers from every corner of the state was impressive,” said GBA Chairman Dan Blanton, President of Georgia Bank and Trust Company in Augusta.

Blanton

Banking Issues for 2005

It is probably too early to predict with any certainty what banking issues will be brought before the General Assembly this year. However, from speaking with legislators, bankers and others, we expect the following issues could be debated:

Gift Card Disclosure

The number of banks selling gift cards continues to grow. Legislation has already been introduced, S.B. 13 by Senators Rogers, Seabaugh and Mullis, that would require the disclosure of the expiration date and certain fees associated with the cards to be shown on the cards. You may remember legislation was debated last year that would have prohibited fees altogether, and it seems that this year there will be more emphasis on disclosure.

Sen. Rogers

Banking Department Housekeeping Bill

We have been meeting with the Banking Department on the need for routine amendments to the banking code affecting banks, credit unions, mortgage licensees and money transmitters. The Department has shared a draft of their proposed housekeeping bill with us, and GBA will be supporting the Department’s efforts to pass the legislation. Of special interest to state-chartered banks is a provision that adds parity language to the Georgia code giving the Department the authority to preempt state laws that have been preempted by federal law for nationally-chartered institutions. This language is similar in construction to the parity language included in the Georgia Fair Lending Act that was preempted by the Comptroller of the Currency.

Judicial Foreclosure

There has been some discussion to eliminate or substantially reduce the non-judicial foreclosure laws in Georgia. The concept is being pushed by some of the same advocates for the old version of the Georgia Fair Lending Act. GBA has already taken a position in support of retaining the current non-judicial foreclosure laws in Georgia. Judicial foreclosure is already required on loans made under the revised GFLA which addresses the need.

Meth Lab Cleanup

We expect several bills dealing with methamphetamine labs. Some have already been introduced creating penalties for retailers and other who sell the raw materials from which meth is produced. We also understand legislation may be introduced which would require property owners to clean properties where meth labs had been operating. Our concern with this legislation is similar to the concerns we have had over the years with other environmental contaminations that the lender might have been forced to clean up but with which the lender had no role in creating.

3-year De Novo Bank Acquisition Rule

The law was changed a couple of years ago reducing from five years to three years the time a bank had to be in existence before it could be acquired by another bank. There has been some discussion to further reduce or eliminate the 3-year rule.

De Novo Interstate Branching

18 states allow de novo interstate branching on a reciprocal basis. Tennessee and North Carolina are our two neighboring states with such laws on their books. Some banks have expressed an interest in giving Georgia banks that same right. Federal thrifts and savings banks already have that right and we have had examples in Georgia where nationally chartered banks have used the 30-mile relocation rule to enter Georgia. For the law to be effective in other states, like Alabama, South Carolina or Florida, those states would have to pass similar legislation, and we are unaware of any efforts on their part to do so at this time.

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 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 Online, GBA’s home page, 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 Lobbyists

GBA is represented this year every day at the Capitol by our three lobbyists: Joe Brannen, Elizabeth Chandler and Don Browne. Give them a call if you have questions about any legislation. Don’t forget to check the 2005 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, Direct phone, (404) 522-1501

The electronic version of GBA's Legislative Update will be published regularly during the 2005 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 General Assembly