Legislature Has Busy Week

The Georgia General Assembly returned this week from a weeklong recess for the Martin Luther King, Jr. Holiday and two days of appropriations hearings.  Although they were in session only four days this week, they moved several pieces of significant legislation.  Final action was taken this week on the bill cutting in half the sales tax on natural gas and a revised Voter ID law. Governor Sonny Perdue signed both bills this week.  The Legislature has now been in session for nine days of their 40-day session.  We continue to hear from members who tell us they expect the General Assembly could adjourn without having to use the full 40 days.  The General Assembly will reconvene next Tuesday.

House Committee Reports Title Pawn Bill

The House Banks and Banking Committee met this week for the first time this session.  New this year, House committee meetings are being webcast giving Georgians the opportunity to view the proceedings.  Check the link from our website for the live meetings when you have an interest in watching any particular meeting.  This week, the Committee considered legislation sponsored by Committee Chairman James Mills (R-Gainesville) to change the method title pawn companies operate.  The bill, H.B. 675 was the subject of subcommittee hearings around the state chaired by committee Vice Chairman Calvin Hill (R-Woodstock).  GBA had been following these meetings to ensure there was no impact on traditional banks and thrifts and the bill strictly applies to the title pawn companies.  The bill essentially requires that in the event a vehicle is sold to satisfy a pawn and there is money left over after satisfying the pawn, the excess would be returned to the person pawning the title.  The bill also requires a portion of the payments, after the third month, to be used to reduce the principal of the pawn.  After extensive debate and discussion the bill was reported out of committee with two dissenting votes.  The bill now goes before the House Rules Committee which will decide whether the bill moves forward.
 

Stop Payment Bill Before Subcommittee

In last week's e-Bulletin, we told you about legislation introduced, H.B. 1043, by Representative Mike Barnes (D-Hampton) which adds the intentional filing of a stop-payment order on an instrument the filer knows would not be paid due to insufficient funds to the types of actions deemed to be deposit account fraud.  Of particular concern is a provision in the bill that requires financial institutions to inform the holder of the instrument whether there were sufficient funds in the account to process the payment at the time the stop payment order was issued and when the instrument was presented for payment.  This provision would seem to apply to each and every stop payment order an institution received.  The bill is on the agenda February 1 for a subcommittee meeting of the House Judiciary, Non-Civil, Committee.  We will be meeting with Rep. Barnes to let him know our concerns about how his legislation radically changes the current system for what appears to be few instances of occurrence.
 

Wire Transfer Issue May Be Introduced

We have met this week with Representative Tom Rice (R-Peachtree Corners) about legislation he has drafted but not yet introduced dealing with international wire transfers.  What the legislation is attempting to do is find a way to help pay for indigent heath costs by adding a 5% fee to all international wire transfers initiated by individuals who cannot prove they are U.S. Citizens or whether they are in the United States legally.  Similar legislation has been considered in other states, but nothing has passed.  Under Rep. Rice's proposal, the institution being asked to send the international wire would have to determine in every instance the citizenship and residency status of the individual.  We have explained the provisions of the Bank Secrecy Act and how the kind of documentation our members already have to maintain to open accounts through the Customer Identification Programs.  Should this legislation pass, it would add an additional regulatory burden on those banks who are sending international wires.  The Georgia Department of Banking and Finance would be responsible for developing rules and procedures for the remitters to follow and how the money collected is eventually transferred to the state treasury.  We appreciate Rep. Rice listening to our concerns and at this point, it is too early to predict what may eventually be introduced.
 

Rice

Low Interest Mortgage Loans

Rep, Lanette Stanley-Turner (D-Atlanta) has introduced H.R. 903, a proposed Constitutional amendment that would require the General Assembly to provide for a program of low-interest mortgage loans for teachers; first responder employees; federal, state, or local government employees; and members of the National Guard.  If passed, the amendment would be on the ballot at the next general election.  The bill has been assigned to the House Banks and Banking Committee where no action has been scheduled.

GBA Monitoring More Than Two Dozen Bills

The Georgia Bankers Association is following a number of bills carried over from the 2005 legislative session all those introduced in teh 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 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 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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