Legislative Update

January 30, 2004          A review of current developments from the Georgia Bankers Association

www.gabankers.com
General Assembly Returns from Recess The Georgia General Assembly got back to work this week after a week-long recess for the Martin Luther King, Jr. holiday and four days of budget hearings.  While state revenue collections continue to be encouraging, they will not be sufficient to avoid tremendous budget cuts for the current fiscal year that ends June 30.  Governor Purdue and his agency heads have proposed a series of cuts designed to balance the budget, but as expected, many of the cuts are not being well received in the legislature.  The budget is expected to dominate the entire session.


Gov. Perdue

No Action on Payday Lending Legislation

A subcommittee of the House Banks and Banking Committee met during the recess to discuss their ideas for how to address the payday lending issue.  The range of thought was to abolish the industry or to regulate it.  Chairman Johnny Floyd (D-Cordele) said he would work with the committee to try and develop a fair bill that would protect consumers.


Rep. Floyd

Housekeeping Bill Reported Out of Senate Committee S.B. 405, The Banking Department’s annual housekeeping bill, introduced by Senate Banking Committee Chairman Don Cheeks (R-Augusta), was unanimously reported out of committee this week and is ready for floor action.  The most significant issue for banks is the elimination of the requirement to get advance approval from the Department for third party contracts.  The committee amended the bill at the request of several GBA members who are involved in synthetic leases; some clarifying language was included in the bill to allow these type leases to be financed in the bank as well as a holding company.


Sen. Cheeks

Time for Auto Titles May Be Reduced

H.B. 1178 has been introduced by Representatives Alan Powell (D-Hartwell) and Bobby Parham (D-Milledgeville).  The bill reduces from 90 to 30 days the time required to file for a new certificate of title.  The legislators tell us there has been a growing concern about the timeliness of title applications being filed and the bill is designed to speed up the process.


Rep. Powell

FHLB Letters of Credit

H.B. 777 by Representatives Floyd, Shaw, Skipper, Parrish, Porter, Royal and others.   Would allow the Director of the Office of Treasury and Fiscal Services to accept Federal Home Loan Bank letters of credit as collateral to pledge against government deposits.  The Bill passed the House in 2003 and is pending in the Senate Banking and Financial Institution Committee.  GBA supports.

Predatory Lending

H.B. 1171 by Representatives Holmes, Bruce, Sinkfield, Stanley-Turner, Mobley and others.  Amends the Georgia Fair Lending Act to return it to the version passed in 2002.  Back would be covered loans, the old definition of flipping, and the assignee liability language that caused the rating agencies to shut down the mortgage market in Georgia; and gone would be the parity language that allowed state-chartered banks to be exempted from the Act.  GBA opposes.

Payday Lending

S.B. 157 by Senators Cheeks and Fort.  Would prohibit payday lending, deferred presentment services or advance cash services for entities not otherwise licensed or regulated.  This bill also institutes civil and criminal penalties for unlawfully engaging in such activities.  GBA monitoring.

Credit Reports

H.B. 1096 by Representatives Barnes, Dodson, Barnard, Wix and Shaw.  Requires furnishers of information to a consumer reporting agency to notify the consumer prior to submitting derogatory information.  GBA opposes.

Lien on Abandoned Vehicles

S.B. 404 by Senators Cheeks and Hall.  Creates a new type of lien on abandoned vehicles to include the cost of an environmental cleanup created by the vehicle.  GBA monitoring.

Call Centers

H.B. 1218 by Representatives Borders, Greene, Childers, Moraitakis and Black.  Amends the Fair Business Practices Act to require individuals working in a call center to provide their name, the company for whom they are employed and the city, state and country where the call center is located within the first 30 seconds of the call and prior to any personal information being asked of the caller.  GBA monitoring.

Gift Cards

S.B. 443 by Senators Adelman and Seabaugh.  Would prohibit the imposition of a nonuse, handling, dormancy or maintenance fee on gift cards and gift certificates issued by merchants or persons acting on behalf of merchants.  The cards must be redeemed for cash or merchandise at the full value issued.  GBA monitoring.

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.  Subsequent issues will be sent on alternate Fridays except when the legislature is in recess.  On Fridays that the Update is not sent, GBA’s LegisFAX will be sent via fax to all CEO’s and those interested in tracking issues on a weekly basis. The electronic version of both the Legislative Update and the LegisFAX will be sent by e-mail to those on our e-mail list.  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 will again be 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 2004 State Issues link on GBA’s website for up-to-the-minute news from the 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 2004 session of the Georgia General Assembly.  Let GBA's Lydia Thomas know of others you would like to add to our distribution list.

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