Legislative Update
January 31, 2003 A review of current developments from the Georgia Bankers Association
We sent Call to Action faxes out this week to Chief Executive Officers on the two bills introduced this week to correct the unintended consequences in the Georgia Fair Lending Act. Banks and Banking Committee Chairman, Rep. Johnny Floyd, of Cordele authored the House version of the bill, H.B. 142, and a number of his colleagues cosponsored it. In the Senate, Finance Committee Chairman, Casey Cagle, authored the Senate version, S.B. 28. He also has a number of cosponsors on his bill. The first action was taken in the House at a Committee meeting on January 27. In a joint statement by the GBA, Community Bankers Association and the Georgia Credit Union Affiliates, the three associations pointed out the need for quick action. A copy of the joint statement is on GBA’s website from a link on the homepage, www.gabankers.com. The three associations also released a White Paper discussing the unintended consequences and made specific recommendations to include in the legislation. This hearing was designed to educate the members about the issue and only representatives from the industry testified. On Thursday, the House Banks and Banking Committee held another public hearing for consumer advocates. Most of those speaking adamantly opposed any changes to the Georgia Fair Lending Act. The authors of both bills felt it necessary to include language demanded by the secondary market due to the severe and negative reaction all mortgage lenders experienced after the Standard & Poor’s announcement that they would no longer rate securities containing Georgia home loans. Moody’s Investors Service made a similar announcement today. The opponents have focused on the S&P language as the most problematic for them and they are opposing the change that would eliminate assignee liability. While that is an important issue, it is only one of several issues that must be resolved and all the appropriate language is in both H.B. 142 and S.B. 28. We have asked the membership to let your House and Senate members know of your support as well. If you have not yet talked with your legislators or sent them a fax, please do so today. The House bill is scheduled for a vote by the Banks and Banking Committee on Monday and floor action could occur as early as Tuesday. The Senate Banking and Financial Institutions Committee held an organizational meeting this week. Chairman Don Cheeks told the members that S.B. 28 had been assigned to the Committee as well as another bill that he sponsored, S.B. 53, that addresses only the S&P problem and the pass-through fees for FHA and VA loans. Sen. Cheeks has not yet announced when the bills will be considered, but we have been meeting with him and the other Senate leadership to help them understand the importance of passing a comprehensive bill that addresses all the problems in GAFLA.
Rep. Carl Rogers of Gainesville introduced H.B. 184 this week which would require banks to get permission from their customers before sharing non-public information with non-affiliated third parties. GBA opposes the bill. While the bill negatively affects all banks, the bill is most detrimental to community banks, most of whom do not have affiliates. The bill has been assigned to the Banks and Banking Committee.
Sen. Don Cheeks introduced S.B. 78 this week which is the Department of Banking and Finance’s annual housekeeping bill. Among the major provisions in the bill is language allowing state-chartered banks to adopt a limited liability corporate structure and the removal of the definition of an ATM as a branch. The bill is pending in the Senate Banking and Financial Institutions Committee.
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’s Lobbyists at the Capitol
The lobbying team for the GBA will be at the Capitol full-time throughout the session. If you need to get in touch with any of them on a particular issue, several ways are available. Call the main number at the GBA, (404) 522-1501, or leave a message on their direct voice mail, or send them an e-mail. They will get back to you at the earliest opportunity.
Joe
Brannen, Direct phone, (404) 420-2026
Elizabeth
Chandler, Direct phone, (404) 420-2027
Don Browne,
Direct phone,
(404) 522-1501
State Legislative Issues l Georgia House of Representatives l Georgia Senate