Legislature Has Busy Week

Senate Committee Cancels Meeting on ATM Bill

The Senate Banking and Financial Institutions Committee had scheduled a second committee meeting this week on S.B. 513, a bill by Senator John Wiles (R-Marietta) which would mandate that every outside ATM be equipped with a button to be used in an emergency to call the local 911 service.  The Committee heard testimony last week from the advocates and this meeting was called to consider reporting the bill to the Rules Committee.  GBA President Joe Brannen was prepared to testify in opposition to the bill on behalf of the GBA, the Community Bankers Association of Georgia and the Georgia Credit Union Affiliates.  Chairman Bill Hamrick (R-Carrollton) decided to cancel the meeting after hearing from a number of legislators and others who felt the issue needed extensive study before reporting any legislation out of the committee.  With so few days left in the session, Chairman Hamrick thought it best to hold the bill in Committee.  While it is unlikely any further action will be taken, there is always a possibility the advocates will try and attach the bill to another bill working its way through the process or try to attach other language that would keep the issue alive until next session.
 

House Banks and Banking Committee Meets

Chairman James Mills (R-Gainesville) chaired a meeting of the House Banks and Banking Committee on Tuesday to hear a number of bills.

• Committee Vice Chairman, Calvin Hill (R-Woodstock) reported on his subcommittee's hearings on H.B. 966 by Representative Rob Teilhet (D-Smyrna), legislation which would allow individuals to place freezes on their files with the credit reporting agencies.  Rep. Hill said the subcommittee understood the role this process could have in addressing a small portion of identity thefts.  He reported that the subcommittee would prefer to find a way to address the issue more broadly; but there was insufficient time left this year, so the subcommittee will not be reporting the bill.  Testimony had been given stating that in the 12 states where some sort of file freeze legislation had been enacted, the total population of these states was over 112 million, yet only 25,000 individuals took advantage of the opportunity to freeze their credit files. 

• Representative Tommy Benton (R-Jefferson) testified in support of his bill, H.B. 1447, that would prohibit persons making mortgage loans from extending a loan to a person whom the broker or lender knows or should know to be in this country illegally.  After extensive questioning of Rep. Benton, the bill was assigned to a subcommittee for further study.

• Senator Bill Hamrick (R-Carrollton) gave the committee an extensive overview of S.B. 535, legislation he and others introduced that adds more consumer protections for people who choose to pawn the title of their vehicle for short term cash needs.  Among other things, the bill would require a title pawn dealer to return to the individual any proceeds in excess of the amount owed if the vehicle is sold to satisfy the debt and give notice if a vehicle was about to be taken.  Similar legislation has already passed the committee, and S.B. 535 was assigned to a subcommittee for further study.

• Representative Tyrone Brooks (D-Atlanta) appeared before the committee to discuss H.B. 1280 he and others had introduced earlier in the session. The bill would prohibit the state from using a depository which has any knowledge of loans to certain entities in the Republic of Sudan.  There was bipartisan support among the committee for some sort of action to be taken by the General Assembly this session.  However, the Chairman recommended Rep. Brooks take a somewhat different approach by getting a resolution prepared calling for an end to the atrocities and loss of life in Sudan, especially in Dafur.  Chairman Mills also took a point of personal privilege and called on the supporters of this legislation to join him for being just as concerned about human life in the womb as they are about human lives after they are born.

Action Taken on Several Bills GBA is Monitoring

A number of bills received action this week that GBA has been monitoring:

• Mortgage License Exemption Bill Passes Senate.  S.B. 505 by Senator Don Balfour (R-Snellville), and others provides for the exemption from licensing as a mortgage broker or lender if the company is a financial institution and the individual is an exclusive agent for the financial institution and the institution takes responsibility for the individual's actions. The bill passed the Senate this week and is expected to be assigned to the House Banks and Banking Committee. Sen. Balfour stated the bill was for Primerica, a Citigroup subsidiary, with headquarters in his district.  He explained that similar legislation had already passed in 48 other states.

• Intangibles Tax Bill Reported by House Judiciary.  A bill GBA has had on our watch list from last session suddenly resurfaced on the House Judiciary Committee agenda this week.  H.B. 265 was introduced in 2005 by Representative David Ralston (R-Blue Ridge).  The bill applies to property located in more than one county and requires the holder of an instrument to be recorded to record the instrument in each county and certify under oath the prorated value of the property in each county.  The bill does not allow the recording to occur in a particular county without the certification from the recording officer that the intangible recording tax has been paid.  The committee reported out a substitute bill that also added the same requirements for transfer taxes.  Please let us know how this bill might affect your operational procedures.  The bill is being pushed by the Clerks of Superior Court.

• File Freeze Bill Reported out of Committee.  H.B. 1389 by Representative Tommy Benton (R-Jefferson) was reported out of the House Judiciary (Non-Civil) Committee this week.  The bill would allow consumers who have been victims of identity theft to freeze their files with the credit reporting agencies.  In spite of the substantial requirements put on the credit reporting companies, the bill prohibits these private companies from charging a fee for this new mandated service. 

• Notice of Settlements Bill on House Agenda.
  H.B. 1282 was introduced by Representatives David Ralston (R-Blue Ridge) and Larry O'Neal (R-Warner Robins).  The bill creates a "Notice of Settlements" form that any party to the transfer of ownership of real estate or who creates a lien or mortgage on the property  by way of a deed to secure debt, mortgage, or other instrument may file with the Clerk of Superior Court . If a lien is filed during the 45 day existence of the Notice of Settlements and the title has not changed hands, the lien will attach to the property.  The bill is slated for a vote by the full House on Monday.

• Development District Bill Pulled from Calendar.  S.B. 414 by Senator Cecil Staton (R-Macon) and others creates infrastructure development districts throughout the state and provides for financing alternatives to fund various programs.  The bill was scheduled to be voted on this week by the full Senate; however, Sen. Staton pulled the bill and an accompanying constitutional amendment as he felt the votes were not there to pass the bill.  Earlier in the day, the Senate Democratic Caucus had voted to oppose the bill, and without bipartisan support, the constitutional amendment would not had received the required two-thirds majority.

Staton

O'Neal

Background Check Bill Introduced

Federal Reserve Bank Hosts Committees

Our thanks to Pat Barron, First Vice President and Chief Operating Officer, and the entire executive management team at the Federal Reserve Bank of Atlanta for working with the GBA this week to host a visit by the House and Senate banking committees.  The committee members received a briefing on the inner workings of the Federal Reserve, discussed the role the Federal Reserve plays in processing checks, delivering cash, handling wire transfers and supervising certain banks.  The Bank's staff also discussed how the Federal Reserve Board's actions on monetary policy affected the economy and how the Federal Reserve encourages banks to reach out to expand banking services to under-banked and non-banked consumers.  The Bank then hosted an informal reception for the staff and legislators to discuss these issues in more detail. 
 

GBA Monitoring More Than Three Dozen Bills

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