Legislative
Update |
March
16, 2001 A review of current developments from the Georgia
Bankers Association |
| Predatory
Lending to be Studied Until Next Session
Rep. Parrish |
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S.B.
70 will remain in the House
Banks and Banking Committee until the 2002 Session.
Committee Chairman Butch
Parrish was the target of an abusive press conference this week
when supporters of the bill threatened to campaign against him if the bill
stalled in committee. In
response to a reporter’s question, Chairman Parrish stated “I want to
do the right thing. I’m not going to be rushed.” He went on to inform the reporter that the Senate had
considered the bill for two months and it was unreasonable to think the
House would not want to fully consider the ramifications of such a
significant change in state law. He
also mentioned many of the federal initiatives underway and suggested that
adopting legislation this session may be premature.
GBA President Joe
Brannen said, “It’s disappointing that the advocates chose to
make this a personal political issue by attacking Chairman Parrish.
Their approach to cover all home loans was resoundingly rejected by
both the Senate
Banking
and Financial Institutions Committee
and again by the Senate
as a whole. Predatory lending
is a real problem that needs to be addressed in a realistic way.
The original bill and the amendment rejected by the Senate would
have impacted every home loan made in Georgia, not just high-cost loans.
The entire mortgage lending industry should not be disrupted just
to go after a few non-bank predatory lenders.” |
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Housekeeping Bill
on Governor’s Desk
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Sen. Cheeks
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S.B.
16 by Senators Cheeks, Stokes, Gingrey and Stephens is
the annual housekeeping bill for the banking department.
Among the provisions in the bill:
adding investments banks may make in the Federal Home Loan Bank,
expedited notice provisions of new activities, the ability to continue
certain activities not specifically authorized by state law after an
acquisition, and allowing a limited number of non-US citizens to serve on
a bank board. The bill was
passed in final form this week by the House thereby clearing it for the
Governor’s signature. |
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UCC Article 9 on
Senate Calendar for Monday
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Rep. Martin
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H.B.
191 by Representative
Jim Martin is on
Monday’s Senate calendar and we expect it to pass in final form. GBA has worked with the State
Bar of Georgia to perfect the bill over the last several months,
and we support enactment of the bill this year.
Almost 30 other states have adopted the uniform bill all using July
1, 2001 as the effective date. While
the bill primarily addresses complex multi-state credit transactions, the
bill also maintains current law as it applies to agriculture loans and the
priority of lenders over mechanics and materialmen.
Please see GBA’s educational calendar
for more details of the two seminars
we have scheduled April 10 and 12 in Macon and Gainesville.
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Two More Days
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The 2001 Session of
the General
Assembly is scheduled to adjourn on Wednesday, March 21.
We will send a complete wrap-up edition of legislation GBA followed
soon.
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Higher Education Savings Accounts
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Rep. Smith
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H.B.
417
by Representatives Smith, McBee, Turnquest, Dukes, Porter and
Jamison provides for tax benefits through establishing school tuition
accounts to pay for qualified higher education expenses and introduced at
the request of
Governor
Barnes. GBA
supports the legislation which has passed the General Assembly and is
awaiting the Governor’s signature. |
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Historic Property Tax Credits
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Rep. Jamieson
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H.B.
118 by Representatives Jamieson, Ashe and McClinton is a
bill supported by GBA, The
Georgia Trust, the Georgia
Department of Natural Resources and other preservation
organizations designed to encourage the revitalization of historic
neighborhoods and central business districts.
The bill provides a state tax credit for rehabilitation of
residential properties, a state tax credit for a rehabilitation of
income-producing properties, a mortgage certificate program targeted to
low-to-moderate-income residents who may not benefit from a state tax
credit and a pass-through provision for developers.
The bill will be held over to the 2002 session.
GBA supports.
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Uniform Fradulent Transfer Act
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Rep. Allen
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H.B.
84 by Representatives Martin, Allen, Reichert and
Campbell creates the Uniform Fraudulent Transfer Act to update the Georgia
Code to conform with national standards.
This same bill was almost adopted last year but got caught up in
the last minute rush to adjournment.
The bill was reported out of the Senate
Banking and Financial Institutions Committee this week but did not
clear the Rules Committee in time for it to be adopted this year.
It will automatically carry over to the 2002 Session.
GBA supports.
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Privacy
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Sen. Thompson
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S.B.
205 by Senators Thompson, Tanksley and Stokes is the
privacy bill included in Governor Barnes package of legislative
initiatives. The bill would eliminate certain information, including
financial information, from all public records prior to being disclosed
through an open records request. There
are exemptions for the press and other groups that may be seeking this
information. The bill has
been rewritten several times to accommodate a number of requests from
organizations who routinely use public records. GBA has been working in
concert with the Georgia
Chamber of Commerce to ensure the bill meets its objectives
without unduly restricting information banks need to make credit decisions
and conduct anti-fraud programs. The
final bill seems to address those concerns.
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Electronic
Signatures
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Sen. Lamutt
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S.B.
24 by Senators Lamutt, Polak, Thomas, Perdue and Mullis
is a bill which clarifies that any Georgia statute relating to any record
other than electronic, or type of signature other than electronic, shall
be permitted to use electronic records and signatures.
GBA has been supporting efforts like this one which will allow
records used by financial institutions to be electronic.
The bill has passed in final form and is awaiting the Governor’s
signature.
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| For More Information
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Contact GBA’s
lobbying team for information about these or other bills pending in the
General Assembly:
Joe
Brannen (404) 420-2026
Elizabeth Way (404) 420-2027
Don Browne
(404) 522-1501
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| Follow All
Banking Legislation
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GBA's
Legislative Update is intended to keep you apprised of key
legislation GBA is tracking on the industry's behalf. The above
bills are the ones of most interest that received action this week.
Click here for a list of all bills GBA
is following this session.
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| The
electronic version of GBA's Legislative Update will be published regularly
during the 2001 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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