Tax Bill Reported to Full Committee
H.B. 441, legislation introduced at GBA’s request by Rep. Johnny Floyd (R-Cordele), would revise tax code provisions relative to the adjustment of taxable income with respect to income from federal obligations and certain other obligations. In 2005, the legislature adopted a change in tax policy which disallowed any interest expense attributable to tax exempt dividend or investment income.  The result for some of our members has been an increase in their overall state tax liability.  Based on the fiscal note that accompanied the original bill, the Legislators were led to believe there would be a nominal impact on our members, but that has not turned out to be the case.  The bill as introduced would return the code to its original form effective with the tax year beginning January 1, 2008.  The bill was the subject of two subcommittee hearings this week in the House Ways and Means Committee.  Our thanks to Janet Sammons with Porter Keadle Moore, LLP who appeared with Rep. Floyd representing GBA's Tax Advisory Committee to discuss the bill.  Bart Graham, Commissioner of the Department of Revenue, spoke in opposition to the bill.  The bill was reported to the full committee, and we had hoped to have it considered this week.  With any revenue-related bill, the state Auditor is required to produce a fiscal note predicting the revenue impact to the state.  We understand the hold up with the fiscal note is with the Revenue Department, and we expect the note to be ready at the next committee meeting.  Click here to read an issue brief we are providing members of the Committee to help them understand the need for the bill.
 

Tax Data Match Bill Amended
H.B. 353 by Rep. Larry O'Neal, Chairman of the House Ways and Means Committee, was introduced at the request of the Revenue Department and sets up a new data match program for financial institutions to use in responding to summons of garnishment issued by the Department.  The program attempts to follow a similar program financial institutions are already required to use as part of the parent locator service. A similar tax data match program is used in Maryland and at least one other state.  The bill was amended this week so that it would essentially be a pilot project among the three largest banks in Georgia and certain insurance companies, mutual funds and other similar entities who hold investment accounts.  The bill was scheduled for floor action on Thursday; however, the bill has been recommitted to the House Rules Committee for an amendment that would strip out all the companies other than the banks for the pilot project.  Chairman O'Neal has gone out of his way to be helpful by ensuring the impact on our members will be minimal, and we appreciate his consideration and concern.
 

Credit Report File Freeze Meeting Held
H.B. 130 was introduced by Rep. Calvin Hill (R-Canton) and others.  The bill allows individuals to place and remove security freezes on their credit reports.  The bill is similar to legislation enacted in other states that has been used successfully by the credit reporting agencies.  A Subcommittee of the House Banks and Banking Committee meet Monday to discuss this bill and several other bills relating to file freezes that have also been introduced.  At the meeting,  attempts were made to find the best pieces of each of the bills and craft a new bill.  However, it became apparent how difficult that process would be and the committee adjourned until further notice.
 

GBA To Testify on Homeland Security Bill
The Georgia Bankers Association has been asked to testify before a study committee of the House Public Safety and Homeland Security Committee on a proposed bill.  The study committee is being chaired by Rep. Billy Horne (R-Newnan).  The bill has not yet been introduced, but the draft bill we have been given is far-reaching and appears to be intended to update the Georgia Code to assist in the State's antiterrorism efforts.  GBA President Joe Brannen will ask the study committee to delete the provisions in the bill which call on the Georgia Department of Banking and Finance to adopt rules and regulations mandating state-chartered institutions to comply with the Bank Secrecy Act and the USA PATRIOT Act.  Because all banks are already fully complying with these acts, we feel requiring specific regulations at the state level are unnecessary.  Please click here to review GBA's testimony.
 

Homestead Exemption in Bankruptcy Being Raised
S.B. 133 has been introduced by Sen. Ed Tarver (D-Augusta) and others.  The bill would increase the homestead exemption in Georgia bankruptcy filings from $10,000 for individuals and $20,000 for couples to $50,000 for individuals and $100,000 for couples.  A hearing on the bill was held by the Senate Judiciary Committee this week and a number of Chapter 7 Bankruptcy Trustees testified in opposition to the bill.  However, the bill was reported out and is eligible for consideration by the Senate Rules Committee.  If you have concerns about this bill, please let GBA's Elizabeth Chandler know.
 

Trust Bill Passes House
We have been following H.B. 139 by Rep. Wendell Willard (R-Sandy Springs) and others on behalf of our members who have active trust departments.  Among other things, the bill changes certain provisions relating to the rules of inheritance when a decedent dies without a will.  Most of the provisions of this legislation apply to a minor child and occasionally bank trust officers are called on to assist.  The bill has been amended twice since it was originally introduced and the House passed a Judiciary Committee substitute this week.  The bill has been sent to the Senate and is pending in the Senate Judiciary Committee. 

Alternative Procedure Proposed for Scrap Auto Titles
H.B. 171 was introduced by Rep. Tom Rice (R-Norcross). The bill creates a procedure for individuals to transfer a motor vehicle worth less than $750 for scrap when they cannot locate or do not have a title.  The bill is designed to assist individuals dispose of vehicles and requires the Department of Revenue to adopt a more efficient process.  The bill has recently passed the House and is pending in the Senate Finance Committee. 

Bill Allowing Lottery Proceeds Assignments Introduced
H.B. 515 has been introduced by Rep. Allen Freeman (R-Macon) and others.  The bill allows an individual, upon approval by the Superior Court, to assign winnings from a lottery annuity.  We understand most states which have lotteries have already adopted similar legislation.  The bill would allow lottery winners to get loans against their lottery proceeds.  The provisions in the bill which would involve the Superior Courts in approving the assignments appears to be designed to provide a measure of protection for individuals who are attempting to take out these loans.  The bill is pending in the House Judiciary Committee.
 

Two Consumer Loan Bills Introduced
Rep. Matt Dollar and others have introduced two bills this week GBA has added to our monitoring list.  The first bill, H.B. 562, amends the Georgia Fair Lending Act to add a new definition for a Temporary Loan which is a loan that may be made for the purpose of facilitating or securing a permanent mortgage within 35 months in connection with the purchase of a home.  The bill has been assigned to the House Banks and Banking Committee.  The second bill is H.B. 564 and amends the deposit account fraud statute to create a new fraud when someone had insufficient funds in their account at the time they passed a check and the person immediately stopped payment on the check, but retained the item or services.  An additional provision deals with starter checks used to pay rent for a residence.  This bill has been assigned to the House Judiciary-Non-civil Committee.
 

Legislature in Recess for Two Weeks
The General Assembly was in session Tuesday through Thursday this week.  Because of the crisis in funding the PeachCare program, the Legislature decided to be in recess until March 19 while the federal government considers a solution.  Governor Sonny Perdue was in Washington this week in his role as chairman of the Republican Governor's Conference.  A number of other governors joined Gov. Perdue in calling on Congress to act quickly to resolve the funding crisis.  While the Legislature is in recess, we expect committees to continue to meet.  Following the recess, the Legislature will have 13 days left of their 40-day annual session.
 

GBA Adds Bills Daily to Our Monitoring List
The Georgia Bankers Association is already following a number of bills introduced in the 2007 session of the General Assembly and updates the Government Relations area of our website daily.  Please check this area frequently so you will be informed about issues affecting your industry.  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 2007 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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Georgia Bankers Association - 50 Hurt Plaza, Suite 1050, Atlanta, GA 30303 • Phone 404.522.1501 • Fax 404.522.9848