Legislature Moving Toward Adjournment
The Georgia General Assembly completed the 29^th day of their 40-day session this week.  Although the Legislature has spent many days in recess working on the budget, the recess has also given committees time to complete work on a number of bills that could see final action before final adjournment.  The House and Senate have agreed upon the timeframe for the next few weeks and plan to take more days in recess with the 37^th day falling on April 17.  No time has been agreed upon for the legislature to adjourn for the year.
 

GBA Tax Bill Coming to House Floor on 30^th Day
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.  As we reported in last week’s e-Bulletin, the bill was amended in the House Ways and Means Committee to make the bill effective with this year’s tax returns.  The bill is slated for floor action next Tuesday which will the 30^th legislative day.  The significance of that day is that it is the last day a bill must have passed at least one legislative body in order to be considered by the other.  Our thanks to House Rules Committee chairman, Earl Ehrhart (R-Powder Springs) and to House Banks and Banking Committee chairman James Mills (R-Chestnut Mountain) for their assistance in getting the bill on the Calendar.  Click here to read an issue brief we are providing members of the Committee to help them understand the need for the bill.
 

Floyd

Ehrhart

Tax Data Match Bill Expected to Be Considered
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.  From the feedback we gave to Rep. O’Neal and as we reported in a recent e-Legislative Update, Rep. O’Neal had the bill rewritten to accommodate all of our concerns.  The bill has now essentially become a pilot project between the Revenue Department and the state’s three largest banks.  We expect the bill will be considered on the 30^th day by the House under a supplemental Rules Calendar.  Our thanks to Chairman O’Neal for his help and assistance. 
 

Payday Loan Bill Suffers Setback
GBA has been monitoring H.B. 163 by Rep. Steve “Thunder” Tumlin (R-Marietta) that would bring payday lenders back to Georgia.  We have been following the bill as some of the supporters of the concept continue to talk about payday lending being a better alternative than bank overdrafts.  The House considered the bill this week, but the bill failed to get the necessary minimum number of votes to pass.  The vote will be reconsidered on the 30^th day.

Two Lending-related Bills Introduced
Although it is too late for any new bills being introduced this late in the session to receive final action, two bills have been added to GBA’s monitoring list this week.

• H.B. 718 was introduced by Rep. Bob Holmes (D-Atlanta).  The bill amends the Georgia Residential Mortgage Act to extend the licensing of mortgage lenders and mortgage brokers to include mortgage loan officers, a new term being defined in the Act.

• H.B. 720 was also introduced by Reps. Holmes and Rep. Tyrone Brooks (D-Atlanta).  The bill amends the currently regulatory structure for automobile Title Pawns by defining the pawns as loan transactions and subjecting the pawns to the state’s 60 percent usury cap. 

Holmes
 

Brooks

FHLB Letter of Credit Bill Pending in Senate
Several of our members have inquired about the status of H.B. 96, the bill introduced by Rep. James Mills and others, which adds Federal Home Loan Bank Letters of Credit to the authorized list of investments financial institutions may use to collateralize public deposits upon the approval of the director of the Office of Treasury and Fiscal Services. The bill passed the House early in the session and has been reported out of the Senate Banking and Financial Institutions Committee.  The bill awaits action by the Senate Rules Committee which is expected soon.  Our thanks to banking committee chairman, Bill Hamrick (R-Carrollton) for agreeing to handle the bill through the Senate process.
 

Housekeeping Bill Awaiting Committee
S.B. 70 was introduced by Senators Hamrick, Hudgens, Thompson, Murphy, Tarver and Rogers and is the housekeeping bill for the Department of Banking and Finance.  Among the provisions of most interest to bankers:  provides parity between state and federally chartered banks by removing certain limits on real estate loans for state banks; statutory capital base is redefined to limit the impact of goodwill and other intangibles after a merger to prevent artificial increases in loan limits, investments and fixed assets; clarifies that proxy voting by electronic means is allowed; and, eliminates the need to form an interim bank when a share exchange transaction occurs.  Following a hearing in the House Banks and Banking Committee, a small study committee met with Commissioner Rob Braswell to clarify several questions raised in the meeting.  The bill is expected to be reported out at the next meeting of the committee which should be held soon.
 

Investments in Sudan Criticized
Each year, bills are introduced which would prohibit the State of Georgia from doing business with any company doing business with the Republic of Sudan.  While that would seem to be a stretch for most of our members, the way these bills are always drafted could impact almost every bank.  This year, several bills were introduced, but thanks to the work of House Banks and Banking Committee chairman James Mills, a resolution, H.R. 273, will be considered next urging the Congress to continue to press for strong measures to end the violence in Sudan and urging the Securities and Exchange Commission to provide guidance to public pension fund managers in order to avoid investments which may be supporting nations involved in the support of terrorism or human rights violations; and for other purposes.  Such a resolution would not disrupt traditional business relationships while still allowing those supportive of stopping the violence to have legislation passed.
 

Mills

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 2007 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