e-Legislative Update

March 25, 2005          A review of current developments from the Georgia Bankers Association

www.gabankers.com

Three Days Remaining in 2005 Session

The General Assembly was in session only three days this week, but continued active consideration of a number of bills we have been following this session. There are only three legislative days left in the 2005 Session. The Leadership has mentioned several times they may be able to adjourn early this year if the House and Senate can agree on next fiscal year’s budget and some other key issues.  Should they need the full 40 legislative days, the General Assembly is slated to adjourn Friday, April 1.

Gift Card Bill Slated for House Vote

S.B. 13, which requires the disclosure of the expiration date and certain fees associated with gift cards to be shown on the cards, was reported out of the House Judiciary Committee this week with only one dissenting vote.  The Committee also changed the effective date to October 1, 2005.  The bill was then sent to the House Rules Committee and it is expected to be reported out for a vote next week.  The bill will be handled in the House by Rep. Tom Graves (R-Fairmount).

Rep. Graves

S.B. 230, by Senate Banking and Financial Institutions Committee Chairman, Bill Hamrick (R-Carrollton) is one of several bills introduced as a result of the fraudsters who got access to Alpharetta-based ChoicePoint's database.  Although other bills have been reported out of committee, it appears S.B. 230 is the only bill that could receive final action this year.  The bill was patterned after a similar law in California requiring data brokers (like ChoicePoint) to notify consumers if the company’s database has been compromised.  Several attempts have been made to greatly expand the bill beyond the data brokers, but the bill reported out of the House Rules Committee this week continues to apply only to the data brokers.  We understand there may be some additional efforts made to clarify certain provisions in the bill.  GBA has worked closely with Chairman Hamrick and explained how the new federal rules give banks guidance on procedures to follow should security breaches occur.  Our principal concern has been having two differing sets of rules at the state and federal level.  The federal regulations do not preempt conflicting state-level rules; and we continue to feel strongly that, while the federal rules will increase banks’ regulatory compliance burden, these rules are sufficient.  Also, some of the language which was unsuccessfully offered in committee would have created a new cause of action for parties to litigate over matters which we felt were too vaguely defined.  Our thanks to Chairman Hamrick for understanding our concerns.

Sen. Hamrick

Tax Bill Out of Committee

H.B. 488 was introduced by Ways and Means Committee Chairman Larry O’Neal (R-Warner Robins) at the request of the Revenue Department to give the Commissioner more discretion on certain corporate tax returns.  We have previously reported on the concerns raised by several organizations, including GBA, and we appreciate Chairman O’Neal addressing these concerns prior to the bill passing the House.  The bill had been reported out of the Senate Finance Committee.

Rep. O'Neal

Trust Flexible Income Bill Passes

H.B. 406 passed the Senate on Thursday of this week and is on its way to the Governor.  The bill, authored by Representatives Wendell Willard (R-Atlanta) and Mary Margaret Oliver (D-Decatur), was requested by the Fiduciary Law Section of the State Bar of Georgia and is designed to modernize Georgia law dealing with the sometimes conflicting interests trustees encounter in investing trust assets.  The bill gives trustees the ability to invest in more flexible ways.  Click here for the executive summary prepared by the State Bar.

Rep. Willard

Rep. Oliver

Authorized State Investments

S.B. 227 was introduced by Senator Casey Cagle (R-Gainesville).  The bill authorizes derivatives and other sophisticated investments for the Georgia State/Financing Investment Commission to use in relation to certain bond sales to assist in the management of interest rate risk. The bill passed the House unanimously but it must go to the Senate for their agreement to a minor change.

Sen. Cagle

Farm Equipment Lease Taxation

H.B. 203 by was introduced by Representative Richard Royal (D-Camilla) and others.  The bill calls for a constitutional amendment that if approved by the voters would add leased farm equipment to the ad valorem tax deduction already permitted for otherwise owned farm equipment.  The bill passed the Senate this week thereby clearing it for the Governor’s signature.

Rep. Royal

H.B. 364 was introduced by Representative Roger Williams (R-Dalton) and others.  The bill affects motor vehicles purchased out of state and requires an applicant for a certificate of title to show proof of the payment of Georgia sales and use tax in order for the applicant to receive their tag and title.  GBA has been monitoring the bill as it could have an impact on automobiles financed by our members.  H.B. 364 has now passed the Senate and is on its way to the Governor.

Rep. Williams

Manufactured Home Titling

S.B. 253 was introduced by Senator Preston Smith (R-Rome) and others.  The bill amends the current law dealing with converting a manufactured home from personal to real property by adding a new term, "Certificate of Permanent Location," and further provides for how the document is to be recorded and replaced.  GBA has been following the bill this session.  It has passed the Senate and been reported out of the House Judiciary Committee.  It could receive final action next week.

Sen. Smith

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 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 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 Lobbyists

GBA is represented this year every day at the Capitol by our three lobbyists:  Joe Brannen, Elizabeth Chandler and Don Browne.  Give them a call if you have questions about any legislation.  Don’t forget to check the 2005 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, Direct phone, (404) 522-1501

State Legislative Issues l Georgia General Assembly