Legislative Update

March 3, 2000          A review of current developments from the Georgia Bankers Association
www.gabankers.com
 

Sub S Tax Bill Reported 
out of Senate Committee

 

 

H.B. 1452 by Representatives Butch Parrish (D-Swainsboro), Tom Buck (D-Columbus), Bob Hanner (D-Parrott), Earl Ehrhart (R-Powder Springs) and Mickey Channell (D-Greensboro) was reported out of the Senate Finance and Public Utilities Committee this week.  GBA President Joe Brannen testified in support of the bill.  Senator Terrell Starr (D-Forest Park) will be handling the bill in the Senate and the next step is for the Senate Rules Committee to put the bill on the full Senate agenda. 


Starr


Brannen

“The bill is designed to allow stockholders in banks which have elected Subchapter S tax status to have tax credits formerly available to the corporation be passed through on a pro rata basis to the individual stockholders. The bill will give banks which have elected Sub S status the same tax credit pass throughs as other corporations that are Sub S filers," testified GBA President Joe Brannen.

State Tuition Program

The GBA testified before the House Higher Education Committee this week on changes the committee made at our request to H.B. 1189 by Rep. Louise McBee (D-Athens) and others which would establish a tax-advantaged savings program for college students.  The amended bill would allow banks to participate in the program through relationships with their customers.  Our thanks to Committee Chairman DuBose Porter (D-Dublin) and Rep. McBee for accommodating our amendments.  The bill authorizes accounts to be established that would be exempt from state income tax and taxed at the student rate when the withdrawals are made for college expenses.  As currently drafted, the annual maximum contribution would be $5,000 and the total maximum allowed in the account would be $100,000. 


McBee
Porter

Housekeeping Bill Advances


Gingrey

The Banking Department’s annual housekeeping bill, H.B. 1231, was reported out of the Senate Banking and Financial Institutions Committee this week and is expected to be considered by the full Senate soon.  The bill would incorporate many of the changes necessary because of the passage of the federal Gramm-Leach-Bliley Act, more commonly known as the Financial Modernization Act, S. 900.  The bill will give financial institutions more flexibility in offering financially-related products.  Sen. Phil Gingrey (R-Marietta) will be handling the bill in the Senate.

GBA Opposes Bankruptcy Exemption Increases


Holland

H.B. 703 by Rep. Ray Holland (D-Ashburn) would eliminate many of the standard federal bankruptcy exemptions and replace them with one, larger exemption that could be taken by both spouses even though only one spouse was involved in a bankruptcy.  GBA has informed Rep. Holland of the federal bankruptcy reform legislation being considered and suggested that his bill should be held until another year for consideration. 

Sale of Insurance


Bannister

H.B. 656 by Representatives Bannister, Walker, Parrish, Floyd, Maddox, Henson and others.  Repeals requirement that a financial institution affiliated insurance agency be physically located in a town with a population of 5,000 or less.   An amendment added by the House would prohibit banks from selling title insurance after January 1, 2000.  A substitute bill was reported out of the Senate Banking and Financial Institutions Committee where the title insurance amendment was changed to a January 1, 2001 effective date.  GBA supports the bill and will continue to negotiate on the title insurance language.

Venue


Martin

H.B. 1346 by Representative Martin, Bordeaux, Allen, Stuckey and Teper.  Provides that a corporation authorized to do business in this state shall be subject to venue in civil cases where the corporation maintains its registered office; in contracts cases in the county where a contract was to be enforced if the corporation has an office and transacts business in that county; in actions for torts where the cause of action originated if the corporation has an office and transacts business in that county; and in garnishment proceedings where the corporate office is located or place of business where the defendant is employed.  Also allows for motion by one of the parties to transfer an action to another court subject to approval by the trial court.  The bill was amended to include favorable language giving businesses more choice about where litigation was tried thereby making the bill somewhat more palatable.  Passed House, pending in Senate Judiciary Committee.  GBA is monitoring.

Perfection of Security Interests in Motor Vehicles


Powell

H.B. 1364 by Representatives Powell and Parham.  Provides for the perfection of security interests in motor vehicles by delivery to the commissioner or county tag agent the existing certificate of title and an application for a certificate of title or a notice of security interest on forms prescribed by the Department.  Passed House; pending Senate Finance and Public Utilities Committee.  GBA supports.

Deposit Account Fraud


Borders

H.B. 1257 by Representatives Borders, Shaw and Stallings.  Expands definition of financial institutions in criminal code to include ‘a national bank, a savings bank, a state or federal credit union, and a state or federal savings and loan association’ to aid in fraudulent check prosecution.  The GBA is supporting these efforts by the District Attorney’s association.  The bill was reported out of a House Banks and Banking Subcommittee this week.  GBA supports.

Preneed Funeral Service Contracts


Polak

S.B. 431 by Senator Polak.  Requires that funds deposited for preneed funeral contracts be held in a financial institution insured by the FDIC. Most of these funds are now held in trust accounts and some do not qualify under Georgia law.  The bill was amended in a subcommittee to clarify some of its provisions and has been reported out of the Senate Banking and Financial Institutions Committee.  GBA is monitoring.

Low-income Housing Tax Credits


Buck

H.B. 272 by Representatives Buck, Royal, Coleman, Heard, Jamieson and Stancil.  Creates state tax credits for the development of low-income housing.  Passed House and Senate.  Awaiting signature by the Governor.

Boat Titling

S.R. 569 by Senators Starr, Walker and Dean.  Creates a study committee to look into the need to title boats.  GBA supports the concept.

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.  Subsequent issues will be mailed on alternate Fridays except when the legislature is in recess.  On Fridays that the Update is not mailed, GBA’s LegisFAX will be sent via fax to all CEO’s, Contact Bankers, Bank Counsel Section members and those interested in tracking issues on a weekly basis. The electronic version of both the Legislative Update and the LegisFAX will be sent by e-mail to those on our e-mail list.  The ‘State Issues’ section of GBA Online, GBA’s home page at www.gabankers.com, 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’s Lobbyists at the Capitol

The lobbying team for the GBA will be at the Capitol full-time throughout the session.  If you need to get in touch with any of them on a particular issue, several ways are available. Call the main number at the GBA, (404) 522-1501, or leave a message on their direct voice mail, or send them an e-mail. They will get back to you at the earliest opportunity.

Joe Brannen, Direct phone, (404) 420-2026

Elizabeth Way, Direct phone, (404) 420-2027

Don Browne, Direct phone, (404) 420-2021

Dan Thomason, Direct phone, (404) 420-2016

The electronic version of GBA's Legislative Update will be published regularly during the 2000 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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