Legislature Heating Up

Senate Committee Holds Hearing on ATM Bill

The Senate Banking and Financial Institutions Committee held a public hearing this week on S.B. 513, a bill by Senator John Wiles (R-Marietta) which would mandate that every outside ATM be equipped with a button to be used in an emergency to call the local 911 office.  The Committee heard testimony from both Sen. Wiles and Mike Boyd, the widower of the woman who was the victim of a kidnapping and who was forced to make an ATM withdrawal.  Mrs. Boyd was killed when her vehicle, being driven by the kidnapper, was hit by another vehicle.  The perpetrator was subsequently shot and killed by a bystander.  Sen. Wiles told the committee he had backed down from introducing another bill requiring reverse PIN technology in response to our pointing out that technology cannot work with the current international 4-digit PIN standards.  He went on to discuss the concept of 911 panic buttons and pressed the committee to report his bill.  Mr. Boyd told the committee the current bill should be passed, but implored the committee to not give up on the reverse PIN legislation and to pass that bill next year.  Because their testimony was so lengthy, the committee did not hear testimony from the industry.  At this point, it has not been determined what next steps will be taken, but we will keep you apprised.  We have told Sen. Wiles we cannot support his bill for three reasons:

• Emergency 911 ATM buttons could actually create an unsafe environment for bank customers.

• There is no evidence to support the notion 911 emergency buttons serve as a deterrent.

• The legislation would most likely only apply to ATMs owned by state-chartered banks.

Senate Passes Title Pawn Bill

The Georgia State Senate overwhelmingly passed a title pawn bill this week.  S.B. 535, introduced by Senate Banking and Financial Institutions Committee Chairman Bill Hamrick (R-Carrollton), adds more consumer protections for people who choose to pawn the title of their vehicle for short term cash needs.  Among other things, the bill would require a title pawn dealer to return to the individual any proceeds in excess of the amount owed if the vehicle is sold to satisfy the debt. Similar legislation has been reported out of the House Banks and Banking Committee and is pending before the House Rules Committee.  GBA has been monitoring this issue as we have been concerned about the possibility of usury issues being raised.
 

Action Taken on Several Bills GBA is Monitoring

A number of bills received action this week that GBA has been monitoring:

• Title Insurance Bill Held in Subcommittee.  H.B. 1356 by Representative Dan Lakly (R-Peachtree City) and others prohibits anyone other than an attorney from selling title insurance.  The bill was heard in a subcommittee this week and the decision was made to hold the bill for the remainder of the session.  There is a provision in current law providing a limited exemption for banks selling title insurance. While this bill would not have removed that exemption, it would have created a conflict in the code.

• Mortgage License Exemption Bill Reported.  S.B. 505 by Senator Don Balfour (R-Snellville), and others provides for the exemption from licensing as a mortgage broker or lender if the company is a financial institution and the individual is an exclusive agent for the financial institution and the institution takes responsibility for the individual's actions. In testimony before the Senate Banking and Financial Institutions Committee this week, Sen. Balfour stated the bill was for PrimeAmerica, a Citigroup Subsidiary, with headquarters in his district.  He explained that similar legislation had already passed in 48 other states.  The association representing the mortgage brokers testified against the bill.  The committee voted to report the bill unanimously.

• Development District Bill Clears Committee.  S.B. 414 by Senator Cecil Staton (R-Macon) and others creates infrastructure development districts throughout the state and provides for financing alternatives to fund various programs.  The bill was reported out of the Senate Committee on Economic Development this week and is pending in the Senate Rules Committee.

• Life Insurance Proceeds Bill Passes House.  H.B. 1304 by Representative Tom Knox (R-Cumming) provides, among other things, that neither the cash surrender values nor the proceeds of life insurance policies and annuity contracts shall be liable to attachment, garnishment, or legal process in favor of any creditor of the person for whose use or benefit the policy or contract was executed.  Language in the bill appears to protect creditors who have assignments.

Staton

Knox

House Banks and Banking Committee to Meet

Chairman James Mills (R-Gainesville) has called a meeting of the House Banks and Banking Committee for next Tuesday.  The General Assembly will not be in session that day as it is being reserved for committees to hold hearings in anticipation of the Crossover Day mentioned above.  Bills slated to be heard are:

• H.B. 1447 by Representative Tommy Benton (R-Jefferson ) and others.  The bill would prohibit  persons transacting a mortgage business, so as to prohibit the act of extending a loan to a person whom the broker or lender knows or should know to be in this country illegally.

• H.B. 1280 by Representative Tyrone Brooks (D-Atlanta) and others.  The bill would prohibit the state from using a depository which has any direct or knowledge of indirect loans to certain entities in the Republic of Sudan.

• S.B. 535 by Senator Bill Hamrick (R-Carrollton) and others.  This is the title pawn bill mentioned above.

GBA Monitoring More Than Three Dozen Bills

The Georgia Bankers Association is following a number of bills carried over from the 2005 legislative session all those introduced in the 2006 session.  All the 2005 bills are eligible for consideration at any time and many are of serious concern.  We have substantially revised GBA's website and particularly the Government Relations area.  Please check this area frequently as we update the State Government Relations page daily while the General Assembly is in session.  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 2006 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