The activity at the state Capitol truly is a game of inches. Success cannot be seen at any given moment as it takes significant time to push an issue forward bit by bit, and the vast majority of bills that are introduced do not survive the process to become law. Any bill, regardless of how positive, can be derailed by issues related or unrelated to the actual focus of the bill! And while there are still MILES to go in the process, from a credit union perspective, several proactive bills saw a few inches gained this week:
Operational Improvements for Credit Union Charter: HB 185 by Rep. Bruce Williamson (R-Monroe) took a step forward when it passed the House Banking Committee on February 20th. This proactive bill contains multiple provisions for credit unions that were identified during the summer of 2018 when the credit union task force dedicated specifically to generate ideas for potential improvements to the credit union state law. These improvements include the areas of operational issues when there’s a merger or purchase of a bank, outlining a clear process for member expulsion, and numerous changes where one is clarifying processes and definitions, including that of purchasing/selling loan participations. The bill now moves to the House Rules Committee for consideration, and GCUA will continue to engage legislators on the need for the issue.
Encouraging Savings: After much lobbying by GCUA and the bill sponsor, HB 193 by Rep. Emory Dunahoo (R-Gainesville) passed the House Banking Committee in the February 20th hearing. This bill was introduced to allow Georgia financial institutions, if they so choose, to offer savings accounts that include a “sweepstakes” component (such as the Save to Win program). This legislation is pursued to give credit unions an option to help encourage savings among members and make a dent in the number of individuals who cannot address a $400 emergency. GCUA will continue to speak with legislators on the benefits of adding such a capability for Georgians to develop savings habits, and the bill now goes to House Rules Committee for consideration.
Verbal Cancellation of a Guarantee: On February 19th the Senate Banking Committee continued the debate on SB 37 by Sen. William Ligon (R-Brunswick), which is in reaction to a Georgia Court of Appeals decision that was in conflict with the longstanding legal footing surrounding guarantees (Moye decision). This decision allowed for the recognition of a verbal (and not written) cancellation of a guarantee, and could have impacts on lending. This bill seeks to ensure that any commitment (and change to or cancellation of said agreement) to lend, answer for a debt, default, etc., must be done in writing. The hearing made progress, and amendments and debate are anticipated as of press time. GCUA will stay engaged on the issue to help move it forward to protect the lending environment in Georgia.
Liability Protection and Clear Operations for Funeral Home Payments: After months of dialogue, legislation is under way to include liability protection and a clear process with funeral home payments. Last year GCUA continued to engage Rep. Rick Williams (R-Milledgeville) on his previous attempts to expedite the payment of funeral expenses when an individual dies without a will and without a joint member on their account. Presently there is a 90-day waiting period in which the funds must be held before payment, and in 2018 Williams sought to abolish the waiting period, as well as instruct financial institutions to pay funeral home expenses first before any family member. However, Rep. Williams has been very open to working with the industry to ensure that what is pursued this year is positive for credit unions. He has modified his original effort to remove the onerous language from 2018, and has included liability protection for the financial institution as well as a clear system in which to apply for payment.
