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State Legislative Session Gains Steam

As of press time the state Legislature is meeting on the 11th day of the 40-day session, and is gearing up for what will likely be a hectic month.  The days are full of hearings on the various issues, with new bills introduced daily that are analyzed for potential impact (both positive or negative) on credit unions, and addressed in the halls of the Capitol with legislators.

Activity of interest from this week includes:

  • Verbal Cancellation of a Guarantee: On February 5th the Senate Banking Committee debated S.B. 37 by Sen. William Ligon (R-Brunswick), which is a bill that seeks to address a 2018 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 or cancellation of said agreement) to lend, answer for a debt, default, etc. must be done in writing.  More debate is anticipated in an upcoming hearing with potential changes in the process to move it forward, including to outline that the paperwork surrounding a guarantee may need to include both the lender and the guarantor.  However, this bill has a long way to go and will continue to be monitored closely to help move the issue forward in a manner that does not create compliance burdens on credit unions.
  • Transaction Processing: On February 6th the Senate Economic Development Committee heard from the American Transaction Processing Coalition on the various types of payment and prepaid cards, how they are utilized, the fees associated and the large presence of financial transaction processing companies in Georgia.  Seventy percent of all transactions are processed in this state, and the state Legislature is keen on keeping these industries located here.  While no legislation relating to this industry has been introduced, it is monitored closely to ensure that the operating environment for credit unions is not inadvertently impacted.
  • Judiciary Hearings: Year after year the one committee that credit unions consistently spend the most time with in monitoring issues is Judiciary, as it typically addresses bills on the foreclosure process, forfeiture actions, and multiple lending and lien issues.  This session continues that trend of high activity, as this week alone there have been multiple Judiciary hearings in both the Senate and House tackling several of the bills monitored on behalf of credit unions that touch liens, electronic filing fees, cancellation of contracts for military personnel.  This last issue, H.B. 25 by Rep. Dave Belton (R-Buckhead) was debated in two House Judiciary hearings this week.  This bill seeks to provide military personnel the ability to end contracts for cable, phone and gym memberships during active duty, and will continue to be monitored closely in the process to ensure it does not drift into lending.
  • Employment Issues: There have been several bills introduced as of late that seek to increase the minimum wage in Georgia, seek to prevent salary history from being used in the hiring process, and seek to alter contracts surrounding IT employees.  These issues are discussed not only in the halls with legislators, but with various coalition members as they could impact the overall business environment.

There are now more than 350 bills introduced as of press time; all are analyzed and those with potential impact to the industry are flagged, monitored and lobbied through the process.  To see all the bills monitored on behalf of credit unions, please access the legislative tracking site.

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