State Legislative Session Past Crossover Day!

The state legislative session passed a significant milestone this week with Crossover Day, the deadline at the state Capitol where a bill must make it at least halfway and pass its originating chamber (House bills pass the House, Senate bills pass the Senate). As such, it equates to long hours, as bills are debated through the evenings with many amendments in flux up until midnight on March 7^th.

• Auto Dealer-Franchisee Relationships: On March 5^th the full Senate passed SB 122 by Sen. John Kennedy (R-Macon); it seeks to make several changes to the way auto dealers and franchisees interact with each other as well as how they protect data. And while it’s narrowly focused, it is monitored closely to ensure that what they are seeking doesn’t affect lending.
• Boat Titling: On March 5^th the full House passed HB 314 by Rep. Ron Stephens (R-Savannah), which seeks to create a boat titling procedure in Georgia regulated by the Department of Natural Resources. GCUA will stay engaged in the process; however, the Legislature has considered boat titling for more than 20 years without a successful final passage.
• Habitat for Humanity: On March 4^th the original language from HB 313 by Rep. Spencer Frye (D-Athens) was moved forward in the House as HB 344 by Rep. Matthew Gambill (R-Cartersville).  This bill seeks to address a property tax issue for Habitat for Humanity and how its properties are assessed before they are turned over to the new owners. And while narrow in scope, it is monitored as it opens up sections of law that pertain to lending, nonprofits and tax exemptions.
• HOA Clearance Letters: SB 178 by Sen. PK Martin (R-Lawrenceville) seeks to regulate what information HOAs share in letters requested for mortgage closings, and what fees could be charged, and is anticipated to be hotly contested in the process with multiple versions. This bill was tabled on March 7^th and may come up again next year. It will be monitored closely to ensure that the amendment GCUA secured to include requirements for Fannie Mae loans added to the “list” of items that can be considered standard requests remains, as well as that credit union operations are protected and HOA interests do not insert language to supersede the lien status of the lender in the midst of the debate.
• Landlord Tenant Provisions: HB 346 by Rep. Sharon Cooper (R-Marietta) passed the full House on March 5^th. This bill seeks to outline protections for tenants by preventing retaliation (or evection) by a landlord in the event of a complaint. This bill is directed at “slumlords,” but is monitored closely to ensure that it does not wade into financial issues.
• Lien bills: There are multiple bills that make changes to the laws surrounding various liens, with HB 387 by Rep. Eddie Lumsden (R-Armuchee), which addresses liens for private nonprofit fire departments on properties, and HB 492 by Rep. Bonnie Rich (R-Suwanee), which seeks to change how dispossessory writ of possessions are utilized for evictions. Both of these bills passed the full House on March 5^th and continue in the process, and will be monitored to ensure they do not impact foreclosure processes.
• Mass Tax Exemption Review: On March 1^st the full Senate passed a large tax-exemption review with SB 120 by Sen. John Albers (R-Alpharetta). This bill calls for an analysis and cost-return on 53 separate income and sales tax exemptions and credits. This bill will be monitored closely through the process to ensure that credit unions are not impacted.
• Mortgage Licensing Exemptions: On March 4^th the full House passed HB 212 by Rep. Clay Pirkle (R-Ashburn) to carve out an exempt for mobile home dealers if they are not facilitating a mortgage. And while it’s directed at federal law changes, the committee passes a more narrowly defined version of the bill to ensure it did not create unintended consequences for the lending environment in the state. It will continue to be monitored in the process to ensure that it does not bring Georgia law out of sync with federal requirements and accidentally bring more compliance burdens onto credit unions.
• PACE Financing: SB 162 by Sen. Matt Brass (R-Newnan) seeks to allow a finance arrangement available in over 20 states by allowing home improvement loans via tax assessments that are tied to the property and not the individual. This bill in its present form seeks to expand the current schematic to include disaster improvements as well as broadband access, and this language was added and quickly passed committee on March 4^th. GCUA has already engaged with stakeholders in the process to address the legislation to help protect the lending process in Georgia. Stay tuned!
• Peer to Peer Car Sharing: On March 4^th the peer to peer car sharing regulation with HB 337 by Rep. Shaw Blackmon (R-Bonaire) passed two separate Regulated Industries hearings and then the full House on March 7^th. GCUA continues to be engaged in the process to ensure that the car is covered by insurance throughout the entire time; amendments are anticipated as it travels in the House.
• Reciprocal Deposits: SB 157 by Sen. John Kennedy (R-Macon) seeks to allow deposit placement services as an alternative to collateralization of public deposits. As drafted the bill is narrow in its approach, and seeks to allow Georgia to be the last of the 50 states to allow this option. This bill passed the full Senate on March 4^th.
• Self-Settled Trusts: This year’s effort of others to allow self-settled trusts in Georgia (as it has come up for several years now) are both SB 186 by Sen. Bill Cowsert (R-Athens) as well as HB 497 by Rep. Bonnie Rich (R-Suwanee). These bills seek to permit this new form of trust account to be offered in Georgia and are monitored closely to ensure that creditors have the capability to claim on assets that were included in deciding on a loan (if the assets were placed under the trust afterwards). The Senate Banking Committee passed SB 186 on March 4^th with the House Banking Committee not addressing it in time for Crossover Day. SB 186 passed the full Senate on March 7^th and continues in the process.
• TAVT Changes: The full House passed this year’s bill on TAVT changes on March 5^th: HB 365 by Rep. Shaw Blackmon (R-Bonaire). This bill seeks to put autos sold at used and new dealers on the same process for calculating fair market value as well as lowering the amount of tax required. It will likely have MANY changes in the process and will be monitored closely.
• Towed Vehicles: GCUA continues to be engaged on a bill that seeks to overhaul the entire section of law that pertains to towed vehicles: HB 307 by Rep. Alan Powell (R-Hartwell). The original version of the bill lengthened the period of time in which a towing facility would notify a lienholder to 20 days; however, GCUA has been working closely with Rep. Powell and interested parties to shorten this to keep credit unions and other from having a delay in realizing that a vehicle had been impounded. The bill passed the full House on March 7^th and may still change several times in the process; stay tuned!