The state session is never certain, and there’s still a long, LONG way to go left for any bill in the process. Keeping momentum is key, and credit unions were fortunate this week to see positive movement on bills that would enact positive changes for the industry:
- Charter Enhancements: HB 185 by Rep. Bruce Williamson (R-Monroe) was heard in the Senate Banking Committee on March 12th; this bill creates operational improvements for the credit union charter. Multiple provisions contained in the bill were identified during the summer of 2018 by 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 to clarify processes and definitions, including that of purchasing/selling loan participations. The bill passed the committee after some questions on the provisions, and is now awaiting a full vote in the Senate.
- Encouraging Savings:On March 12th HB 193 by Rep. Emory Dunahoo (R-Gainesville) took one more step forward when it passed the Senate Banking Committee 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), and 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. The committee did not make any changes to the bill (the House had added an amendment to strengthen the bill and make it explicitly clear that it was not “gambling”), and it is presently in Senate Rules awaiting selection as of press time.
- Verbal Cancellation of a Guarantee: On March 11th the House Judiciary Subcommittee debated 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). GCUA testified in favor of this bill in the hearings as 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. GCUA has stayed engaged with the Georgia Bankers Association who brought this issue to the financial trades’ pre-session dialogue in the off session, and is a good example of how working in concert on legislative issues can benefit all financial institutions.
