This week the state Legislature was in session through Wednesday, reaching only to day 7 of the 40-day schedule. And while the session has only knocked off a few “official” days, work has been in full swing on both session and non-session days. Much work is happening on issues of credit union interest to fine-tune bills before they are introduced, thanks to early intel and connections with legislators. These issues will be highlighted as they become “official” bills, but credit unions have had a productive first few weeks of the session, with at least two more months to go.
There were multiple hearings this week, with one of the large statewide issues passing the House Economic Development Committee on January 28th. GCUA was on hand for the hearing to expand rural broadband when the committee passed two of the bills on this issue: HB 22 and HB 23 by Rep. Penny Houston (R-Nashville). This is where the state is seeking to tap into the EMC and rural phone co-ops to encourage the distribution of broadband. These bills are being monitored closely to ensure that lending issues are protected and that there are no overreaching co-op issues.
In addition, there have been 290 bills introduced by January 30th, each of which has been analyzed for potential impact to credit unions. And while just a small fraction of bills actually makes it past the finish line and become law, it’s a long way to the end of the session and it behooves any organization to pay close attention to all the issues. Some of the new issues include:
- Verbal Cancellation of a Guarantee: In 2018 there was 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. To address this, Sen. William Ligon (R-Brunswick) introduced SB 37 to ensure that any commitment (and change or cancel said agreement) to lend, answer for a debt, default, etc. must be done in writing. This bill will be monitored closely and GCUA will stay engaged on the issue to help move it forward to protect the lending environment in Georgia.
- Tax Exemptions: There are more than 10 bills presently that seek to change laws on tax exemptions, credits, and the exemptions for nonprofits, and many more yet to come. These are all monitored closely for any negative amendments later in the session and to help protect credit unions in Georgia.
- Guardianship: Prior to the onset of the session Rep. Chuck Efstration (R-Dacula) shared that he would be seeking to make overreaching changes to the guardianship/ward law. His bill to do this, HB 70, is in the process of being analyzed to ensure that there are no unintended impacts to credit unions prior to his movement on the issue.
- Public Assistance (and Payments): HB 77 by Rep. David Clark (R-Buford) is a public assistance fraud deterrent bill, with references to EBT payment cards. These types of bills are monitored closely, as in previous years, they have been amended to attempt to force the owners of ATMs to police the use of public funds in various ways, or have placed unnecessary burdens on the broad category of payment cards in general. This bill will be monitored closely in the process.
- Improvement Zones: SB 20 was introduced by Sen. Michael Rhett (D-Marietta), and is this year’s version of a “banking improvement zone” bill. This issue has been introduced for the past several years with the intent of encouraging branches where there are none. It attempts to encourage cities and counties to utilize public funds as a quasi-incentive for banks, but is problematic in its application and the expectations it sets. It is watched closely as it is an attractive bill for other interests to take and use for negative bills that could impact financial institution law.
- Employment Law Issues: There have been several bills introduced that, if passed, would alter the employment law in Georgia ranging from anti-discrimination measures, to changes in hiring practices (such as using past salary history), and removing restrictive covenants for IT employees. Employment law issues are monitored closely, and this is where involvement with coalitions and the Georgia Chamber Government Affairs Council is helpful as well, as employment issues impact all of Georgia! These issues will continue to be monitored closely and addressed if and when they move.
- Insurance Issues: There are already several bills that touch the insurance industry; these are monitored on behalf of credit unions to ensure that they do not impact auto lending or general operations.
