GCUA is pleased to share that three key issues for the industry saw positive movement this week in the state Legislature. And while there’s still a long way to go with multiple innate hurdles to become law, the below bills are still alive in the process:
Operational Improvements for Credit Union Charter: HB 185 by Rep. Bruce Williamson (R-Monroe) passed the full House on February 26th. This proactive bill contains multiple provisions for credit unions that 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 now moves to the Senate, and GCUA will continue to engage legislators on the need for the issue.
Encouraging Savings: This week there was quick work to amend HB 193 by Rep. Emory Dunahoo (R-Gainesville) to keep the bill moving forward, with the bill being sent out of House Rules on February 25th and back to House Banking Committee for an amendment and vote on February 27th. 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 amendment included was to strengthen the bill and make it explicitly clear that it was not “gambling,” and GCUA will continue to lobby legislators to help move the bill forward. As of press time the full House had it on their debate calendar for a vote.
Verbal Cancellation of a Guarantee: On February 26th the Senate Banking Committee passed (after more debate) 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. GCUA spoke in favor of the bill at the hearing, and will be on guard as the bill is likely to see attempts to amend in the process. We will continue to speak with legislators to help move it forward to protect the lending environment in Georgia.
