Crossover week is when many bills die in the process, no longer able to continue on the long road to potentially being made into law. And as such, it’s a frenzied time period leading up to that deadline with multiple issues. In the midst of all the defensive activity on the bills in play this week, there was positive action on bills to improve the operational environment, expand what services can be offered, and ensure liability protection for the industry:
- Encouraging Savings: On Friday March 1st HB 193 by Rep. Emory Dunahoo (R-Gainesville) passed the full House before the drama of crossover day. 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.
- Verbal Cancellation of a Guarantee: On March 1st the full Senate passed 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. The hearing made progress, and amendments and debate are anticipated as of press time. 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.
- Liability Protection & Clear Operations for Funeral Home Payments: HB 490 by Rep. Jason Ridley (R-Chatsworth) passed the House Banking Committee on March 4th and then the full House on March 7th. This is the legislation that GCUA and others have engaged to include liability protection and a clear process with funeral home payments. Last year GCUA kept dialogue open with Rep. Rick Williams (R-Milledgeville) on his previous attempts to expedite the payment of funeral expenses (when an individual dies without a will and without a joint member on their account). Presently there is a 90-day waiting period in which the funds must be held before payment, and in 2018 he sought to abolish the waiting period and instruct the financial institutions to pay funeral home expenses first before any family member. However, Rep. Williams has been very open to working with the industry to ensure that what is pursued this year is positive for credit unions. He has modified his original effort to remove the onerous language from 2018, and has included liability protection for the financial institution as well as a clear system in which to apply for payment.
Another bill positive for the industry, HB 185 by Rep. Bruce Williamson (R-Monroe) is still in play as well as it passed the full House on February 26th and is awaiting a hearing in the Senate Banking Committee as of press time. This bill creates operational improvements for the credit union charter, with multiple provisions for credit unions 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. And while there is a long road for all bills, we are fortunate to have these continue to move forward in the process.
