State Session Final Wrap Up

There were over 2,300 pieces of legislation introduced during this first year of the two-year cycle of the state legislative session. Out of all these bills, there were over 300 that required active monitoring, lobbying and efforts on behalf of credit unions due to their potential impact to the industry … in addition to pursuing positive legislative initiatives. And with 236 state legislators, 949 active lobbyists, and more than 3,500 groups represented by a lobbyist down at the state Capitol … credit unions are not alone by a long shot. However, 2017 was a positive year for the issues addressed on behalf of the industry:

• Abandoned Mobile Homes: HB 381 by Rep. John Corbett (R-Lake Park) sought to provide property owners a legal method of disposing of abandoned derelict mobile homes that are titled to someone other than the property owner, and has been monitored closely to ensure that proper notice is provided to any lienholder prior to disposal – something Rep. Corbett wants to protect for financial institutions. This bill DID NOT PASS and was held over for action in 2018.
• Anti-Financial Discrimination for Firearms Dealers: HB 292 by Rep. Rick Jasperse (R-Jasper) was the bill that was amended with the anti-financial discrimination language from 2016, with the amendments that GCUA worked to procure to protect credit unions. These credit union amendments state that it is not considered discrimination to follow law, regulation, or for denial of service due to membership restrictions … as well as preemption language that (so that if it does not apply to federal charters, state charters would not apply either). The bill PASSED the legislature by the final week with the credit union amendment language intact.
• Anti-Terrorism: SB 1 by Sen. Bill Cowsert (R-Athens) was a Senate Leadership priority bill covering broad anti-terrorism provisions. This bill had been monitored in the process as it had granted new powers of the Attorney General to subpoena financial accounts and transaction data. The bill DID NOT PASS by the final week and failed in a floor vote in the House, however it is anticipated again in some form during 2018.
• Bankruptcy Law Changes: SB 87 by Sen. Jesse Stone (R-Waynesboro) seeks to adjust the bankruptcy code on how certain debts are discharged. This bill DID NOT PASS, however the provisions of this was amended onto the below SB 71 which did pass.
• Bankruptcy Law Changes – Health Savings Accounts: SB 71 by Sen. Jesse Stone (R-Waynesboro) seeks to add health savings accounts to those that are protected in bankruptcy proceedings. This bill PASSED with the above language from SB 87 added to it.
• Blighted Properties: HB 434 by Rep. Wendell Willard (R-Sandy Springs) was a bill on eminent domain directed at streamlining how counties and cities seize blighted properties and had been monitored closely through the process to ensure that lienholders are not negatively impacted. This bill PASSED.
• Boat Titling: HB 357 by Rep. Ron Stephens (R-Savannah) attempts to institute a boat-titling process in Georgia which would be managed by the Department of Natural Resources to coincide with the registration process. This bill DID NOT PASS; however, action is anticipated in 2018.
• Board Member Protections/Business Judgment Rule: HB 192 by Rep. Beth Beskin (R-Atlanta) strengthens the business judgment rule for financial institutions and general business – specifically to strengthen the protections of board members and officers against charges of “ordinary negligence” in their decision-making process. GCUA has been heavily involved in pursuing this credit union priority bill, this bill PASSED.
• Checks: SB 198 by Sen. Elena Parent (D-Decatur) sought to prevent those small dollar lenders that fall under the Georgia Industrial Loan Act (and not credit unions) from mailing live checks that create a contract once they are cashed. It was monitored to ensure it does not inadvertently wrap in general credit card operations. This bill DID NOT PASS.
• Credit Checks in Hiring Practices: HB 182 by Rep. Winifred Dukes (D-Albany) sought to limit how employers utilize credit reports in the hiring process, and was monitored to protect credit union hiring practices. This bill DID NOT PASS.
• Credit Union Operational Improvements: credit union priority bill HB 143 by Rep. Bruce Williamson (R-Monroe) PASSED. This is the Department of Banking and Finance’s housekeeping legislation, and contains multiple pro-credit union provisions to help improve operations and alleviate compliance burdens. These improvements were a direct result of the Department’s dialogue with a credit union task force that met in the summer of 2016.
• Data Breach: HB 499 by Rep. Sherri Gilligan (R-Cumming) along with her previous version HB 82 sought to expand the consumer notice provisions in law where there is a breach of data, specifically to include instances where confidential data was provided to an unauthorized individual. These bills DID NOT PASS; however, in discussions with Rep. Gilligan she will address the data security issue in 2018.
• Deficiency Judgements: SB 86 by Sen. Jesse Stone (R-Waynesboro) sought to regulate deficiency judgments and levies on real property. This bill DID NOT PASS; however, it will be addressed during the off session in pending summer hearings of the Senate Judiciary committee, and will be monitored closely to ensure that credit unions are not negatively impacted.
• Defining Payment: HB 174 by Rep. Eddie Lumsden (R-Armuchee) clarified how insurance payments can be made, and delved into the specific details of financial institutions, accounts, and payments. This bill PASSED, and thanks to Rep. Lumsden for ensuring that credit unions were taken care of fully in this bill.
• Disciplinary Actions on Real Estate Appraisers: HB 39 by Rep. Alan Powell (R-Hartwell) sought to clarify the penalties for any real estate appraiser who are found guilty of code of conduct violations, while providing the flexibility to address extraneous situations. This bill PASSED and was monitored to ensure that there are no changes that would impact mortgage lending operations at credit unions.
• Electronic Titling: HB 412 by Rep. Timothy Barr (R-Lawrenceville) sought to require auto dealers to only utilize electronic titling, and was closely to ensure that it is not expanded to financial institutions. This bill PASSED, and Rep. Barr was helpful with the concern to protect credit unions from being wrapped into the requirement.
• Foreclosures: SR 481 by Sen. Jesse Stone (R-Waynesboro) sought to create a study committee to review the treatment of deficiency judgments and foreclosures during the off session/summer. This bill DID NOT PASS; however, hearings still are likely on the topic.
• Foreclosure Reversal: HB 27 by Rep. Billy Mitchell (D-Stone Mountain) sought to provide a debtor the right to cure/reverse a foreclosure if the previous fees and back payments have been made current. This bill DID NOT PASS, and was monitored closely as it is an ideal vehicle for other changes to the entire foreclosure process.
• Garnishments: SB 194 by Sen. Jesse Stone (R-Waynesboro) sought to make technical adjustments to the garnishment law that passed in 2016, and was monitored closely for any negative changes. It DID NOT PASS, but additional action on the bill is anticipated in 2018.
• Homeowner Associations: HB 203 by Rep. Brian Strickland (R-McDonough) sought changes to homeowner/condo association laws to provide the ability of property owners to take control over defunct associations (found in developments that were not completed due to a builder closing). The bill DID NOT PASS; however, the contents of the bill were inserted into an unrelated bill SB 46 in the late hours of the last week with DID PASS. This issue was monitored closely to ensure the bill did not change into a lien-superseding attempt.
• HOA Clearance Letters: HB 410 by Rep. Sam Teasley (R-Marietta) sought to regulate fees charged by homeowner associations for a clearance letter at a mortgage closing. This bill DID NOT PASS, but action is anticipated in 2018. GCUA was in dialogue with parties pursuing the bill as well as the homeowner association interests to help protect credit union operations from being implicated in their search for a “compromise”.
• Homeowner Solicitations HB 197 by Rep. Sam Teasley (R-Marietta) sought to regulate entities that attempt to solicit money from new homeowners by requiring any business trying to sell a copy of the instrument conveying real estate prominently states that it is in fact a solicitation (and not a part of their required documents). The bill PASSED.
• Ignition Interlock Devices: SB 212 by Sen. John Kennedy (R-Macon) sought to regulate the use of ignition interlock devices as they apply to DUIs, and was watched closely in the legislative process to ensure that the reach of the legislation only regulates the provisional licenses tied to interlock devices, and not the devices themselves, to protect second-chance auto lending programs. The bill DID NOT PASS and was held over for action in 2018.
• Motor Vehicles: HB 150 by Rep. Alan Powell (R-Hartwell) sought to add toll debts to those that can be recouped through the Department of Revenue through its debt setoff collection via “garnisheeing” income tax refunds. This bill PASSED and was monitored closely to ensure that it did not change to implicate the title of the vehicle and auto loan.
• Notary Publics: HB 120 by Rep. Andy Welch (R-McDonough) sought to overhaul notary public provisions, and is monitored to protect credit union operations. The bill DID NOT PASS but action is anticipated in 2018.
• Power of Attorney Reform: HB 221 by Rep. Chuck Efstration (R-Dacula) sought to create a uniform procedure for the power of attorney process, and to create a stronger ability for the authorities to investigate and prosecute financial elder abuse and fraud. GCUA was in dialogue with Rep. Efstration to ensure that it did not create liability for credit unions. The bill PASSED.
• Prized Linked Savings: SB 134 by Sen. David Shafer (R-Duluth) sought to institute the ability for credit unions and banks to offer prize-linked savings accounts. This bill DID NOT PASS as it faced significant hurdles in the final days due to factors outside of the merits of the issue, as many bills did in the last two days of the session and stalled due to issues with other bills. However, further action is anticipated in 2018.
• Property Tax Notices: HB 204 by Rep. Brett Harrell (R-Snellville) originally sought to ensure that tax bills contain only taxes and do not contain any fees for ancillary services. However, the bill was drastically changed to exempt some hotels from the $5 fee towards the end of the session, and DID NOT PASS. This issue is anticipated again in 2018.
• Real Property: HB 76 by Rep. Rick Jasperse (R-Jasper) sought to enhance the law that changed last year on electronic filing of plats as well as condo plans, and was monitored for multiple property and lien superseding issues. It PASSED cleanly without any amendments to impact credit unions.
• Regulatory Process Review: SB 2 by Sen. Mike Dugan (R-Carrollton) was another of the Senate Leadership’s priority bills intended to quicken the process by which new businesses are authorized to operate in Georgia. Of note to credit unions, the original bill sought to ensure that any examinations are done with ample notice – and that any regulatory rule is approved by the Attorney General’s office. The most recent version removed the Attorney General provision, but would require state agencies to report on the economic impact (to the state) for any rule change. However, the bill DID NOT PASS and is anticipated again in 2018.
• Regulation: SB 67 by Sen. John Albers (R-Alpharetta) was another bill to alter how rules and regulations are created (and eliminated), and while the intent was to limit regulations, it painted with a broad brush and could have the reverse effect. The bill DID NOT PASS.
• Self-Settled Trusts: HB 441 by Rep. Barry Fleming (R-Harlem) sought to permit a new form of trust account to be offered in Georgia, and was monitored closely to ensure that creditors would receive notification if assets were placed under the trust. The bill DID NOT PASS and was held over for possible action in 2018.
• Sales Tax Exemption Changes: HB 93 by Rep. John Corbett (R-Lake Park) sought to alters how businesses that are exempt from sales tax recoup any tax that should not have been paid. This bill DID NOT PASS, and was monitored to ensure that it did not implicate credit unions.
• Sales and Use Tax Expansion: HB 61 by Rep. Jay Powell (R-Camilla) sought to expand sales and use tax to online commerce transactions that are not being captured presently. This bill DID NOT PASS, and was monitored to ensure that credit unions were not impacted.
• Sick Leave: SB 201 by Sen. Butch Miller (R-Gainesville) sought to provide that employers that offer sick leave permit employees to utilize it to care for an immediate family member, but does not mandate that the leave be provided. This bill PASSED.
• TAVT: HB 327 by Rep. Jay Powell (R-Camilla) sought to make changes to the TAVT law for autos, including how the fair market value of used cars is calculated. The bill seeks to correct some issues in how leases are taxed, and places used cars at the same tax calculation as new cars (the higher of book or retail price). The bill was amended onto HB 340 by Rep. Shaw Blackmon (R-Bonaire) with how TAVT tax is calculated on used vehicles to retail sale minus the trade-in value. The bill was shrunk down to one paragraph after midnight on the last day of the session to only pertain to leased vehicles and PASSED. It was watched closely to protect credit union auto lending operations, and the changes pursued that did not pass are anticipated in 2018.
• Tax Bills: in addition to the ones highlighted, there were over 110 more tax bills that were monitored on behalf of credit unions during the session. These ranged from bills and discussions on income tax, exemptions, sales and use tax, and the intangibles tax.
• Tax Executions: HB 375 by Rep. Brad Raffensperger (R-Johns Creek) changes minor language surrounding the delivery of tax execution notices, and repeals the ability for a tax commissioner to charge a personal fee for the tax executions, and was monitored to protect the priority lien status of credit unions in mortgage lending. This bill PASSED.
• Tax Exemption Study: SR 222 by Sen. John Albers (R-Alpharetta) sought to create a study committee in the off session to review all tax exemptions in Georgia, and PASSED. It will be monitored closely to protect credit unions.
• Tax Liens: HB 337 by Rep. Bruce Williamson (R-Monroe) sought to create a statewide tax-lien registry, and was monitored as previous discussions wrapped in the possibility of all liens. However, as drafted, it will apply only to tax liens … and while tax liens are always superior to financial institution liens, it was monitored closely to protect lending operations at credit unions. The bill PASSED.
• Tax Reform: HB 329 by Rep. Jay Powell (R-Camilla) sought to change the state income tax rate to 5.4%, and while it passed the House and Senate, it stalled and DID NOT PASS in the final hours of the last day in the conference committee process. The issue is expected again in 2018.
• Title-Pawn Transactions: HB 353 by Rep. Brett Harrell (R-Snellville) was a bill seeking to allow title pawn shops to offer installment loans that had failed on the House floor on crossover day due to a fight between the industry and the Georgia Industrial Loan Act interests, and the title-pawn industry lobbyists actively pursued opportunities to add the topic to another bill up until the final hour of the session … holding up the above SB 134 with an amendment to limit GILA entities from selling insurance and being located within a 3-mile radius of a military installation. The amendment was attempted on several bills, but the above HB 353 DID NOT PASS. It was monitored to ensure that it does not inadvertently wrap in credit unions and impact their ability to offer insurance products, or be located on a base … and these issues are anticipated again in 2018.
• Towed Vehicle Notification: HB 417 by Rep. Wendell Willard (R-Sandy Springs) sought to streamline the notification process for when a car is towed. GCUA engaged the bill sponsor as well as the towing lobby to ensure that the timeframe in which a lienholder can obtain the vehicle was not altered (and the collateral not lost). The bill DID NOT PASS, nor did the attempts to add the language to other bills in the last days of the session.
• Trust Revisions: HB 121 by Rep. Chuck Efstration (R-Dacula) was one of several bills that sought to reform the trust code, this one as it applies to minors, and was monitored to protect against unwanted amendments that could impact credit unions. It DID NOT PASS but is anticipated again in 2018.
• Wire Transfer Fees: HB 12 by Rep. Jeff Jones (R-Brunswick) and his substitute version HB 66 sought to require a fee on all wire transfers and would create added compliance burdens as well as operational disparities between state and federally chartered credit unions. GCUA has been in communication with Rep. Jones on the concerns his bill would create since October, and his substitute version was an effort to exempt credit unions. However, it still held concerns as drafted and the bill DID NOT PASS.