State Session Winding Up for the End

The state Legislature has now met for 32 of the 40 official session days, with the remaining days spread out over the next two weeks and two days. Tempers and tensions are high among legislators and lobbyists alike, and there will be much effort and energy leading up to the final hours of the last day. And there were several issues that did not move forward or see action this week, it is anticipated that next week will see much more action. In the midst of the post-crossover day crunch, though, credit unions saw some very positive movement this week on bills that make changes for the better for the industry. To see all 300-plus bills of note to the industry please click here for the tracking system, but in addition to the movement on the three positive bills below is some of the activity of note:

• Appraisal Management Companies: On March 12^th the Senate Regulated Industries Committee heard HB 192 by Rep. Alan Powell (R-Hartwell), which seeks to bring Georgia law on regulating appraisal management companies into compliance with federal statute. GCUA worked with Rep. Powell last year on this issue to correct language that did not contemplate credit unions’ ever being engaged in this business, and while the bill did not pass last year, this year’s version retains the credit union language.
• Auto Dealer-Franchisee Relationships: On March 12^th SB 122 by Sen. John Kennedy (R-Macon) passed the House Motor Vehicle Committee with some technical amendments. The bill seeks to make changes to the way auto dealers and franchisees interact with each other, as well as how they protect data. And while it’s narrowly focused, it is monitored closely to ensure that what they are seeking doesn’t affect lending programs.
• Boat Titling: On March 14^th the Senate Finance Committee heard HB 314 by Rep. Ron Stephens (R-Savannah), which seeks to create a boat titling procedure in Georgia regulated by the Department of Natural Resources. GCUA will stay engaged in the process; however, the Legislature has considered boat titling for more than 20 years without a successful final passage.
• Lien Bills: There are multiple bills that make changes to the laws surrounding various liens, one of which saw action in Senate Judiciary Committee hearing on March 13^th: HB 387 by Rep. Eddie Lumsden (R-Armuchee). This bill addresses liens for private nonprofit fire departments on properties. This bill is monitored to ensure it does not impact foreclosure processes.
• Mass Tax Exemption Review: On March 12^th the House Ways and Means Committee heard SB 120 by Sen. John Albers (R-Alpharetta) which seeks to create a lengthy tax exemption review. This bill calls for an analysis and cost-return on 53 separate income and sales tax exemptions and credits, with the intent on determining which work and which do not (and as such, should not be continued). This bill will be monitored closely through the process to ensure that credit unions are not impacted.
• Mortgage Licensing Exemptions: On March 12^th the Senate Banking Committee passed HB 212 by Rep. Clay Pirkle (R-Ashburn) to carve out an exempt for mobile home dealers if they are not facilitating a mortgage. And while it’s directed at federal law changes, the committee passes a more narrowly defined version of the bill to ensure it did not create unintended consequences for the lending environment in the state. It will continue to be monitored in the process to ensure that it does not bring Georgia law out of sync with federal requirements, and bring more compliance burdens onto credit unions.
• PACE Financing: SB 162 by Sen. Matt Brass (R-Newnan) is the bill GCUA has been engaged on to educate legislators of the negative issues it creates. While it reads like a broadband bill, upon being selected in the Senate floor debate it was uncovered that it seeks to expand a finance arrangement by allowing home improvement loans via tax assessments that are tied to the property and not the individual. This bill in its present form seeks to expand the current schematic to include disaster improvements as well as broadband access, and would supersede the lien priority status of the mortgage holder. While there has been no hearing yet, GCUA has been engaged with stakeholders in the process to address the legislation to help protect the lending process in Georgia, and has been lobbying against the issue. As of press time a hearing in the House is anticipated soon. Stay tuned!
• Title Insurance Expansion: SB 202 by Sen. William Ligon (R-Brunswick) was debated in two separate House Insurance Committee hearings this week on March 12^th and March 13^th, and seeks to expand what title insurance can cover to contents of a building as well. This bill is monitored to ensure it is not amended in the final days of the session as it could open itself to various lending issues.
• Towed Vehicles: GCUA continues to be engaged on a bill that seeks to overhaul the entire section of law that pertains to towed vehicles: HB 307 by Rep. Alan Powell (R-Hartwell). The original version of the bill lengthened the period of time in which a towing facility would notify a lienholder to 20 days; however, GCUA has been working closely with Rep. Powell and interested parties to shorten this to keep credit unions and other from having a delay in realizing that a vehicle had been impounded. The bill was heard in the Senate Judiciary Committee on March 14^th and may still change several times in the process; stay tuned!