The state legislative session has now met for 18 of the 40-day schedule, and at the onset of each day there are new bills introduced that require analysis, hearings (and unscheduled hearings), and issues being tackled in the halls to protect and advance credit unions in the state. Some of the topics addressed this week on behalf of credit unions include:
Abandoned Mobile Homes: H.B. 381 by Rep. John Corbett (R-Lake Park) seeks 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. This bill was addressed in a House Judiciary subcommittee hearing on February 5th and full Committee on February 8th, and while the bill seeks to resolve a negative issue…GCUA has been engaged to help prevent language that could create greater liability for rent once the mobile home is abounded. Rep. Corbett has been open to working with credit unions on this issue from the onset of its introduction in 2017 to ensure that credit unions are not saddled with operational burdens in the process.
Cybersecurity: One of the cybersecurity bills in the state Legislature, S.B. 315 by Sen. Bruce Thompson (R-White) was sent back from the full Senate floor to the Senate Rules Committee on February 6th, a maneuver when there is additional concern and/or changes sought to a bill by leadership. This is the bill that seeks to address data breaches by criminalizing the unauthorized access of computer systems, and any pending changes will be monitored closely to ensure that credit unions are not tasked with unneeded burdens while still protecting data as the bill moves forward in the process.
Foreclosure Protections for Active Military: on February 6th GCUA testified in front of the House Banking Committee on concerns surrounding H.B. 676 by Rep. Paulette Rakestraw (R-Powder Springs) which seeks to provide foreclosure protections to active military. This bill is couched as an aide to the state in base realignment closures, and legislators are very keen to keep military bases in the state (for good reason). The measure would delay any foreclosure action during a service member’s active duty after active duty and tracks the federal military law (Servicemembers Civil Relief Act) foreclosure protections … in part. GCUA has learned that this bill was patterned after a state law that passed in Florida and picks up only pieces of various parts of the federal law, and expands beyond home foreclosure protections … as well as opening the state up to judicial foreclosure. With the legislature intent on passing something on this topic to help with BRAC, more work continues to ensure that what is moved forward does not create conflicting requirements with the federal law.
HOA Issues: H.B. 410 by Rep. Alan Powell (R-Hartwell) had a second hearing in a House Judiciary sub Committee on February 7th and a third hearing on February 8th, this is to regulate what information HOAs share in letters requested for mortgage closings, and what fees could be charged. A version of the bill passed the committee that would cap the fee that could be collected at $200. However, more iterations of this bill are expected as it has been a heated debate of outside interests, and it is being closely monitored to ensure that credit union operations are protected. It is also monitored closely to ensure that HOA interests do not insert language to supersede the lien status of the lender.
Payments Between Insurers and Health Providers: this week a bill that had provisions that drifted into the payments world was introduced and heard in a House Insurance subcommittee. HB 818 by Rep. Lee Hawkins (R-Gainesville) is directed solely at the fees charged between insurance providers and doctor offices (and not on the consumer transactions), however it contained language surrounding EFT transfers and appears to try to regulate/limit fees as it’s applied to those insurance payments to the provider. The bill was amended in the hearing to remove language of concern, and prevent insurance companies from requiring providers to accept only payment via virtual credit card.
Savings for Higher Education: on February 7th a House Ways and Means subcommittee passed H.B. 664 by Rep. Sam Teasley (R-Marietta) to increase the amount one can place in 529 plans for tax credit purposes. The bill travels to full committee and will continue to be monitored through the process to help incent more to save – and prevent credit unions from being impacted from a taxation perspective (as any tax bill can and often are amended in the legislative process). The bill passed the full Committee on February 8th and now travels to Rules for consideration.
TAVT: H.B. 327 by Rep. Jay Powell (R-Camilla) is the bill from last year that sought to make several changes to the TAVT process for autos, including addressing the “welcome to Georgia” tax people see when they move to the state upon transferring vehicles, among other changes. Of note is that it would place used cars at the same tax calculation as new cars (the higher of book or retail price) if sold by a dealer, making those purchases (and calculations) consistent. For casual sales between individuals (and not a new or used car dealer), the fair market value would be the same as it is today. This bill passed a subcommittee of House Ways and Means in its second hearing (for this year, as it’s been debated heavily in 2017) on February 7th and is watched closely to protect credit union auto lending operations…as more changes throughout the legislative process are anticipated. The bill passed the full Committee on February 8th and now travels to Rules for consideration.
Tax Liens: the full Senate passed H.B. 661 by Rep. Bruce Williamson (R-Monroe) on February 5th with no changes; this is the legislative reaction to the special hearing on November 27th that “stayed” the Department of Revenue’s (DOR) proposed rules as they apply to creating an electronic database for tax liens. However, the proposed rules went much farther (applied a new step that would require a certificate of clearance on all deed transactions). H.B. 661 is to change the law to prevent the previous DOR rules from being proposed again later and to eliminate the need for a certificate of clearance. This bill now travels to the Governor for his consideration to sign into law.
Trash Liens: HB 693 by Rep. Brett Harrell (R-Snellville) removed a provision in law that has allowed cities and counties to threaten the foreclosure of real property over the nonpayment of a trash bill! This effort of Rep. Harrell has been a multi-year focus to prevent fees being treated as the same level as taxes. The bill, which doesn’t remove the right to file trash liens…but changes the process to make it more transparent to the homeowner and less of a “super lien”, passed a subcommittee of House Ways and Means on February 7th full committee on February 8th and moves forward to Rules committee.
