Creating Influence
Shoes and arrows

State Legislature Begins

The state legislative session began anew this week on January 14th for the first half of the two-year cycle, with unpredictable directions/outcomes and a blank slate for legislation – as any bill that did not pass last year cannot continue on without being reintroduced. And as such, there will be literally thousands of bills introduced during the next three months that will require review and analysis for any impact (both positive and negative) on credit unions, and then those that require action lobbied actively through the process. For an idea on the number that could impact – in 2018 there were more than 300 bills that required this active lobbying. To see all bills of industry interest as they unfold in 2019 please click here for the tracking system.

From a proactive advocacy perspective, throughout last year credit unions were actively engaged in efforts to build relationships with legislators, grow understanding, and promote what is necessary to serve members today and into the future. As an output of this strategy, there were 526 credit union advocates to engage with their legislators during 2018, more than 180 political events attended by GCUA in 2018 on behalf of credit unions, with more than 80 attended just last week to kick off the advocacy efforts. These were utilized to help position credit unions for this 2019 session, as it is anticipated to be chaotic and dicey given the post-election-year dynamics. This equates to an environment that requires strong defense to protect negative amendments from sliding into the bills that do move forward. And while the session is just in the first week with a long, long way to go, there have been several issues already being addressed of note for credit unions:

Real Estate Property Taxation:

GCUA was engaged in the hearings in the off session that proposed changes to real property taxation. The committee, chaired by Rep. Andy Welch (R-McDonough) , provided eight recommendations that the Legislature may tackle in 2019. The recommendations focused on the appeal and assessment process, with focus on transparency. However, this topic will continue to be monitored closely into the session, where it may change into any manner of tax issue touching real property.

Appraisal Management Companies:

Last year GCUA worked with Rep. Alan Powell (R-Hartwell) on H.B. 775 to procure a pro-credit union amendment on a bill that seeks to bring Georgia law on regulating appraisal management companies into compliance with federal statute. This bill is anticipated again, and work will continue to ensure that what is pursued includes credit unions.

Funeral Expense Payments:

GCUA continued to engage Rep. Rick Williams (R-Milledgeville) on his previous bill H.B. 689,which seeks 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 the 2018 bill sought to abolish the waiting period, as well as instruct the financial institutions to pay funeral home expenses first before any family member. However, GCUA worked with the legislator to create a positive substitute version in 2018 (but it did not pass), and work continues with Rep. Williams to ensure that what moves forward in 2019 is positive for credit unions.

Marijuana Related Legislation:

GCUA was engaged in multiple hearings throughout the off session in 2018 on the possible expansion of medical marijuana and hemp cultivation. Work continues to engage on this issue to ensure that if something does move forward, credit unions are poised to help – and a big factor is whether the federal government eases its restrictions.

State Tax Changes:

Tax changes (as well as TAVT auto tax changes) have been attempted over the past several sessions, and require effort to consistently monitor hearings, bills and lobby legislators to protect credit unions. The industry will be on guard to ensure that credit unions are not impacted by any negative attempts in the months ahead.

Operational Improvements to Credit Union Charter:

During the summer months, there was a credit union task force dedicated specifically to generate ideas for potential improvements to the credit union state law. GCUA has been closely engaged with DBF as well as the other banking trades to procure legislative improvements to reduce compliance burdens, and as of press time a bill has not been introduced, but this proactive legislation to enhance credit union operations is anticipated soon.

In addition to the above issues, there will be hundreds more to be addressed on the horizon, as anything can and does happen during the session, which will likely go through mid-April. Stay tuned over the next few months on the state issues that could impact your credit union!

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