Creating Influence

State Legislature in Week Two: Issues of Note for Credit Unions

The state Legislature is now in its second week, with session days falling on Thursday and Friday, January 18th and 19th. While it’s only two days, it is worth noting that this second week of the session is historically NOT one where lawmakers utilize any of their 40 days as it is normally reserved for budget hearings. These hearings still took place, but along with them the session days and the multiple hearings of other committees outside of the budget. As of this early point of the session, there are more than 300 bills being monitored, addressed and lobbied on behalf of credit unions, with new bills introduced each session day. New developments as of press time include:

  • Real Estate Lending Issues: Last week held early efforts to address an unintended consequence for credit unions on S.B. 299 by Sen. Frank Ginn (R-Danielsville). This bill seeks to require any transaction involving the recording of real property to only be done by an attorney in good standing with the State Bar of Georgia. This bill would have the inadvertent effect of forcing any loan where the real property is collateral to go through an attorney – and, of note for many credit unions, this includes home equity loans. Sen. Ginn has been receptive to the credit union concerns, and has shared he will not move forward with the language that would place operational burdens and more expenses on many credit unions. Our thanks to him for understanding the issue!
  • Foreclosure Protections for Active Military: Rep. Paulette Rakestraw (R-Powder Springs) has introduced H.B. 676 to provide foreclosure proceedings. The measure would apply during a servicemember’s active duty and 30 days after. More research and work is to be done on this bill over the session to protect credit union operations. More research and work is to be done on this bill over the session to protect credit union operations.
  • Increased Savings for Higher Education: H.B. 664 by Rep. Sam Teasley (R-Marietta) was introduced this week to increase the amount one can place in 529 plans for tax credit purposes. While positive, adding new tax credits is often coupled with the state’s desire to find new ways to pay for the credits. As such, the bill will be monitored through the process to help incent more to save – and prevent credit unions from being impacted.
  • Abandoned Watercraft Process: H.B. 665 by Rep. Eddie Lumsden (R-Armuchee) addresses the process of how abandoned boats are handled, and will be kept on the radar to ensure that there are no changes that wrap in lending operations.
  • Elder Abuse Protections/Power of Attorney Reform: GCUA continues dialogue with Rep. Chuck Efstration (R-Dacula) as he looks to make minor changes to the power of attorney overhaul from 2017. This issue will be addressed closely and often during the session to ensure that credit unions operations are protected against attempts to add greater liability to financial institutions, while ensuring ability of authorities to investigate and prosecute financial elder abuse and fraud.
  • Elimination of Certain Tax Credit Programs: All throughout the summer, fall and winter months the Senate held special study committee hearings on tax exemptions to thoroughly review tax credit/exemption programs to weigh a return on investment, whether the programs are working, and whether they should (or should not) be continued. An output of these hearings was seen this week with the introduction of S.B. 328 by Sen. John Albers (R-Alpharetta), which seeks to eliminate three of the tax credit plans these hearings analyzed (drivers’ education, diesel, and a transportation fringe tax credit). More analysis on other tax credit programs is expected, and this issue will continue to be monitored closely to prevent negative impact to the industry.

Next week legislators will be in session Monday through Thursday, bringing them to day 10 of the 40-day schedule … and with it, more issues to be addressed to protect how credit unions serve their members today and in the future. In addition, it will be a big week for credit union advocacy, as 70 individuals are registered to be down at the state Capitol on Tuesday, January 23rd for the State GAC/Grassroots Academy. To follow the activity of the state session, go to @GCUAGov on Twitter.

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