Creating Influence

State Legislature Past Halfway Point: Firehose of Issues for Credit Unions

This week the state legislative session passed the halfway point, meeting for day 22 of the 40-day schedule. And with this week, it was an intense period of activity of issues for credit unions. Issues and bills remain fluid, but in addition to the priority bill containing credit union charter enhancements, some of the activity included:

Abandoned Mobile HomesH.B. 381 by Rep. John Corbett (R-Lake Park) was passed by the full House on February 15th. This is the legislation that GCUA has been engaged on that 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. While the bill seeks to resolve a negative issue, GCUA worked during the hearing process prior to the floor vote to prevent language that could create greater liability for past due rent once the mobile home is abandoned. Our thanks to Rep. Corbett, who has been open to working with credit unions on this issue from its introduction in 2017 to ensure that credit unions are not saddled with operational burdens in the process.

Appraisal Management CompaniesH.B. 775 by Rep. Alan Powell (R-Hartwell) seeks to bring Georgia law on regulating appraisal management companies into compliance with federal statue. And while it’s couched as a nationwide effort to bring state laws on par with federal regulations, buried in the bill is a small section that defines federally regulated appraisal management companies in a manner that would not include credit unions with other financial institution-owned appraisal management companies. Work has been continual to analyze the issue, and Rep. Powell committed to amending the legislation this week to ensure that credit unions would be included.

Credit Freeze Changes: To date there are three separate bills that have been introduced to remove the fee credit reporting agencies are permitted to charge consumers in freezing their credit report, one of which was debated in the House Banking hearing on February 13th (H.B. 866 by Rep. Scot Turner (R-Holly Springs)). The committee is likely to address this bill again in the next week, and the environment is ripe for these types of bills given the breach at Equifax. Bills surrounding credit reporting (or data collection) will continue to be monitored closely through the process for any changes that could impact lending operations.

Cryptocurrency: On February 13th the Senate Science Committee and the House Science and Technology Committee held back-to-back hearings to receive an overview on cryptocurrencies (such as Bitcoin). These hearings were for informational purposes only to help educate legislators, and while no legislation is anticipated on a state level presently, the issue will continue to be monitored to ensure that credit unions are not impacted.

Cybersecurity: One of the cybersecurity bills in the state Legislature, S.B. 315 by Sen. Bruce Thompson (R-White), passed the full Senate on February 12th and now travels to the House. 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 as the bill moves forward in the process, to ensure that credit unions are not tasked with unneeded burdens while still protecting data.

Deficiency Judgments: One of the bills from last year, S.B. 86 by Sen. Jesse Stone (R-Waynesboro), is anticipated to have a renewed push to pass soon. This legislation seeks to regulate deficiency judgments and levies on real property. GCUA received an advance copy of the new version of the bill that will be sought and has been analyzing it to ensure that credit unions are not negatively impacted. It will continue to be monitored closely.

Elder Abuse Protections/Power of Attorney Reform: On February 12th the power of attorney technical changes bill, H.B. 897 by Rep. Chuck Efstration (R-Dacula), was introduced; it then was debated in a House Judiciary subcommittee on February 14th and full committee on the 15th. GCUA has been engaged with Rep. Efstration on this issue, sitting down with him and other interested parties to ensure that what is being sought is positive and workable. While he intends for the bill itself to be “clean-up” in nature, it will be monitored closely to ensure that credit unions’ operational ability surrounding the power of attorney process is not negatively impacted. In addition, it will be shepherded through the process to protect against attempts to add greater liability to financial institutions, while protecting the 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 a study committee met 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). This bill passed the full Senate with no negative changes to credit unions on February 8th, and has been assigned to the House Ways and Means Committee for their consideration. This bill will continue to be monitored closely to prevent negative impact to the industry.

Foreclosure Protections for Active Military: Readers of Creating Influence will recall that GCUA testified in front of the House Banking Committee on H.B. 676 by Rep. Paulette Rakestraw (R-Powder Springs) on February 6th to address concerns around this bill that seeks to provide foreclosure protections to active military. This bill is couched as an aid 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, much work has been focused in the past several legislative days, working with the bill’s sponsor and legislative counsel, to ensure that what is moved forward creates a mirror of federal law while not adding additional regulatory burden (or create conflicting requirements). Substitute version(s) of the bill are being drafted, and another hearing is anticipated soon.

Funeral Expense PaymentsH.B. 689 by Rep. Rick Williams (R-Milledgeville) seeks to expedite the payment of funeral expenses when an individual dies without a will. Presently there is a 90-day waiting period in which the funds must be held before payment – this would abolish the waiting period. GCUA has been engaged with Rep. Williams on this bill to help remove any confusion this bill would potentially create, but much work continues.

HOA Issues: H.B. 410 by Rep. Alan Powell (R-Hartwell) was slated for hearings earlier in the week, but after several cancellations it was debated again on February 15th in a hearing of the House Judiciary Committee. This bill seeks to regulate what information HOAs share in letters requested for mortgage closings, and what fees could be charged. There have been multiple versions of the bill; however, what is being sought is a $200 cap on the fee. However, more changes are expected, and it is being closely monitored to ensure that credit union operations are protected. It is also being 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: GCUA has been engaged with a group seeking additional changes to H.B. 818 by Rep. Lee Hawkins (R-Gainesville), which is directed solely at the fees charged between insurance providers and doctors’ offices (and not on the consumer transactions). The bill was amended in subcommittee last week to amend the language to make it explicitly clear that it is applied to those insurance payments to the provider, and to prevent insurance companies from requiring providers to accept only payment via virtual credit card.

Regulations: S.B. 338 by Sen. William Ligon (R-Brunswick) seeks to implement changes to how the state Legislature can put a halt to proposed regulations to any state agency, and how new rules and regulations are proposed. This bill passed on February 8th and is now assigned to House Judiciary for their consideration; it will continue to be monitored closely to ensure that credit unions are not disparately impacted in this process.

Tax Changes: On each day of the session there are more new tax bills introduced, and almost daily hearings on the changes that are being sought from changes to tax exemptions, tax credits, and new taxes being assigned. Proposals range from considering internet sales tax, broadband taxes, occupational tax expansion, sales tax expansion on services or products not taxed now, income tax changes and more. These hearings are monitored closely as any changes to bills can be added, and until midnight on day 40, this effort will continue on behalf of credit unions.

Wire Transfer Fees: Rep. Jeff Jones (R-Brunswick) shared with GCUA that he will obtain a hearing soon on his legislative effort to place a fee on wire transfers (H.B. 66); this was the issue where credit unions and others would be required to collect and remit the fees. Rep. Jones shared an advance copy of what he is pursuing, and GCUA has expressed concerns with the language as it does not exempt the industry from the provisions. Much work is under way to address this issue with both Rep. Jones as well as the members of the House Ways and Means Committee, where it is anticipated soon. GCUA will continue to lobby legislators in an effort to prevent any undue compliance burdens on credit unions.

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