This week of state session activity saw three bills to provide help to credit unions introduced, with hearings on two of them this week:
Operational Improvements for Credit Union Charter: HB 185 by Rep. Bruce Williamson (R-Monroe) was introduced and then debated in a House Banking Committee hearing on February 14th. This proactive bill contains multiple provisions for credit unions that were identified during the summer of 2018 when the 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 around the areas of operational issues when there’s a merger or purchase of a bank, outlining a clear process for member expulsion, and numerous changes where one is clarifying processes and definitions, including that of purchasing/selling loan participations. No action was taken on the bill, but GCUA will continue to engage legislators on the need for the issue.
Encouraging Savings: HB 193 by Rep. Emory Dunahoo (R-Gainesville) was introduced to allow Georgia financial institutions, if they so choose, to offer a savings account that offer a “sweepstakes” component (such as the Save to Win program). GCUA has engaged the committee members on the need for this issue, and testified in support of the bill in a hearing of the House Banking Committee on February 14th. During the hearing the Committee debated the bill, how it would work and the benefits, and whether it was in conflict with gambling laws. GCUA will continue to educate legislators on the benefits of adding such a capability for Georgians to develop savings habits.
Liability Protection & Clear Operations for Funeral Home Payments: after the session last year GCUA continued to engage Rep. Rick Williams (R-Milledgeville) on his previous attempts 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 in 2018 he sought to abolish the waiting period, as well as instruct the financial institutions to pay funeral home expenses first before any family member. However, Rep. Williams has been very open to working with the industry to ensure that what is pursued this year is positive for credit unions … and has modified his original effort to remove the onerous language from 2018, and has included liability protection for the financial institution as well as a clear system in which to apply for payment. The bill is anticipated as of press time.
