Georgia Credit Union Affiliates

The Georgia Credit Union Affiliates represents the credit union movement before the Georgia General Assembly and state agencies. Following is a list of the most important issues and bills pertinent to Georgia credit unions during the 2008 session. Although the Georgia General Assembly has adjourned for the year, we will continue to monitor those bills being considered by the Governor. In addition, bills that are not passed could be reintroduced the following year. Please check often to keep current with all the issues.

The Web site maintained by the General Assembly has links to all other legislation and links to the online search function for the entire Georgia code.

Automatic Withdrawals
H.R. 278 by Representatives Beasley-Teague, Fludd, Brooks, Stanley-Turner and Jordan urges the Congress of the United States to enact legislation that would penalize financial institutions for continuing to automatically deduct money from accounts after receiving appropriate notice from the account holder to stop making such automatic deductions. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

Bankruptcy
S.B. 133 by Senators Tarver, Brown, Ramsey, Fort and Thomas. Increases the homestead exemption in Georgia bankruptcy filings from $10,000 for individuals and $20,000 for couples to $50,000 for individuals and $100,000 for couples. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

S.R. 1289 by Senators Tarver and Wiles. Creates a study committee to review the current bankruptcy exemptions for real or personal property that are available to consumers. The study committee is to submit their findings to the Senate by December 1st, 2008 and is to recommend any action deemed necessary from the study. GCUA monitoring study committee.

Biometrics
H.B. 276 by Representatives Setzler, Hill, Brooks and Loudermilk. Defines biometrics and the ways governments, businesses and others can use biometric identifying information. It also establishes penalties for misuse of the information. Currently financial institutions are exempt from a majority of the provisions, but there are few that are of concern. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

Contracts
H.B. 667 by Representatives Levitas, Chambers, Coan, Hill, Lunsford and England amends the Official Code of Georgia Annotated, relating to illegal and void contracts generally, by providing that reasonable restrictive covenants are valid restraints of trade or commerce. This bill would affect future credit union employment contracts. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

Credit Reports
H.B. 35 by Representatives Benton, Teilhet, Collins, England, Kaiser and others allows a consumer to place a security freeze on his or her credit report by making a written request to a consumer credit reporting agency. The consumer credit reporting agency would be responsible for placing a security freeze on the consumer's credit report within 15 minutes after receiving a proper identification. Credit Reporting Agencies are permitted to charge no more than $5 for the placement, removal or temporary lift of the freeze. While the bill allows for third parties to continue monitoring consumer activity, it does not allow for credit unions to update information on their existing member relationships. GCUA opposes as is. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

H.B. 38 by Representatives Teilhet, Benton, Reese, Barnard, Manning and others. This bill allows consumers to place freezes on their credit reports with the credit reporting agencies. It places additional costs on businesses and users of credit files, complicates employee verification in the hiring process, hampers intrastate commerce, and slows consumers’ access to credit and services. A similar bill did not pass during the 2005-2006 General Assembly.

This bill has been heard before the Financial Institutions and Services and Regulatory Oversight subcommittee on several occasions. GCUA opposes as is. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law. See below H.B. 130 for passed credit freeze legislation.

H.B. 130 was introduced by Representatives Hill, Mills, Meadows, England and Benton. The bill allows individuals to place and remove security freezes on credit reports. The bill is similar to legislation enacted in other states that has been used successfully by the credit reporting agencies. This bill has been heard before the Financial Institutions and Services and Regulatory Oversight Subcommittee on several occasions. Both House and Senate agreed to language that would allow individuals to place a freeze on their credit report for a fee of $3,00, and allows for a “thawing” of the credit report within 15 minutes. This bill passed and was signed into law by the Governor on May 13, 2008.

H.B. 196 by Representatives Bob Smith, Roberts and Rogers requires credit reporting agencies to provide a consumer an exact copy of any credit report provided to a creditor. Action was not taken during the meeting at this time. There are two separate potential substitutes to the bill, with one that would require financial institutions to notify consumers when they report something negative to the credit reporting agencies. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law. See above H.B. 130 for passed credit freeze legislation.

S.B. 361 by Senators Rogers, Hamrick, Shafer, Grant, Goggans, Stanton and others. The bill allows individuals to place and remove security freezes on credit reports and is similar to H.B.130. Both the Senate and the House had this bill drafted identical to H.B. 130. Although this Senate bill did not pass during the 2007-2008 General Assembly, the above H.B.130 did pass and was signed into law by the Governor.

Ethics
S.B. 243 by Senator Unterman revises the "Ethics in Government Act" by changing numerous provisions relating to the composition and operations of the State Ethics Commission, campaign contributions and campaign finance disclosure and filing, public official and candidate personal financial disclosures, and lobbyist regulation and disclosure. It also requires annual ethics training by the commission and requires completion of the training by certain elected officials and public officers. This bill passed the Senate by a vote of 48-1 in 2007 but was not considered by the House. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

Fair Lending Act
S.B. 475 by Senators Fort, Thompson, Reed, Orrock, Jones and Brown seeks to revise the Georgia Fair Lending Act to prohibit abusive home loan practices. This proposed legislation would place limitations on high-cost home loans. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

False E-Mails
S.B. 24 by Senators Staton, Shafer, Chance, Douglas, Chapman and others. Prohibits and criminalizes the sending of emails for the use of the Internet to induce someone to provide identifying information. Examples include extracting confidential information such as credit union/bank account and credit card numbers, Social Security and driver’s license information. The e-mails often direct consumers to phony Web sites that claim to represent legitimate businesses. This practice is known as “phishing” – luring victims into identity theft and fraud. S.B. 24 makes such scams a felony, and establishes penalties ranging from prison sentences of one to 20 years, to fines of $1,000 to $500,000. This bill was introduced during the 2007 General Assembly, but gained momentum at the end of the 2008 legislative session and was passed on day 40. This bill was signed into law by the Governor on May 12th.

Firearms
H.B. 89 by Reps. Bearden, Horne, Hatfield, Maddox and Smith would allow motorists to store handguns anywhere in their cars, instead of keeping them in plain sight, a glove compartment or front-seat console, as required under current law. The bill was amended with an NRA-backed bill that prohibits businesses from adopting policies that would not allow employees to keep firearms in their cars while the vehicles were parked on company lots that do not restrict general public access through the use of a gate, security station, or officer, and it prohibits employers from searching locked employee vehicles. This bill passed and was signed into law by the Governor on May 14th.

H.B. 143 by Representatives Graves, Day, Ehrhart, Talton, Teilhet and Scott. Prohibits certain employers from prohibiting employees from lawfully carrying and possessing firearms in locked motor vehicles. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

S.B. 43 by Senators Rogers, Whitehead, Williams, Johnson, Heath and Mullis. Similar to H.B. 143 above. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

Foreclosures
S.B. 465 by Senators Jones, Adelman, Reed, Seay, Brown, Stoner and others. This bill requires that the notice of foreclosure on high cost loans be no later than 90 days before the date of the proposed foreclosure. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

S.B. 519 by Senators Hamrick, Orrock, Reed, and Shafer. This bill seeks to increase the notice of the sale in a foreclosure from 15 days to 60 days prior to the date of the proposed foreclosure. A 90-day notice is required on any loans with a prepayment penalty. Although this bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law, some of its language was included with the below S.B.531 that was signed into law by the Governor.

S.B. 531 by Senators Hamrick, Orrock, Brown, Chance, Thompson, Powell and others requires that the foreclosure sale advertisement must be conducted in the usual manner of the sheriff’s sales in the county in which the real estate is located, and that the identity of the secured creditor is included with the advertisement. It further states that no sale is conducted unless it is in the name of the legal holder. During the final days of the 2008 General Assembly, this bill was amended with language from the above S.B. 519 to increase the notice of the sale in a foreclosure from 15 days to 30 days and denote that the security instrument shall be filed prior to the time of sale. This bill passed and was signed into law by the Governor on May 13th.

H.B. 1317 by Representatives Homes, Thomas, and Gordon seeks to make t unlawful for any person who owns, controls, or is the responsible agent of a vacant structure to maintain, the structure and not let it fall into a neglected condition. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

H.B. 1319 by Representative Holmes seeks to change the time for delivery notice of the initiation of foreclosure proceedings from 15 days to 90 days, and outlines that the debtor shall have the right to cure the foreclosure by paying the creditor the full amount of the payments that are past due (including any late fees and charges) so as to bring the payments on the underlying debt current. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

H.B. 1320 by Representative Holmes seeks to provide that upon a foreclosure of residential property, a tenant occupying a dwelling unit under an unexpired term for years or a lease for a definite term in effect at the time of foreclosure by sale shall be deemed a tenant at will. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

H.R. 1153 by Representatives Mitchell, Williams, Watson, Mangham and Stevenson. Calls on Congress to pass the Homeowners and Bank Protection Act which would create a new agency to protect financial institutions from bankruptcy, put a moratorium on foreclosures and convert existing mortgage interest rates so that payments would equal an effective rental rate. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

S.B. 459 by Senators Reed, Johnson, Brown and Shafer seeks to provide that real estate sales made under power of foreclosure shall be advertised weekly for 10 weeks. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

H.B. 1438 by Representatives Thomas, Abrams, Beasley-Teague, Mangham, Jones, and Holmes. This legislation seeks to enact the “Foreclosure Rescue Fraud Prevention Act” and would provide that holders of equitable mortgages shall not be authorized to evict a homeowner except through the foreclosure process. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

GAP Insurance
S.B. 541 by Senators Chance, Staton, Rogers and Shafer. This proposed legislation seeks to change GAP insurance so that it would no longer be classified as “insurance,” and as such would be excluded from the corresponding insurance regulations. This bill did not pass during the 2007-2008 General Assembly, but the language from this bill was placed in the below S.B.470 which passed and was signed into law by the Governor.

S.B. 470 by Senator Hudgens. The original language from this bill was removed and replaced with the language from the above S.B.541 which changes GAP insurance so that it would no longer be classified as “insurance,” and as such would be excluded from the corresponding insurance regulations. This bill passed and was signed into law by the Governor on May 14th.

Garnishments
H.B. 121 by Representatives Willard, Lane, Hatfield, Bruce, Mills and Floyd. Provides for the service of a summons of garnishment that is non-continuing to be made upon the agent in charge of either the registered office or the principal place of business of a corporation. This bill was tabled in committee for a later date. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

Health Savings Accounts
H.B. 27 by Representative Knox. Has yet to be filed. This bill would provide for a state insurance premium tax exemption for certain high-deductible health plans sold or maintained in connection with a health savings account. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

H.B. 977 by Representative Knox. Provides a $250 per person tax credit to companies with 50 or fewer employees who offer health savings accounts. This bill passed both chambers and was signed into law by the Governor on May 7th.

Home Inspector Licensing
S.B. 485 by Senators Wiles, Staton, Chance, Jackson, and Murphy. Creates a state licensing board and licensing procedures for home inspectors. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

H.B. 1217 by Representatives Jerguson, Williams, Glanton, and Tumlin. Seeks to do the same as above S.B.485. Sponsored in the Senate by Senator Wiles. This bill passed but was vetoed by the Governor on May 14th and would need to be reintroduced in 2009 in order for it to become law.

S.B. 334 by Senator Shafer. Seeks to do the same as S.B. 485. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

S.B. 388 by Senators Carter, Chance, Heath, Rogers, Balfour, and Mullis. Would provide the Georgia Bureau of Investigation with the authority to investigate certain offenses involving identity fraud. This bill passed was signed into law by the Governor on May 13th.

Immigration
H.B. 21 by Representatives Bearden, Talton, Byrd, Franklin, Benton and others designates English as the official language, and authorizes for documents and forms in other languages to be filed with an English translation. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

Industrial Loans
H.B. 420 by Reps. Ehrhart, Tumlin and Williams. Creates a new regulatory scheme for loans under $3,000 and moves the supervision of Georgia Industrial Loan Act licensees to the Georgia Department of Banking and Finance. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

Infrastructure Bank
H.B.1019 by Representatives Lunsford, Smith, Mills, Sheldon, Graves and Shaw. Seeks to establish an infrastructure bank to fund local transportation projects through a revolving loan fund. This bill, backed by Governor Sonny Perdue, passed both chambers and was one of the first bills of the 2008 session that he signed into law (date signed 4/9/2008).

Insufficient Funds
H.B. 564 by Representatives Dollar, Cheokas and Roberts amends the code section relating to deposit account fraud, so as to include the act when the accused had insufficient funds in the account at the time the instrument was made and immediately stopped payment on the instrument. It also provides a statute for starter checks and for an exception for rental payments. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

Insurance
S.B. 28 by Senators Hill, Thomas, Rogers, Goggans, Hudgens and Williams comprehensively reforms healthcare insurance in Georgia, titled the "Insuring Georgia's Families Act." The bill's primary objective is to lower the skyrocketing health insurance costs and improving the health of all Georgians by (1) providing consumer market-driven financial incentives, (2) providing healthcare access for consumers' price information, (3) increasing competition in the health insurance industry to help lower premiums, (4) moving health insurance from an employer-based system to an individual one to give people continuous insurance coverage and health care from job to job, and (5) providing tax benefits to lower the cost of health care and insurance. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

S.B. 144 by Senators Murphy, Hudgens, Heath, Rogers and Whitehead allows individuals who receive group insurance benefits to discontinue deductions from their paychecks. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

H.B. 583 by Representative John Heard amends the Official Code of Georgia Annotated, relating to cooperation by insured with insurer in connection with the defense of an action or threatened action under a policy, by requiring that insureds send notice of legal actions to their insurers. The bill further provides for the method of providing such notice to the insurers and provides for the effect of failure to provide such notice. This bill could affect credit unions in connection with their liability insurance policies. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

Loans to Sudan
H.B. 160 by Representatives Brooks, Benfield, Williams, Abdul-Salaam, Thomas and Mangham. Would prohibit the Office of Treasury and Fiscal Services from making certain deposits in certain financial institutions unless the financial institution has certified that it does not have any direct loans or knowledge of any indirect loans to certain entities connected with the Republic of Sudan. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

H.B. 256 by Representatives Brooks, Benfield, Williams, Mosby, Stevenson and Hensen. Provides that that no Georgia public retirement system shall invest funds in public obligations of companies doing business with or in the Republic of Sudan. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

H.R. 273 by Representatives Brooks, Mills, Williams, Coan, Benfield and Holmes urges the Congress of the United States to continue to press for strong measures to end the violence in Sudan and urging the Securities and Exchange Commission to give guidance to public pension fund managers in order to avoid investments which may be supporting nations involved in the support of terrorism or human rights violations. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

S.B. 199 by Senator Hill eliminates public retirement system from investing funds in certain corporations doing business with or in the Islamic Republic of Iran, Republic of Sudan, Syrian Arab Republic, and Democratic People´s Republic of Korea. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

S.B. 370 by Senators Shafer, Hill, Reed, Williams, Adelman and Moody. Prohibits the investment of state retirement funds in companies identified as doing business with the Republic of Sudan. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

Lottery Annuity
H.B. 515 by Representatives Freeman, Hill, Knight, Mitchell, Jerguson and others. Allows Superior Court to allow individuals to assign winnings from a lottery annuity. This bill passed and was signed into law by the Governor on May 12th.

Manufactured Homes
H.B. 579 by Representative Scott allows the landlord of a manufacturing community to assess and charge a lien holder $3 a day for an abandoned manufactured or mobile home on the property when it is not occupied. This bill will affect credit unions and banks that finance manufactured or mobile homes by making them liable for storage costs for collateral stored by a landlord and after the receipt of a notice by the credit union or bank from the landlord. This bill passed and was signed into law by the Governor on May 14th.

Minimum Wage Increase
S.B. 13 by Senator Brown. This bill would make it mandatory for employers to pay employees no less than $7.25 per hour. The minimum wage would be increased by the increase in the cost of living each year. On September 30, 2008, and on September 20 of each successive year thereafter, the Georgia Department of Labor would measure the increase in the cost of living. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

Mortgage Lending
H.B. 718 by Representative Bob Holmes amends Georgia code relating to licensing of mortgage lenders and mortgage brokers, to include a loan officer in the definition for mortgage broker, and gives the Department of Banking and Finance the authority to charge a licensee fee for the individual loan officer. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

S.B. 355 by Senators Smith, Hamrick, Cowsert, Harp, Meyer von Bremen, Adelman and others. Limits the definition of “good funds” when closing under Georgia’s mortgage closing statutes to wire transfers, cashier’s checks or check not exceeding $5,000. The House and Senate agreed to an amendment that requires the funding of loans that require a three day rescission period by no later than 11:00 am on the following day after the rescission period. This bill passed and was signed into law by the Governor on May 14th.

H.B. 918 by Representative Lane is similar to the above S.B.355, but does not allow for cashier’s checks or wire transfers. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

H.B. 921 by Representatives Mills, Peake, Forster, Kaiser and Talton would provide for the Department of Banking and Finance to participate in a nation-wide automated licensing system for mortgage brokers and mortgage lenders. This bill passed and was signed into law by the Governor on May 12th.

S.B. 375 by Senators Hamrick, Hudgens, Murphy and Tarver. Identical to H.B. 921 above. This bill did not pass, but the identical bill above did pass and was signed into law by the Governor. GCUA supports.

H.R. 421 by Rep. Holmes. A proposed amendment to the Constitution so as to authorize the General Assembly to provide for increases in the state real estate transfer tax and the state intangible recording tax to allocate the revenue from such increases to the Georgia Housing Trust Fund for the specified purpose of assisting low and moderate income citizens of this state in obtaining and maintaining affordable housing. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

H.B. 1413 by Representatives Billy Mitchell and All Williams seeks to modify provision relating to the offense of residential mortgage fraud committed upon homeowners during or threatened with foreclosure. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

H.B. 1093 by Representatives Willard, Mills, Coan, Fleming, O’Neal and Lindsey requires either the notice of consumer rights or a notice of title fulfillment to be sent within the 60 day period of final payment on a mortgage loan. This bill was raised in response to a number of class action lawsuits that have been filed against lenders in Georgia for failure to satisfy mortgages within the 60 day period after the loan has been paid. This bill passed and was signed into law by the Governor on May 12th.

S.B. 496 by Sens. Tate, Hooks, Thompson, Shafer, Orrock and Jones. Amends the appraisal statute to prohibit certain acts by persons involved in transacting a mortgage business, so as to provide that it shall be prohibited to solicit or otherwise facilitate the fraudulent appraisal of the value of property offered as security for a mortgage or loan. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

Motor Vehicles
H.B. 17 by Representative Golick requires a person who leases an automobile to maintain a certain level of insurance coverage throughout the lease. The lessee would receive notice of such requirements prior to executing the lease documents. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

H.B. 470 by Representatives Parrish, Rice, Parham and and Powell amends the "Georgia Lemon Law." The bill includes provisions that requires certain documentation to be provided to consumers purchasing an automobile, extends the claim period for a consumer from 12 months to 24 months, makes the manufacturer responsible to repair and correct nonconformities or the replacement or repurchase of the nonconforming vehicle and gives the lienholder protection by requiring the manufacturer to pay all fees incurred during the life of the loan. Provisions in the bill also sets up a process for arbitration in case a dispute occurs between the manufacturer, the lessee and the lessor. This bill passed and was signed into law by the Governor on May 14th.

S.B. 219 by Senators Hamrick, Mullis and Carter allows for the seizure and forfeiture of a motor vehicle operated by a person who has committed a sexual offense. The bill sets up a procedure of notifying the owner/lien holder of the motor vehicle. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

H.B. 978 by Representatives James Mills and Ronald Forster seeks to allow law enforcement officers to impound vehicles of drivers who do not have a license-expired or current. Throughout its many amendments (it was originally a bill that directed the seizure of vehicles driven by illegal aliens) the legislation retained an exemption for the lien holder. This bill passed but was vetoed by the Governor on May 14th and would need to be reintroduced in 2009 in order for it to become law.

Payday Lending
H.B. 163 was introduced by Representatives Tumlin, Williams, Wix, Franklin and Ehrhart. The bill creates a regulatory structure for deferred presentment services (more commonly known as payday loans). The payday loan industry in Georgia was effectively eliminated several years ago. This bill is designed to bring the industry back under a regulatory scheme that was not in place when the original bill passed. It was amended during subcommittee to change regulatory oversight from the Department of Insurance to the Department of Banking and Finance, where it will received earmarked funds. It does not currently affect credit union loan practices. It has drawn opposition during the hearings from advocacy groups such as AARP and others.

The state House was evenly divided on the issue of payday lending late Tuesday, March 20th, 2007, voting 84 to 84 on whether the service should be legal in Georgia. A tie vote means that House Bill 163 failed – it needed 91 votes for passage in the House. House rules dictate that the sponsor of a bill may ask for reconsideration before the close of the next voting day. The bill was asked to be reconsidered on March 27th, but again failed to pass the House with a vote of 82-77. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

Real Estate Liens
S.B. 63 by Senators Seabaugh and Weber removes the ability of mechanics and materialmen from being able to put special liens on single family residences. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

S.B. 64 by Senators Seabaugh and Weber creates a procedure for liens filed in error to be so noted in the real estate records maintained by the Superior Court clerks. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

S.B. 65 by Senators Seabaugh and Weber. Adds a new definition of single family residential real estate. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

S.B. 374 by Senators Weber and Seabaugh revises the time periods for filing materialsmen’s and mechanics’ liens and provides for notices regarding the waiver of the lien or claim upon bond. It states that certain liens are unenforceable if the action is not commenced within 12 months. This bill passed and was signed into law by the Governor on May 14th.

H.B. 1018 by Representatives Lane and Willard. Seeks to add a new $2.00 filing fee for recording an instrument that cancels, satisfies, or releases certain liens with the Superior Court Clerk; requires cross referencing to other previously recorded documents. This bill passed both chambers and was signed into law by the Governor on May 6.

Recording of Deeds
H.B. 974 by Representatives Scott and Jacobs. Seeks to require recorded deeds to disclose the inclusion/exclusion of mineral rights. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

H.B.1069 by Representatives Williams and Frazier. Would require clerks of the Superior Court to include the address of the grantee in certain recorded instruments. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

Relatives
S.B. 551 by Senator Bill Hamrick would prohibit financial institution directors, officers, and employees from transacting business, other than regular banking transactions that anyone could access, with any person, appraiser, mortgage broker, or other loan valuation expert to whom they are related. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

Revenue and Taxes
H.B. 40 by Representatives Franklin, Scott, Royal, Williams, Rice and Loudermilk limits the period for assessment and collection of state income taxes. Such that, if a taxpayer files an amended federal income tax return seeking a refund and that return is allowed and a refund granted, the taxpayer would be authorized to file an amended state income tax return seeking a refund within the 180 day time period. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

H.B. 66 by Representative Davis abolishes the state income tax and would increase the rate of tax on the retail purchase, retail sale, rental, storage, use, or consumption of certain tangible property and on certain services. We will continue to monitor this bill, along with other bills aimed at restructuring the state tax system. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

H.B. 67 by Representatives Martin, Royal, Collins, Knight, Scott and others repeals the corporate net worth tax on businesses and occupation taxes. We will continue to monitor this bill, along with other bills aimed at restructuring the state tax system. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

H.B. 195 by Representatives Golick, O’Neal, Cole, Smith and Dempsey amends the amounts of retirement income excludable from Georgia taxable net income. The bill phases in increase amounts for retirees to exempt over the next 5 years. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

H.B. 353 by Representative O’Neal creates a new Code Section 48-2-62 regarding the (1) notification, attachment, and seizure of funds held by financial institutions, (2) service of summons of garnishment, and (3) service of subpoenas. The bill changes certain provisions regarding the attachment, priority, and perfection of state tax liens and changes certain provisions regarding the disclosure of confidential tax information.

The House Ways and Means Committee passed an amended version of the bill that would make compliance with the provisions only on a financial institution with Georgia deposits greater than $15 billion according to the Federal Deposit Insurance Corporation Summary of Deposits annual report as of June 30. At present, it would only include three banks that have business in Georgia. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

H.B. 361 by Representative O'Neal would change the definition of the industries and types of technology that would be eligible for the retraining employees tax credits. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

H.B. 385 by Representative O’Neal would revise provisions relating to state and local taxation of corporations, partnerships, and associations, crimes and offenses, motor vehicles, and revenue and taxation. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

H.B. 441 by Representatives Floyd, Mills, Parrish, Royal and Knight would revert existing law back to that prior to 2005 relating to the adjustment of taxable income with respect to income from federal obligations and certain other obligations. Vetoed by Governor Perdue, House overrode veto. The Senate did not take up the veto override for consideration, and this legislation will need to be reintroduced in 2009 in order for it to become law.

H.B. 1151 by Representatives. Knight, Tumlin and Mosby. A bill primarily dealing with raffle operations and bingo, but amended in committee during the final days of the session to include the language from the above H.B. 441. This bill passed and was signed into law by the Governor on May 14th.

H.B. 1030 by Representatives Teilhet, Tumlin, Williams, Jamieson, Oliver, and Gordon. Would provide the disclosure of fees regarding refund anticipation loans and checks. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

S.B. 58 by Senators Smith, Wiles and Bulloch repeals certain provisions relating to payment of taxes where property lies in more than one county. This bill has passed the Senate and awaits action by the House Ways and Means Committee. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

H.B. 979 by Speaker Richardson, Representatives Burkhalter, Keen, and Forster would shift Georgia away from school property taxes and eliminate the car tax, and would expand the reach of the sales tax, including a tax on services which would include financial services that are provided to consumers. This tax on services would make up for the property tax revenue that now flows to school systems. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

S.R. 796 is the Senate resolution that corresponds with the above H.B. 979; constitutional amendment that seeks to freeze residential and commercial property values. This measure passed the Senate, but failed in the House. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

S.R. 686 by Senators Johnson, Rogers, Williams, Adelman, Seabaugh, Thomas and others. Similar to S.R. 796, but only applies to freezing the values of residential property. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

H.R. 1246 by Speaker Richardson and Representatives O’Neal and Ehrhart provides voters the opportunity to vote on a measure that would eliminate the car tag tax over the next two years and freeze property assessments at 2008 levels, allowing for a 2 percent annual increase on residential and a 3 percent on commercial property. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

H.B. 1244 by Representative Martin and Drenner. Originally drafted to provide income tax credits for teleworking, this legislation was amended in the Senate to create income tax cuts, a freeze on assessments, and a provision to cap state spending. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

H.B. 1155 by Representatives Knight, Tumlin, and Mosby. Seeks to revise and change certain provisions regarding withholding tax on distributions to nonresident members of partnerships, subchapter S corporations, and limited liability companies. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

Securities – Model Act
S.B. 358 by Senator Hamrick relates to securities and would institute a new Chapter 5 of Title 10 to be known as the “Georgia Uniform Securities Act of 2008.” This bill passed and was signed into law by the Governor on May 12th.

Temporary Loans
H.B. 562 by Representatives Dollar, Cheokas and Roberts defines a temporary loan as “a loan not more than 35 months in length where the intent of the loan is interim or short term in nature. A temporary loan may be made for the purpose of facilitating or securing a permanent mortgage within 35 months in connection with the purchase of a home." This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

Title Pawns
H.B. 393 by Reps. Oliver, Hugley, Thomas, Fludd and Stephenson. Sets up a new regulatory and fee structure for title pawn lenders. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

H.B. 398 by Representatives Oliver, Hugley, Thomas, Fludd and Stephenson amends so as to change the laws relating to pawnbrokers by having the annual percentage rate, computed in accordance with the federal Truth in Lending Act and regulations under the federal Truth in Lending Act for the first 30 day period and each 30 day period in which the pawn transaction might be continued or extended. The computation of the interest mentioned above would include all pawnshop charges incurred during the life of the loan. It would also make it a misdemeanor to be fined $500 and up to 12 months imprisonment if convicted, with the second offense escalating to a misdemeanor of a high and aggravated nature. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

H.B. 720 by Representatives Holmes and Brooks amends the code relating to interest and usury generally, so as to include title pawn transactions. Among a few of the provisions are the following:

All title pawn transactions would be limited to 30 day periods but may be extended or continued for additional 30 day periods.
A pawnbroker would have the right to take possession of the motor vehicle only upon written notice delivered via certified mail or statutory overnight delivery, return receipt requested, 10 business days prior to the repossession.
A pawnbroker may charge the following:
- A fee equal to no more than any fee imposed by the appropriate state to register a lien upon a motor vehicle title, but only if the pawnbroker actually registers such a lien;
- No more than $5.00 per day in storage fees, but only if an actual repossession pursuant to a default takes place on a vehicle which was not already in the pawnbroker’s possession and only for each day the pawnbroker must actually retain possession of the motor vehicle; and
- A repossession fee of $50.00 within 50 miles of the office where the pawn originated or a fee of $100.00 beyond 50 miles, but only if an actual repossession pursuant to a default takes place on a vehicle which was not already in the pawnbroker’s possession.

This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

S.B. 393 by Senators Chance, Thompson, Tarver and Staton restricts local governments´ power to require the payment of any fee for pawnbroker transactions or restrict the hours of operation of pawnbrokers. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

S.B. 545 by Senators Fort and Orrock seeks to change the law relating to pawnbrokers and provide different treatment of title pawn transactions. This proposed legislation seeks for a reduction in interest and fees for title pawn transactions and sets criminal and civil penalties for violation, and would change the provision relating to pawnbrokers liens. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

Trusts
H.B. 972 by Representatives Tumlin, Lane, and Lindsey. Enacts the “Uniform Prudent Management of Institutional Funds Act” which seeks to provide standards for charities to use in spending endowments. Financial institutions are not covered by the bill, but was monitored. This legislation passed both chambers and was signed into law by the Governor on May 6.

H.B. 447 by Representative O’Neal. Seeks to clarify state conformity with federal treatment of dividends received from real estate investment trusts and regulated investment companies. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

Underserved
H.B. 663 by Representatives Harbin, Fludd, Mosby, Smith, Brooks and Williard establishes the "Basic Credit Opportunity Act of 2007." The intent of the bill is to provide customer education for unbanked and underbanked customers to educate them of the various options for customer credit and financial services that are available in order to improve their credit ratings and qualify for mainstream financial services. It also has a provision on how disclosure of agreement terms should be written, the conditions, and the cost of obtaining credit. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

H.R. 827 by Representative Harbin creates a House Study Committee on Unbanked and Underbanked consumers. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

S.B. 489 by Senators Chance, Staton, Tarver, Thompson and Rogers. Create a new licensed entity within the Georgia Department of Banking and Finance that would cater to individuals who may not have a traditional bank account. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

Viaticals
H.B. 172 by Representatives Wendell, Knox, Jacobs and Coan amends the "Georgia Securities Act of 1973" so as to provide for changes to the terms "securities" and "viatical investments." The change clarifies and conforms state law to federal standards. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

Watercraft Titling
H.B. 1000 by Representatives Heard, Parsons, Harbin, and Forester would provide for titling system for boats, and passed the House with the understanding that the bill would be amended on the Senate to make the titling voluntary. The House never reconsidered the bill after it had been passed by committee substitute by the Senate, and therefore this bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

Wire Transfers
H.B. 1028 by Representatives Rice, Fleming, Keen, Mills, and Hill seeks to provide a 2% fee on wire transfers with a corresponding tax credit on the individuals income tax filing. Financial institutions are exempted from imposing the fee. This bill did not pass during the 2007-2008 General Assembly and will need to be reintroduced in 2009 in order for it to become law.

The GCUA Lobbyists: Brandee Bickle, Mike Culbertson and Cindy Connelly represent the membership at the Capitol throughout the session. You can contact Brandee, Mike or Cindy with questions about legislation at 770-476-9625 or 800-768-4282.

Committees:
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Committees:
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Committees:
HC:W&M

Committees: SC:I&L

Committees: HC:Judy

Committees: HC:W&M

Committees:
SC:I&L

Committees:
HC:Judy

Committees:
HC:W&M