​ATLANTA, GA – The Georgia General Assembly will suspend the 2020 legislative session indefinitely after Friday, March 13, the 29th Legislative Day. The suspension is out of an abundance of caution and in the interest of health and safety of members, staff and the public given the prevalence of the coronavirus. Lt. Governor Geoff Duncan and Speaker of the House David Ralston have mutually agreed to suspend the session and resume at a future date to be determined.
 
“We continue to urge calm and appropriate responses to the coronavirus situation. However, the current environment demands that we take additional preventative action,” said Lt. Governor Geoff Duncan. “Speaker Ralston and I are working diligently to ensure that, at the appropriate time, the General Assembly resumes its critically important work.”
“We do not take this action lightly, but after discussions with Governor Kemp, we feel this is a prudent measure which will ensure an orderly legislative session,” said Speaker David Ralston. “I appreciate very much the cooperation of Lt. Governor Duncan, and working together, our House and Senate stand ready to support the state’s response to the coronavirus. We look forward to resuming the legislative session and returning to the people’s business.”
The House and Senate will reconvene for the 30th Legislative Day at a future date and time to be set by Lt. Governor Duncan and Speaker Ralston under the terms of the joint adjournment resolution adopted by both chambers.
 
Earlier today, both the House and Senate adopted the Amended Fiscal Year 2020 state budget. That budget includes $100 million in funding to address any coronavirus-related needs which may arise.
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Media Contacts:
Hannah Yu
Press Secretary – Lt. Governor’s Office
Hannah.yu@ltgov.ga.gov
Kaleb McMichen
Director of Communications – Speaker’s Office
kaleb.mcmichen@house.ga.gov

Posted March 12th, 2020 in David Ralston, Geoff Duncan. Tagged: Lt. Governor Geoff Duncan, Speaker of the House David Ralston.

SB 415 was on the Senate Rules Calendar for a vote on Tuesday.  CBA issued an urgent call to action to our members on Monday evening.  The bill was presented on the Senate Floor by Sen. Steve Gooch (R), Dahlonega.  The bill was highly debated and the debate lasted almost five hours.  At the end of the debate, Sen. Gooch made a motion to table the bill and the motion passed.  On Thursday, a motion was made to remove the bill from the table, but the motion failed with a vote of 18-31.  Therefore, the bill did not crossover.    

This week, the legislature completed days 26 through 29 of the 40 day session.  Thursday was crossover day, or Day 28 of the session.  Crossover day is the last day for legislation to pass the chamber in which it was introduced and transfer to the other chamber for consideration.  Senate bills must pass the Senate and House bills must pass the House.  Any bill that does not receive a vote in its initial chamber by Day 28 cannot move on in the legislative process until the next legislative session. 
 
A new adjournment resolution was passed by both the House and Senate on crossover day prior to the notice of the suspension of the session.  HR 1493 is the adjournment resolution. 
 
HB 452 was introduced in the House by Representative Steven Sainz (R), Woodbine, during last legislative session.  The bill would require financial institutions to provide certain information related to delinquent taxpayers to the Department of Revenue.  The bill was assigned to the Judiciary Committee.  The bill was amended in Committee and passed as a substitute.  The bill was passed by the House with a vote of 115-42. 
 
HB 488 - Prepaid Cards was passed by the House with a vote of 144-15. 
 
HB 865 - Probate Revisions was passed by the House with a vote of 150-12.
 
HB 1008 - Manufactured Homes was passed by the House with a vote of 166-1.    
 
HB 1073 - Regional Development Authorities was passed by the House with a vote of 155-11.    
 
SB 442 - Property Owner Associations was passed by the Senate with a vote of 33-20. 
 
SB 443 - Garnishment Revisions was passed by the Senate with a vote of 47-0.    
 
SB 462 - GILA was passed by the Senate with a vote of 54-0. 
 
SB 493 - Cybersecurity Safe Harbor was passed by the Senate with a vote of 30-18.  

HB 5 - Georgia Prospective Employer Act by Rep. Park Cannon (D), Atlanta.
 
HB 42 - Professional Licensing Boards by Rep. Scot Turner (R), Holly Springs.
 
HB 81 - Contracts by Rep. Todd Jones (R), South Forsyth.
 
HB 116 - Minimum Wage by Rep. Dewey McClain (D), Lawrenceville.
 
HB 402 - Handicapped Persons by Rep. Houston Gaines (R), Athens.
 
HB 497 - Trusts by Rep. Bonnie Rich (R), Suwanee.
 
HB 523 - Local Government by Kasey Carpenter (R), Dalton.
 
HB 532 - Banking and Finance by Rep. Jeff Jones (R), Brunswick.
 
HB 552 - Local Government; Banking Improvement Zones by Rep. Spencer Frye (D), Athens,
 
HB 729 - Land Installment Contracts by Representative Debra Bazemore (D), South Fulton.
 
HB 762 - FDIC Assessment Tax Deduction for Large Banks by Representative John Carson (R), Marietta.
 
HB 763 - FinTech Sandbox by Representative Todd Jones (R), South Forsyth.
 
HB 768 - Rights of Military Personnel by Representative Sandra Scott (D), Rex.
 
HB 769 - Veteran Housing Assistance by Representative Sandra Scott (D), Rex.
 
HB 776 - Servicemember Foreclosure Relief by Representative Billy Mitchell (D), Stone Mountain.
 
HB 785 - Electronic Notary by Representative Joseph Gullett (R), Dallas,
 
HB 955 - Elder Abuse by Representative Chuck Efstration (R), Dacula.
 
HB 978 - Prohibition of Retaliation Against Elder Abuse Reporters by Representative Bee Nguyen (D), Atlanta.
 
HB 1089 - Tort Reform by Representative Tom McCall (R), Elberton.
 
HB 1097 - Elder Financial Abuse Task Force by Representative Calvin Smyre (D), Columbus.
 
HR 875 - Cannabis Finance Study Committee by Representative Dar’shun Kendrick (D), Lithonia.
 
HR 876  - Resolution Urging Federal Action RE: Cannabis Banking by Representative Dar’shun Kendrick (D), Lithonia.
 
HR 933 - HOA Study Committee by Representative William Boddie (D), East Point.
 
HR 1093 - Cybersecurity Study Committee by Representative Don Parsons (R), Marietta.
 
SB 178 - Specialized Land Transactions by Senator P.K. Martin IV (R), Lawrenceville.
 
SB 286 - Anti-Discrimination Against Racial Hairstyles by Senator Tonya Anderson (D), Lithonia.
 
SB 309 - Local Government Infrastructure Financing by Senator Jesse Stone (R), Waynesboro.
 
SB 329 - Motor Vehicle Title Loan Act by Senator Randy Robertson (R), Cataula.
 
SB 390 - Tort Reform by Senator Steve Gooch (R), Dahlonega.
 
SB 444 - Condemnation by Senator Harold Jones II (D), Augusta.

SB 415 was presented to the Senate Insurance and Labor Committee on Tuesday by Sen. Steve Gooch (R), Dahlonega.  The bill was passed by the Committee. 
 
For more information on the bill and the issues that it addresses, please visit https://www.balancethescalesga.com/.    We urge you to contact your Senators and ask that they vote for SB 415.
 
HB 1089 was introduced in the House by Rep. Tom McCall (R), Elberton on Tuesday.  There were over 40 sponsors on the bill.  The bill was assigned to the Special Committee on Access to the Civil Justice System.  This bill is similar to SB 415; however, there are some key differences. 
HB 1089 includes language to revise the “Temporary Health Care Placement Decision Maker for an Adult Act” that would all a person who exercised the power to consent to a transfer, admission, or discharge to or from a nursing home to also execute a binding arbitration agreement.  CBA will continue to monitor the progress of this bill.

​This week, the legislature completed days 22 through 25 of the 40 day session.  Next week, we will have crossover day, or Day 28 of the session.  Crossover day is the last day for legislation to pass the chamber in which it was introduced and transfer to the other chamber for consideration.  Senate bills must pass the Senate and House bills must pass the House.  Any bill that does not receive a vote in its initial chamber by Day 28 cannot move on in the legislative process until the next legislative session. 
 
HB 488 was on the House Rules Calendar for Day 25; however, a motion was made to recommit the bill to the Rules Committee. 
 
HB 781 was presented to the Senate Banking & Financial Institutions Committee on Tuesday by Rep. Bruce Williamson (R), Monroe.  The bill was passed by the Committee. 
 
HB 847 was passed by the House with a vote of 159-7 on Thursday. 
 
HB 865 was presented to the House Judiciary Kelly Subcommittee on Monday by Rep. Mitchell Scoggins (R), Cartersville.  A substitute bill was presented that included changes to the language as it impacts financial institutions at the request of CBA.  The bill was passed by the Committee. 
 
HB 968 was passed by the House with a vote of 165-0 on Monday.
 
HB 969 was passed by the House with a vote of 168-0 on Wednesday.
 
HB 987 was introduced in the Senate on Monday and assigned to the Senate Regulated Industries and Utilities Committee.
 
HB 1008 was presented to the House Agriculture & Consumer Affairs Committee on Tuesday.  The bill was passed by the Committee. 
 
HB 1073 was introduced in the House by Rep. Sam Watson (R), Moultrie.  The bill was assigned to the Governmental Affairs Committee.  This bill relates to development authorities and creates regional development authorities. 
 
HB 1097 was introduced in the House by Rep. Calvin Smyre (D), Columbus.  The bill was assigned to the Human Relations & Aging Committee.  The bill creates an Elder Financial Exploitation Task Force and provides for members of the Task Force.  While Georgia Bankers Association and Georgia Credit Union Affiliates along with the Commissioner of the Department of Banking & Finance are names as members, CBA was not listed as a member.  CBA has been in discussions with the author of the bill and anticipates being added as a member of the task force in a substitute bill.
 
SB 315 was introduced in the House and assigned to the House Regulated Industries Committee.
 
SB 329 was presented to the Senate Finance Committee on Monday by Sen. Randy Robertson (R), Cataula.  This bill relates to Motor Vehicle Title Loans and authorizes the Department of Banking & Finance to license and regulate motor vehicle title lending.  The vote on the bill by the Committee was four to four with Chairman Chuck Hufstetler (R), Rome, issuing the tie break vote to pass the bill. 
 
SB 390 was presented to the Senate Judiciary Committee on Tuesday by Sen. Steve Gooch (R), Dahlonega.  Language included in SB 390 that was also included in SB 415 was stripped out in a committee substitute.  What remains was mostly civil procedure reforms.  The substitute bill was passed by the Committee.
 
SB 429 was passed by the Senate with a vote of 54-0 on Wednesday. 
 
SB 442 was presented to the Senate Judiciary Committee on Monday by Sen. William T. Ligon, Jr. (R), Brunswick.  The bill was passed by the Committee.  The bill was placed on the Senate Rules Calendar for Day 26. 
 
SB 443 was presented to the Senate Judiciary Committee on Monday by Sen. Jesse Stone (R), Waynesboro.  The bill was passed by the Committee.    
 
SB 444 was introduced in the Senate by Sen. Harold Jones II (D), Augusta.  The bill was assigned to the Government Oversight Committee.  The bill provides for an alternative process for county, municipality, or consolidated government to condemn certain blighted properties.  CBA has concerns with provisions of this bill relating to occupancy status.  Language indicates that if the property has not been legally occupied, has not had a tenant, or has been empty for ten consecutive years or has been less than 30% occupied for at least 20 years then it is considered condemned.  CBA will continue to monitor the progress of this bill.
 
SB 462 was introduced in the Senate on Monday.  The bill was presented to the Senate Banking & Financial Institutions Committee on Tuesday by Sen. John Kennedy (R), Macon.  The bill was passed by the Committee.  The bill was placed on the Senate Rules Calendar for Day 26.
 
SB 493 was introduced in the Senate by Sen. Bruce Thompson (R), White.  The bill was assigned to the Veterans, Military, and Homeland Security Committee.  The bill provides standards for cybersecurity programs to protect businesses from liability.  The bill was passed by the Committee.

 ICBA is calling on community bankers to voice support for a proposal to exempt USDA and SBA guaranteed loans from proposed environmental impact statement requirements under the National Environmental Protection Act. ICBA's custom letter to regulators on its Be Heard grassroots action center says all guaranteed loan programs should be exempt from NEPA requirements because they are financed by the private sector. Comments are due Tuesday, March 10. Submit comments today.

​Last week, SB 415 was introduced in the Senate by Senator Steve Gooch (R), Dahlonega.  On Thursday, a large and diverse group of small businesses, health care providers, and trade association (including CBA) held a press conference at the State Capitol along with numerous Senators to applaud the introduction of the bill.   Click Here for more information on supporters of the bill
 
This legislation—which was the result of months of work by the Senate Study Committee on Reducing Georgia’s Cost of Doing Business—aims to reduce frivolously litigation and ensures that small businesses, health care providers, the agriculture industry, and countless others have an even playing field in Georgia’s legal system. 
 
For more information on the bill and the issues that it addresses, please visit https://www.balancethescalesga.com/.    We urge you to contact your Senators and ask that they vote for SB 415.
 
The bill was presented to the Senate Insurance & Labor Subcommittee on Wednesday morning with the Committee hearing approximately two hours of testimony.  On Friday afternoon, the Subcommittee heard language from the author of the bill that would amended the bill.  The bill as amended received a do pass by committee substitute.  

​We’ve officially made it halfway through the 40 day session.  This week, the legislature completed days 17 through 21 of the session.
 
HB 488 was presented to the House Judiciary Non-Civil Reeves Subcommittee by Rep. Martin Momtahan (R), Dallas on Thursday.  Several proposed amendments were heard by the committee though only one amendment was made to the bill.  The amendment does not impact the financial industry.    The bill was passed by the Committee.  On Friday morning, the bill was presented to the House Judiciary Non-Civil Full Committee and was passed by the Committee.  CBA will continue to monitor the progress of this bill.
 
HB 523 deals with short term rentals and was presented to the House Regulated Industries Committee by Rep. Kasey Carpenter (R), Dalton, and was passed as a committee substitute on February 5, 2020.   The changes made relate to equal treatment of all rentals.  This is no longer a short term rental bill and relates to any type of rental properties.  It will prohibit any additional licenses or registrations of rental properties. 
 
HB 781 was presented to the Senate Banking & Financial Institutions Committee on Tuesday by Rep. Bruce Williamson (R), Monroe.  This was a hearing only so no action was taken on the bill.  Chairman William T. Ligon, Jr. (R), Brunswick indicated that there would be a vote at next week’s meeting. 
 
HB 785 was presented to the House Judiciary Committee on Wednesday by Rep. Joseph Gullett (R), Dallas.  This bill deals with electronic notarizations and remote online notarizations.  There were several groups that testified in support of the bill and there were several groups opposed to the bill as it relates to real estate closings.  Given the number of comments heard during testimony and questions from Committee members, there is a lot of work that needs to be done on the bill before it will be able to advance.  The author of the bill committed to working with all parties to draft language that would be amenable to all parties. 
 
HB 955 was introduced in the House by Rep. Chuck Efstration (R), Dacula.  The bill was assigned to the House Judiciary Committee.  This bill deals with elder abuse and financial exploitation.  The bill makes failure to report abuse or exploitation a high and aggravated misdemeanor instead of a misdemeanor.  The change in severity of the crime and burden that it places on our institutions (i.e. tellers, CSRs) is troubling and CBA opposes the bill as drafted.  CBA is working with the author of the bill to see if language can be tweaked.
 
HB 968 was introduced in the House by Rep. Chuck Efstration (R), Dacula.  The bill was assigned to the House Judiciary Committee.  The bill relates to a court of appeals decision relating to warranties.  The decision shifted warranties to a mandated eight year expiration instead of the stated warranty given by a company.  For example, if someone purchased a new roof with a 25 year warranty, the warranty would no longer be valid after eight years.  The bill passed unanimously by the committee on Tuesday and was placed on the House Rules Calendar for a vote on Day 22 of the session.
 
HB 969 was introduced in the House by Rep. Chuck Efstration (R), Dacula.  The bill was assigned to the House Judiciary Committee.  The bill relates to fair housing and pertains to the unlawful practice in selling or renting dwellings and the procedures, remedies, and judicial review related to this.  The bill was passed by the Committee on Tuesday.    


HB 987 was introduced in the House by Rep. Sharon Cooper (R), Marietta.  The bill was assigned to the Health and Human Services Committee.  The bill relates to the “Disabled Adults and Elder Persons Protection Act”.  The bill states that no person shall discriminate or retaliate in any manner again any person who makes a report of elder abuse or financial exploitation or any disable adult or elder person that is the subject of the report.  The bill was passed by the Committee.  The bill was passed by the House with a vote of 160-1 on Friday. 
 
HB 1008 was introduced in the House by Rep. Joe Campbell (R), Camilla.  The bill was assigned to the House Agriculture and Consumer Affairs Committee.  This bill deals with factory built building and dwellings.  The bill revises language to state that the structure may or may  not contain a metal chassis.  CBA will monitor the progress of this bill.
 
HR 875 was presented to the Special Rules Committee by Rep. Dar’shun Kendrick (D), Lithonia, on Tuesday.  This was a hearing only presentation.
 
HR 933 was presented to the Special Rules Committee by Rep. William Boddie (D), East Point, on Tuesday.  The Resolution was passed by the Committee.
 
HR 1093 was introduced in the House by Rep. Don Parsons (R), Marietta.  This Resolution establishes a Joint Study Committee on Cybersecurity.  The Resolution was passed by Energy , Utilities & Communications Committee on Wednesday.  CBA will monitor the progress of this resolution.
 
SB 429 was introduced in the Senate by Senator William T. Ligon, Jr. (R), Brunswick.  The bill was assigned to the Senate Judiciary Committee.  In addition to other areas of the law, this bill makes a few code revisions under Title 7.  The bill was passed by the Committee on Wednesday.
 
SB 442 was introduced in the Senate by Senator William T. Ligon, Jr. (R), Brunswick.  The bill was assigned to the Senate Judiciary Committee.  This bill prohibits amendments to property owners’ association instruments and covenants that restrict rental of residential lots and plots.  CBA will monitor the progress of this bill. 
 
SB 443 was introduced in the Senate by Senator Jesse Stone (R), Waynesboro.  The bill was assigned to the Senate Judiciary Committee.  This bill relates to procedures for garnishment proceedings.  CBA is reviewing the bill in detail and trying to determine if there are any adverse impacts for financial institutions.  CBA will monitor the progress of this bill.
 
SB 462 was in the Senate Hopper on Friday.  The author of the bill is Senator John F. Kennedy (R), Macon.  At the time of this article, a copy of the proposed bill was not available.  The description of the bill states that the bill will transfer duties, powers, responsibilities, and other authority relative to industrial loans from the Industrial Loan Commissioner to the Department of Banking & Finance.  CBA will monitor the progress of this bill. 

​HB 781 was presented on the House Floor on Tuesday by Representative Bruce Williamson (R), Monroe.  This is the Department of Banking and Finance’s annual housekeeping bill.  The bill passed the House with a vote of 167-0.  Now the bill moves to the Senate.  We anticipate the bill will be presented to the Senate Banking & Financial Institutions Committee next week.
We will continue to monitor the bill as it progresses.

​SB 309 was presented to the State and Local Government Operations Committee on Tuesday by Senator Jesse Stone (R), Waynesboro.  This bill establishes the Georgia Municipal and Local Government Infrastructure Finance Authority Act.  The bill provides a mechanism through which local governments may finance infrastructure at lower prevailing costs to make such mechanism available to the largest number of local governments feasible. 
 
Prior to the meeting, CBA discussed this bill with our Board of Directors and CBA’s general counsel to determine if there were any major objections to this bill or if any aspects of the bill would have a material impact to community banks.  Board members indicated that while this may change the municipal bond market somewhat there were no objections to the bill unless this bill changes anything relating to Tax Anticipation Notes (TAN) that community banks make.  
 
During the hearing, Senator Stone stated that there was no intention of changing the current practices for community banks.  If a bank wants to move forward, then they can with existing bond counsel.  The bill only relates to revenue bonds not general obligations for municipalities or cities/counties.  Bank can continue to use the relationships that they have built over the years to meet the financing needs of the municipalities and cities/counties.  While Georgia Bankers Association testified during the hearing that they opposed the bill from a competition standpoint, CBA remained neutral on this bill as we do not believe this bill has a significant impact on the community banking industry.  After reviewing research provided by the Georgia Municipal Association, most of the lending that is done on capital expenditures for municipalities is done by big banks.  Community banks do not engage in this type of specialized lending on a routine basis.  Should your bank have objections to this legislation, then please contact CBA to discuss your concerns.  The bill was passed unanimously by the Committee. 

​HB 847 was presented to the Agriculture and Consumer Affairs Committee Representative John Corbett (R), Lake Park on Tuesday.  This Bill relates to hemp farming and establishes certain state requirements in order to comply with federal laws and regulations.  This bill is a clean up from HB 213 from last session.  The USDA did not come out with rules and regulations until last year.  The bill clarifies the ability of a greenhouse grower to sell to a farmer.  In addition, clarification was added so that college and universities can conduct research for third parties. 
 
The author of the bill was very clear that Hemp is not a controlled substance and therefore not subject to civil forfeiture laws.  The prosecuting attorney’s council testified that this is indeed true.  Numerous questions were raised by several legislators about whether or not the bill may be criminalizing hemp and contradicting with federal law.  The core issue during the discussion was presented by the criminal defense attorneys as the lack of willingness or affordability of a test for field officers.  Both the author of the bill and the chairman of the committee indicated that as long as the transporter has the proper paper documentation with them as it relates to Hemp, then there should not be any issues. 
 
The bill was passed by the Committee.  CBA will continue to monitor the progress of the bill.

​This week, the legislature was back from the break last week and completed days 13 through 16 of the 40 day session.  The break was designed to allow House members the time to thoroughly review the budget during appropriations meetings.  The supplemental budget was presented to the House on Wednesday and HB 792 passed with a vote of 126-46. 
 
HB 865 was introduced in the House by Rep. Mitchell Scoggins (R), Cartersville.  While the majority of this bill relates to code revision of the “Revised Probate Code of 1998”, there is a section in the bill that impacts Title 7 as it relates to deposits of deceased intestate depositors  CBA has discussed our concerns with the author of the bill.  The author and the Georgia Bar have worked to revise the bill to address our concerns related to the process for paying out funds pursuant to an affidavit from heirs, a funeral home, or a medical provider. However, the latest draft of the bill still contains provisions that would alter a bank’s duties upon receipt of notice from a court or other parties. This is a substantial change from the current law.  The bill is not yet on the Committee schedule for a hearing.  We will continue to monitor the progress of the bill. 
 
HB 969 was in the House Hopper on Friday.  The author of the bill is Rep. Chuck Efstration (R), Dacula.  The bill relates to fair housing and pertains to the unlawful practice in selling or renting dwellings and the procedures, remedies, and judicial review related to this.  CBA will monitor this bill. 


HB 978 was in the House Hopper on Friday.  The author of the bill is Rep. Bee Nguyen (D), Atlanta.  The bill relates to the “Disabled Adults and Elder Persons Protection Act”.  The bill prohibits retaliation against a person relating to a report that a disabled adult or elder person is in need of protective services or has been the victim of abuse, neglect, or exploitation.  CBA will be  monitoring the bill to make sure this does not cause a private cause of action for our bankers. 
 
HR 1093 was introduced in the House by Rep. Don Parsons (R), Marietta.  This Resolution establishes a Joint Study Committee on Cybersecurity.  CBA will monitor the progress of this resolution.
 
SB 315 was presented to the Senate Judiciary Committee by Senator Lindsey Tippins (R), Marietta.  This bill relates to mechanics and materialmen liens and rights.  The bill was passed by the Senate on Friday with a vote of 53-0. 
 
SB 390 was introduced in the Senate by Senator Steve Gooch (R), Dahlonega.  This bill is a tort reform bill that would streamline the process of litigation and reduce costs for Georgia’s industries, small businesses, and citizens.  The bill was assigned to the Judiciary Committee.
 
SB 415 was introduced in the Senate by Senator Steve Gooch (R), Dahlonega.  This bill is a tort reform bill that would streamline the process of litigation and reduce costs for Georgia’s industries, small businesses, and citizens.  This bill is virtually the same as SB 390; however, Part I, Section 1-1 of SB 390 was deleted.  This is the priority bill for NFIB that was discussed at CBA’s Small Business Day at the Dome.  The bill was assigned to the Insurance Committee.

Days 10 through 12 of the session are now in the books.  On Wednesday, the legislature passed SR 712 that outlined a new adjournment and meeting schedule for the legislative session through crossover day.  Changes were made to the calendar for the session as the House needed more time to work on the state budget.  Now, the legislature will be adjourned until February 18, 2020 in order to have time to work on the budget.  The one constitutional mandate for each legislative session is balancing the state budget.  Given the budget deficit of $300 million, the legislature is hard at work to determine where cuts are needed for all state agencies.  The Governor has provided a proposed amended budget for 2020 and state agencies have been called before the legislature to explain the impact to each of their departments directly. 

On Wednesday, the Department of Banking & Finance (Department) presented their budget to the Appropriations General Government Subcommittee.  In an effort to illustrate how the state budget impacts a department that is important to our industry, I want to outline the comments made during the meeting by Commissioner Kevin Hagler.  The Department’s revenues total $23 million while their budget is $13 million, which means the Department contributes $10 million in revenues to the State of Georgia as they do not have a designated fund for their revenues.  The Department is funded 100% by state funds and they do not take any federal funds.  Governor Brian Kemp has asked state departments to cut 4% for the current fiscal year (July 1st-June 30, 2020) and 6% for the 2021 fiscal year (July 1st-June 30, 2021).  85% of the Department’s budget is related to personnel costs so there are no easy cuts for them to make.  The current headcount for Department employees is 108 positions, but the cuts will result in a headcount of 102 positions.  The Supervision Division (insured institutions-banks, credit unions, holding companies) will feel the most impact as four of the positions will come from their headcounts.  There is one vacant position that will be eliminated and three retirements and those positions will not be replaced.  The Department had a Chief Information Officer position that was vacated a year ago and they will not replace that position either.  One employee in support services will be a reduction in force.  With all of these changes, the Department had to reallocate the funds that are in their budget.  For the 2020 amended budget, the training budget will also be cut. 
 
For the 2021 budget, the Supervision Division will cut another position that will result from a retirement.  Funds for real estate will be reduced as the Department has made a decision to close the Loganville field office.  Those employees will either work from home or be provided a landing spot at the main office of the Department.  While examiners are typically on-site at institutions for the majority of the time, the trend in the regulatory industry has been one of moving to reviewing bank information remotely and electronically, which would actually result in the examiners being in the office more often.  This makes the decision to close the Loganville office that much tougher.  Telephone and internet charges will be reduced in the 2020 budget as a result of the office closure.  One of the other major changes for the 2021 budget would include moving the Georgia Industrial Loan Act (GILA) from the Office of the Insurance Commissioner to the Department.  The budget for the GILA transfer would result in an increase of funds to th Department of $487,000.  Commissioner Hagler indicated that this transfer is a result of an audit that noted that efficiencies could be realized by moving GILA to the Department.  The Department currently licenses 18,000 entities through their non-depository division through the Nationwide Multistate Licensing System & Registry (NMLS).  The Department would use NMLS to license the GILA licensees and would likely license the main office instead of all branch offices of GILA companies.  In addition, Commissioner Hagler would like to transition to risk focused examinations of GILA licensees instead of the requirement to perform an examination annually.  This is consistent with how the Department regulates the other non-depository licensees.  The Department is working with legislative counsel on a bill that would move GILA to the Department.  The Department will continue with business as usual until the legislation is passed.  The expected transition date is July 1st.  
 
Commissioner Hagler was asked whether or not the Department would continue to provide $10 million in excess funds to the State in 2021.  He indicated that the BB&T and SunTrust merger would result in a loss of fees totaling $6 million.  Therefore, it is expected that the Department will still be accretive to the State Budget by $4 million.  Commissioner Hagler was asked clarifying questions by several legislators as to whether the reductions in force were an elimination of vacant positions or an actual reduction in working employees.  Hagler clarified that the reductions are a reduction of working employees (retirements or reduction in force not being replaced) and would result in a actual reduction in head count.

​HB 488 was presented to the House Judiciary Non-Civil Reeves Subcommittee by Rep. Martin Momtahan (R), Dallas.  This bill relates to selling of store value gift cards.  During last session, CBA worked with the author of the bill to address concerns that we had with the bill as drafted.  The author of the bill worked during the off-session to come up with language that would be amendable to financial institutions.  As presented to the Subcommittee this week, the changes made by the author sufficiently address our concerns.  The meeting was a hearing only for the bill and no action was taken. 
 
HB 781 was placed on the House Rules Calendar for Day 13 of the session and should be voted upon by the House.  This is the Department of Banking and Finance’s annual housekeeping bill. 
 
HB 865 was introduced in the House by Rep. Mitchell Scoggins (R), Cartersville.  While the majority of this bill relates to code revision of the “Revised Probate Code of 1998”, there is a section in the bill that impacts Title 7 as it relates to deposits of deceased intestate depositors  As written, CBA has concerns with the bill in that it shifts the responsibility of determining the persons entitled to receive any funds, and the priority with which funds are paid to such persons, to the financial institution.  This bill was originally assigned to the Code Revision Committee, but was later withdrawn and reassigned to the House Judiciary Committee. 
 
SB 315 was presented to the Senate Judiciary Committee by Senator Lindsey Tippins (R), Marietta.  This bill relates to mechanics and materialmen liens and rights.  The bill was passed as drafted and no changes were made by the Committee. 

While the legislature will not be in session next Wednesday, the event will still go on!  We have made changes to the morning schedule for our bankers to include a discussion with State Treasurer Lynne Riley regarding SB 157 that was passed last session and the possibility of placing state deposits using the structure outlined in SB 157. ​

​CBA has Partnered with NFIB to present the Small Business Day at the Dome.  This important event is a chance for you to hear from key government leaders as well as network with other small business owners to get a first-hand account to what is happening in the Peach State!  Governor Brian Kemp and Vince Dooley are confirmed speakers for our event.  Registration is now open for this event.
 

HB 781 was presented to the House Banks & Banking Committee on Tuesday by Representative Bruce Williamson (R), Monroe.  This is the Department of Banking and Finance’s annual housekeeping bill.  As it relates to banks, the bill is truly clean-up in nature.  An amendment was made to the bill during the committee meeting to clarify the Department’s ability to waive residency requirements for a bank’s Boards of Directors.  The bill passed as a substitute from Committee. 
We will continue to monitor the bill as it progresses.

A hot topic in virtually every banker and bank regulator discussion these days relates to hemp and cannabis banking.  This week, the topic has now appeared under the Gold Dome. 

HB 847 was introduced by Representative John Corbett (R), Lake Park.  This Bill relates to hemp farming and establishes certain state requirements in order to comply with federal laws and regulations.  The bill was assigned to the Agriculture and Consumer Affairs Committee.
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HR 875 was introduced by Representative Dar’shun Kendrick (D), Lithonia.  This Resolution creates a House Study Committee on Financing Options for Cannabis-based Businesses. 

HR 876 was introduced by Representative Dar’shun Kendrick (D), Lithonia.  This Resolution urges the United States Congress to enact legislation removing cannabis from the federal Controlled Substances Act, exempting certain activities related to marijuana, facilitating the full spectrum of private banking services for cannabis related business, and encouraging scientific research related to cannabis products. 
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CBA will monitor the progression of the bill and resolutions.  Next week, CBA will be hosting a Safety & Soundness RAP Banker Regulatory Forum on February 5th.  During this forum, we will have roundtable discussions about banking marijuana businesses after our regulatory updates.  If you’d like to join us for this event, please click here to register.

This week, your legislators were hard at work and completed Days 5 through 9 of the 40 day session.  While progress was made on a number of items, the atmosphere was buzzing with all of the movements for the upcoming election for the Senate seat currently held by Sen. Kelly Loeffler.  Frustrations amongst legislators was high with internal politics at the Gold Dome relating to elections.      
 
HR 933 was introduced by Representative William Boddie (D), East Point.  This Resolution creates a House Study Committee on Homeowners’ Associations, Condominium Owners’ Associations, and Property Owners in Community Associations.   
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SB 286 was introduced by Senator Tonya Anderson (D), Lithonia.  This bill relates to hairstyles historically associated with race and prohibits discrimination in certain situations including fair housing. The bill was assigned to the Insurance and Labor Committee.  CBA will monitor this bill as it progresses.

SB 309 was introduced by Senator Jesse Stone (R), Waynesboro.  This bill establishes the Georgia Municipal and Local Government Infrastructure Finance Authority Act.  The bill provides a mechanism through which local governments may finance infrastructure at lower prevailing costs to make such mechanism available to the largest number of local governments feasible.  The Georgia Municipal Authority is behind this bill and sees this as a costs savings to governments.  This is a specialized lending area that many community banks do not participate in, but CBA will monitor the progress of this bill.  This bill was assigned to the State and Local Government Operations Committee.

SB 315 was introduced by Senator Lindsey Tippins (R), Marietta.  This bill relates to mechanics and materialmen liens and rights.  The bill was dropped in response to the Georgia Court of Appeals decision affecting GA’s Lien Law (Landmark Electric v ALA Services).  This bill would preserve a contractor’s right to sue under a breach of contract despite having otherwise waived their rights to place a lien on the subject property. This bill also expands the time period for a contractor to file an affidavit of non-payment to preserve their lien rights from sixty to ninety days.  The bill was assigned to the Judiciary Committee.   CBA will continue to monitor this progress of this bill.
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SB 329 was introduced by Senator Randy Robertson (R), Cataula.  This bill establishes the Motor Vehicle Title Loan Act.  The bill would allow the Department of Banking and Finance to license and regulate motor vehicle title lenders through the Nationwide Multistate Licensing System.  CBA wants/ to make sure that the Department receives appropriations sufficient to take on the new responsibilities without adversely impacting the oversight of the Department from a banking perspective.  ​The bill was assigned to the Finance Committee.  

​CBA has Partnered with NFIB to present the Small Business Day at the Dome.  This important event is a chance for you to hear from key government leaders as well as network with other small business owners to get a first-hand account to what is happening in the Peach State!  Governor Brian Kemp and Vince Dooley are confirmed speakers for our event.  Registration is now open for this event.

The 2020 Legislative Session kicked off on Monday, January 13, 2020 and we completed days one through four of this 40-day legislative session.  The 2020 session will be the second session of a two-year term of the Georgia Assembly.  So, all bills introduced during the 2019 session that did not pass and were not defeated will be live bills for the 2020 session.  To review some of the outstanding bills that may be debated and voted upon from last session, please look at the 2019 Legislation CBA is Tracking document for more information.  We will continue to closely watch bills that may have an impact on our industry.
 
HR 879 sets the schedule for the legislative session through Day 14.  While the legislature will not officially be in session next week, next week is reserved for budget hearings.

HB 781 was introduced by Representative Bruce Williamson (R), Monroe.  This is the Department of Banking and Finance’s annual housekeeping bill.  In regards to banks, the bill is truly clean-up in nature. 
 
Changes relate to approval of dividend payments under certain conditions; waiver of residency requirements for directors in certain circumstances; authorization of trust company and bank mergers; authorize certain activities at representative offices outside of Georgia; change registration requirements for a bank or bank holding company with a representative office; reduce the number of days the department has to approve or disapprove applications for branch offices; eliminate the department’s authority to waive publication requirement for certain procedures; add night depository to list of extensions not requiring approval; update restrictions on location of extensions; and, remove notification requirement for out-of-state banks establishing or acquiring additional branches.
 
CBA supports this bill and will continue to monitor activity as the bill progresses.