 This week, CBA’s priority bill, SB 157, was passed by the House by a unanimous vote of 168-0! CBA has secured unanimous support vote for the bill throughout the entire legislative process—Senate Banking & Financial Institutions Committee, the full Senate, House Banks & Banking Committee and the full House. All of Georgia’s legislators showed their understanding of the importance of providing an option for community banks to fairly compete with large, mostly out of state bank deposit gathering stores for local municipal deposits. Now, the bill will go to Governor Kemp for signature. We greatly appreciate Sen. John Kennedy (R), Macon and Rep. Dale Washburn (R), Macon, guiding the bill through this legislative process. We are thankful for our partnerships with National Federation of Independent Businesses (NFIB), the Georgia Municipal Association (GMA), and the Association of County Commissioners (ACCG) in making this bill a possibility.
Currently, Georgia’s community banks have nearly $4 billion of municipal deposits on their balance sheets. By eliminating the pledging requirements by using a deposit placement service, the impact on liquidity will be substantial. Moreover, community banks now have a level playing field to compete with large, out-of-state deposit gathering institutions for all municipal deposits. CBA estimates that the total municipal deposit marketplace is $22 billion. With an average loan to deposit ratio of 75%, Georgia’s community banks will be able to dramatically increase lending in their local markets thereby helping small businesses start and grow, funding homeownership as well as a variety of agriculture and consumer loans. SB 157 will change people’s lives and all of us at CBA are proud, honored and humbled to have had the opportunity to impact the Georgia’s community banking industry in this most positive manner!
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 HB 314 — Georgia Uniform Certificate of Title for Vessels Act by Rep. Ron Stephens (R), Savannah, was passed by the Senate with a vote of 46-2 on Thursday. If the bill is signed by the Governor, then this will mean big changes for boats in Georgia. Every vessel using the waters of this state shall be titled unless it is exempt from the numbering requirements. Every outboard motor greater than 25 horsepower used to propel a tilted vessel shall be included in the vessel title. Fees for numbering vessels for registration period of three years are outlined within the bill. The effective date of this legislation will be July 1, 2020. It is important to note that the additional titling requirements may impact the way your institution perfects its security interest in boats within the State of Georgia. Assuming the bill is signed by the Governor, we would encourage you to review your policies with respect to making loans secured by boats to ensure that they remain adequate in light of the changes to Georgia law outlined in this bill.
 PACE Financing Loans: SB 162—Local Government by Sen. Matt Brass (R), Newnan, was presented in the House Energy, Utilities and Communications Committee on Thursday even though it was tabled at last week’s committee meeting; however, the contents of the bill relating to PACE (property assessed clean energy) Financing of disaster mitigation improvements and broadband services were completely stripped out of the bill. While the bill number and title will look the same, the content of the bill was completely replaced and became a vehicle for another bill. The content of the new bill substitute relates to short-term rentals.
While the PACE Financing language was stripped, we do expect the author to continue working with CBA and other interested parties to craft language that would be acceptable to all parties for the next legislative session.  The legislature completed days 36 through 39 of the session. Only one day left in this legislative session! Tuesday, April 2nd is Day 40 of the legislative session or Sine Die. What is Sine Die? Sine Die is the term used to describe the last legislative day of the session. This is the last day a bill can pass. If a bill does not pass by the end of Day 40, then it will have to wait until the next legislative session. A bill that passes the legislature does not automatically become a law. The Governor has the chance to veto it. If the Governor does not veto the bill, then it becomes law. Most laws go into effect in Georgia on July 1st.
New bill that CBA is tracking: HB 694 – Dekalb County; Clerk of Superior Court by Rep. Billy Mitchell (D), Stone Mountain, was introduced in the House on Monday. The bill requires that tax parcel identification number information be included on documents recorded in the real property records of said clerk; to provide for related matters; to repeal conflicting laws; and for other purposes. This language is virtually the same as the bill passed last legislative session for Fulton County. The bill was passed by the House with a vote of 152-5 on Thursday. Update to bills that CBA is tracking: HB 70 — Guardian and Ward by Rep. Chuck Efstration (R), Dacula, was placed on the Senate Rules Calendar for a vote by the Senate for Day 39 or 40 of the legislative session. HB 193 — Banking and Finance, relating to the savings promotion raffles offered by state-charted banks and credit unions was presented by Rep. Emory Dunahoo (R), Gainesville, was passed by the Senate with a vote of 51-2 on Friday. The bill now goes to the Governor for signature. HB 239 – Georgia Business Court by Rep. Chuck Efstration (R), Dacula, was placed on the Senate Rules Calendar for a vote by the Senate for Day 39 or 40 of the legislative session. HB 288 – Superior Courts by Rep. Alan Powell (R), Hartwell, was placed on the Senate Rules Calendar for a vote by the Senate for Day 39 or 40 of the legislative session. HB 307 — Abandoned Motor Vehicle Act by Rep. Alan Powell (R), Hartwell, was placed on the Senate Rules Calendar for a vote by the Senate for Day 39 or 40 of the legislative session. HB 490 — Banking & Finance by Rep. Jason Ridley (R), Chatsworth, was placed on the Senate Rules Calendar for a vote by the Senate for Day 39 or 40 of the legislative session. SB 37 — Statute of Frauds by Sen. William T. Ligon, Jr. (R), Brunswick, was passed by the House with a vote of 52-1 on Monday. Since changes were made in the House, the bill now goes back to the Senate for an agree/disagree vote. SB 110 — Statewide Business Court by Sen. Jesse Stone (R), Waynesboro, was passed by the House with a vote of 155-10 on Monday. Since changes were made in the House, the bill now goes back to the Senate for an agree/disagree vote.  By James Bates Brannan Groover LLP
On March 13, 2019, the Georgia Supreme Court issued a new opinion in FDIC v. Loudermilk, et. al., the FDIC’s case against former directors and officers of The Buckhead Community Bank (“BCB”). The Georgia Supreme Court’s opinion focused on whether directors and officers can be held jointly and severally liable for damages, or whether such damages should be apportioned relative to individual fault. This opinion is ground-breaking because the court concluded that if directors and officers act “in concert” –where the acts of one are the acts of another – that all directors and officers can be held jointly and severally liable, even if one or more was not actually at fault. However, this opinion left open the door onwhether the FDIC actually proved joint and several liability in this case, an issue that will be determined in the underlying appeal. This new opinion, and the underlying case history, is important to understand so that bank directors and officers know how to best situate themselves to defend against potential claims. On October 25, 2016, the jury in Loudermilk found the former BCB directors and two BCB loan officers liable for $5 million of the $21 million in damages claimed by the FDIC. These damages were tied to ten loans reviewed and approved by the defendants. Interestingly, in the jury’s verdict, the jury did not find the two former BCB officers liable on certain loans. Regardless, the district judge entered a final judgment for the full amount of damages and held each former BCB director and officer jointly and separately liable for the acts of all the other former BCB directors or officers, regardless of actual fault. The district court did so on the basis that all former BCB directors and officers had acted in concert with each other in approving each loan on behalf of BCB. On appeal to the United States Court of Appeals for the Eleventh Circuit (“Eleventh Circuit”), the former BCB directors and officers sought a retrial, arguing that the jury should have been instructed that any damages should be apportioned between each of the former directors and officers according to their individual fault. If the jury had been instructed to do so, any one of the former BCB directors or officers not at fault in the making of a loan would not have been held liable for the amount of the judgment entered for damages on that loan. This makes sense, particularly in a loan committee or board meeting context, where a director or officer may vote against a specific action. However, the district judge deniedtwo requests by the former BCB directors’ and officers’ request for apportionment. The Eleventh Circuit recognized that the issues of apportionment or joint and several liability needed to be answered by the Georgia Supreme Court. This led to the Georgia Supreme Court’s review of the case and its March 13, 2019 opinion. In its opinion, the Georgia Supreme Court held that Georgia’s apportionment statute does apply to cases where monetary losses are caused by the negligence of more than one person, such as in the Loudermilk case. However, the Georgia Supreme Court also held that Georgia’s apportionment statute had not eliminated Georgia common law on joint and several liability if negligent parties acted in concert with each other. In other words, the Georgia Supreme Court recognized that if the FDIC had proven that all of the former BCB directors and officers had acted in concert together, that all former BCB directors and officers could be held liable jointly, as well as individually, for all damages arising from each loan. The Georgia Supreme Court’s opinion did not outline parameters of “in concert” action in this specific case. The lingering question then, for many banks now, is what actions taken by directors or officers are “in concert”, thus creating joint and several liability. For example, if a director votes against or abstains from a vote, as in Loudermilk, but the majority of directors vote to approve the loan, is this an “in concert” action extending liability?Importantly, the Georgia Supreme Court declined to answer whether “in concert” action had taken place in the underlying case, reserving that issue for the Eleventh Circuit. The Eleventh Circuit will have to consider whether the FDIC actually proved that all former BCB directors and officers acted in concert when they approved the loans. This will be interesting to watch, particularly as the jury did not find two of the former BCB officers at fault in approving several of the loans. This is a key outstanding issue, one worth following. The outcome of the Eleventh Circuit’s review may heighten risk for director or officer liability if “in concert” action was actually proven. It is worth mentioning that the Georgia Supreme Court’s opinion specifically discussed an available remedy for any director or officer not at fault, but who is held jointly and severally liable for in concert action. This remedy is known as contribution; contribution is the idea that a party who is not at fault, but is held jointly and severally liable with other at-fault parties, may sue the at-fault parties for reimbursement of any damages imposed on the party not at fault. It is worth noting that while this remedy is available, the costs of suit and recovery would be expensive. Should your bank want to discuss this case or the issues raised in this article, please contact Dan Brannan at (404) 997-6023 (dbrannan@jamesbatesllp.com), Michael White at (478) 749-9921 (mwhite@jamesbatesllp.com), or Corrie Hall at (478) 749-9949 (chall@jamesbatesllp.com).  This week, the House Banks & Banking Committee held a hearing on our CBA driven legislation— SB 157. Sen. John Kennedy (R), Macon, did a great job presenting our bill. While the committee agenda showed that there was a hearing only for our bill, the committee actually decided to take action on the bill. SB 157 passed unanimously! Rep. Dale Washburn (R), Macon, will be carrying the bill in the House. Now, the bill is in the House Rules Committee. House Rules sets the calendar for House Floor votes. Members of the House
We urge you to contact your Representative and ask them to support SB 157! Click here for talking points that you can share with your Representative. If you need help determining who your legislator is, then please visit https://openstates.org/ga/legislators/ and input your address. Contact information for your legislators can be found on this page. Grass roots advocacy is critical to help us get this bill to the finish line! As a reminder, by utilizing this service, it will help keep local government deposits in your communities and will increase the opportunity for lending to customers and businesses. Due to the importance of this legislation, several other industry stakeholders such as NFIB (National Federation of Independent Businesses), GMA (Georgia Municipal Association), ACCG (Association County Commissioners of Georgia), and Georgia Bankers Association have agreed to support CBA’s efforts to codify this legislation.
 Both the Senate Banking & Financial Institutions Committee and the House Banks & Banking Committee held meetings this week.
SB 20 - Counties and Municipal Corporations; establishment of banking improvement zones by Sen. Michael “Doc” Rhett (D), Marietta, was passed by the House Banks & Banking Committee on Monday. HB 490 — Banking & Finance by Rep. Jason Ridley (R), Chatsworth, was passed by the Senate Banking & Financial Institutions Committee on Tuesday.  SB 162—Local Government by Sen. Matt Brass (R), Newnan, was set to be heard in the House Energy, Utilities and Telecommunications Committee on Tuesday. This bill relates to local government, so as to provide for disaster mitigation improvements and broadband services infrastructure in projects of downtown development authorities and development authorities; to provide for definitions; to provide for related matters; to repeal conflicting laws; and for other purposes. The bill provides for PACE (property assessed clean energy) Financing of disaster mitigation improvements and broadband services. The CBA and other parties in the lending community expressed concerns with the bill to the author and members of the House Energy, Utilities, and Telecommunications Committee. During the hearing, the bill was tabled and no action will be taken on this bill this session. The author agreed to work with members of the lending community during the off session in an effort to mitigate concerns that were expressed. The CBA and other parties in the lending community expressed concerns with the bill to the author and members of the House Energy, Utilities, and Telecommunications Committee. During the hearing, the bill was tabled and no action will be taken on this bill this session. The author agreed to work with members of the lending community during the off session in an effort to mitigate concerns that were expressed. SB 162—Local Government by Sen. Matt Brass (R), Newnan, was set to be heard in the House Energy, Utilities and Telecommunications Committee on Tuesday. This bill relates to local government, so as to provide for disaster mitigation improvements and broadband services infrastructure in projects of downtown development authorities and development authorities; to provide for definitions; to provide for related matters; to repeal conflicting laws; and for other purposes. The bill provides for PACE (property assessed clean energy) Financing of disaster mitigation improvements and broadband services. The CBA and other parties in the lending community expressed concerns with the bill to the author and members of the House Energy, Utilities, and Telecommunications Committee. During the hearing, the bill was tabled and no action will be taken on this bill this session. The author agreed to work with members of the lending community during the off session in an effort to mitigate concerns that were expressed. SB 162—Local Government by Sen. Matt Brass (R), Newnan, was set to be heard in the House Energy, Utilities and Telecommunications Committee on Tuesday. This bill relates to local government, so as to provide for disaster mitigation improvements and broadband services infrastructure in projects of downtown development authorities and development authorities; to provide for definitions; to provide for related matters; to repeal conflicting laws; and for other purposes. The bill provides for PACE (property assessed clean energy) Financing of disaster mitigation improvements and broadband services. The CBA and other parties in the lending community expressed concerns with the bill to the author and members of the House Energy, Utilities, and Telecommunications Committee. During the hearing, the bill was tabled and no action will be taken on this bill this session. The author agreed to work with members of the lending community during the off session in an effort to mitigate concerns that were expressed.  The legislature completed days 33 through 35 of the session. Only five days are left in this legislative session!
Update to bills that CBA is tracking: HB 70 — Guardian and Ward by Rep. Chuck Efstration (R), Dacula, was passed as a substitute by the Senate Judiciary Committee on Wednesday. HB 185 — Financial Institutions, by Rep. Bruce Williamson (R), Monroe, was passed by the Senate on Monday with a vote of 52-0. The bill now goes to the Governor for signature. HB 212 – Manufactured Homes by Rep. Clay Pirkle (R), Ashburn, was passed by the Senate with a vote of 53-0 on Monday. The bill now goes to the Governor for signature. HB 239 – Georgia Business Court by Rep. Chuck Efstration (R), Dacula, was presented to the Senate Judiciary Committee. The bill was amended to include the language from SB 110—Statewide Business Court by Sen. Jesse Stone (R), Waynesboro. The bill received a do pass motion by substitute from the Senate Judiciary Committee on Thursday. HB 288 –Superior Courts by Rep. Alan Powell (R), Hartwell, was passed by the Senate Judiciary Committee on Thursday. HB 307 — Abandoned Motor Vehicle Act by Rep. Alan Powell (R), Hartwell, was amended in Senate Judiciary Committee and received a do pass motion by substitute on Wednesday. HB 314 — Georgia Uniform Certificate of Title for Vessels Act by Rep. Ron Stephens (R), Savannah, received a do pass motion by substitute by the Senate Finance Committee on Monday. SB 37 — Statute of Frauds by Sen. William T. Ligon, Jr. (R), Brunswick, received a do pass motion as amended by the House Judiciary Committee on Thursday. Changes were minor and were clarifying in nature. The bill moves to the House Rules Committee. SB 110 — Statewide Business Court by Sen. Jesse Stone (R), Waynesboro, was presented in the House Judiciary Committee. The bill was amended to include the language from HB 239–Georgia Business Court by Rep. Chuck Efstration (R), Dacula. The bill received a do pass motion by substitute from the House Judiciary Committee on Tuesday. SB 202 — Title Insurance by Sen. William T. Ligon, Jr. (R), Brunswick, was passed by the House with a vote of 166-0 on Monday. The bill now goes to the Governor for signature.  CBA’s lobbying efforts will shift from a state focus to a federal focus when we visit Washington, D.C. as part of ICBA’s 2019 Capital Summit. CBA’s John McNair and Lori Godfrey will host the event for several of our bankers and associate members. We are always looking for any issues that may be impacting your institution directly. If you have any anecdotal information that you can share with us on any federal issues that you are having, then please email Lori Godfrey at lori@cbaofga.com.
 The legislature completed days 30 through 32 of the session. Only eight days are left in this legislative session!
Update to bills that CBA is tracking: HB 307—Abandoned Motor Vehicle Act by Rep. Alan Powell (R), Hartwell, was assigned to the Senate Judiciary Committee. The Committee held a hearing only for the bill on Thursday. Changes have been made since passing the house in an effort to mitigate concerns within the bill by various parties. HB 314—Georgia Uniform Certificate of Title for Vessels Act by Rep. Ron Stephens (R), Savannah, was passed by the Senate Finance Committee on Thursday as a substitute that included minor, technical changes. HB 490—Banking & Finance by Rep. Jason Ridley (R), Chatsworth, was assigned to the Senate Banking & Financial Institutions Committee. SB 37—Statute of Frauds by Sen. William T. Ligon, Jr. (R), Brunswick, was passed by the House Judiciary Welch Subcommittee on Monday. Rep. Chuck Efstration (R), Dacula, expressed some concerns with language in the bill and indicated that he would be offering an amendment once the bill moves to the full committee. SB 162—Local Government by Sen. Matt Brass (R), Newnan, was assigned to the House Energy, Utilities & Telecommunications Committee. SB 186—Trusts by Sen. Bill Cowsert (R), Athens, was assigned to the House Judiciary Committee.  The Senate Banking & Financial Institutions Committee held a meeting this week and voted on three bills. HB 185—Financial Institutions, by Rep. Bruce Williamson (R), Monroe, was passed by the Senate Banking & Financial Institutions Committee on Monday. On Thursday, the Senate Rules Committee selected the bill for the Senate Rules Calendar for a floor vote next Monday. HB 193—Banking and Finance, relating to the savings promotion raffles offered by state-charted banks and credit unions was presented by Rep. Emory Dunahoo (R), Gainesville, was passed by the Senate Banking & Financial Institutions Committee on Monday. On Thursday, the Senate Rules Committee moved that the bill is not eligible for selection for the Senate Rules Calendar at this time. HB 212–Manufactured Homes by Rep. Clay Pirkle (R), Ashburn, was passed by the Senate Banking & Financial Institutions Committee on Monday. On Thursday, the Senate Rules Committee selected the bill for the Senate Rules Calendar for a floor vote next Monday. The Senate Banking & Financial Institutions Committee held a meeting this week and voted on three bills. HB 185—Financial Institutions, by Rep. Bruce Williamson (R), Monroe, was passed by the Senate Banking & Financial Institutions Committee on Monday. On Thursday, the Senate Rules Committee selected the bill for the Senate Rules Calendar for a floor vote next Monday. HB 193—Banking and Finance, relating to the savings promotion raffles offered by state-charted banks and credit unions was presented by Rep. Emory Dunahoo (R), Gainesville, was passed by the Senate Banking & Financial Institutions Committee on Monday. On Thursday, the Senate Rules Committee moved that the bill is not eligible for selection for the Senate Rules Calendar at this time. HB 212–Manufactured Homes by Rep. Clay Pirkle (R), Ashburn, was passed by the Senate Banking & Financial Institutions Committee on Monday. On Thursday, the Senate Rules Committee selected the bill for the Senate Rules Calendar for a floor vote next Monday. The Senate Banking & Financial Institutions Committee held a meeting this week and voted on three bills. HB 185—Financial Institutions, by Rep. Bruce Williamson (R), Monroe, was passed by the Senate Banking & Financial Institutions Committee on Monday. On Thursday, the Senate Rules Committee selected the bill for the Senate Rules Calendar for a floor vote next Monday. HB 193—Banking and Finance, relating to the savings promotion raffles offered by state-charted banks and credit unions was presented by Rep. Emory Dunahoo (R), Gainesville, was passed by the Senate Banking & Financial Institutions Committee on Monday. On Thursday, the Senate Rules Committee moved that the bill is not eligible for selection for the Senate Rules Calendar at this time. HB 212–Manufactured Homes by Rep. Clay Pirkle (R), Ashburn, was passed by the Senate Banking & Financial Institutions Committee on Monday. On Thursday, the Senate Rules Committee selected the bill for the Senate Rules Calendar for a floor vote next Monday.  This week, the House Banks & Banking Committee was scheduled to have a hearing on our CBA driven legislation—SB 157. Unfortunately, the Committee was cancelled at the last minute as the Senate was still in session debating the voting machine bill. The next meeting has been re-scheduled for 2:30PM on Monday, March 18th. This will be a hearing only for the bill, no vote will be taken. If the bill passes Committee, Rep. Dale Washburn (R), Macon, has agreed to carry the legislation for Sen. John Kennedy (R), Macon, in the House.
Members of the House Banks & Banking Committee that will be hearing/voting upon the bill are as follows: Morris, Greg, Chairman Ridley, Jason, Vice Chairman Nix, Randy, Secretary Alexander, Kimberly, Member Allen, Erick E., Member Dickey, Robert, Member Douglas, Demetrius, Member Dunahoo, Emory, Member Frazier, Gloria, Member Hawkins, Lee, Member Houston, Penny, Member Knight, David, Member Marin, Pedro "Pete", Member Mitchell, Billy, Member Moore, Beth, Member Morris, Marc, Member Parrish, Butch, Member Pirkle, Clay, Member Rhodes, Trey, Member Washburn, Dale, Member Williamson, Bruce, Member We urge you to contact your Representative and ask them to support SB 157! Click here for talking points that you can share with your Representative. If you need help determining who your legislator is, then please visit https://openstates.org/ga/legislators/ and input your address. Contact information for your legislators can be found on this page. Grass roots advocacy is critical to help us get this bill to the finish line! As a reminder, by utilizing this service, it will help keep local government deposits in your communities and will increase the opportunity for lending to customers and businesses. Due to the importance of this legislation, several other industry stakeholders such as NFIB (National Federation of Independent Businesses), GMA (Georgia Municipal Association), ACCG (Association County Commissioners of Georgia), and Georgia Bankers Association have agreed to support CBA’s efforts to codify this legislation.  Day 28 of the legislative session was crossover day in the session. What does crossover day mean? 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. As a reminder, this is the first session of a 2-year legislative cycle. In rare instances, a bill may be attached to another piece of legislation from the same Code section that was crossed over by the required time frame; however, this brings into play a process by which the bill must be reviewed and approved by both chambers. While this is rare, CBA will continue to monitor bills throughout the remainder of the session to make sure no controversial topics are introduced or added to other bills that would adversely impact community banks.
 The legislature completed days 26 through 29 of the session. Only 11 legislative days to go until sine die on April 2nd. The calendar has been set for the remainder of the session and numerous Committee Work Days have been included within the calendar so Committees have enough time to work on bills that crossed over.
New Bills that CBA is tracking: HB 532—Banking and Finance, relating to money transmission transactions, by Rep. Jeff Jones (R), Brunswick, was introduced in the House. This bill relates to the sale of payment instruments, so as to provide for the imposition of certain fees upon money transmission transactions completed by financial institutions for individuals; to amend Article 3 of Chapter 7 of Title 48 of the O.C.G.A., relating to income tax returns and furnishing of information, so as to provide for a tax credit for residents in the amount of certain assessed money transmission transaction fees paid by such residents; to provide for a reimbursement for certain residents in the amount of certain assessed money transmission transaction fees paid by such residents; to provide for related matters; to repeal conflicting laws; and for other purposes. This is the annual wire transfer fee introduced by Rep. Jones. The language is very similar to the language included in HB 12 and HB 66 that were introduced in the previous legislative session. Since the bill was introduced so late in the session, the bill did not have a hearing in the House Ways & Means Committee and did not crossover. CBA will continue to monitor other bills to make sure that language does not get inserted into another bill that did crossover. HB 552—Local Government; Banking Improvement Zones by Rep. Spencer Frye (D), Athens, was introduced in the House. This bill has the exact language that is in SB 20 by Sen. Michael ‘Doc’ Rhett (D), Marietta. This bill would provide for the establishment of banking improvement zones to encourage opening of financial institutions in areas underserved by financial institutions; provide for application and standards of approval for a banking improvement zone; provide for establishment of an agreement for the deposit of public funds in financial institutions within a banking improvement zone; and for other purposes. Since the bill was introduced so late in the session, the bill did not have a hearing in the House Banks & Banking Committee and did not crossover. Update to bills that CBA is tracking that crossed over: HB 193—Banking and Finance, relating to the savings promotion raffles offered by state-charted banks and credit unions was presented by Rep. Emory Dunahoo (R), Gainesville, was read in the Senate and assigned to the Senate Banking & Financial Institutions Committee. HB 212–Manufactured Homes by Rep. Clay Pirkle (R), Ashburn, was passed by the House with a vote of 170-1 on Monday. The bill was read in the Senate and assigned to the Senate Banking & Financial Institutions Committee. HB 239–Georgia Business Court by Rep. Chuck Efstration (R), Dacula, was passed by the House with a vote of 156-8 on Tuesday. The bill was read in the Senate and assigned to the Senate Judiciary Committee. HB 288–Superior Courts by Rep. Alan Powell (R), Hartwell, was passed by the House with a vote of 170-0 on Thursday. The bill was read in the Senate and assigned to the Senate Judiciary Committee. HB 307—Abandoned Motor Vehicle Act by Rep. Alan Powell (R), Hartwell, was passed by the House with a vote of 167-4 on Thursday. The bill was read in the Senate. HB 314—Georgia Uniform Certificate of Title for Vessels Act by Rep. Ron Stephens (R), Savannah, was passed by the House with a vote of 154-10 on Tuesday. The bill was read in the Senate and assigned to the Senate Finance Committee. HB 490—Banking & Finance by Rep. Jason Ridley (R), Chatsworth, was passed by the House Banks & Banking Committee on Monday. The bill was passed by the House with a vote of 165-1. The bill was read in the Senate. SB 20 -Counties and Municipal Corporations; establishment of banking improvement zones by Sen. Michael “Doc” Rhett (D), Marietta, was read in the House and assigned to the House Banks & Banking Committee. SB 37—Statute of Frauds by Sen. William T. Ligon, Jr. (R), Brunswick, was read in the House and assigned to the House Judiciary Committee. SB 52—Code Revision Commission by Sen. William T. Ligon (R), Brunswick, was passed by the House with a vote of 148-0 on Monday. The bill now goes to the Governor for signature. SB 92--Professional Licensing Board by Sen. Brandon Beach (R), Alpharetta, was passed by the Senate Higher Education Committee on March 1st. The bill was passed by the Senate with a vote of 51-0 on Tuesday. The bill was read in the House and assigned to the House Appropriations Committee. SB 110—Statewide Business Court by Sen. Jesse Stone (R), Waynesboro, was passed by the Senate with a vote of 52-2 on Thursday. The bill was read in the House. SB 120—Georgia Tax Credit Business Case Act by Rep. John Albers (R), Roswell, was read in the House and assigned to the House Ways & Means Committee. SB 186—Trusts by Sen. Bill Cowsert (R), Athens, was passed by the Senate Banking & Financial Institutions Committee on Monday. The bill was passed by the Senate with a vote of 36-18 on Thursday. The bill was read in the House. SB 202—Title Insurance by Sen. William T. Ligon, Jr. (R), Brunswick, was passed by the Senate with a vote of 53-0 on Tuesday. The bill was read in the House and assigned to the House Insurance Committee. Bills that CBA is tracking that did NOT crossover this session:
 SB 162—Local Government by Sen. Matt Brass (R), Newnan, was introduced in the Senate. This bill relates to local government, so as to provide for disaster mitigation improvements and broadband services infrastructure in projects of downtown development authorities and development authorities; to provide for definitions; to provide for related matters; to repeal conflicting laws; and for other purposes. The bill was passed as a substitute by the Senate Regulated Industries and Utilities Committee. The bill provides for PACE (property assessed clean energy) Financing of disaster mitigation improvements and broadband services.
In reviewing the language of the bill, CBA has concerns with the bill as written. PACE loans have issues at the federal level as well. In December 2017, the Federal Housing Administration announced that it would stop insuring mortgages on loans that also carry PACE loans. Fannie Mae’s guidelines indicated that they will not purchase mortgage loans secured by properties with an outstanding PACE loan unless the terms of the PACE loan program do not provide for lien priority over first mortgage liens. On Monday, the CFPB issued an “Advance Notice of Proposed Rulemaking” on PACE financing that could see an ability-to-repay provision added to PACE regulations. Read more on each of these items by clicking below. https://www.housingwire.com/articles/42036-fha-to-stop-insuring-mortgages-with-pace-loans https://www.fanniemae.com/content/guide/selling/b5/3.4/01.html https://www.housingwire.com/articles/48337-cfpb-plans-to-issue-rules-on-pace-loans PACE loans in Georgia have a lien priority superior to the mortgage, which creates issues for banks with foreclosures. By FHA stating that they will no longer insure loans with PACE loans, this takes away an option for consumers to get financing on mortgages. Also, PACE would create challenges for the consumers who are looking to purchase a home (as well as a challenge for those selling) with a PACE loan as the loan stays with the property and not the person that originally took out the loan. CBA, GBA, and GCUA all expressed concerns to the author of this bill. The author indicated that he would be willing to work with us on language that may mitigate our concerns when the bill moves to the House. On the Senate floor, the bill was amended by the author to delete language that would prevent a mortgagee from accelerating the mortgage in the event a PACE loan was added to the property. The deletion of this language did alleviate one of the concerns with the bill as passed by the Senate Committee. Senator William T. Ligon, Jr. (R), Brunswick, did stand and oppose the bill on the Senate Floor and asked for a “No” vote. The bill was passed by the Senate with a vote of 39-14 on Thursday. The bill was read in the House and assigned to the House Regulated Industries Committee. CBA will continue to work with the author of the bill.  SB 157 is a CBA driven bill that was voted upon by the Senate on Monday with a vote of 55-0! Senator John Kennedy (R), Macon, did a great job presenting the bill and answering questions from members of the Senate. The bill crossed over to the House and was assigned to the House Banks & Banking Committee. Since this week was crossover week, no formal action was taken on the bill by the House as the House was working hard to get all of their bills crossed over to the Senate. We anticipate that the Committee will be taking up this bill sometime next week. In the House Banks & Banking Committee, Chairman Greg Morris (R), Vidalia, requires that bills be presented to his Committee for a hearing only the first time. During the hearing only session, this is when any public testimony can be made on the bill. CBA is planning to testify during this hearing just as we did during the Senate Banking & Financial Institutions Committee meeting. Chairman Morris will then put the bill on the agenda for a vote at the following Committee meeting. Members of the House Banks & Banking Committee that will be hearing/voting upon the bill are as follows:
We urge you to contact your Representatives and ask them to support SB 157! Click here for talking points that you can share with your Representative. If you need help determining who your legislator is, then please visit https://openstates.org/ga/legislators/ and input your address. Contact information for your legislators can be found on this page. Grass roots advocacy is critical to help us get this bill to the finish line! As a reminder, by utilizing this service, it will help keep local government deposits in your communities and will increase the opportunity for lending to customers and businesses. Due to the importance of this legislation, several other industry stakeholders such as NFIB (National Federation of Independent Businesses), GMA (Georgia Municipal Association), ACCG (Association County Commissioners of Georgia), and Georgia Bankers Association have agreed to support CBA’s efforts to codify this legislation. Community Focus 2020: The Community Bank Agenda for Expanding Economic Opportunity - Author ICBA3/8/2019  ICBA this week unveiled its new legislative and regulatory policy platform: Community Focus 2020. The multifaceted agenda advocates common-sense reforms that promote greater access to financial services and economic opportunity throughout local communities nationwide.
Community banks are well-positioned to support greater economic opportunity for all Americans. Serving the nation’s rural, suburban and urban communities with more than 52,000 locations, community banks are critical to ensuring that every local community can join in the nation’s broad economic prosperity. ICBA and community bankers developed Community Focus 2020 to advance a more efficient system of regulation, unbiased laws governing the financial sector, a safer and more secure business environment, and more effective agriculture policies to extend the nation’s economic growth to every corner of the country. Community Focus 2020 includes policy prescriptions on the following issue areas:
Click here to download the full plan.  SB 157 is a CBA driven bill that was presented to the Senate Banking & Financial Institutions Committee on Tuesday. CBA’s John McNair and Lori Godfrey along with Vinings Bank’s Clark Hungerford provided testimony to the Committee on this bill. The bill was passed unanimously by the Committee. The bill is expected to be placed on Monday’s Senate Floor Calendar for a vote. We urge you to contact your Senator and ask them to support SB 157! If you need help determining who your legislator is, then please visit https://openstates.org/ga/legislators/ and input your address. Contact information for your legislators can be found on this page. Grass roots advocacy is critical to help us get this bill to the finish line! If the vote in the Senate is successful, then we have several more steps to come in the House once the bill crosses over and we will need your help at that time as well. Byutilizing this service, it will help keep local government deposits in your communities and will increase the opportunity for lending to customers and businesses. Due to the importance of this legislation, several other industry stakeholders such as NFIB (National Federation of Independent Businesses), GMA (Georgia Municipal Association), ACCG (Association County Commissioners of Georgia), and Georgia Bankers Association have agreed to support CBA’s efforts to codify this legislation.  Both the Senate Banking & Financial Institutions Committee and the House Banks & Banking Committee held meetings this week.
SB 37—Statute of Frauds by Sen. William T. Ligon, Jr. (R), Brunswick, was passed by the Senate Banking & Financial Institutions on Tuesday. The bill was amended in Committee in an effort to address concerns raised at previous hearings on the bill. The bill was placed on Friday’s Senate Floor Calendar for a vote. HB 193—Banking and Finance, relating to the savings promotion raffles offered by state-charted banks and credit unions was presented by Rep. Emory Dunahoo (R), Gainesville, was passed by the House Banks & Banking Committee on Wednesday. The bill was placed on Friday’s House Floor Calendar for a vote. HB 212–Manufactured Homes by Rep. Clay Pirkle (R), Ashburn, was presented to the House Banks & Banking Committee with revisions that were made by the author to satisfy the concerns of the Department of Banking & Finance. The bill was passed by the Committee on Wednesday. HB 490—Banking & Finance by Rep. Jason Ridley (R), Chatsworth, was introduced in the House. The bill relates to deposits of deceased depositors, so as to make changes relating to the payment of large deposits of deceased intestate depositors and the deposit of sums held for deceased intestate residents; to provide for and revise certain definitions; to provide for an affidavit for certain claimants to deposits; to provide a statutory form for an affidavit of the providers of services of funeral expenses and expenses of last illnesses of deceased depositors; to change certain provisions relating to payment of checks or instruments payable to decease intestate persons; to provide for related matters; to repeal conflicting laws; and for other purposes. This bill was introduced in the last legislative session and did not progress. The author of the bill worked with the industry to reach an agreement on the type of information that is needed on the statutory form prescribed within the bill. On Thursday, the House Banks & Banking Committee held a hearing on this bill. HB 497—Trusts by Rep. Bonnie Rich (R), Suwanee, was introduced in the House. The bill relates to trusts, so as to establish qualified self-settled spendthrift trusts; to amend Part 4 of Article 9 of Title 11 of the O.C.G.A., relating to rights of third parties to secured transactions, so as to exclude qualified self-settled spendthrift trusts from restrictions on assignment; to provide for related matters; to repeal conflicting laws; and for other purposes. This bill has the same language as HB 441 that was passed by both the House and Senate last session, but was vetoed by Governor Nathan Deal. On Thursday, the House Banks & Banking Committee held a hearing on this bill. It appears that this bill mirrors SB 186 by Sen. Bill Cowsert (R), Athens.  New Bills that CBA is tracking:
HB 488—Commerce and Trade by Rep. Martin Momtahan (R), Dallas, was introduced in the House. The bill relates to selling and other trade practices related to the sale of stored value cards or gift cards, most notably, this bill seeks to require certain persons involved in the re-sale of these cards to obtain significant information from the seller of the cards. As written, CBA has concerns with the data requirements that a merchant must maintain for each transaction and whether or not this bill applies to our banks. CBA is working with the parties interested in this bill to work on clarifying language that would ensure that our banks are not adversely impacted by these requirements. HB 523—Local Government by Kasey Carpenter (R), Dalton, was introduced in the House. The bill relates to local government, so as to prohibit local governments from regulating the use of certain real estate as short-term rental property; to provide for definitions; to provide for related matters; to repeal conflicting laws; and for other purposes. CBA will monitor this bill. SB 178—Specialized Land Transactions by Sen. P.K. Martin IV (R), Lawrenceville, was introduced in the Senate. This bill relates to regulation of specialized land transactions, so as to provide for statements of account under the "Georgia Condominium Act" and the "Georgia Property Owners' Association Act" for fees owed to condominium associations and property owners' associations, respectively. This bill is very similar to HB 410 that was passed by both the House and Senate last session, but was vetoed by Governor Nathan Deal. The primary difference in this bill compared to last year’s bill is the “Statutory Statement of Account” that would be required for properties located within a condominium or property owners’ association. The bill was assigned to the Senate Special Judiciary Committee. The bill was passed by substitute by the Special Judiciary Committee on Tuesday. SB 186—Trusts by Sen. Bill Cowsert (R), Athens, was introduced in the Senate. This bill seeks to provide for the creation of “self-settled trusts” in the State of Georgia and has the same language as HB 441 that was passed by both the House and Senate last session, but was vetoed by Governor Nathan Deal. The bill was assigned to the Senate Banking & Financial Institutions Committee. It appears that this bill mirrors HB 497 by Rep. Bonnie Rich (R), Suwanee. SB 202—Title Insurance by Sen. William T. Ligon, Jr. (R), Brunswick, was introduced in the Senate. The bill relates to title insurance, so as to allow title insurance to be procured on a lender's security interest in personal property taken by the lender as collateral for a commercial loan. The bill was assigned to the Senate Insurance & Labor Committee. Update to bills that CBA is tracking: HB 70—Guardian and Ward by Rep. Chuck Efstration (R), Dacula, was passed as a substitute by the House on February 25th with a vote of 170-0. The bill was referred to the Senate Judiciary Committee. HB 185—Financial Institutions, by Rep. Bruce Williamson (R), Monroe, was passed by the House on Tuesday with a vote of 171-0. The bill was referred to the Senate Banking & Financial Institutions Committee. HB 239–Georgia Business Court by Rep. Chuck Efstration (R), Dacula, was passed as a substitute by the House Judiciary Committee on Wednesday. HB 288–Superior Courts by Rep. Alan Powell (R), Hartwell, was passed by the House Judiciary Kelley Subcommittee on Thursday. HB 307—Abandoned Motor Vehicle Act by Rep. Alan Powell (R), Hartwell, was passed as a substitute by the House Motor Vehicles Committee on Tuesday. HB 314—Georgia Uniform Certificate of Title for Vessels Act by Rep. Ron Stephens (R), Savannah, was passed as a substitute by the House Ways & Means Committee on Wednesday. The Committee struck the language on the taxes that was causing CBA concerns with the bill. SB 20 -Counties and Municipal Corporations; establishment of banking improvement zones by Sen. Michael “Doc” Rhett (D), Marietta, was passed by the Senate on Wednesday with a vote of 55-0. SB 52—Code Revision Commission by Sen. William T. Ligon (R), Brunswick, was passed by the House Code Revision Committee on February 22nd. SB 110—Statewide Business Court by Sen. Jesse Stone (R), Waynesboro, was passed as a substitute by the Senate Judiciary Committee on Wednesday. The Committee made substantial changes to the bill in an effort to mitigate concerns with the bill. SB 120—Georgia Tax Credit Business Case Act by Rep. John Albers (R), Roswell, was passed by the Senate Finance Committee on February 22nd. The bill was placed on Friday’s Senate Floor Calendar for a vote.  We finally have a bill number for our priority municipal deposit legislation! Our bill number is SB 157, which is sponsored by Sen. John Kennedy (R), Macon. Now, it is time to get to work and get the bill moving through the process before cross-over day. We anticipate that the Senate Banking & Financial Institutions Committee will hear the bill on Tuesday, February 26th. Members of the Senate Banking & Financial Committee that will be voting on the bill are as follows:
Click here for talking points on this bill that can be shared with your Senators. We encourage you to keep making your voices heard. Our first big hurdle will be getting the bill passed out of the Senate Banking & Financial Institutions Committee. Then, we can focus on the next steps. Thank you for your support! Please contact Lori Godfrey or John McNair with any questions or concerns that you may have.  Both the Senate Banking & Financial Institutions Committee and the House Banks & Banking Committee held meetings this week.
SB 37—Statute of Frauds by Sen. William T. Ligon, Jr. (R), Brunswick, was heard by the Senate Banking Committee on Tuesday. The author of the bill made changes to the proposed bill in an effort to mitigate concerns raised at the previous committee meeting. However, several concerns remained after the discussion of the changes. The Committee ran out of time to hear testimony of all that had signed up on the bill; however, the author of the bill promised to continue working on perfecting the language to satisfy the remaining concerns. HB 185—Financial Institutions, by Rep. Bruce Williamson (R), Monroe, was voted upon by the House Banks & Banking Committee. The bill received a do pass motion from the Committee on Wednesday. CBA will continue to monitor the progress of the bill. HB 193—Banking and Finance, by Rep. Emory Dunahoo (R), Gainesville, relating to the savings promotion raffles offered by state-charted banks and credit unions was voted upon by the House Banks & Banking Committee. The bill received a do pass motion from the Committee on Wednesday. A request has been made to amend the bill to clarify that consumers should not have to pay a fee in order to participate in the raffle. CBA will continue to monitor the progress of the bill. HB 212–Manufactured Homes relating to exemptions for retailers, retail brokers of manufactured homes or mobile homes from a mortgage lender and broker license was heard by the House Banks & Banking Committee. As drafted, CBA has concerns with this bill as it may have a significant, negative impact to the Department of Banking & Finance. However, the author of the bill and the Department of Banking & Finance have been in discussions and an amendment to the bill will be made. The author promised to have an amended bill at the next committee meeting. CBA will continue to monitor this bill.  This week, we completed days 17 through 20 of the legislative session. We have made it to the half-way point of the session! Crossover day is Day 28 of the session so there is still time for bills to progress from one chamber to the other. Sine die will be day 40 of the session.
Other bills that CBA is tracking: HB 42—Professional Licensing Boards by Rep. Scot Turner (R), Holly Springs, was passed by the Higher Education Committee on February 13, 2019. The bill went to the House Rules Committee where the bill was recommitted to the Higher Education Committee on Wednesday. HB 70—Guardian and Ward by Rep. Chuck Efstration (R), Dacula, was passed by the Juvenile Justice Committee by substitute on Wednesday. HB 81—Contracts by Rep. Todd Jones (R), South Forsyth, related to eliminating restrictive covenants in employment agreements with Information Technology employees, was voted upon by the House Judiciary Welch Subcommittee. The author of the bill made significant changes to narrow the scope to only apply to non-compete agreements and to narrow the type of Information Technology person the bill applies to. The bill was passed by the Subcommittee. The bill is on the full House Judiciary Committee calendar for Friday afternoon. HB 239–Georgia Business Court by Rep. Chuck Efstration (R), Dacula, was heard in the House Judiciary Committee meeting on Thursday. There were numerous questions on the bill and the author of the bill indicated that amendments would be made to the bill. HB 307—Abandoned Motor Vehicle Act by Rep. Alan Powell (R), Hartwell, was introduced in the House. The bill relates to abandoned motor vehicles, so as to repeal Article 1, relating to abandoned and derelict vehicles, and to enact a new Article 1; to amend Article 5 of Chapter 12 of Title 44 of the O.C.G.A., relating to disposition of unclaimed property, so as to provide for proceeds from the sale of an abandoned motor vehicle after satisfaction of a lien to be deposited with the commissioner of revenue; to provide for publication of "Georgia Unclaimed Property List"; to provide for related matters; to repeal conflicting laws; and for other purposes. CBA will continue to monitor this bill. HB 314—Georgia Uniform Certificate of Title for Vessels Act by Rep. Ron Stephens (R), Savannah, was introduced in the House. The bill relates to registration, operation, and sale of watercraft, so as to provide for the titling of certain vessels; to provide for procedures with regard to titling such vessels; to provide for legislative intent and findings; to provide a short title; to amend Part 1 of Article 1 of Chapter 8 of Title 48 of the Official Code of Georgia Annotated, relating to general provisions regarding sales and use taxes, so as to provide for a cap on the sales and use tax on the purchase or lease of a vessel; to provide for definitions; to provide for related matters; to provide an effective date; to repeal conflicting laws; and for other purposes. This bill is similar to boat titling bills that have been introduced in years past; however, the taxes established within the bill caused many questions and concerns when the bill was discussed in Committee. CBA will continue to monitor this bill. HB 402—Handicapped Persons; items to be reported by financial institutions by Rep. Houston Gaines (R), Athens, was introduced in the House. The bill relates to the protection of disabled adults and elder persons, so as to include abuse and neglect in the items to be reported by a financial institution; to provide for related matters; to provide for an effective date; to repeal conflicting laws; and for other purposes. As written, the definition of abuse and neglect is very broad. CBA is opposed to the bill as written as financial institutions would be mandated reporters for not only financial exploitation, but for abuse and neglect as well. We do not believe our banks have the training necessary to make a determination on what constitutes abuse and neglect. CBA is working with the Department of Human Services to see if we can work on revised language that can be agreeable to all parties. SB 38—Courts; electronic filing requirements of superior and state courts by Sen. William T. Ligon, Jr. (R), Brunswick, was passed by the Senate with a vote of 53-0 on February 13, 2019. The bill was introduced in the House on February 14, 2019. SB 52—Code Revision Commission by Sen. William T. Ligon (R), Brunswick, was passed by the Senate with a vote of 52-0 on February 14, 2019. The bill was introduced in the House on February 15, 2019. SB 110—Statewide Business Court by Sen. Jesse Stone (R), Waynesboro, was heard in the Senate Judiciary Committee meeting on Thursday. There were numerous questions by Committee members on the bill and the author of the bill welcomed feedback from Committee members and others that may have concerns in writing to his office. SB 120—Georgia Tax Credit Business Case Act by Rep. John Albers (R), Roswell, was introduced in the Senate. The bill relates to fiscal bills generally, so as to require an economic analysis to be conducted by the state auditor of certain income tax credits and exemptions from sales and use taxes according to a schedule; to provide for a short title; to provide for related matters; to repeal conflicting laws; and for other purposes. One of the income tax credits outlined within the bill is Code Section 48-7-29.7, which is a tax credit for depository financial institutions. The bill would require that on or before December 31, 2019, an economic analysis of this tax credit should be issued to the House Ways & Means Committee and the Senate Finance Committee. CBA will monitor this analysis.  By James Cooper
CSBS Senior Vice President of Policy and Supervision The community bank leverage ratio (CBLR) proposed by federal regulators won’t provide the regulatory relief that Congress intended. Instead, as proposed, the simplified capital framework would result in regulatory burden that exceeds any relief provided. The problem stems from the creation of a proposed new prompt corrective action (PCA) framework for banks that use the CBLR but there is an easy fix, as we said in a letter this week to the OCC, Federal Reserve and FDIC. Congress directed the federal agencies to develop the CBLR in Section 201 of the Economic Growth Regulatory Relief and Consumer Protection Act last spring. The goal was to provide qualifying community banks relief from the complexities and burdens of the current risk-based capital rules while ensuring that they maintain a high quality and quantity of capital consistent with requirements of the current rules. The interagency CBLR proposal, released February 8, allows certain community banks with less than $10 billion in total assets to elect to use the CBLR if they have a CBLR greater than 9 percent. Banks can choose to opt out of the CBLR at any time and return to complying with the current capital requirements. However, if a bank does not opt out and its CBLR falls to 9 percent or below, then the bank would be considered less than well capitalized under the new PCA framework, which would trigger many operational restrictions. We believe the newly proposed prompt corrective action is unnecessary and unwarranted. Instead, the CBLR framework should require a community bank that falls below the CBLR to begin reporting capital ratios under the current risk-based capital rules. To make that transition smoother from an operational standpoint, we believe the CBLR should use the current Tier 1 leverage ratio rather than creating a new capital measure, which the proposal refers to as CBLR tangible equity. This would reduce burdens in transitioning into and out of the CBLR framework, reduce the changes that would need to be made to current reporting processes and preserve the ability for supervisors and other stakeholders to compare capital adequacy across institutions in different capital frameworks. To be clear - state regulators and CSBS are encouraged by the OCC, Fed and FDIC’s efforts. We just want to make sure that the CBLR provides the community banks we regulate regulatory relief that exceeds any new regulatory burdens created in implementing the CBLR. |
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