GBA’s Priority Bills Pass on Strong Floor Votes
Both of GBA’s priority bills were passed in their bodies of origin this week thereby clearing the bills for action by the other body.
Multibank Pledging Pool.
The Senate passed the GBA-requested multibank public deposit collateralization pool bill, SB 283
. The bill establishes a third collateralization option for banks doing business with public depositors. This option will be a contingent liability pool comprised of all the banks with over $50 billion in assets doing business in Georgia and other banks qualified as state depositories and approved by the State Depository Board. In return for the cross-guarantee, banks may be eligible for a lowered collateralization percentage from the current 110 percent of the public deposit. Sen. John Kennedy
(R-Macon) ably handled the bill on the Senate floor. He successfully beat back an amendment from Sen. Mike Crane
(R-Newnan) that would have essentially rendered the bill useless. The vote on final passage was 51-3. The bill is pending in the House Banks and Banking Committee chaired by Rep. Greg Morris
(R-Vidalia) where a hearing is slated for Tuesday, Feb. 16. Sen. Kennedy will present the bill and if they vote to move the bill forward as we expect, Rep. Bruce Williamson
(R-Monroe) will be handling the bill in the House.
Banking Department Housekeeping Bill.
The House passed the Department’s annual housekeeping bill, HB 811
by Rep. Bruce Williamson
(R-Monroe). Much of the bill was the work product of the public-private Code Review Task Force chaired by Brad Miller
, United Community Bank, Blairsville. Among the issues covered by the bill: 1) recognizes the preemption of the DBF’s role in approving branches of out-of-state institutions, 2) removes prohibitions for state-chartered banks to charge a fee to cash “on us” checks; 3) removes the reserve requirements referenced in Federal Reserve Regulation D so that the provisions will only be applicable to institutions whose deposits are not federally insured; 4) removes the authority of the DBF to present a case directly to a grand jury; 5) reduces the violation of an institution’s charter or bylaws to a misdemeanor from a felony; 6) authorizes banks to participate in cross-guaranty state-level collateral pools; 7) clarifies that interactive ATMs are not branches; and 8) establishes a regulatory structure for virtual currencies. Other sections of the bill apply only to credit unions or non-bank entities registered with or supervised by the DBF. The bill now moves to the Senate where we expect it will be assigned to the Senate Banking and Financial Institutions Committee chaired by Sen. Burt Jones