Other Issues We Expect This Session
GBA often gets involved to provide context to legislators on legislation affecting our members. We make every effort to help perfect legislation so that it accomplishes the objectives of the legislative author without causing undue problems for banks in serving the needs of their communities. Sometimes that’s just not possible and GBA has to fight against legislation that would be detrimental. Following is a list of bills we expect to be engaged on in 2016:
Self-administered Trust (a.k.a. Domestic Asset Protection Trust or Self-settled Spendthrift Trust).
We expect a revised version of a bill to move forward in 2016 that would provide for the establishment of self-settled trusts in which individuals can set aside assets for their own use without fear of adverse creditor claims. HB 456
– Rep. Tom Weldon
(R-Ringgold). GBA monitoring.
Legislation has been introduced to establish a boat and boat motor titling program using the same Electronic Lien Titling process currently used for motor vehicles. HB 356
– Rep. Ron Stephens
(R-Savannah). The bill was subject of a hearing in subcommittee this week. GBA supports the concept.
Guarantor obligations. We may see legislation prohibiting contract language allowing a guarantor to waive confirmation rights in a foreclosure. GBA likely opposes.
Breach notification. Legislation is expected to be introduced by Sen. John Albers (R-Roswell) requiring businesses and governmental agencies to notify the public within 72 hours of discovering a data breach. GBA prefers a national notification standard and will likely oppose this legislation.ip & PIN. Legislation is expected to be introduced requiring credit cards issued with EMV chips to also be issued with PINs. GBA opposes.
Savings accounts for first-time homebuyers.
Legislation has been introduced authorizing the establishment of a special interest-bearing savings account by a first-time buyer. The contributions and interest earned would be tax exempt. HB 530
– Rep. Bruce Williamson
(R-Monroe). GBA supports.
Digital account access.
Legislation has been introduced to allow a personal representative access to a deceased person’s digital accounts. HB 274
– Rep. Jeff Duncan
(R-Cumming). GBA supports concept.
Foreclosures. A number of foreclosure-related bills are pending and more are expected challenging portions of Georgia’s non-judicial foreclosure. A complete list may be found on the State Issues page of our website. GBA opposes.
Homeowners association superlien.
An effort last year was defeated at the committee level to pass a bill that would require six months of unpaid homeowner association assessments to be paid from foreclosure sale proceeds. The bill could be revived. SB 117
– Sen. Jesse Stone
(R-Waynesboro). GBA opposed.
D&O liability. In response to the Loudermilk and Skow court decisions about Georgia’s business judgment rule related to director and officer liability, legislation may be introduced clarifying the process issue left subject to ordinary negligence. GBA supports concept.
E-discovery. Previous efforts have failed that would have crafted new provisions within the Georgia Civil Practice Act related to the discovery, preservation and production of electronically stored records in response to subpoenas. While not a bank-specific issue, because financial institutions are often subpoenaed for records, both physical and electronic, GBA will monitor the session and provide input to the various parties to ensure an efficient, cost-effective process is preserved. GBA monitoring.
Good Funds. The State Bar of Georgia is considering legislation requiring home loan closing proceeds to be established in IOLTA accounts owned by members in good standing of the State Bar and established in financial institutions doing business in Georgia. GBA will monitor.
Financial Power of Attorney. Legislation may be introduced that will clarify the suggested form in the current code that includes two witnesses signatures does not mean that one of the signatures must be notarized. GBA will monitor.
Lien Priority. Legislation may be introduced intended to give certain contractors or subcontractors superlien priority over a lender’s lien following a foreclosure. GBA will oppose.