Advocacy Update 2024 - Legislative days 15-18
Tax Credit Legislation Unveiled
After a prolonged study of the state’s various tax credits, legislative leaders unveiled HB 1181 on February 7. The overall goal of the proposal is to increase transparency, enhance the state’s return on investment, and limit fiscal exposure. The 30+ page bill makes changes to more than 70 existing tax incentives, ranging from the high-profile film tax credit to lesser-known programs to support law enforcement foundations, and others. In general, the carry-forward period for a credit is reduced and all credits valued at less than $1 million are sunset after 2029.
While most bills don’t receive a press release to celebrate their introduction, HB 1181 will still move through the same legislative process as all other measures. It may undergo additional revisions as it progresses through the House and Senate. The Senate is also expected to introduce additional bills specifically to promote transparency and accountability related to tax incentives.
Georgia Firearms Industry Nondiscrimination (HB 1018)
Rep. Jason Ridley, R—Chatsworth Bill passed by the Banks & Banking Committee on Feb 8th
The bill relates to the merchant category code or any other indicator that a financial institution assigns to a merchant or to a payment card transaction that identifies whether the merchant is a firearms retailer or whether the payment card transaction involves the purchase of a firearm or ammunition. The National Rifle Association (NRA) passed similar legislation in Mississippi and the intent of HB 1018 is to mirror that. While a large portion is identical to MS legislation, these differences will cause issues for Georgia’s financial institutions if not corrected. Rep. Ridley agreed to all but one change requested by the financial services trade group. The one change not made relates to the definition of “firearms code” and the codes created by the International Organization for Standardization (ISO). CBA will continue to work with the author to advocate for a compromise on this remaining item. Reportedly eighteen other states are considering similar legislation this year.
Equality in Financial Services Act (HB 1205)
Rep. Todd Jones, R—South Forsyth
Bill assigned to the House Banks and Banking Committee on Feb 9th
The bill prohibits discrimination in the provision of financial services. It requires financial institutions to produce requested statements of specific reasons for the denial, restriction, or termination of services. The bill defines “financial institution” as a bank or credit union that has more than $100 billion in assets or a payment processor, credit card company, credit card network, payment network, payment service provider, or payment gateway that has processed more than $100 billion in transactions in the most recent calendar year. While this does not appear to apply to community banks, it raised significant concerns with the financial services trade group after initial review.
Department’s Housekeeping Bill (HB 876)
Rep. Bruce Williamson, R—Monroe
The bill is the annual housekeeping for the Department of Banking & Finance. The bill was passed by the House on Feb 6th with a vote of 164-0. The bill moved to the Senate and was assigned to the Senate Banking & Financial Institutions Committee.
C-PACE HB 206
Rep. Steven Sainz, R—St. Mary’s
Bill amended and passed by State and Local Governmental Operations Committee on Feb 7th
Commercial Property Assessed Conservation, Energy, and Resiliency (C-PACE) is a public-private partnership that is intended to enable commercial building owners to invest in their property. Under these programs, a private lender finances energy-saving building upgrades and is repaid via a special assessment added to the property’s tax bill. A new version mitigates the concerns raised by the financial trade industry.
Mitigating Factors:
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Maximum LTV 80%
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C-PACE loan is capped at a maximum of 25%
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Tightening of how often these loans can be used by defining resiliency
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Timing of when a bank is involved from a consent perspective as well as tightening of the waiver language
In addition, the author of the bill made changes to moved C-PACE powers to development authorities (rather than creating new C-PACE authorities) and clarifies that local government entities administering the programs can collect reasonable administrative fees. The bill is scheduled for a vote in the Senate on Feb-12. It will then go back to the House for additional consideration.
Georgia Secure Automated Vehicle Enforcement (SAVE) Act (HB 447)
Rep. Ken Vance, R—Milledgeville
Bill amended and passed by the Motor Vehicles Committee on Feb 6th
The bill authorizes the use of automated recognition technology to issues fines to the owner of a vehicle operated without the proper insurance or with an expired, revoked, canceled, or suspended registration. The amendment clarified that the bill does not impact lease arrangements.
Mortgage Trigger Leads (HB 1040)
Rep. Scott Hilton, R—Peachtree Corners
Bill heard in the House Banks & Banking Committee on Feb 8th
The bill prohibits unfair or deceptive practices in consumer transactions related to mortgage trigger leads. Essentially, it bars credit reporting agencies from selling consumers’ contact information when they apply for a residential mortgage. In a Feb-8 hearing, committee members raised numerous questions. ICBA has advocated for the ‘trigger leads’ bill that was introduced in the U.S. House of Representatives on Feb 8th.
Blockchain Basics Act (HB 1043)
Rep. Scott Hilton, R—Peachtree Corners
Bill heard in the House Banks & Banking Committee on Feb 8th
The bill provides protections relating to the generation and use of virtual currency. It excludes virtual currency mining activities from money transmission licensure requirements. Those who testified voiced concerns with tax exemptions, local control issues, and securitization concerns outlined by the Secretary of State’s Office.
Ayers, Margaret Lee (HR 839)
Rep. Alan Powell, R—Hartwell
A Resolution was read and adopted by the House on Jan 23rd honoring the life and memory of Margaret Lee Ayers. Margaret Ayers passed away on October 10, 2023, at the age of 96. Margaret Ayers, affectionately known as “Mrs. Lavonia”, served her employer, the Northeast Georgia Bank, with distinction for more than 79 years.
Motor Vehicle Title Pawn Transactions (SB 452)
Sen. Greg Dolezal, R—Cumming
Bill assigned to the Finance Committee on Feb 6th
The bill provides for regulations of motor vehicle title pawn transactions and requires the Department of Banking and Finance to license and regulate title pawnbrokers. SB 452 comes at the request of the title pawn industry; while it requires pawnbrokers to return excess proceeds to a borrower, it does not subject those pawn products to the state’s usury law. This bill has some similarities to HB 342, although the title pawn industry does not support that version.
Veteran Benefits (SB 451)
Sen. Nabilah Islam Parkes, D—Duluth
Bill assigned to the Banking and Financial Institutions Committee on Feb 6th
The bill creates a voluntary loan program at certain financial institutions to assist veterans.
Reduce the Income Tax Rate (HB 1015)
Rep. Lauren McDonald, R—Cumming
Bill passed by House vote on Feb 8th with a vote of 165-0
HB 1015 reduces the rate of state income tax from 5.49% to 5.39%. This is one of the priorities of the Governor.
Require Retail Stores to Accept Cash (HB 940)
Rep. Todd Jones, R—South Forsyth
Bill approved by the Agriculture & Consumer Affairs Committee on Feb 9th
The bill requires retail stores to accept cash for purchases. The author noted that cash states it is a “legal tender for all debts public and private”. The author of the bill stated that the FDIC says 7.5% of the population is unbanked, which he estimates is up to one million Georgians. If retails stores do not accept cash, then the unbanked are being left out of the economy. A substitution was made on the bill to carve out certain retail stores and restaurants.
Agriculture; Possessory Interest in Certain Land (HB 1093)
Rep. David Clark, R—Buford
Bill heard in the Agriculture & Consumer Affairs Committee on Feb 9th
The bill relates to general provisions relative to agriculture and prohibits the acquisition of possessory interest in certain land by certain foreign persons and entities. See also SB 420. Concerns were raised with potential violations of federal Fair Housing requirements. There were several items that the author agreed to work on prior to the next committee presentation.
Increase Statewide Ad Valorem Exemption for Tangible Personal Property (HB 808)
Rep. Mike Cheokas, R--Americus
Bill heard in Ad Valorem Ways & Means Subcommittee on Feb 6th
The bill increases a statewide ad valorem tax exemption for tangible personal property. The exemption would increase from $7,500 to $50,000 in a tiered manner over several years.
AI Usage by State Agencies (HB 988)
Rep. Brad Thomas, R—Holly Springs
Bill amended and approved by the Technology and Infrastructure Innovation Committee on Feb 8th
HB 988 requires the Georgia Technology Authority to conduct an annual inventory of all systems that employ artificial intelligence and are in use by a state agency. This would apply to the Department of Banking and Finance. The bill defines AI as a “machine-based system that can, for a given set of human defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments…”
COVID-19 Pandemic Business Safety (SB 430)
Sen. Greg Dolezal, R—Cumming
Bill approved by the Economic Development and Tourism Committee on Feb 8th
The bill revises provisions for rebuttable presumptions of risk by claimants in certain COVID-19 liability claims by repealing certain warning requirements. The liability protections remain in place, but the legislation removes the need for the warning signs that became ubiquitous during the pandemic.
Small Business Protection Act (SB 429)
Sen. Greg Dolezal, R—Cumming
Bill assigned to the Regulated Industries and Utilities on Jan 31st
This bill provides for the preparation and submission of small business impact analyses for bills introduced during sessions of the General Assembly.
Georgia Restaurant Franchise Relations Act (SB 447)
Sen. Randy Robertson, R—Cataula
Bill assigned to the Regulated Industries Committee on Feb 6th
The bill relates to selling and other trade practices and enacts the “Georgia Restaurant Franchise Relations Act”. The bill would amend Title 10, which is the same code section that the Interchange Fee discussion would fall under. A portion of this bill defines “franchise fee” and specifically outlines the types of fees or charges that a franchiser is required to pay or agrees to pay under a franchise agreement. CBA will watch this bill to ensure that it does not morph into any changes on the Interchange Fee debate.
Personal Privacy Protection Act (HB 1113)
Rep. Matt Reeves, R—Duluth
Bill assigned to the Governmental Affairs Committee on Feb 6th
The bill prohibits the collection and release of certain personal information. It excludes certain information from state open record laws and creates the crime of improper collection or disclosure of personal information. See also SB 414.
Grant Post-Appeal Value Freeze only to Homesteaded Property (HB 1120)
Rep. Darlene Taylor, R—Thomasville
Bill assigned to the Ways & Means Committee on Feb 6th
The bill excludes non-homesteaded residential property from the post-appeal valuation freeze. This is one of several property tax reform bills, including SB 349, SB 364, HB 1031, HB 1177, and HB 1185.
Digital Production Income Tax Credit (HB 1180)
Rep. Kasey Carpenter, R—Dalton
Bill assigned to the Ways & Means Committee on Feb 8th
The bill increases the base investment required for a qualified production company to qualify for a tax credit. It provides for a maximum amount of credits that may be transferred each year and provides for proration for transferability of credit under certain circumstances.
Adult Abuse, Neglect, and Exploitation Multidisciplinary Team (HB 1123)
Rep. Carter Barrett, R—Cumming
Bill assigned to the Judiciary Non-Civil Committee on Feb 6th
The bill establishes an Adult Abuse, Neglect, and Exploitation Multidisciplinary Team in each judicial circuit. An Elder Justice Coalition for the State of Georgia shall also be created. CBA is working with the author of the bill to have the Association included as part of this coalition.
Prohibit Misuse of Consumer Reports (HB 1132)
Rep. Mesha Mainor, R—Atlanta
Bill assigned to the Judiciary Committee on Feb 6th
The bill relates to buildings and housing, commerce and trade, insurance, and labor and industrial relations and prohibit the misuse of consumer reports for housing, employment, and insurance renewal.
Forms Executed via Electronic Signature (HB 1206)
Rep. Eddie Lumsden, R—Rome
Bill assigned to the Agriculture & Consumer Affairs Committee on Feb 9th
The bill provides that failure of a business or entity to provide or offer to provide a written copy of any form which a consumer or client executes via electronic signature is declared to be unlawful as an unfair or deceptive practices. It also provides that any person engaged in any business which involves the collection of consumer or client signatures via an electronic signature pad or similar mechanism shall have a duty to maintain such signature in a manner that is secure against unauthorized disclosure.
Georgia Consumer Privacy Protection Act (SB 473)
Sen. John Albers, R—Roswell
Bill assigned to the Science & Technology Committee on Feb 9th
SB 473 protects the privacy of consumer personal data, defined as information that is linked or reasonably linkable to an identified or identifiable individual. It allows a consumer to invoke these rights, including correcting inaccuracies, delete personal information, obtain a copy of their personal information, opt out of the processing of their personal information, etc. The controller of personal data is obligated to limit the collection of such information to what is adequate, relevant, and reasonably necessary.
Unsolicited Inquiries (SB 474)
Sen. Russ Goodman, R—Cogdell
The bill provides for notices of solicitation including monetary offers and renders certain contracts accompanying unsolicited offers from unlicensed individuals void. There is a specific exemption provided for state chartered financial institutions. CBA is working with the author of the bill to change the definition of financial institutions to include both state and federally chartered institutions.
Peach Save Plan (SB 477)
Sen. Chuck Hufstetler, R—Rome
The bill creates the Peach Save plan and provides for membership and eligibility requirements. The bill creates an option for small businesses that do not offer 401-K plans to participate in this program.
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