Advocacy Update 2025 - Legislative Days 29-31

Business Community Rallies for Legal Reform

The House Lawsuit Reform Subcommittee convened for its fourth hearing on SB 68 on March 11.  SB 68 is a critical component of Governor Kemp’s legal reform legislation, aimed at creating a more balanced and predictable legal environment in Georgia.  The subcommittee, chaired by Rep. Rob Leverett, has heard thirteen hours of testimony on this single measure.  It is the most thoroughly vetted piece of legislation to come before the General Assembly in recent memory.

On Monday, Governor Kemp reiterated his commitment to a special legislative session if lawmakers cannot pass meaningful reform before the regular session adjourns on April 4.  The business community has been especially active this week, providing critical testimony during hearings and engaging directly with legislators and the press on Thursday.  The House is expected to act on SB 68 next week.

Bill Highlight: Department Housekeeping Bill

Sen. John Kennedy (R), Macon presented HB 15 on the Senate floor on March 10.   This is the Department of Banking and Finance’s annual housekeeping bill.  The Association has worked closely with the Department since August when it initially released a draft of the bill.

These amendments are intended to streamline regulations, improve efficiency, and reduce regulatory burdens across the various sectors regulated by the Georgia Department of Banking and Finance.  Key highlights include:

CREDIT UNIONS AND BANKS

• Streamline the application processes for new credit unions and banks.
• Revise requirements for reporting loans and evaluating credit union formations.
• Allow greater flexibility in applications and operational processes for foreign bank offices.

MERCHANT ACQUIRER LIMITED PURPOSE BANK (MALPB)

• Update receivership and forfeiture provisions to align with network concerns.
• Adjust fund safeguarding requirements and employee background checks.

NON-DEPOSITORY FINANCIAL INSTITUTIONS

• Implement risk-based standards for mortgage brokers and lenders examinations, including financial and governance requirements.
• Modify felony prohibition policies to align with federal standards.
• Introduce an administrative withdrawal process for incomplete applications to avoid negative consequences for applicants.

GENERAL CLEANUP PROVISIONS

• Clarify change-in-control rules for holding companies.
• Remove outdated solicitation requirements for mortgage lenders.

ADDITIONAL RESOURCES

• For a complete copy of the current version of HB 15, visit the Georgia General Assembly website here.
• For a more thorough summary of proposed changes, click here.

The Senate adopted the bill 46-1 and it now goes to the Governor for signature.

Active Measures: Banking

These measures remain active after Crossover Day.

Intangible Recording Tax (HB 586)

Rep. Bruce Williamson, R—Monroe

Bill passed by the Senate Finance Cmte on Mar-12.

HB 586 revises the notes for which such tax is imposed.  As introduced, it changes the term of a long-term note secured by real estate from three to seven years from the date of the note.  To alleviate concerns raised by local government, the Senate Finance Committee revised the term to 62 months from the date of the note.  This change requires the bill to return to the House after passing the Senate. 

Vendor Compensation (HB 439)

Rep. Bill Yearta, R—Sylvester

Bill assigned to the Senate Finance Cmte on Mar-10.

HB 439 revises vendor compensation rates to offset the administrative costs of collecting and reporting sales tax.  The bill increases the base deduction from 3% of the first $3,000 collected to 3% of the first $10,000 collected.

Georgia Housing and Finance Authority (HB 159)

Rep. Clint Crowe, R—Jackson

Bill passed by the Senate Economic Development & Tourism Cmte on Mar-12

HB 159 increases the outstanding bond limit from $3 billion to $6 billion for the Georgie Housing and Finance Authority.  No state funds are at risk through this program.

Mortgage Trigger Leads (HB 240)  

Rep. Noel Williams, R—Cordele

Bill passed by the Senate Banking & Financial Institutions Cmte on Mar-12

HB 240 bars credit reporting agencies from selling consumers’ contact information when they apply for a residential mortgage. 

Convenience Fees for Payment by Electronic Means (HB 241)               

Rep. Trey Rhodes, R—Greensboro

Bill passed by the Senate Banking & Financial Institutions Cmte on Mar-12.

HB 241 comes at the request of Chime, a financial technology company that offers an earned wage access service called MyPay, which provides advances without interest charges.  Under this proposal, Chime will submit to licensure under the Georgia Installment Loan Act and offer its MyPay product as a loan.  While Chime offers a no-fee “standard access” payout, it also offers an “instant access” option with a $2 fee.  To accommodate this fee structure, HB 241 increases the convenience fee allowed under the installment lender statute to the average actual cost incurred by the lender or $5, whichever is great. 

Manufactured Homes (HB 377)

Rep. Rob Leverett, R—Elberton

Bill passed by the Senate Banking & Financial Institutions Cmte on Mar-12.

HB 377 relates to manufactured or mobile homes and provides limited exceptions to circumstances under which a manufactured home shall become real property.

Active Measures: General Business

Property

Community Development Districts (HR 192)

Rep. Ron Stephens, R—Savannah

Resolution presented to the House Ways & Means Cmte on Mar-12.

HR 192 proposes an amendment to the Georgia Constitution to authorize the General Assembly to create and regulate community development districts, subject to local governmental approval.  The enabling legislation is HB 317.

Taxation

Catastrophic Savings Accounts (HB 511)

Rep. Eddie Lumsden, R—Armuchee

Bill passed by the Senate Finance Cmte on Mar-12.

HB 511 provides deductions from taxable income for contributions by taxpayers to catastrophic savings accounts and interest earned on such accounts.  This tax incentive is designed to encourage residential property owners to save funds designated for expenses related to natural disasters.  The House Ways and Means Committee added language to clarify how the account is managed upon the death of the account owner.

Senate Study Fair Tax Study Committee (SR 386)

Sen. Colton Moore, R—Trenton

Resolution assigned to the Senate Rules Committee

SR 386 creates the Senate State FairTax Study Committee. 

New Legislation of Interest

Measures introduced after Crossover Day have a very low probability of advancing this year but will be monitored with other lost and inactive items.

• Medical Debt Protection Act (HB 765), Rep. Lisa Campbell, D—Kennesaw