Advocacy Update 2025 - Legislative Days 35-37

Litigation Funding Bill Progresses

On March 25, the House Rules Lawsuit Reform Subcommittee gave a do pass recommendation to SB 69, which regulates third-party litigation funding.  This is Governor Kemp's second measure to advance legal reforms in the state.  The House adopted the bill on March 27.  Having been amended, it returns to the Senate for final approval.  For specific changes, please see below.

As is typical as the legislative calendar wanes, bills are hijacked, gutted, and loaded with new language to resurrect otherwise lifeless legislation, sometimes over the objection of the author of the underlying bill.  This is an especially fraught time since each amended measure must be screened.  As a result, the status of issues changes rapidly.  It’s not always pretty, but a significant portion of policy happens in this manner.  Just three days remain during the 2025 legislative session, which will conclude on Friday, April 4.

Bill Highlight: Regulation Third-Party Litigation Funding

Regulate Third-Party Litigation Funding (SB 69)

Sen. John Kennedy, R-Macon
Adopted by the House on Mar-27
The Georgia Courts Access and Consumer Protection Act regulates third-party litigation financiers (TPLF) and requires the industry to submit to oversight by the Georgia Department of Banking and Finance.  The House made several revisions to the measure, many which came at the request of the Department; it now rests with the Senate.
•    Registration Requirements.  The Senate required disclosure of 5% or more ownership in the registration process; the House increased the threshold to 10%.
•    Additional Procedures.  The House added procedures for the denial of registration or amendments, notice requirements, and appeal rights.
•    Joint and Several Liability.  The Senate applied joint and several liability to all litigation financiers, regardless of funding size.  In the current version, it is only applied if $25,000 or more in funding is provided.  Liability is capped if the repayment is fixed.
•    National Registry.  The current version clarified that TPLF can be required to participate in the Nationwide Multistate Licensing System (NMLS) which is already widely used by the Department.
•    Discovery.  The Senate allowed for discovery of all litigation financing agreements.  The House added an exception for nonparties unless more than $25,000 is involved, narrowing the scope of discovery.

Active Measures: Banking

These measures remain active after Crossover Day.

Convenience Fees for Payment by Electronic Means (HB 241)               

Rep. Trey Rhodes, R—Greensboro

Senate passed the bill with a vote of 53-3 on Mar-27.

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.

Hemp and Medical Cannabis

The House took action on hemp and medical cannabis:

• SB 254 amends the Hemp Farming Act to impose milligram limits on Delta-9-THC in consumable hemp products.  An amendment gutted the bill and effectively prohibits the sale of consumable hemp products and THC-infused beverages. Bill passed by the Committee on Mar-27.

HR 368 creates a Joint Study Committee on Intoxicating Cannabinoids in Consumable Hemp Products.  Resolution passed by the Committee on Mar-26.

Active Measures: General Business

Property

Squatting (HB 61)

Rep. Devan Seabaugh, R—Marietta

Bill passed by the Senate Public Safety Cmte on Mar-24.

HB 61 now contains language to address squatting.  It appears to mirror provisions originally found in SB 184 and HB 183, which create a penalty for forgery cases related to unlawful squatting (forging a rental agreement, for example).  It establishes a process for removing hotel / motel squatters.  The bill specifies that any accommodation furnished on a day-to-day or week-to-week basis constitutes an innkeeper-guest relationship (not a landlord-tenant relationship), regardless of the guest’s length of stay.  Opponents, including the Fulton County Marshal’s Department, contend hotel squatters should be afforded some type of formal dispossessory process.

Manufactured or Mobile Homes (SB 119)

Sen. Russ Goodman, R—Cogdell

Bill passed by the House with a vote of 168-0 on Mar-25.

Under current law, a manufactured home becomes real property if it is permanently affixed to land owned by the homeowner, and a Certificate of Permanent Location is filed with the county’s real estate records.  SB 119 allows certain manufactured homes to remain classified as personal property even when permanently affixed to owned land.  The change aims to preserve the rights and remedies of prior lienholders or security interest holders in these homes.

Possessory Interest in Certain Land by Foreign Persons (HB 358)

Rep.  Vance Smith, R—Pine Mountain

Bill passed by the Senate Judiciary Cmte on Mar-26.

HB 358 prohibits certain foreign persons and entities from the acquisition of possessory interest in certain land defined as a military installation.  This has been presented as a clean-up requested by legislative counsel.

Judicial

File Notices of Uncontested Motions in Superior Court (SB 173)

Sen. Josh McLaurin, D –Atlanta

Bill passed by the House Judiciary Cmte on Mar-26.

SB 173 authorizes movants to file notices of uncontested motions in superior courts and state courts. 

Technology 

Georgia Consumer Privacy Protection Act (SB 111)

Sen. John Albers, R-Roswell

Bill approved by the House Technology & Infrastructure Innovation Cmte on Mar-26.  Bill recommitted to the Senate Judiciary Cmte on Mar-27.

SB 111 seeks to protect the privacy of consumer personal data. The bill defines consumers’ rights, the responsibilities of data controllers and processors and requirements for data protection assessments.  The bill contains a requested exemption from last year’s bill (SB 473) for financial institutions and affiliates of financial institutions, data or personal information subject to Title V of the federal Gramm-Leach-Bliley Act.

Ensuring Accountability for Illegal AI Activities Act (SB 9)                                                                                  

Sen. John Albers, R—Roswell

Bill passed by the House with a vote of 152-12 on Mar-27.    

SB 9 as passed by the Senate was gutted and replaced with language from HB 986 from last session.  The bill establishes the criminal offense of election interference with a deep fake and solicitation of such.

General Business

Georgia Consumer Privacy Protection Act (SB 111)

Sen. John Albers, R-Roswell

Bill approved by the House Technology & Infrastructure Innovation Cmte on Mar-26.  Bill recommitted to the Senate Judiciary Cmte on Mar-27.

SB 111 seeks to protect the privacy of consumer personal data. The bill defines consumers’ rights, the responsibilities of data controllers and processors and requirements for data protection assessments.  The bill contains a requested exemption from last year’s bill (SB 473) for financial institutions and affiliates of financial institutions, data or personal information subject to Title V of the federal Gramm-Leach-Bliley Act.

Ensuring Accountability for Illegal AI Activities Act (SB 9)                                                                                  

Sen. John Albers, R—Roswell

Bill passed by the House with a vote of 152-12 on Mar-27.    

SB 9 as passed by the Senate was gutted and replaced with language from HB 986 from last session.  The bill establishes the criminal offense of election interference with a deep fake and solicitation of such.

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.

• Torts—Cause of Action for Appropriating an Individual’s Indicia of Identity (SB 354), Sen. Sally Harrell, D—Atlanta
• Property Owners’ Associations (SB 361), Sen. Matt Brass, R—Newnan
• Abusive Practices of Homeowners’ Associations (SR 445), Sen. Donzella James, D—Atlanta
• End Corporate Ownership of Georgia Homes Act (HB 864), Rep. Gabriel Sanchez, D—Smyrna

ICBA Capital Summit

Now is the time to advocate for critical reforms that address the unique challenges community banks face while continuing to meet the needs of our local communities. The ICBA Capital Summit empowers you to make your voice heard on Capitol Hill, ensuring policymakers understand the vital role of community banks in driving growth and opportunity.

Join your peers from across Georgia May 12-15, 2025 for the ICBA Capital Summit 2025 in Washington, D.C. CBA’s John McNair, Lori Godfrey, and Becky Soto will be at the Georgia coalition for this unique opportunity to visit one on one with Georgia’s top legislators. 

Learn more and register. Special thanks to our sponsors ICBA Securities, IntraFi, James Bates Brannan Groover LLP, Newcleus Bank Advisors, SHAZAM and Federal Home Loan Bank of Atlanta.