Senate Bill 70

Chair's Name: James Mills

Committee: Banks & Banking

Senate Sponsor: Bill Hamrick

House Sponsor: James Mills

SB 70 updates the banking laws in order to reflect changes in federal law and current practices. This bill was brought by the Department of Banking & Finance and was not opposed by the affected industries. The following points highlight the changes made in this omnibus legislation:

• Excludes the value of good will in certain transactions to minimize its impact on limits of loans, investments and fixed assets.
• Follows federal agency rules and regulations regarding real estate loans.
• Follows Georgia Corporate Code language to allow for the electronic transmission of proxy.
• Defines share exchange and allows for share exchange in mergers or consolidations. 
• Changes qualifications for check sellers and requires background checks on employees and agents of check sellers.
• Clarifies the licensee's obligation to post a bond as well as clarifies the registration and testing of check sellers who are not licensed.
• Provides for a cease and desist order to be issued against noncompliant licensees and specifies a penalty for withholding or falsifying information submitted to the Department.
• Puts in place advertisement restrictions and background checks for check cashers and mortgage lenders/brokers
• Places a limit on check-cashing fees

This bill received a Do Pass recommendation from the Banks & Banking Committee and comes to the House Floor under the Open Rule. 

Chairman Mills� opinion of this legislation: 

WHAT PROBLEM/OPPORTUNITY DOES THIS LEGISLATION ADDRESS?

The bill brings state law in compliance with Federal Regulations.

WHAT IS THE DRIVING FORCE BEHIND THIS LEGISLATION?

The bill is driven by the Department of Banking and Finance.

THIS LEGISLATION:

• Reduces the Tax Burden on our Citizens: The bill allows for tax advantages to financial institutions� shareholders.
• Other: The bill provides for consumer protection through regulation of financial institutions; it also complies with homeland security procedures.