HAPPENINGS AT THE STATE CAPITOL

General Assembly Recap, Crossover Day Set for Next Friday

The Georgia General Assembly completed Day 25 of its 40-day session Thursday. Below is a report of the most significant legislative news from the Capitol. The Legislature has reserved Monday and Thursday next week as committee workdays and will be in session Tuesday and Wednesday, with Crossover Day on Friday. Sine Die is scheduled for Thursday, April 2.

Amended Year State Budget Heads to Governor

House and Senate budget conferees finalized HB 973 by House Speaker Jon Burns (R-Newington) Wednesday, which outlines the amended FY 2026 budget. Negotiations between the two chambers were led by House and Senate Appropriations Chairs Rep. Matt Hatchett (R-Dublin) and Sen. Blake Tillery (R-Vidalia). For many Georgians, the most notable provisions include $850 million in property tax relief and income tax rebates totaling roughly $2 billion. The budget also provides significant funding for mental health, corrections capacity, transportation, scholarships and homelessness initiatives. The bill was immediately transferred to the Governor for his signature, which is expected to happen soon.

Sen. Steven McNeel Joins Senate Banking and Financial Institutions Committee

Newly elected Sen. Steven McNeel (R-Macon) was sworn in this week and appointed to serve on the Senate Banking and Financial Institutions Committee. McNeel represents Georgia’s 18th District, which includes Crawford, Monroe, Peach and Upson counties, as well as portions of Bibb and Houston counties. He is an attorney and timber farmer, who won a special runoff election on Feb. 17 to fill the seat vacated by former Sen. John Kennedy. GBA looks forward to working with Sen. McNeel on important banking and financial industry issues during the remainder of the legislative session.

Committee and Floor Action Intensifies on Banking-Related Bills

This week saw significant movement in both the House and Senate, including several bills we are tracking.

The Senate passed SB 441 by Sen. Marty Harbin (R-Tyrone) Thursday, which would require certain local government investment pool arrangements to receive State Depository Board approval before being established. GBA supports this measure. It now moves to the House and is awaiting committee assignment. SB 441 counters HB 871 by Rep. Victor Anderson (R-Clarkesville), which GBA testified against last week in the House Governmental Affairs Subcommittee on State and Local Government. HB 871 would expand investment options for local government entities, potentially increasing unfair competition for public deposits, which local banks depend on as part of their deposit mix to recycle into loans in their communities.

The Senate Banking and Financial Institutions Committee, chaired by Sen. Carden Summers (R-Cordele) passed out SB 424 by Sen. Marty Harbin (R-Tyrone) Tuesday. The bill would amend state law to allow gold and silver as legal tender, establish a state bullion depository, authorize an electronic payment system tied to gold and silver, set regulatory guidelines, provide for privately insured deposits and restrict taxation on gold and silver transactions.

On Thursday, the House Banks & Banking Committee, Chaired by Rep. Noel Williams (R-Cordele) favorably reported:

Transaction Rounding. HB 1112 by Rep. Carter Barrett (R-Cumming) which allows merchants to round cash transaction totals to the nearest five cents when customers pay with coins or currency. If one cent, two cents, six cents or seven cents is at the end of the resulting total, the total will be rounded down to the nearest five cents. If three cents, four cents, eight cents, or nine cents is at the end of the resulting total, the total will be rounded up to the nearest five cents. The bill also clarifies that applicable sales tax must be charged on the full amount of the sales price prior to rounding up or down.

Installment Loan Disclosures. HB 1314 by Rep. Marvin Lim (D-Norcross) which requires installment lenders to disclose whether loans will be reported to credit agencies.

Sen. Marty Harbin

Rep. Victor Anderson

Rep. Carter Barrett

Rep. Marvin Lim

Updates on Legislation GBA is Tracking

Be sure and set a web browser bookmark for the State Issues page on the GBA website to track details about specific bills during the session. Clicking a bill number link gives you the text of the bill and its current status as it moves through the process. GBA is tracking many bills on the State Issues page that will be reported on during the session if action is taken on them and they are relevant to the banking industry. This week, we want to note the following:

Hurricane Helene

SB 59 By Sen. Sam Watson (R-Moultrie) increases the aggregate cap for Hurricane Helene timber loss credits from $200 million to $250 million. The bill passed the House and now heads to Governor Kemp for his consideration. The House sponsor was Rep. Angie O’Steen (R-Ambrose).

Property Owners Associations

SB 406 by Sen. Matt Brass (R-Newnan) requires annual registration with Secretary of State for all property owners' associations with $100 fee and financial disclosure requirements. It creates a State Board for Review of Complaints to investigate association violations within 90 days of receipt and establishes a list of specific rights for community association owners. Additionally, it prohibits associations from bidding at foreclosure sales and raises minimum foreclosure threshold from $2,000 to $4,000. The Secretary of State is also authorized to deny, suspend, or revoke registrations for violations and limit association powers. The bill was favorably reported by the Senate Judiciary Committee.

Credit Repair Services

SB 548 By Sen. Carden Summers (R-Cordele) exempts certain for-profit credit repair organizations from the definition of 'credit repair services organization' if they meet specific consumer protection requirements. It requires qualifying organizations to obtain a $50,000 bond and provide detailed written contracts and consumer disclosures. The bill has been assigned to the Senate Banking and Financial Institutions Committee.

Development Impact Fees

SB 593 by Sen. Bo Hatchett (R-Cornelia) adds disclosure requirements for development impact fees and requires cities and counties to disclose total development impact fees upon individual request. It applies to any real estate parcel when ownership transfer would trigger fee obligations. The bill has been assigned to the Senate State and Local Government Operations Committee.

Identity Theft

SB 594 by Sen. Tim Bearden (R-Carrollton) makes digital identity fraud a felony punishable by 1-20 years’ imprisonment and fines of $1,000-$500,000. It criminalizes unauthorized use of someone's name, image, or profile information on social media to deceive, harm or commit fraud. It also provides civil lawsuit rights for identity theft victims to recover damages and attorney fees. The bill has been assigned to the Senate Judiciary Committee.

Magistrate Court Claims

HB 792 by Rep. Martin Momtahan (R-Dallas) increases the monetary jurisdiction limit for magistrate court civil claims from $15,000 to $25,000. It expands the authority of magistrate courts to handle higher-value civil disputes, including garnishment and attachment cases. The bill passed the House and has been assigned to the Senate Judiciary Committee.

Tax Rate Reduction

HB 880 By Rep. Shaw Blackmon (R-Bonaire) gradually reduces Georgia's income tax rate from 5.19% to 3.99% through annual 0.10% decreases beginning in 2026. It increases standard deductions, dependent deductions, and retirement income exclusions gradually starting in 2027. The bill was favorably reported by the House Ways & Means Committee.

Income Tax Reduction

HB 1001 by Rep. Will Wade (R-Dawsonville) sets Georgia's individual income tax rate at 4.99% starting Jan. 1, 2026, instead of the previously scheduled 5.19% rate. It establishes specific revenue conditions that must be met to prevent delays in implementing the tax rate reduction. The bill passed the House and has been referred to the Senate Finance Committee.

Bankruptcy Exemption

HB 1024 by Rep. Soo Hong (R-Lawrenceville) increases the homestead exemption from $21,500 to $50,000 for individual debtors in bankruptcy and insolvent estate proceedings. It raises the exemption from $43,000 to $100,000 when property is the primary residence of both spouses. The bill establishes automatic annual inflation adjustments beginning July 1, 2031, based on cost-of-living changes. The bill passed the House and has been referred to the Senate Banking and Financial Institutions Committee.

Property Owners Associations

HB 1035 By Rep. Sandra Scott (D-Rex) prohibits foreclosure sales of owner-occupied homes for unpaid utility bills, HOA fees and other non-tax service charges. It establishes civil remedies and penalties for violations while allowing collection through unsecured debt actions. The bill was favorably reported by the House Ways & Means Committee.

Timber Manufacturing

HB 1085 by Rep. Jesse Petrea (R-Savannah) creates new tax credits for forestry manufacturing facilities in Georgia, including job-creation and investment-property credits based on county tier designations. It allows forestry manufacturers to transfer or sell unused tax credits to other Georgia taxpayers from 2026 through 2030, with specific reporting requirements. The bill passed the House and has been referred to the Senate Finance Committee.

Tiny Homes

HB 1166 by Rep. Tangie Herring (D-Macon) exempts residential dwellings of 400 square feet or fewer from local zoning decisions when located on property where residential uses are authorized. It preserves local government authority to enforce building codes, septic regulations, historic district rules, manufactured home standards and flood insurance requirements. The bill was favorably reported by the House Governmental Affairs Committee.

Unauthorized Practice of Law

HB 1433 by Rep. Joseph Gullett (R-Dallas) changes violations of Georgia Code Sections 15-19-51 and 15-19-53, dealing with the unauthorized practice of law, from misdemeanors to felonies. It applies felony penalties to corporate officers and employees who engage in or assist with prohibited legal practice. The bill has been assigned to the House Judiciary Committee.

Electronic Notary

HB 1437 By Rep. Houston Gaines (R-Athens) authorizes notaries public to perform notarial acts in person, using electronic means including electronic signatures and seals. It updates existing notary law definitions and requirements to accommodate electronic notarization processes. The bill has been assigned to the House Technology and Infrastructure Innovation Committee.

Local Government Financing

HB 1448 By Rep. Victor Anderson (R-Clarkesville) would Create the Georgia Local Government Finance Authority to provide financing for local governments through bond issuance and leasing programs. It establishes a five-member board appointed by state officials to oversee asset financing by local governments. The bill has been assigned to the House Governmental Affairs Committee.

Scott Tomlinson Recognition

HR 1450 By Rep. Bill Yearta (R-Sylvester) recognizes Flint Community Bank CEO Scott Tomlinson upon his retirement after 45 years in banking, including 20 years with Flint Community Bank. The resolution was read and adopted.

Rep. Bill Yearta

Scott Tomlinson

GBA Represented at the Capitol

The association’s advocacy team is hard at work representing the interests of banking at the State Capitol. Reach out to any of them if you need information about a bill, contact information for your representatives or tips on where to park if you’re coming for a visit. Here’s their contact information:

• Elizabeth Chandler, executive vice president, government relations and advocacy: echandler@gabankers.com, 404.372.7893
• Bo Brannen, senior vice president, member services and advocacy: bbrannen@gabankers.com, 404.731.9886
• Steve Bridges, government relations consultant: sbridges@gabankers.com, 770.789.5605
• Tripp Cofield, president and CEO: tcofield@gabankers.com, 617.909.9530.

We will publish future editions of the Legislative Update after the General Assembly adjourns each week. Please let us know if you have questions or comments on issues of interest to you.