HAPPENINGS AT THE STATE CAPITOL

General Assembly Days 29-31, Sine Die on the Horizon

The General Assembly convened this week for Legislative Days 29–31. This week's highlights included the House passing the FY27 budget. It now heads to the Senate for further consideration. The Banking Department’s Housekeeping bill with fraud protection provisions also passed the Senate and heads to the Governor’s desk, but not before some drama on the floor. Read more about that below. The Legislature will be in session Monday, Wednesday, Thursday and Friday next week, with Tuesday reserved for a committee workday. Sine Die is scheduled for Thursday, April 2.

Tillery’s Debanking Amendment Fails as Senate Passes Banking Department Fraud Protection Bill

We’re pleased to report the Banking Department’s housekeeping bill, HB 945 by Rep. Bruce Williamson (R-Monroe), is headed to Gov. Kemp’s desk after a tense Senate floor debate Tuesday. The bill allows banks to place temporary holds on suspicious transactions while investigating potential fraud and establishes a regulatory framework for virtual currency kiosks, commonly known as “crypto ATMs,” to better protect vulnerable customers.

During debate, Sen. Blake Tillery (R-Vidalia) attempted to amend the bill by adding provisions from his previously proposed “debanking” legislation. The issue has gained national attention as President Trump and others have criticized banks for allegedly discriminating against conservative customers. Tillery had a similar proposal last year that was roundly rejected in the Senate by a vote of 13-43. Sen. Tillery’s debanking amendment received even less support this year, dismissed by a vote of 9-41.

After an extended debate and the rejection of several related amendments, the Senate passed the bill without any changes. One thing to note: a few lawmakers said their vote reflected concerns about attaching unrelated policy to the department’s annual cleanup bill, rather than solely based on opposition to the debanking issue. GBA’s advocacy team will continue to advocate for an approach to this issue that protects banks from unnecessary risk and potential litigation, ensuring they can follow regulatory guidelines and use risk-based decision-making when determining with whom to do business.

Sen. Mike Hodges

Senate Banking Committee Chairman Carden Summers

GBA thanks Senate sponsor Sen. Mike Hodges (R-Brunswick) and Senate Banking Committee Chair Sen. Carden Summers (R-Cordele) for their leadership in ensuring a clean version of the bill passed. Other Senators who raised helpful questions about the unfriendly amendments were Sen. Randy Robertson (R-Cataula), Sen. Bill Cowsert (R-Athens) and Sen. Emmanuel Jones (D-Jonesboro). We’ve included a screenshot of the vote on Sen. Tillery’s amendment and encourage you to thank your Senators if they were among the 41 who voted no.

House Passes FY 2027 Budget

The Georgia House approved the state’s Fiscal Year 2027 budget Tuesday. HB 974 by House Speaker Jon Burns (R–Newington) outlines more than $76 billion in state spending for the fiscal year running July 1, 2026, through June 30, 2027. The budget funds the operation of Georgia’s state government, including its departments, agencies, boards, commissions and institutions, as well as the University System of Georgia, K–12 schools, local governments and other programs authorized by state law. The measure now moves to the Senate and has been assigned to the Senate Appropriations Committee for consideration. The full budget proposal can be found here.

How Bills Can Change: Senate Finance Committee Revives Manufactured Housing Tax Bill

We want to give readers an example of how the wrangling in the legislature can make a bill dead one week and alive the next. We saw one such example this week. The Senate Finance Committee Thursday amended HB 165 by Rep. Lehman Franklin (R-Statesboro), which originally dealt with repealing and reserving code sections for various tax credits, and replaced its language with HB 134 by Beth Camp (R-Concord). You may remember HB 134, which would expand a sales tax exemption for manufactured homes, was stripped earlier this session and replaced with language from SB 476 by Sen. Blake Tillery (R-Vidalia). SB 476 is a broader tax proposal which would, among other things, repeal the dollar-for-dollar state tax credit for financial institutions, often referred to as the bank tax credit, a proposed change that would significantly burden banks from a tax standpoint. Because tax legislation must originate in the House, the Senate used HB 134 as the vehicle for the income tax proposal. The Senate Finance Committee favorably reported the new version of HB 165, and it now goes to the Senate Rules Committee. The Senate sponsor is Chuck Hufstetler (R-Rome).

Georgia Special Elections Headed to April Runoffs

Voters in several parts of Georgia went to the polls Monday for four special elections, one for the U.S. House and three for seats in the Georgia General Assembly. None of the races produced a candidate with more than 50% of the vote, sending all four contests to runoff elections scheduled for April 7.

The highest-profile race was the one to replace former U.S. Rep. Marjorie Taylor Greene in North Georgia’s 14th congressional district. The crowded field prevented any candidate from winning outright. Advancing to the runoff are Republican Clay Fuller, the former district attorney for the Lookout Mountain Judicial Circuit and a former White House fellow, and Democrat Shawn Harris, a retired Army brigadier general and cattle farmer. Harris led the field with about 37% of the vote, while Fuller received roughly 35%.

Voters also cast ballots in special elections for State Senate District 53 and House Districts 94 and 130. None of those races produced a majority winner, meaning each will also be decided in the April 7 runoff. Complete results for all four races are available on the Georgia Secretary of State website.

Pictured: Rep. Scott Hilton (R-Peachtree Corners), Rep. Kimberly New (R-Villa Rica) and Rep. Josh Bonner (R-Fayetteville)

House Wins Annual Capitol Kickball Game

Serving in the General Assembly is demanding work. Lawmakers juggle hundreds of bills each session while staying available to constituents at the Capitol and back home. One tradition that gives legislators a break is the annual kickball game between the House and Senate at the Georgia State University Football stadium. The House team, captained by House Speaker Jon Burns, came out on top for the second straight year. While the legislative session is serious business, events like the game give lawmakers a chance to unwind and build relationships with colleagues and other legislative staff outside the Capitol.

Updates on Other 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:

Boat Titling

HB 115 by Rep. Jesse Petrea (R-Savannah) would allow the Department of Natural Resources to remove, store and dispose of abandoned vessels. Language was added in last year’s legislative session to ensure that lienholders are informed of the abandoned vessel's status and location, as well as the potential for its disposal. The bill passed the Senate. The Senate sponsor was Sen. Shawn Still (R-Johns Creek).

Criminal Records

HB 162 by Rep. Leesa Hagan (R-Lyons) would provide for the restriction and sealing of First Offender Act sentences until such status is revoked. The bill includes GBA's requested language from last session to exempt federally insured financial institutions. The bill passed the Senate. The Senate sponsor was Sen. Bill Cowsert (R-Athens).

Transactional Gold and Silver

SB 424 by Sen. Marty Harbin (R-Tyrone) requires the state to recognize gold and silver as legal tender for voluntary transactions by Jan. 1, 2028. It creates a six-member Bullion Depository Commission to establish secure storage facilities. It also authorizes electronic payment systems to facilitate transactions, establishes full nongovernmental deposit insurance coverage and privacy protections for depositor accounts and prohibits taxation on gold and silver transactions. The bill passed the Senate on Crossover Day and will be heard by the House Banks & Banking Committee on Tuesday morning next week.

Local Government Investment Pools

SB 441 by Sen. Marty Harbin (R-Tyrone) requires new investment pools for local governments to obtain State Depository Board approval prior to establishment. The bill was favorably reported by the House Budget & Fiscal Affairs Oversight Committee. GBA supports this measure.

Farm Bridge Assistance Program

HB 1159 by Rep. Matthew Gambill (R-Cartersville) exempts from Georgia state income taxation all payments received under two federal USDA agricultural assistance programs. Applies to individuals, corporations, and partnerships for taxable years beginning on or after Jan. 1, 2025. The bill was favorably reported by the Senate Finance Committee. The Senate sponsor is Sen. Bo Hatchett (R-Cornelia).

IRS Code Conformity

HB 1199 by Rep. John Carson (R-Marietta) updates Georgia’s definition of the IRS Code to include federal tax changes through Jan. 1, 2026. It moves the state’s tax conformity date from 2024 to 2025, keeps Georgia’s current exemptions from certain federal provisions and ensures future federal tax changes automatically apply in Georgia when they take effect. One notable amendment made in the Senate this week deals with Low-Income Housing Tax Credits (LIHTC). Specifically, as the bill reads now, Georgia will not adopt any federal LIHTC changes made by the One Big Beautiful Bill, meaning that any federal updates from that law will not apply for Georgia state tax purposes. LIHTC investors and developers should be aware that federal and state rules may differ, which could affect how LIHTC items are reported for Georgia taxable income. The bill passed the Senate and now heads back to the House for an agreement. The Senate sponsor is Sen. Chuck Hufstetler (R-Rome).

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.