February 12, 2010
Senators Go Eyeball to Eyeball as Session Reaches Halfway Point
Legislators began considering more contentious issues this week, as the Regular Session crept past its halfway point. Four full weeks of Legislative action remain. The most exciting action of the week took place in the Senate Government Organizations Committee, where Senators focused for two full meetings, before packed houses of observers, on the perennial scope of treatment battle between West Virginia’s optometrists and ophthalmologists. The ultimate victor is yet to be seen.
Representatives Meet with House Banking Chair
RE: Potential Overdraft/NSF Fee Legislation
Bank representatives met with House Banking Committee Chairman Clif Moore on Thursday, to offer banks’ response to the Chairman’s challenge to banks to propose some sort of progressive program aimed at promoting financial literacy in West Virginia, or otherwise address the Chairman’s concerns regarding overdraft fees.
The bank representatives carefully pointed out many of the significant contributions banks are making, and will make in the future to financial education throughout West Virginia, often in partnership with State agencies, public officials and interest groups such as the AARP. Chairman Moore also heard about initiatives in this regard undertaken by individual banks in an effort to help customers better manage and understand their deposit accounts. Although Chairman Moore was clearly disappointed that banks did not offer a new, progressive and aggressive program addressing both financial literacy and the concerns he has heard from a few committee members regarding overdraft fees, Chairman Moore stated that he would faithfully relay our points and materials to his colleagues on the House committee.
Bank representatives at the State Capitol intend to follow up during the coming week with the two or three committee members that have shared their concerns with the Chairman. We continue to believe that a majority of the members of the committee fully understand the significance of this issue to banks in West Virginia, and will not be easily persuaded by the concerns of a few of their colleagues on the committee.
Banking and Insurance Committee Action
On Wednesday, the House Banking & Insurance Committee considered its first banking bills of the Session. The Committee made technical amendments to three bills introduced at the request of the Division of Banking, and reported out each bill for further consideration by the House Judiciary Committee. Moving along in the process were HB 4285 (providing certain mortgage loan originators be licensed or registered); HB 4291 (relating to certain State Police and FBI criminal background investigations); and HB 4297 (requiring regulated consumer lenders to file a notice of change of ownership in certain circumstances).
On Tuesday afternoon, the Senate Banking & Insurance Committee considered nine bills, all but one of which would authorize rules promulgated by the Insurance Commissioner. None of these bills were of interest to banks.
Fire Debris Bill
Banks suffered a mild setback on Thursday afternoon, when Subcommittee C of the Senate Banking & Insurance Committee declined to take up a bank sponsored amendment to SB 224 (creating a statutory lien on ten percent of fire insurance proceeds payable in the case of the total loss of an insured structure, to secure debris cleanup and removal). The amendment would make it clear that the lien, created to secure debris removal following a total loss, would be subordinate to the interests of a loss payee designated in the insurance policy, such as a lender bank. The amendment is opposed by the Governor’s representatives, and by the municipalities of the State. The bill, and the bank-sponsored amendment, will very likely come before the full Senate Banking & Insurance Committee next Tuesday. SB 224 has a second reference to the Senate Judiciary Committee, where it may face a rocky reception from Senate Judiciary Chairman Jeff Kessler.
SB 381 (regulating ability of Division of Banking employees to obtain certain loans) passed the Senate this week, and moved on to the House, where it was referred to the House Banking & Insurance Committee, with a second reference to the House Judiciary Committee.
Bills Introduced This Week
The total number of bills introduced this Session went over the one thousand mark this week. As of Friday morning, a total of 1060 bills have been introduced during the 2010 Regular Session. Below is a brief listing of bills of interest to bankers.
Senate Bills ~ Title ~ Status
SB 429 ~ Allowing municipalities impose excise tax on transfer of real estate ~ Judiciary then Finance
House Bills ~ Title ~ Status
HB 4370 ~ Limiting the number of telephone calls by a debt collector to a consumer ~ Judiciary
HB 4469 ~ Requiring bank transactions regarding savings and checking accounts to be credited to the account at the time of the transaction ~ Banking & Insurance then Judiciary