January 29, 2010
Pace Remains Measured Durin Week Three
The pace of the 2010 Regular Session remains measured. The most watched items in the 2009 Regular Session through Day 17 are: (1) the anticipated recommendations of the legislators who have been working on a solution to the $7.8 billion under funding of OPEB (“Other Post Employment Benefits”) of retired public employees; and (2) the plans of the Legislature, the Chief Executive and the West Virginia Supreme Court of Appeals regarding the creation of an intermediate court of appeals in West Virginia. Look for concrete proposals on both of these important issues to emerge later in the session.
Bankers are focusing their attention on a meeting scheduled with House Banking Chairman Clif Moore on Tuesday, February 2, to discuss the Chairman’s concerns regarding overdraft fees, overdraft protection programs, and his stated intent to introduce legislation to limit or restrict the ability of banks to provide overdraft protection to customers.
With the active guidance and input of members of the Joint Legislative Committee of the two banking associations, talking points have been developed for use in communicating with legislators and others on this issue. Joining bankers and bank lobbyists at next Tuesday’s meeting with Chairman Moore will be Banking Commissioner Sally Cline and senior members of her staff.
We hope to learn more about the concerns and views of the House Banking Chairman on this important issue next week. We also plan to share the many important points and considerations reflected in the white paper on this topic. We will report back following the meeting with Chairman Moore.
No banking bills have been taken up thus far in the session in either the Senate or the House Banking & Insurance Committees.
Five of Commissioner Cline’s six bills were introduced in the Senate on Thursday: SB 376 (making changes to the deed of trust foreclosure reporting process); SB 381 (modifying limitations on the ability of employees of the Division of Banking to obtain loans from state banks); SB 385 (defining and lowering the amount of collateral required to secure county deposits); SB 387 (requiring the regulated consumer lenders file a notice of change of ownership in certain circumstances, to bring requirements regarding RCL’s into conformity with like requirements imposed on banks and others); and SB 377 (addressing duplication of criminal background check requirements).
As of Friday, these bills had not yet been introduced in the House.
Banks are generally supportive of all of the Commissioner’s bills. Bank representatives are reviewing the bills introduced, to identify any drafting or other concerns or suggestions banks may have.
One bill that bankers are watching closely is SB 224, known as the “Fire Debris Bill.” This bill arises out of events occurring in Huntington over the past year or so, and relates to the use of insurance proceeds by property owners in the event of property destruction by fire.
The problem for Huntington (and some other municipalities) is that some property owners are receiving insurance proceeds and simply walking away from property they own after a fire, leaving the property in a blighted condition.
The bill would create a lien in favor of the municipality or county attaching to a portion of the insurance proceeds, to permit the county or municipality to clean up debris on totally destroyed property if the property owner does not do so. As drafted, the bill is unclear as to the priority of the liens upon the portion of proceeds. Bank representatives are attempting to amend the bill to provide express priority for the interests of loss payees, such as banks. The insurance lobby is resisting the efforts of banks.
SB 224 is a Governor’s bill and has the attention of the Senate leadership. The bill is currently residing in Subcommittee C of the Senate Banking & Insurance Committee.
Your representatives at the Capitol will continue to work actively on this bill to protect the interests of banks as the bill advances.
Candidate Filing Deadline
The filing deadline for seats in the Legislature is midnight on Saturday, January 30. There are 17 seats up for election in the Senate, and all 100 seats up for election in the House of Delegates.
Bills of Interest
As of Friday morning, a total of 642 bills have been introduced in the 2009 Regular Session. Below is a brief listing of bills of interest to bankers:
Senate Bills
SB 353 ~ Providing for notice of trust sale by first-class mail ~ Judiciary then Finance
SB 374 ~ Limiting county commissions' mortgage recording tax ~ Government Organization then Finance
SB 375 ~ Creating Uniform Real Property Electronic Recording Act ~ Judiciary then Finance
SB 376 ~ Relating to residential mortgage foreclosure data ~ Banking and Insurance
SB 377 ~ Relating to certain State Police and FBI criminal background investigations ~ Judiciary
SB 381 ~ Regulating ability of Division of Banking employees to obtain certain loans ~ Banking and Insurance
SB 385 ~ Requiring banks provide bond to secure certain county deposits ~ Introduced 1/28/2010; to Banking and Insurance then Government Organization
SB 387 ~ Providing certain mortgage loan originators be licensed or registered ~ Introduced 1/28/2010; to Government Organization then Finance