March 12, 2010
2010 Session Draws to a Close
The 2010 Regular Session is moving to conclusion without much fanfare, fireworks or controversy. House of Delegates rules changes in recent years have led to a much more orderly and less exciting final week, and the fate of most bills is relatively certain at this time.
Perhaps the most heated issue of the 2010 Regular Session has been the fight between optometrists and ophthalmologists regarding a bill (SB 230) which would expand the scope of practice of optometrists. The bill is on its way to passage in the House of Delegates in a form that is significantly watered down from the version that passed the Senate. Expectations are that the bill will pass the Legislature in some form, but there may still be some thrills, spills and surprises in store for SB 230 as it completes its legislative journey.
SB 633 (authorizing deposit of public funds into federally insured cash sweep accounts) is poised to pass the House of Delegates on Saturday. On Monday, the House Finance Committee reported out SB 633 in the same form as it had passed the Senate, without dissent or debate. On Thursday, the House Leadership moved the bill to the House Calendar, a legislative holding pattern, where it will reside until Saturday.
Since SB 633 requires only passage by the House in order to go to the Governor for signature, the House Leadership chose to delay a vote on SB 633, so that it could advance other bills that will require further review by the Senate. We fully expect SB 633 to complete its legislative journey with a positive vote on Saturday.
HB 4387 (the Flexible Leave Act), a bill highly touted by organized labor, died in the Senate Judiciary Committee on Wednesday. After considerable debate on the bill in a Judiciary Committee meeting, Chairman Jeff Kessler (D-Marshall) moved the bill into a subcommittee chaired by Sen. Dan Foster (D-Kanawha). Dr. Foster’s subcommittee met Wednesday afternoon, at which time an alliance of banks and other business interests persuaded the subcommittee to decline to recommend passage of the bill. The “Sniffles Bill,” as it came to be affectionately referred to during the 2010 Regular Session, is dead.
SB 376 (deed of trust foreclosure data reporting) is moving nicely towards passage, after amendment to move the data collection, compilation and reporting burdens to the West Virginia Housing Development Fund. The transfer of these functions has been well received by the Legislature. SB 376 should pass the Legislature on Saturday in a form wholly acceptable to banks.
On Tuesday afternoon, the Senate Banking and Insurance Committee considered and reported out HB 4630 (removing requirement that mortgage loan brokers return an appraisal fee collected from a borrower when the loan fails to close). In sharp contrast to the House Banking and Insurance Committee’s treatment of this bill, which included sharp criticism of banks and other lenders, the Senate Committee reported the bill out with absolutely no debate or discussion whatsoever. This bill, highly sought by the mortgage loan broker industry, will likely pass the Legislature by Saturday night, in a form acceptable to banks.
The Governor’s bill to create a statutory lien attaching to 10% of the proceeds of a fire insurance policy upon a total loss claim, to secure fire debris removal, HB 4038, is on its way to passage. The banking community gained considerable good will from the Governor, cities and counties, upon backing off from an initial position of mild opposition to this bill. We expect the bill to have little real impact on banks, particularly in light of the expected improvement of banks’ collateral resulting from cleanup of the fire debris.
All of the bills advanced by Banking Commissioner Sally Cline are advancing nicely to passage. There has been no legislative opposition to any of the Commissioner’s six proposals, and all of these bills are in form acceptable to banks. By Saturday night, each one of these bills should complete its legislative journey.
HCR 76, the House Study Resolution relating to overdraft charges, insufficient fund fees and funds availability, remains with the House Rules Committee at this time. Its fate remains uncertain.
Following is a List of Bills of Interest to Bankers:
Senate Bills ~ Title ~ Status
SB 128 ~ Relating to Smart 529 college savings plan ~ Introduced 01/13/2010; passed Education 02/05/2010; passed Finance 02/19/2010; passed Senate 02/24/201; to House Education then Finance 02/25/2010
SB 376 ~ Relating to residential mortgage foreclosure data ~ Introduced 01/28/2010; Committee Substitute passed Banking and Insurance 02/17/2010; passed Senate 02/22/2010; passed House Banking & Insurance with amendment 03/05/2010; passed Judiciary 03/08/2010; passed House with title amendment 03/11/2010
SB 381 ~ Regulating ability of Division of Banking employees to obtain certain loans ~ Passed House 03/08/2010; Senate concurred with House amendment 03/09/2010; sent to Governor
SB 385 ~ Requiring banks provide bond to secure certain county deposits ~ Introduced 01/28/2010; passed with title amendment Banking and Insurance 02/03/2010; passed with title amendment Government Organization 02/17/2010; passed Senate with title amendment 02/22/2010; to House Banking & Insurance then Judiciary
SB 387 ~ Providing certain mortgage loan originators be licensed or registered ~ Passed House with title amendment 03/08/2010; Senate concurred 03/09/2010; sent to Governor
SB 633 ~ Depositing public funds into certain federally insured accounts ~ Introduced 02/22/2010; passed Banking & Insurance 02/24/2010; passed Finance with title amendment 03/02/2010; passed Senate with amended title 03/03/2010; On third reading House calendar 03/12/2010
House Bills ~ Title ~ Status
HB 4038 ~ Imposing a statutory lien on fire insurance proceeds in the event of a total loss to real property ~ Passed Senate Judiciary 03/09/2010; passed Senate 03/11/2010; to Governor
HB 4285 ~ Relating to the licensing of residential mortgage brokers, lenders and loan originators by the Division of Banking ~ On third reading 03/12/2010
HB 4291 ~ Eliminating duplicitous criminal background investigations with both the West Virginia State Police and the Federal Bureau of Investigation ~ Passed Senate Judiciary 03/05/2010; passed Senate 03/09/2010; to Governor
HB 4308 ~ Relating to fraudulent, deceptive or misleading representations by debt collectors ~ Introduced 02/02/2010; to Judiciary DEAD
HB 4382 ~ Providing for forfeiture of property used in various crimes and the disposition of such property ~ Introduced 02/05/2010; Committee Substitute passed Judiciary 03/01/2010; passed House with amendment and title amendment 03/03/2010; to Senate Judiciary then Finance
HB 4630 ~ Relating to refunding of appraisal fees ~ On third reading 03/12/2010
HCR 76 ~ Requesting a study on the issues related to fees and charges for overdrafts of checking and depository accounts ~ Originate in House Banking & Insurance 02/25/2010; to House Rules