As planned, the Legislature did not meet in session this week. After two busy weeks, this week’s hiatus provided an opportunity to reassess COVID protocols and sanitize the State House. Over the next four weeks, the Legislature will meet for 10 legislative days, followed by another one-week break. No scheduling information has been released for the remainder of the session, which must end by May 17.
Importantly, Senate Bill 181, the Elderly and Vulnerable Adult Financial Protection Act of 2021, which passed the Senate last week, will be on the agenda of the House Financial Services Committee on Feb. 23. The bill will be managed in the House by Rep. Chris Blackshear (R-Phenix City), who chairs the House Financial Services Committee.
Bills of importance to the banking industry include the following:
HB147 by House Financial Services Committee Chairman Chris Blackshear (R-Phenix City) and SB181 by Senate Banking and Insurance Committee Chairman Shay Shelnutt (R-Trussville) is the Elderly and Vulnerable Adult Financial Protection Act of 2021. These bills give financial institutions full discretion to refuse or delay a financial transaction whenever financial abuse of an elderly or vulnerable adult customer is reasonably expected. Introduced last year, these bills garnered unanimous support in both chambers, but were unable to pass into law after the session abruptly ended because of COVID-19. The Senate bill was unanimously approved by the full Senate last week. Both the Senate and House bill are slated to be considered by the House Financial Services Committee on February 23.
HB196 by Rep. Matt Simpson (R-Daphne) and SB35 by Sen. Greg Albritton (R-Atmore) makes technical changes to the Alabama Uniform Trust Decanting Act, a law passed in 2019 that provides a method for reforming or modernizing an irrevocable trust. The Senate bill was unanimously approved by the Senate last week and both the House and Senate bills are expected to be heard by the House Financial Services Committee on February 23.
HB216 by Rep. Craig Lipscomb (R-Gadsden) is the Alabama Consumer Privacy Act, a law giving consumers various rights related to the collection of personal information by businesses. Modeled after a California law, the legislation imposes onerous burdens on businesses of all types, including financial institutions. The association had a meeting with the sponsor earlier this week outlining concerns about the bill, and the sponsor assured us that he did not plan to pursue the legislation.
HB293 by Rep. David Faulkner (R-Mountain Brook) is the Qualified Dispositions in Trust Act, which would authorize the creation of self-settled trusts in Alabama. Drafted by the Alabama Law Institute, this bill could theoretically expand opportunities for financial institutions providing trust-related services. On the other hand, however, this bill could provide debtors with an additional option of shielding assets from creditors. The association is working with the sponsor and the Alabama Law Institute to modify the legislation in a way that satisfies our concerns.
Through six legislative days, representatives and senators have introduced 646 bills – 413 in the House and 233 in the Senate – and 81 resolutions. The regular session can include no more than 30 legislative days and must end on or before May 17.
The House and Senate will return to Montgomery for the seventh legislative day on Feb. 23.
Capitol Notes will be published each week during the regular legislative session and at other times as necessary. Capitol Notes is written by Jason Isbell, an attorney in the Governmental Solutions practice group at Maynard Cooper & Gale, Alabama’s largest law firm. Along with his colleagues at the firm, Jason is a governmental affairs consultant for the association. Jason can be reached at jisbell@maynardcooper.com or at (334) 782-1219.
