{"id":944,"date":"2017-03-03T16:00:18","date_gmt":"2017-03-03T16:00:18","guid":{"rendered":"https:\/\/albanknews.com\/?p=944"},"modified":"2017-03-03T16:02:37","modified_gmt":"2017-03-03T16:02:37","slug":"hb-263-added-to-special-order-calendar","status":"publish","type":"post","link":"https:\/\/albanknews.com\/?p=944","title":{"rendered":"HB 263 Added to Special Order Calendar"},"content":{"rendered":"<p><strong>MARCH 3, 2017<\/strong> &#8211; The Alabama House of Representatives may vote next Tuesday on <strong>House Bill 263, <\/strong>the legislation introduced earlier this session by <strong>Rep. Ken Johnson (R-Moulton)<\/strong> at the request of the Alabama Bankers Association that clarifies a confusing Department of Revenue tax rule that impacts banks. Thanks to <strong>Rep. Ron Johnson (R-Sylacauga)<\/strong>, the bill was added to next Tuesday\u2019s House Special Order Calendar. It is the 14<sup>th<\/sup> bill on the 15-bill calendar.<\/p>\n<p>As a reminder, the following three points summarize House Bill 263:<\/p>\n<ul>\n<li>Currently, a DOR rule uses a simple, objective approach to determine whether a bank\u2019s <strong><em>receipts<\/em><\/strong>, such as interest income, should be sourced to Alabama (or elsewhere) for income taxation purposes: <u>receipts are sourced to the location of the property (if secured by real estate) or the location of the borrower (if unsecured).<\/u><\/li>\n<\/ul>\n<ul>\n<li>But the same DOR rule also uses a confusing, subjective approach to determine whether a bank\u2019s <strong><em>property<\/em><\/strong><em>, <\/em>such as loans and credit card receivables, should be sourced to Alabama (or elsewhere) for income taxation purposes: <u>sourcing is based on where the \u201cpreponderance\u201d of five \u201csubstantive contacts\u201d \u2013 solicitation, investigation, negotiation, approval, and administration \u2013 occurred.<\/u><\/li>\n<\/ul>\n<ul>\n<li><strong><em>House Bill 263<\/em><\/strong> clarifies this process by requiring DOR to use the <strong><em>receipts<\/em><\/strong> sourcing method \u2013 <u>where sourcing is based only on the location of either the property or the borrower<\/u> \u2013 throughout the administrative rule, including for any sourcing related to loans and credit card receivables. This approach minimizes, if not eliminates, disputes between banks and DOR over how bank receipts and property should be sourced for taxation purposes.<\/li>\n<\/ul>\n<p><strong><em><u>CONTACT YOUR REPRESENTATIVES OVER THE WEEKEND AND ASK THEM TO SUPPORT HOUSE BILL 263!<\/u><\/em><\/strong> If the House does not vote on the bill next Tuesday, the association will continue to work to have the bill added to a future Special Order Calendar. As a result, now is the perfect time to make sure your elected official knows that the state\u2019s banking industry supports this legislation!<\/p>\n<p>Need contact information for House members? It\u2019s available here: <a href=\"http:\/\/www.legislature.state.al.us\/aliswww\/ISD\/House\/ALRepresentatives.aspx\">by clicking here<\/a><\/p>\n<p>Other bills that might impact the state\u2019s banking industry include the following<\/p>\n<p><strong>House Bill 70 <\/strong>by <strong>Rep. Bill Poole (R-Tuscaloosa)<\/strong>: With a few notable exceptions, this bill lowers the age of majority in Alabama from 19 years to 18 years. The bill wouldn\u2019t change anything related to the criminal code\u2019s \u201cyouthful offender\u201d provisions, and it doesn\u2019t impact the age that one can legally purchase alcohol or tobacco products. But changing the age of majority likely also changes the age at which a person can, for example, enter into a loan agreement with a financial institution. The bill has been passed by the full House and now awaits approval by a Senate committee.<\/p>\n<p><strong>House Bill 138 <\/strong>by <strong>Rep. Juandalynn Givan (D-Birmingham) <\/strong>and <strong>Senate Bill 110 <\/strong>by <strong>Sen. Cam Ward (R-Alabaster): <\/strong>These bills would adopt the Revised Uniform Fiduciary Access to Digital Assets Act, a national uniform law that extends the traditional power of a fiduciary to manage tangible property, including management of a person\u2019s digital assets like computer files, web domains, and virtual currency (but not necessarily email, text messages, or social media). These bills were also introduced in 2016, and are a product of the Alabama Law Institute. In the last three years, this legislation, known as UFADAA, has been enacted in 22 states, including Tennessee and Florida. In 2017, it has already been introduced in a total of 17 states, including Alabama. The Senate bill is in position to be considered by the full Senate. The House bill has been passed by the full House and now awaits approval by a Senate committee.<\/p>\n<p><strong>House Bill 159<\/strong> by <strong>Rep. Patricia Todd (D-Birmingham): <\/strong>This bill doubles the fee required to record mortgages, deeds of trust, and other instruments of like character. Currently, the recording fee is 15 cents for every $100 of indebtedness, with 1\/3 of the revenue retained by the county and 2\/3 of the revenue distributed to the State General Fund. Under this bill, the recording fee would be 30 cents for every $100 of indebtedness, with 19 percent retained by the county, 35 percent allocated to the State General Fund, 23 percent to the Alabama Housing Trust Fund, and 23 percent to the Alabama Homebuyers Initiative. This is the second year in a row that this legislation has been introduced. Last year, the association joined the Realtors Association and the Homebuilders Association in opposing the bill. The positions of each of these groups, including ABA, remain unchanged.<\/p>\n<p><strong>House Bill 314 <\/strong>by <strong>Rep. Ken Johnson (R-Moulton)<\/strong> and <strong>Senate Bill 249 <\/strong>by <strong>Sen. Gerald Dial (R-Lineville): <\/strong>Under current law, lenders licensed under the Alabama Small Loan Act can loan up to $1,000 to a single customer at a maximum monthly interest rate of $20 and for a maximum loan term of 12 months. This bill would allow these same lenders to loan up to $1,500 to a single customer, would set the maximum monthly interest rate at $26, and would set a minimum loan term of 3 months. The Financial Services Committee held a lengthy public hearing on the House bill earlier this week. A vote in committee is expected next week.<\/p>\n<p><strong>House Bill 321<\/strong> by <strong>Rep. Bob Fincher (R-Woodland)<\/strong>: This bill proposes a constitutional amendment that, if ratified, would cap the maximum interest rate on certain consumer loans, lines of credit, and other financial products at 36 percent per year. The association, along with trade groups representing every other facet of the financial services industry, is opposed to this constitutional amendment. Even though the underlying purpose behind the bill is to limit the interest rate on payday loan transactions, the amendment would apply very broadly. What\u2019s worse, if ratified, the interest rate cap would be enshrined in the constitution, making it nearly impossible to change should future economic conditions make it unfeasible to comply with the amendment. The association will monitor this legislation\u2019s progress, and we have already requested that the Campaign, Constitutions and Elections Committee hold a Public Hearing on the bill should they decide to consider its approval.<\/p>\n<p><strong>House Bill 355<\/strong> by <strong>Rep. Merika Coleman (D-Birmingham)<\/strong>: This bill allows banks and credit unions in Alabama to establish \u201cPrize Linked Savings Accounts,\u201d or PLSAs. Banks and credit unions that choose to establish PLSAs can create a system that encourages customers to save money in exchange for a chance to receive a reward. PLSAs are now available in nearly half of the states in the country.<\/p>\n<p><strong>Senate Bill 67<\/strong> by <strong>Sen. Linda Coleman-Madison (D-Birmingam): <\/strong>This bill would adopt a process known as \u201cMandatory Unitary Combined Reporting\u201d for state income tax purposes. Though the legislation generally deals with corporate income taxpayers, banks that pay the Financial Institution Excise Tax should also be concerned by this legislation because it gives the Department of Revenue very broad discretion to combine a financial institution \u2013 even one not doing business in Alabama \u2013 with one or more Alabama corporate income taxpayers; thus the \u201cunitary\u201d nature of the process. This bill has been introduced in each of the last few regular sessions, and the Alabama Bankers Association plans to join nearly every other trade association representing business interests in opposing its passage. The positions of these groups, including ABA, remain unchanged.<\/p>\n<p><strong>Senate Bill 91<\/strong> by <strong>Sen. Arthur Orr (R-Decatur)<\/strong>: Known as the Alabama Protection and Privacy Act of 2017, this bill would provide for the protection of sensitive personally identifying information and notice to individuals whose personal information has been breached. Alabama is one of very few states without some type of data breach notification law, and this legislation is part of the Attorney General\u2019s Office 2017 legislative package. Because they must comply with similar provisions of federal law, including the Gramm-Leach-Bliley Act, financial institutions are exempt from the requirements of this bill. This bill has already been favorably reported by the Senate Judiciary Committee, and is now in position to be voted on by the full Senate.<\/p>\n<p><strong>Senate Bill 261 <\/strong>by <strong>Sen. Tom Whatley (R-Auburn)<\/strong>: This bill would provide for the regulation of consumer lawsuit lenders and consumer lawsuit lending agreements. Known as the \u201cConsumer Lawsuit Lending Act,\u201d the bill would require lenders to obtain a license from the State Banking Department and would make consumer lawsuit lending agreements subject to certain provisions of the state\u2019s Mini Code. The bill caps the finance charge of a consumer lawsuit lending agreement at 10 percent annually.<\/p>\n<p>As of the end of the eighth legislative day, a total of 356 bills have been introduced in the House of Representatives and a total of 270 bills have been introduced in the Senate. Including bills and joint resolutions, a total of 41 measures have been enacted into law.<\/p>\n<p>The Legislature has met for eight legislative days. The 2017 regular session can last for no more than 30 legislative days and must conclude on or before May 22.<\/p>\n<p>The House and Senate will convene the ninth legislative day next Tuesday at 1 p.m. and 2 p.m. respectively. Tentatively, the House and Senate are scheduled to meet for three legislative days next week and three legislative days the following week, followed by a two-week spring break.<\/p>\n<p><em>Questions or comments? Email<a href=\"mailto:jisbell@alabamabankers.com\"> Jason Isbell<\/a>, ABA&#8217;s VP of Legal and Governmental Affairs.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>MARCH 3, 2017 &#8211; The Alabama House of Representatives may vote next Tuesday on House Bill 263, the legislation introduced earlier this session by Rep. Ken Johnson (R-Moulton) at the request of the Alabama Bankers Association that clarifies a confusing Department of Revenue tax rule that impacts banks. Thanks to Rep. Ron Johnson (R-Sylacauga), the bill was added to next Tuesday\u2019s House Special Order Calendar. It is the 14th bill on the 15-bill calendar. As a reminder, the following three points summarize House Bill 263: Currently, a DOR rule uses a simple, objective approach to determine whether a bank\u2019s receipts, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":431,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[19,26,3,23],"tags":[],"class_list":["post-944","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-breaking","category-capitol-notes","category-politics","category-publications","has_thumb"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/albanknews.com\/wp-content\/uploads\/2014\/11\/capitol_graphic-e1461688373563.png?fit=350%2C383&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p4Y3P2-fe","jetpack_sharing_enabled":true,"jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/albanknews.com\/index.php?rest_route=\/wp\/v2\/posts\/944","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/albanknews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/albanknews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/albanknews.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/albanknews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=944"}],"version-history":[{"count":2,"href":"https:\/\/albanknews.com\/index.php?rest_route=\/wp\/v2\/posts\/944\/revisions"}],"predecessor-version":[{"id":946,"href":"https:\/\/albanknews.com\/index.php?rest_route=\/wp\/v2\/posts\/944\/revisions\/946"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/albanknews.com\/index.php?rest_route=\/wp\/v2\/media\/431"}],"wp:attachment":[{"href":"https:\/\/albanknews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=944"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/albanknews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=944"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/albanknews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=944"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}