LEGISLATIVE UPDATE

TO: CEOs, Presidents & Legislative Contacts

FROM: Charles M. Miller, SVP / Director of Legislation & Regulation

DATE: March 6, 2009

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It was a busy week at the Capitol for the Arkansas Bankers Association. I spent a lot of time in committee hearings and lobbying members as the bills we are actively working to pass made significant progress.

HB 1392 addressed lien priority for proposed improvement districts. Now that the bill has been amended it balances the interests of banks with existing purchase money liens and banks that will eventually hold the bonds. Today Rep. Tim Summers, R-Bentonville presented his bill in the House Committee on City, County and Local Affairs and received a do-pass recommendation.

Several weeks ago Rep. Steve Harrelson, D-Texarkana introduced House Bill 1544 and it has taken that long to digest this 80 page bill. It is the Uniform Limited Cooperative Association Act and Arkansas is one of many states where the Commissioners on Uniform Laws have had their legislation introduced this year. Fortunately, the American Bankers Association (AmBA) pays close attention to these proposals as they are in the drafting stages. HB 1544 incorporates the changes to the original version which were suggested by the AmBA.

HB 1607, which is a technical correction to a credit card processing bill from the 2007 Session, is now quickly moving through the process. On Wednesday the bill came out of committee and it passed the full House on Thursday.

HB 1867 was introduced this week by Rep. John Edwards, D-Little Rock. This bill is in response to a lawsuit in which the courts ruled against the lender in a case where a forged document was used to release a legitimate lien and have a clean duplicate title issued, causing the original lien holder to forfeit their security interest in the vehicle. The House Public Transportation Committee should take up HB 1867 early next week.