ATLANTA (AP) -- Georgia's Senate is holding off on voting on a bill that would establish statewide guidelines for foreclosure registries and would cap the fees cities and counties charge owners of foreclosed properties.
The substitute to House Bill 110 was voted out of the Banking and Finance Committee earlier this week, sending the legislation straight to the floor. The bill was sent back to the banking committee Wednesday without objection.
According to the proposal, the fee to register a property would not exceed $175, and the penalties for failing to register properties would be limited to $500 a month and $2,000 total. If approved, the law would take effect July 1.
Banking Committee Chairman Sen. Jack Murphy said such a law is needed to prevent cities and counties from treating fees associated with foreclosures and vacant properties as a cash cow. The original legislation was sponsored by state Rep. Mike Jacobs, a Republican lawmaker whose district includes DeKalb County.
On Wednesday, Murphy said it was a bit too early in the session to bring the bill to a full vote.
"Some of the caucus members felt like they hadn't had a chance to read the bill and understand the legislation," he said. "That might've really damaged the bill. Let's go ahead and finish our tweaks and get a finished product."
The bill is a carryover from last year, when it stalled as lobbyists for cities and counties raised concerns that the bill could have unintended consequences. Clint Mueller, a spokesman for the Association of County Commissioners of Georgia, said the changes do address some of the group's concerns from last year, but added that there are still some problems with the legislation.
"It still narrowly defines 'foreclosure registry,' and it preempts anything other than that," Mueller said. "We're also concerned that the only properties that would have to be registered are with buildings on the lot or ones hooked up to water and sewer. We've got a lot of partially-built subdivisions that have become illegal dumping grounds, and this bill wouldn't cover those types of properties. We think they ought to be covered."
Amy Henderson, a spokeswoman with the Georgia Municipal Association — which opposed the legislation last year — also expressed concern that the law would preempt existing local ordinances, and sets a cap which may not reflect the actual cost of what it would take to run the registry. She said the group is looking at the new language.
The original legislation was sponsored by state Rep. Mike Jacobs, a Republican lawmaker whose district includes DeKalb County, which took in more than $550,000 in foreclosure fees in less than a year.
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Online:
HB110: http://www.legis.ga.gov
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