February 25, 2009
House Appropriations Votes Out Budget Proposal
Today, Lawmakers worked furiously in both Chambers. The House Appropriations Committee voted out HB 118, the FY 2009 Amended Budget proposal. More on that meeting is noted below.
The Senate did not fully conclude its work on the Floor until approximately 2:45, pushing many Committees to cancel or reschedule their meetings for the afternoon.
Today was "Gwinnett County Day" at the Capitol. It has been one of the fastest growing counties in Georgia.
Floor News
Senate
Nine bills were on the Senate Floor today. Here are some highlights of the action taken:
- SB 59, brought by Sen. Staton (R-Macon), would prohibit a person from using computers to relay or re-transmit commercial e-mail messages with the intent to deceive or mislead recipients or an e-mail service provider under certain circumstances.
- SB 84, the Governor's initiative addressing local school boards, was also on the Floor today. Sen. Heath (R-Bremen) has carried this initiative which revises provisions relating to eligibility for election as a local board of education member; limit the sizes of local school boards; prohibit certain conflicts of interest of board members; and etc. It would also require local school board members to adhere to a Code of Ethics. Several Floor Amendments were offered on this Bill.
- SB 104 passed by a vote of 47 to zero. This Bill came to the Senate Floor as a Committee Substitute, amending current law concerning Cosmetic Laser Practitioners.
- SB 97 passed out of the Senate handily by a vote of 47 to zero. It changes the State Merit System of Personnel Administration to the "State Personnel Administration."
- SB 98 passed by a vote of 49 to zero, amending current Retirement Code references from the State Merit of Personnel Administration to State Personnel Administration.
- SB 95 was presented by Sen. Hudgens (R-Hull) to establish an unfair trade practice for insurers who fail to consider "suitability" in selling annuities to persons ages 65 years and older. Sen. Hudgens' placed a Floor Amendment on the Bill, which was adopted, that essentially references what is current regulation practice at the Department of Insurance now regarding annuities. The measure passed, with the Floor Amendment by a vote of 48 to zero.
- Seatbelts were up for discussion as a change was presented by Sen. Hawkins (R-Gainesville). SB 23, which adds language stating that the failure to use a seatbelt may be considered as evidence of causation in negligence actions. An Amendment was offered adding language "energy absorption system" to the requirement which was adopted by a vote of 34 to 17. Sen. Harp (R-Midland) argued that the Floor Amendment essentially took the Bill back to its original form and not as it passed out of the Senate Judiciary Committee which was what the Senate should be voting on. Sen. Wiles (R-Marietta) provided some additional background on "seatbelts" and how the original law was passed in the early 1990s under former Speaker Tom Murphy, who essentially stated that IF such a law were passed to require seatbelts then the lack of not wearing one could not be used as evidence in such actions. Sen. Harp asked for a "6.4 motion" which would postpone action on the legislation indefinitely; his motion was defeated by a vote of 16 to 25. The Bill finally cleared, with Sen. Hawkins' amendment, by a vote of 39 to 12.
- SB 133, the "Health Share Volunteers in Medicine Act" change, to address sovereign immunity issues for those individuals providing services in safety net clinics passed with a Floor Amendment by a vote of 49 to 1. It adds registered and licensed practical nurses employed by the safety net clinics under certain conditions and physicians or medical residents who are on staff at a local or regional hospital providing services at these safety net clinics (during extended hours or on weekends pursuant to a contract).
- SB 123, another Bill by Sen. Hawkins (R-Gainesville), also passed out of the Senate by a vote of 51 to zero. This legislation would establish regulation of pharmacy benefit managers and has been pushed by the Georgia Pharmacy Association.
New Legislation
SB 209 – Sen. Hawkins (R-Gainesville) offered the following amendment to Article 5 of Chapter 4 of Title 36, relating to prescription drugs. This change would prohibit a pharmacist from substituting drugs prescribed to inhibit or prevent immune system activity as part of immunosuppressive therapy for a patient who has received an organ or tissue transplant. If the pharmacist receives consent from the prescribing physician, then he or she may substitute the generic version.
SB 210 – Sen. Johnson (R-Savannah) introduced changes to O.C.G.A. § 20-2-306 to include home-schooled students among those students eligible to participate in the Student Honors Program.
SB 211 – Sen. Johnson (R-Savannah) offered changes in Chapter 5 of Title 50 regarding the procedures for State purchasing to exempt certain purchases (routine office supplies used for the daily operation of an office which are in the ordinary course of business, commonly restocked every one to twelve months (pens, pencils, printer toner, staples, calendars, etc.)) from having to go through the Department of Administrative Services.
SB 212 – Sen. Stoner (D-Smyrna) authored an amendment to Article 3 of Chapter 7 of Title 34, relating to the employer's liability for injuries to railroad employees. A new Code Section is added which applies to motor common or contract carriers transporting railroad employees within this State, requiring drivers to hold a commercial driver's license, pass drug and alcohol tests, keep logs, and maintain liability insurance coverage of $1.5 million per vehicle.
SB 213 – Sen. Wiles (R-Marietta) offered changes to Chapter 1 of Title 51, relating to general provisions relative to torts and specifying manufacturer liability. The following change was made to O.C.G.A. § 51-1-11 adding two new subsections:
(d) Irrespective of privity, a manufacturer shall not be held liable for the manufacture of a product alleged to be defective based on theories of market share or enterprise, or other theories of industry-wide liability.
(e) Irrespective of privity, a manufacturer of a product alleged to be defective shall not be held liable for a public nuisance based on theories of market share or enterprise, or other theories of industry-wide liability.
SR 392 – Sen. Johnson (R-Savannah) authored a Constitutional Amendment proposal to provide that recreation of a previously existing county which was merged into another county may be accomplished by law, subject to the approval of the voters therein and subject to certain other conditions. This amendment would be made to Article IX, Section I at Paragraph II if passed and ratified by the voters.
SR 399 – Sen. Thomas (R-Dalton) authored this Resolution to look at issues impacting Georgia's nonprofit organizations, including philanthropic support and declines in revenues. This Resolution would create a six-member Senate Study Committee on Georgia Nonprofit Organizations which would conduct its work before December 31, 2009.
SR 402 – Sen. Shafer (R-Duluth) authored this Study Committee proposal to create a Joint Telecommunications Comprehensive Reform Study Committee. It would be composed of 27 members and would be dissolved on December 15, 2009.
HB 555 – Rep. Casas (R-Lilburn) offered a revision to O.C.G.A. § 20-2-2068.2, permitting a local board of education with surplus facilities or property intended for disposal or otherwise unused the ability to make such available to a local charter school on the same basis as it would make such facility or property available to other public schools under the control and management of the local board of education.
HB 560 – Rep. Kaiser (D-Atlanta) authored an amendment in O.C.G.A. § 36-91-20(g) to provide that entities submitting a bid for certain contracts must disclose whether they will maintain health insurance for their employees during the project for which the bid was submitted.
HB 565 – Rep. Howard (D-Augusta) authored this Bill creating the six-member "Commission for the Blind and the Visually Impaired" in Chapter 11 of Title 30 with the purpose of authorizing a coordinated program of services throughout Georgia which would be made available to individuals who are blind or visually impaired. The proposal outlines how this Commission is appointed (with two members each from the Governor, Lt. Governor, and Speaker of the House). It further outlines the Commission's duties, powers and responsibilities, including the provision of independent living services for blind or visually impaired persons, including services for older individuals. The Commission can contract with private entities which provide services for the blind or visually impaired to provide pre-vocational and other training (such as Braille instruction, etc.).
HB 566 – Rep. Manning (R-Marietta) authored enactment of the "Blind Persons' Braille Literacy Rights and Education Act" in Article 6 of Chapter 2 of Title 20. It would require an evaluation of a blind or visually impaired child to make a determination of that child's needs for Braille instruction and require such instruction in the individualized education program of a blind or visually impaired student. Publishers of textbooks for Braille instructional materials are also provided some requirements. The Professional Standards Commission, on and after July 1, 2013, is required to issue or renew a license to teachers to teach academic instruction to blind or visually impaired children unless that educator has, as a part of his or her standard renewal requirements: 1) completed a course in the teaching of Braille approved by the Commission; 2) demonstrated competence in reading and writing Braille by holding a nationally recognized certificate in Braille approved by the Commission; or 3) passed a test in Braille approved by the Commission.
HB 568 – Rep. Parsons (R-Marietta) proposed altering how the Public Service Commission Members are elected. In O.C.G.A. § 46-2-1, his Bill would propose that members in office on January 1, 2010 or appointed or elected after that time would be able to live anywhere in the State. The Commission would no longer be divided into five Public Service Commission Districts. The Chair of this Commission would be selected by a simple majority of its members in O.C.G.A. § 46-2-5.
HB 573 – Rep. Marin (D-Duluth) introduced amendments to O.C.G.A. §16-11-127.1 to provide a punishment for those persons who deliberately and with intention aforethought possess a weapon within school safety zones, at school functions or on school property. Violations would be guilty of a felony upon conviction and punished by a fine of not more than $10,000, by imprisonment for not less than two nor more than ten years; or both. Children who are found guilty under these conditions would be subject to the law in O.C.G.A. § 15-11-63.
HB 574 – Rep. Marin (D-Duluth) offered a change to O.C.G.A. § 16-5-94 to permit a protective order in restraining and protective orders relating to stalking cases to include the protection of animals at the other party's residence, yard or premises.
HB 576 – Rep. Oliver (D-Decatur) introduced amendments to Article 16, Chapter 2 of Title 20 to revise provisions relating to the mandatory attendance of elementary and secondary schools. Current law requires children to attend a public school, private school, or home school program between their sixth and sixteenth birthdays, except if that child has successfully completed all requirements for a high school diploma. In this Bill, "any parent, guardian, or other person having control or charge of any child or children subject to mandatory attendance pursuant to this subsection who becomes a new resident of a local school system in this state shall within 30 days of such new residency enroll such child or children in a public school, a private school, or a home study program that meets the requirements for a public school, private school, or a home study program. Failure to enroll such child or children within 30 days shall constitute a violation of this Code section." There are requirements of local school system officials to make and file reports to appropriate enforcement agencies when any parent, guardian, or other person having control or charge of a child or children subject to this mandatory attendance if there have been an accumulation of 25 days of unexcused absences, or the child or children are not regularly attending school, or the parent, guardian, or other person has knowingly violated this Code section. The proposal requires local school systems to cooperate in any investigation and prosecution of mandatory attendance violations. It does note that no case shall constitute a violation unless the child has accumulated five or more days of unexcused absences. Notice requirements are also outlined in this Bill. Violations would be considered misdemeanors.
HB 578 – Rep. Stephens (R-Savannah) offered amendments to Chapter 5 of Title 12 to alter provisions relating to permits to withdraw, obtain, or use ground water. It also amends permit requirements for the operation of public water systems and performance bonds. In O.C.G.A. § 12-5-96, it adds a new subsection:
Subject to review and approval by the director, any holder of a permit under this Code section who can certify a reduction in water consumed after January 1, 2009, as a result of the initial installation and use of meters on a ground-water system permitted prior to the effective date of this subsection shall be eligible to transfer 50 percent of the saved ground-water capacity to another such permit held by the same permittee, provided that 50 percent of the saved ground-water capacity shall be returned to the state. If approved, such transferable permit capacity shall be transferred only to the same permit holder within the same county or in an adjacent county and shall not be transferred to another ownership entity, the director shall adjust the permits accordingly, and the reduction in the existing permit shall be a cap on that permit.
HB 579 – Rep. Maxwell (R-Dallas) introduced a change relating to the licensure requirements of residential and general contractors in O.C.G.A. § 43-41-8(a)(5). It would allow any person who, for at least ten consecutive years prior to submitting an application, is affiliated, by employment or ownership, with a business organization having been incorporated in Georgia continuously for at least 20 years to be licensed.
HB 580 – Rep. Allison (R-Blairsville) offered amendments in Title 9 adding a new Code Section at O.C.G.A. § 9-10-35 provide a "uniform venue provision in certain proceedings involving the constitutionality of certain provisions of law." In (b), it would permit venue in any civil action involving a challenge to the constitutionality of State statute, rule, regulation, or action, with the exception of habeas corpus actions, against a public officer in his or her official capacity, the county of residence of the defendant shall be the county in which is found the primary office of the governmental entity of which the defendant is an officer.
HB 582 – Rep. Willard (R-Sandy Springs) offered revisions to Chapter 6 of Title 16 to mandate a minimum age for the prosecution of the offenses of prostitution and masturbation for hire. It adds in current law that the individual who is 18 years of age or older would commit such offenses.
HB 585 – Rep. Rogers (R-Gainesville) proposed for the utilization of digital-based cigarette stamp processes in O.C.G.A. § 48-11-3.1 in an effort to ensure against forgery and tax evasion. This Bill mirrors the Senate version, SB 205, of this "Black Market Cigarette Act" offered by Sen. Chapman (R-Brunswick).
HR 471 – Rep. Smith (R-Newnan) proposed this Resolution to request that Congress oppose legislative efforts to expand the reach and scope of the Clean Water Act.
HR 477 – Rep. Richardson (R-Hiram) offered this Resolution recognizing the vital role that the manufacturing industry plays in the American economy and requesting that the United States Congress support Legislative efforts to invest in the manufacturing sector, including the domestic auto industry.
Committee News
House Ways and Means Committee
Income Tax Subcommittee
The Subcommittee, chaired by Rep. Peake (R-Macon), heard a couple of hours worth of testimony on HB 481 and HB 482. Both Bills have been authored by Rep. Graves (R-Ranger). HB 481 creates the Jobs, Opportunity and Business Success Act of 2009 and HB 482 phases in a repeal of the inventory tax currently imposed.
Among the individuals who provided testimony included Commissioner of Labor Michael Thurmond. Commissioner Thurmond spoke to the Subcommittee about the creation of jobs and the workers' unemployment compensation premiums paid by employers and the proposed tax credit in HB 481. He indicated that Unemployment Trust Fund had a current balance of over $700 million and that the current payment minimum is $330 per week. An agreement has been signed with Governor Perdue to increase this benefit to $355 per week. Workers who become unemployed can receive these benefits for up to 26 weeks; under the federal plan, an additional 20 weeks could be provided which would come solely from federal funds.
Only six states currently have an "inventory tax."
A number of business representatives spoke to the Committee favoring both proposals including members from the Georgia Retail Association, National Federated of Independent Businesses, and Georgia Chamber of Commerce. Some of the small businesses spoke passionately about their need for assistance in achieving savings and getting business more competitive with neighboring states. Georgia Public Policy Foundation also spoke in favor of the proposals. Sarah Beth Gehl, representing Georgia Budget and Policy Institute, raised concerns with what the State would do with the lost revenue due to the proposed elimination of corporate income tax.
Public Finance Subcommittee
The Subcommittee held a lengthy public hearing today on HB 39, authored by Rep. Stephens (R-Savannah). HB 39 seeks to increase the tax on cigarettes by $1 and increase the tax on smokeless tobacco from 10 percent to 25 percent. Rep. Stephens cited that these increases would help curb the use of tobacco in hopes of preventing the diseases that tobacco causes.
Rep. Sellier (R-Fort Valley) told the Subcommittee and members of the audience about his personal story of the effects of tobacco use. After years of smoking he required extensive neck surgery, as well as the removal of part of his left lung. Rep. Sellier added that if he had not had insurance, his medical care would have cost the State in excess of $450,000. Rep. Hill (R-Kingsland) also told of her personal story of the effects of tobacco products, while not a smoker herself, her husband was and as a result passed away of lung cancer. Now her two sons use smokeless tobacco products and Rep. Hill urges for any deterrence that can be offered.
Numerous doctors spoke about seeing far too many patients die prematurely because of preventable diseases and the cost to the State for their treatment. Currently, 20 percent of Georgians use tobacco products.
Jared Thomas, Americans for Prosperity, spoke against HB 39 citing that "sin" taxes are often regressive. If tobacco sales decrease in Georgia, or people cross state lines in order to purchases cigarettes for a cheaper price, then Georgia really sees no gain from the measure. Mr. Thomas also stated that these taxes often hit the lower classes the hardest. Rusty Kidd, a lobbyist for a major tobacco manufacturer, basically opposed HB 39 citing that many other "ills" could be taxed as well such products that cause obesity.
House Appropriations Committee
The Committee met briefly this morning to pass out the Amended FY 2009 Budget, HB 118. Chairman Harbin (R-Evans) pointed out that this Bill remains much like the Budget that was originally introduced by Governor Perdue. State agencies have been tightening their belts for the majority of Fiscal Year '09, so the Committee did not see that additional furloughs would be needed for the remainder of the year. Chairman Harbin did acknowledge that in most cases state fiscal recoveries lag behind the national recovery.
The Stimulus Plan will provide Georgia with a little relief by increasing the matching funds for Medicaid and supplying $150 million in education funding. The Property Tax Relief Grant was also restored in the FY 2009 Amended Budget. Chairman Harbin also stated that funding was also increased in some areas, where the Committee deemed it important and necessary. Mental Health Community Services Boards will receive $2.5 million and food safety positions have been added in the wake of the salmonella outbreak.
House Rules Committee
The House Rules Committee set the following calendar for the Twenty-Fourth Legislative Day. The House convenes at 9:00 am.
- HB 169, offered by Rep. Carter (R-Pooler), requires the Department of Natural Resources to send notice to property owners when a new or revised flood plain affects the owners' property.
- SB 31, authored by Sen. Balfour (R-Snellville), would enact the Georgia Nuclear Energy Financing Act.
- HB 118, the Amended FY 2009 Budget was placed on the Supplemental Rules Calendar for tomorrow.
House Insurance Committee
Life and Health Subcommittee
More than an hour was devoted today to hear the anatomic pathology services Bill by Rep. Hembree (R-Winston) who also chairs this Subcommittee. HB 403 ended in a tie vote of 4 to 4 at the end of the hearing. Thus, the proposal will remain in the Subcommittee. Last year, a Bill would have permitted pathologists the ability to direct bill for their services; this Bill was described as an "anti-markup" initiative. It was explained that twenty states have similar legislation on their books to what has been proposed in HB 403.
Please contact Stanley S. Jones, Jr., Helen Sloat or April Morgan at 404.322.6000 for further information on legislative happenings. Gold Dome Reports will be available daily during the Session at www.nelsonmullins.com.
The articles published in this newsletter are intended only to provide general information on the subjects covered. The contents should not be construed as legal advice or a legal opinion. Readers should consult with legal counsel to obtain specific legal advice based on particular situations.