Report for April 1, 2010
The Senate worked late this evening, passing HB 1023, the Jobs, Opportunity, and Business Success Act of 2010, with language that contained the "angel tax credits" which is a "jobs generator" and removed the corporate net worth tax.
When HB 1023 came off the floor it had stripped out the language that had come from the Senate Finance Committee, which added on the language of HB 307 (The Hospital Provider Fee Bill).
The Bill that would address the State's budget crisis- HB 307, finally made it to the Floor around 7 pm, passing essentially across party lines. Hospitals will pay a provider fee, more is included in the report below.
Floor News
House
Congressman John Barrow (D-GA-12) was welcomed on the House Floor today, before the House took up its only Bill for the day.
SB 206 was presented on the Floor by Rep. Ben Harbin (R-Evans). Rep. Harbin cited that the Bill had been thoroughly vetted by the House Appropriations Committee. This Bill seeks to capture exactly how much the State is spending on tax breaks. SB 206 would find out the impact of all of the tax exemptions given in Georgia and their fiscal impact on the State. With no questions, SB 206 passed 158 to zero.
SB 374 was postponed until the next Legislative day, as the House recessed to find out what their colleagues in the Senate were going to do on HB 1023 and HB 307.
Senate
- HB 984 - prohibiting the levy or collection of local income taxes, passed 41 to five.
- HB 908 – Quality Basic Education Act; expenditures, class size, additional days, salary; temporarily suspend, passed with one amendment 33 to 11.
- HB 916 - Retirement ages; nullify application for retirement; provisions, passed 42 to zero.
- HB 1106 - Animal protection; shelters scan for microchips prior to euthanasia; provisions, passed 49 to zero.
- HB 1023 - Jobs, Opportunity, and Business Success Act of 2010; enact, passed 33 to 13.
After two breaks were taken to round up the requisite votes, HB 307 passed with three amendments. This Bill is the negotiated agreement with the states nonprofit hospitals which implements a three-year provider fee of 1.45 percent on net patient revenues. This money will be placed into the Indigent Care Trust Fund to be matched with federal funds. The money will bring more than $800 million and help prevent provider rate cuts to physicians, dentists and others.
Three amendments were added which include: 1) a correction for the percentage rate differentials originally offered of 1.45 and 1.38 as they feared CMS would not approve the waiver once submitted with two percentages (this permits flexibility across the class); 2) amends the indigent and charity care language -giving credit against CON indigent care commitments; and 3) an amendment which eliminates the state insurance premium tax on health policies once State reserves reach $500 million.
Democrats strongly opposed the proposal citing that this was not the right policy for Georgia. Sen. Robert Brown (D-Macon) argued that this measure was clearly a tax; it was political; and it should be called a tax.
HB 307 passed 31 to 15 with amendments.
There were many Senate Members who were excused from the vote.
Committee News
Senate Judiciary
HB 1085 was presented in Committee today by Rep. Katie Dempsey (R-Rome). HB 1085 is a compliance bill which would require that when children are placed into foster care, siblings are to be kept together when possible and that the child stays in the same educational setting when possible. Furthermore, HB 1085 requires that transition planning take place with youths who are will be aging out of the program. By complying with these criteria, Georgia will be eligible for additional federal funding. Receiving no questions, HB 1085 received a "do pass" recommendation from the Committee. Sen. Don Thomas (R-Dalton) will carry this Bill in the Senate.
HB 1322, also known as the Meredith Emerson Act, was presented in Committee today by Rep. Jill Chambers (R-Atlanta). HB 1322 seeks to protect victims' families from having crime/death scene photographs released for publication. Hustler magazine is seeking the disclosure of Meredith Emerson's brutal kidnapping, sexual assault, decapitation/murder crime scene photos for publication. This Bill received a unanimous "do pass" from the Committee.
Senate Health and Human Services Committee
After struggling to get a quorum to conduct official business, this Committee passed out the following Bills:
HB 1154, presented by Rep. Sean Jerguson (R-Holly Springs), modifies current law regarding dispensing of the influenza vaccine. It permits an expanded definition for protocol agreements so that nasal spray forms of the vaccine may be administered. It also added language for "informed consent". The Bill now moves to the Senate Rules Committee.
HB 1309, by Rep. Jay Neal (R-LaFayette), adds synthetic marijuana to Georgia's Dangerous Drug List in Title 16. The change outlines the chemicals used for this product, which is sold in incense form in many smoke shops. This drug is not detected in drug test screens. Sen. Lester Jackson (D-Savannah) moved "do pass" and his motion carried.
HB 1021, by Rep. John Lunsford (R-McDonough), addresses current use of "Salvia divinorum A" and also adds that substance to the Dangerous Drug List. It does permit folks to use this in their yards as it is a ground cover. This Bill also passed with a minor amendment.
House Judiciary (Civil) Committee
This Committee met today with a lengthy agenda. One item of major interest was SB 57, the Home Mortgage Practices Reform Act amending Georgia's Fair Lending Act in Title 7. Numerous hearings were held on the proposal and Rep. Mike Jacobs (R-Atlanta) explained the new Substitute to his colleagues. Some of the highlights include:
- A definition for "flipping a subprime loan";
- A new definition for "mortgage broker" so these individuals will be included;
- It bans "negative amortization";
- Prohibits "prepayment fee or penalty" for home equity loans;
- Defines "subprime home loan"; and
- Defines "yield spread premium."
Georgia's current Fair Lending Act covered home loans and high-cost home loans. This Bill brings in subprime home loans. There are safe harbor provisions and prohibitions of balloon payments from being counted towards income verification. The new Bill outlines duties of a mortgage broker, shying away from creating a new agency or fiduciary responsibility.
Deeds under power were required to be filed per legislation passed a couple of years ago. In this Bill it adds some "teeth" to those recordings after a foreclosure sale before a dispossessory action is filed. Some argued that similar teeth should be inserted for times where the property has already been vacated.
A statutory right to cure is created. Notice was proposed to be sent in 30 days before the foreclosure; as written it would have actually been shorter. This issue was cured in one of the fourteen amendments offered.
After lengthy questions and debate, many of the amendments were adopted. One amendment addresses whether a "subprime home loan" is a home loan with an "interest rate exceeding the average prime rate as published by the Board of Governors of the Federal Reserve System for a comparable term as of the date the interest rate is set by 1.5 or more percentage points for loans secured by a first priority lien or by 3.5 or more percentage points for loans secured by a subordinate priority lien." The Bill now moves to the House Rules Committee.
House Rules Committee
The House Rules Committee set the following calendar for Monday, April 12, 2010:
- SB 436 - Retirement; repeal certain obsolete and inoperative provisions.
- SB 455 - State Properties Code; modifying certain provisions; acquiring real property through commission.
- SR 1083 - Public Property; conveyance; 11 counties.
- HR 1499 - Georgia Composite Medical Board; surgery and anesthesia; establish regulations; urge.
- SB 353 - Controlled Substances; Schedule I, II, IV, and V; definition of "dangerous drug"; provisions.
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.