Lawmakers began to make headway today with the State's FY 2011 Budget.  The House passed its version of HB 948, the FY 2011 Budget, after the Senate cleared its version of the "fee bill" (HB 1055) and the House later changed the Bill again with HB 307 tacked onto the proposal.  Thus, the revenues generated in HB 1055 are plugged into the Budget proposal prepared by the House.  See more about these actions below.

A new adjournment schedule has now been adopted by both the House and Senate, and Sine Die is now in sight (or at least it is under the current schedule).  Next week, the General Assembly will be in Session on Tuesday and Wednesday.  The following week, they will be in Session on April 27, 2010 and April 29, 2010, which will be Day 40.

Floor News

House

The House cleared the following pieces of legislation on its calendar:

• SB 355 – Rep. Chuck Sims (R-Ambrose) presented this initiative.  A Bill from last year essentially set forth the general priority for the disposition of human remains.  However, last year's legislation left out the DD Form 93 which every soldier must complete regarding who will take care of their remains.  SB 355 designates such. There were no questions on the proposal and the House passed SB 355 with a vote of 169 to zero.
• SB 461- Rep. Wendell Willard (R-Atlanta) presented this proposal.  It addresses estate law and how much an individual may pass along to his or her heirs property which is tax free upon their death.  Under current federal law, this exemption from estate taxation was permitted through December 31, 2009.  However, Congress has not extended such so this permits Georgia to essentially follow the law as it existed on December 31, 2009.  The House passed this proposal with a vote of 170 to zero.

 

The House removed SR 153 from the table and recommitted the proposal to the House Education Committee.  This Resolution is the Constitutional Amendment authorizing the General Assembly to provide by local law for the creation and comprehensive regulation of education improvement districts for the provision of facilities or land for one or more public or special schools.

The House took up HB 1055 once it cleared the Senate only a few minutes earlier.  Rep. Larry O'Neal (R-Bonaire) presented an amendment to the Senate's version of the "Fee Bill" which will impose a gradual repeal of the quarter mill State property tax. It also includes a phase out over the next five years of income tax for seniors over 65 for $35,000.00 passive income earned.  Rep. O'Neal argued that the proposal will provide Georgians some of their money back.  The Bill also includes the provider tax, HB 307, but it stripped out the Senate's language allowing a repeal of the State portion of the insurance premium tax on health insurance policies once the State's reserves reached $500 million.  The provider tax is proposed at 1.45 percent on net patient revenues for a period of three years at which time it will sunset.  Rep. Stacy Abrams (D-Atlanta) appealed the ruling of the chair on the germaneness of the proposal; her motion failed.  The House passed the amendment offered by Rep. O'Neal by a vote of 118 to 49 and then agreed to HB 1055 with a vote of 107 to 63. 

Rep. Ben Harbin (R-Evans) presented the Budget to the House.  This proposal for FY 2011 is HB 948.  Included in the proposal and highlighted for the House included the following:

• Accounting for federal stimulus funds as noted in the State's audits and throughout the document.
• Revised revenue estimates.
• No 3.3 percent additional cut to Public Safety.
• Numerous changes to the judicial funding, including a reduction to personal services.  Changes are also made to the Judicial Council with its inheriting the Georgia Commission on Family Violence.
• No mandated furloughs. Provided funds for Associate District Attorneys.
• No provider rate cuts as originally proposed in Medicaid by the Governor (of 1.98 percent) due to money from HB 307.
• Savings to Medicaid of $11 million by transferring long-term acute care ventilator patients to nursing homes.
• Medicaid rates for inpatient and outpatient hospital care are increased.
• CMO payment reductions.
• In Education, there is restored funding for RESAs proposing that they take on additional functions. The base level of RESA funding is also restored.
• No additional funding for virtual schools.
• In "Special Needs Scholarships," the House added $1.6 million because of an Office of Planning and Budget error.
• Money is inserted to adjust staffing at State schools, including two teachers and three paraprofessionals.
• In the Department of Human Services, the House has swapped State funds in Adoption Services with TANF funds.
• In Department of Insurance, there are slight reductions including funds for
  fire prevention.
• Georgia Bureau of Investigation is left with ten open positions.
• Department of Juvenile Justice will see reductions to the Macon Youth Development Center by 20 beds.
• Two million is placed back in the Budget for Cancer Research at the Medical College of Georgia.

 

Two amendments were offered to HB 948; both failed.  The Bill then passed the House with a vote of 120 to 52 and Rep. Harbin moved for its immediate transmittal to the Senate.

In addition to the Bills noted above and HB 948, the House also began to work through parts of its "agrees and disagrees" list of Bills.  This permits the House the ability to either agree or disagree with actions taken by the Senate on pieces of legislation.  A few highlights of these actions include the following:

• HB 903 – Rep. Mark Burkhalter (R-Johns Creek) presented the changes made by the Senate to HB 903 and asked that the House agree to those Senate amendments.  The underlying Bill authorizes the City of Atlanta to extend its hotel/motel tax so that such proceeds could permit the Georgia World Congress Center either renovate the Georgia Dome or begin negotiations on the building of a new stadium for the Atlanta Falcons.  The amendments made by the Senate, which were narrowly drawn, would permit the City of Macon and Bibb County to take similar action with their hotel/motel tax moving it from six to seven percent so that such proceeds could be used to fund their "halls of fame" such as the Music Hall of Fame.  While Rep. Burkhalter has been philosophically opposed to the halls of fame, he urged House Members to agree to his motion.  The House agreed with the Senate amendments by a vote of 127 to 18.
• HB 396 – Rep. Tom Rice (R-Norcross) moved that the House disagree with the Senate Substitute and amendment to HB 396.  He noted that the changes made to the initiative would cost the Department of Motor Vehicles $750,000.  The underlying piece of legislation, as it cleared the House, moved the length of time for non-temporary driver's licenses or identification cards from three years to five years before necessitating a new one to be issued.  It also assessed a fee of $5.00 for each year that an authorized person is permitted to stay, if less than five years.  It also made other changes such as increases to various non-commercial and commercial drivers' licenses.  The Bill was changed in the Senate, adding language from Sen. Don Thomas, M.D. (R-Dalton) requiring use of safety belts in all passenger vehicles (including trucks and SUVs). The House disagreed to the Senate's version of the proposal.
• HB 194 – Rep. Fran Millar (R-Dunwoody) moved that the House agree to the Senate substitute to HB 194.  This Bill requires that if a pharmacist substitutes a generic drug for a brand name prescribed drug product when dispensing the medication, then the pharmacist must include the brand name and the generic name of the drug product, with an explanation of 'generic for (insert name of brand name prescribed drug product)' or similar language to indicate substitution has occurred.  The exception to this is unless the prescribing practitioner indicated that the name of the drug may not appear upon the prescription label.  It also will not apply to medication dispensed for in-patient hospital services or to medications in specialty packaging for dosing purposes as defined by the Board of Pharmacy.  The House agreed to the Senate's changes.
• HB 231 – Rep. Sean Jerguson (R-Woodstock) moved that the House agree to the Senate substitute to HB 231.  In this Bill, it defines the term "interior design" as used in Title 43.  Arguments ensued that this Bill will essentially require the licensure of interior designers; the Bill's author stated that it would not.  The House agreed to the proposal from the Senate with a vote of 122 to 21.  Rep. Penny Houston (R-Nashville) moved that the House reconsider its actions; her motion failed by a vote of 46 to 102.
• HB 172 – Rep. Howard Maxwell (R-Dallas) moved that the House agree to the Senate substitute on this Bill.  The change made by the Senate was solely to the effective date of the proposal relating to the Employees' Retirement System. The Bill addresses re-examination of persons receiving disability benefits under the Employees' Retirement System of Georgia, and the effect of refusal to undergo examination and effect of ability to engage in gainful employment.  It also deletes provisions providing for physical examinations done at a place convenient to the beneficiary and requires a beneficiary, who has not reached the age of 60, be required to submit to an examination.  The effective date was moved from September 1, 2009 to September 1, 2010.  The House agreed with a vote of 149 to zero.
• HB 244 – Rep. Jimmy Pruett (R-Eastman) moved that the House agree to the Senate substitute on this Bill.  One of the major changes in the Bill is changing the name of the Georgia Environmental Facilities Authority to the Georgia Environmental Finance Authority.  It provides for the bonds so that cities and counties can access money to do infrastructure changes (such as major updates to water and sewer systems).  Rep. DuBose Porter took issue with the Bill because of the proposal to use the bonds that "GEFA" holds and use the proceeds in the State's Budget.  His concern was that more than $600 million in bonds would be sold at $.50 on the dollar, garnering only $280 million for the bonds.  Rep. Ben Harbin (R-Evans) noted that there will be $40 million left in the Authority for projects and that the House is continuing to protect cities and counties which do not have bond ratings and cannot access these types of moneys.  Rep. Pruett was angered that Rep. Porter had not proposed his amendments earlier and that he was purely making a grand stand of the issue.  The House agreed with Rep. Pruett's motion with a vote of 94 to 60.
• HB 320 - Rep. Pruett also brought up this proposal as it was related to "GEFA" and its retirement system.  This proposal cleared the House, with it agreeing to the Senate substitute by a vote of 131 to three.

Senate

The Senate had as its special guests today members of Georgia's 48^th Brigade.  Sen. John Douglas (R-Social Circle) honored the group with a Resolution and paid tribute to the eight men who lost their lives in Iraq.

The Senate also adopted HR 1995, the House's version of a new adjournment schedule.  In this version, the General Assembly will adjourn Sine Die on April 29, 2010.

The Senate took up sixteen Bills on its Rules Calendar:

• HB 567 – Sen. John Wiles (R-Marietta) presented this initiative known as the "Crime Victims' Bill of Rights".  No questions were asked and it sailed through with a vote of 49 to zero.
• HB 1284 – Sen. Greg Goggans (R-Douglas) outlined this initiative for his Senate colleagues.  It addresses tax policies and will require that the Governor prepare annually a fee report of every fee which is taken in by the State. This work will be done by the Office of Planning and Budget. This Bill passed with a vote of 47 to two.
• HB 579 – The Bill addresses reciprocity of licensure, without examination, for general and residential contractors in O.C.G.A. § 43-41-8.  It passed with a vote of 49 to zero.
• HB 994 – Sen. Greg Goggans (R-Douglas) presented this Bill dealing with the Department of Community Health's functions.  It permits the Department to assess fees on all twenty-two facilities which it licenses.  Currently, only four of the twenty-two types of facilities are assessed a fee.  The Department inspects more than 13,000 facilities statewide.  This Bill passed with a vote of 42 to two.
• HB 1021 – Sen. Lester Jackson (D-Savannah) explained this Bill which adds Salvia divinorum A to Georgia's Dangerous Drug List in Title 16.  This proposal passed 48 to zero.
• HB 1055 – A motion was made to "engross" the Bill (known as the "Fee Bill"); and it carried.  Sen. Greg Goggans (R-Douglas) explained the update to the various fees in the Code which were reviewed.  Sen. Goggans explained that there has been no consistent setting, collecting, reviewing or updating these fees in the Code.  There were 347 user fees reviewed by an audit.  Under the proposal in HB 1055, changes proposed would generate $96 million, and the fees would pay for the services provided by the State (it includes such things as candidates' fees for filing late disclosure reports; requiring lobbyists to pay for registering as a lobbyist; additional fees for specialty license plates; increases to court filing fees; and etc.).  It passed the Senate with a vote of 33 to 13.
• HB 1072 – Sen. David Shafer (R-Duluth) presented this Bill concerning motor vehicle franchise practices.  He described the changes as a "fair balance" which will also protect auto dealers from abuse.  The Bill passed with a vote of 43 to zero.
• HB 883 – Sen. John Bulloch (R-Ochlocknee) explained this initiative addressing the Sanitary Activity for Food-Processing Enterprises (SAFE) Act.  It provides civil penalties for testing and adds language in an amendment for criminal violations for a "knowing" violation. This Bill passed with a vote of 47 to zero.
• HB 910 – Sen. Dan Weber (R-Dunwoody) explained this Bill, proposed by the Department of Education, on annual gender reporting requirements. He noted that the changes would "simplify" the requirements and allow for this information to be tracked electronically on a website.  Schools will continue to have the same deadline to report the information. The proposal passed with a vote of 49 to zero.
• HB 1170 – Sen. Greg Goggans (R-Douglas) took the Well again to explain this Bill.  Until last fall, Care Management Organizations paid a "quality assessment fee," and because of federal law changes made in October 2009, Georgia's law needed to change.  This Bill addresses such change and now requires that the Care Management Organizations pay premium taxes just like other health maintenance organizations (they were previously exempt from the premium taxes because of the payment of the quality assessment fees). The Bill passed with a vote of 41 to seven.
• HR 178 – Last year, Rep. Kevin Levitas (D-Atlanta) passed enabling legislation dealing with Georgia's laws on employment agreements.  This Resolution is the Constitutional Amendment, which is narrowly drawn, relating to the courts' enforcement of such agreements.  It permits, as explained by Sen. Bill Cowsert (R-Athens), the courts to "blue line" these agreements if passed by voters.  The Resolution is supported by NFIB and the Georgia Chamber of Commerce.  It passed with a vote of 48 to one.
• HB 1128 – Sen. Seth Harp (R-Midland) presented this proposal concerning students who do not pay their obligations to State schools.  This permits the schools the ability to write off accounts receivable but does not relieve the students from their obligations to repay such moneys owed. A Floor Amendment was tacked onto this proposal and the Bill cleared with a vote of 46 to zero.
• HB 1179 – Sen. Johnny Grant (R-Milledgeville) explained this Bill which allows hospitals to offer influenza vaccine to their employees who come in contact with patients.  If the worker wants such vaccine, the hospital will cover the costs.  Georgia Hospital Association and hospitals worked on the language.  Sen. John Douglas (R-Social Circle) took issue with the Bill – noting that it was hypocrisy for the Senate to meddle in healthcare when it opposed the federal government meddling in healthcare.  He urged that the Senate be consistent.  Senators Gail Buckner (D-Jonesboro) and Nan Orrock (D-Atlanta) noted that there was a governmental responsibility for public health and the public's safety. The Bill passed with a vote of 38 to ten.
• HB 1224 – Sen. Jack Murphy (R-Cumming) presented this Bill addressing an issue relating to the restriction on driver's licenses.  Presently, if you have a restriction requiring the wearing of glasses (corrective lenses) while driving and you have obtained lasik surgery, then if you are stopped and ticketed by police, you are in violation of the law because your license requires you to wear glasses.  This amendment to the law permits a defense for you in court, if you can show you have undergone the corrective surgery.  The Bill passed with a vote of 47 to zero.
• HB 1309 – Sen. Ed Harbison (D-Columbus) presented this Bill adding that synthetic marijuana or "cannabinoids" to Georgia's Dangerous Drug List in Title 16.  The Bill passed unanimously 50 to zero.
• HB 1345 – Sen. Don Balfour (R-Snellville) explained the "Georgia Kosher Food Consumer Protection Act" to his colleagues.  The Bill results from a lawsuit brought by the ACLU.  A Floor Amendment was made and adopted; the Bill then cleared with a vote of 48 to zero.

 

Sen. Greg Goggans (R-Douglas) moved that the Senate agree to the House amendment to the Senate substitute to HB 1055 which includes HB 307 (without the State premium tax forgiveness on health insurance plans).  He explained the House actions on the proposal, as noted above.  Senators argued that no fiscal note was included with the Bill as required by law.  By 2016, the loss of income to the State from the repeal of the quarter mill property tax will be $94.5 million and the loss of income to Georgia for the phased-in earned income for senior citizens up to $35,000.00 will be $116 million.  The motion carried 39 to 12.

Committee News

House Ways and Means Committee

SB 346, by Sen. Chip Rogers (R-Woodstock), passed out of the Committee in the morning.  Rep. Larry O'Neal (R-Perry) noted that the Bill had been fully "vetted." It contains a number of revisions to current law regarding ad valorem taxation including notice to property owners.  It was further noted that the Bill would be an excellent improvement in process. Some amendments were made and the Bill passed out of the Committee.

Senate Finance Committee

The Senate Finance Committee held a lengthy meeting with a number of proposals considered. 

HB 1393 was presented by Sen. Emanuel Jones (D-Decatur).  This Bill permits the Clayton Transit to be a part of MARTA, if approved by referendum in July, and provides for an exemption to the total local sales and use tax cap otherwise applicable in current law.  It also provides such exemption for a certain tax levied for purposes of a metropolitan area system of public transportation which is first levied after January 1, 2010.  It will raise the sales tax levy in Clayton County via a referendum to join MARTA with a referendum vote in July of this year.  In Section 2 of the Bill, it extends the motor fuel tax exemption for transit systems.  The Georgia Transit Association supported the proposal and it passed unanimously out of the Committee. 

HB 1060 was presented by Rep. Ron Stephens (R-Savannah).  This Bill addresses Georgia's Ports Authority and permits the Authority to back its own bonds.  HB 1060 also passed unanimously.

Next up was HB 347.  Rep. Terry England (R-Auburn) presented the proposal which adds a new definition for "sales price" specifically to address leased equipment and removes the payment of sales tax on purchases of such equipment from ad valorem tax.  HB 1049 was added to the Bill, which will allow every county to vote to add a fraction of a penny to its SPLOST so that the money can be used to fund the arts or other local economic development projects.  Rep. Stephens stated that this proposal failed at the last moment to get on House Floor on cross-over day.   Sen. Bill Heath (R-Bremen) moved to table.  Rep. Stephens agreed to pull off HB 1049 so that the original Bill could move forward.  HB 347 then passed with only the "sales price" language dealing with leased equipment.

Rep. Rusty Kidd (I-Milledgeville) presented HB 1198 which proposes to address collection of income tax from a taxable nonresident.  The proposal had been combined with HB 915.  It essentially states that if an individual makes money in Georgia, then that individual must pay Georgia income tax.  It would end some tax avoidance and would tax persons such as entertainers and athletes who have a legal residence elsewhere and avoid Georgia tax.  Sen. Tommie Williams (R-Lyons) and Sen. John Wiles (R-Marietta) raised questions. A motion to table the Bill was made which passed.

HB 483 was presented by Sen. Chip Rogers (R-Woodstock).  This Bill made it through the House and then stalled last year in the Senate after failing to get reconsideration voted timely. The Bill addresses ad valorem taxation on heavy duty equipment under this year's version; last year, it dealt with taxing of senior citizens and homestead exemptions. The Bill passed unanimously.

Sen. Greg Goggans (R-Douglas) presented Rep. Mickey Channell's Bill, HB 1105.  It permits an exemption from ad valorem taxation for watercraft held in inventory.  HB 1105 passed unanimously.

HB 1186 was presented by Sen. Cecil Staton (R-Macon).  It will permit an ad valorem tax exemption for certain public-private transportation projects and also provides that that certain public-private transportation projects will not constitute special franchises.  The Bill passed.

HB 1012 was explained by Sen. Mitch Seabaugh (R-Sharpsburg). The Bill addresses "gold star" license plates for those families who have had a family member die in service.  It expands the definition of "family member" and adds siblings and children in addition to parents and step parents.  This plate will be issued to only one family member.  The Bill passed unanimously as amended.

Sen. Don Balfour (R-Snellville) presented HB 1221, the streamline sales tax proposal by Rep. Larry O'Neal (R-Perry).  It proposes uniform sales and use tax collection provisions.  21 other states have passed similar proposals.  It will allow entities such as Amazon.com to pay sales tax voluntarily and provides immunity from sanctions in exchange. One amendment was proposed by Sen. John Wiles (R-Marietta) so that a Lockheed may enjoy a sales tax exemption, as a government contactor, for equipment purchases for two years more years.  Georgia currently has such a sales and use tax exemption which is 15 years old.   Additionally, two technical amendments were proposed to HB 1221. Sen. Balfour asked that the Wiles amendment be struck as HB 1221 is not a vehicle; however, Sen. Chip Rogers (R-Woodstock) insisted on the Wiles Amendment which was adopted.  In regards to the underlying proposal, the Georgia Chamber of Commerce and ACCG support the Bill.  The Bill passed.

HB 1069 was presented by Rep. Joe Wilkinson (R-Atlanta). The Bill permits income tax credits for certain qualified equipment that reduces business or domestic energy or water usage as long as there is ARRA money for such credits.  The Bill passed unanimously.

Rep. David Knight (R-Griffin) presented HB 1093. He explained that this was done initially in Hall County as a pilot program to improve sales tax reporting and collection. The Bill provides the Department of Revenue more authority to permit better collection.  Rep. Knight explained that there is wide business support for the Bill and ACCG also supports the proposal. This proposal also passed unanimously.

HB 1272, by Rep. Doug Collins (R-Gainesville), provides a voluntary check-off on an individual's Georgia income tax return for lupus and kidney disease research. The money will be placed in the Department of Community Health in a specific fund for this purpose.  The Bill passed unanimously.

HB 1321 was presented by Sen. Chip Rogers (R-Woodstock).  The Bill expands the uses of money in the Emergency Telephone System Fund.  Clint Mueller explained more about the Bill which ACCG supports. Four counties will qualify if the change is made. 9-1-1 money comes from fees; if fully enhanced, other projects can be funded with excess. The Bill passed unanimously.

Senate Rules Committee

The Senate Rules Committee fixed its Rules Calendar for April 20, 2010 (the 37^th Legislative Day) as follows:

HB122 - Counties and municipalities; budget excess; searchable website; provision
Counties and municipalities; budget excess; searchable website; provisions  (GvtO-1st) Lindsey-54th

HB451 - Commercial code; Uniform Commercial Code; conforming amendments; adop
Commercial code; Uniform Commercial Code; conforming amendments; adopt  (S JUDY-40th) Jacobs-80th

HB486 - Superior Court Clerks' Retirement Fund of Georgia; not entitled credit for service after July 1, 2010; provision
Superior Court Clerks' Retirement Fund of Georgia; not entitled credit for service after July 1, 2010; provisions (Substitute) (RET-31st) Meadows-5th

HB493 - Georgia Youth Conservation Corps; creation and purposes of the corps; change certain provision
Georgia Youth Conservation Corps; creation and purposes of the corps; change certain provisions (ED&Y-40th) Brooks-63rd

HB651 - Sexual offenders; information to schools on accessing registry; revise certain provision
Sexual offenders; information to schools on accessing registry; revise certain provisions  (ED&Y-35th) Carter-175th

HB1016 - Identity fraud; include businesses as potential identity theft victims; revis
Identity fraud; include businesses as potential identity theft victims; revise  (JUDY-46th) Golick-34th

HB1085 - Reunification of family; additional case plan and permanency plan requirements; provision
Reunification of family; additional case plan and permanency plan requirements; provisions  (JUDY-54th) Dempsey-13th

HB1364 - Insurance; Georgia Insurers Insolvency Pool liable in emergency; provid
Insurance; Georgia Insurers Insolvency Pool liable in emergency; provide (Substitute) (I&L-27th) Rogers-26th

HB1405 - 2010 Special Council on Tax Reform and Fairness for Georgians; Special Joint Committee on Georgia Revenue Structure; creat
2010 Special Council on Tax Reform and Fairness for Georgians; Special Joint Committee on Georgia Revenue Structure; create  (FIN-21st) O`Neal-146th

House Rules Committee

OPEN RULE
None

MODIFIED OPEN RULE

SB6 - Driver's Licenses; restricted; change the penalty for violation

SB354 - Public Roads; further declare authority of counties/municipalities to remove roads from their systems when removal is in best public interest

SB456 - Redevelopment; directors of downtown development authority designated as urban redevelopment agency; serve as commissioner

MODIFIED STRUCTURED RULE

SB344 - 'Health Share' Volunteers in Medicine Act"; provide sovereign immunity protection for physician assistants in safety net clinic

SB432 - "Advanced Broadband Collocation Act"; provide procedures; modification/collocation of wireless communication facilities

STRUCTURED RULE

None