Gold Dome Report for February 1, 2011
Today, it was Georgia Tech Day at the Capitol! Yes, Bulldogs have competition when it comes to recognition within the halls of the State's Capitol. Also, Georgia Tech's President Bud Peterson and other leaders from Georgia Tech were present to show support of the institution.
Advocates for elimination of child sexual trafficking were also present today – their focus was to draw attention to the need to "End the Commercial Sexual Exploitation of Children." It is estimated in a scientific study, A Future, Not a Past, that 7,200 men in Georgia pay for sex with an adolescent female each month.
Former Representative Bob Lane (R-Statesboro) was recognized today by his fellow House members.
The Murray County High School Quiz Bowl Team was present today in the Capitol and Reps. Tom Dickson and John Meadows welcomed the group to the Capitol.
Doctor of the Day was Robert Cox, MD, a staff physician at Henry Medical Center who lives in Barnesville.
Floor News
House
Members of the House convened at 10:00 a.m. today in an effort to deal with more of the "people's business."
Chairman Jay Roberts (R-Ocilla), of the Transportation Committee, led the House in a moment of silence for the death of DOT worker Spencer Pass. Mr. Pass was working on I-85 in the HERO unit when he was struck and killed yesterday.
Rep. Mike Dudgen (R-Suwanee) made the announcement to the House acknowledging that it was "Georgia Tech Day" at the Capitol.
Chairman Tim Bearden (R-Villa Rica) announced the commemoration of the 39th annual Firefighters Appreciation Day at the Capitol. He noted with a laugh that all the firefighters were on the second floor of the Capitol!
Today was also Bulloch County Day. A celebration with the 25th annual Wild Game Supper is to be held for Lawmakers this evening.
Representatives Smith and Parent introduced the Transparency and Accountability in Government Act which seeks to end earmarks in legislation.
Chairman Amos Amerson (R-Dahlonega), of the Science and Technology Committee, spoke on his intention to pass legislation requiring licenses for off-road vehicles, similar to laws in neighboring states such as South Carolina.
Chairman John Meadows (R-Calhoun) read a letter from one of his constituents, a high school teacher, who urged the General Assembly to raise the required HOPE Scholarship GPA to 3.5.
The House wished freshman Lawmaker Rep. Kevin Cooke a happy birthday.
Representatives Powell and McCall presented a Bill regarding the flow of water in Georgia, which intends to "keep water where God put it" according to Rep McCall. More is noted on this Bill in the new Legislation section below.
The House adjourned at 11:00 o'clock a.m. and will reconvene Wednesday, February 2nd at 10:00 o'clock a.m.
Senate
The Senate's session opened today with almost all members in attendance for the official 2011 group picture. The guest speaker was Pastor Tom Smiley of Lakewood Baptist Church in Gainesville. Otherwise, little headway was made dealing with actual issues.
New Legislation
HB 31 – Rep. Edward Lindsey (R-Atlanta) offered this Bill creating a new Chapter 5C in Title 48 providing for the comprehensive revision of the manner and method of assessing real property. It also limits valuation increases of real property which shall not exceed an aggregate of nine percent for each three-year period of successive ownership; shall not exceed from one taxable year to the succeeding taxable year the lesser of three percent or the percent change in the rate of economic inflation on individual taxpayers, as determined by the Commissioner by December 1 of each year. In O.C.G.A. § 48-5C-4, it outlines when parcels of property will be reassessed. A transfer of interest resulting in a reassessment required will occur at the time of execution of the instruments directly resulting in the transfer of interest and without regard to whether or not the applicable instruments are recorded. O.C.G.A. § 48-5C-7 outlines what property will not be subject to these assessments (such as property owned by a public utility company and forest land conservation use property). Under Article 2 of this Chapter 5C, it outlines taxation to benefit local boards of education.
HB 109 – Rep. Mark Hamilton (R-Cumming) introduced this proposal concerning State ethics and what is required of public employees. It would add a new Code Section at O.C.G.A. § 21-5-77 to prohibit any public employee from using a computer, computer system or computer network or telecommunications device which is owned or leased by the State or a political subdivision of the State for the purpose of promoting or opposing the passage of any legislation by the General Assembly or from promoting or opposing the approval or veto of any legislation by the Governor. (This would apply to fax machines, wired and wireless telephones and telephone systems, email, word processing software, and printers.) There is an exemption for those public employees who as a part of their duties in their employment with the State or a political subdivision of the State, is registered as a lobbyist and who engages in lobbying on behalf of a State agency by whom such person is employed or the political subdivision by whom such person is employed.
HB 110 – Rep. Mike Jacobs (R-Atlanta) offered a new Code Section for O.C.G.A. § 44-14-14 relating to mortgages, conveyances to secure debt and liens. The legislation adds a term, "vacant real property," in subsection (a) which will mean:
(1) Any building that is not occupied for an amount of time specified by a county or municipal ordinance, but at least two months, by one or more persons who are responsible for the maintenance of the building and the land on which it is located; and (2) Any land on which no improvements are located. Such term shall not include new buildings under construction pursuant to building permits in full force and effect, existing buildings being renovated or remodeled pursuant to building permits in full force and effect, real property owned by any governmental entity, unabandoned residential real property occupied by the owner or a tenant under the owner, or real property otherwise exempted by county or municipal ordinance.
It establishes a "registry" for vacant real property which can be required by the governing body of either a county or municipal corporation through an ordinance – but it cannot solely require the registration by the vacant real property having been foreclosed upon judicially upon judicially or under power of sale contained in a deed to secure debt or other mortgage instrument or being owned by a purchaser at a foreclosure sale. Further, the Bill outlines what is to be contained in the registry (owner's name, address, phone and fax numbers and email address, the location of the vacant real property and tax parcel number, and etc. and provisions are made for out-of-state owners of property) and does permit the owner of vacant real property (or his agent) to request an exemption from registration upon certain findings made. Fees are to be collected for this registration of no more than $25 which are to be deposited into a separate account and to be used by the county or municipal corporation to 1) improve public safety efforts (police and fire); 2) administer the registry; or 3) repair, close, condemn, or demolish vacant real property as otherwise authorized by law. Likewise, a fee to be removed from the registry may also be charged which also cannot exceed $25 in each instance. Fines may also be imposed for delinquent in registering property of this nature.
HB 111 – Rep. Debbie Buckner (D-Junction City) brought this Bill amending Chapter 5 of Title 12 concerning the comprehensive statewide water management planning. The initiative amends provisions relating to a policy statement for this planning, guiding principles, and requirements of plans. It further regulates interbasin and intrabasin transfers of water. It adds that "donor basin" means "a river basin from which a withdrawal or diversion of water occurs in an intrabasin transfer." "Interbasin transfer" is defined as a "withdrawal or diversion of water from one river basin followed by use or return of some or all of that water to a different river basin." "Intrabasin transfer" means a "withdrawal or diversion of water from a point within a subbasin within a river basin followed by the use and discharge of some portion of that water into a second subbasin within the same river basin." Interbasin transfers will be permitted to "meet water needs in areas facing limitations on their water resources, as indicated when the forecast consumption of water from a specific source approaches the defined consumptive use assessment, so long as the transfer does not unreasonably foreclose opportunities for water use in the donor basin." It addresses the application for the new or modified water withdrawal permit. It further adds what the "donor basin considerations" must be as well as the considerations of the "receiving basin considerations" with both of those terms defined.
HB 112 – Rep. Alan Powell (R-Hartwell) authored amendments in Title 40 to ensure the financial responsibility of motor carriers in Georgia are compatible with federal motor carrier safety regulations found in 49 C.F.R. Part 387. Further, it addresses equipment requirements for the lighting equipment and warning flags for any protruding loads (requiring one flag at the extreme rear of the load if the projecting load is two feet wide or less and two warning flags if that load is wider than two feet), brake performance, ability, rear view mirrors, window tinting, and tire tread depth on commercial motor vehicles – again making them compatible with federal motor carrier safety regulations.
HB 113 – Rep. Alan Powell (R-Hartwell) offered amendments to Chapter 11 of Title 40 to provide for changed definitions relating to abandoned motor vehicles adding that the "motor vehicle" is the actual motor vehicle or trailer and its contents. An owner is the registered owner, the owner as recorded on the title, lessor, lessee, security interest holders, and all lienholders as shown on the records of the Department of Revenue or the records from the vehicle's state of registration. It adds more to O.C.G.A. § 40-11-2 concerning the duty of the person(s) who remove or store a motor vehicle so as to require that facility to have a lien on the vehicle and its contents for the first 30 days of storage (limited to reasonable towing and storage fees plus costs of notification to the vehicle's owner when such is applicable). The owner would be liable for all fees. There are exceptions from the lien on the vehicle's contents: prescriptions (drugs or eyewear); medical device; child-safety restraining devices; keys (except to vehicle); or personal documentation (such as birth records, passports, or death records).
HB 114 – Rep. Don Parsons (R-Marietta) added an amendment proposal to O.C.G.A. § 40-11-5(3)(B) concerning lien foreclosures on abandoned motor vehicles by adding that there is no additional fee for filing an affidavit except where a full hearing is requested and subsequently granted by the court; in those instances, the court is authorized to assess its normal fee for a hearing.
HB 115 – Rep. Don Parsons (R-Marietta) introduced this proposal adding O.C.G.A. § 48-8-6.1 in sales and use taxes to provide for the determination of proper addresses using zip codes of nine digits. These nine digit zip codes would be required for the levy of such taxes as well as where any delivery of tangible personal property is made.
HB 116 – Rep. Don Parsons (R-Marietta) proposed an amendment to O.C.G.A. § 46-2-28 concerning issuance of stocks, bonds, notes, or other debt by companies under the Public Service Commission's jurisdiction. This Bill mirrors SB 32 by Sen. David Shafer (R-Duluth). It addresses local exchange companies to be exempt from the provisions if the stocks, bonds, notes or other evidences of debt are issued as a part of a debt transaction that is an interstate transaction.
HB 117 – Rep. Rick Crawford (D-Cedartown) authored this Bill amending O.C.G.A. § 48-7-128(b)(3) concerning withholding tax on the sales or transfers of real property and associated tangible personal property by non-residents. It provides that the person or entity who is identified as the seller on the settlement statement shall be considered the "seller" for the purposes of this Code Section. That person would be treated as the seller and subject to the withholding and documentation requirements.
HB 118 – Rep. David Knight (R-Griffin) offered this Bill addressing the definition of "current use value" in O.C.G.A. § 48-5-2)(1) in the ad valorem taxation law. This measure is actually a "placeholder" for new language yet to be introduced.
HB 119 – Rep. David Knight (R-Griffin) proposed this initiative which would amend O.C.G.A. § 48-8-2(4) concerning the definition of "business" in relation to sales and use taxes. This measure is actually a "placeholder" for new language yet to be introduced.
HB 120 – Rep. David Knight (R-Griffin) dropped this Bill to amend O.C.G.A. § 48-7-1(1) addressing the definition of "corporation" in the income tax law portion of the Code. This measure is actually a "placeholder" for new language yet to be introduced.
HB 121 – Rep. Doug McKillip (R-Athens) offered this Bill adding a new Code Section at O.C.G.A. § 33-24-18.1 to be known as the "Discretionary Clause Prohibition Act." It would prohibit any policy, contract, certificate, or agreement offered or issued in Georgia by a health insurance carrier to provide, deliver, arrange for, pay for, or reimburse any of the costs of healthcare services that contain a provision purporting to reserve discretion to the health carrier to interpret the terms of the contract, or to provide standards of interpretation or review that are inconsistent with the laws of Georgia. It further adds that no insurance policy issued in Georgia providing for "disability income protection coverage" can contain a provision purporting to reserve discretion to the insurer to interpret the terms of such a contract or to provide standards of interpretation or review that are inconsistent with the laws of Georgia. It would apply to policies issued on or renewed after July 1, 2011.
HB 123 – Rep. Jay Powell (R-Camilla) offered an amendment to O.C.G.A. § 16-10-33(a) clarifying the provision will include stun guns and tasers (capable of electrical charges in excess of 20,000 volts or otherwise capable of incapacitating a person by an electrical charge) when there is an attempted removal of a weapon from a public official.
HB 124 – Rep. Mark Hamilton (R-Cumming) authored an amendment to O.C.G.A. § 36-36-115(d) addressing the compensation for members of an arbitration panel resolving annexation disputes so that they will receive $115.00 per diem plus mileage for travel rather than expenses and allowances.
HB 126 – Rep. Tommy Benton (R-Jefferson) authored this Bill to designate April 19th as "Patriots Day" in Georgia. This Bill proposes this to be added at O.C.G.A. § 1-4-21.
HB 127 – Rep. Doug Holt (R-Social Circle) authored this Bill concerning prestige license plates and special plates for persons and their vehicles. It will allow special license plates for amateur radio operators in O.C.G.A. § 40-2-75 when they hold an unrevoked and unexpired official amateur radio station license issued by the Federal Communications Commission and once they complete an application with proof of ownership of the "FCC" license. Further, the legislation deletes subsection (I)(6) of O.C.G.A. § 40-2-86.1 which permitted "special license plates" for persons who hold an unrevoked and unexpired official amateur radio station license.
HB 129 – Rep. Doug McKillip (R-Athens) introduced this Bill adding a new Code Section at O.C.G.A. § 44-14-14 prohibiting a fee for a future conveyance of real property except under limited circumstances.
HB 130 – Rep. Howard Maxwell (R-Dallas) proposed an amendment to O.C.G.A. § 20-14-91(e)(1) changing the requirements on the numbers of times that the Career and Technical Education Advisory Commission is to meet, moving its requirement to meet not less than two nor more than four times annually to at least once annually.
HB 132 – Rep. Ben Watson (R-Savannah) offered this Bill to require health insurance coverage for physician-prescribed special dietary foods or formulas for specific chronic medical conditions in O.C.G.A. § 33-24-59.14. It is proposed to be known as the "Medical Food Equity Act." The coverage would address specifically "food tolerance and absorption disorders".
HB 133 – Rep. Ellis Black (R-Valdosta) proposed a new Code Section for O.C.G.A. § 48-7-130 to provide for conditions of refunding de minimis overpayments by the Department of Revenue. It adds that if the amount deducted, withheld, or prepaid and credited to a taxpayer against the taxpayer's income tax liability for taxable year exceeds such income tax liability by $1.00 or less, then that amount shall not be refunded unless the taxpayer requests a refund of such overpayment amount on the income tax return. Likewise, an insufficiency of $1.00 or less, then no income tax shall be due and payable from the taxpayer for that taxable year.
HB 134 – Rep. Alan Powell (R-Hartwell) proposed changes to regulate interbasin transfers of water in Chapter 5 of Title 12. There are additional requirements of the Director in O.C.G.A. § 12-5-31(n) concerning the notice provisions required when authorizing an interbasin transfer. It outlines conditions under which interbasin transfers of water may be authorized and factors to be considered with regard to water withdrawal permits involving interbasin transfers of water.
HB 135 – Rep. Ellis Black (R-Valdosta) offered amendments in Titles 9, 44 and 51 concerning real estate boundaries and specific limitations relating to torts. It adds in O.C.G.A. § 9-3-30(a.1) that all actions for trespass upon realty or damage to realty involving the unauthorized cutting and carrying away of timber "shall be brought within six years after the removal of trees." It specifically repeals Article 1 of Chapter 4 of Title 44 concerning boundary determinations. It adds a new Code Section at O.C.G.A. § 51-3-3 pertaining to liability of owners and occupiers of land declaring it will be the duty of an owner of land who hires an agent or contracts with another to perform timber harvesting activities to clearly mark the accurate boundary lines of the property or area in which trees are to be harvested. Owners of land will not be liable to neighboring landowners for damages caused during the harvesting of timber if the owner has clearly and accurately marked the property boundary lines where the trees are to be harvested. O.C.G.A. §51-12-50 addresses damages when plaintiff recovers from the timber cut, permitting an election of damages in addition to attorney's fees or expenses of litigation.
HB 136 – Rep. Ellis Black (R-Valdosta) proposed a change in O.C.G.A. § 48-8-3(75)(A) concerning an exemption for the sales of certain school supplies, clothing, footwear, computers and computers. His proposal would allow this "sales tax holiday" on these items from 12:01 a.m. on July 28, 2011 until midnight on July 31, 2011.
HB 137 – Rep. Sheldon (R-Gwinnett) proposed this Bill which would in effect change definitions associated with highways, bridges, and ferries in Georgia and would also clarify the length of the term for the planning director. The Bill would further eliminate the current bonding requirement, clarify procedures for removing asbestos pipe for utility facilities, and require electronic submission of certain accident reports by law enforcement agencies.
HB 138 – Rep. Maddox (R-Cairo) introduced this initiative which would put limitations on when in-person absentee balloting may be conducted. The Bill also calls for a defined period of advanced voting.
HB 139 – Rep. Knight (R-Griffin) authored this Bill which would change certain definitions regarding income taxes.
HB 140 – Rep. Knight (R-Griffin) offered this Bill in order to change certain definitions associated with the ad valorem taxation of property.
HB 141 - Rep. Knight (R-Griffin) proposed yet another Bill related to tax definitions. This initiative would affect the language used to define sales and use taxes.
HR 9 – Rep. Roger Bruce (D-Atlanta) introduced this Resolution to create a Joint Teen Violence Study Committee. This Resolution is brought in part due to the death of Bobby Maurice Tillman on November 7, 2010. This Committee is to be composed of six members with two members from the House of Representatives to be appointed by the Speaker; two members from the Senate to be appointed by the President of the Senate; and two members to be appointed by the Governor.
HR 10 – Rep. Edward Lindsey (R-Atlanta) proposed this Constitutional Amendment in Article VII, Section I, revising comprehensively ad valorem property taxes. It provides for a local referendum in each county on question of limiting valuation increases of real property for ad valorem tax purposes.
HR 11 – Rep. Stephen Allison (R-Blairsville) authored this Constitutional Amendment proposal for a new Article IXA to provide for the "prioritized expenditure of excess State revenues, including income tax relief, in the event of a budget surplus." It further would provide for limitations on appropriations from the Revenue Shortfall Reserve for one-time expenditures and not for any ongoing programs or continuing expenditures and provide for the authority of the General Assembly to be made for such, requiring two-thirds' vote by each house of the General Assembly.
HR 101 – Rep. Alan Powell (R-Hartwell) offered this Resolution commending the Georgia Rural Health Association, recognizing February 16, 2011 as "Rural Health Day" at the Capitol.
SB 38 – Sen. Chip Rogers (R-Woodstock) authored this Bill amending Chapter 2 of Title 20 to provide for authority for the State School Superintendent to employ and dismiss employees in O.C.G.A. § 20-2-11 and gives the State School Superintendent in O.C.G.A. § 20-2-241(b) sole authority to employ and dismiss such clerical employees, supervisors, administrators, and other employees who are members of the classified service under Article 1 of Chapter 20 of Title 45 as may be necessary for the efficient operation of the Department of Education. Additionally, under the Code Section pertaining to the operation of the State's schools for deaf and blind persons, O.C.G.A. § 20-2-302(c), it also gives the Superintendent the sole authority to employ and dismiss employees at the State schools for the deaf and blind.
Committee News
House Committee on Insurance
Today's meeting of the House Committee on Insurance was an organizational meeting. Chairman Richard Smith (R-Columbus) noted that he hoped only to have four or five full Committee meetings this Session. The Committee adopted their rules for the Session which includes a requirement that any amendment or legislation be in the hands of the Committee 24-hours prior to any meeting. Work will be conducted at the Subcommittee levels. There will be three Subcommittees: Property and Casualty (chaired by Rep. Rich Golick); Life and Health (chaired by Rep. Keith Heard); and Administration and Licensing (chaired by Rep. Bill Hembree). Two Bills were assigned to Subcommittee today:
- HB 47 was assigned to the Life and Health Subcommittee and
- HB 66 was assigned to the Administration and Licensing Subcommittee.
Commissioner of Insurance Ralph Hudgens was on hand to provide his vision for the Department of Insurance in the coming months. As a former State Senator and Chairman of the Senate Insurance Committee, Commissioner Hudgens is familiar with the legislative process.
- Commissioner Hudgens intends on meeting later this week with a California insurer who desires to expand into Georgia.
- He explained that one of his issues that intended to remedy was the difficulties associated with rate filing approvals; thus, he intends to have Steve Manders in his office to handle those up to a certain percentage.
- Commissioner Hudgens has eliminated the media office and he has consolidated the divisions of property and casualty and life and health.
- Commissioner Hudgens noted that he believes in fair competition and fair marketplace.
- He has begun efforts to build a stronger fraud unit and has hired a former District Attorney to essentially work up cases before handing them over to local District Attorneys for prosecution. A billboard campaign has also commenced on marketing his fraud investigations.
- Employee changes have taken place since Commissioner Hudgens assumed office, including the elimination of many mid-level positions.
- He has instituted an Advisory Committee system, dividing the State into six regions.
- A two-year agency licensing cycle will be implemented for agents. It will use birthdays.
- Commissioner Hudgens wants to reduce the premium tax to 1.75% and divide between the State and local governments. He noted that this proposal would cause a fight as local governments would oppose. However, he believes more insurers will domesticate in Georgia and the State can provide them with tax abatements for jobs created. Presently, 2.5% goes to the local governments and 2.25% goes to the State in premium taxes.
- Commissioner Hudgens also wants the General Assembly to look further at tort reform (although he did not provide more specifics).
House Committee on Fish, Games and Parks
Department of Natural Resources Commissioner Mark Williams attended the meeting, and informed the Committee of the functions of his five offices.
The Coastal Resources Division is headquartered in Brunswick and works to preserve and promote the resources off Georgia's coast. Saltwater fishing in Georgia brings in over $500M annually and supports over 5,000 jobs.
The Wildlife Resources Division is headquartered in Social Circle and concerns itself with the game fish, wildlife, and endangered species of Georgia. There are 1.5M hunting and angling licenses in Georgia, as well as 52K boating licenses. Annually, hunting brings in revenue of $1.1 billion, fishing brings in $1.9 billion, boating adds $2.1 billion, and wildlife viewing garners $1.9 billion.
The Parks, Recreation, & Historic Sights Division is headquartered in Atlanta and oversees 46 State Parks, 15 Historic Sights, and 9 golf courses. These facilities brought in $792 million in FY 2010.
The Historic Preservation Division in Atlanta has received $46 million in private investment.
Finally, the Sustainability Division (formerly Pollution Prevention) focuses on waste management, landfills, and water pollution.
House Judiciary Committee (Civil)
The House Judiciary Committee held its organizational meeting today. Chairman Willard (R-Sandy Springs) introduced the staff and new members of the Committee. He then invited general discussion on HB 24, the evidence code rewrite proposal, and HB 30 correcting an effective date problem in the restrictive covenants legislation from 2010.
The evidence code proposal passed the House in 2010 and then the Senate Judiciary Committee. However, it failed to make the Senate Rules Calendar last Session and died. Chairman Willard brought back the same Bill and expressed that he hopes it will quickly move out of Committee and the House. If passed, it will make Georgia the 45th state to adopt the model bill and bring State law in conformance to the federal rules. Chairman Willard stated that this year, the Bill would not be referred to subcommittee and will be voted on next week by the full Committee.
The restrictive covenant legislation, HB 30, fixes an effective date problem that assures the 2010 constitutional amendment, passed in November, will survive any attack on its implementation date. The bill is very similar to last year's legislation and adopts the "blue pencil" rule where a covenant defective in one part can be enforced as to its other provisions that are legal.
House Intragovernmental Coordination Committee
Chairman Chuck Sims (R-Ambrose) called the meeting to order at 1:00 o'clock p.m. and noted that Vice-Chair Marcus Todd and Secretary Lee Anderson were not able to attend the meeting. However, the Committee passed its Committee Rules unanimously. Chairman Sims informed the Committee that any local bill that could cause "rancor" on the House Floor will be discussed in the Committee; it will not be discussed on the House Floor.
House Committee on Ways and Means
This afternoon, the first meeting of the House Ways and Means Committee was held under the leadership of its new Chairman Mickey Channell (R-Greensboro).
Several Subcommittees were established:
- Income Tax Subcommittee (chaired by Rep. Allen Peake)
- Sales Tax Subcommittee (chaired by Rep. Ben Harbin)
- Ad Valorem Tax Subcommittee (chaired by Rep. Roger Williams)
- Public Finance and Policy Subcommittee (chaired by Rep. Ron Stephens)
- Tax Reform Subcommittee (chaired by Rep. Paul Battles)
The Committee adopted its Rules for the Session; members asked questions about Rule 13 which requires amendments to be before the Subcommittee or Committee 24 hours in advance. Some feared this was an insufficient amount of time especially late in the Session when legislation was being moved quickly.
It was made clear that a full understanding was to be developed in the Tax Reform Council's Recommendations before other action was taken. Chairman Channell stated that this Committee would be deliberative in its actions, especially given the current economic challenges.
A number of Bills were assigned to Subcommittees:
- HB 13 – Tax Reform Subcommittee
- HB 19 – Tax Reform Subcommittee
- HB 20 – Tax Reform Subcommittee
- HB 29 – Public Finance and Policy Subcommittee
- HB 34 – Sales Tax Subcommittee
- HB 48 – Ad Valorem Tax Subcommittee
- HB 56 – Tax Reform Subcommittee
- HB 61 – Income Tax Subcommittee
- HB 73 – Sales Tax Subcommittee
- HB 86 – Holding for Tax Reform Committee
- HB 95 – Ad Valorem Tax Subcommittee
- HB 103 – Sales Tax Subcommittee
- HR 1 – Tax Reform Subcommittee
- HR 12 – Sales Tax Subcommittee
- HR 13 – Public Finance and Policy Subcommittee
- HR 86 – Sales Tax Subcommittee
House Human Relations and Aging Committee
The House Human Relations and Aging Committee met for the first time during the 2011 legislative session and adopting rules was their first order of business. Rep. Ann Purcell (R-Savannah), chair of the Committee, allowed members an opportunity to introduce themselves to all those present. She spoke positively about the impact that she hoped the House Human Relations and Aging Committee could have in the near future.
House Appropriations Committee - Public Safety Subcommittee
The House Appropriations Committee's Public Safety Subcommittee wasted no time today hearing from Georgia departments that are concerned about the Governor's proposed budget cuts. Representatives from the Prosecuting Attorney's Office asked the Subcommittee members for some leeway so that they would not have to dismiss any employees. Judge John Ellington of the Court of Appeals performed a memorable exhibition with a stack of books to illustrate his department's need for all the funds that they currently receive. Representatives from the Georgia Superior Courts spoke about their dire situation by discussing the need to continue adding furlough days to pay their employees. Other Georgia departments that were heard by the subcommittee were the Firefighter Standards and Training Council, the State Board of Pardons and Paroles, and the Department of Public Safety. All of these entities adamantly voiced their concerns about having enough money to operate effectively in 2011.
Senate Appropriations Committee - Higher Education Subcommittee
Chairman Cecil Staton (R-Macon) of the Senate Appropriations Committee's Higher Education Subcommittee opened today's meeting with some complementary statements about the strength of Georgia's institutions of higher learning. Representatives of these schools spoke candidly about how major budget cuts could drastically affect the academic quality in the Georgia education system especially due to continually rising enrollment. The budgets for fiscal year 2011 and fiscal year 2012 were discussed thoroughly. Subcommittee members often asked pointed questions when it was realized that some of the proposed budget cuts could cause the potential loss of grant funds.
House Legislative and Congressional Reapportionment Committee
The House Legislative and Congressional Reapportionment Committee convened early Tuesday morning to discuss the redistricting that will occur in Georgia as a result of the new census numbers. A new congressional district will be added in Georgia due to a population increase and there is a strong possibility that the new district will be somewhere in North Georgia. Chairman Roger Lane gave the other members of the committee an opportunity to ntroduce themselves and the meeting concluded after adopting rules.
Special Council on Tax Reform
In a late afternoon telephone conference call, the Special Council on Tax Reform held a meeting. The purpose was to report on the meeting that Chairman A.D. Frazier and other members of the Council had with Grover Norquist last Friday. Norquist had raised questions whether the Council's Report raised taxes or not.
The discussion concerned whether the Report's recommendations were indeed revenue neutral so that net taxes would not rise. Mr. Norquist indicated that he liked the recommendations to shift the tax structure towards consumption taxes and to accent economic development but was "concerned about the numbers." The Council Members emphasized that its intent had always been for the recommendations to be revenue neutral, that the income tax reductions were intended to offset any increase in sales or consumption taxes. The income taxes were viewed as "balancing" factors and would be lowered by however much was necessary to offset new revenue from consumption taxes. The Council told Norquist that income taxes could go below four (4) percent if necessary to balance revenue growth. It was also clarified that revenue neutrality could be achieved over time -- say two years -- because revenue could be collected from new sales taxes before income taxes could be lowered. Chairman Frazier suggested to Mr. Norquist that the Council could pass a resolution that amended the report and indicated that its goals had always been revenue neutral. Senator Don Balfour (R-Snellville) made this suggestion. After discussion, the Tax Council unanimously recommended and passed an amendment to this effect in the final report. Some of the Tax Council members will attend the upcoming legislative tax committee meeting on these issues tomorrow.
Please contact Stanley S. Jones, Jr., Helen Sloat, Taylor Janney, or Claire Cantrell 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.