Special Edition
Good day from the Gold Dome! Lawmakers will return tomorrow to the State's Capitol to take up the "people's business."
The "schedule" for this week is noted below:
Tuesday, February 16 in session for legislative day 18
Wednesday, February 17 in session for legislative day 19
Thursday, February 18 in session for legislative day 20
New Legislation
HB 1166 – Rep. Austin Scott (R-Tifton) authored this Bill amending O.C.G.A. § 21-5-30 to provide that any person acting on behalf of an insurance corporation, partnership, or business which is regulated by the Commissioner of Insurance will not make any contribution to a political campaign for that office or to any campaign conducted by an incumbent commissioner. It would further prohibit gifts to such officer or his or her family.
HB 1167 – Rep. David Lucas (D-Macon) offered this Bill which proposes to amend Article 1 of Chapter 8 of Title 48 to provide for a temporary increase in the rate of State sales and use taxation. This proposal essentially eliminates the current four percent cap on State sales and use tax and applies to:
- Sales of jet fuel and the currently permitted exemption found at O.C.G.A. § 48-8-3(33.1)(B)
- Motor fuels' sales taxation found in O.C.G.A. § 48-8-3.1
- Sales and use tax imposed on retail purchases, retail sales, rentals, storages, uses or consumptions of tangible personal property and on services described in O.C.G.A. § 48-8-30 (increasing the four percent to five percent for the period of July 1, 2010 through June 30, 2013; excess amounts above the four percent would be used to fund solely education)
- Sales tax collected from dealers found in O.C.G.A. § 48-84-32
- Disposition of excess collections in O.C.G.A. § 48-8-43
- Taxation of non-resident subcontractors found in O.C.G.A. § 48-8-63(e)
HB 1168 – Rep. Harry Geisinger (R-Roswell) introduced a new Chapter 37 in Title 50 proposing pari-mutuel wagering or betting on horse racing in Georgia. It is proposed to be permitted in Georgia for the "promotion, sustenance, and growth of the equine industry, in a manner consistent with the health, safety, and welfare of the people." Horse racing and pari-mutuel wagering would be under the control of the Georgia Racing Commission, composed of nine members appointed by the Governor and then confirmed by a majority of those elected to both the Georgia House and Senate. The Bill outlines the Commission's powers and duties in O.C.G.A. § 50-37-6 – including that the Commission and its representatives and employees will have the "authority to visit, investigate, and have free access to the office, track, facilities, satellite facilities or other places of business of any license or permit holder, and may compel the production of any of the books, documents, records, or memoranda of any license or permit holder for the purpose of satisfying itself that this chapter and its regulations are strictly complied with." Money and revenue received by this Commission will be placed in a special fund to be known as the "State Racing Operations Fund" pursuant to O.C.G.A. § 50-37-8, and interest earned from those monies will accrue to the benefit of the fund. Operational costs and administration of the Commission will be funded from this new fund and will be in such an amount as provided by the General Assembly through Appropriations for fiscal year. In O.C.G.A. § 50-37-10, it creates the Georgia Breeders Fund which will be administered by the Commission or an entity designated by the Commission. Costs of administering of the Georgia Breeders Fund and the balance "shall be disbursed by the Commission or designated entity to the breeders of Georgia-bred horses that win races at race meetings designated by the Commission, to the owners of Georgia sires of Georgia-bred horses that win races at race meetings designated by the Commission, to the owners of Georgia-bred horses that win or earn purse money in nonrestricted races at racetracks in Georgia licensed by the Commission, to the owners of Georgia-bred horses that win races at race meetings designated by the Commission and for purses for races restricted to Georgia-bred or Georgia-sired horses, or both, at race meetings designated by the Commission." O.C.G.A. § 50-37-12 will permit the Commission to bring injunction actions if it believes that a violation of any of Chapter 37 of Title 50 occurs. The Commission will oversee the ownership of horse racetracks or satellite facilities where pari-mutuel wagering is permitted. There are also punishments for violations of this Chapter enumerated in the proposal. If passed and signed by the Governor, this law would become effective on January 1, 2011, provided that a Constitutional Amendment is passed and ratified by the voters.
HB 1170 – Rep. Jim Cole (R-Forsyth) offered this Bill for the Governor as it strikes current law found in O.C.G.A. § 49-4-156 and repeals the tax exemption presently permitted for health maintenance organizations which provide health care services under the State's Medicaid program.
HB 1178 – Rep. Martin Scott (R-Rossville) has taken the lead in dropping this Bill adding a new Code Section at O.C.G.A. § 31-9-8 stating that no person receiving health care will be deprived of nourishment or hydration (notwithstanding an advance directive for healthcare which may contain wishes to the contrary). An exception would exist: that the attending physician has determined that the deprivation would be necessary as part of the person's medical treatment. "Nourishment or hydration" is defined in O.C.G.A. § 31-32-2. The form of the advance directive for healthcare, found at O.C.G.A. § 31-32-4, is amended striking current language on "decisions" under the Guidance for Health Care Agent. Under the current law found in O.C.G.A. § 31-32-7 relating to the duties and responsibilities of health care agents, it adds that the health care agent is to maintain a presumption that the declarant would choose the preservation of life.
HB 1179 – Rep. Katie Dempsey (R-Rome) authored this amendment to O.C.G.A. § 31-7-18 regarding influenza vaccinations for discharged patients aged 65 and older, vaccinations or other measures for healthcare workers in hospitals, immunity from liability, and standing orders in order to require that hospitals annually offer influenza vaccinations and other measures to its healthcare workers and other employees who have direct contact with patients at no cost the vaccinations for the influenza vaccine, subject to availability of the vaccine. It would further permit the hospital the ability to offer to its healthcare workers and other employees who have direct contact with patients any other vaccination, test or prophylactic measure required or recommended by the Centers for Disease Control.
HR 1087 – Rep. Calvin Hill (R-Canton) proposed this Constitutional Amendment to revise and "strengthen the provisions making tax defaulters ineligible for public office and provide for the release of otherwise confidential tax information for purposes of enforcement" in Article II, Section II of the State's Constitution. This applies to those individuals who hold public office.
HR 1401 – Rep. Jay Powell (R-Camilla) introduced this Constitutional Amendment to provide that a coroner will be a county officer where such office has not been abolished pursuant to law. This Amendment would alter Article IX, Section I of the State's Constitution at subparagraph III(a).
SB 401 – Sen. Mitch Seabaugh (R-Sharpsburg) offered a new Article 4 to Chapter 9 of Title 12 to enact the "Georgia Energy Freedom Act of 2010." It would permit the Governor the ability to delay implementation of the requirements of any federal program to implement a cap and trade system or any other program to address greenhouse gas emissions or motor vehicle fuel economy until a comprehensive assessment of such program can be made and the Governor finds that the implementation will benefit Georgians.
SB 404 – Sen. J.B. Powell (D-Blythe) offered this Bill adding a new Code Section at O.C.G.A. § 20-3-88 to provide that the Board of Regents will be required to establish a process for granting academic credit or exemption from required coursework for veterans for previous instruction received while in military service.
SB 406 – Sen. Cecil Staton (R-Macon) introduced amendments to Chapter of Title 21 and Chapter 5 of Title 40 to permit on-line voter registration as long as that individual who is otherwise qualified to register to vote also has a valid Georgia driver's license or identification card. The person would submit their voter registration application to the Internet website of the Secretary of State. The Secretary of State would have to design, in conjunction with the Department of Driver Services, a system to allow for such registration pursuant to O.C.G.A. § 21-2-221.2. Once the information is verified, the Secretary of State would obtain an electronic copy of the applicant's signature from the applicant's driver's license or identification card directly from the Department of Driver Services.
SB 407 – Sen. Judson Hill (R-Marietta) offered this Bill in an effort to address the high number of Georgians without health insurance. This initiative, written as a new Article 3 to Chapter 29A of Title 33, seeks to permit insurers authorized to engage in the business of insurance in Georgia who are also authorized to engage in the business of insurance in selected other states to issue individual medical and surgical health policies in Georgia, based upon their policy approval in the "other selected states." It would also create a "multi-state consortium" with reciprocity agreements for approval; offer; sale; rating, including medical underwriting; renewal; and issuance of individual medical and surgical health insurance policies. Two key definitions are: "primary state" (state designated by the issuer as the state whose covered laws shall govern the health insurance issuer in the sale of such coverage); and "secondary state" (any state that is not the primary state). The Commissioner of Insurance would be required to identify at least five states with insurance laws sufficiently consistent with Georgia laws; then the Commissioner would approve for sale in Georgia "selected comprehensive individual medical and surgical insurance policies that have been approved for issuance in those other states where the insurer is authorized to engage in the business of insurance so long as the insurer is also authorized to engage in the business of insurance in this state and provided that any such policy meets the requirements set forth in this article." This would include "high deductible health plans." In O.C.G.A. § 33-29A-44, it states that:
(a) Any insurer selling an insurance policy pursuant to this article, and any plan approved under this article, shall satisfy actuarial standards and insurer solvency requirements set forth by the National Association of Insurance Commissioners (NAIC) and adopted by regulation promulgated by the Commissioner or as otherwise prescribed by regulation promulgated by the Commissioner so long as any such regulation is not inconsistent with such NAIC standards.
(b) Any policy sold in Georgia under the coverage and administrative laws and regulations of another state that are not covered by a guarantee association or similar association of that state will be protected under the Georgia Life and Health Insurance Guaranty Association under Chapter 38 of this title.
The Commissioner would have the authority to determine those who meet the standards; whether the policies can be sold; whether to suspend/revoke such sales of these out-of-state policies; and be required to notify any affected Georgia policy holders if there was a suspension or revocation of the policies. There are notice requirements for application to participate in the out-of-state health benefit plan outlined in O.C.G.A. § 33-29A-45. The Commissioner is required to take the lead in creating the "consortium of like-minded states" and the rules of approval reciprocity are outlined in O.C.G.A. § 33-29A-46. There are also requirements enumerated for those health insurance issuers of individual health insurance coverage in a primary or secondary state and what they cannot do upon renewal (such as make changes based on health-status of the individual). The health insurance issuer is permitted to do certain things (such as it can terminate or discontinue coverage or a class of coverage as long as it is in compliance with Georgia laws). It further states that a health insurance issuer may not "offer for sale individual health insurance coverage in Georgia unless that coverage is currently offered for sale in the primary state." In O.C.G.A. § 33-29A-47(b), it will require these out-of-state companies to be subject to enforcement of contractual benefits, including Georgia's prompt pay laws for claims.
SB 408 – Sen. Judson Hill (R-Marietta) introduced a new Chapter 30C to Title 33 providing for small employer health group cooperatives (a private purchasing cooperative composed of small employers formed under this chapter). "Small employer" is defined in this proposal as: "in connection with a health insurance plan with respect to a calendar year and a plan year, any person, firm, corporation, partnership, association, or employer, as defined in Section 3(5) of the federal Employee Retirement Income Security Act of 1974, that is actively engaged in business that, on at least 50 percent of its working days during the preceding calendar year, employed no more than 50 eligible employees or employed an average of not more than 50 employees on business days during the preceding calendar year and that employs at least one employee on the first day of the plan year. In determining the number of eligible employees, companies that are affiliated companies or that are eligible to file a combined tax return for purposes of state taxation or that are treated as a single employer under subsection (b), (c), (m), or (o) of Section 414 of the federal Internal Revenue Code of 1986 are considered one employer. In the case of an employer which was not in existence throughout the preceding calendar year, the determination of whether that employer is a small or large employer shall be based on the average number of employees that it reasonably is expected to employ on business days in the current calendar year. Any reference in this chapter to an employer includes a reference to any predecessor of the employer." Such health group cooperative can only be formed for the purposes of obtaining insurance and must contain at least 1,000 eligible employees or have at least ten participating employers. Other requirements of this "health group cooperative" ("HGC") include:
- It must establish requirements for membership (voluntary – but the employer participating must do so for five years unless allowed to terminate because of financial reasons as determined by Department of Insurance Rules; the HGC cannot exclude an employer otherwise meeting membership requirements on the basis of claims experience or a health status-related factor of an employee/dependent)
- Hold an open enrollment period annually
- Allow eligible employees/dependents to select among health insurance plans offered through the HGC; those individuals covered by a health insurance plan requiring an enrollment period exceeding one year will be eligible to choose among available plans upon the completion of the enrollment period
- Offer coverage under all plans through the HGC to all eligible employees and their dependents (late enrollees can be excluded for the greater of 18 months or an 18 month preexisting condition exclusion but if both are applicable to such late enrollee then the combined period cannot exceed 18 months
- Not assume risk or form self-insurance plans among its members
- Have the option of using any rating arrangement with the discretion that premiums be paid to the health insurance plans by the HGC, by member small employers, or by eligible employees/dependents
HGCs must register annually with the Department of Insurance, demonstrating compliance that it is organized as a nonprofit corporation, filing that certificate with the Commissioner of Insurance once received from the Secretary of State. The board of directors must also file an annual report on the statement of all amounts collected and expenses incurred for the preceding year. There is an "exemption from liability" provided to an HGC, an HGCs board of directors, HGC executive director, an employee or its agent for: a) an act performed in good faith in executing the duties in connection with the HGC; or b) an independent action of a small employer insurer or a person who provides healthcare services under a health insurance plan. Further, an HGC or its board, executive director, an employee or agent is also not to be liable for a failure to arrange for coverage of a particular illness, disease, or health condition. An insurer is permitted to associate with a sponsoring entity, "such as a business association, chamber of commerce, or other organization representing employers or serving an analogous function, to assist the sponsoring entity in forming a HGC." These HGCs must also:
- Arrange for group health insurance plan coverage for its members by contracting with small employer insurers meeting the criteria established under this new law
- Collect premiums covering the cost of group health insurance plan coverage and administrative expenses
- Be authorized to contract with agents to market the coverage issued by the HGC
- Establish administrative and accounting procedures for operation of the HGC
- Establish grievance procedures
- Be authorized to contract with a small employer insurer or third-party administrator to provide administrative services to the HGC
- Contract with small employer insurers for provision of services
- Develop and implement a plan to maintain public awareness of the HGC (such as eligibility and process for enrollment)
- Be authorized to negotiate premiums to be paid by members
- Be authorized to offer ancillary products/services as are customarily offered with group health insurance plans
In O.C.G.A. § 33-30C-4, HGCs are required to contract only with a small employer insurer (an insurer that offers health insurance plans covering eligible employees of one or more small employers in Georgia) when that small employer insurer demonstrates: it is licensed and in good standing with the Department of Insurance; has the capacity to administer the group health insurance plans; has the ability to monitor/evaluate quality and cost effectiveness of care and applicable procedures; has the ability to conduct utilization management; has the ability to assure enrollees a sufficient number of healthcare providers (including specialists); and has a satisfactory grievance procedure and the ability to respond to enrollees' calls, questions and complaints. Federal law will also apply to these HGCs. The Department must submit a report on January 1, 2011, on effectiveness of these HGCs.
SB 409 – Sen. Ronnie Chance (R-Tyrone) offered this Bill providing for a statement of intent of the General Assembly relative to the granting of a tax break or incentive to users of raw forest products (those that are (1) derived from woody biomass; (2) forest wood waste, including residual tops and limbs of trees, unused cull trees, precommercial thinnings, and wood or debris from noncommercial tree species, slash, or brush; and (3) any wood chips or fibers or other organic substances and any inorganic substances recovered from forest wood waste or produced as byproducts of processing wood) at O.C.G.A. § 48-1-10. The intention is that the tax break, credit or rebate or other economic incentive granted would be extended on an equitable basis to all users of these raw forest products to establish and maintain parity within that segment of the economy.
SB 410 Sen. John Douglas (R-Social Circle) authored this Bill to designate ambulances as emergency vehicles and exclude ambulance providers from certain permit requirements in O.C.G.A. § 40-8-92, providing specifically that they will no longer be required to have a permit for the use of a red light.
SB 411 – Sen. Ralph Hudgens (R-Hull) proposed this Bill adding a new Code Section at O.C.G.A. § 33-29-23 which states:
Insurers that include and operate wellness and health promotion programs, disease and condition management programs, health risk appraisal programs, and similar provisions in their health benefit polices in keeping with federal requirements shall not be considered to be engaging in unfair trade practices under Code Section 33-6-4 with respect to references to the practices of illegal inducements, unfair discrimination, and rebating.
It further amends O.C.G.A. § 33-30-16:
Insurers that include and operate wellness and health promotion programs, disease and condition management programs, health risk appraisal programs, and similar provisions in their health benefit polices in keeping with federal requirements shall not be considered to be engaging in unfair trade practices under Code Section 33-6-4 with respect to references to the practices of illegal inducements, unfair discrimination, and rebating.
SB 412 – Sen. Greg Goggans (R-Douglas) offered this set of Code amendments beginning with O.C.G.A. § 31-1-11 to provide for legislative findings for electronic health initiatives (including the benefits of telehealth) and creation of the five-member "Georgia eHealth Advisory Council" (including the Commissioners of the Departments of Community Health, Corrections, and Behavioral Health and Developmental Disabilities or their designees; director of the Division of Public Health or his/her designee; and a representative of the Georgia Trauma Care Network Commission). In addition to the four duties enumerated below, this Council, which will be attached to the Department of Community Health for administrative purposes, is to develop a five-year strategic plan, by no later than July 1, 2011, regarding electronic health initiatives. The duties required by this Council include:
(1) Advise and support appropriate parties within state government relating to development and implementation of an overall strategy for the adoption and use of telemedicine techniques and services in state funded health care and mental health programs;
(2) Develop strategies for sharing of services and coordination across agencies and state funded programs as they develop and implement telemedicine programs so as to eliminate duplicative efforts in this area;
(3) Advise appropriate parties within state government on issues related to the development and implementation of the health information infrastructure so as to promote electronic health record development and health information exchange; and
(4) Review all state contracts in the areas of telemedicine and electronic health records in order to ensure coordination with other agencies, to promote consolidation of contracts, and to encourage state contracts with nonprofit entities that promote and support telemedicine initiatives.
SB 418 – Sen. Buddy Carter (R-Poole) proposed establishment of a program for the monitoring of prescribing and dispensing Schedule II, III, IV, or V controlled substances by the Georgia Drugs and Narcotics Agency. This Bill amends Chapter 13 of Title 16. It defines "prescriber" as "a physician, dentist, scientific investigator, or other person licensed, registered, or otherwise authorized under the laws of this state to prescribe, distribute, dispense, conduct research with respect to, or administer a controlled substance in the course of professional practice or research in this state." It requires at O.C.G.A. § 16-13-57 that the Georgia Drugs and Narcotics Agency establish an "electronic data base to enhance and supplement the state's preexisting ability to review dispensed controlled substance prescriptions, thereby making it possible to minimize the impact the current labor intensive review process has on pharmacy and medical practices which dispense controlled substances." The Agency would consult with the Georgia Composite Medical Board and Georgia State Board of Pharmacy to establish such review of these controlled substances. The electronic data base and review process would be overseen and directed by the Board of Pharmacy. At O.C.G.A. § 16-13-59, it outlines what information a dispenser (a practitioner who dispenses drugs) must submit to the Agency by electronic means on a minimum of a weekly basis. Confidentiality of information is addressed in O.C.G.A. § 16-13-60; the Agency can, however, provide data to public or private entities for statistical, research or educational purposes (after eliminating information used to identify prescribers or individual patients). It also establishes in O.C.G.A. § 16-13-61 a five-member "Electronic Database Review Advisory Committee" to consult with and advise the Agency concerning the establishment, maintenance, and operation of how prescriptions are electronically reviewed. These five persons would be composed of a representative from: the Georgia Composite Medical Board; the Georgia State Board of Pharmacy; the Georgia Board of Dentistry; the consumers (appointed by the Agency); and a specialty profession which deals in addictive medicine, oncology or hospice or other such profession whose duties relate to controlled substances. There are also penalties included for violations.
SB 419 – Sen. Ron Ramsey (D-Decatur) proposed this initiative providing for the notation on driver's licenses of a diagnosis of post-traumatic stress disorder (which would be required to have a sworn statement from a Georgia-licensed person to practice medicine or psychology verifying such diagnosis) at O.C.G.A. § 40-5-38.
SB 420 – Sen. Ron Ramsey (D-Decatur) authored this Bill adding a new Code Section at O.C.G.A. § 20-1-10 determining perfect attendance awards and when absences due to illness or injury caused by conditions which create a statewide recognized state of emergency or epidemic will not be counted as absences. This would apply to awards given for the 2009-2010 school year and all future school years.
Committee News
House Judiciary Committee
The House Judiciary Committee cleared a Committee Substitute to HR 178, the Resolution by Rep. Kevin Levitas (D-Atlanta), which would amend Georgia's Constitution to "provide for contracts that limit competitive activities between or among employers and employees, distributors, and manufacturers, lessors and lessees, partnerships and partners, franchisors and franchisees, sellers and purchasers of a business or commercial enterprise, or two or more employees; to provide for the submission of this amendment for ratification or rejection." These changes would be included in Article III, Section VI, Paragraph V of the Constitution at subparagraph (c). It grants the authority to courts by general law the power to limit the duration, geographic area, and scope of prohibited activities provided in a contract or agreement restricting or regulating competitive activities to render such contract or agreement reasonable under the circumstances for which it was made."
The House Judiciary Committee also passed out a Substitute to HB 917, the repeal of the "Uniform Foreign Depositions Act." It replaces this Act with the "Uniform Interstate Depositions and Discovery Act." The biggest change is that the Committee Substitute requires that the issuance of this subpoena by a party is to be made through a request of the clerk of the superior court of the county in which the person receiving the subpoena resides. In the original Bill, the party seeking the subpoena was to "submit a foreign subpoena to a clerk of court in the county in which discovery is sought to be conducted in this state."
House Education Committee
The House Education Committee has reported out a Committee Substitute on HB 977 by Rep. Ed Rynders (R-Albany), the amendment to the "Quality Basic Education Act," prohibiting the use of State funds to provide for a salary increase for the local school superintendent or administrators during a school year in which the local board of education has furloughed teachers, paraprofessionals, cafeteria workers, bus drivers, custodians, support staff, or other non-administrative positions. The Committee added the caveat that this limitation would not apply to any "step increases on the State salary schedule which are applicable to a superintendent or administrator."
The Committee also voted out a Committee Substitute to HB 936, amending O.C.G.A. § 20-2-188 providing that the replacement allowance for purchasing new school buses must also be available to refurbish existing school buses. The Substitute stripped out the seven-year limitation that any school buses that are refurbished using bus replacement funds from the state board shall not be eligible for any state funds for replacement or refurbishment. It further stripped out the following language: "the total amount of funds expended by the state and local board for refurbishing a school bus shall not exceed $30,000.00." Language was also added in Committee that "refurbishment of a school bus shall be done by the original bus manufacturer or by a dealer of such manufacturer."
SB 84 was also reported out of the Committee by Committee Substitute. This Bill revises provisions relating to the eligibility for election as a local board of education member and other requirements of local boards of education.
Senate Education and Youth Committee
The Senate Education and Youth Committee reported out a Substitute to SB 132, the "Dropout Deterrent Act." It revises the age of mandatory education in O.C.G.A. § 20-2-690.1(a) providing that mandatory attendance in a public school, private school, or home school program is required for children between their "sixth and seventeenth birthdays; provided, however, that a parent or guardian may sign a waiver for his or her child to opt out of a traditional public school setting between the age of 16 and 17 so long as the child enrolls in and attends a community college or technical school, which for purposes of this subsection shall be considered attendance in a public school, until such child reaches the age of 17." Current law requires attendance between a child's sixth and sixteenth birthdays.
The Committee also cleared a Substitute to SB 298, amending O.C.G.A. § 20-2-142. This Bill proposes to require as a part of course of study in secondary health education a course in basic first aid. The Bill's author, Sen. Valencia Seay (D-Riverdale), proposed that "the basic first-aid course shall provide standards for certification and provide an opportunity for participating students to obtain a basic first-aid certification. Certification in basic first aid shall be required as a condition of graduation from high school in 2014 and any year thereafter." However, this language was stripped in Committee.
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.