Happy Groundhog Day! We can hope that General Beauregard Lee was right when he did not see his shadow this morning – we all could use an early spring.

Big news relating to "Sunday sales" – yes, the topic of Sunday sales of alcohol was addressed this afternoon in the Senate State and Local Government Operations Committee. Shopping for beer and wine at Publix after church may become a reality if things proceed like today's Committee meeting, where there was only one dissenting vote as SB 10 sailed through the Committee.  Sen. John Bulloch (R-Ochlocknee) is the author to SB 10.

Floor News

House

Today during the House session, the family of former Georgia State Trooper Chadwick LeCroy was honored as a result of his tragic death in the line of duty just over a month ago.  Other members of the Georgia State Patrol were in attendance as well.  Speaker of the House David Ralston submitted HR 96 in tribute to Mr. LeCroy.

Mayor of Atlanta Kasim Reed made a brief speech to the Georgia House and asked the legislators to make the hard decisions and strive to be first in the South again as a State.

The House also gathered for their official 2011 group picture.

Senate

In the Senate, Dr. Michael Hagues was honored as doctor of the day and Senators took pictures with their pages.

A breakfast was announced for Thursday morning which will serve as a way for legislators to connect with Georgia families that have been affected by Hemophilia and other bleeding disorders.

New Legislation

HB 142 – Rep. Wendell Willard (R-Sandy Springs) introduced the Code "clean up" Bill dealing with the obsolete references; repealed laws; or other items which have been declared unconstitutional or have been preempted or superseded by subsequent laws. 

HB 143 – Rep. Wendell Willard (R-Sandy Springs) authored this initiative, again in response to the work of the Code Revision Commission, to revise, modernize and correct errors relating to Title 21, relating to Georgia's election laws.

HB 144 – Rep. Wendell Willard (R-Sandy Springs) proposed this Bill to modernize, and correct errors or omissions from the Code in Title 47.

HB 145 – Rep. Matt Hatchett (R-Dublin) authored this initiative amending definitions in the "Georgia Physical Therapy Act" at O.C.G.A. § 43-33-3(7) adding "dry needling" to the definition of "physical therapy."

HB 146 – Rep. Doug McKillip (R-Athens) offered this Bill to amend the income tax credit for clean energy property as found in O.C.G.A. § 48-7-29.14.  It amends references to the American Society of Heating, Refrigerating, and Air Conditioning Engineers 2004 standards, updating those to the "ASHRAE" 2009 standards. Further it proposes to extend this credit, which is currently to expire on December 31, 2012, to December 31, 2014.  The credit permitted would also remain to be taken in the taxable year in which the clean energy property is installed and taken against income tax or, if the taxpayer is an insurance company, against its gross premium tax – however, it adds now that any credit under this Code Section , allowed for calendar years 2012, 2013, or 2014, the entire credit may not be taken for the year in which the property is placed in service must be taken in four equal installments over four successive taxable years beginning with the taxable year in which the credit is allowed.  It also changes how the unused credit is allowed so that any unused "credit amount shall be allowed to be carried forward for five years from the close of the taxable year in which the credit was allowed."  The credits permitted in 2012 would not be allowed to total more than $10 million (now it is $2.5 million); and credits are also capped at $10 million each for years 2013 and 2014.  Tax credits will be permitted on a first come, first served basis.  The Commissioner is to keep a "priority waiting list" for these timely filed applications for the credits.

HB 147 – Rep. Ben Watson (R-Savannah) proposed changes to the "Patient Right to Know Act of 2001" in Chapter 34A of Title 43 to include information as to whether a physician has medical practice insurance as a part of the physician profile and it would further permit the patient to make the inquiry as to whether the physician carries medical malpractice insurance.

HB 148 – Rep. Maddox (R-Cairo) offered this Bill which would place extensive restrictions on the ownership and training of dangerous and vicious dogs.  This Bill would also make it so that court orders would allow for the euthanasia of dogs and would require owners to register their dangerous or vicious dogs with the State.

HB 149 – Rep. Tim Bearden (R-Villa Rica) proposed this initiative which would provide for the termination of magistrates under certain circumstances.

HB 150 – Rep. David Knight (R-Griffin) introduced this Bill, which would change certain definitions regarding excise taxes on rooms, lodgings, and accommodations.

HB 151 - Rep. David Knight (R-Griffin) proposed this Bill which would change the wording of tax code associated with motor fuel and road taxes.

HB 153 – Rep. Richard Smith (R-Columbus) offered this initiative which would set specific guidelines for how water conservation in Georgia would be enacted.  It would also create regulations for controlling water pollution and surface-water use.

HB 155 – Rep. Tom Weldon (R-Ringgold) proposed this Bill which would allow bonds to be issued for good behavior.

HB 156 – Rep. Mike Cheokas (D-Americus) proposed this Bill which would establish procedures for making payments for indemnification for death or disability.  The Bill would further change provisions related to the indemnification of injured state highway employees.

HB 157 – Rep. Tyrone Brooks (D-Atlanta) offered this Bill amending awards under the Georgia Crime Victims Emergency Fund found at O.C.G.A. §17-15-7(i).  He proposed a definition of the term "cold case" to mean a "criminal investigation which has been open at least three years and in which the investigators have exhausted all leads."  Claims would be capped at $3,000.00 for counseling and $2,000.00 for costs of attending criminal proceedings in conjunction with these cold cases if they are reopened.

HB 158 – Rep. James Mills (R-Gainesville) proposed amendments to Chapter 2 of Title 21 changing the dates of qualifying for a nonpartisan election and the holding of nonpartisan elections.  The Bill also adds additional requirements for write-in candidates and notices to be made with the intention to seek an office.

HB 159 – Rep. David Lucas (D-Macon) offered changes to HOPE scholarships and grants ineligibility as found in O.C.G.A. § 20-3-519.1(b).  It provides for a family income limit of $66,000.00 on eligibility for scholarships and grants awarded in calendar year 2012.  Future years would be adjusted by the Georgia Student Finance Commission, but must assure that all shortfall reserve subaccounts within the Lottery for Education Account remain fully funded.

HB 160 – Rep. Jay Powell (R-Camilla) authored a change for O.C.G.A. § 5-6-48(b) concerning what are grounds for dismissing appeals.  His Bill adds that certain appeals, which are improperly filed, may be dismissed by the court (this would be a direct appeal filed pursuant to O.C.G.A. § 5-6-34 and which should have been filed as an application for appeal pursuant to O.C.G.A. § 5-6-35).

HB 161 – Rep. Ann Purcell (R-Savannah) introduced this new Code Section for O.C.G.A. § 40-6-317 relating to the uniform rules of the road for motorcycles.  Specifically it addresses traffic regulations for motorcycles when they approach intersections controlled by traffic-control signals that utilize a vehicle detection device but which is inoperative because of the size of the motorcycle.

HB 162 – Rep. Ann Purcell (R-Savannah) proposed this change for O.C.G.A. § 42-1-18 pertaining to Georgia's Sexual Offender Registration Review Board. It adds that persons who are required to register on the State's Sexual Offender Registry are prohibited from photographing a minor without the permission of the minor's parent.

HB 163 – Rep. Dee Dawkins-Haigler (D-Atlanta) proposed this Bill that would not count in the population count used for Congressional and Legislative reapportionment prison inmates who were not residents of Georgia before incarceration but would count those who were residents at their last known address.

HB 164 – Rep. Matt Ramsey (R-Peachtree City) proposed new standards for the operation of coin operated amusement machines and business or nonprofit charity drawings so long as prizes are not awarded in cash. Gift cards may, however, be used under certain standards. The drawings are essentially characterized as not illegal lotteries s that they are permitted in certain circumstances. The Commissioner of Revenue is also authorized to retain some license fees for coin operated amusement machines for his administrative costs. 

HB 165 – Rep. Powell (R-Camilla) propose a mechanism whereby a city or county may create an exemption from the prohibition against selling alcohol for consumption of the premises , essentially a restaurant, within 300 feet of a housing authority. Basically, the city or county asks the Housing Authority for a recommendation on the alcohol license application within such 300 foot radius. 

HB 166 – Rep. Powell (R-Camilla) are proposing changes to the standards for qualifying as an engineer in training or professional engineer after certain effective dates.  After July 1, 2012, an engineer in training may not use eight years of experience in engineering as a substitute for the education and examination standards to become such an engineer. After July 1, 2014, the ability to obtain a professional engineering license based on 16 years experience and an examination (following qualification as an engineer in training) is changed such that a candidate must be an engineer in training first by education alone (not based on experience without a degree) but then the candidate only requires seven years experience in engineering.  The training requirements for land surveyors are also tightened. 

SB 39 – Sen. Johnny Grant (R-Milledgeville) proposed this Bill which would create mental health court divisions and provide for staffing and expenses.

SB 40 – Sen. Jack Murphy (R-Cumming) offered this initiative which would allow for public employers to be penalized for failure to utilize the federal work authorization program.  It would also call for certain private employers to make use of the federal work authorization program as well.

HR 112 – Rep. Brian Thomas (D-Gwinnett) proposed this Resolution which would create a non-lapsing trust fund or funds for purposes of hazardous waste management and solid waste management.

HR 123 – Rep. Edward Lindsey (R-Fulton) offered this initiative which designates February 7, 2011 as March of Dimes Georgia Chapter Day at the State Capitol.

SB 39 – Sen. Johnny Grant (R-Milledgeville) proposed this Bill which would create mental health court divisions and provide for staffing and expenses.

SB 40 – Sen. Jack Murphy (R-Cumming) offered this initiative which would allow for public employers to be penalized for failure to utilize the federal work authorization program.  It would also call for certain private employers to make use of the federal work authorization program as well.

Committee News

House Science and Technology Committee

At the House Science and Technology Committee meeting this morning, Members listened to presentations given by representatives from Georgia's technological community.  General Manager of the Advanced Technology Development Center, Nina Sawczuk, spoke about the need to continue to help Georgians start, launch, and build great technology companies.  A representative of the Georgia Technology Outreach Partnership emphasized the importance of utilizing the technological assets that are already available in the State.  Questions from the Committee members pertained to the Angels program and sought to define what the best strategies would be to attract new tech companies.

House Rules Committee

The House Rules Committee convened on Wednesday morning for the first time this year.  After adopting rules, members of the Committee introduced themselves and then heard from Rep. Jacobs (R-DeKalb) about HB 44.  In sum, this Bill would repeal code posting requirements as they relate to shopping carts in retail stores.  HB 107 was outlined as a way for a surviving spouse of a deceased Georgia employee to have the right to continue paying for health insurance.  Both bills were approved by the Committee before the meeting adjourned.

House Judiciary Committee - Rep. Jacobs Subcommittee

This Subcommittee met to discuss two specific bills.  The first was HB 40 presented by Rep. Tommy Benton (R-Jefferson) and it outlined a plan to have a new substance added to antifreeze so that it could no longer be consumed accidentally by children or animals.  Committee members voiced some concerns about the wording of the Bill as it relates to an effective date of July 1, 2012.  The second bill, HB 46, was presented by Rep. Jacobs (R-DeKalb) and is known as the Uniform Interstate Depositions and Discovery Act.  The Bill would organize the issuance and service of subpoenas between states and would allow for the production and inspection of documents as they relate to dispositions.

Senate Appropriations Committee - Insurance Subcommittee

The Senate Appropriations Committee's Insurance Subcommittee kicked off today's meeting by questioning Georgia Insurance Commissioner Ralph Hudgens about the proposed 2011 and 2012 budgets.  Commissioner Hudgens revealed the fact that 310 positions within his Department will be reduced to 204.  His only request from the Committee was that the job cuts not come from his IT division. 

The Commissioner of the Department of Labor, Mark Butler, was next on the agenda and he explained his issues with the Governor's proposed budget.  Committee members were concerned with the apparent loss of federal funds if all the budget cuts were in fact enacted.

Senate Judiciary Committee

Chairman Bill Hamrick (R-Carrollton) opened today's meeting by passing over the reviews of SB 15 and SB 31 in order to spend time looking at SB 27.  This Bill, presented by Sen. Hill (R-Marietta), would make it so that public works projects in Georgia would be required to use legal workers.  According to Sen. Hill, the Bill is intended to protect taxpayer's dollars and prevent illegal employment.  An individual from an organization representing Georgia General Contractors adamant opposed the Bill.  To the contrary, Mr. D.A. King of the Dustin Inman Immigration Society was very vocal in his presentation about the need to support legal employment and condemn those businesses which utilize illegal workers.  Committee members were concerned about the lack of provisions related to sub-contractors and the concept of being found criminally negligent.    

Special Joint Committee on Tax

The Special Joint Committee on Tax met this afternoon to learn about the Special Council on Tax Reform's Recommendations.  Chair of the Special Council, A.D. Frazier, was not present for the discussions which were led by another member of the Special Council, Economist Roger Tutterow.  Chairs of the Joint Committee, Rep. Mickey Channell (R-Greensboro) and Sen. Bill Heath (R-Bremen), oversaw the discussions.  Members of the Joint Committee present were: Sen. Steve Thompson; Sen. Robert Brown; Sen. Bill Cowsert; Sen. Mitch Seabaugh; Sen. Tommie Williams; Rep. Jan Jones; Rep. Larry O'Neal; Rep. Stacey Abrams; and Rep. Allen Peake. 

Chairman Channell noted that this "reform" as a long time in the making and it was time for comprehensive look at the State's tax structure. He thanked the Council for its countless hours expended on this work over the last seven months and which for which they received zero money.  Rep. Channell stressed that Lawmakers needed to understand the policy behind each recommendation. 

Roger Tutterow explained that the Council held six formal meetings and eleven fact finding sessions around the State. He provided their guiding principles in making their review for a growth-enhancing tax system.  It was a hard task given Georgia has been one of the states with the largest numbers of job losses during the latest economic downturn.  The Tax Council focused on the need to bring down the marginal tax rates for job growth which would lead to capital formation.  Dr. Tutterow indicated that the Tax Council agreed that the State could not have tax pyramid. Efficiency in the Georgia tax system was a critical component; the system needed to be easy with minimal distortions (on purchases).  Stability was another critical component and Georgia needs a broad tax base in order to achieve such. Clarity was another principle – the tax system must be predictable and easy to understand.  Another principle adopted was that the system needed to be fair and equitable with horizontal equity so comparable positioned persons are treated similarly.  The Tax Council agreed that their findings should be based upon fact (which would include a review of academic literature and findings from other states). Finally, the Tax Council proposed that a principle must include a good system for the resolution of tax appeals, which would need to be easy to navigate.

Georgia is 49th in the amount of tax revenue per capita and it is a State with a AAA bond rating (this includes money raised at state level – not money raised by local taxes).  Accounting for money raised by cities and counties, Georgia ranks in the middle in terms of revenue per capita.

The Tax Council's recommendations are to offset changes proposed for income taxes with more consumption taxes. He stressed that the Tax Council's recommendations are "tax neutral" and that was their mission from the beginning.

Economist Christine Ries, another member of the Tax Council, provided some additional background information on the Recommendations.  One interesting point she made was that in the Recommendations, "everyone gives something up and everyone gets something."

Dr. Ries noted that of total revenue generated of $15.1 billion (estimated for FY 2011), 48.1% of it is from personal income tax and 34.7% is from sales taxes.  She explained that Georgia needed to lower the tax on activities that it wishes to encourage and promote. She spent some time explaining that the personal income tax also includes many small or pass-through corporation taxes.  Corporate tax credits were proposed to be phased out; rather an economic development fund would be created which would be essentially governed by rules and regulations.  The "fund" would give out "credits" for entities based on the numbers of jobs that would create and the amount of capital investment that they make in the State.  Rep. Channell indicated he had concerns about the credits because there is no good "tracking" mechanism and he wanted to know how effective such a fund would be but he liked the idea of capping the "fund."

There were some questions raised by Rep. Abrams concerning the impact of the Recommendations on low-income families as she felt that they were at risk of being harmed. Dr. Ries took issue with these concerns noting some of the added costs were $6 per week more for groceries (with the imposition of the taxes on food sales) and the added costs for the other deductions to be eliminated.  Dr. Ries stated that these families could apply for the low-income tax credit; Rep. Abrams noted that these families essentially could not "wait" for the tax credit – they would be faced with decisions on whether to buy food or some other necessity.  Moreover, only 60% of the families eligible for food stamps in Georgia actually get them.  Dr. Ries stated that the United Way could help families (such as with their filing of taxes).  Dr. Ries and her colleagues estimate that the expenditure for the average Georgian is approximately $120 per person per week.  Rep. Peake argued that perhaps persons receiving WIC and/or food stamps would be financially better off with the filing of the credit.

The meeting adjourned after the Joint Committee decided to hold further discussions on the Tax Council's Recommendations on sales taxes for a later date.

House Health and Human Services Committee

Chairwoman Sharon Cooper (R-Marietta) hosted her first Committee meeting of the 2011 Session, introducing the new Members of the Committee and staff to all attendees.  New House Members include the following Representatives:  Josh Clark; Valerie Clark; Matt Hatchett; Ben Watson; BJ Pak; and Mickey Channell. 

Rep. Valerie Clark presented HB 99 to the Committee, explaining that the legislation was being brought at the request of the Secretary of State and its licensing division for LPNs.  She noted it was a "housekeeping" proposal to provide for fingerprint checks to be made on LPNs who have applied for licensure.  At present, there are 2,500 licenses requested annually and the licensing board has found 5-10% with "issues" such as having alcohol consumption on their job sites or other such problems.  This added fingerprint would not cost the State more as there is a $25 fee for license applications.  The board uses a third-party vendor, Cogent, to work with the GBI in making these background checks (the fingerprint checks are done for RNs).  Rep. Joe Wilkinson (R-Atlanta) moved that the Bill pass and his motion carried without discussion.

Senate Health and Human Services Committee

Among actions and discussions from this Committee, a presentation was made by the Atlanta Community Food Bank and its sister food banks about the work which they perform across all 159 counties in Georgia.  Last year, the General Assembly eliminated the sales and use tax exemption that the Food Banks held.  That exemption allowed these nonprofit entities to purchase more foods to help needy families. The Food Banks asked for support because of the shortage of resources and pressing logistics issues.  Sen. Nan Orrock (D-Atlanta) asked for additional information from the Food Banks on their maintenance of efforts as they supply the Department of Human Services the ability to draw down more federal funding.

Senate Appropriations Committee – Education Subcommittee

Sen. Bill Heath (R-Bremen) conducted a hearing this afternoon with presentations from the Department of Education on the FY 2011 Amended Budget.  Key topics involved finding the funding to continue providing meals for pre-K children and making sure that local school boards would not be overburdened by State budgetary cuts.  COO of the Georgia Department of Education, Scott Austensen, was questioned by Committee members about the number of staff positions in the central office as well as the status of charter schools.  According to Mr. Austensen, protecting the technological area of the education budget was of utmost importance.

Some additional questions related to proposed changes to the Governor's Honors Program which is currently proposed to receive a 4.2% reduction but receive no programmatic changes.  Sen. Heath asked if a "fee" had been considered; yes, a fee has been considered at approximately $170.  The total cost for a student to participate in the Governor's Honors Program is approximately $2,000 so the fee would be less than ten percent of the cost.

Residential Treatment Centers' funding from the Non-Quality Basic Education Formula Grants also raised questions.  These moneys are supplemental to the Quality Basic Education funding and are not based on a per student formula but are intended to cover the expenses of educating the child per Mr. Austenson.  Sen. Heath asked for actual enrollment numbers for these facilities; Mr. Austenson explained that many times the students are not there for a full year.  He further noted that he had been working with the Centers to determine if there is a way to "normalize" enrollment or find a better "fit" with special education Quality Basic Education funding.

Sen. John Bullock (R-Ochlocknee) expressed concerns about any funding changes which would impact the local governments. Furloughs are a big concern because otherwise local governments must raise taxes to cover costs of instruction.

Another area that raised questions related to the Testing Program.  While there is no reduction proposed, Sen. Fran Millar (R-Dunwoody) noted that the State needs to address the numbers of tests that currently mandated, noting that he has been told that Georgia tests 90 out of 180 days of instruction.  Mr. Austenson explained that Superintendent Barge was committed to looking at the testing matter; any changes to testing would impact the State's Budget.

House Appropriations Committee – Human Relations Subcommittee

The House Appropriations Subcommittee on Human Services held a long hearing Wednesday afternoon on the budgets of the Department of Veterans Affairs and the Department of Behavioral Health and Developmental Disabilities ("DBHDD").  The controversial focus was on the DBHDD budget because it includes savings from the closure of the State mental hospital in Rome, Georgia.  This closure was one step in Georgia's implementation of its settlement agreement with the federal Department of Justice about the mental health system.  Legislators from Rome asked for a more extensive public hearing on the issue and numerous stakeholder and advocacy groups testified for nearly two hours. 

The Governor had included in the budget the closure of the Rome facility on April 1, 2011, with a resulting savings in the 2011 amended and the 2012 big budget. The snow storm had prevented any prior notice and discussion of this proposal by DBHDD with Rome stakeholders and a fire storm ensued. The Department first announced that the April 1 date was flexible and then scurried to put in place some contractual arrangements to build up community services.  The plans included adding an assertive community treatment team in the community service board and other case management teams and services.  The two Community Service Boards ("CSBs") would also receive funds for new crisis stabilization units and DBHDD would contract with at least two community hospitals in Region 1 to take inpatients the regional hospital would no longer serve.  Plans accelerated for enough housing placements in the community for the developmentally disabled patients at the Rome hospital and the forensic patients were slated to move to the units at the State hospitals in Atlanta or Columbus.

Today, advocates and stakeholders basically supported the hospital closure, but only after such time as the community services and housing units could be started and are able to absorb the inpatients in the hospitals.   The Sheriff's Association had been particularly upset because it believes that the settlement agreement does not address the serious issues with transportation of civilly committed patients by the county sheriffs and because the issues of patients in jails who suffer from mental illness was not very well addressed in the settlement agreement. They said so today.  Witnesses included River Edge, the Macon Community Services Board that has responsibility for Milledgeville and Baldwin County. River Edge did report on services the CSB had added to Oconee Regional Medical Center to assist with emergency room backup of civilly commitment patients and a community clinic in Baldwin County to serve patients who would otherwise go to the state hospital. The State had closed the Powell Building at Central State Hospital and was now adding these Milledgeville services to handle the aftermath.  The Gwinnett Rockdale Newton CSB also testified that it could handle additional services for patients who would have otherwise gone to the regional hospital.

Support for the settlement agreement came from Mental Health America, NAMI, the Council on Developmental Disabilities, Easter Seals, Georgia Substance Abuse Council, Georgia Peer Support Network and many others. The basic tone was supportive of the ability of consumers in recovery to live better in communities, but caution that support services had to be in place first.  The Council on Substance Abuse accented that substance abuse issues are under developed and under treated in the settlement agreement.