Georgia's Hospitals Not Feeling Lucky
March 17, 2010
Some of Georgia's hospitals were not seeing the luck of the Irish today. In two different House Committee meetings, taking place at the same time, two different proposals that had not been posted on either Committee agenda were addressed. The House Health and Human Services Committee passed Rep. Mark Butler's (R-Carrollton) proposal permitting an exemption from the State's Certificate of Need Law for new services for any current Level I or Level II trauma facility or any hospital which would agree to become such trauma facility for ten years. This initiative comes in the wake of the hotly contested Certificate of Need Law debates that occurred over the last three years. HB 1061 now moves to the House Rules Committee. In another meeting, across the street, the House Ways and Means Subcommittee on Tax Reform took up discussions of removal the elimination of the sales tax exemption presently permitted the authority hospitals. Rep. David Knight (R-Griffin) explained his idea on this exemption. However, not action was taken Rep. Knight's idea.
Floor News
Senate
The Senate took up the following pieces of legislation:
- SB 150, addressing "Junk Dealers," passed with a vote of 52 to one.
- SB 364, altering Georgia's law pertaining to massage therapists suspending therapists' licenses for convictions of sexual offenses, passed with a vote of 51 to one.
- SB 368, by Sen. Bill Jackson (R-Appling), passed with a vote of 50 to zero. It amends Georgia's Fair Business Practices Act of 1975.
- SB 369, modifying agencies/instrumentalities in which housing authorities/political subdivisions can invest funds, passed with a vote of 51 to two.
- SB 402, amending Georgia's law on land conservation, passed with a vote of 53 to zero.
- SB 406 passed with a vote of 33 to 20. It provides for on-line registration of voters for Georgia elections.
- SB 427, establishing the Georgia Foundation for Public Education, passed with a vote of 51 to zero.
- SR 794, a Constitutional Amendment proposal by Sen. Judson Hill (R-Marietta), was lost with a vote of 34 to 19 and a notice to reconsider was made. His Resolution proposed the Health Care Freedom of Choice so that no federal law could compel a person to participate in any healthcare system.
House
The House took up a lengthy Rules Calendar today, acting on the following Legislation:
HB 1060 passed handily today, 158 to one. Rep. Ron Stephens (R-Savannah) presented this Bill, which allows the Georgia Ports Authority to obtain its own credit rating instead of using a bank credit facility (such as a letter of credit). Last May, a large portion of the Georgia Ports Authority’s revenue bonds failed to remarket due to a major bank credit rating downgrade. Under this Bill, The Georgia Ports Authority must get approval from the Georgia State Financing and Investment Commission prior to issuing any bonds and financial plans are reviewed by the state’s financial advisor. Also in the bill the definition of “project” is clarified to include cranes, cargo handling equipment, and other equipment currently used by the Authority.
HB 1258, presented by Rep. James Mills (R-Gainesville) passed 160 to two. HB 1258 allows unclaimed recovery zone bonds to be pooled together, allowing Georgia to take advantage of time sensitive borrowing and investment opportunities made available through the Federal American Recovery and Reinvestment Act. The deadline for said funds expires December 31, 2010.
HB 1224 was presented today by Rep. Mark Hamilton (R-Cumming). HB 1224 provides that a person charged with driving in violation of a restriction requiring that he or she wear eyeglasses or contact lenses, such person shall not be guilty of such offense if he or she presents the trial court with admissible medical or other evidence sufficient to demonstrate to the satisfaction of the trial court that he or she no longer suffers from the vision condition that resulted in the imposition of such restriction. HB 1224 passed 154 to zero.
HB 1082 was presented by Rep. Jay Powell (R-Camilla) today on the Floor. HB 1082 expands the current Freeport inventory exemption. It allows local governments to hold a local referendum to exempt inventory of finished goods. Currently, the Freeport exemption only applies to inventory for final destination outside Georgia or inventory in the process of manufacture of production. This Bill creates a “Level Two” Freeport exemption that would include all inventory of a business not otherwise qualified for the current, or “Level One” Freeport exemption. The county or city may exempt 20, 40, 60, 80, or 100 percent of such inventory, subject to local referendum. HB 1082 passed 151 to four.
HB 24, Rep. Wendell Willard (R-Sandy Springs) presented this Bill which would, update and rewrite Georgia's Evidence Code (Title 24). The Bill is the result of a State Bar Study Committee, which began in 2005. This Bill largely adopts the Federal Rules of Evidence to the extent that the interpretation is consistent with the Georgia Constitution, and brings Georgia in line with forty-two other states that have similarly adopted a version of the Federal Rules of Evidence. HB 24 passed 150 to 12.
HB 1046, presented by Rep. Wendell Willard (R-Sandy Springs), removes the sunset provision for The Family Court Division of the Superior Court of Fulton County. It further provides that the family court division shall continue until a majority of the judges of the Superior Court of Fulton County vote to discontinue it. HB 1046 passed 154 to two.
HB 965, presented by Rep. Doug McKillip (D-Athens), amends O.C.G.A. § 40-6-144 to allow persons of all ages to ride bicycles on sidewalks if a local government chooses to allow the same in their ordinance. The same section is also amended relating to vehicles yielding to pedestrians to require vehicles to also yield to bicycles. HB 965 passed 155 to zero.
Rep. Larry O'Neal (R-Bonaire) presented his HR 1106 to the House. HR 1106 is an urging resolution to congress to adopt an "Honor and Remember" Flag for the service members that have fallen in service to our country. HR 1106 passed 159 to zero.
HB 990, offered by Rep. Alan Powell (R-Hartwell), passed the House 156 to two today. HB 990 is a housekeeping Bill to bring Georgia in line with federal motor carrier laws.
HB 1192, presented by Rep. Larry O'Neal (R-Bonaire), passed the House 159 to zero. HB 1192 relates to the real estate transfer tax when the encumbered property lies in more than one county. Currently, the entire tax is paid to the first county in which the filer presents the instrument for recording. The clerk of the first county has no way of determining the appropriate amount of tax to forward to the other counties. Taxpayers must wait to file in the other counties after they receive their first filing back from the clerk. . Under this Bill, the filer will pay the tax to the clerk of each county. For purposes of determining the proportional value, the filer may use the county tax assessment. This Bill also provides for filing of duplicate original instruments in each county where the secured property being encumbered is located.
Rep. David Knight (R-Griffin) presented HB 1093. HB 1093 is designed to improve collection of state and local sales and use taxes. It provides that, if a county or city chooses to participate in this program, that they will send certain pieces of information to the Georgia Department of Revenue about the businesses that are paying local occupation taxes in that jurisdiction. This will allow the Department of Revenue to match those businesses with the Department’s list of businesses that have registered to collect and remit sales taxes to the Department. This will allow them to identify those businesses should be collecting sales taxes but are not doing so. The provisions in this Bill will only apply to those counties and cities that adopt a resolution consenting to participate in this program. HB 1093 passed 160 to two.
HB 1106, authored by Rep. Gene Maddox (R-Cairo), requires that all animals brought into a shelter be scanned universal microchip reader within 24 hours, or as soon as possible, prior to euthanizing any dog, cat, or other large animal traditionally kept as household pets. HB 1106 passed 150 to zero.
HB 1118 was presented today by Rep. Tom Weldon (R-Ringgold). This Bill amends Article 1 of Chapter 11 of Title 19 to align state law with federal law with respect to child support orders and access to medical insurance coverage for children. The revisions to the Code are necessary to ensure that federal funds continue to be received by the State. HB 1118 passed 154 to two.
Rep. Jay Roberts (R-Ocilla) presented HB 1186 to the House today. HB 1186 defines what constitutes “public property” for purposes of the ad valorem tax exemption for public property. It provides that property qualifying as a public private transportation project which is owned or leased by the State, State agency, or other governmental entity and which is developed, operated, or held by a private partner shall constitute “public property” and shall be exempt from ad valorem tax. HB 1186 passed 139 to 16.
New Legislation
HB 299- Rep. David Knight (R-Griffin) offered these changes to Chapter 8 of Title 48, relating to sales and use taxes. It defines "business" as any activity engaged in by any person or caused to be engaged in by any person with the object of direct or indirect gain, benefit, or advantage.
HB 1402 – Rep. Larry O'Neal (R-Bonaire) authored a new Code Section for O.C.G.A. § 20-3-330 providing for deferment of repayment for Peace Corps volunteers for recipients of service cancelable loans in the engineering profession. It would only apply to individuals who received such loans prior to January 1, 2010.
HB 1404 – Rep. Paul Battles (R-Cartersville) authored this proposal amending Title 40 providing definitions for the terms "taxicab" and "limousine." It further addresses the registration and licensing of motor vehicles, requiring persons who purchase or acquire a vehicle to register and obtain, or transfer, a license plate to operate a vehicle from the county tag agent in their county of residence no later than three business days after the date of purchase or acquisition of the vehicle by presenting certain information to the county tag agent (certificate of title; proof of owner's insurance coverage; satisfactory compliance with the Georgia Motor Vehicle Emission Inspection and Maintenance Act; and satisfactory proof that al fees, permits, and taxes have been paid). The Bill also revises entirely O.C.G.A. § 40-2-137 concerning notification of termination of insurance coverage of vehicles. It adds in O.C.G.A. § 40-2-168 that owners of taxicabs or limousines must, before operating in Georgia, pay an annual registration fee of $25.00 and be issued a distinctive plate by the Commissioner. It also addresses the electronic delivery of titles in O.C.G.A. § 40-3-26 and instances where those titles have not been delivered electronically.
HB 1405 – Rep. Larry O'Neal (R-Bonaire) proposed this initiative creating the 2010 Special Council on Tax Reform and Fairness for Georgians and the Special Joint Committee on Georgia Revenue Structure. This proposal would be added at Chapter 12 of Title 28. This Special Joint Committee would come up with recommendations which would then be proposed in the 2011 Session. The Special Council would consist of eleven members, including three economists and the Special Joint Committee would be made up of twelve House and Senate Members.
HB 1406 – Rep. Quincy Murphy (D-Augusta) authored this Bill proposing enactment of the "Student-Athletes Right to Know Act" in O.C.G.A. § 20-2-317.1. it would require a recruiter of student-athletes residing in Georgia to provide the student-athletes certain information relating to the institution's athletic program within one week of initiating personal contact with that individual. Scholarship offers would be required to be made in writing within one week of any verbal offer being made and prior the student-athlete signing an athletic scholarship agreement with an institution of post-secondary education. "Recruiter" is defined as a "person who attempts to induce, encourage, or reward a student-athlete's application, enrollment, or attendance at a public or private institution of postsecondary education in order to have the student-athlete participate in intercollegiate sporting events, contests, exhibitions, or programs at that institution."
HB 1407 – Rep. Carl Rogers (R-Gainesville) proposed this creation of a new Code Section in O.C.G.A. § 49-4-158 providing for a single administrator for dental services for Medicaid recipients and PeachCare for Kids participants.
HB 1408 – Rep. John Meadows (R-Calhoun) offered a new Code Section for O.C.G.A. § 48-8-6.1 providing for the collection of data with respect to distribution of sales tax proceeds where the taxpayer resides within a county or municipality but has a postal address in a separate county or municipality or resides within a county where the zip code applicable to that county also applies to one or more other counties. In those instances, the taxpayer will be required to provide both the physical address and postal address, including the nine-digit zip codes for each.
HB 1409 – Rep. James Mills (R-Gainesville) offered a new subsection for O.C.G.A. § 49-4-142 providing that any formula which is used to determine the amount of the State's portion of Medicaid reimbursement to nonprofit hospitals must take into account the amount the nonprofit hospital has on deposit in state banks.
HB 1435 – Rep. Ed Lindsey (R-Atlanta) offered changes to Title 31, relating to consent for surgical or medical treatment, providing for the nourishment or hydration of a person receiving health care. These changes would require that no person receiving health care be deprived of nourishment or hydration except; to improve the patient's medical condition or the patient has a medical condition which can be reasonably expected to result in the imminent death of the patient and the nourishment or hydration will only prolong the patient's pain and suffering.
HB 1436 – Rep. David Knight (R-Griffin) authored amendments to Title 31, relating to the regulation and construction of hospitals and other health care facilities. These changes would require any compensated officer, director, trustee, or board member of a nonprofit corporation to annually file an ethics report, no later than 90 days after the ending of the fiscal year. All compensation from the non-profit hospital must be listed on this report. Additionally, each hospital shall annually provide disclosure of community benefits by filing the following documents with the Department of Community Health; a copy of the IRS Form 990, the Department's annual hospital questionnaire, disclosing the cost of indigent and charity care provided during the preceding year in a format designated by the Department. Failure to submit these forms within 90 days of the close of the fiscal year would result in a $500 per day penalty, not to exceed $25,000 total. These proceeds would be deposited in the Indigent Care Trust Fund.
Committee News
House Children and Youth Committee
HB 1407, by Rep. Carl Rogers (R-Gainesville) and Rep. Mickey Channell (R-Greensboro), cleared the Committee by way of Committee Substitute. This Bill, newly introduced, provides that a single administrator for dental services be used for Medicaid recipients and PeachCare for Kids participants. It would further require the Department of Community Health to competitively bid out and contract with such single administrator for services. There is a potential savings of $50 million if this Bill passes. The Georgia Dental Association spoke in favor of the Bill as presently there are large administrative fees being claimed by the Care Management Organizations (those recited today included Amerigroup and WellCare) and Doral. Dentists are leaving the program because of present low payments for their services. The Department of Community Health claimed it was neutral on the initiative.
A lengthy hearing was held on Rep. Karla Drenner's (D-Avondale Estates) Bill, HB 853, to regulate tanning facilities in Georgia. Rep. Drenner noted that tanning beds are twelve times more powerful than the midday sun. Those who are under age 35 are 75% more likely to develop melanoma when using such facilities. In 2004, it costs $291 million for care and treatment of individuals with melanoma. A Georgia dermatologist was on hand at today's meeting to provide expert testimony. After several amendments were made, including changing the proposal's effective date to January 1, 2011, the Bill passed as a Committee Substitute and now makes its way to the House Rules Committee.
As mentioned above, HB 1061, by Rep. Mark Butler (R-Carrollton), passed out of the Committee. No other testimony was provided on the Bill from the public. HB 1061 proposes to enact the "Trauma Care Expansion Act of 2010," exempting hospitals which have been designated as a Level I or II trauma center by the Department of Community Health from Certificate of Need requirements.
This Committee then heard from Rep. Chuck Martin (R-Alpharetta) on HB 850, the proposal to regulate assisted living facilities. Rep. Martin worked through various changes made to the proposal but the Committee took no vote on the Bill. The Georgia Health Care Association (formerly the Georgia Nursing Home Association) has opposed the Bill but it is working on the author to address some of its members' concerns. Another hearing will be held on the Bill on Monday of next week.
House Governmental Affairs
Rep. Mark Butler (R-Carrollton) presented HB 1324 to the Committee today. He explained that HB 1324 seeks to correct any errors and omissions from HB 228, the Bill that reorganized the Department of Human Resources and the Department of Community Health last year. Additional language also was inserted into HB 1324, which will require the Department of Family and Children's Services to notify the next of kin when a parent has given up custody of a child. HB 1324 received a "do pass" recommendation from the Committee.
House Ways and Means- Sales Tax Subcommittee
Rep. David Knight's (R-Griffin) bill which removes the sales tax exemption for non-profit hospitals received a hearing only today. HB 299, Rep. Knights' legislation, seeks to delete the sales tax exemption of purchases by authority hospitals, and remove the existing exemption for nonprofit hospitals. Rep. Knight claimed that this was a huge hole in Georgia's revenue and that many for profit hospitals give just as much in charitable, uncompensated care as many non-profit hospitals. Rep. Stacey Abrams (D-Atlanta) stated that non-profit have to follow many more guidelines with their profits, than do for profit hospitals. She also went on to explain that uncompensated care is different than receiving Medicaid and Medicare patients. No public comment was taken on this matter today.
House Insurance- Life and Health Subcommittee
A new Committee Substitute on HB 1184 was presented to the Life and Health Subcommittee today. HB 1184 changes the Insurance Commissioner's duties. There were also technical changes incorporated into the Bill from the Insurance Commissioner. Insurers Kaiser, Blue Cross amended the Bill to protect Georgia-domiciled companies. Georgia companies will be permitted to offer substantially equivalent policies which was not in the prior version of the legislation. If the insurance contract requires arbitration, Georgians are not required to go out of state for such arbitration or to go to court. Similar legislation passed in Wyoming and is pending in 22 other states. The Bill passed with a five to two vote.
Sen. Ralph Hudgens presented SB 50, the rental network Bill. It has been considered model legislation from national groups. While the Subcommittee took testimony, they held the Bill.
SB 310, the proposal by Sen. Lee Hawkins (R-Gainesville), passed out of the Subcommittee. The Subcommittee heard some public testimony including some from the lobbyist for CVS Caremark. The Bill will regulate and license pharmacy benefit managers in Georgia.
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.