The House and Senate adopted a new Adjournment Resolution today, moving Day 30 (Crossover Day) to Friday, March 26, 2010.  This move provides Lawmakers more time to get Bills out of Committee and additional time to negotiate issues with the State's Budget.  The Schedule now is as follows:

Tuesday, March 23, 2010 – in adjournment
Wednesday, March 24, 2010 – Day 29 of Legislative Session
Thursday, March 25, 2010 – in adjournment
Friday, March 26, 2010 – Day 30 of Legislative Session

Georgia's nonprofit hospitals had a trying, difficult day dealing with the House of Representatives.  Lawmakers, in what appeared to be an attempt to bring the nonprofit hospitals around the State to an agreement on what they would ante up in terms of financial "gives" to the State's Medicaid funding, placed HB 1061, the Bill by Rep. Mark Butler (R-Carrollton) on a Supplemental House Rules Calendar and then pushed HB 299, by Rep. David Knight (R-Griffin through the House Ways and Means Committee without any public input.  The nonprofit hospitals were anguished over both moves while their leadership was attempting to work out details of an agreement with the Governor, Lt. Governor, and Speaker of the House on a Budget proposal.  HB 1061 would permit those Level I and II trauma centers to be exempt from Certificate of Need requirements, if they agreed to participate in the trauma program for ten years; the Bill was the last item in the House late yesterday and the Speaker pulled the Bill placing it on Wednesday's calendar instead.  Thus, no vote was taken but may take place Wednesday.   Meanwhile, in the House Ways and Means Committee, Rep. Larry O'Neal (R-Bonaire) and chairman of the House Ways and Means Committee spearheaded passage, of Rep. Knight's Bill HB 299 eliminating the current sales and use tax exemption which nonprofit hospitals are presently permitted, by a vote of 12 to six.  This elimination will cost these hospitals millions, virtually eliminating many of the facilities' profit margins.

Also, in "tort reform news," the Georgia Supreme Court published its decision in Atlanta Oculoplastic Surgery, P.C. v. Nestlehutt, striking down the non-economic damages cap which had been enacted as part of the Tort Reform Act of 2005.  The Court's decision noted that the damages cap violates the constitutional right to a jury trial, noting that the right to a jury trial includes the right to have the jury determine the amount of damages awarded to a plaintiff and that non-economic damages have long been recognized as an element of total damages in medical malpractice cases.  Requiring the court to reduce a non-economic damages award, as determined by a jury, when that award exceeds the statutory limit in O.C.G.A. § 51-13-1, "clearly nullifies the jury's finding of fact regarding damages and thereby undermines the jury's basic function."

At the Day's end, the State's Democrats partied a bit in the Georgia World Congress Center celebrating Jefferson Jackson Day as well as the recent passage of President Obama's healthcare reform bill.

Floor News

Senate

Sen. David Adelman (D-Decatur) resigned his State Senate today.  Sen. Adelman has been named the United States Ambassador to Singapore under the Obama Administration.  He will be sworn in as the Ambassador this coming weekend and is expected to head to begin his new duties next week.  Staff of the Gold Dome Report wish the United State's newly named Ambassador Adelman and his family well in this new chapter of their lives.

The Senate's Rules Calendar for the day had the following items:

SB 338	Georgia Sports Hall of Fame Authority; designate signs commemorating significant sporting achievements (TRANS-18th) – This Bill passed with a vote of 44 to two.
SB 343	Public Administration; offenses; clarify crime of impersonating an officer include firefighter/public safety personnel (Substitute) (PUB SAF-48th) – This measure cleared with a vote of 44 to one.
SB 354	Public Roads; further declare authority of counties/municipalities to remove roads from their systems when removal is in best public interest (TRANS-48th) – This Bill was passed with a vote of 50 to two.
SB 401	Georgia Energy Freedom Act of 2010 (NR&E-28th) – A Floor Amendment was added prior to passage of this Bill with a vote of 33 to 16.
SB 443	Medicaid Care Management Organization Legislative Oversight Committee; create (Substitute) (H&HS-52nd) – Sen. Smith's Bill dealing with the "CMOs" in Medicaid passed with a vote of 48 to zero.
SB 448	State Transportation Board; provide members to serve for the same term as General Assembly members (Substitute) (TRANS-53rd) – This Bill was "tabled."
SB 455	State Properties Code; modifying certain provisions; acquiring real property through commission (SI&P-25th) – This Bill passed with a vote of 50 to zero.
SB 472	State Board of Pardon/Paroles; clarify meaning of 'entirely incapacitated'; granting medical reprieves authorized by Constitution of Georgia (Substitute) (SI&P-25th) – The Senate passed this Bill with a vote of 47 to zero.
SR 108	Election; right of secret ballot-CA (I&L-1st) – This Resolution, providing a Constitutional Amendment, failed to get the two-thirds vote necessary; it, thus, failed with a vote of 33 to 17. A notice of reconsideration was filed.
SR 1083	Public Property; conveyance; 11 counties (Substitute) (SI&P-25th) – This Resolution passed with a vote of 49 to zero.
SR 1199	Certification and Professional Task Force; create (ED&Y-49th) – This Resolution cleared with a vote of 50 to zero.

House

HB 1307 was presented by Rep. Tom Dickson (R-Cohutta) on the House Floor. HB 1307 amends O.C.G.A. § 20-2-200, relating to teacher certification. This Bill will temporarily suspending the professional learning requirements for a certification renewal for teachers and paraprofessionals for five years- from July 1, 2010 through July 1, 2015. HB 1307 passed 166 to zero.

HB 1138 was explained to the House by Rep. Larry O'Neal (R-Bonaire). This Legislation adopts the Internal Revenue Code as of January 1, 2010, so as to include federal tax law changes signed into law during 2009. If Georgia does not adopt these provisions, taxpayers will be required to make a number of state-level adjustments to federal AGI to compute their Georgia tax liability which will increase complexity and make compliance with our income tax system much more difficult and expensive. New items Georgia will adopt include:

• Section 179 Small business expense limitation increased from $125,000 to $250,000.
• Allows taxpayers to claim charitable contributions for Haitian relief efforts on 2009 tax returns
• Expansion of Section 529 (qualified tuition program) qualified education expenses to include the purchase of computer technology or equipment and Internet access for students
• Non-taxability of economic recovery payments made to recipients of social security, railroad retirement, and veterans’ disability compensation benefits
• Non-taxability of COBRA premium subsidies received from IRS.  

 

Rep. O'Neal emphasized that tax preparers in Georgia are waiting on this to finish up tax returns. HB 1138 passed 163 to one.  

HB 1134, authored by Rep. Wendell Willard, failed to pass the House Floor by a vote of 57 to 103. This Bill would create a new Advisory Council on Public-Private Partnerships that offers public officials in Georgia a powerful, new tool to prioritized limited resources and identifies opportunities to seek more efficient and effective means of service delivery through outsourcing and privatization. This advisory council would develop centralized, independent decision-making body to manage privatization and government efficiency initiatives.

Rep. Willard stated that this Bill would put the Governor's orders into statutory form. He also cited that this is something that has in effect been under operation within the Governor's office for the past four years. Non-profit organizations could also be included in these partnerships. Rep. Calvin Hill (R-Canton) spoke against HB 1134, because he  

HR 178, authored by Rep. Kevin Levitas (D-Atlanta) would modifies Article III, Section VI, Paragraph V, Subparagraph (c) of the Constitution to allow for contracts which restrict competition after a term of employment or commercial relationship. The Amendment gives courts the authority to modify restrictive covenants to effectuate the intent of the parties where the original covenant would be unlawful. Rep. Stephanie Benfield (D-Atlanta) spoke against this Resolution citing that it would be bad for the unemployed. HR 178 passed 158 to 12.

HB 1196 was presented to the House by Rep. Terry England (R-Auburn). HB 1196 states that neither the state building code, nor any building code adopted by a political subdivision of the state shall include a requirement that fire sprinklers be installed in a single-family dwelling or a residential building that contains no more than two dwelling units. Any codes that are currently in place will be grandfathered in. Rep. England stated that it should be personal choice for a homeowner to put fire sprinklers in their home. HB 1196 passed 111 to 15.    

HB 1279 authored by Rep. Wendell Willard (R-Sandy Springs) passed the House 151 to one. HB 1279 allows Legislative Counsel to discontinue publication of the softbound volumes of Georgia Laws and authorizes them to distribute fewer hardbound volumes of Georgia Laws. It also allows for distribution of an electronic version of Georgia Laws. This Bill further provides that those entities requesting copies of the Georgia House and Senate Journals shall pay the Secretary of State the cost of acquisition. HB 1279 also reduces the number of copies of the Georgia House and Senate Journals the Secretary of State is required to hold in reserve.

Finally, the Bill gives the Secretary of State 60 days after a local referendum is approved to provide a copy of the Act and a certificate showing it became law to the election superintendent and the governing authority of each county or municipality in which it has application.  

HB 1047 was presented on the Floor by Rep. Mark Butler (R-Carrollton). This Bill amends O.C.G.A. § 40-6-184 to provide a minimum fine for drivers who impede the flow of traffic On a multi-lane road, by driving too slow except when reduced speed is necessary for safe operation. The fine for a conviction of violating this Code section will be at least $75.00 in addition to any other punishment authorized by law. This new language would not apply to HOV lanes. HB 1047 passed 129 to 29. 

HB 1236 reduces the number of court reports that the reporter is required to distribute in hard copy to various departments, courts, and other entities throughout the State. HB 1236 would be a cost saving Bill. HB 1236 passed 165 to zero. 

HB 1103 was presented to the House by Rep. Howard Maxwell (R-Dallas). HB 1103 would require the Professional Standards Commission to issue a clearance certificate for every non-educator, which means that have completed fingerprint and criminal background check requirements. Additional fingerprinting is not necessary for renewal of a clearance certificate or for educators who possess a professional educator certificate as of January 2, 2011. HB 1103 passed 162 to one.  

HR 1086, authored by Rep. Calvin Hill (R-Canton) caused tumultuous debate in the House over the State's position on the newly passed federal healthcare reform bill. This Resolution provides for an amendment to the Constitution so that no federal law can compel any Georgia citizen or company to participate in a health system. Additionally, it provides that all Georgia citizens and companies can pay directly for health care related services without having to pay a fine for such actions. Many Representatives took the Well to speak on behalf of the Resolution citing that this was Resolution more about the federal government imposing a fine on Georgia's citizens than healthcare and it is the Legislatures place to defend and represent the citizens properly. Others took the Well to express their concern for the Georgian's that currently have no health insurance. Many stated in rebuttal that these uninsured Georgian's still have access to healthcare. Ultimately, HR 1086 was defeated, due to a lack of the necessary two-thirds Constitutional Majority vote. The final vote was 111 to 61. Rep. Calvin Hill stated his notice to reconsider the Resolution on the next Legislative Day 

HB 1021 was presented to the House by Rep. John Lunsford (R-McDonough). HB 1021 addresses the growing problem of the use of Salvia Divinorum A. This Legislation makes the used of Salvia Divinorum A illegal, but provides an exemption the possession for landscaping purposes. HB 1021 passed 162 to two. 

HB 1170, presented by Rep. Jim Cole (R-Forsyth) would repeal the tax exemption for health maintenance organizations which provide healthcare services under the Medicaid program. Rep. Cole cited that this does not relate to the sales tax exemption for non-profit hospitals. He also stated that if this Bill does not pass, the budget will have to be cut further to find an additional $68 million. HB 1170 passed 138 to 20.  

HB 831, authored by Rep. Chuck Sims (R-Ambrose) would require compliance of political subdivisions of the state or local governments' authority to complete their annual audits. Rep. Sims cited that dozens of communities are not compliant with their audits. This Bill would allow these local governments to apply for extensions. If there is noncompliance within 180 days of the end of the fiscal year, the Department of Audits can hire an auditor and charge it back to the locality. HB 831 passed 164 to zero 

HB 1086, authored by Rep. Rick Austin (R-Demorest), passed the House 163 to two. This Bill deals with exemptions to the disclosure of public records for teachers and employees of public and nonpublic schools. Information regarding the teachers or employees: home address, home telephone number, e-mail address, social security number or insurance/medical information is not subject to public disclosure. Previously, only public school teachers and employees were covered under this code section. HB 1086 adds nonpublic teachers and employees.  

HB 203 clarifies legislative intent regarding HB 181 which was approved on May 24,

2007. No public or judicial facilities authority created by a single county can issue bonds for new projects with out a majority vote by referendum from county citizens. This Bill only applies to the issuance of bonds. HB 203 passed 177 to zero.   

HB 281, presented by Rep. Len Walker (R-Monroe) failed 88 to 74. HB 281 would permit a public school to allow a non-enrolled public school student to participate in any extracurricular activity offered or conducted by such public school located in his or her attendance zone in the same manner as any student currently enrolled in that school. Final approval for such participation (of a student) resides in the discretion of the principal in accordance with local board policies, or in accordance with State Board of Education or Georgia Charter Schools Commission policies, for, respectively, a state-chartered special school or a commission charter school. To be eligible to participate in an extracurricular activity under these provisions, a non-enrolled public school student must maintain at his or her school of attendance compliance with all academic/nonacademic rules and requirements governing participation in such extracurricular activity at the public school. A "non-enrolled public school students" is defined as a K-12 public school student who resides within the attendance zone of a school but is not enrolled at that school. "Public school" is defined as one including, without limitation, a local charter school, a state-chartered special school, and a commission charter school. Rep. Walker served notice of intent to reconsider on the next Legislative Day.   

HB 1061, The Trauma Care Expansion Act, was postponed until Wednesday. 

New Legislation 

SB 530 – Sen. Gail Buckner (D-Jonesboro) proposed a new Code Section for O.C.G.A. § 50-18-72.1 providing for relief and remedies in the case of harassing requests for public records when a person makes repeated requests to the same agency for records. 

HB 1443 – Rep. Austin Scott (R-Tifton) authored this Bill proposing the abolishment of the State Road and Tollway Authority in Article 2 of Chapter 10 of Title 32.  Those duties of the Tollway Authority would be transferred to the Department of Transportation on July 1, 2011. 

HB 1445 – Rep. Mickey Stephens (D-Savannah) offered this Bill proposing to provide for a period of residency for local boards of education members.  Additionally no individual would serve as a local school board member unless that he or she has a high school diploma or a GED equivalent.  These changes would be made in O.C.G.A. § 20-2-51.  Additionally, he proposed that these board members have two-year staggered terms in O.C.G.A. § 20-2-52. 

HB 1449 – Rep. Penny Houston (R-Nashville) proposed adding a new Code Section in O.C.G.A. § 31-7-3.3 to require nursing homes to determine if a new resident is a registered sexual offender.  Further, written notice would be required to be provided to families or guardians of residents if an individual, who is a registered sexual offender, is admitted as a resident to a nursing home.  For each resident admitted, the nursing home would be required to conduct a search of the State's sexual offender registry to determine if this incoming resident is a registered sexual offender.  Such search would be required to be conducted prior to or within 24 hours of the admission of such resident. 

HB 1454 – Rep. Larry O'Neal (R-Bonaire) offered this Bill providing that the Georgia Board of Dentistry is an independent State agency in O.C.G.A. § 43-11-23 as of July 1, 2010.  At that time, the Board will no longer be under the Secretary of State's jurisdiction but a separate agency attached to the Department of Community Health purely for administrative purposes. 

HR 1770 – Rep. Bobby Franklin (R-Marietta) authored this Resolution informing "Georgia Supreme Court Chief Justice Carol W. Hunstein that Georgia is a republic, not a democracy." 

HR 1781 – Rep. Kathy Ashe (D-Atlanta) offered this Constitutional Amendment providing that "funds derived from motor fuel taxes shall be appropriated for and grants made for all activities incident to providing and maintaining an adequate system of public roads and bridges in this State and for any or all transportation purposes, including public transit."  It would further authorize the General Assembly to allocate and specify and direct the use of such funds.  This amendment would be made in Article III, Section IX, Paragraph VI at subparagraph (b). 

HR 1782 – Rep. Tom Dickson (R-Cohutta) offered this "urging" Resolution so that the local boards of education, in these difficult economic times, would impose salary reductions on school administrators in the same manner as for teachers and other school system employees. 

Committee News 

Senate Judiciary Committee 

There were nine bills to be addressed by the Senate Judiciary Committee, including Sen. Renee Unterman's (R-Buford) proposal, SB 304, to address what is considered to be the minimum age for prostitution.  This Committee failed to have a quorum of members and Sen. Preston Smith (R-Rome) canceled the meeting after waiting almost thirty minutes.  Thus, none of the Bills on the agenda were addressed.

Senate Education and Youth Committee 

Chairman Dan Weber (R-Dunwoody) held a meeting to take up several measures.  A few of those Bills addressed included: 

• SB 518, by Sen. Jeff Mullis (R-Chickamauga), passed the Committee without changes.  It adds in O.C.G.A. § 20-2-142(a)(1)(B) that not only a course of study in the history of the United States and in the history of Georgia and in the essentials of the United States and Georgia Constitutions, including the study of American institutions and ideals must be taught in State funded elementary and secondary schools but also a study must be taught which includes "study of the Pledge of Allegiance to the flag of the United States and the Georgia flag in addition to other institutions and ideals."
• SB 451, by Sen. Freddie Sims (D-Dawson), passed by a Committee Substitute with an agreement that Floor amendments would be added.  This Bill deals with the time that Bright from the Start can close a facility subsequent to the death of a minor occurring (in a family day-care home with three to six children or group day-care home of seven to 18 children).  Larger facilities were taken out of the proposal.  Ashley Peacock, the Chief Legal Officer from Bright from the Start indicated that the Department had additional language to clarify when the State Administrative Hearings Procedures would hear emergency closure matters; that language will be included in Floor Amendments.
• SB 515, by Sen. Preston Smith (R-Rome), proposing the "Educator's Salary Protection Act" was somewhat controversial.  Local school systems were proposed to not furlough teachers if they had fund reserves with unencumbered amounts available.  Specifically, his proposal would add a new Code Section at O.C.G.A. § "20-2-212.6 (a) No local board of education shall furlough school system personnel if such local board has an unencumbered amount on September 1 equal to or greater than 6 percent of that year's total operating budget in a single reserve fund or reserve account established pursuant to paragraph (5) of subsection (a) of Code Section 20-2-167. (b) In the event that a local board of education is subject to subsection (a) of this Code section, such local board shall be required to utilize such reserve funds in that fiscal year to participate in the Quality Basic Education Program.(c) As used in this Code section, the term 'unencumbered' shall not include contractually obligated amounts or amounts reserved for teacher and other school system personnel salaries."  The Bill cleared Committee, moving it now to Senate Rules Committee.

 

Senate Insurance and Labor Committee 

Chairman Ralph Hudgens (R-Hull) and his Committee took up the following:

• SB 378, the proposal by Sen. Buddy Carter (R-Savannah), was the first Bill on the Committee's agenda and it failed to get a second to the motion to "do pass."  The measure, according to Sen. Carter, first passed in 2008 in a compromise which was reached.  The underlying Bill would permit a health insurance enrollee to obtain a ten-day supply of a drug (up to $200) not covered by their health insurance play that they could pay for out-of-pocket and later be reimbursed by the insurer.  Insurers and pharmacy benefit managers argued that this process would essentially place those drugs on their drug formularies which were there to help control costs.
• SB 509, by Sen. Tim Golden (D-Valdosta), proposed to create a Special Advisory Commission on Mandated Health Insurance Benefits, passed out of Committee.  This Commission is modeled after one that the State of Virginia uses.  NFIB supports such Commission.  Some minor tweaks were made to the Bill regarding its membership, adding a physician who is a chronic disease specialist and a chief medical officer for a hospital.
• SB 453, by Sen. Judson Hill (R-Marietta), cleared the Committee.  This Bill provides for the creation and funding of the Georgia Individual High Risk Reinsurance Pool.  It will use a portion of the State's portion of the premium taxes.  The Committee clarified the amount to be used, placing this amount to be no more than 10 percent of the State's premium taxes which are collected.  The Committee also made similar clarifying amendments to the accompanying Constitutional Amendment, SR 1225, and passed it as well from the Committee. 

 

House Ways and Means Committee 

In a late day meeting, Rep. Larry O'Neal and his Committee took action on the following: 

HB 1049, by Rep. Ron Stephens (R-Savannah) passed out without discussion.  This permits a special district (SPLOST) for local community support of economic development and quality of life by helping to fund the arts with up to one percent of local funds collected. 

HB 1019, by Rep. David Knight (R-Griffin) permits a refundable portion of low income tax credits to be refunded.  The Committee passed out a Substitute to this Bill with a vote of 14 to 4. 

Rep. Judy Manning's (R-Marietta) Bill HB 1198, changing the definition of change the definition of "taxable non-resident" in the State's income tax collection, passed without discussion. 

Rep. Don Parsons (R-Marietta) presented HB 1240. This Bill passed with a Committee Substitute.  It creates a new Code Section in O.C.G.A. §48-8-6.1 which would read as follows:

Unless otherwise expressly provided in this chapter, whenever any provision of this chapter provides for the levy, imposition, collection, or distribution of sales and use taxes by any county or municipality, or provides for the collection of such taxes by a private person or entity on behalf of the county or municipality levying or imposing such tax, any requirement that such taxes are to be levied, imposed, collected, or distributed based on the address or place of primary use of the person or entity subject to the tax shall be based on the United States postal ZIP Code of nine digits within which the address of the property or place of primary use is located. Where the delivery and possession of tangible personal property or services subject to sales and use taxes occur at a retail location, the nine digit ZIP Code for the location of the retailer where the delivery occurs shall be used to determine the location of the transaction. Where the delivery and possession of tangible personal property or services subject to sales and use taxes occurs at any other location, the nine digit ZIP Code for the address of the property where delivery is made and possession is transferred shall be used to determine location of the transaction.

Next up was HB 299, the Bill by Rep. David Knight (R-Griffin), which would eliminate the current sales and use tax exemption for nonprofit hospitals.  Rep. Knight spoke to HB 299, noting the difficult economic times which the nation and State had found themselves.  Rep. Knight noted that this "elimination" would not include the local portion of sales and use tax.   In discussing the Bill, Rep. Knight noted that the hospitals had been offered several options, including the payment of a provider fee, in an effort to help pay for healthcare in Georgia.  As no resolution had been reached and hospitals had essentially had not embraced paying the "provider fee" propose, this was another option to help with funding.  Several questions were raised by Democrats on the Committee, including what impact this Bill would have on Grady Hospital.  Rep. Stacey Abrams (D-Atlanta) and a lawyer noted that there was no analysis of the fiscal note and questioned what the impact would be to authority-owned hospitals.  Rep. Abrams noted the "egregious" balance sheets of the for-profit hospitals; Rep. Knight also noted the profit margin of Scottish Rite.  Rep. Howard Mosby (D-Atlanta) asked that the Committee to exempt those hospitals which were "DSH" or disproportionate share hospitals from this proposal.  A lone Republican spoke out in the Committee, Rep. Chuck Sims (R-Ambrose).  He suggested that this Bill would place the burden on the backs of sick folks; he suggested the repeal of the State's food tax law as it would garner $1.1 billion.  Rep. O'Neal said that was not so.  The Bill passed with a vote of 12 to six.