Report for March 30, 2010
The State's Budget writers worked more yesterday to come to an agreement on items for the FY 2010 Amended Budget and the FY 2011 Budget.
Floor News
Senate
On the Senate Floor today, Sen. George Hooks (D-Americus) presided over the body as the Lieutenant Governor and President Pro Tem were both outside the chambers on other business in the Capitol.
Many points of personal privilege were taken, including ones by Sen. Don Balfour who reminded his fellow Senators that it was "Gwinnett Day at the Capitol." Sen. Vincent Fort (D-Atlanta) took a minute to discuss the CRCT test score investigation and urged the Governor to release information so that the investigation could be conducted – he noted that it was a simple fairness issue to determine what happened with the educational testing scores in the Atlanta Public School System.
Sen. John Crosby (R-Tifton) and his colleagues welcomed the nation's "TOP COP" to the Capitol. Officer Dorminey McCrae, from Tifton, was recognized for the honor he received in Washington for his heroic deeds to save a youngster's life in a hostage situation in Tifton on April 7, 2008.
Sen. John Douglas (R-Social Circle) took a moment for remembering the late Sen. Nancy Schaefer who was murdered by her husband last week.
HB 905, authored by Rep. Tom Dickson (R-Cohutta), and presented in the Senate by Sen. Dan Weber (R-Dunwoody) passed 48 to zero today. HB 905 will extend a sunset date for capital outlay funds to June 30, 2015. This will extend where school systems can budget the funding.
House
The House and the Senate both welcomed country music superstar Jennifer Nettles, of the band "Sugarland", on the Floor today. As a Georgia native, Nettles recited the 4-H pledge for both chambers. After a long day on Friday, the Calendar for the House was light for today.
SR 274, authored by Sen. Don Thomas (R-Dalton), and presented on the Floor by Rep. Roger Williams (R-Dalton), would dedicate the designate the poplar tree adjacent to Dalton City Hall as the Liberty Tree of Georgia. SR 274 passed 158 to one.
SB 296, authored by Sen. Mitch Seabaugh (R-Newnan), and presented by Rep. Bob Lane (R-Statesboro), passed 164 to zero. SB 296 would rename the Office of Treasury and Fiscal Services to Office of the State Treasurer. This measure would be cost neutral.
SB 250, authored by Sen. Bill Hamrick (R-Carrollton), and presented by Rep. Wendell Willard (R-Sandy Springs), deals with a section of the Law that was first enacted in 1994. Currently, it is a misdemeanor of a high and aggravated nature to disrupt or interfere with the operation of any public school, public school bus or bus stop. This Bill seeks to address this issue by adding that a person will only be guilty of the offense if he 'knowingly, intentionally, or recklessly' does any of the things prohibited by the statute.
The following was added to SB 250 by amendment on the floor of the House, offered by Rep. Mike Jacobs (R-Atlanta). This Bill also expands and clarifies the definition of ‘bullying,’ and allows remedial action to be taken in any grade level (not just six through twelve). The bill reiterates that local school systems have discretion to transfer a student for bullying.
The Department of Education would be required to develop a model bullying policy which requires a process to notify parents of incidents of bullying, a duty for school employees to report bullying, and to prohibit retaliation for reporting bullying. This added language was the original "bullying bill" that was tabled by the House and not taken up before Crossover Day. SB 250 passed as amended 119 to 45.
New Legislation
HB 1473 – Rep. David Ralston (R-Blue Ridge) has introduced his amendments to Georgia's Ethics Laws in Chapter 5 of Title 21. His changes are proposed to enact the "Georgia Government Transparency Campaign Finance Act of 2010."
HB 1474 – Rep. Tony Sellier (R-Fort Valley) proposed this Bill adding a new Chapter 16 in Title 10 to require publishers and distributors of unsolicited newspapers to create and maintain a "Do Not Receive Registry" and to further prohibit delivery of these newspapers to residents who are on this registry. Publishers will have to place a statement on their publication which will read: "If you no longer wish to receive this newspaper, please call the following number, write to the following address, or e-mail the following e-mail address."
HB 1475 – Rep. Tom McCall (R-Elberton) authored this amendment to O.C.G.A. § 43-33-18(a) to clarify that the Board has the authority to refuse to grant or restore a license or discipline a physical therapist or physical therapist assistance who is licensed in this Chapter 33 when there is a finding that the physical therapist assistant has practiced other than under the supervision and direction of a licensed physical therapist.
HB 1477 – Rep. Tommy Benton (R-Jefferson) proposed this Bill creating a new Code Section at O.C.G.A. § 45-15-71 so that if the Attorney General of the State refuses or fails to represent Georgia in a criminal or civil case in any court "when required by the Governor, then the Governor is authorized to designate legal counsel to represent the State in such case." Further, it proposes that any fees which may be generated by this counsel designated by the Governor will be borne by the State. This initiative is in the wake of Attorney General Thurbert Baker's refusal to file a suit because of the enactment of the federal healthcare legislation.
HR 1824 – Rep. Austin Scott (R-Tifton) proposed this Resolution directing the Attorney General to file a lawsuit challenging the constitutional merit of Public Law 111-148 passed by the United States Congress on March 21, 2010 and signed by the President on March 23, 2010.
HR 1826 – Rep. Earnest ("Coach") Williams authored this Resolution which urges the Georgia Building Authority to provide additional parking for those individuals with disabilities who are visiting the Georgia State Capitol.
HR 1865 – Rep. Bob Smith (R-Watkinsville) offered this Resolution urging the Environmental Protection Agency to "cease its carbon dioxide reduction policies until climate data and global warming science are substantiated."
SB 541 – Sen. Chip Rogers (R-Woodstock) offered changes to O.C.G.A. § 20-2-164, relating to local five mill share funds. These changes would provide a cap on the amount of the local five mill share required for local school systems.
SR 1367 – Sen. Ronald Ramsey (D-Lithonia) offered this Resolution, creating the senate Vulnerable Adult Study Committee.
Committee News
Senate Special Judiciary
Rep. Rich Golick (R-Smyrna) had two of his measures pass out of Committee today. HB 1015, would strengthen the ability of law enforcement and prosecutors to combat gang violence before it has a chance to begin. HB 1015 would expand and change provisions relating to criminal street gangs and criminal gang activity and provide that a person sentenced for violating the 'Georgia Criminal Street Gang Terrorism and Prevention Act', be supervised on probation for the duration of his or her sentence. This statue could only be used for gang related crimes. The Bill received a unanimous "do pass" recommendation from the Committee.
HB 858, also authored by Rep. Golick, would increase the population requirement of 700,000 to 950,000, based on the United States Census, so that all funds collected by reason of Chapter 15 of Title 36 "shall be paid into the general treasury of such county, to be used for lawful purposes of the courts of the county, including the maintenance of a county law library; and there shall be no county law library fund." HB 858 received a "do pass" recommendation from the Committee.
Rep. Doug Collins (R-Gainesville) presented HB 896 which was an effort to address instances for when a continuance in a speedy trial demand case involving a witness who is on active duty as a member of the National Guard or component of the armed forces of the United States may be made. The Bill caused a lot of questions from Committee members. They inquired as to what triggered "activated to military duty" and Rep. Collins tried to explain that was when military personnel received orders for overseas duty. They agreed to hold the Bill as no one was present to speak on the proposal.
HB 898 was also presented by Rep. Collins. It addresses placing photographs, names, and street addresses of individuals who are convicted of their second or subsequent DUI case. This Bill will eliminate the requirement to post an individual's street address.
Senate Insurance and Labor Committee
The Senate Insurance and Labor Committee met this afternoon to address two initiatives.
HB 1101, by Rep. Mike Coan (R-Lawrenceville), outlined the annual Workers' Compensation Advisory Council's update to Georgia's workers' compensation laws. In the proposal, it addresses the self-insured guaranty fund addressing defaults and how those are addressed; notice provisions; insolvencies; and etc. Rep. Coan explained that nothing contained in the proposal was "drastic or draconian." Two individuals from the Workers' Compensation Board were also on hand to support the initiative. The Bill passed as presented.
HB 1364, by Rep. Carl Rogers (R-Gainesville), failed to get a motion do pass this afternoon. Thus, the Bill died. It proposed to amend Georgia's laws regarding the Georgia Insurers Insolvency Pool and proposed to make that Pool liable to claimants and electing insureds in emergency circumstances. This legislation would have addressed instances, such as that with SEUS, Southeastern US Insurance. SEUS liquidated and had 209 policy holders at the time of its liquidation. SEUS grew from a $700,000 entity to one more than $37 million but it never paid into the Pool. Rep. Rogers attempted to get all employers, based on their net worth of either $25 million more or less to make payments to the Pool. His proposal capped the assessments at two percent on policy holders. Insurers argued that this Bill was retroactive and unconstitutional. They further argued that SEUS as a "captive" insurer did not pay into the pool, but in 2006, SEUS moved to become a traditional insurer. The law in Georgia changed in January 1, 2008, requiring captive insurers to also pay to the Pool. However, there was a gap in those who had paid versus those who had not; in the middle, claims had been incurred and now SEUS was insolvent. The Commissioner of Insurance's representative, Ron Jackson, also addressed constitutionality issues relating to the proposal.
Senate Health and Human Services Committee
After struggling to get a quorum, this Committee pushed through four proposals onto the Senate Rules Committee:
- HB 361, by Rep. Ron Stephens (R-Savannah), passed. It proposes the enactment of the "Safe Medications Practice Act" to provide for collaboration between hospital pharmacists and members of the medical staff on drug management therapy for a patient in an institutional setting. Hospitals already currently do this; the Bill codifies their current actions.
- HB 1179, by Rep. Katie Dempsey (R-Rome), passed by a Committee Substitute. It provides that a hospital may annually offer to its health care workers and other employees who have direct contact with patients, at no cost, vaccinations for the influenza virus, subject to availability of the vaccine. Rome hospitals, Redmond Regional and Floyd Medical Center, already do this.
- HB 1119, by Rep. Ben Harbin (R-Evans), was presented by Sen. David Shafer (R-Duluth). It creates a program to raise public awareness of arthritis and methods of prevention of the disease. Andrea Collins with the Arthritis Foundation rose in support of the Bill explaining that there was no fiscal impact to the proposal and that 1.8 million Georgia adults suffer from the disease. It also passed.
- HB 1310, by Rep. Rusty Kidd (I-Milledgeville), passed. Rep. Kidd's Bill permits the Brain and Spinal Injury Trust Fund Commission the ability to solicit contributions. This Commission helps individuals and their families to live in their communities by helping fund such things as home modifications, vehicles for their transportation, and etc.
Senate Education and Youth
Rep. Amy Carter (D-Valdosta) presented her Bill to the Committee. HB 651 would allow for the sexual offender's registry to be sent to school systems via electronic means as opposed to through the mail. This change would be a time and money saving measure for the Department of Education. HB 651 received a "do pass" recommendation from the Committee.
HB 910, presented to the Committee by Rep. Howard Maxwell (R-Dallas), is also a cost saving measure for the Department of Education. Gender equity reports would only have to be made available by electronic means; no longer requiring these reports to be mailed. HB 910 received a "do pass" recommendation from the Committee.
HB 923 passed out of the Committee today. Rep. Jay Neal (R-Lafayette) presented his Bill, which would allow for individuals who have completed leadership courses and certification, but are not currently in leadership positions, to be placed on the same state pay scale as individuals who are in leadership positions.
HB 925, authored by Rep. Tommy Benton (R-Jefferson), is another cost saving measure for school systems. Notification of absences would no longer be required to be sent by certified mail, but rather these notices sent to parents would be sent first class mail. HB 925 received a "do pass" recommendation from the Committee.
Rep. Rick Austin (R-Demorest) presented his HB 1086 to the Committee today. HB 1086 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. This Bill received a "do pass" recommendation from the Committee.
Rep. Mike Glanton (D-Ellenwood) presented HB 1200 to the Committee. HB 1200 would authorize local board of education to solicit and accept donations and gifts for student field trips or other educational purposes for students. Currently, the statute is silent on this issue. HB 1200 also received a "do pass" recommendation from the Committee.
Senate Finance Committee
In an early morning meeting, Senate Finance Committee members threw a new wrench into the budget process. In presenting the JOBS act proposal, HB 1023, Sen. Chip Rogers (R-Woodstock) and Sen. Tommie Williams (R-Lyons) explained amendments incorporated into the Substitute before the Committee. You will recall that in 2009, Governor Perdue vetoed a similar JOBS Bill, essentially explaining that it was too costly for the State to entertain large tax credits for new business startups and other tax law changes as that bill proposed. In the Substitute version of HB 1023, it incorporates changes as follows:
- Section 1 proposes enactment of the "Jobs, Opportunity and Business Success Act of 2010"
- Section 2 outlines the hospital provider fee which had previously passed the House as HB 307 (the Governor's legislation). It provides for a provider payment fee to be assessed "uniformly" on all hospitals in the amount of 1.45 percent based on net patient revenue of each hospital; designated trauma centers will be assessed a 1.38 percent fee. State-owned or State-operated facilities are exempt as are psychiatric hospitals and critical access hospitals. The fees will be collected on a quarterly basis for three years and deposited into the Indigent Care Trust Fund. Any fee paid by a hospital will be credited by the Department of Community Health towards any indigent or charity care commitment imposed by the Department on that hospital as a condition of the granting of a certificate of need. All ambulatory surgery centers are exempt (they had been included in the House version originally).
- Section 3 outlines amendments to Georgia's unemployment insurance related to the Statewide Reserve Ratio.
- Section 4 moves Georgia's law into conformity with federal law regarding long-term gains tax reductions.
- Section 5 addresses net long-term capital gains/losses as permitted in O.C.G.A. § 48-7-27.
- Section 6 allows an individual making a qualified investment in a qualified business in the years 2011, 2012, or 2013 be permitted a tax credit of 20 percent of the amount of the investment against the tax imposed (on January 1 of the second year following the investment). Pass-through entities are also allowed tax credits. It further outlines how these credits may be claimed.
- Section 7 extends the sales and use tax exemption currently allowed nonprofit health centers through July 1, 2010.
- Section 8 extends the sales and use tax exemption permitted for nonprofit volunteer health clinics which primarily treat indigent persons with incomes below 200 percent of the federal poverty level to July 1, 2010.
- Section 9 modifies O.C.G.A. § 48-8-3(85)(E), repealing it entirely on July 1, 2012.
- Section 10 addresses corporate net worth taxes, eliminating those (on and after January 1, 2012).
Minor amendments were made in Committee addressing amounts of the credits and applications made by investors. The amendments were passed without discussion and the Substitute as amended then passed.
The Committee then addressed the Governor's Provider Payment Agreement Act, HB 307. The changes made in HB 1023 regarding the fee to be paid by hospitals were incorporated into this Bill as well. HB 307 then was passed out of the Committee.
Other News
The Department of Audits and Accounts has issued a fiscal note on HB 1221 (substitute) as proposed by Rep. Larry O'Neal (R-Bonaire). This legislation will authorize Georgia to become a full member of the Streamlined Sales and Use Tax Agreement if passed. It would take effect on July 1, 2010 and has no sunset provision. The Department issued a caveat that its work was a "preliminary estimate given the extensive nature of the 76 page Bill." The estimate is based on the North Carolina model. To date, there are 23 member and associate member states and approximately 1,100 businesses have voluntarily registered to be "streamlined sales tax sellers." The fiscal note estimates that Georgia will have $670.9 million in sales tax uncollected from remote sellers in 2010. It estimates that if Georgia becomes a member state that it may collect between $23.5 million to $30.9 million in additional sales tax revenue.
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.