January 15, 2003

For more information contact:

Stanley S. Jones, Jr.

404-817-6133

Jeffrey C. Baxter

404-817-6247

Kirkland A. McGhee

404-817-6257

Helen L. Sloat

404-817-6170

Day three passed, without a whole lot of controversy.  Governor Perdue made his Budget address to the Joint Session at 11:30 o’clock a.m.   [More about Governor Perdue’s Budget may be found below.]   Lorraine A. Johnson, a middle school teacher from Coweta County , was recognized as Georgia ’s Teacher of the Year as well as one of the four finalists for National Teacher of the Year.  

Newly Introduced Legislation  

HB 12 – In an effort to address “alien” citizens wishing to get a driver’s license, Rep. Franklin has authored an amendment to O.C.G.A. §  40-5-1(15) concerning residents who can apply for motor vehicle driver’s licenses.  This bill provides that an alien with documented proof of legal authorization from the U.S. Immigration and Naturalization Service shall be considered a resident for the purposes of obtaining a driver’s license.  Additionally, this bill proposes to require that driver’s licenses issued on or after July 1, 2003 indicate “whether or not the licensee is a citizen of the United States and, if not, the country of which such person is a citizen (currently, licenses do not reflect such information).  This requirement would be added in O.C.G.A. § 40-5-8.  Expiration dates are also impacted in this proposal: a driver’s license issued to an alien “shall expire on any earlier expiration date of such person’s legal authorization from the United States Immigration and Naturalization Service to remain in the United States .”  The current law reflects that all driver’s licenses expire on the licensee’s birthday in the fourth year following the issuance of the license.  This amendment proposal would be inserted at O.C.G.A. § 40-5-32.  

HB 13 – Businesses employing minors may have to follow new requirements if Rep. Franklin’s bill passes amending O.C.G.A. § 39-2-11.  No employment certificate can be issued to any minor unless the minor has submitted to the issuing officer the following:  1) certified copy of his or her birth certificate or birth registration card; 2) statement from the prospective employer indicating that the employer were furnished with a certificate from the school superintendent that the employer could employ the minor immediately and describing the job offered (just furnishing this does not mean that the employer must undertake the minor under its employment for a certain time period); and 3) written permission from the minor’s parent or legal guardian.

HB 43 – This bill by Rep. Channell offers an exemption for the State’s sales and use tax to those nonprofit organizations (which are 501(c)(3)) when such organizations are engaged in archeological exploration and preservation.  This measure has been forwarded to the House Ways and Means Committee.  

HB 45 – Rep. Childers authored this amendment to Commission on Men’s Health, as found in O.C.G.A. § 31-43-8, to amend how the Commission selects its presiding officer.  Currently, the person is elected by the members of the Commission to serve annually.  This proposal changes the term of office to follow O.C.G.A. § 31-43-7 (a) (which reflects that members who are not members of the General Assembly serve for three year terms; member of the General Assembly serve for two year terms).  Successors for the presiding offer of the Commission is to be elected prior to the expiration of the presiding officer’s term.  

HB 49 – Rep. Buckner has authored an amendment to O.C.G.A. § 21-2-3(b) which would make it unlawful for a person “to conduct a campaign activity including, but not limited to, a campaign fundraising activity or a campaign press conference, on the grounds of a facility providing care for children in the State’s custody.”  If a person violates such, this would be a misdemeanor.  

HB 52 – Reps. Mills and others have offered this amendment to Chapter 12 of Title 16 to insert the Woman’s Right to Know Act.  This requires that written information be provided to a woman prior to an abortion and that the female must give her informed consent prior to the abortion procedure.  Further, the female must sign a written acknowledgement of the information.  The information must be provided personally at least 24 hours prior to the abortion or be mailed to the female at least 72 hours prior to the abortion, by certified mail, restricted delivery to the addressee.  There is an exception when a medical emergency compels the performance of the abortion if such 24 hour delay may create serious risk of substantial and irreversible impairment of a major bodily function. The bill also requires physicians to report abortion procedures and the numbers of females that the physician has provided information concerning such procedure to the Department of Human Resources.  The Department of Human Resources would be required to issue a report on June 30 of each year providing statistics gathered from such data on the numbers of procedures, etc.  It also establishes that if a person knowingly or recklessly performs or attempts to perform an abortion in violation of this Article, then he or she shall be guilty of a felony.  If a physician knowingly or recklessly submits a false report to the Department, then he or she will be guilty of a misdemeanor.  There is also language establishing a civil cause of action.  See O.C.G.A. § 16-12-157 which allows that any person upon whom an abortion has been performed, without complying with this article, the father of the unborn child who was the subject of such an abortion, or the grandparent of such an unborn child may maintain an action against the person who performed the abortion in knowing or reckless violation of this article for actual and punitive damages.  The Department may also be sued in an injunctive action (against the Commissioner for the Department) by a group of ten or more citizens if it fails to issue the report required.  In any civil or criminal proceeding or action brought under this Bill, the court is given the power to rule whether the anonymity of the female upon whom an abortion has been performed (or attempted) shall be preserved from public disclosure (if the female does not give her consent).  

HB 53 – Rep. Childers dropped this amendment to Article 6 of Chapter 5 of Title 44 of the Code in an effort to amend current law on who may serve on the Advisory Board on Anatomical Gift Procurement.  Currently, it consists of a representative from each of the following: an eye bank; tissue bank; bone bank; organ procurement organization; hospitals; medical profession; Dept. of Human Resources; Dept. of Community Health; medical examiner; and a consumer.  The proposal is that the consumer be specifically a recipient of an organ.  

HB 54 – Rep. Childers has offered an amendment to O.C.G.A. § 31-23-3 concerning who may operate eye banks.  The amendment states that such facility, hospital, or medical school must be a nonprofit organization and must not be a subsidiary of a for-profit corporation or business entity.  

HB 56 – Rep. Childers has proposed an amendment to O.C.G.A. § 31-44-3 to change who must serve on the Renal Dialysis Advisory Council.  This changes the requirement that one person be recommended by the Georgia Chapter of the American Association of Kidney Patients to one member recommended by the Georgia Association of Kidney Patients.  

HB 58 – Rep. Buckner also authored an amendment to O.C.G.A. § 48-2-85 concerning tax liens so that in “in any case where it has been finally determined either judicially or administratively that a taxpayer’s property has erroneously been made subject to a state tax lien, the commissioner shall not correct the department’s records regarding the taxpayer merely to reflect that the issue has been resolved but shall affirmatively remove all such references from such records.”  

HB 59 – Reps. Jamieson, Royal, Houston, Buck and Sims authored this amendment to O.C.G.A. § 48-7-120 concerning failure of payment of estimated income taxes so that subsection (b) would read that the amount of the underpayment would be the lesser of paragraph (1) of the subsection or an amount equal to 100% of the tax shown on the return of the taxpayer for the preceding taxable year over paragraph (2)…”  

HB 61 – Reps. Franklin, Joyce and Massey authored this new section to be inserted at O.C.G.A. § 50-1-8 so as to require that no state agency may require any person to disclose his or her Social Security number, except for taxation purposes.  

HB 62 – Reps Franklin and Joyce authored this measure amending O.C.G.A. § 21-5-50 requiring more financial disclosure to be made by those persons holding public office.  Each appointed and elected public officer would be required to file with the Secretary of State a financial disclosure statement.  This applies to persons holding offices in consolidated governments, appointive county offices, appointive municipal offices, appointive office of state, and persons appointed to fill vacancies.  

HB 63 – This is another bill relating to abortion, authored by Rep. Franklin.  This proposes to create the “Due Process and Equal Protection Restoration Act of 2003.”  Among its provisions it defines “abortion” as the “intentional termination of human pregnancy with an intention other than to produce a live birth or to remove a dead fetus; provided, however, that if a physician makes a medically justified effort to save the lives of both the mother and the fetus and the fetus does not survive, such action shall not be an abortion.”  It would require a ‘death warrant’ be issued by a superior court providing for an execution and would require that a physician could not perform an execution unless such death warrant was issued.  The person seeking to have the execution would have to first seek a grand jury indictment against the fetus for the commission of an offense for which the death penalty can be given.  

HB 64 – This proposal by Reps. Buck and Royal amends provisions regarding general definitions for revenue and taxation as found at O.C.G.A. § 48-1-2. This bill is expected to e used as a vehicle for other tax proposals as they emerge.  

HB 65 – Reps. Buck and Royal offered this amendment to O.C.G.A. § 48-11-1 concerning cigar and cigarette taxes.  This amendment deals with changes in definitions.  

HB 66 – Reps. Buck and Royal propose to amend O.C.G.A. § 48-12-1 in an effort to change a definition relating to estate tax.  It would require that the “federal filing date” mean the date by which the federal estate tax return must be filed as required by the Internal Revenue Code.  

HB 68 – Rep. Buck has another proposal on the State’s administration and enforcement of revenue and taxation as found at O.C.G.A. § 48-2-1.  

HB 69 – Reps. Buck and Royal are proposing a change to O.C.G.A. § 48-13-50.2 concerning excise taxes on rooms, lodgings, and accommodations.  This changes definitions of ‘innkeeper’ and ‘promoting tourism, conventions, and trade shows.’  

HB 70 – Reps. Buck and Royal have introduced an amendment to Article 5 of Chapter 13 of Title 48 of the Code relating to excise taxes on rental of motor vehicles, which are vehicles designed to carry ten or fewer passengers and used primarily for the transportation of persons that is rented or leased without a driver regardless of whether such vehicle is licensed in this state.  

HB 73 – Another bill by Reps. Buck and Royal with this one dealing with O.C.G.A. § 48-4-1 concerning procedures for sales under tax levies and executions.   

HB 74 – Rep. Buck authored this amendment to tax executions found at O.C.G.A. § 48-3-1 and how such may be issued.  

HB 76 – Another Tax Code amendment by Reps. Buck and Royal, this amends O.C.G.A. § 48-8-2 relating to sales and use taxes.  In this, 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 77 – Reps. Buck and Royal propose to amend O.C.G.A. § 48-6-1 regarding taxes imposed on real estate transfers.  

HR 2 – Reps. Franklin and Massey proposed a constitutional amendment in an effort to refreeze the existing residential real property values and to require that residential real property and interests be appraised for ad valorem taxation purposes at fair market value “as of the date of the owner’s acquisition thereof and shall be assessed for ad valorem taxation purposes at 40% of that fair market value.”  This proposal would be inserted at Article X, Section I, Paragraph II of the State’s Constitution.  

HR 3 – Reps. Franklin and Joyce authored this Constitutional Amendment in an effort to provide that salaries of teachers may be supplemented with private funds donated to a nonprofit organization established as a 501(c)(3) of the Internal Revenue Code of 1986.  This paragraph change in the Constitution would be found at Article VIII, Section I, Paragraph II:  “The salaries of teachers may be supplemented with private funds donated to a bona fide nonprofit organization established under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended.”  

HR 4 – Rep. Royal has authored a proposed Constitutional Amendment to be inserted at Article IX, Section IV, Paragraph V:  “Limitations on millage rate or valuation increases. (a)  Notwithstanding any other provision of this Constitution to the contrary, the General Assembly shall be authorized to provide by general or local law for any or all of the following:  (1)  Limitations upon the rate of increase of the ad valorem tax millage rate for county or municipal purposes or both not to exceed 4 percent per year unless approved by a majority vote of the qualified electors residing within the limits of the applicable local taxing jurisdiction voting in a referendum thereon; or (2) Limitations upon the rate of increase in the value of property for ad valorem taxation for county or municipal purposes or both, excluding any additions or improvements thereto, not to exceed 4 percent per year. (b) The limitations authorized under this Paragraph shall not apply to increases necessary to fund federal or state mandates on such county or municipality for which no or insufficient federal or state appropriations have been made or to fund expenditures necessitated by natural disasters.”  

HR 5 – Rep. Royal also proposed this Constitutional Amendment to Article IX, IV, Paragraph V:  “limitations on millage rate or valuation increases.  (a) Notwithstanding any other provision of this Constitution to the contrary, the General Assembly shall be authorized to provide by general or local law for any or all of the following:  (1)  Limitations upon the rate of increase of the ad valorem tax millage rate for county or municipal purposes or both not to exceed from one taxable year to the succeeding taxable year a percentage greater than any change in the rate of economic inflation on individual taxpayers as determined by the state revenue commissioner. For such purpose, the state revenue commissioner may use the Consumer Price Index for all urban consumers published by the Bureau of Labor Statistics of the United States Department of Labor and any other reliable economic indicator determined by the state revenue commissioner to be appropriate.  Such limitations may only be exceeded if approved by a majority vote of the qualified electors residing within the limits of the applicable local taxing jurisdiction voting in a referendum thereon; or…”  

HR 6 – Rep. Royal authored this proposed Constitutional Amendment to be inserted at Article IX, Section IV, Paragraph V.  This proposal is the same as HR 4 except that such limitation on millage rate or valuation increases would be capped at 5 % per year.  

HR 14 – Reps. Channell and Hudson authored this Resolution commending Putnam General Hospital as it received the HomeTown Health LLC 2002 Hospital of the Year Award.  Putnam General is located in Eatonton , Georgia .  

HR 21 – Rep. Buck has proposed an amendment to the State’s Constitution  regarding family ownership of farms which qualify preferential assessments for property when such is devoted to agricultural purposes.  His amendment would change Article VII, Section I, Paragraph III (c)(1)(B), thus expanding definition for additional types of family ownership, to:  “A family owned farm entity, such as a family corporation, a family partnership, a family general partnership, a family limited partnership, a family limited corporation, or a family limited liability company, all of the interest of which is owned by one or more natural or naturalized citizens related to each other by blood or marriage within the fourth degree of civil reckoning, except that, solely with respect to a family limited partnership, a corporation, limited partnership, limited corporation, or limited liability company may serve as a general partner of the family limited partnership and hold no more than a 5 percent interest in such family limited partnership, an estate of which the devisees or heirs are one or more natural or naturalized citizens, or a trust of which the beneficiaries are one or more natural or naturalized citizens and which family owned farm entity derived 80 percent or more of its gross income from bona fide agricultural pursuits, including earnings on investments directly related to past or future bona fide agricultural pursuits, within this state within the year immediately preceding the year in which eligibility is sought; provided, however, that in the case of a newly formed family farm entity, an estimate of the income of such entity may be used to determine its eligibility.”  

SB 8 – Sens. Shafer and others authored this in an effort to create zero-base budgeting process.   It proposes to require that the Governor make use of zero-base budgeting and would apply to the budget report presented to the General Assembly in January 2004 and each fourth year thereafter. The new language proposes that each Governor shall during his or her second year of his or her term present a budget report which incorporates zero-base budgeting.  In the years where this would apply, the budget would be required to include in the budget estimate an analysis summarizing past and proposed spending plans by program and the means of financing the proposed plans.  Further, it would require a statement of the budget unit’s departmental and program objectives, effectiveness measures, and program size indicators, three alternative funding levels for each program, and a priority listing encompassing all alternative funding levels for all programs.  This proposal would be in a new Code Section 45-12-75.1.  

SR 12 – Sens. Shafer, Cagle, Lamutt, Balfour, Tanksley, and others offered this Resolution amending the State’s Constitution in an effort to propose that “no law proposing or increasing any state purpose tax as defined by general law shall take effect unless and until approved by two-thirds’ of the members of each branch of the General Assembly in a roll-call vote.”  This amendment is proposed for Article VII, Section I, Paragraph I (b).  

          Some of the biggest news from the Senate, dealt with the naming of the new Committee Chairs.  A listing is as follows:  

Agriculture & Consumer Affairs:  John Bulloch

Appropriations:  Jack Hill

Banking & Financial Institutions:  Don Cheeks

Children & Youth:  Ginger Collins

Economic Development & Tourism:  Jeff Mullis

Education:  Joey Brush

Ethics & Government Reform:  Mike Crotts

Finance:  Casey Cagle

Health & Human Services:  Don Thomas

Higher Education:  Bill Hamrick

Insurance & Labor:  Robert Lamutt

Interstate Cooperation:  Ed Harbison

Judiciary:  Charlie Tanksley

Natural Resources:  Hugh Gillis

Public Safety & Homeland Security:  Rooney Bowen

Reapportionment & Redistricting:  Dan Lee

Regulated Industries & Utilities:  Mitch Seabaugh

Retirement:  Ralph Hudgens

Rules:  Don Balfour

Science & Technology:  David Shafer

Special Judiciary: Rene’ Kemp

State & Local Government Operations:  Rene’e Unterman

State Institutions & Property:  Regina Thomas

Transportation:  Tommie Williams

Veterans & Military Affairs:  Seth Harp  

Budget News  

Governor Perdue spoke to the Joint Session this morning and released some of his initial ideas relating to the Budget.  Some of the highlights include:  

·        $8.8 billion for education

·        $1.7 billion for Medicaid in 2004

·        $18.6 million for the Cancer Research Center at the Medical College of Georgia with an additional $36.6 million added with public and private dollars

·        $11.2 million to implement the Olmstead decision

·        $2.3 million for community-based services for nursing home eligible persons

·        $5.6 million for the State to conduct assessments of folks eligible for community-based services

·        $52.1 million of Tobacco Settlement dollars for the OneGeorgia Authority to help economically challenged areas

·        $100 million for road improvements  

Governor Perdue plans to use $138 million in the State’s reserves to help with Budget shortfalls for 2003 and to use $142 million of the State’s reserves to assist with the 2004 Budget.  This is being done in an effort to maintain the State’s Triple AAA Bond rating.  

The current $7.00 reduction allowed for persons getting their Driver’s Licenses when they opt to be an organ donor will be eliminated.  Governor Perdue explained that this was really not an incentive for being an organ donor and this would generate an additional $4.4 million in revenue.  

Additionally, Governor Perdue intends that a temporary increase be made on excise taxes for tobacco and alcohol products for four years.  This will generate about $91.5 million and $387 million respectively.  This is approximately $.588 per pack of cigarettes.  

Specific Highlights from 2003 Supplemental Budget:  

Department of Community Health  

The following are proposed reductions:  

1.       Increase contributions from governmental entities participating in the Medicaid program by utilizing upper payment limit (UPL) credits to obtain federal matching funds ($73,000,000)  

2.       Eliminate nursing home liability insurance adjustments (eff. Feb. 1, 2003 ) ($2,620,458; with federal dollars this is $5,468,669)  

3.       Reduce the average monthly primary care case management payments to Georgia Better Health Care (“GBHC”) physicians from $3.00 to $2.00 per member (eff. Feb. 1, 2003) ($1,350,333 in State monies; with federal dollars this is $3,333,333)  

4)       Reflect the revised projected cost for the implementation and operation of the Department’s medical health network ($901,855; with federal dollars this is $3,607,420)  

There is $259,178,360 for increased State funding for Medicaid Benefits to fund the projected cost of incurred claims for prior years and the projected cash need for FY 2003 claims (with federal dollars this is $594,663,555).  

Total State dollars needed:  

Current:        $1,517,099,676

Revised:        $1,693,521,216  

Department of Human Resources  

Public Health Division:  

The following are some of the recommended reductions:  

1.       Reduce Grant-In-Aid funding for county boards of health ($2,754,692)  

2.       Reflect the receipt of additional federal family planning funds ($1,000,000)  

3.       Reduce funding on various contracts:  

          a.       Visiting Nurse Health System for the medically indigent ($172,803)

b.       AID Atlanta for case management of HIV positive and AIDS patients ($144,719)

c.       Air ambulance service in Savannah ($75,000)  

4.       Eliminate funding for various contracts:  

          a.       Technical assistance for universal hearing screening ($103,000)

          b.       Air ambulance service in Atlanta ($100,000)  

5.       Eliminate State lab services for pre-marital testing ($204,080)  

There is an addition of $1,261,717 for the provision of funds to replace lost Indigent Care Trust Fund earnings for the Children 1st Program (with federal dollars this is $4,016,043).  

Division of Mental Health, Developmental Disabilities, and Addictive Diseases:  

Proposed reductions are:  

1.       Reduce funding for a residential substance abuse facility in Macon ($100,000)  

2.       Consolidate the administration of the Georgia Regional Hospital at Augusta and Gracewood State School and Hospital ($250,000)  

3.       Reflect savings from a one-time modified hiring freeze for hospitals/state office ($1,454,837)  

Other items proposed:  

1.       Reflect a one-time increase in federal Medicaid reimbursement for services provided by State intermediate care facilities for the mentally retarded ($2,559,776)  

Total funds for the Division:  

Current:        $626,162,410

Revised:        $617,999,194  

Specific Highlights from 2004 Budget:  

Department of Community Health  

The following are some of the proposed reductions:  

1.       Increase contributions from governmental entities participating in the Medicaid program by utilizing upper payment limit (UPL) credits to obtain federal matching funds ($61,266,268)  

2.       Reduce reimbursement rates by 10% for providers of the following Medicaid services (this will be a total of $277,889,041 with federal dollars) – here are a few providers impacted:  

          a)       inpatient hospital care ($43,791,314)

          b)       private nursing home care ($33,230,940)

          c)       physician and physician-related services ($27,093,601)

          d)       home health care ($417,011)

          e)       adults with AIDS case management ($12,529)  

3.       Reflect additional savings from the capitated reimbursement of pharmacy expenditures in long-term care settings ($6,871,400 and with federal dollars this is $17,000,000)  

4.       Eliminate nursing home liability insurance adjustments ($6,275,128 and with federal dollars this is $15,524,810)  

Other adjustments:  

1.       Increase state funding for Medicaid benefits to fund the projected cash need for FY 2004 claims in the amount of $276,239,700;  with federal dollars this is $645,508,906.  

2.       Increase Medicaid Benefits to reflect a change in the federal financial participation rate in the amount of $8,708,305.  

3.       Fund Medicaid claims incurred in FY 2003 but not billed to the Department for payment until FY 2004 in the amount of $104,612,663; with federal dollars this is $258,814,109.  

Enhancements:  

1.       Apply a 3.2% inflationary increase to the FY 2003 reimbursement rates for inpatient hospital services in the amount of $14,153,352; with federal dollars this is $35,015,715  

2.       Apply a 4.5% inflationary increase to the FY 2003 reimbursement rate for physicians and physician-related providers in the amount of $12,835,623; with federal dollars this is $31,755,623  

3.       Apply a 3.2% inflationary increase to the FY 2004 continuation level for private nursing facilities (The FY 2004 continuation level is calculated by applying an inflation factor of 4.725% to the FY 2001 cost report.) in the amount of $9,541,263; with federal dollars this is $23,605,302  

4.       Increase funding for nurse aide training to comply with federal requirements that the State reimburse nursing facilities for their related costs in the amount of $200,000; with federal dollars this is $400,000  

5.       There is $3,195,341 for the provision of community-based residential care to 145 private nursing home residents who are clinically able to live in a more integrated community setting and have expressed a desire to move (with federal dollars this is $7,905,346)  

Total for Department for 2004:       $1,748,998,317  

Department of Human Resources  

The following are proposed reductions:  

1.       Reduce Grant-In-Aid funding for county boards of health ($2,863,212)  

2.       Eliminate funding for the following contracts:  

          a)       Technical assistance for universal hearing screening ($103,000)

          b)       Air ambulance service in Atlanta ($100,000)

          c)       Air ambulance service in Savannah ($100,000)

          d)       Scoliosis screening of children in metro Atlanta ($86,000)

          e)       Visiting Nurse Health System for the medically indigent ($223,806)  

Enhancements:  

1.       Provide funds for the Tobacco Use Prevention Program (Div. Of Public Health) $2,484,993  

2.       Replace lost Indigent Care Trust Fund earnings for the Children 1st Program in the amount of $1,261,717 (with federal dollars this is $4,016,403)  

Total funds for the Department for 2004:  $1,461,729,622  

Regents, University System of Georgia  

The following are some points of interest:  

1.       Georgia Research Alliance is recommended to receive $750,000 for one additional eminent scholar and $18,400,000 in bonds for equipment related to the Georgia Research Alliance and Traditional Industry Program research priorities.  

2.       $8,600,000 is recommended for the Paul D. Coverdell Building for Biomedical and Health Sciences at the University of Georgia and $8,600,000 for the Cancer Research Center at the Medical College of Georgia.