Today was Day 9 of the 2003 Session and it was a relatively short day for Legislators, although several Committees met in the afternoon.  We have learned that Legislators will be in Session Monday and Tuesday of next week but plan to take Wednesday, Thursday and Friday to work on the FY 2003 Supplemental Budget (more below).  Georgia’s Forestry Industry was honored today; this industry is a huge economic engine within the State’s economy as it supplies a number of jobs. 

Floor News 

          The House passed three bills (HB 103, HB 104, and HB105) concerning technical corrections to the Code.   HB 104 was passed by Committee Substitute from the House Judiciary Committee.  The House approved HR 91 which proposes that both the House and Senate adjourn on February 4 and not reconvene until February 10.  This time will be spent on holding Subcommittee meetings on the Budget in an effort to address the State’s $620 million shortfall. 

Newly Introduced Legislation 

HB 94 – Rep. Mary Margaret Oliver has proposed a Title 10 amendment, establishing an unfair trade practice, to prohibit the sale or lease of a motor vehicles conditioned upon financing approval except under certain conditions (the sale or lease has to be concluded within seven days of the delivery; a motor vehicle offered for trade by the purchaser or lessee shall not be sold by the dealer until the conditional sale or lease is completed; there should be no charge to the purchaser or lessee should the conditional sale or lease not be completed, including mileage charges or charges to refurbish the vehicle; if such conditional sale is not completed, then the dealer shall refund the purchaser or lessee all monies placed on deposit; and the prospective purchaser or lessee shall return the vehicle to the dealer within 48 hours of notification by the dealer that the conditional sale or lease will not be completed). 

HB 109 – Reps. Wilkinson and others have authored this bill to amend Chapter 12 of Title 31 to require vaccination against meningococcal meningitis to persons enrolled in post-secondary educational institutions, who will be residing in on-campus housing.  Otherwise, the school must obtain a written waiver for such from the individual. 

HB 189 – Rep. Buck has authored this measure which amends O.C.G.A. § 48-4-39.  This  sets the fair market value of certain tangible personal property.  “(B) For purposes of subparagraph (A) of this paragraph, the fair market value of any carpet sample shall be equal to 21.9 percent of the total raw material cost of the sample, except that the fair market value of a sample of carpet that is manufactured exclusively for commercial use shall be equal to 1 percent of the total raw material cost of the sample.”  This has now been forwarded to the House Ways and Means Committee. 

HB 200 – Rep. Bridges has proposed this change to O.C.G.A. § 50-5-60 to create a preference in state purchasing contracts for vendors who are residents of Georgia or for products of Georgia.  “A preference of 7% in all competitive procurements made by the state must be provided to vendors who are residents of Georgia or whose products are made, manufactured, or grown in Georgia if available, provided that:  1) the bidder has certified in writing in the bid that he or she is a resident of this state; or 2) the bidder has certified in writing in the bid that the end-product was made, manufactured, or grown in Georgia and the end-product is available and the cost of the end-product is not unreasonable.  In order to receive the award, the vendor must be a responsible and responsive bidder and the bid must otherwise comply with all applicable laws and regulations.”  The bill defines “resident vendor” as: 

A)  An individual, partnership, association, or corporation that is authorized to transact business in this state;

          B)  Maintains an office in this state;

C)  Maintains an inventory for expendable items which are representative of the general type of commodities on which the bid is submitted and located in Georgia at the time of the bid having a total value of $10,000 or more based on the bid price, but not to exceed the amount of the contract, or is a manufacturer which is headquartered and has at least a $10 million payroll in Georgia and the product is made or processed from raw materials into a finished end-product by such manufacturer or an affiliate, as defined in Section 1563 of the Internal Revenue Code, of such manufacturer; and

          D)  Has paid all assessed taxes. 

HB 201 – Reps. Benfield and others have proposed a change for issuing motor vehicle policies so that these would be based on miles or time.  Insurers would be required to offer a purchaser a choice.  This would be inserted in O.C.G.A. § 33-34-3. 

HB 202 – Rep. Jamieson has offered this tax proposal relating to exemptions from State sales and use taxes regarding the exemption with respect to the sale of certain natural or artificial gas used to produce electricity.  This amendment is proposed in O.C.G.A. § 48-8-3(70)(C). 

HB 204 – Reps. Borders and others have proposed an amendment to the Sales Tax Holiday bill passed in 2002. This changes the dates for these “holidays” from sales taxes to from 12:01 a.m. April 18, 2003 until 12:00 midnight on April 19, 2003 and 12:01 a.m. August 1, 2003 until 12:00 midnight August 2, 2003.  This change is proposed for O.C.G.A. § 48-8-3(75)(A). 

HB 206 – Reps. Gardner and others have authored this amendment to O.C.G.A. § 43-10A-7 to provide for exemptions from licensure requirements for those persons working to provide emergency disaster relief services.  This would apply to those persons licensed to practice a specialty in another jurisdiction and who are practicing such specialty within a defined disaster area in order to alleviate the impact on persons affected by such disaster.  The services would have to be offered free of charge to recipients of services and such could only be provided for 30 days per year. 

HB 192 – Reps. Buck and others have proposed a compensation change as found in O.C.G.A. § 45-7-4 for state officials.  This adds a new paragraph (d): 

Effective on the first day of the month following the month in which this subsection becomes law, the annual salary of each member of the General Assembly shall be reduced by 5%.  This subsection shall not apply to any salary received by any officer of the General Assembly in addition to his or her salary as a member of the General Assembly. 

HB 207 – Reps. Buck, Smyre, Smith, Buckner, and Hugley have proposed this bill amending O.C.G.A. § 48-8-6(b) to provide for an optional rate increase to 2% with respect to imposition by consolidated governments.  A referendum proposal is also attached. 

HB 209 – Reps. Epps and others have authored this Bill designating a new Code Section to be found at O.C.G.A. §48-7-29.9 to allow persons who claim and have been allowed a federal earned income credit under Section 32 of the Internal Revenue Code of 1986, as amended, to also be allowed such a credit against the tax imposed by O.C.G.A. § 48-7-20 for qualified child care expenses in an amount not to exceed the amount of the federal child care tax credit which the taxpayer claims and is allowed. This would only apply to one taxpayer, for the same child care expenses.  It also could not exceed the taxpayer’s income tax liability. 

HB 212 – Rep. Noel has proposed some repeals relating to funding for public roads.  The first repeals Article 3 of Chapter 5 of Title 32, which includes O.C.G.A. § 32-5-30 concerning allocation of state and federal funds and authorization of funds collected and O.C.G.A. § 32-5-31 concerning the duty of the board to submit a yearly report and the second repeals Article 5 of Chapter 32 of Title 50 concerning the allocation of funds by the Department of Transportation, including O.C.G.A. § 50-32-60, concerning DOT’s allocation of funds. 

HB 213 – Reps. Moraitakis and others have proposed an amendment to O.C.G.A. § 10-15-5 so that a merchant who uses credit cards as means of payment from customers may not print more than the last five digits of the payment card’s account number or print the payment card’s expiration date on a receipt provided to the cardholder.  This does not apply to transactions in which the sole means of recording the payment card’s account number or expiration date is by handwriting or by an imprint of copy of the payment card. 

HB 215 – Reps. Rich Golick, Ben Harbin, and George Maddox have introduced the Department of Insurance’s bill concerning credit scoring.  This bill adds a new Article 4 in Chapter 24 of Title 33.  There are a number of items which insurers are not allowed to do: 

1)  Use an insurance score which is calculated using income, gender, race, address, zip code, ethnic group, religion, marital status, or nationality of the consumer as a factor;

2) Deny, cancel, or non-renew a policy of personal insurance based on the credit information, without consideration of any other underwriting factor independent of credit information  and not expressly prohibited in O.C.G.A. § 33-24-91(1);

3) Base an insured’s renewal rates for personal insurance solely upon credit information, without consideration of any other applicable factor independent of credit information;

4) Take an adverse action against a consumer because he or she does not have a credit card, without consideration of any other applicable factor independent of credit information; and etc. 

If the insurer is writing personal insurance and uses credit information in underwriting or rating a consumer, then the insurer or agent has to disclose, either on the application or at the time the insurance application is taken, that it may obtain credit information in connection with the application.  The disclosure must basically state: “In connection with this application for insurance, we may review your credit report or obtain or use a credit based insurance score based on the information contained in that credit report.  We may use a third party in connection with the development of your insurance score.”  Also, if an insurer takes adverse action based upon credit information, then the insurer must meet the notice requirements in this new Code Section.  The insurer also has to notify the consumer of such adverse action.  If insurers use insurance scores to underwrite and rate risks, then they must file their scoring models or other processes with the Commissioner.  Third parties may file scoring models on behalf of insurers licensed to do business in Georgia, but those third parties must be on an approved list maintained by the Department of Insurance.  The filing that includes the insurance scoring may include loss experience justifying the use of credit information. 

SB 56 – Sen. Cagle has authored this change to O.C.G.A. § 48-2-1  concerning the creation of the Department of Revenue. 

SB 57 – Sen. Cagle also proposed this change concerning procedures for sales under tax levies and executions as found in O.C.G.A. § 48-4-1. 

SB 58 – This is a tax code revision by Sen. Cagle concerns ad valorem taxation of property found in O.C.G.A. § 48-5-2. 

SB 60 – This bill relates to excise taxes on rental of motor vehicles.  Sen. Cagle proposes to add a new Code Section at 48-13-91.  The rental charge would mean the total value received by a rental motor vehicle concern (entity that owns or leases more than five vehicles) for the rental or lease for 31 or fewer consecutive days of a rental motor vehicle including the total cash and non-monetary consideration for the renal or lease including, but not limited to, charges based on time or mileage and charges for insurance coverage or collision damage waiver but excluding all charges for motor fuel taxes or sales taxes. 

SB 61 – Sen. Cagle has also authored this insert to the Tax Code at 48-12-1.  This relates to estate taxes and defines the term “federal filing date” to mean the date by which the federal estate tax return must be filed as required by the Internal Revenue Code. 

SB 62 – Another tax modification by Sen. Cagle, this bill proposes to insert new definitions for sales and use taxes as found in O.C.G.A. § 48-8-2. 

SB 63 – Sen. Cagle also introduced this tax change relating to definitions for excise taxes on rooms, lodgings, and accommodations found in O.C.G.A. § 48-13-50.2. 

SB 64 – Sen. Cagle has also proposed changes to definitions concerning coin-operated amusement machines.  This strikes O.C.G.A. § 48-17-1 and inserts a new Code Section in its place. 

SB 65 – Sen. Cagle offered this tax measure relating to cigarette taxes, placing a new Code Section at 48-11-1, which establishes new definitions. 

SB 66 – Sen. Cagle has proposed a new Code Section 48-7-1 concerning income taxes.  The bill provides a series of new definitions.  

SB 68 – Sen. Cagle has also proposed a change relating to the issuance of tax executions as found in O.C.G.A. § 48-3-1.  “The commissioner may issue an execution for the collection of any tax, fee, license, penalty, interest, or collection costs due the state.  The execution shall be directed to all and singular sheriffs of this state or the commissioner or his authorized representatives and shall command them to levy upon the goods, chattels, lands, and tenements of the taxpayer, provided that the commissioner may transmit such executions electronically.  Each sheriff shall execute the execution as in cases of writs of execution from the superior courts.  Whenever any writ of execution has been issued by the Commissioner, the taxpayer, in order to obtain a determination of whether the tax is legally due, may tender to the levying officer his affidavit of illegality to the execution and, upon his payment of the tax if required as a condition precedent by the law levying the tax or upon his giving a good and solvent bond in such an amount to cover the total of any adverse judgment plus costs where the law does not require the payment of the tax as a condition precedent, the levying officer shall return the affidavit of illegality, except as otherwise provided by law, to the superior court of the county of the taxpayer’s residence.  The affidavit of illegality shall be summarily heard and determined by the court.” 

SB 69 – Another tax code modification by Sen. Cagle, this one concerns taxation of intangibles relating to real estate transfer taxes found in O.C.G.A. § 48-6-1. 

SB 70 – Sen. Cagle has proposed additional definition changes found in O.C.G.A. § 48-1-2 concerning revenue and taxation. 

SB 71 – Sen. Smith has proposed a bill to exempt professional counselors, social workers, and marriage and family therapists who are working in disaster areas for the American Red Cross from licensure requirements as long as the individual is not working in such an area for more than 30 days. 

SB 72 – Sens. Squires and Unterman, fresh faces in the Senate this Session, have produced a bill proposing to prohibit attorneys and law firms from making campaign contributions to candidates for judicial offices.  This amendment is proposed for O.C.G.A. § 21-5-35.1. 

SB 74 – Sen. Brush and others have proposed this unfair trade practice amendment so as to create a new Article 34 in Chapter 1 of Title 10.  This would prohibit a person who operates a public accommodation from restricting an individual access from using the accommodation solely because the individual operates a motorcycle; is a member of an association or organization which operates motorcycles; or wears clothing that displays the name of such organization or association. 

SB 76 – Cuts to the budget are becoming apparent everywhere.  SB 76 by Sen. Price and others proposes to cut salaries to the Lt. Governor, Members of General Assembly, Speaker, President Pro Tempore of Senate, and Speaker Pro Tempore of House by 10%.  This would impact the salaries received on January 31, 2003 and such reduction would remain in place until December 31, 2004, when this proposal in O.C.G.A. § 45-7-4 would be repealed. 

SB 78 – Sen. Cheeks has proposed this Bill amending Title 7 and making a number of changes relating to banks and financial institutions.  Some of these include: 

·        O.C.G.A. § 7-1-115 – In dissolution proceedings, the financial institution would be required to make reports to the Department as it may require and would be subject to examinations and investigations as this Chapter outlines.  Also, “during the course of a voluntary dissolution, the financial institution with the written permission of the department may elect to use provisions of Article 14 of Chapter 2 of Title 14 that are not in conflict with this chapter.”

·        Minimum capital stock requirements are amended in O.C.G.A. § 7-1-410.  An established bank or trust company no longer in de novo status shall maintain a minimum capital stock of $3 million or such greater amount as the Department may require based on a proportion of capital to total assets.  Additionally, an established bank or trust company located in such county (with a population of less than 200,000) shall maintain a minimum capital stock of $2 million or such greater amount as the department may require based on a proportion of capital to total assets.

·        New definitions are inserted in O.C.G.A. § 7-1-680.  Check is proposed to be defined as “any check, money order, or any other instrument, order, or device for the payment or transmission of money or monetary value, whether or not it is a negotiable instrument under the terms of Article 3 of Title 11, relating to negotiable instruments.  The term does not include a credit card voucher, letter of credit, or any other instrument that is redeemable by the issuer in goods or services.”  Monetary value means a medium of exchange whether or not redeemable in money.  Money transmission means engaging in the business of receiving money for transmission or transmitting money within the United States or to locations abroad by any and all means including, but not limited to, an order, wire, facsimile, or electronic transfer. 

Committee News 

          Predatory lending was again on the afternoon agenda.  This was a House Banking Committee hearing with the full Committee present.  A number of groups provided comments on behalf of consumers, including the Atlanta Legal Aid Society, AARP, Council on Aging, AFL-CIO, Service Workers Union, etc.  All urged the Committee not to substantially change or repeal last year’s predatory lending initiative, Georgia’s Fair Lending Act.  Each urged the Committee to look carefully at changes and most acknowledged there were some minor revisions needed.  Most raised concerns about eliminating assignee liability.  No vote will be taken on this legislation until next week.