Greetings from the Gold Dome!  Legislators worked further today on the Budget.  However, it would appear that the Senate does not have its FY 2003 Supplemental Budget finalized yet for a vote.  

Floor News 

          The Senate started much later than the House today and thus was still handling its business at mid-afternoon.  The Senate Minority’s members took the Well to communicate its feelings that the Senate Majority had failed to work on substantive issues thus far this Session.  Congressman Jack Kingston also made an appearance today. 

          The Senate passed SB 102 with some amendments.  This bill proposes to enact the Indigent Defense Act of 2003 and creates an agency to replace the Indigent Defense Council and establish a more uniform system of paying for indigent defense across the State.  The Senate also passed SB 11, relating to income taxes, in an effort to provide some jobs tax credits in designated counties which are less developed.  This passed by a vote of 53 to zero.  Additionally, the bill dealing with liability issues for court-appointed guardian ad litem, SB 44, passed by a vote of 52 to zero.  This provides some immunity for those persons. 

          The House passed HB 189 which is a Tax Bill concerning carpet samples.  The question was whether carpet samples should be subject to taxation, once sold.  This bill, which passed by  a vote of 166 to zero, requires carpet samples to be taxed, once sold, at a rate of 21.9% of the cost of the raw materials for ‘residential carpet’ and 1 percent for industrial carpet samples.  Apparently, this practice has been in place already, just not codified, by the Department of Revenue. 

          Rep. Childer’s HB 56 also passed out of the House today.  The bill amends current law found in O.C.G.A. § 31-44-3  on who may serve on Georgia’s Renal Dialysis Advisory Council.   This Council is composed of 13 persons: one member recommended by the Dogwood Chapter of the American Nephrology Nurses Association; one member recommended by the Georgia Association of Kidney Patients; two physicians specializing in nephrology recommended by the Georgia Renal Physicians Association; one member recommended by the National Kidney Foundation of Georgia; two administrators of facilities certified as outpatient dialysis facilities in Georgia; three members of the general public, two of whom shall be dialysis patients or family members of dialysis patients; one member representing technicians working in renal dialysis facilities; one member representing social workers working in renal dialysis facilities; and one member representing nutritionists working in renal dialysis facilities.  The bill now will be heard in the Senate. 

New Legislation 

HB 417 – Reps. Smith, Burkhalter, Graves, Westmoreland, Harbin and others have proposed to change litigation costs in civil actions to provide for recovery of costs and attorneys’ fees by prevailing parties (in certain instances) who made offers or demands of judgments in tort actions.  Among its provisions are recovery of litigation costs in civil actions (tort) when a defendant files an offer of judgment which is not accepted by the plaintiff within 30 days if the defendant prevails (if the judgment obtained by the plaintiff is at least 25% less than the offer).  If the costs and attorney's fees total more than the judgment, the court would enter judgment for the defendant against the plaintiff for the amount of the costs and fees, less the amount of the plaintiff's award.  If the plaintiff files a demand for judgment, not accepted by the defendant within 30 days, and the plaintiff recovers a judgment of at least 25% more than the offer, the plaintiff can recover the costs and attorney's fees.  If the offer is rejected, it cannot be used in subsequent litigation (with some exceptions).  The bill also outlines how to make an offer of settlement; an acceptance requires a written response filed with the court, within 30 days after service (the offer is not filed unless it is accepted).  Once both are filed, the court has the jurisdiction to enforce the settlement agreement.  There are also certain guidelines outlined for determining a reasonableness of attorney's fees.  There could also be appeals from awards of attorneys’ fees or expenses of litigation which are derived from this amendment to O.C.G.A. § 9-15-16.  This was referred to the House Judiciary Committee. 

HB 418 – Rep. Mobley has authored an amendment to the law on convenience stores.  This amendment is a new Article 34 in Chapter 1 of Title 10.  It proposes that no convenience store shall be operated in Georgia unless there is a secured safety enclosure of transparent polycarbonate or other material which is basically bulletproof.  These convenience stores would have less than five employees and are in the business of retail gasoline and offer groceries or food services.  Such enclosures would be required as of January 1, 2004. 

HB 421 – Reps. Powell and Parham propose to create O.C.G.A. § 33-34-10:  “an insurer shall notify a vehicle lienholder named on the certificate of title when the insurer makes a payment to the insured to cover damages to the insured’s vehicle.”  This was forwarded to the House Insurance Committee. 

HB 422 – Reps. Richardson and O’Neal along with others have offered a Tax Code change so as to allow an income tax credit for businesses which create certain full-time employee jobs.   There is an investment requirement which “means the requirement that by the close of the sixth taxable year following the withholding start-date a minimum of $450 million in qualified investment property will have been purchased or acquired by the business enterprise to be used with respect to a qualified project.”  There is a job creation requirement – it means that no later than the close of the sixth taxable year following the withholding start-date, the business enterprise would have a minimum of 1,800 full-time employees.  The bill outlines how the job tax credit can be used and under what conditions.  There is a process for getting an application for this ‘credit’ – if approved, the business enterprise shall be allowed a tax credit for taxes imposed equal to $5,250 annually per new eligible full-time employee for five years beginning the year in which the job is created through year five after such creation – there is an exception that such credit would not apply if it exceeds the business enterprise’s tax liability for the year (the excess may be taken as a credit against the enterprise’s quarterly or monthly payment as required by O.C.G.A. § 48-7-103).   This was referred to the House Ways and Means Committee. 

HB 423 -  Rep. Howell and others offered this amendment to O.C.G.A. § 36-37-6(j) which proposes to allow a municipal corporation to lease municipal property for up to 20 years to a nonprofit corporation.  The nonprofit would be required to use and operate the property for annual regional fair purposes or to continue the recreational purpose to which the property was formerly used and intended, on a nondiscriminatory basis for the use and benefit of all citizens of the community.  Such property would include fairgrounds, ball fields, golf courses, swimming pools, etc.  It further requires that the nonprofit provide liability insurance of at least $1 million per claim. This was forwarded to the House State Properties and Community Affairs Committee. 

HB 428 – Reps. Borders and others have authored this amendment to Title 37 to create a new Code Section at O.C.G.A. § 37-2-1.1 to establish an Intellectually Disabled Health and Fitness Program Fund for statewide health and fitness programs for the intellectually disabled provided solely by the Special Olympics of Georgia.  There is also a proposal to create a program to provide direct aid to adults with intellectual and other developmental disabilities who need financial help in order to live independently.  A special license plate is proposed through Chapter 2 of Title 40 to promote the Special Olympics Georgia and financially benefit the Intellectually Disabled Health and Fitness Program Fund.  This will now be heard by the House Motor Vehicles Committee. 

HB 429 – Reps. Bordeaux, Bannister, and Ralston have proposed some changes to workers’ compensation. It deletes the requirement that notice to non-resident parties must be sent by certified mail.  It also amends O.C.G.A. § 34-9-200(c) concerning medical care and treatment.  “As long as an employee is receiving compensation, he or she shall submit himself or herself to examination by the authorized treating physician at reasonable times.  If the employee refuses to submit himself or herself to or in any way obstructs such an examination requested by and provided for by the employer, his or her right to compensation shall be suspended until such refusal or objection ceases and no compensation shall at any time by payable for the period of suspension unless in the opinion of the board the circumstances justify the refusal or obstruction.”    Previously, if the employee refused medical (surgical or hospital care) when order by the board, then the board had discretion as to whether to suspend or reduce the compensation of the employee unless the board feels there were circumstances to justify the refusal. 

The bill also amends O.C.G.A. § 34-9-203 concerning an employer’s liability for medical charges.  It proposes that if any charges for healthcare goods or services are not paid when due, or any reimbursement for healthcare goods or services paid by the employee or any charges for mileage incurred by the employee are not paid when due, penalties would be added to the charges and paid at the same time as, and in addition to, the charges claimed for the healthcare goods or services. Charges paid more than 30 days after their due date, but paid within 60 days of such date, would incur an added 10% to the charges; for charges paid more than 60 days after their due date, but within 90 days of such date, an extra 20% would be incurred.  For those not paid within 90 days of their due date, in addition to the 20% added charge, the employer or insurer would have to pay interest on that combined sum in an amount equal to 12% per annum from the ninety-first day after the charges were due until payment in full was made.  Another of the bill’s provisions increases compensation for total disability, as found in O.C.G.A. § 34-9-261.  The current weekly average is no more than $400; this proposes to increase the cap that an employer would have to pay to $425 per week (and not less than $42.50 per week (currently, the minimum is $40 per week)).  If the weekly wage is below $42.50, then the employer would pay a weekly benefit equal to the average weekly wage.  The bill does not change the length of time such benefits can be paid – the maximum is 400 weeks from the date of injury except in catastrophic injury cases and in those instances the benefits continue until the employee undergoes a change in condition for the better.  Additionally, the bill amends O.C.G.A. § 34-9-262 to increase the cap for temporary partial disability.   Currently, the law is no more than $268; this proposes to increase this to $284 per week with the period not exceeding 350 weeks.  This was referred to the House Industrial Relations Committee. 

HB 430 – Rep. Heckstall has proposed an amendment to Chapter 11 of Title 43.  The bill specifically amends O.C.G.A. § 43-11-17(9) to include that the practice of dentistry includes: “makes, fits, repairs, or adjusts any cap, covering, prosthesis, or cosmetic covering for a human tooth or teeth unless such cosmetic covering, prosthesis, covering, or cap is ordered by and returned to a licensed dentist.”  Further, the bill amends O.C.G.A. § 43-11-50 to give local law enforcement the ability to make arrests of persons who are practicing dentistry without a license (currently, there are fines but the law does not state that a person can be arrested).  The House Health and Ecology Committee will review this bill. 

HB 431 – Reps. Murphy and others have proposed a new Tax Code exemption so as to allow an income tax credit for teachers for qualified education expenses, when such expenses do not exceed $250.  This was sent to the House Ways and Means Committee. 

HB 433 – Rep. Mitchell and others propose to require that owners of any day-care center, family day-care home, group day-care facility, or group day-care home be covered by liability insurance in the amount of at least $15,000.  Such insurance would be required to obtain a license or a renewed license.   This was referred to the House Children and Youth Committee. 

HR 225 – Rep. Borders has proposed a Constitutional Amendment to Article III, Section IX, Paragraph VI (m) in order to create an intellectually disabled health and fitness support program fund and to provide that those funds would come from the voluntary purchase of prestige license plates.  This would fund existing Special Olympics Georgia programs and would provide direct aid to adults with intellectual and other developmental disabilities who need financial help to live independently.  The bill has a proposed ballot question regarding same.  This was referred to the House Appropriations Committee. 

HR 227 – Rep. Mobley proposed this Resolution creating the Joint Study Committee on Certified Professional Midwifery.   The bill states that 33 other states allow direct-entry midwives to practice in out-of-hospital settings and that a large majority of home-based births which occur in the United States are attended by these “direct-entry midwives.”  This joint study is charged to determine whether certified professional midwives can safely provide such obstetrical care.  It would be composed of five members from the House of Representatives and five members of the Senate.  It would be co-chaired by one member from each Legislative body.  Their findings would be made on or before December 1, 2003.  The House Rules Committee will review this proposal. 

HR 228 – Need dental work?  Perhaps you need to look more closely before having work done by your dentist.  Rep. Heckstall and others have offered a Resolution which urges the Governor’s Office of Consumer Affairs to address the public about the health dangers of certain cosmetic coverings of the teeth (caps, cosmetic coverings, and prostheses for human teeth).  The House Health and Ecology Committee will look further at this Resolution. 

HR 229 – Rep. Harbin and others have proposed a Constitutional Amendment to Article III, Section IX, Paragraph VI (n) to allocate the total revenue from the State excise tax on cigars, cigarettes, and other tobacco products to fund the State’s Medicaid program.  This would be a separate medical assistance trust fund.  The bill has the corresponding ballot submission attached.  The House Ways and Means Committee will delve further into this Resolution. 

SB 150 – Sens. Gillis, Starr, Crotts, and Bowen have proposed a new section, O.C.G.A. § 43-21-16, to make it unlawful for a Georgia hotel operator to charge excessive room rates during a special sporting event as well as to prohibit hotels from imposing special service charges or fees or requiring guests to reserve room nights before or after the special sporting event or to purchase other goods or services in order to use the hotel rooms during the period for the special sporting event.   This is an effort to prohibit price gouging.  Special sporting event is defined as any athletic event or competition open to the general public expected to draw a crowd of 10,000 or more spectators for the viewing of the competition.  If the hotel does so, it could be guilty of a misdemeanor with a fine of not less than $100 nor more than $1,000. Each room night and each room provided in violation of this Code section would be a separate offense.  This was referred to the Senate Economic Development and Tourism Committee. 

SB 151 – Sens. Hall and Cheeks have authored this bill expanding the description of “peeping Toms.”  It specifically amends O.C.G.A. § 16-11-61.  “It shall be unlawful for any person to peep or otherwise observe by any means not authorized by this part, including, but not limited to, observing through windows, doors, openings, or other similar places on or about the premises of another for the purpose of spying upon or invading the privacy of another person or to go about or upon the premises of another person for the purpose of violating this Code Section.  It shall also be unlawful for any person to observe by any means, including but not limited to, a telescope, binoculars, camera, motion picture camera, camcorder, or record by electronic means, a person who in the interior of an area in which the occupant has a reasonable expectation of privacy, with the intent to invade the privacy of a person or persons inside.  This subsection shall not apply to those areas of a private business used to count currency or other negotiable instruments.”  This was forwarded to the Senate Special Judiciary Committee. 

SB 156 – This proposal by Sen. Shafer amends Chapter 24 of Title 33 concerning an insurable interest.  This requires that written notice to employees be made when an employer purchases life insurance on employees.  Employees can refuse to participate.  This would apply to life insurance contracts issued or delivered in Georgia after July 1, 2003.  This bill was sent to the Senate Insurance and Labor Committee. 

Committee News 

House Judiciary 

          The Civil Law Subcommittee met this afternoon to hear HB 229 which is a substantive re-write to Title 29 relating to guardianship issues.  Reps. Boggs, Campbell, Willard, and Walker heard from Rep. Oliver, author of the bill which basically was done by the Probate Section of the State Bar.  A Georgia State University Law Professor was hired by the State Bar of Georgia to help with the writing of the legislation proposed.  The new proposal breaks the law now into four major chapters:  1) guardianship of children; 2) conservators of children or minors; 3) guardians of adults; and 4) conservators of adults. 

          Changes made reflect the Georgia Supreme Court’s decisions and respects constitutional rights concerning parents.  It clarifies the law on who will guard a child’s property allowing the Court to make that determination when the amount is greater than $15,000.  Additionally, if the parents are dead, then the Court will decide the best interests of the child (if no provisions are made) rather than allowing children go to other relatives. 

          If the case shows abuse or neglect of a child, then the case will be referred to the Juvenile Court. 

          The Subcommittee asked a number of questions on the procedures for providing a guardian for an incapacitated adult.  There will still be the requirement that the adult would need to be evaluated by a doctor or a psychologist (also there is language proposed to add a licensed clinical social worker).  A court evaluation would also be done – such evaluation could not be waived but can be contested.  There is also a process for preparing a petition for both guardianship and conservatorship of an adult. The Subcommittee also inquired about appointments of temporary guardians.  Conservators would also be required to make reports on annual basis to the Court.  There are also processes for getting bonds (when property is in question) – there are personal bonds (which are much more expensive) and commercial bonds. There were also inquiries about whether this re-write was in conflict with last year’s Standby Guardianship bill; it supposedly is not.  There are some safeguards too in place for the emergency appointments of guardians (although some pointed out that the time was not long enough to get to the judge once the medical evaluation had been done).  

          No action was taken on HB 229 at this meeting.  Another meeting will be scheduled to hear from the public.  

House Insurance Committee 

          The House Insurance Subcommittee on HB 215 met to take up the credit scoring legislation.  Reps. Watson, Dodson, and Murphy heard from Rep. Golick  who is carrying the legislation for the Department of Insurance.   Rep. Golick acknowledged that insurance companies are basically in the business of making money but they must evaluate risks versus the likelihood of paying the claims in order to predict their losses.  Credit is used by the industry and has been for the last decade or more.  This attempts to place standards on such conduct.  The bill was modeled after NCOIL model legislation on credit scoring.  Consumers would be required to be notified of any adverse action.   There were some questions on how insurance companies dealt with medical hardships; apparently, there are ‘codes’ in place now on dealing with such as reported by the healthcare providers. There were some comments made in opposition to the Bill by Consumer’s Insurance Advocate Cathey Steinberg.  She claimed that the bill would possibly promote discrimination based upon race and income.  She also inquired about using zip codes to ‘score’ a person.  She also asked for clarification of the language “any other applicable underwriting factor.”  She also asked about the disclosure of information and whether that information would be signed in the affirmative by the consumer.  (Rep. Golick argued that the bill tracked the federal law.)  One clarification was made by lobbyist Martin Wilson concerning final “insurance” score rather than credit score – additionally he pointed out that the statute already had laws in place concerning non-renewals and cancellations.  The bill was passed by Committee Substitute to the full Committee for its review. 

Other News 

          If you want to participate in Peanut Butter and Jelly Day at the Capitol, please mark your calendars!  It is scheduled for March 12, 2003.  This is an annual tradition honoring the efforts of Georgia’s peanut growers as the No. 1 producers of peanuts in the nation, producing 40% of the total national supply.