Greetings from the Gold Dome!  Today, Legislators returned to work after taking a few days to hash out budget details.  

Newly Introduced Legislation 

SB 174 -  This is another tort reform bill.  Sens. Meyer von Bremen and Tanksley are behind this proposal amending Article 4 of Chapter 12 of Title 51 and proposing changes to the provisions concerning the pre-requisites for transfer of structured settlement payment rights.  The transfer has to be approved by court order (or by an order of any government authority vested by law with exclusive jurisdiction over the settled claim).  There are some notice requirements concerning the transfer of the structured settlement payment rights included in the bill as well as language relating to the notification of cancellation rights. 

SB 176 – Sens. Meyer von Bremen and Gillis authored this amendment which adds a new Code Section at O.C.G.A. § 31-2-7.1.  It provides that the governing authority of each county would be required to provide an acceptable site or location within that county for the disposal of septic tank waste, once such has been collected, within that county.  There are some measures provided around this – such as if a county has an agreement with another county, municipal corporation or private company to accept the septic tank waste or there is a written agreement with another county, municipal corporation or private company to allow the disposal of septic tank waste at a separate septic handling facility which meets federal regulations. 

SB 177 – Sen. Seabaugh has proposed a change to criminal penalties concerning violation of inspection of public records as provided in O.C.G.A. § 50-18-74.  Currently, there is a fine of no more than $100 for conviction of such.  He proposes that such only be a misdemeanor, and eliminating the fine, if a person knowingly and willfully violates the provisions of either failing or refusing to provide access to records not subject to exemption from review. 

SB 179 – Sens. Thomas, Unterman, Mullis, Smith, Balfour and others have authored this proposal to enact the "Patient Safe Prescription Drug Act" that would provide for electronic prescription drug orders in Chapter 4 of Title 26.   The bill defines new definitions for terms such as "electronic data prescription drug order" and "electronic data signature." 

"electronic data signature" means a secure, personalized digital key, code, number, or other identifier used for secure electronic data transmissions which identifies and authenticates the prescribing practitioner as a part of an electronic data prescription drug order transmitted to a pharmacy." 

O.C.G.A. § 26-4-80 is amended concerning dispensing, electronically transmitted drug orders, refills, and Schedule II controlled substance prescriptions:  

(m)  No licensee or any other entity would be permitted to provide fax machines or equipment, computer software, technology, hardware, or supplies related to the electronic transmission of prescription drug orders to any practitioner which restricts such practitioner from issuing prescription drug orders for certain prescription drugs or restricts a patient from choosing the retail pharmacy to which an electronic prescription drug order may be transmitted. 

(n)  Institutions including, but not limited to, hospitals, long-term care facilities, and inpatient hospice facilities which utilize electronic medical record systems that meet the information requirements for prescription drug orders for patients per this Code Section would be in compliance. 

SB 181 – Sens. Zamarripa and others have offered an amendment to the law governing drivers' licenses in Chapter 5 of Title 40.  It changes the definition of "resident"  In O.C.G.A. § 40-5-1(15)(B), it states that "any person's status as a resident for purposes of this chapter shall be determined without regard to whether such person is either a United States citizen or a non-citizen with or without legal authorization from the U.S. Immigration and Naturalization Service."   The bill is an effort to help Georgia's pursuit of the Secretariat of the Free Trade Area of Americas, which would be of economic interest to Georgia.  Persons from the countries in the FTAA would be able to use their country's driver's licenses as a valid form of identification when applying for Georgia drivers' licenses examinations.   The driver's license examinations would not be extended to foreign governments where the United States Department of State has designated as a terrorist state or states which contribute to terrorism. 

SB 182 – Sens. Meyer von Bremen and others have proposed making an amendment to O.C.G.A. § 41-2-8 regarding abatement of nuisances in order to clarify the procedures for imposition and collection of nuisance abatement liens. It also provides a new definition for an "interested party" which has four requirements:  "A) the parties having an interest in the property as revealed by a certification of title to the property conducted in accordance with the title standards of the State Bar of Georgia; B) those parties having filed a notice in accordance with Code Section 48-3-9; C) any other party having an interest in the property whose identity and address are reasonably ascertainable from the records of the petitioner or records maintained in the county courthouse or by the clerk of the court.  Interested party shall not include the holder of the benefit or burden of any easement or right of way whose interest is properly recorded which interest shall remain unaffected; and D) persons in possession of said property and premises."  Currently, if the owner fails to comply with an order to repair or demolish a dwelling, building, or structure, then the public officer may have the dwelling, building, or structure repaired, altered, or improved or have it vacated and closed or demolished.  This goes further to state that the abatement action shall commence within 270 days after the expiration of time specified in the order for abatement by the owner.  Any time during which such action is prohibited by a court order issued per O.C.G.A. § 41-2-13 or any other equitable relief granted by a court of competent jurisdiction shall not be counted toward the 270 days in which such abatement action must commence.  See O.C.G.A. § 41-2-9(a)(5).  

SB 183 – Sen. Harp and others have offered an amendment to Part 1 of Article 1 of Chapter 4 of Title 4 concerning control of infectious or contagious diseases in livestock.  These changes relate in part to notice and reporting requirements.  Any person who knowingly introduces into Georgia any foreign animal disease or any animal disease, syndrome, chemical, poison, or toxin that poses a substantial threat of harm to the animal industries in Georgia would be guilty of a misdemeanor of a high and aggravated nature.  Some diseases are required to be reported within 24 hours, once laboratory confirmation is made, to the State veterinarian or the United States Department of Agriculture area veterinarian in charge. 

SR 163 – Sens. Seabaugh, Cagle, Shafer, and Mullis have proposed an amendment to the Constitution for a limitation on taxation, spending, and the new or expanded activities by state government.  The bill would amend Article VII by adding a new Section V to the end of such.   Such taxation and spending increases above limitations specified could not be done without direct voter approval.  No expenses of state government would be incurred in any fiscal year which exceed the sum of the revenue limit established by this new proposal plus federal funds and any surplus from a prior fiscal year. 

SR 169 – Sens. Hall and Brush have proposed this Resolution commending first responders, emergency medical technicians, cardiac technicians, and paramedics. 

HB 477 – Rep. Dean and other have proposed amending laws relating to property sold for taxes in O.C.G.A. § 48-4-42.  This new proposal is a sum of several items including the portion of the amount paid for the property at the tax sale representing outstanding taxes, interest, and penalties plus the greater of $500 or a premium of 20% of the amount described for the first year or a fraction of a year which has elapsed between the date of the sale and the date on which the redemption payment is made and 10% of each year or fraction of a year thereafter plus the total amount paid for the property at the tax sale less the amount described; plus any taxes and special assessments paid by the purchaser after the sale for taxes plus if the redemption is not made until more than 30 days after the notice provided for in O.C.G.A. § 48-4-45 has been given, sheriff's cost in connection with serving the notice and the cost of publication of the notice, if any.  This would apply to sales after July 1, 2004. 

HB 481 – Reps. Channell, Graves, Royal, and Day have proposed this amendment to O.C.G.A. § 48-8-3(57) so as to provide for an exemption for food and drink dispensed by or through vending machines or related operations to the extent provided.  This would be phased in over the course of time beginning on July 1, 2004. 

HB 492 – Reps. Richardson, O'Neal, Royal, Parrish, and Burkhalter have co-authored this amendment to the Tax Code in O.C.G.A. § 48-7-40.17 concerning tax credits for the establishing or relocation of corporate headquarters.   It allows not only headquarter companies this credit but it extends such to the headquarters of a subsidiary defined as the taxpayer's "affiliated group" within the meaning of Section 1504(a) of the Internal Revenue Code of 19876, as amended, pursuant to the provisions of Code Section 48-7-101, which employs at least 50 persons in new full-time jobs at such headquarters. 

HB 508 – Reps. Teilhet and Smith have proposed this amendment to Chapter 1 of Title 34 so that an employer must allow an employee who is a victim of a crime to take unpaid leave to attend judicial proceedings related to the crime.  It would be unlawful for the employer to penalize an employee who is absent from employment to attend such judicial proceedings. 

HB 513 – Rep. Twiggs has proposed changes to the law governing recording of instruments relating to encumbered real property located in more than one county.  It would amend O.C.G.A. § 48-6-69(a):  "If any instrument required to be recorded by this article conveys, encumbers, or creates a lien upon real property located in more than one county, the tax required by this article shall be that proportion of the tax which would otherwise be required under this article that the value of the real property within a county bears to the total value of all the real property in all counties in which it is located as described in the instrument.  All such values shall be certified under oath by the holder presenting the instrument for recording." 

HB 515 – Reps. Richardson, O'Neal, and Coleman have authored some amendments to Title 20.  These are the comprehensive revisions concerning education accountability.    Some of the bill's provisions include elimination of the Office of Education Accountability and creation of the Office of Student Achievement of the Department of Education.   It also establishes provisions regarding grounds and proceedings for terminating or suspending employment contracts – basically, if a teacher is demoted or his or her contract is not renewed, then that teacher can file an appeal.  The appeal would go before the Professional Standards Commission which will determine if there are grounds for such an appeal. 

HB 516 – Reps. Richardson, O'Neal, and Coleman have also authored this amendment to Chapter 2 of Title 20 in order to have a comprehensive revision of the provisions regarding education flexibility and accountability.  It changes provisions relating to school councils, early intervention programs, etc.  The property and business of a council must be managed by a minimum of seven school council members. 

HB 517 – Reps. Porter, Powell, and Harbin have authored this amendment to O.C.G.A. § 10-1-7 so as to raise the delinquency charge on any installment not paid within 10 days from the date the payment is due on a retail installment contract or a revolving account.  Currently, this fee is $13.00; the bill proposes this to be $18.00.  It also raises the fees when a check, draft, or order is not honored by the drawee from $25.00 to $30.00 or 5% of the face amount of the check, draft, or order, whichever is greater. 

HB 518 – Rep. Morris has authored an amendment to Title 48 by creating O.C.G.A. § 48-7-29.9.    It provides for an income tax credit with respect to qualified health insurance expenses.    This credit would be allowed on expenses of no more than $1,200. 

HB 521 – Reps. Porter and others have authored this bill amending O.C.G.A. § 20-3-2 in order to require post-secondary educational institutions to provide information about meningococcal meningitis to enrolled students, which is highly contagious but largely preventable.  Such information is outlined as to what students must be told by the school about the disease – such as the fact that individuals may carry the disease for days, weeks, months unknowingly or without becoming ill, and, at any time, from 10-25 percent of the population carries the disease.   The student would be required to sign a document provided by the post-secondary school that he or she has received and reviewed information about the disease but has chosen not to be vaccinated against the disease.  No post-secondary school would be required to provide or pay for the vaccinations. 

Committee Meetings 

Senate Judiciary Committee 

          Sen. Chuck Clay hosted the first Subcommittee hearing on SB 133 regarding Sen. Tom Price's proposal for Civil Justice Reform.  In a packed hearing room, Legislators listened as the bill was presented by its author.  The skyrocketing jury awards were the reason for the bill as these cause healthcare providers difficulty in accessing medical malpractice insurance.  Georgia is now served by only two medical malpractice insurance carriers.  A number of entities testified including the Medical Association of Georgia, numerous hospitals, trial lawyers, victims, and etc.  Trial lawyers are vehemently opposed to the bill.  Lester Tate from Cartersville explained his views on the bill – such as the caps on non-economic damages which he stated "tips" favor to insurers, who are the problem.  Mr. Tate cited that the there was a Seventh Constitutional Right, which this bill attempts to limit – which is wrong.   Sam Bishop testified on behalf of the Wellstar Hospitals.  He explained that in his 30-year history with the industry, this is not the first time he has seen medical malpractice insurance crises.  He stated that his facility would have to expend $23 million for insurance ($10 million is self-insured retention).  This $23 million could buy 300 plus nurses and could be used to make major capital improvements.  He stated that Georgia had a jackpot justice system. 

          The Senate Judiciary Subcommittee hearing the Civil Justice Reform Bill, SB 133, met again on Monday, February 24, 2003.  Not many Senators participated - only Sens. Clay and  Bill Hamrick were there, aside from Sen. Price.   Sen. Clay started with the persons who had signed up to testify at the hearing last week but were not given an opportunity to make their presentations.   Thus, there were a number of folks who testified today - some were actual victims but many were lawyers explaining their views on the bill.   The most harmful victims' testimony came from three ladies who discussed issues which caused suits against the nursing home giant, Beverly Healthcare.  Those were very emotional testimonials. 

A number of lawyers, from both sides, testified about the bill's provisions: 

Foy Devine went through the sections of the bill that he found were most harmful - to the trial bar.  He pointed out Section 13 concerning the caps on non-economic damages.  He said that these damages were not the 'icing on the cake' rather they were an essential part of the tort system.  He said that personal injury or tort victims were rarely able to predict their future needs - these damages helped to cover such.  He also made an argument that these non-economic damages provided a plaintiff with the right to sue and helped pay for the expenses of experts.  He said that by limiting these, the opportunity to retain a lawyer is taken away.  He also argued that the limitations were running contrary to fair recovery and were a bad public policy proposal.  He also did not like the concept of the use of annuity.  He claimed that this would destroy a person's ability to handle unexpected needs.  Mr. Devine also mentioned the future damages reduced to present value issue.  Using this annuity allows the negligent provider to satisfy the judgment with only a small percentage.  He also did not like the joint and several liability language.  Finally, he did not think Section 7 was good - this is the granting of immunity for non-economic damages for emergency room care.  He stated that the current immunity language would cover virtually every hospital admission and it becomes problematic because of the coverage extended to follow-up care/later surgeries. 

Lance Lourie spoke about the collateral source section.  He raised the question of who receives the benefit of health insurance.  He also claimed that the bill really is unfair as it undermines the ability to get economic damages in regards to this.  He reminded the Subcommittee that there is a Constitutional right to a jury trial and he believes that this is an attempt by insurance companies to take away that right. 

Dave Adams brought the three ladies to testify about the nursing home abuse cases.  He claimed that SB 133 will rob nursing home patients (and their families) of civil remedies; the non-economic damages are the most important form of recovery for those victims.  The proposal also, he noted, erodes common law.  He cited medical negligence expert testimony costs between $50,000 - $100,000 per case.  His concerns were the collateral source and non-economic damages proposals. 

The best testimony for the pro-change side came from Judson Graves on behalf of GHA.  He walked through a number of the bill's provisions.  He explained the venue provision in Section 3 which is the 'vanishing venue' law.  He explained that this would take Georgia back to where venue would be anchored where the tortfeasor resides.  Currently, plaintiffs' attorneys are picking venue regardless of where the actors reside and sometimes filing cases and then dismissing actions against one defendant (who may not reside in that location) and continuing with the litigation.  He also explained the need for voluntary dismissal - explaining that plaintiffs have too many opportunities at present to dismiss and re-file.  Once trial starts, everyone should be committed.  The expert witness section is a 'requisite upgrade' - use of expert testimony should be based upon the medical merits.  He explained that a cottage industry had cropped up by these so-called experts.  As for collateral source, he explained that such would allow a judge to reduce verdicts based upon what a plaintiff had received and prevent the double recovery.  He explained that the insurance system cannot continue on its current path.  Non-economic damage immunity for ER care was also mentioned.  Mr. Graves explained that hospitals must take all 'comers' and cannot refuse treatment.  This causes a significant problem when there is no background on a patient.  The bill does not eliminate a person's right to seek remedies.  He also discussed apportionment of fault.  This expands the current law.  Apportionment would be a matter of fairness.  Marginally culpable defendants are exposed to an unbalanced system. 

Among other presentations included one from the business community.  Earl Rogers spoke on behalf of George Israel for the Georgia Chamber of Commerce.  He cited the escalating jury awards as the reasons for changes - which are in turn threatening Georgia's businesses.  He explained what Mississippi had experienced with a special session to try and address the problem of tort reform and how Mississippi had not gone far enough.  He also talked about California's law, calling particular attention that the rise in med mal premiums were 167% BUT over a 20-year period.  Lack of competition is the real issue on medical malpractice issues and SB 133 helps bring balance to the tort system. 

Charlie Grant spoke on behalf of FPIC, which is a med mal insurance carrier doing business in Florida, Georgia, and Missouri.  He stated that his client basically was MAG Mutual of Florida.  Less than 1% of its reserves are invested in the stock market and it was a myth that most reserves were in the stock market.  He stated that if no caps on non-economic damages were enacted then there would not be much relief. 

Tom Gose from MAG Mutual also made his presentation.  This was much like what we have seen - complete with the numbers. 

Birt Fridlin testified on behalf of the small business community, NFIB.  He claimed that the bill would help address the numbers of frivolous lawsuits which were filed and would help lessen costs to the healthcare system. 

There were a few others who testified - such as Linda Lowe, Cathey Steinberg, a Rockdale County resident, etc.  

Another hearing was held today. This was supposedly an opportunity to allow Senators to raise questions.  However, instead, additional testimony was provided with the Subcommittee meeting privately following the presentation in an effort to sort through their issues with SB 133.  It would appear that one final hearing will be held, probably on Friday. 

The subcommittee heard from Jim Durham, the President of the State Bar; representatives from the Insurance Commissioner's Office on the medical malpractice insurance premiums issue; a representative of Children's Healthcare of Atlanta; and Charley Hood with Georgia Pacific made a statement that Georgia needed tort reform to enhance the business climate and retain jobs in the State and that the proposed language regarding venue, apportionment of fault, and expert witness standards would help that. 

The State Bar is opposed to the bill in its entirety.  The Bar's "themes" were 1) access to justice; and 2) judicial economy while ensuring a fair and impartial system.  On the "convenient forum" issue, Mr. Durham said that venue provisions always say you can sue a defendant where it resides and that most defendants enjoy that home field advantage.  He also raised the point that SB 133 seeks to change the venue rules for personal injury actions and not other types of litigation (such as commercial litigation), which he believes raises equal protection issues.  Mr. Durham asked why this provision was critical in the first place and suggested that the Senate  examine the disadvantages and advantages to the parties.  He classified this as a serious "access to justice" problem.  On the apportionment issue, Mr. Durham commented that in the case of the insolvency of the defendant, as between a plaintiff and the remaining defendants, the plaintiff should not be the one to bear that burden.  He claimed that this was shifting the burden to the wrong party. 

          There is some discussion that perhaps two tort reform bills will be one of the Subcommittee’s recommendations, so as to separate the medical malpractice issues from the products liability issues. 

          Another Senate Subcommittee took up SR 1 on February 21, 2003, the newest version of "Charitable Choice" law.  This proposal is authored by Sen. Harp.  A number of groups testified about the Resolution which proposes to amend the State's Constitution concerning separation of church and state.  Sen. Harp stated that Georgia had basically adopted the Blaine Amendments; this Resolution proposes to overrule such.  However, it would not foster religion.  It would allow religious organizations to provide healthcare services in the community.  It specifically states:  "No money shall ever be taken from the public treasury, directly or indirectly, in aid of any church, sect, cult, or religious denomination or of any sectarian institution. However, nothing in this Paragraph or any other provision of this Constitution shall prohibit the use of money from the public treasury to support public health or social service programs for people in need which are provided without regard to any recipient's religious affiliation, belief, practice, or lack thereof by religious or sectarian organizations, religious denominations, or individual houses of worship, provided that no such public money shall be used for sectarian worship, instruction, or proselytization."  A number of nonprofit groups such as the Georgia Family Council spoke in favor of the bill.  Others raised concern in that there were no limits or accountability for the funds, once received, by the organization.  Many non-profits would prefer that either there be a separate entity providing such services and such be a 501(c)(3) entity or that some other mechanism such as a contractual requirement be added to each contract that there would some form of oversight and accountability for the monies.  The Subcommittee which heard SR 1 consisted of Sens. Hamrick, Clay, Adelman, and Harp.

House Appropriations 

          The Department of Community Health Subcommittee met on February 25, 2003.  Chairman Jay Shaw took the Well in the Appropriations Room to explain that his Subcommittee needed more time to deal with the 2004 Budget.   Thus, it could not make recommendations for the full Committee to review.  He explained that the severity of the budget cuts to the three major providers – hospitals, nursing homes, and physicians - were of great concern to all of his Subcommittee.  They had made a commitment to look for monies elsewhere and perhaps eliminate programs altogether if necessary in order to help the providers.  It is unclear presently when this Subcommittee plans to reconvene.  Thus far, there have been more than 40 hours expended by this Subcommittee on trying to come up with a plan for the Department of Community Health's Budget for FY 2004. 

Senate Health and Human Services 

          Sen. Thomas held a hearing on several bills.  SB 171, concerning how hospitals are reimbursed for care when a patient is a resident indigent of another county, was held and will be heard next week.  SB 96, the off-label prescription drug bill, pushed by Genentech and carried by Sen. Unterman, was passed with an amendment provided by the Georgia Association of Health Plans.  The bill would basically allow physicians to use prescription drugs for off-label uses under certain conditions and restrictions.  This is currently being done and being paid for by the health plans – without any typical review unless the drug is on prior authorization.  SB 145, the bill which will allow a closed panel health maintenance organization to mail prescription drugs to its enrollees within the State, passed with no changes.  Testimony was provided for the bill by Kaiser Permanente and those against the bill were the Georgia Pharmacy Association and a former member of the Georgia Board of Pharmacy.  Georgia is the only state which does not allow prescriptions to be mailed within the State.  Pharmacy benefit managers routinely mail prescriptions into Georgia from other states.  

Senate Insurance and Labor Committee 

          Sens. Lamutt, Brown, Hall, Zamarippa, Golden, Stokes and Shafer met to hear several bills.  SB 166 concerning individual annuities which are purchased was passed without amendments.  The bill proposes a 1 ½% cap rather than the current 3% cap in current law.  The proposal is to lower the cap for 3 years and then review the issue.  Phillip Vance with the National Asociation of Insurance and Financial Advisors spoke out and proposed a 2% cap instead with a 2-year sunset. 

          The Committee also passed out SB 156 which relates to insurable interests of employees.  This bill was brought to the Committee by the Department of Insurance. 

          Finally, the Committee addressed three bills concerning workers’ compensation trust fund.  The Labor Commissioner, Michael Thurmond, also testified about the fund’s solvency.  Changes are being proposed to this fund – one of which extends the moratorium on payments made by employers for another year.  SB 164, 165, and 167 all relate to this issue.  The small business community was in favor of the tax moratorium.  Elizabeth Appley asked that a resumption of the tax be reinstated and that the Committee look at adjusting the base as there are a number of workers who cannot access unemployment benefits under the current system.

Other News 

          Sen. Faye Smith is in the hospital in Macon with a brain aneurysm.  She apparently is in stable condition following surgery.  Currently, it is unknown whether she will return to work this Session.  

          Georgia Center for Nonprofits hosted "Nonprofit Day at the Capitol" on Monday, February 24, 2003. 

          On Thursday, February 27, 2003, Georgia's hospitals will descend on the Capitol for Hospital Day at the Capitol.