March 4, 2003

          Day 24 commenced today.  Slowly but surely the days are ticking off towards Day 40.  Here's a short recap of the day's highlights.

Floor News

          In the Senate, Sen. Lamutt moved to place SB 165 and SB 167 to the foot of the calendar.  These bills deal with unemployment compensation.  SB 167 proposes to extend the reduction on employer contributions.

          Sen. Gloria Butler presented SB 22 which passed by Committee Substitute.  This bill strengthens Georgia's law concerning reporting of crimes for sexual offenses concerning workers in facilities for children and the elderly.

Members of the Silver-Haired Legislature were presented by Sen. Unterman.  Additionally, members of AARP were recognized by Sen. Stephens.

Sen. Shafer presented SB 156 which redefines "insurable interest," which later passed by a vote of 53 to zero.  Sen. Jack Hill presented SB 115 which relates to certification of minority-owned businesses.

Sen. Don Balfour presented SB 145 which allows mail order for prescription drug refills for enrollees of a closed-panel health maintenance organization.  Sen. Cheeks rose in opposition to the bill while Sen. Nadine Thomas spoke eloquently about the benefits of such provisions in SB 145.  Sen. Thomas explained that it would help consumers, especially the elderly or those with transportation difficulties, and that there were no great risks involved in mailing prescriptions.  Sen. Unterman, who previously voted against the bill in the Committee, voted in favor of the bill.  The bill passed by a vote of 37 to 13.

Another pharmacy-related measure was also on the Senate Floor, SB 96.  Sen. Unterman presented the bill, a measure which will purportedly help Genentech (a manufacturer of growth hormones).   The bill requires a health benefit policy to cover off-label use of prescription drugs for persons with life-threatening or chronic and disabling conditions or diseases.  The bill had been amended in Committee and was passed by Committee Substitute by a vote of 51 to zero.

The House side also had a busy calendar with ten pieces of legislation dealt with during the day.  Here are a few highlights of the more significant bills:

SB 53, predatory lending re-writes, was the hottest topic and ticket for the day.  Last year, the Georgia Fair Lending Act was passed.  SB 53 attempts to address some concerns about securitizing certain loans as fears came to light through Standard & Poors rating of certain new loans.  Basically, Standard & Poors threatened to no longer rate bonds relating to Georgia mortgages.  The biggest problem is that the House had already passed HB 142, another bill dealing with issues surrounding Standard's concerns.  When SB 53 arrived in the House, it was amended in the House Banks and Banking Committee.  High-cost loans are those where the lender charges an interest rate higher than 10 percentage points above the United States Treasury yield or those which have total fees and points (charged to the borrower) in excess of seven percent of the loan amount.  Lenders, which deal in high-cost loans, are barred from a number of things such as: 1) including pre-payment fees (except for the first two years of the loan); 2) establishing payment plans where payments do not decrease the amount of interest due; 3) approving loans unless borrowers have had counseling by a third-party non-profit organization concerning the loan specifics; 4) approving loans where the payments (including other debts) exceed more than 50% of the borrower's monthly gross income.

SB 53 was debated for some length with a number of amendments proposed, but only one was passed.  This amendment was a compromise of sorts by which some liability was extended to the purchaser or assignee of a high-cost loan if it could not show due diligence in its efforts to prevent the purchase of the high-cost home loans.  Purchasers or assignees who were found to be buying these high-cost home loans without efforts to avoid them would be forced to repay the borrower's remaining indebtedness on the loan plus attorney's fees.  The amendment also contains language to allow for an injunction action to be filed to stop foreclosure proceedings so the matter can be settled.  Additionally, the "loan flipping" definition was also expanded.  After passing, the bill was sent back to the Senate for it to agree to the changes made.  The Senate agreed to the Committee Substitute with Floor Amendment.

The House also passed HB 93 by a vote of 161 to zero which concerns occupation taxes.  The bill redefines gross receipts and makes exclusions to certain sales.

Fulton County State Court will get an additional judge, the House stated today.  HB 446 passed by a vote of 101 to zero.  Likewise, there will be an increase in the number of Fulton County Magistrates – HB 445 also passed by a vote of 101 to zero.

Another bill of major interest was one dealing with the wearing of bulletproof vests during the commission of crimes (such as robberies, murders, etc.).  HB 173 makes persons wearing such in committing crimes of this nature guilty of a felony.

Water was another subject on the House's agenda.  HB 285 deals with water quality issues especially those dealing with storm runoff and soil erosion prevention.  This bill requires land developers to receive education and training so that such problems may be averted.  HB 285 also establishes a fee of $80 per acre to be collected to pay for the inspection and regulation functions provided by the State's Environmental Protection Division.  Local governments with implemented permitting and inspection guidelines could receive half of the $80 fee to assist them with their regulatory efforts.  There is also a sixteen-member panel established by the Board of Natural Resources to evaluate turbidity testing standards.

Newly Introduced Legislation

HB 638 – Rep. Channell and others have authored this bill amending Chapter 18 of Title 45 so that employees of not-for-profit critical access hospitals (those with 25 or fewer beds) can purchase health insurance for their employees through the State's health benefit plan.  This has been forwarded to the House Appropriations Committee for consideration.

HB 641 – Rep. Powell offered this legislation amending O.C.G.A. § 48-5-7.4 concerning bona fide conservation use property in order to provide for additional qualifications concerning ownership of such.  This bill has been referred to the House Ways and Means Committee.

HB 653 – Reps. Rogers and others have proposed amending O.C.G.A. § 16-12-171(b) relating to the sale or distribution to or purchase by minors of cigarettes and tobacco-related products.  Currently, the law states that it is unlawful for a minor to purchase cigarettes or tobacco related objects – this makes it also unlawful for that minor to "possess" such.

HB 654- Rep. Crawford has authored this legislation amending O.C.G.A. § 48-4-45(a)(1) so that notice of foreclosure of right to redeem must be served personally in accordance with requirements of O.C.G.A. § 9-11-4 upon all of the following persons who reside in the county in which the property is located and whose addresses are known or can be ascertained through reasonable diligence:  "A) the defendant in the execution under or by virtue of which the sale was held; B) the occupant if any of the property; and C) all persons having of record in the county in which the land is located any right, title, or interest in, or lien upon the property."

HB 656 – Rep. Chambers and others have proposed an amendment to O.C.G.A. § 10-1-393 (b)(29) so that each consumer reporting agency which compiles and maintains files on consumers on a nationwide basis shall notify consumers when a person or entity, other than a person or entity with whom the consumer has a business relationship, makes an inquiry concerning the consumer's file with such consumer reporting agency.   The bill requires that this notification be in writing and shall state the name, full mailing address, and telephone number of the person or entity making the enquiry.  "Business relationship" is information contained in the files maintained by the consumer reporting agency on the consumer which indicated that the consumer has an existing or former account or relationship with that person or entity.

HR 334 – Rep. Sheldon along with colleagues introduced this Resolution creating the House Study Committee on Long-Term Care Insurance.  This has now been sent to the House Rules Committee.

SB 213 – Sen. Seabaugh's bill requiring licensure by the Safety Fire Commissioner of any person who conducts a pyrotechnics display before an audience (which amends Chapter 10 of Title 25) has now been forwarded to the Senate Public Safety and Homeland Security Committee.

SB 214 – Sens. Mullis, Hamrick, and Price have proposed this amendment to O.C.G.A. § 45-16-45 in order to provide that the chief medical examiner  of the Division of Forensic Sciences of the Georgia Bureau of Investigation and district attorneys will have the authority to disinter bodies under certain circumstances.  This has now been referred to the Senate Judiciary Committee.

SB 225 – Sens. Thompson and others have proposed the enactment of the "Frivolous Litigation Prevention Act."  The bill's provisions include an amendment to O.C.G.A. § 9-11-11 defining 'signature.'  Under this proposal, it would require that every pleading and other document be signed by at least one attorney of record in the attorney's individual name or if the party is not represented by an attorney, to be signed by the party.  Each pleading or document is required to state the signer's address and telephone number, if any.  If a pleading or document is received unsigned, it will be stricken unless omission of the signature is corrected promptly after being called to the attention of the attorney or party.  Further, the bill clarifies representation to court, sanctions (which can be done by motion or by court initiative); nature of sanctions – limitations; order; and inapplicability to discovery.  There are some additional provisions in the discovery portion of the Code found in O.C.G.A. § 9-11-37.  It amends current law on failure to make discovery, motions to compel, sanctions, and expenses.  This extends such to the attorney not only advising a party but also the insurer who hired the attorney.

SB 233 – Sens. Lamutt, Golden, Blitch, and Balfour have proposed amending Chapter 9 of Title 34 and specifically O.C.G.A. § 34-9-102(j).  These changes pertain to hearings before an administrative law judge in a workers' compensation matter.  The notice provisions are amended so that there is no longer a requirement that such be sent by certified mail.  Additionally, another amendment in O.C.G.A. § 34-9-200(c) relating to medical care and treatment is changed.  "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."  Another change is made in O.C.G.A. § 34-9-200.1(g)(6) pertaining to rehabilitation benefits by making an exception: "that no presumption shall be created by any decision granting or denying disability income benefits under Title II or supplementary security income benefits under Title XVI of the Social Security Act."  There are some time limitations on the submission of medical bills.  There are also changes concerning the provision of permanent disability benefits.  Disability benefits are raised from $400 as a maximum per week to $425 per week (but not less than $42.50 per week – current law places this floor at $40).   Temporary partial disability is also increased from $268 per week to $284 per week (the time frame remains so that such cannot exceed 350 weeks from the date of injury).

SB 237 – Sens. Thompson and others have proposed amending Chapter 9 of Title 33 so that all insurers would be required to publish certain information on an annual basis concerning its financial health and condition.  This publication would be required to be published as an advertisement in the legal organ for the county in Georgia in which the main office of such insurer is located or the county of Georgia in which the insurer's registered agent for service is located.  This advertisement shall not be less than one-quarter of a page in size and shall also include a summary of the rate filings by such insurer during the previous 12-month period.

SB 238 – Sens. Thompson, Meyer von Bremen, Jackson, Reed, Stokes, and Butler have co-signed this bill amending O.C.G.A. § 33-9-21 in an effort to require the approval by the Commissioner of Insurance of all rates, rating plans, rating systems, and underwriting rules prior to those rates becoming effective.   This would apply to any domestic, foreign, or alien insurer for all types of policies (not just motor vehicle insurance).  Once submitted, the Commissioner has 45 days within which to approve such. 

SR 208 – Recognizing tourism as a major industry in the State, Sens. Mullis and others have commended the tourism industry and have named March 12, 2003 as "Georgia Tourism Day."

SR 212 – Sen. Mullis and others have offered this Resolution creating a Joint Study Committee on the Indemnification of Emergency Personnel.  This has now been referred to the Senate Judiciary Committee.

SR 213- Sens. Mullis and others have also offered this Resolution which provides the General Assembly to provide by law for the indemnification for 911 operators and dispatchers and state and local emergency management agency employees who are not otherwise employed as law enforcement officers, firefighters, emergency medical technicians, emergency management rescue specialists or 911 employees who are killed or permanently disabled in the line of duty. This is a Constitutional Amendment.  It has also been referred to the Senate Judiciary Committee.

Committee News

House Insurance Committee

          The Committee took up HB 215, the credit scoring bill.  Rep. Watson reported that this bill passed out of his Subcommittee by Substitute.  Rep. Golick, the author of the bill brought on behalf of the Department of Insurance, explained that insurance companies had been using credit scoring for the last 10-15 years.  This is not a new practice and there are currently no standards in place on how these credit scores can be used.  This bill is modeled after the NCOIL model with some minor changes in an effort to strike a balance between the insurance market and consumer protections.  Currently, consumers are not protected and insurance companies attempt to use this information in an effort to predict more accurately future losses.  It amends specifically O.C.G.A. § 33-24-91, et seq.  Among its many provisions, it addresses anti-discriminatory issues; prohibits policy denials and non-renewals based on credit; does not require credit card accounts for credit scoring; deals with adverse actions unless a 180 day credit report is used; inquiries on collection accounts with catastrophic medical issues; instances where multiple credit applications are in place (for shopping for home or car purchases); dispute resolution process; hold harmless clause for agents; etc.  Reps. Bruce and Heard basically articulated concerns regarding the weight of credit being used as a factor in the rating process.  The bill was passed without further changes or discussion.

          Chairman Lord assigned HB 619 to a Subcommittee comprised of Reps. Watson, Rogers, and Harbin.   This is the bill which proposes to provide for the issuance of group accident and sickness insurance under a franchise group plan.

Senate Public Safety Committee

          This Committee passed Sen. Stephens ammonia bill.  This limits the amounts of anhydrous ammonia which a person can possess.

          The Committee also passed by Committee Substitute the pyrotechnics bill brought by Sen. Seabaugh.  This bill was brought at the urging of Commissioner John Oxendine and the State Fire Marshall.  This bill is in response to the Rhode Island tragedy.  Commissioner Oxendine and Sen. Seabaugh pointed out that Georgia's law is out of date and this bill proposes to avert here what happened in Rhode Island.  The bill has the support of building inspector officials and senior fire personnel.  A representative from the pyrotechnic industry made contact with the Department of Insurance in support of the proposed language.  The Council of Probate Court Judges also supports the bill.  Sen. Butler inquired if Georgia clubs used pyrotechnic displays – the response was yes.  Currently, there is no centralized reporting of permits issued and this bill proposes such.  No additional changes were made and the bill passed.

Senate Special Judiciary Committee

          SB 132 came before the Committee and was presented by its author Sen. Squires.  It proposes to make changes concerning fees the Secretary of State may charge for name reservations.  Currently, there is no fee for such; this bill would require $10 for each name reservation but there would be a reduction from the incorporation fees once the filing was done.  Thus, the bill is revenue neutral.  There was some discussion about reserving names over the internet but the process can still be done by mail and facsimile.  There are no longer name reservations done by telephone.  The bill passed.

          SB 148 was another bill on the agenda.  This dealt with some changes to the Juvenile Court Code reorganization which was done previously.  There was an omission of how to deal with dispositions and terminations and dropped in its entirety the deprivation section.  This bill inserts these back into the Code.  There was no other discussion except that Sen. Kemp asked that the State Bar be contacted about these changes.

          Finally, SB 211 passed, a bill brought by Sen. Adelman which is a corporate code clean-up.  It brings the corporations code more in line with the model code and follows Delaware's code.  These changes are technical in nature per the author.  This bill was written by the Corporate Section of the State Bar. 

          Sen. Kemp also assigned the following bills to a Subcommittee of Sens. Adelman, Jackson, Hooks, Squires, and Henson:

                   SB 123 concerning family violence issues;

                   SB 138 concerning access to hotel accommodations by persons who ride

                   motorcycles;

                   SB 147 concerning family violence shelters

                   SB 151 concerning "peeping toms"; and

                   SB 192 concerning the adoption process. 

House Judiciary Committee

          The House Judiciary Committee reported out on March 3, 2003 HB 322 which amends which judgments and rulings are deemed directly appealable. This bill adds five new types which are directly appealable in O.C.G.A. § 5-6-34(a): All orders denying nonparties engaged in news gathering the privilege pursuant to Code Section 24-9-30; all orders in criminal cases as provided in Code Sections 5-7-1 and 5-7-2; all declaratory judgments as provided in Code Section 9-4-2; all orders granting motions for summary judgment as provided in subsection (h) of Code Section 9-11-56; and  all other orders and judgments deemed subject to immediate review by applicable law.

Senate Judiciary Committee

          The Senate Judiciary Committee passed out a Substitute to SB 97 which deals with exempting certain instruments, deeds, or writings from the real estate transfer taxes.  The bill outlines further exemptions for the following by adding these beginning at paragraph (a)(11) to O.C.G.A. § 48-6-2:

"11) Any deed, instrument, or other writing transferring realty to a corporation, partnership, limited liability company, or trustee of a trust as a stockholder, partner, member, or trust beneficiary of the entity or so as to become a stockholder, partner, member, or trust beneficiary of the entity as long as no consideration is paid for the transfer other than stock in the corporation, interest in the partnership, interest in the limited liability company, beneficiary interest in the trust, or the increase in value in the stock or interest held by the grantor.  However, except for transfers subject to another exemption under this Code section, the transfer of realty from a corporation, partnership, limited liability company, or a trustee of a trust to a stockholder, partner, or trust beneficiary of the entity is subject to the tax imposed by Code Section 48-6-1, even if the realty is transferred to another corporation, partnership, limited liability company, or trust;
(12) Any deed, instrument, or other writing reflecting vesting of title to realty acquired in a statutory merger or consolidation from a constituent corporation by the surviving or new corporation;
(13) Any deed, instrument, or other writing reflecting vesting of title to realty acquired in a merger or consolidation from a constituent partnership or limited liability company by the surviving or new partnership or limited liability company; and
(14) Any deed, instrument, or other writing transferring realty as common area, common property, or common elements to a property owners' association as defined in Code Section 44-3-221, a condominium association as defined in Code Section 44-3-71, or to any other mandatory membership homeowners or property owners association; provided, however, that the exemption provided under this paragraph shall apply only if the transfer is without valuable consideration."

Other

          The House has engrossed HB 626 by Rep. Childers.  The bill amends O.C.G.A. § 48-5-478.3 concerning an exemption for a "veterans organization" which is "any organization or association chartered by the Congress of the United States which is exempt from federal income taxes but only if such organization is a post or organization of past or present members of the armed forces of the United States organized in the State of Georgia with at least 75 percent of the members of which are past or present members of the armed forces of the United States, and where no part of the net earnings of which inures to the benefit of any private shareholder or individual."  An exemption  applies to such a group's single motor vehicle owned by or leased to such veterans organization from all ad valorem taxes for state, county, municipal, and school purposes.

Sen. Cheeks bill, SB 23, which enacts the Woman's Right to Know Act and requires a 24-hour waiting period after a before a woman can receive an abortion, has now been assigned to the House Judiciary Committee.  The bill also requires that the woman give informed consent after receiving written information concerning the risks associated with such procedure.  House members have indicated that no erosion of the abortion law would be passed by the House.