March 26, 2003

For more information contact:

Stanley S. Jones, Jr.

404-817-6133

Jeffrey C. Baxter

404-817-6247

Kirkland A. McGhee

404-817-6257

Helen L. Sloat

404-817-6170

          Today marked the 29th Legislative Day.  Tempers are getting hotter as it appears that a completed Budget is not much closer to reality, as most had hoped.  Additionally, it would appear that there is basically a standoff in trying to determine if a "revenue enhancement" is to be proposed.  Neither side currently seems willing to initiate a proposal for a tax increase.  Highlights of the day's events:  

Floor News  

In the House, the day was prolonged by the debate over the proposed increased tax for tobacco.  HB 379, which proposes to increase cigarette taxes from $.12 per pack to $.58 per pack, was voted down on the Floor by a vote of 47 to 127.  Rep. Richardson, the Governor's Floor Leader, explained the bill to House members and asked for a motion for reconsideration by the body after its vote.  

Many persons went to the Well in the House – some for but most against the tax increase.  Rep. Massey stated that he supported HB 379 and had never before supported a tax in the seven years he had been in the General Assembly.  Meanwhile, Rep. Doug Dean stated that perhaps adding a charge of $3.00 per pack would be of greater help.  He suggested sending the bill back to the Rules Committee as there were not enough funds associated with passing it to cure the State's economic problems.  A number of Representatives from border counties expressed reservations and concerns about lost revenue should such taxes be imposed – people would drive across the State's boundaries to other stores for cheaper tobacco products.  There were also Representatives who argued that raising this tax was not going to address the entire FY 2004 shortfall.  Rep. Lucas cited it was interesting what a difference the new leadership made in the administration of the State basically in two to three months – he stated that the Republicans were essentially blaming the Democrats for the tight economic times when there had been a surplus in years past.  He also suggested that taxing "grain" would be part of the answer.  Rep. Tommy Smith arrived at the Well with a number of props – including a tobacco plant and a bag of sugar - in his efforts to oppose the bill.  

There were a number of onlookers in the Gallery watching the vote – including folks from the American Cancer Society and various hospitals which had supported this tax increase. 

          Another bill taken up on the Floor was HB 422, which proposes a tax break for companies creating a minimum of 1,800 jobs and investing at least $450 million in relocating or bringing new industry to this state.   These companies would be given a tax credit in the amount of $5,200 per employee. The legislation apparently has its roots in bringing Daimler-Chrysler to Georgia .  The bill passed by a vote of 172 to zero.  

HB 526 cleared the House by a vote of 166 to 3.   It provides for  the collection of a nursing home provider fee of 6% per day from owners of such facilities. The fee would be placed in a special account in the Indigent Care Trust Fund.  This way additional federal dollars can be  drawn down to match these monies.  As the federal match is greater than the State's required match, the federal money could be used to reimburse nursing homes their fees.  The monies remaining could be used to offset budget funding shortfalls for the State's nursing home industry. It is anticipated that more than $90 million can be raised from the fees.   

The Senate had a very lengthy calendar today.  Some of the bills it passed include the following:  

·        SB 147 – This is Sen. Adelman's bill relating to family violence shelters' confidentiality.  The bill adds penalties for disclosing, publishing, or disseminating the location of a family violence shelter.  It passed by a vote of 48 to zero. 

·        SB 108 and SB 168 – These are two ethics bills proposed by the Governor.  SB 108 passed by a vote of 53 to zero.   It addresses a code of ethics for government service folks and makes changes to current law dealing with lobbying, nepotism, gifts, and campaign contributors. SB 168 also passed by a vote of 53 to zero. It addresses campaign contribution disclosures and accounting procedures.

·        SB 104 – This is Sen. Tanksley's bill and it passed by a vote of 47 to 1.  It raises fees associated with deposit account fraud so that no service charge or bad instrument charge shall exceed $30.00 or 5 percent of the face amount of the instrument, whichever is greater, except that the holder of the instrument may also charge the maker an additional fee in an amount equal to that charged to the holder by the bank or financial institution as a result of the instrument not being honored.  Current law is $25.00.

·        SB 105 – This bill raises the service charges for writing bad checks.  Current law is $25.00; this proposes to raise this to $30.00 or 5% of the face amount of the instrument.  Additionally, the bill addresses the mailing requirements associated with notice when such instrument has been made. It passed by a vote of 43 to 1.

·        SB 132 – This passed by a vote of 48 to zero. Sen. Squires brought this bill dealing with corporations and reservation of names.  This requires a fee be paid to reserve a name of a corporation through the Secretary of State.  The bill also amends the charge for filing articles of incorporation – currently the fee is $60.00; this changes it to $50.00.  (There is currently no fee for a name reservation.)

·        SB 174 – This relates to prerequisites for transfer of structured settlement payment rights in tort actions involving damages.  It specifically amends O.C.G.A. § 51-12-71 and passed by a vote of 51 to zero.  

New Legislation  

HB 773 – Rep. Franklin and others have proposed this change to the State's Flag in O.C.G.A. § 50-3-1:  "The flag of the State of Georgia shall be three horizontal bands. The bottom horizontal band shall be red and shall occupy one-third of the entire flag. The center horizontal band shall be white and shall occupy two-thirds of the length of the flag and shall bear the words 'IN GOD WE TRUST' which words shall be the same blue color as the square field of blue. The top horizontal band shall be red and shall occupy two-thirds of the length of the flag. The remainder of the space shall be a square, one-third of the length of the flag, nearest to the flagstaff, consisting of a field of blue, centered upon which shall be placed a representation of the coat of arms of the state, and which seal shall be encircled by 13 white five-pointed stars. Every force of the organized militia shall carry this flag when on parade or review."  The bill has been referred to the House Rules Committee.

HB 775 – Reps. Powell, Porter, Jamieson, Lane, Royal and others have authored the "Frivolous Litigation Prevention Act"  to be inserted in Title 9.  It specifically changes provisions relating to the signing of pleadings and other documents and contains provisions relating to the failure to make discovery, sanctions, and expenses.  This is similar to SB 225, which has some additional provisions (these include additional rules for sanctions which can be done by motion or by court initiative; limitations are outlined on sanctions; and contents of the court's order on sanctions). This bill adds requirements relating to interrogatories to parties as found in O.C.G.A. § 9-11-33 whereas SB 225 does not.  The amendments in HB 775 concerning changes to Code Section 9-15-14 are more numerous than what was done in SB 225 – for instance in HB 775 it establishes that a separate motion must be made for sanctions under this Code Section (which relates to litigation costs and attorneys' fees for frivolous actions and defenses).  This has been assigned to the House Judiciary Committee.  

HB 776 – Rep. Powell and others have proposed creating the Georgia Hospital Insurance Authority in Title 31 in an effort to address the increasing difficulty that hospitals are experiencing obtaining liability insurance.   This authority would be composed of 13 members with three appointed by the Governor; three by the President of the Senate; three by the Speaker of the House; and the following to serve as ex officio:  the state auditor; the Commissioner of the Department of Community Health; the Commissioner of Insurance; and the Director of the Risk Management Division of the Department of Administrative Services.

A quorum will be nine members. The bill enumerates the powers of this Authority, which includes making contracts and investing and reinvesting funds, issuing bonds, borrowing money, as well as providing, obtaining or purchasing insurance or reinsurance agreements or both and to settle and pay claims under such insurance agreements. The Authority could also fix, alter, charge, and collect premiums of those participating medical facilities for insurance provided by or procured by the Authority. This Authority would be able to establish eligibility standards and underwriting criteria for participating medical facilities as it deems appropriate including 1) requirements that participating medical facilities assume a part or parts of any insured risk; and 2) contractual requirements for payment of premiums or assessments or both.   There are controls placed on the Authority such as what to do with purchases in excess of $20,000 (place such out for bid); conduct an audit by a certified public accounting firm at the conclusion of the fiscal year; etc.  Bonding powers of this Authority are outlined as well as any monies earned on sales of such bonds.  This has been referred to the House Health and Human Services Committee.  

HB 791 – Reps. Porter and Shaw have co-authored this change to O.C.G.A. § 31-6-2 (14).  It changes the definition for a new institutional health service which would be the following:  

"(A) The construction, development, or other establishment of a new health care facility;
(B) Any expenditure by or on behalf of a health care facility in excess of $900,000.00 which, under generally accepted accounting principles consistently applied, is a capital expenditure, except expenditures for acquisition of an existing health care facility not owned or operated by or on behalf of a political subdivision of this state, or any combination of such political subdivisions, or by or on behalf of a hospital authority, as defined in Article 4 of Chapter 7 of this title or certificate of need owned by such facility in connection with its acquisition;
(C) Any increase in the bed capacity of a health care facility except as provided in Code Section 31-6-47;
(D) Clinical health services which are offered in or through a health care facility, which were not offered on a regular basis in or through such health care facility within the 12 month period prior to the time such services would be offered;
(E) Any conversion or upgrading of a facility such that it is converted from a type of facility not covered by this chapter to any of the types of health care facilities which are covered by this chapter;
(F) The purchase or lease by or on behalf of a health care facility of diagnostic or therapeutic equipment with a value in excess of $500,000.00. The acquisition of one or more items of functionally related diagnostic or therapeutic equipment shall be considered as one project;
(G) Clinical health services which are offered in or through a diagnostic, treatment, or rehabilitation center which were not offered on a regular basis in or through that center within the 12 month period prior to the time such services would be offered, but only if the clinical health services are any of the following:
(i) Radiation therapy;
(ii) Biliary lithotripsy;
(iii) Surgery in an operating room environment, including but not limited to ambulatory surgery; provided, however, this provision shall not apply to surgery performed in the offices of an individual private physician or single group practice of private physicians if such surgery is performed in a facility that is owned, operated, and utilized by such physicians who also are of a single specialty and the capital expenditure associated with the construction, development, or other establishment of the clinical health service does not exceed the amount of $1 million; and
(iv) Cardiac catheterization; or
(H) The purchase, lease, or other use by or on behalf of a diagnostic, treatment, or rehabilitation center of diagnostic or therapeutic equipment with a value in excess of $500,000.00. The acquisition of one or more items of functionally related diagnostic or therapeutic equipment shall be considered as one project."  

A new caveat is provided: "the dollar amounts to be counted in the case of a proposed ambulatory surgery facility owned, operated, and utilized by a single group practice of private physicians who are also of a single specialty shall include only those costs specifically related to the construction, development, or establishment of the ambulatory surgery facility and shall not include the cost of items related to projects associated with or simultaneously developed or proposed with the ambulatory surgery facility."  This bill is to help an ophthalmologist practice in Dublin .  The bill was sent to the House Health and Human Services Committee for review.

HB 792 – This is the House version of SB 217 as it was originally introduced.  The bill, by Reps. Porter and Buck, amends Article 4 of Chapter 11 of Title 9 concerning the provisions relating to class actions.  It basically adopts the federal rules relating to class actions and adds some language for appeals of interlocutory orders concerning class certification as the State of Alabama has done.  The bill has been referred to the House Judiciary Committee.  

HB 797 – Rep. Stephens has authored this change to Title 31 which adds a new Chapter 40A in order to license micropigmentation practitioners.  "Micropigmentation" is the "procedure in which minute, metabolically inert pigment granules are placed mechanically or manually below the epidermis for the purpose of cosmetic or corrective enhancement."  This measure was referred to the House Health and Human Services Committee.  

HB 799 – Reps. Snow and Day have co-authored this proposed amendment to O.C.G.A. § 19-13-4 so as to revise a provision relating to the prohibition of certain mutual protective orders when such relate to protective orders and consent agreements pertaining to family violence.  This was forwarded to the House Judiciary Committee.  

HB 806 – Rep. Barnes and others have proposed the "Georgia Consumer Choice of Benefits Health Insurance Plan Act" that will allow an employer to offer a health insurance product which does not include the insurance mandates.  This would apply to those companies offering group accident and sickness policies or contracts or individual accident and sickness policies or contracts on or after July 1, 2003.  This adds a new Chapter 59 in Title 33 and mirrors the originally introduced version of SB 50.  This has been sent to the House Insurance Committee.  

HB 807 – Rep. McCall and others have proposed amending O.C.G.A. § 50-18-72 so as to provide an exemption from disclosure of those records relating to public water supply systems or public sewage systems.  There is a judicial review "in camera" for certain non-disclosed documents in the event litigation occurs.  This was forwarded to the House Natural Resources and Environment Committee.  

HB 808 – School psychologists may get an increase in State salary if this bill by Rep. Jamieson passes.  This proposes that those who earn national certification would be eligible as long as the psychologists passed the certification prior to the commencement of the 2003-2004 school year. This would add a new Code Section at 20-2-212.4.  The House Education Committee will review this bill.  

HB 810 – Rep. Jenkins has authored this change to O.C.G.A. § 15-6-77 and 15-6-97 and 15-6-98 relating to fees collected by Superior Court Clerks; the Statewide uniform automated information system for property records; and the collection and remittance of fees to the Georgia Superior Court Clerks' Cooperative Authority.  It changes the sunset provisions in each of these sections from January 1, 2006 to January 1, 2010.  This was sent to the House Special Judiciary Committee for its consideration.  

HB 811 – Rep. Jenkins has offered additional changes relating to court fees, the Statewide automated information system, and the Superior Court Clerk's Authority which also repeals the sunset dates for the collection of the sums for filings real estate records, etc.  This was sent to the House Special Judiciary Committee.  

HB 812 – Rep. Jenkins and others have proposed amending Article 7 of Chapter 5 of Title 16 in order to create a new offense relative to violating family violence orders and to clarify penalties so that if a person violates a family violence protective order he or she may be punished for contempt or criminally punished as provided in Article 7 of Chapter 5 of Title 16 (see O.C.G.A. § 19-13-6).  This bill was forwarded to the House Special Judiciary Committee.  

HB 819 – This bill has received some press for Rep. John Noel as it proposes to create a misdemeanor of a high and aggravated nature for those food service establishments which serve iced tea but do not serve sweet iced tea.  It proposes to create such language in O.C.G.A. § 26-2-379.  This was sent to the House Economic Development and Tourism Committee.  

HB 823 – Rep. Walker and others have proposed amending O.C.G.A. § 50-3-1 in order to create a new State flag.  This proposal would have a vertical band of blue on the left side of the flag which would bear the State's seal, approved in 1914, surrounded by 13 spaced white stars.  The remainder of the flag would be a scarlet field horizontally bisected by a white band in equal portions to the scarlet.  The bill contains necessary referendum language with the following question:   

Should the current state flag adopted by the General Assembly at its 2003 session be retained as the State flag of the State of Georgia?  

This would be proposed at the 2004 presidential preference primary.  This was forwarded to the House Rules Committee.  

HB 824 – Rep. Bordeaux has proposed amending O.C.G.A. § 15-16-21 in order to change the fees charged by county sheriffs for serving civil process from $25.00 to $35.00.  This bill was referred to the House Judiciary Committee.  

HB 827 – Rep. Stanley-Turner and others have proposed additional changes to O.C.G.A. § 50-14-3 concerning open meetings to the public and to O.C.G.A. § 50-18-72 relating to exceptions from disclosure of public records.  Meetings when discussing any records exempt from public inspection or disclosure per O.C.G.A. § 50-18-72(a)(15) or when discussing information which would be exempt related to this Code Section would be exempt (this relates to any disclosure which would compromise security against sabotage or criminal or terrorist acts or which would threaten the protection of life, safety or public property such as security plans for public utilities, existence of security devices, blueprints of public structures, etc.).  This was sent to the House Judiciary Committee.  

HR 528 – Reps. Ashe and Benfield have co-authored this Resolution proposing the creation of the Study Committee on School Restroom Standards.  The House Rules Committee was sent this Resolution.  

SB 314 – Sen. Squires and colleagues have proposed changing O.C.G.A. § 33-20A-31 relating to definitions relative to a patient's right to independent review with regard to managed care plans.  It amends the terms: medical necessity; medically necessary care; and medically necessary and appropriate. It adds that such includes preventative care.  These terms mean, for the purpose of preventing, diagnosing, or treating an illness, injury, or disease that is: A) in accordance with the standards of acceptable medical practice in the United States; B) clinically inappropriate in terms of type, frequency, extent, site, and duration; C) appropriate and consistent with the diagnosis and the omission of which could adversely affect or fail to improve the eligible enrollee's condition; D) provided in a safe and appropriate setting given the nature of the diagnosis and the severity of the symptoms; E) not provided solely for the convenience of the eligible enrollee or the convenience of the healthcare provider or hospital; and F) not primarily custodial care, unless custodial care is a covered service or benefit under the eligible enrollee's evidence of coverage."  The Senate Health and Human Services Committee will review this bill.  

SB 315 – Sen. Price and others have introduced this change to Article 7 of Chapter 4 of Title 49 relating to the State's Medicaid program.  It proposes to provide for one or more pilot programs to test and evaluate the implementation of a coordinated system of managed health care for recipients of Medicaid and PeachCare for Kids.  This pilot would include a minimum of 30,000 participants, excepting persons with mental retardation or developmental disabilities whose healthcare needs extend beyond the scope of the pilot program. Further no more than 5,000 participants can be eligible to receive benefits for long-term care.   The Department of Community Health could contract without any prior public competitive bidding with no more than two administrators to assist in the implementation and operation of the pilot program.   An administrator selected to implement and operate a pilot program will be paid for each enrollee in the program an "actuarially sound amount per month based on covered health care services and services that are the responsibility of such administrator."  This amount would be negotiated by the Department and would be less than the Department would have expended in a traditional fee-for-service program for the same participants.  There is an option for risk-sharing to limit the exposure of the administrator through reinsurance or a stop-loss mechanism and a provision permitting the Department to share in any profit earned by the administrator in excess of the amount agreed to in the contract.  This pilot would begin no later than December 1, 2003 . The exception to the competitive bidding requirements would only apply to the contract entered into for the implementation and operation of the pilot program. The Department of Community health would be required to report to the General Assembly on the pilot programs no later than December 31, 2003 .  The bill would be repealed on July 1, 2006 .  The Department will also be required to seek any necessary waivers from the federal government on or before May 1, 2003 .  This was forwarded to the Senate Health and Human Services Committee for consideration.  

SB 316 – Sens. Hall and Cheeks have proposed changes to Chapter 7 of Title 44 relating to dispossessory proceedings.  This provides that if a writ of possession is issued against a tenant and the tenant does not appeal or remove the tenant's personal effects within seven days then the property is deemed to be abandoned and becomes the landlord's property.  The Senate Judiciary Committee will consider this bill.  

SB 319 – Sen. Lee has proposed changing O.C.G.A. § 50-13-41 concerning hearing procedures and powers of administrative law judges.  This states that an administrative law judge shall not be authorized to require the submission of testimony in a written form by any party in a contested case prior to a hearing.  The bill was referred to the Senate Judiciary Committee.  

SB 329 – Sen. Seabaugh and others have initiated this legislation amending Title 33 creating a new Chapter 30 B, the "Spending Account and Consumer Driven Health Plan Advancement Act."  This proposes to authorize the issuance of spending account plans and customer driven health plans for individuals and groups.  The term "consumer driven health plan" means a "plan for the provision or reimbursement of health care services that makes available to enrolled individuals information on health, healthcare, the pricing of health care, and the pricing of health care services by particular providers.  Such plan may, but is not required to, include a spending account feature and may either rely upon indemnity reimbursements for services or contracted amounts for health care services from providers."  The spending account would be "medical spending accounts, health reimbursement arrangements, pre-tax benefit spending accounts, and other forms of funding for health care goods and services." Such plan may incorporate a spending account feature with a limit not exceeding $10,000 on an annual basis.  The bill was forwarded to the Senate Insurance and Labor Committee.  

SB 330 – Sens. Price and Johnson have proposed this change to O.C.G.A. § 28-5-5 relating to the Budgetary Responsibility Oversight Committee.  It states that members of this Committee would serve at the "pleasure of" of the Speaker of the House and Committee on Assignments.  There would be six members from both the House and Senate.  The Senate Rules Committee will review this bill.  

Committee Activity  

House Health and Human Services Committee  

          Rep. David Graves presented HB 261, the annual drug update.  It lists additional "scheduled" drugs to be added to the Code.  Rep. Childers asked that, in the future, issues be separated out so that not so many issues are addressed in one piece of legislation.   The bill passed by Committee Substitute without any opposition.  

          HB 594 was presented by Rep. Teper.  This bill proposes to allow persons employed by the Community Service Boards ("CSBs") to participate in the State's healthcare benefits as established in Title 45.  Employees who were employed by entities under the CSBs prior to 1994 were covered by the State's health plan.  Since that time, these persons did not have access to benefits.  There was a great amount of discussion to add more persons to the State's plan or to add older persons or retirees to the plan.  It appeared that the Department of Community Health was not opposed to the bill. Several attempts were made to amend the Committee Substitute with only one being added.  The bill specifically allows the Board of Community Health to contract with the CSBs for the inclusion in such plan of any person who retires as an employee of a CSB with at least ten years of actual service and after attaining the age of 60 years, or after 30 years of actual service to a community service board regardless of age.  The bill also establishes requirements as to who is responsible for paying the premiums:  "It shall be the duty of each community service board to collect such payment from its qualified retired employees or dependents as may be required under the board's regulations. In addition, it shall be the duty of each community service board to make the employer contributions required for the operation of such plan or plans; provided, however, that each community service board shall be liable for the entire amount due without regard to whether it has received the employee's share."

          SB 85, which amends O.C.G.A. § 43-10-14 concerning the practice of optometry, passed.   SB 85 changes the punishment from a misdemeanor to a felony for any person found guilty of practicing optometry without a license.  SR 49, which urges the United States Congress to enact a Medicare prescription drug benefit, also passed as did HB 617, which amends the law relating to licensing of clinical perfusionists and changes the numbers of years that a provisional license is permitted from one to two years.