April 9, 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

Legislators were busy again today under the Dome, getting a late start after a very long 33rd Day.  Needless to say, both the House and Senate had extremely light calendars.  Additionally, most of the new Legislation tends to deal with local issues.  However, here are a few highlights:  

Floor News  

The House took up only four Senate items.  These bills passed:  

·        SB 94, which mirrors HB 178 that passed earlier in the Session, cleared the House by a vote of 145 to 20.  The bill proposes to allow persons who own land suitable for building a single-family residence with 50 feet of marshland frontage to build a private use boat dock.  A license would be issued to the owner wishing to build such a dock, but it would prevent commercial use of the dock.  Currently, only persons who actually live along the marshlands may build such facilities.  

·        SR 49 also passed by a vote of 154 to 7.  This Resolution urges the United States Congress to enact a Medicare prescription drug benefit.  This would help Senior citizens gain better access to pharmaceuticals and at better rates.  The resolution urges coordination between the private and public sectors in order to create a comprehensive prescription plan.  

·        SB 14 passed by a vote of 139 to 24.  

·        SB 78 passed by vote of 145 to 20.  

On the Senate side, there were a number of items in addition to the 12 House bills.  There were a number of these which dealt with local legislation.  Of note, HB 157, dealing with Coastal management, passed the Senate by a vote of 47 to 2.  

New Legislation  

HB 977 – Rep. Borders proposed this amendment to Article 1 of Chapter 5 of Title 49.  This would require all employees of group day-care homes and day-care centers to receive training in first aid and cardiopulmonary resuscitation.  See O.C.G.A. § 49-5-12(b)(7).  

HR 703 – Reps. Floyd, Williams, and Shaw have proposed this Resolution creating the House Study Committee on Lending and Financial Services.  It would be comprised of members of the Banks and Banking Committee of the House of Representatives.  (It does not state the number.)  It would undertake the review of the proliferation of a variety of lending and financial services which Georgia has seen in the last few years – especially those provided not by banks, credit unions, or savings and loan institutions.  It would look at abuses and consumer complaints.  It would also look at small loan businesses or those entities which engage in leasebacks, payday loans, title pawns, or other types of loans.  

HR 716 – Rep. Buck and others proposed this Resolution recognizing May 28, 2003 as Georgia Healthcare Volunteer day as it has been designated National Healthcare Volunteer Day.  This is to acknowledge those persons who give time, energy, and talent to hospitals, nursing homes, hospices, and related healthcare facilities throughout the State.  

Committee News  

Senate Appropriations Committee  

          The Committee met this morning and took up HB 122, FY 2004 Budget.  Here are a few highlights:  

Total Budget:  

Governor’s recommendation:          $16,281,551,592

House version:                            $16,018,043,592

Senate Committee version:             $16,079,443,592  

Basically, the major difference lies in the revenues.  The Governor had anticipated that there would be new revenues from the cigarette and alcohol taxes in the amount of $398,331,000.  The House inserted $6,823,000 in new revenues from insurance fees and fines, park fees, and workers’ compensation taxes.  The House also anticipated a tobacco tax to generate $128,000,000.  The Senate proposed only $11,223,000 in new revenues, but it cut large amounts through various financing adjustments.  

A few highlights from the Department of Community Health Budget:  

·        To increase state funding for Medicaid Benefits to fund the projected cash need for FY 2004 claims (total funds with federal monies would be $645,508,906).  The Governor and House had proposed $276,239,700.  The Senate Committee proposed $243,528,940 with total funds of $602,496,141, cutting $30 million in State funds.

·        Family planning providers were to receive a 10% reduction.  This would have been a cut of $112,908 (which the Governor proposed).  The House disagreed and restored these dollars in its version; the Senate concurred with the Governor.

·        Implement policy and rate changes to effect a 10% expenditure reduction for dental services for adults and children (total funds with federal dollars would be $11,798,872).  The Governor proposed a reduction in State funds in the amount of $4,769,104; the House only provided for a 7.5% cut in the amount of $3,576,828.  The Senate Committee agreed with the Governor and stated that a $4,769,104 cut was needed.

·        To reduce funding for the Mercer School of Medicine operating grant by 3% after adjusting the appropriation level to reflect the 2003 funding formula in the Georgia Board for Physician Workforce.  The Governor and Senate Committee stated that a cut of $1,558,607 was needed.  The House proposed cutting this program only by $592,203.

·        To eliminate student preceptorship in the Georgia Board for Physicians Workforce.  The Governor proposed a cut of $100,000 which the House agreed to.  The Senate Committee restored these funds.

·        To implement pharmacy quality and cost control initiatives including the implementation of a disease state management program for non-nursing home resident Medicaid recipients for total savings with federal funds of $9,543,600.  The House proposed a cut of State funds in the amount of $3,857,523; the Senate Committee agreed with this.  This item was not in the Governor’s proposal.

·        Here are items to be cut per the Senate Committee’s version (none of these were in the Governor or House versions of the Budget):

1) to develop premiums for the Kate Beckett waiver program – cut of $2,700,000

2) to consolidate the Men’s Women’s and Minority Health Programs – cut of $328,000

3) to adjust contracts or per diem and fees – a cut of $299,120

4) to reflect FY 2003 pharmacy co-pay action – a cut of $1,700,000

5) to adjust transportation contracts – a cut of $1,000,000

6) to remove State funds from inpatient hospital payments - $32 million, to be replaced with tobacco money.  

Overall, the Department of Community Health’s Base Budget for FY 2004 was:  

Governor’s proposal:           $1,690,624,643

House version:                   $1,689,038,708

Senate Committee version:    $1,648,129,240  

With enhancements, these numbers are:  

Governor’s proposal:           $1,730,881,636

House version:                   $1,729,525,885

Senate Committee version:    $1,688,386,233  

The enhancements were basically the same for all versions except as follows:  

·        To add 10 slots to the independent care waiver program to provide community-based services to the physically disabled (total dollars with federal monies $545,198) – Unlocking the Waiting List.  The Governor had proposed $220,369; the House had proposed $100,000.  The Senate Committee returned to the Governor’s position.

·        To continue the contract for the Folic Acid-Education Initiative (Emory). The House had proposed this in the amount of $100,000.  This was not on the Governor’s recommendations; the Senate Committee took the monies out.

·        To reflect the reduction in pass through funds to the Morehouse School of Medicine.  The House proposed an addition of $250,553; the Senate Committee took the monies out (they too were not included in the Governor’s proposal).  

For Tobacco Funds:  

·        To utilize Tobacco Funds to reduce the cut to reimbursement rates for inpatient hospital care (total monies would be $74,220,683).  The House proposed using the $30,000,000 in the Department of Education’s Budget for School Nurses for this initiative.  The Senate Committee returned to the position of the Governor which had the monies in the Department of Education’s budget.  A proposal was made instead to use $32,710,760 from the settlement to replace State dollars.  These monies were being taken by the Senate Committee from the Department of Community Affairs portion of the Budget from its monies for One Georgia Authority and the Tobacco Payment Reserves.  Neither the House nor Governor had proposed such.  

Senate Insurance and Labor Committee  

          A number of bills were before this Committee:  

HB 215 – Rep. Rich Golick introduced this bill dealing with insurance companies’ use of credit scoring information in order to determine underwriting issues.  The bill is modeled after an NCOIL model.  It defines when personal credit information may be used.  It does not prohibit the use of such information but provides protections to consumers when companies do use the information.  If an insurer uses the information, it cannot be the sole basis for underwriting a policy.  The bill passed out of the Committee without additional changes.  

HB 721 – Rep. Jenkins introduced this Bill which prohibits the use of a person’s social security number being used as an insurance card identification number.  The Committee raised no concerns about this Bill and passed it out without additional changes.  

HB 619 – This bill caused the most discussion.  It will be carried for Rep. Ben Harbin by Sen. Lamutt.  A representative from an agency which writes policies for Golden Rule Insurance Company explained that Golden Rule had requested Rep. Harbin introduce the bill.  It follows NAIC definitions and provisions which are used by virtually every state.   Insurance Commissioner John Oxendine initially opposed the legislation noting that the small group insurance market is already teetering and this may have unintended consequences if passed.  He explained that Golden Rule was already doing this but the legislation basically carves out their practices from the law allowing entities to ‘cherry pick’ coverages.  He asked that the bill be studied further in an effort not to cause more uninsured Georgians.  Industry should play by the same rules; the small group market, the Commissioner explained, is a complicated one.  There is concern that if passed a large employer could have a large group plan with one set of covered options and use this franchise plan to cover the sickest – this can already be done to some degree by an employer using the individual plans.  Some argued the definition of an ‘association.’  Kirk McGhee noted that he understood the bill was strongly suggested by both the House Insurance Committee Chairman and the Senate Insurance and Labor Committee Chairman but the Commissioner of Insurance was opposed – thus, he felt caught but sided with the Commissioner on the issue.  John Thomas, lobbyist for Golden Rule, explained that the company had been basically writing these types of policies but wished to place this in the law so that there were no prohibitions with the rules and regulations.  There are no federal requirements, per Mr. Thomas, on such plans.  Golden Rule markets these types of products in 26 states.  The bill was tabled to be discussed later.  

House Special Judiciary Committee  

          Rep. Curtis Jenkins’ Committee met to discuss a number of items:  

The Governor’s bill, SB 205, dealing with “meth” labs and illegal drug trafficking was presented by Rep. Larry O’Neal, his Floor Leader.  The bill passed.  

Another bill, SB 22, dealing with criminal background checks for those persons who are providing care to our State’s elderly and children also cleared this Committee.  The GBI raised some concerns about how such ‘checks’ were to be done and how such would be funded in a time of tight funding.  Sen. Butler explained that she had some grant options in mind for the funding.  Some of the Committee members felt that there should be an expansion to also cover those care providers who work with the State’s mentally retarded or those with physical disabilities.  Rep. Mobley asked if Sen. Butler would entertain such an expansion but Sen. Butler declined.  A substitute bill was before the Committee which would become effective July 1, 2004 in order to address some of the financial issues.  Rep. Heckstall raised the concern about whether arrest charges would be disclosed or just convictions.  Sentencing under first offenders would be subject to being reported.  The potential employer has to get the applicant’s authorization, however, to conduct such a criminal background check.  The bill passed as amended.  

SB 101 was presented by Sen. Adelman.  This places a condition for parole when a sex crime against a child has been committed.  The bill would require that those folks could not reside within 1,500 feet of a place where children congregate.  This is an enhancement of Georgia ’s “Megan’s Law.”  Eleven or twelve other states have such a protective buffer zone.  Sex offenders have a tendency to repeat their crimes. Therefore, offenders need to be prevented from residing where children congregate (such as schools, playgrounds, etc.).  Rep. Mobley asked if Sen. Adelman was trying to have a retroactive effect with this legislation (in other words, if an offender resides in an apartment complex, does he or she need to move if they are living near a school?)  Sen. Adelman stated that was his intent and conceded that he had concerns about the Constitutional challenges with such a provision.  The bill also passed.  

SB 51 was presented by Sen. Shafer concerning computer pornography as it relates to luring a child into a relationship.  This is currently a misdemeanor; the bill makes such offense a felony.  The bill also passed.  

SB 147 was also presented by Sen. Adelman.  This adds civil penalties into the State’s law regarding when a family violence shelter location is disclosed.  More than 20 such incidents have occurred in the State.  The bill also passed.  

SB 20 by Sen. Jackson also cleared the Committee.  This makes any deliberate and intentional act of an individual who has HIV or hepatitis who assaults a peace officer or correctional officer by using his or her saliva, semen, etc. to infect the other.  A similar bill has been introduced by Rep. Morris in the House, HB 711.  Rep. Morris, who was also present, asked that the Committee pass this Legislation as the bill was introduced at the Lt. Governor’s request.  

House Committee on Banks and Banking  

          The Committee reported out SB 105 which amends O.C.G.A. § 13-6-5 by Committee Substitute.  The bill amends notice of mailing provisions concerning damages for writing bad checks.  These notices must be sent by certified mail, statutory overnight delivery, or first-class mail supported by an affidavit of service at the address printed on the check given by the maker at the time of issuance or in the case of a draft or order, to the last known address, the notice to be deemed conclusive ten days following the date the affidavit is executed.  The bill raises the service charge from $25.00 to $30.00 or 5% of the face amount of the instrument, whichever is greater.  

Other  

          SR 220, which passed on Day 33 through the Senate, has now been assigned to the House Higher Education Committee.  SR 220 proposes to create the Improvement of the HOPE Scholarship Joint Study Commission.  The Senate placed two Floor amendments on the Resolution – one clarified the support to be provided to this Commission by the University of Georgia Carl Vinson Institute of Government and the other was to change the number of meeting dates of the Commission from 10 to 5.   This will be a 20 person Commission – four from each of the House and Senate; six proposed by the Governor; and then representatives from the Georgia Lottery Corporation, Georgia Student Finance Commission; Chancellor of the Board of Regents; President of the Private and Independent College Association; executive director of the Department of Technical and Adult Education; and director of the Office of School Readiness.  

          SB 282, which passed out of the Senate, was assigned to the House Insurance Committee.  This bill by Sen. Cheeks amends O.C.G.A. § 45-18-20 and proposes to allow any employee who is otherwise eligible to participate in the State’s health plan but who declined because he or she was covered by a federal health plan by virtue of his or her prior military service may begin or resume participation in the State’s plan, but only in the event that the federal plan is abolished or amended in such a manner as to render the member ineligible for coverage.  Proof of such eligibility would be required.  

          SB 211, Sen. Adelman’s bill amending the Corporations Code, so as to address notice provisions for corporations with two or more shareholders at the same address, has now been assigned to the House Judiciary Committee.  

          SB 342, Sen. Unterman’s legislation, amending O.C.G.A. § 50-5-69 which amends the State’s law concerning the establishment of a central bid registry, and specifically states that the rules and guidelines to be determined by DOAS shall require local governments to advertise all procurement and bid opportunities valued at $10,000 or more of each municipality, county, and local board of education, has now been assigned to the House Judiciary Committee.