April 22, 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

SINE DIE!

          Legislators worked long and hard today, the last day of the 2003 Session, finally finishing close to midnight .  Below will summarize some of the day's dramatic events – there were some winners and losers as the day progressed.  In the end, a tax measure, a flag compromise, and a budget were passed.  Initially, the close votes on the tax increase and flag caused a compromise between the House and Senate.  A weak version of corporate tort reform was also passed.  These measures now rest in the hands of Governor Perdue, who has 40 days from the date of adjournment to either sign or veto the various bills.  As of the writing of this Report, it is still unclear if a Special Session late in the summer will be called to address reapportionment or budgeting issues.  

Floor News  

          The House had new bills on its Calendar while the Senate took care of "agrees and disagrees" with changes made to legislation.  Here are a few of the new bills the House passed:  

HR 358 – This is the Resolution by Rep. Kathy Ashe urging the Department of Human Resources, Division of Family and Children Services to adopt specific Farm Bill 2002 state options to provide access to the federal food stamp program for low-income Georgians.  The House adopted this Resolution.  

SB 97 – The House passed this by a vote of 165 to zero and the Senate later agreed to the House changes to the legislation.  The bill establishes another exemption in O.C.G.A. § 48-6-2(a) concerning intangible taxes so that such tax would not apply to the following:

(A) Any deed, instrument, or other writing through which real property is transferred from one or more individual owners to a corporation, partnership, or other entity if the individual owner or owners of the real property also have a majority ownership interest in the corporation, partnership, or other entity to which the property is transferred; or
(B) Any deed, instrument, or other writing through which real property is transferred from a corporation, partnership, or other entity to one or more individuals if the individual or individuals to whom the property is transferred also have a majority ownership interest in the corporation, partnership, or other entity by which the property is transferred.   

There are already exemptions in place for these transactions:  

(1) Any instrument or writing given to secure a debt;
(2) Any deed of gift;
(3) Any deed, instrument, or other writing to which any of the following is a party: the United States; this state; any agency, board, commission, department, or political subdivision of either the United States or this state; any public authority; or any nonprofit public corporation;
(4) Any lease of lands, tenements, standing timber, or other realty or any lease of any estate, interest, or usufruct in any lands, tenements, standing timber, or other realty;
(5) Any transfer of real estate between a husband and wife in connection with a divorce case;
(6) Any order for year's support awarding an interest in real property as provided in Code Section 53-5-11 of the 'Pre-1998 Probate Code,' if applicable, or Code Section 53-3-11 of the 'Revised Probate Code of 1998 ';
(7) Any deed issued in lieu of foreclosure if the deed issued in lieu of foreclosure is for a purchase money deed to secure debt that has been in existence and properly executed and recorded for a period of 12 months prior to the recording of the deed in lieu of foreclosure;
(7.1) The deed from the debtor to the first transferee at a foreclosure sale;
(8) Transfer of property which is acquired as provided in Code Sections 32-3-2 and 32-3-3;
(9) Any deed of assent or distribution by an executor, administrator, guardian, trustee, or custodian; any deed or other instrument carrying out the exercise of a power of appointment; and any other instrument transferring real estate to or from a fiduciary; provided, however, that the exemption provided under this paragraph shall apply only if the transfer is without valuable consideration; and
(10) Any deed, instrument, or other writing which effects a division of real property among joint tenants or tenants in common if the transaction does not involve any consideration other than the division of the property.
 

SB 123 – The House passed this bill without any changes by a vote of 153 to zero.  It specifically amends O.C.G.A. § 19-13-52(c) concerning the purpose of the Georgia Protective Order Registry (regarding family violence and stalking protective orders), accessing the information and linking to the National Crime Information Center Network.  It states that the "registry shall include a complete and systematic record and index of all valid protective orders and modifications thereof.  Law enforcement officers and the courts shall have access to the registry."  Courts currently use a uniform form as prescribed in O.C.G.A. § 19-13-53 when issuing protective orders.  A change was made to this requirement so that the "the form or forms shall contain at a minimum, all information that is required for entry of protective orders into the registry and the National Crime Information Center Protection Order file."  The House had two other domestic violence related measures on its calendar: SB 293 and SB 346.  SB 293 was Sen. Hamrick's bill amending O.C.G.A. § 19-13-4 relating to protective orders and consent agreements, issuance, expiration, and enforcement.  Currently the law provides that such orders are in effect for six months; this bill extends this to one year and allows the court, on its discretion, to convert the temporary order granted under this Code Section to an order effective for not more than three years or to a permanent order.  The House recommitted this bill to the House Judiciary Committee.  The other bill, SB 346, dealt with teen dating violence which the House passed 162 to zero.  This will establish in O.C.G.A. § 20-2-314 that the State Board of Education must develop a program for preventing teen dating violence for grades eight through 12.  

SB 132 – This was Sen. Squires bill relating to name reservations for corporations.  This specifically amends O.C.G.A. § 14-2-122 paragraphs (1), (2), (3), and (6) relating to filing fees and penalties:

"(1) Articles of incorporation

$ 100.00

(2) Application for certificate of authority

225.00

(3) Annual registration

30.00"

"(6) Application for reservation of a corporate name

25.00"

Additionally, the bill amends O.C.G.A. § 14-2-402 concerning reserved corporate names:

"(a) A person may apply to reserve a name for the purpose of incorporation by paying the fee specified in Code Section 14-2-122.  If the Secretary of State finds that the corporate name applied for is available, he or she shall reserve the name for the applicant's use for 30 days or until articles of incorporation are filed, whichever is sooner.  If the Secretary of State finds that the name applied for is not distinguishable for filing purposes upon the records of the Secretary of State, he or she shall notify the applicant who may then submit another reservation request within ten days of the date of the rejection notice without payment of an additional reservation fee.  (b) Upon expiration of a name reservation after 30 days without the filing of articles of incorporation, the name may again be reserved for another 30 day period by the same or another applicant under the same guidelines of subsection (a) of this Code section.
(c) A person who has in effect a name reservation under subsection (a) of this Code section may transfer the reservation to another person by delivering to the Secretary of State a signed notice of the transfer that states the name and address of the transferee."

Similar provisions are made for limited partnerships and limited liability companies.  

SB 264 – This was Sen. Stokes bill amending Title 31 to provide for actions against community living arrangements and drug abuse treatment and education programs licensed by the Department of Human Resources and to delete community living arrangements from the definition of 'institution'.  It also provides for the relocation of residents of certain community living arrangements and patients of certain drug abuse treatment and education programs under certain emergency conditions and includes community living arrangements in a definition of long-term care facility for purposes of reporting abuse or exploitation.  It also amends Title 37, relating to mental health, to provide for the licensing of community living arrangements by the Department of Human Resources.  This passed the House by a vote of 162 to 2.  

SB 265 – This was Sen. Don Thomas' bill relating to registration of automated external defibrillators.  It proposes to add in O.C.G.A. § 31-11-53.2 (c) the language to require this registration within 30 days of receipt of the equipment.  Such would be registered with the Emergency Health Section of the Division of Public Health of the Department of Human Resources.  These pieces of equipment are utilized by health care providers licensed under Title 31 or health care professionals licensed under Title 43 and those shall not be subject to this code section.  This passed by a vote of 141 to 24.  

HB 43 – This ended up being the tax bill of the Session.  Conference Committee appointees were appointed in order to work out the various details.  It specifically contains a higher tobacco tax on cigarette and cigar products as well as loose tobacco products.  It also contains all the cash management changes and tax credits used to balance the Budget and promote economic development, including accelerating the corporate tax withholding payments and incentives for Rubbermaid and Daimler-Chrysler.  The elderly were also provided a tax reduction on their retirement income which will be phased in over time.

HB 191 – The House and Senate both passed this amendment to Title 40 concerning voluntary cancellation of the registration of motor vehicles and other provisions relating to the form and contents of application for registration of vehicles.  A new Code Section is added at 40-2-10:  "A vehicle registrant may voluntarily cancel the registration on a vehicle when such vehicle is not in use for any reason, including without limitation if the vehicle is stolen, repossessed but not redeemed by the registrant, junked, inoperable, in storage, used seasonally for agricultural or other purposes, or if the owner is on active duty in the armed forces of the United States and is transferred to a duty station away from the location of the vehicle or is on active sea duty.  A registration that has been voluntarily cancelled may be reinstated upon payment of all accrued ad valorem taxes and license fees, if any."  Among other provisions in the bill, it also amends the law relating to notification of coverage termination in O.C.G.A. § 40-2-137 so as to define a "fleet policy" and "lapse."  Such mean: "fleet policy means a commercial vehicle policy that insures two or more vehicles that are not identified individually by vehicle identification number on the policy or a commercial policy that is subject to adjustment by audit for vehicle changes at the end of the policy period."  "Lapse means one or more days upon which the records of the department do not reflect that a motor vehicles was covered by a policy of minimum motor vehicle insurance coverage."  If a vehicle is covered by a fleet policy, the owner's insurer shall not be required to provide such proof to the department by electronic means.  The commissioner may waive the lapse fee for any owner whose vehicle registration has been voluntarily cancelled per O.C.G.A. § 40-2-10.  Additionally, upon being presented a copy of official orders or other satisfactory proof of ordered duty as approved by rule or regulation of the commissioner showing that an owner of a motor vehicle was deployed outside the continental U.S. on active military duty in the armed forces of the U.S. at the time his or her minimum motor vehicle insurance coverage for such vehicle terminated, the county tag agent shall waive the lapse fee and restoration fee, suspension of the owner's motor vehicle registration under this Code section shall terminate and application for registration of the vehicle which otherwise satisfies requirements provided by law may be accepted without delay.   

HB 194 – This is the bill that amends the law establishing the Georgia Athlete Agent Regulatory Commission and also amends last year's "ticket broker" bill.  Both the Senate and House agreed with each other's amendments in Chapter 4A of Title 43.  The bill establishes definitions for "contract," "endorsement contract," "intercollegiate sport," "record," "registration," "State," and "student athlete."  It also clarifies the definition of "person."  The Commission will consist of five members and be appointed by the Governor, President of Senate, and Speaker of the House.  The persons currently serving on the Commission will have their terms ended on June 30, 2003 as the new appointments will take effect on July 1, 2003 .  The bill amends the requirements of a ticket broker and deletes current law requiring that the ticket broker "sell tickets only at its permanent office or place of business; provided, however, that delivery of one or more tickets after the transaction is completed to a place other than the ticket broker's office or place of business shall not violate this paragraph."  See O.C.G.A. § 43-4B-28(a)(4).  Further, a "ticket broker offering to resell tickets to an athletic contest or entertainment event through any printed, broadcast, or Internet advertising shall include in such advertising the license number of such ticket broker offering such tickets for resale."  

HB 319 – In Rep. Alan Powell's bill dealing with motor vehicles relating to drivers' licenses and uses of social security numbers, an amendment was added so that O.C.G.A. § 19-11-3(1) could have a better definition for "court order for child support."  It means any "order for child support issued by a court or administrative of quasi-judicial entity of this state or another state, including an order in a criminal proceeding which results in the payment of child support as a condition of probation or otherwise.  Such order shall be deemed to be a IV-D order for purposes of this article when either party to the order submits a copy of the order for support and a signed application to the department for IV-D services, when the right to child support has been assigned to the department pursuant to subsection (a) of Code Section 19-11-6 or upon registration of a foreign order pursuant to Article 3 of this chapter."  There are additional amendments to O.C.G.A. § 9-11-6 as to how the department can accept applications for child support services.  Additionally, it amends O.C.G.A. § 9-11-8 concerning the department's duty to enforce support of abandoned minor public assistance recipient and scope of action.  The bill also amends how such data on drivers' licenses may be shared by the Department of Motor Vehicles and the Department of Human Resources.  

HB 352 – A Conference Committee had to be appointed to resolve differences on this Legislation.  It amends O.C.G.A. § 43-1-19(h) concerning the disposition of complaints filed against their professional licenses with the professional licensing boards.  It adds some new language concerning grounds for refusing to grant or revoke the licenses by adding a new paragraph (5): "when a member of the public files a complaint with a professional licensing board or the division director against a licensee, within 30 days after the conclusion of the investigation of such complaint, the professional licensing board or the division director shall notify the complainant of the disposition of such complaint.  Such notification shall include whether any action was taken by the board with regard to such complaint and the nature of such action.  In addition, the division director and the board shall upon request by the complainant advise the complainant as to the status of the complaint during the period of time that such complaint is pending."  An additional amendment was tacked onto the bill regarding penalties for violations for persons operating as athletic trainers in O.C.G.A. § 43-5-14 without a license in order to make such a misdemeanor of a high and aggravated nature (previously it was only a misdemeanor).  

HB 372 – This was the Georgia Hospital Association's bill carried by Rep. Ron Dodson which amends title 31 concerning financial assistance to students, post-graduate trainees, or the parents of such for programs of study in healthcare fields where critical personnel shortages exist in the authority's service area.  This specifically amends O.C.G.A. § 31-7-75 (25).  It also grants immunity for certain hospitals, their agents, or employees, healthcare providers, healthcare workers, and certain other persons participating in the federal smallpox vaccination and treatment program.  The bill amends isolation and segregation of diseased persons and quarantine by adding a new Code Section in 31-12-4.1:  

"(b) Without waiving or affecting and cumulative of any existing immunity from any source, unless it is established that injuries or death were caused by gross negligence or willful or wanton misconduct: (1) No licensed hospital which participates in a smallpox vaccination and treatment program authorized by the United States Secretary of Health and Human Services or the United States Public Health Service of the State of Georgia or employees, agents, or health care workers of such hospital; and (2) No licensed health care provider, health care worker, or other person who participates in such smallpox vaccination and treatment program, whether or not such provider, workers, or person is an agent or employee of said hospital shall be liable for damages or injuries alleged to have been sustained by any individual by reason of such individual's receipt of a smallpox vaccination or treatment, such individual's exposure to smallpox or its related infections, or any act or omission committed by said hospital, employee, agent, health care provider, health care worker, or other person as a result of such individual's receipt of services from or related to such smallpox vaccination and treatment program.
(c) This Code section shall apply only to causes of action arising on or after the effective date of this Code section."  

The bill also addresses vaccination programs for emergency first responders (state or local law enforcement personnel, fire department personnel, corrections officers, or emergency medical personnel) who may be deployed to a bioterrorism attack, terrorist attack, catastrophic event, natural disaster, or emergency.    The program would cover vaccinations for diseases which are recommended by the U.S. Public Health service and in accordance with the Federal Emergency Management Directors Policy and may include, but not be limited to, vaccinations for hepatitis A, hepatitis B, diphtheria-tetanus, influenza, and pneumococcal.  There are exemption provisions for the emergency responders who do not wish to take the vaccine as long as they have a written statement from a licensed physician which is then presented to the Department indicating that the vaccine is medically contraindicated for the person or if such conflicts with the religious beliefs of the emergency responder.  The Department would be responsible for notifying the emergency responders about the availability of the vaccination program and risks associated with such and will be required to provide educational materials as to how to prevent exposure to the infectious diseases.  The vaccination program would hinge on receipt of federal funding or grants for aid.

HB 380 – A 'big one' for the Session.  This was the flag compromise, much of which was brokered on the Senate side by newly elected Sen. Kasim Reed.  Basically it allows voters to select between the 2001 flag created by Gov. Barnes or this new version which will look much like the prior flag, but without the St. Andrew's cross on the Confederate battle flag.  A description of the new flag proposed, which is outlined in O.C.G.A. § 50-3-1(a), is:  

"The flag of the State of Georgia shall consist of a square canton on a field of three horizontal bands of equal width.  The top and bottom bands shall be scarlet and the center band white.  The bottom band shall extend the entire length of the flag, while the center and top bands shall extend from the canton to the fly end of the flag.  The canton of the flag shall consist of a square of blue the width of two of the bands, in the upper left of the hoist of the flag.  In the center of the canton shall be placed a representation in gold of the coat of arms of Georgia as shown in the center of the obverse of the Great Seal of the State of Georgia adopted in 1799 and amended in 1914.  Centered immediately beneath the coat of arms shall be the words 'IN GOD WE TRUST' in capital letters.  The coat of arms and wording 'IN GOD WE TRUST' shall be encircled by 13 white five-pointed stars, representing Georgia and the 12 other original states that formed the United States of America .  Official specifications of the flag, including color identification system, type sizes and fonts, and overall dimensions, shall be established by the Secretary of State, who pursuant to Code Section 50-3-4 serves as custodian of the state flag."  

In a dramatic series of votes, the House stripped off the second referendum in 2004 containing the pictures of the Confederate flag and the new flag.  The Governor released his votes in the Senate and the compromise narrowly passed.  

HB 414 – This amends Title 17 concerning criminal procedure so as to allow concurrent grand juries.  It also amends procedures relating to pretrial motions, discovery, certain witnesses, and demands for trial.  It also establishes certain time limits for pretrial motions.  A Conference Committee had to hash out the differences on this bill with the following serving as Conferees:  Chuck Clay; Preston Smith; Curtis Jenkins; Curt Thompson; and Nikki Randall.  

HB 521 – A Conference Committee also worked out the differences on this bill concerning meningococcal meningitis.  This requires post-secondary educational institutions, which were opposed to the bill, to provide information about this disease to enrolled students, who reside in campus housing, and requires documentation that each student (the student has to sign a document and if the student is a minor, then his or her parent or guardian has to sign) has received a vaccination against the disease or alternatively has received and reviewed information about the disease.  The post-secondary institutions are not required to pay for the vaccinations.  Any school which has made a reasonable effort to comply with the new law will not be liable for damages or injuries sustained by a student by reason of that student contracting meningococcal disease.  This becomes effective on January 1, 2004 .  

HB 556 – Rep. Royal and others had introduced this bill amending Georgia 's Tax Code to provide for additional administrative powers, duties and authorities of the State's revenue commissioner and to provide for dissemination of certain information regarding tax executions and for additional fees with respect to collection of tax liabilities.  It also extends the date for filing and payment dates with respect to certain returns which have been electronically filed.   It specifically adds a new Code Section at 48-3-29:

"The commissioner may publish in the media or on the Internet for public access any or all information with respect to executions issued for the collection of any tax, fee, license, penalty, interest, or collection costs due the state which are recorded on the public records of any county.  The publication provided for in this Code section shall not constitute an unlawful disclosure of any information even though the executions giving rise to the information may be subsequently partially paid, paid and canceled, or withdrawn.  The commissioner shall provide for the removal of such information as published under this Code section as soon as reasonably possible after the execution has been satisfied or withdrawn."  

It also amends O.C.G.A. § 48-7-56(a) relating to time and place for filing returns: 

"Returns of taxpayers other than corporations shall be filed with the commissioner on or before April 15 in each year except that in the case of taxpayers using a fiscal year the return shall be filed on or before the fifteenth day of the fourth month after the close of the fiscal year.  However, in the case a taxpayer's return is allowed to be filed at a later date, pursuant to the Internal Revenue Code of 1986 as it existed on or after January 1, 2003, because the taxpayer has electronically filed returns, the date the return shall be filed shall be extended without interest and penalty to the date the return is allowed to be filed pursuant to the Internal Revenue Code of 1986 as it existed on or after January 1, 2003."  

It also adds a new Code Section at 48-7-80 concerning when tax liabilities are paid – either on calendar or fiscal year.  This states now that taxes on taxpayers other than corporations shall be paid to the commissioner on or before April 15 following the close of the calendar year.  If the return of the taxpayer other than a corporation is made on the basis of a fiscal year, the tax shall be paid to the commissioner on or before the fifteenth day of the fourth month following the close of the fiscal year.  This adds language that when a taxpayer's return is allowed to be filed at a later date, pursuant to the Internal Revenue Code of 1986 as it existed on or after January 1, 2003, because the taxpayer has electronically filed returns, the date of payment shall be extended without interest and penalty to the date the return is allowed to be filed pursuant to the Internal Revenue Code of 1986 as it existed on or after January 1, 2003.  

HB 619 – Rep. Harbin's bill dealing with a proposal to allow the writing of group accident and sickness insurance policies under a franchise group plan passed the Senate with some additional changes.  The House agreed with the changes, negating the need for a Conference Committee. 

In the original House version of the bill, there were changes on how these types of policies would operate.  For instance, one such proposal for O.C.G.A. §33-30-1(c)(3):The premium for such coverage shall be paid by the individual directly to the insurer.  Additionally,  O.C.G.A. §33-30-1(c)(5) and (6) proposed that: (5) The insurer may issue individual policies to each member or may issue individual certificates of coverage; and (6) The implementation of this subsection or the marketing, sale, or purchase of insurance authorized under this subsection shall not be contingent upon the promulgation of rules or regulations by the commissioner."  These were changed in the Senate's version. (3) was changed to clarify who was responsible for payment of premiums:  "(3) The premium for such coverage shall be paid by the individual directly to the insurer and shall not be paid, directly or indirectly, by the employer of an individual member."  Additionally, (5) now reads: "The insurer may issue individual policies to each member or may issue individual certificates of coverage.  If an individual certificate of coverage is issued, the insurer also must provide a complete copy of the group policy to the individual member upon request of such member."  (6) was deleted from the Senate's version.  Additionally, Section 3 of the bill was rewritten so as to address compliance with disclosures to individuals in O.C.G.A. § 33-30-1.2: "Any franchise group plan issued on an individual basis to a member of a franchise association pursuant to the provisions of subsection (c) of Code Section 33-30-1 shall comply with the following written disclosures that must be made to individuals at the time of solicitation for the sale of insurance and upon application for such insurance: (1) That membership in the association will allow such individual to apply for insurance but that the insurer will make the determination as to acceptability for coverage based upon the insurer's underwriting criteria; (2) That insurance may not be offered to an association member if such member does not satisfy the insurer's underwriting criteria or insurance may be offered at a higher rate; and (3) That rates for franchise association business are not regulated in Georgia and, therefore, may be subject to unregulated increases upon renewal."  

HB 770 – This was Speaker Coleman's Indigent Defense proposal.  After the Senate and House both amended the bill, no resolution was reached until a Conference Committee was appointed.  The Conferees on this measure were Sens. Chuck Clay, Michael Meyer von Bremen, and Charlie Tanksley and Reps. DuBose Porter, Tom Bordeaux, and Stephanie Stuckey.  This bill was needed so that the State could avoid federal action being taken to provide uniform counsel to the State's indigent citizens.  Some of the highlights of the bill include:  

  • Creation of a Georgia Public Defender Standards Council, an independent agency of the judicial branch of State government, which will be responsible for assuring adequate and effective legal representation to indigent persons.  The bill outlines the powers of the Council and the standards to carry out this initiative. 
  • The Council will be composed of 11 members with two being appointed by the Governor; two by the Lt. Governor; two by the Speaker of the House; two by the Chief Justice of the Supreme Court; and two by the Chief Judge of the Georgia Court of Appeals.  This will require that each of the ten judicial administration districts in the State are represented.  The bill outlines how these appointments are to be made on a rotating basis.  Eligibility requirements are outlined so that a person must be a lawyer in good standing with the State Bar of Georgia with at least three years of experience in the practice of law.  The council meets quarterly and reports annually to the General Assembly, the Governor and the Supreme Court on its expenditures and accomplishments.
  •  The director will be selected on the basis of training and experience and other qualifications the council deems appropriate and will serve at the pleasure of the Council. 
  • The director will be required to work with and provide support services and programs for circuit public defender offices and other attorneys representing indigent persons in criminal or juvenile cases in order to improve the quality and effectiveness of legal representation of such persons.  Among the director's duties include that he or she must prepare and submit a proposed budget to the council; coordinate services of the council with any federal, county or private programs established to provide assistance to indigent persons; provide for training of attorneys and other staff involved; attend the council meetings; etc.
  • In each judicial circuit, there will be a circuit public defender selection panel composed of five members with one being appointed by the Governor; one by the Lt. Governor; one by the Speaker of the House; one by the Chief Justice of the Supreme Court; and one by the Chief Judge of the Superior Court of the Circuit.  Persons on this selection panel have to reside in the judicial circuit in which they serve.  This panel then appoints a circuit public defender in the circuit with the first appointments to take office on January 1, 2005 with terms up to four years.  For a person to fill a position of a circuit public defender, a person must be 25 years of age; have been duly admitted and licensed to practice law in the superior courts for at least three years; be a member in good standing with the State Bar of Georgia; and if disbarred previously, then must have been reinstated as provided by law.  The Circuit Public Defenders will be required to maintain appropriate records – such information on each case, the outcomes, etc.  The Circuit Public Defenders will not be allowed to engage in the private practice of law and he or she can staff their office by employing administrative, clerical, and paraprofessional help as authorized by the Council, based on funds appropriated by the General Assembly.

HB 792 – What began as Home Depot's bill to address the State's law on class action litigation became the Session's weak attempt at 'tort reform' as SB 133 was held by Rep. Tom Bordeaux, Chairman of the House Judiciary Committee.  In the end, Sens. Eric Johnson (who authored the Senate version of the class action reform bill); Preston Smith; and Tim Golden along with Reps. Dubose Porter; Tom Bordeaux; and Mary Margaret Oliver worked as Conferees on a resolution to the outstanding issues.  Here are some highlights of the final bill:  

·        Amends O.C.G.A. § 7-4-12 concerning interest on judgments so that all judgments shall bear annual interest upon the principal amount recovered at a rate equal to prime as published by Board of Governors of the Federal Reserve System, as published in a statistical release H.15 or any publication that may supercede it, on the day the judgment is entered plus 3%.  Now the law is 12% per year.  If the suit is on a contract, then the amount of interest will be based on the contract amount.  This will apply to all civil actions filed on or after the effective date of this Code Section ( July 1, 2003 ).  Similar changes are also made in O.C.G.A. § 51-12-14.

·        Amends O.C.G.A. § 9-9-13 (b) concerning vacation of award by court, application, grounds, rehearing, and appeal of order.  Currently, the award shall be vacated on the application of a party who either participated in the arbitration or was served with a demand for arbitration if the court finds that the rights of that party were prejudiced by corruption, fraud or misconduct; partiality of an arbitrator appointed as neutral; an overstepping by the arbitrators of their authority or such imperfect execution of it that a final and definite award upon the subject matter submitted was not made; or a failure to follow the procedure of this part, unless the party applying to vacate the award continued with the arbitration with notice of this failure and without objection.  This adds another ground that such can occur if the arbitrator has shown manifest disregard for the law.

·        Class action certification is amended to follow federal rules but does not have discretionary appeals rights (following Alabama law) as originally proposed.  There is some language concerning allowing an appropriate appellate court to permit an appeal, at its discretion, from an order of a trial court granting or denying class action certification if such application for an appeal is made within 10 days after entry of the order.  The appeal would not stay the proceedings in the trial court unless the trial court judge or the appellate court orders such.  These changes are made in O.C.G.A. § 9-11-23 .

·        Dismissals of actions were also changed in O.C.G.A. § 9-11-41 .  It allows a plaintiff, without permission of the court, to file a written notice of dismissal at any time before the plaintiff's first witness is sworn or by filing a stipulation of dismissal signed by all parties who have appeared in the action.  It also allows a dismissal to be made by the court (as the court deems just and proper).  A dismissal under this subsection is without prejudice, except that the filing of a second notice of dismissal operates as an adjudication upon the merits.

·        A change is also made to jurisdiction as found in O.C.G.A. § 50-2-21 basically adopting Georgia 's version of forum non conveniens.  It states that a court may decline to exercise jurisdiction of a non-resident accruing outside of Georgia if there is another forum with jurisdiction of the parties in which the trial can be more appropriately held.  To determine appropriateness, the court must take into account: 1) the place of accrual of the cause of action; 2) the location of witnesses; 3) residence or residences of the parties; 4) whether a litigant is attempting to circumvent the applicable statute of limitations of another state; and 5) the public factor of the convenience to and burden upon the court.  Upon a motion, filed no later than 90 days after the last day allowed for the filing of the moving party's answer and upon the party's showing that the existing forum constitutes an inconvenient forum based on the factors described and where another forum can assume jurisdiction, the court may then dismiss the action without prejudice.

·        Structured settlement payment rights were amended as found in O.C.G.A. § 51-12-71.  The changes relate to prerequisites for transfers.  Additional changes were made regarding required transfer agreements as found in O.C.G.A. § 51-12-72.

 

The bill made no changes to caps on economic damages; immunity from liability in emergency rooms; expert witnesses' qualifications; joint and several liability; collateral source issues; or apportionment of fault.  

SB 113 – A Conference Committee worked out differences in this bill amending Title 50 concerning the State's open records and meetings laws.  It changes provisions in O.C.G.A. § 50-14-3 so as to amend the law on which government meetings that are not required to be open to the public to include "meetings when discussing any records that are exempt from public inspection or disclosure pursuant to paragraph (15) of subsection (a) of Code Section 50-18-72 or when discussing any information a record of which would be exempt from public inspection or disclosure under said paragraph."  It also exempts from disclosure those records which would compromise security against sabotage or criminal or terrorist acts and the non-disclosure of which is necessary for the protection of life, safety, or public property (with some limitations – such as those public utilities, technology infrastructures, etc.).  

SB 167 – This was another measure needing Conferees to hammer out differences. The bill dealt with employment security and the provision of an extension of the reduction in contribution rates through December 31, 2004 and extending the suspension of the surcharge based upon the Statewide Reserve Ratio in O.C.G.A. § 34-9-156(d)(4)(B):  

"B) Except for any year or portion of a year during which the provisions of paragraph (1) of subsection (f) of Code Section 34-8-155 apply, when the State-wide Reserve Ratio, as calculated above, is less than 1.7 percent, there shall be an overall increase in the rate, as of the computation date, for each employer whose rate is computed under a rate table in Code Section 34-8-155 in accordance with the following table:

If the State-wide Reserve Ratio:

Equals or

Exceeds

But Is

Less Than

Overall

Increase

1.5 percent

1.7 percent

25 percent

1.25 percent

1.5 percent

50 percent

0.75 percent

1.25 percent

75 percent

Under 0.75 percent

 

100 percent

provided, however, that for the period of January 1 through December 31, 2004, the overall increase in the rate required under this subparagraph shall be suspended and the provisions of this subparagraph shall be null and void, except in the event the State-wide Reserve Ratio, as calculated above, is less than 1.00 percent, then the Commissioner of Labor shall have the option of imposing an increase in the overall rate of up to 35 percent (the House had added that this must be done in consultation with the Governor and would be directed to impose an increase in the overall rate of up to 40 percent), as of the computation date, for each employer whose rate is computed under a rate table in Code Section 34-8-155."

It also changes the law on eligibility for unemployment benefits so that employees of employee leasing companies and professional employer organizations shall be presumed to have voluntarily left employment without good cause if the employees do not contact the employee leasing companies and professional employer organizations for reassignment upon the completion of an assignment.   

SB 190 – Sen. Don Thomas originally introduced this bill to eliminate the need for syphilis testing prior to marriage.  This repeal of this test would occur in O.C.G.A. § 19-3-40 .  The House amended this to require that an HIV test be done as a condition of issuance of a marriage license.  A certificate would state that such test has been performed and that in the physician's opinion the applicant is not infected with HIV.   Such test would be done within 30 days prior to the application for the license.  The applicant would have to pay for such unless he or she could not afford such test and then it would have to be done by the local health officer or county physician without charge.  The certificates would be kept on file with the judge of the probate court.  There is a misdemeanor violation established when a judge of the probate court issues a marriage license to any person, male or female, who fails to present and file a certificate, as required and any applicant for a marriage license or any physician who knowingly and willfully makes any false statement in any certificate given by the physician under this Code section or any person who violates any of the provisions contained in O.C.G.A. § 19-3-40.1.  It is not clear if the Senate agreed to this change made on Sine Die.  

SB 257 – A Conference Committee wrote the final changes to this measure which permits the acceptance of unsolicited proposals from private entities by the Department of Transportation for public-private initiatives.  These changes amend current law in chapter 2 of Title 32 and Chapter 9 of Title 32.  

SB 329 – Conferees worked out a compromise on the issue known as the Consumer Driven Health Plan initiative.  It creates a new Chapter 30B in Title 33 in order to create the Spending Account and Consumer Driven Health Plan Act.  It provides that a spending account plan or consumer driven health plan may be written in Georgia for a group or for an individual.  Such plan may contain a spending account feature which will provide the first-dollar payments for healthcare services up to a designated amount.  Group plans may, but are not limited to, provide for a uniform spending account limit.  An individual plan may incorporate a spending account feature with a limit not exceeding $10,000 annually.  All spending accounts will be required to be in the name of the individual for whom the spending account has been established.  For any plan having a spending account feature, the amount of the spending account is not required to be the same as the attachment point for insurance reimbursements.  If the attachment point for insurance reimbursements to the plan is higher than the amount contained in the spending account, a notice describing the gap for which a person is liable shall be provided to the holder.  Insurance contracts providing reimbursements for expenditures for healthcare services incurred by the plan may be a stop-loss, specific excess and aggregate, or other similar contract and may be written by an insurer licensed for life, accident, and sickness insurance or by an insurer licensed for casualty insurance.  Each contract must contain certain provisions: 1) attachment point after which the payments by the insurer will be made; 2) amounts for allowable spending accounts; 3) attachment containing the plan document; 4) conspicuous disclosure on the first page of the contract that this is not a policy for accident and sickness insurance; and 5) all other relevant terms.  

New Legislation  

HB 1038 – Rep. Harbin has authored this measure amending Title 33 to create the Georgia Health Insurance Risk Pool.  It adds a new Code Section in 33-24-21.1 and strikes current law relating to "qualifying eligible individual" and his or her right to accident and sickness policies.  This is an alternative to providing individual health insurance coverage to individuals.  The Pool will have a board to govern it and will be composed of three persons affiliated with different insurers admitted and authorized to write health insurance (two have to represent domestic insurers); one affiliated with a third-party administrator; two persons licensed to sell health insurance in Georgia; one representative from general public who is not employed by or affiliated with an insurance company or plan, a group hospital, or other health care provider and can reasonably be expected to qualify for coverage in the pool; one person representing the medical provider community; and one employer whose principal business location is in Georgia and who can reasonably be expected to offer health insurance coverage to his or her employees.  There are guidelines on operation of the pool and what it is authorized to do, such as have authority to provide health benefits coverage to persons who are eligible for coverage; enter into contracts; sue and be sued; establish appropriate rates, rate schedules, rate adjustments, expense allowances, agents' referral fees, and claim reserve formulas; adopt policy forms, endorsements, and riders and applications for coverage; etc.  The board can select one or more insurers or a third-party administrator to administer this pool (the bill sets up review criteria for evaluating bids).  Rates and rate schedules may be adjusted for appropriate risk factors such as age and variation in claim costs and it will determine the standard risk rate by considering the premium rates charged by other insurers offering health insurance coverage to individuals.  The rates and rate schedules will be submitted to the Commissioner of Insurance for approval prior to use.  Eligibility for coverage from the pool is outlined – a person must show notice of rejection or refusal by two insurance companies for health reasons (a rejection or refusal by an insurer offering only stop-loss, excess loss, or reinsurance coverage with respect to the applicant shall not be sufficient evidence); a refusal by an insurer to issue insurance except at a rate exceeding the pool rate; diagnosis of the individual with one of the medical or health conditions listed by the Board (if diagnosed with one of those, then the individual may be eligible for pool coverage); in the case of an individual who is eligible for coverage under HIPAA, the individual's maintenance of health insurance coverage for the prior 18 months with no gap in coverage greater than 63 days of which the most recent coverage was through an employer sponsored plan; in the case of an individual who is eligible for coverage under HIPAA, the individual's maintenance of health insurance coverage through Georgia's Enhanced Conversion Option, Georgia Health Insurance Assignment System, or Georgia Health Benefits Assignment System at a rate exceeding the pool rate; or legal domicile in Georgia and eligibility for the credit for health insurance costs under Section 35 of the federal Internal Revenue Code of 1986.  The board would assess insurers at such time and for amounts that the board finds necessary to continue the operation of the pool; the assessments will be due no later than 30 days after prior written notice to the insurers and shall accrue interest at a rate no more than 12% per annum on and after the due date.  This assessment will be in an amount not to exceed $2.00 per covered person insured or reinsured by each insurer per month.  There is a provision for grievances for persons covered by the pool.  The State auditor can review the pool annually.  This coverage would be made available no later than January 1, 2005 .  

HB 1039 – Reps. Smith, Orrock, Rice, Bunn, and Dooley have co-authored this measure amending O.C.G.A. § 43-30-1 so as to allow a doctor of optometry, who is certified for using pharmaceutical agents for diagnostic and treatment purposes, to prescribe and administer all oral and topical pharmaceutical agents related to the diagnosis or treatment of diseases and conditions of the eye and adnexa oculi except Schedule I or Schedule II controlled substances.  

HB 1043 – Reps. Murphy, Wilkinson, Knox, Mobley, Reece and others have introduced this amendment to Article 1 of Chapter 24 of Title 33 in order to require notices relating to cancellation of policies be sent via United States mail or statutory overnight delivery, return receipt requested.  Currently, these are just sent via United States mail.  

HR 914 – Reps. Mangham, Mobley, Stephenson, Thomas, Dukes and others have proposed this Resolution expressing sincere regret in the State's position in the pending appeal before the United States Supreme Court in the case of Georgia v. Ashcroft, Docket No. 02-182, and to make clear that any previous legislative vote or action should not be misconstrued as a support of minority vote dilution.  

HR 915 – Reps. Smith, Burkhalter, Campbell, Willard, Martin, and others have offered this Resolution creating the House Study Committee for the Transfer of Operations of Hartsfield Atlanta International Airport, which would be composed of five House of Representative members appointed by the Speaker.  This will look at the need for increased aviation security, vulnerability of airports to future terroristic action, etc.  The question is whether such oversight of operation of the airport needs to be done by a State authority.  This Committee is to make a report of its findings on or before December 31, 2003 .  

SR 431 – Sens. Unterman, Price, Stephens, and Seabaugh have proposed creation of a Senate Study Committee on Location of Electric Transmission Lines and to create a Senate Teleworking Study Commission.