January 15, 2004

For more information contact:

Stanley S. Jones, Jr.

404-817-6133

Jeffrey C. Baxter

404-817-6247

Helen L. Sloat

404-817-6170

January 15, 2004

Many were reeling this morning over the huge Budget proposal for FY 2005. Lobbyists were delving into the voluminous document, trying to determine whether their represented entities received a cut or an addition.

Floor News

Yesterday, the Senate had a Floor Substitute offered on HB 373 which is an amendment to Chapter 2 of Title 22 concerning condemnation procedures and the timing for hearings before a special master and the required notice provisions by certified mail for condemnations. The amendments relate to exceptions made for condemnations for purposes of constructing or expanding one or more electric transmission lines. In those, the hearing before the special master shall take place not less than 30 days and not more than 40 days after the date of service of the order. In condemnations for purposes of constructing or expanding one or more electric transmission lines, in addition to service of the order, a copy of the order must also be mailed via certified mail to any person shown by the public ad valorem tax records of the county in which the property is located to have an interest in the property and to any other person having open and obvious possession of the property. Further, the bill addresses changes to Chapter 3 of Title 22 relating to power of eminent domain.

Yesterday, the Senate also recommitted the House Children and Youth Committee Substitute on HB 316 which adds a new Code Section at 35-3-34.1 and relates to the Georgia Crime Information Center. It authorizes the exchange of national criminal history background checks on providers of care to children, the elderly, and persons with disabilities. This applies to volunteers with youth sports organizations and other youth activities too. It would require a national criminal history background check to be done both at the state and federal levels.

Today, Governor Perdue’s Faith-Based Initiative, SR 560, cleared the Senate and is now on its way to the House for consideration. The bill passed as the Governor originally proposed even though an attempt was made by Sen. Steve Henson to substitute SR 560 with the version of the faith-based initiative introduced in 2003, SR 1 which had been Sen. Harp’s version of this issue. There were, however, attempts to amend SR 560 on the Floor in an effort to deal with the school voucher and non-discrimination issues (which included some accountability language). Some fear that these churches, synagogues, and other faith-based groups may get these State funds and they may not be used for their intended purpose to provide services to those in need. Thus, many would like to see some type of required accountability provisions. However, these amendments failed to get passage (they only got 22 votes). Passage of the bill was 40 to 14 with the two-thirds majority required for the Constitutional Amendment.

New Legislation

SB 422 – Sen. Unterman has offered a reprisal of a bill proposed previously to define and provide for a new category of facilities to be known as “assisted living facilities” and to designate varying levels of such facilities as Levels I or II. This would eliminate “personal care” homes and services. It would define such assisted living facilities in Title 31 and such would be known as a “healthcare facility” as defined in O.C.G.A. § 31-6-2(8). Levels I and II would be based on a person’s ability to perform “activities of daily living” which include eating, bathing, grooming, dressing, toileting, transferring, ambulation, and self-administering medications. Level I facilities would not provide services for bedridden or bed-bound persons and replaces the “personal care home category” previously in place. A Level II facility would provide limited nursing services of less than 24 hours duration. It would, however, provide 24-hour watchful oversight, 24-hour awake staff, and assistance with activities of daily living and instrumental activities of daily living for two or more adults who are not related by blood or marriage to the owner or administrator of the home. Instrumental activities of daily living include such things as preparing meals, shopping, managing money, using the telephone, light housework, and transportation. Some of the requirements for the resident include an examination by a physician not employed by the facility prior to admission. These facilities would be licensed annually and the Department of Human Resources would have oversight of the facilities and do periodic inspections as well as promulgate rules and regulations for oversight. These facilities will also have requirements for their staff – such that employees must have training and continuing education annually as determined by the Department of Human Resources. There is also a deeming provision for currently licensed personal care homes as of January 1, 2005. These will be Level I facilities. Sales of these facilities will require the facility to apply for and receive a new license. Additionally, it proposes in O.C.G.A. § 49-4-142 that the Department of Community Health seek a waiver to authorize Medicaid payments or otherwise provide Medicaid funds for persons certified as eligible to receive Medicaid who are receiving care in a licensed assisted living facility – Level II. (Such would be done through a pilot program in two sites (one rural and the other urban)).

SR 580 – Sen. Cagle proposed this Constitutional Amendment to provide that the sales and use tax for educational purposes may also be imposed in whole or in part for maintenance and operation of public schools with an equivalent millage rate reduction. This would apply to any county school district rather than each school district as is current law. It also proposes a second option for the purposes for which the proceeds of the tax can be used and expended including the use of an amount equal to 25% of the amount of proceeds collected in each year in which the tax is levied for the reduction of the millage rate against tangible property within the school district for educational maintenance and operation purposes in an equivalent amount and the remaining 75% of such proceeds for: 1) capital outlay projects for educational purposes; 2) retirement of previously incurred general obligation debt with respect only to capital outlay projects of the school system with limitations; or 3) some combination. It also proposes a third option for the proceeds for the tax to be used so that it may be expended solely for the purpose of reducing the millage rate against tangible property within the school district for educational maintenance and operation purposes. This was assigned to the Senate Finance Committee.

SR 581 – Sen. Cagle has authored a proposed Constitutional Amendment to provide for limitations upon the rate of increase of the ad valorem tax millage rate and value of property in Article IX, Section IV, Paragraph V, “Limitations on millage rate or valuation increases.” The limit would not exceed a percentage greater than any change in the rate of economic inflation on individual taxpayers as determined by the State’s revenue commissioner.
The limitations proposed would not apply to: “1) increases necessary to fund federal or state mandates on such county, municipality, or school district for which no or insufficient federal or state appropriations have been made or to fund expenditures necessitated by natural disasters; 2) with respect to any local taxing jurisdiction which has in effect a homestead option sales and use tax; or 3) with respect to any local taxing jurisdiction which has in effect a homestead exemption regarding ad valorem taxes of that local taxing jurisdiction in an amount equal to the amount by which the current year assessed value of homestead exceeds the base year assessed value.” This measure was referred to the Senate Finance Committee.

SR 583 – The Bulldog Nation should be proud. Sen. Brian Kemp and others have offered this Resolution honoring Vince Dooley for his leadership and outstanding accomplishments as head football coach and athletic director at the University of Georgia. In like manner, Sens. Kemp, Cagle, Hudgens, and Johnson have proposed SR 584 to honor the incoming athletic director Damon Evans beginning June 2004. The Senate read and adopted these Resolutions.

HB 1054 – School councils have been under Rep. Casas's and others’ scrutiny. This proposal proposes amending O.C.G.A. § 20-2-86 and provides for a minimum of seven council members for each school. The councils would be made up of 1) one or more parents or guardians of students enrolled, excluding employees who are parents or guardians of students; 2) one or more business persons selected by the local board of education; 3) one or more certificated teachers, excluding any personnel employed in administrative positions who are employed at least four of the six school segments at the school; and 4) the school principal. It also deletes the requirement to have five council members vote off a person if the council member at issue is no longer active in the council as defined by the bylaws. The bill was forwarded to the House Education Committee.

HB 1055 – Rep. Childers and others have co-authored this measure amending Part 1A of Article 2 of Chapter 5 of Title 46. It provides for the establishment of a state-wide telecommunications system capable of providing audible universal information access services to blind and print disabled citizens and authorizes the Public Service Commission to contract for the administration and operation of such. It also provides for criteria on the selection of that provider (it requires that the contract be selected which is most advantageous to Georgia, considering price, the interest of the blind and print disabled community in having access to a high quality and technologically advanced interactive audible universal information access system, maintaining such system, and receiving training on the use of such service, outreach efforts, and all other factors listed in the commission’s request for such proposals). The bill was referred to the House Health and Human Services Committee.

HB 1138 – Rep. Smith and others have proposed changing the law governing smoking in public places to provide for the crime of smoking in a motor vehicle on a state highway, county road, or municipal street or on private property while a child is restrained in a child passenger restraining system. This change is proposed for O.C.G.A. § 16-12-2.1. Violators would be subject to fines of no more than $15.00 provided that provisions of Chapter 11 of Title 17 and any other provision of law to the contrary notwithstanding, the costs of such prosecution shall not be taxed nor shall any additional penalty, fee, or surcharge to a fine for the offense be assessed against the person convicted. The bill was referred to the House Transportation Committee.

HB 1139 – Rep. Childers has proposed a new tax by assessing each person or company which “services, maintains, operates, or leases as lessor any burglar alarm system, fire alarm system, or other electronic security system” to pay to the county or municipal corporation in which that system is installed a fee of $1.00 per month to offset the cost to such political subdivision caused by false alarms sounded by the systems. This is proposed to be added at O.C.G.A. § 36-60-12. The bill was forwarded to the House State Planning and Community Affairs.

HB 1140 – Rep. Dodson has proposed a change to Article 2 of Chapter 5 of Title 48 so as to exempt from taxation up to $75,000.00 of the assessed value of any recreational boat whether owned or held in inventory by an individual, partnership, or corporation. Further, the bill contains language for a referendum on this issue to be held on the November 2004 election. The bill was referred to the House Ways and Means Committee.

HB 1141 – Rep. Childers and others have proposed a change to the scope of practice and laws governing dentists and hygienists by changing provisions such as those relating to “conscious sedation” and providing for an additional means to receive a license to practice dentistry. Further, among the bill’s proposed changes in Chapter 11 of Title 43, it establishes requirements and procedures to obtain a license to practice dentistry based on credentials. The proposed definition for “conscious sedation” states: “a minimally depressed level of consciousness that retains the patient’s ability to independently and continuously maintain an airway and respond appropriately to physical stimulation or verbal command and that is produced by a pharmacological or non-pharmacological method or combination thereof. A patient whose only response is reflex withdrawal from repeated painful stimuli shall not be considered to be in a state of conscious sedation. The use of nitrous oxide is not considered conscious sedation for purposes of this chapter.” Some additional changes proposed include that applicants for a license to practice dentistry must have received a doctor of dental surgery degree or a doctor of dental medicine degree from a dental school approved by the board and accredited by the Commission on Dental Accreditation of the American Dental Association or its successor agency, if any. (Currently, it only requires that the school be accredited.) Further, the changes require a person applying for a license to pass a clinical examination approved by the board and a jurisprudence examination on the laws of this state and rules and regulations as they relate to the practice of dentistry as established and approved by the board. Once a person applies to practice dentistry, that person then consents to the performance of a criminal background check. It also strengthens the law when a person practices dentistry under another’s license. Currently, if a person or practice is found guilty of such, that is a misdemeanor. The changes in this proposal would make this a felony punishable by a fine of not less than $500 and not more than $1,000 or by imprisonment of not less than two nor more than five years or both. The bill was forwarded to the House Health and Human Services Committee.

HB 1148 – The Governor has had new powers proffered to him, if the bill by Rep. Reece and others passes. This bill proposes to amend Georgia’s current law known as the Georgia Death Investigation Act as found in Article 2 of Chapter 16 of Title 45. It adds a new Code Section at 45-16-22.1: “Notwithstanding the provisions of Code Section 45-16-22 or any other provision of law, the Governor shall have the authority to order an autopsy for any deceased person whose death occurred in this state or whose body is located in this state.” The House Special Judiciary Committee will hear more on this bill.

HB 1151 – In an effort to keep students safe, Rep. Stephens and others have proposed changes to O.C.G.A. § 20-2-211(e)(1) so that all personnel employed by a local unit of administration (currently, this only applies to those employed after July 1, 2000) whether or not they hold certificates from the Professional Standards Commission shall be required to be fingerprinted and have a criminal background record check made. The local unit of administration currently can employ persons up to a maximum of 200 days when the person holds a certificate under a provisions or temporary contract and can employ a person who does not hold such a certificate for a maximum of 200 days in order to allow for the receipt of the results of the criminal record check – the maximum allowed time the person can be hired is proposed to be reduced to 90 days in both instances. The bill was sent to the House Education Committee.

HB 1152 – Rep. Bordeaux and others proposed this change to O.C.G.A. § 48-2-35(b)(1)(A) so that a claim of a tax refund or fee which was erroneously or illegally assessed and collected may be made by the taxpayer at any time within seven years thereafter (current law is three years). This would become effective upon approval by the Governor if passed and would be applicable to taxable years beginning on or after January 1, 2004. The bill was forwarded to the House Ways and Means Committee.

HB 1153 – Rep. Murphy and others have co-authored this change to Chapter 4 of Title 50 relating to privatization contracts. It specifically amends O.C.G.A. § 50-4-5 and O.C.G.A. § 50-4-6. It adds an invalidation provision of such contracts when those are entered into without compliance with the law and adds an exception and when such exception may apply (which requires that for the exception to apply the Governor must by executive order make a prior written finding to such effect). This measure was forwarded to the House Judiciary Committee.

HB 1165 – A Title 10 change has been proposed by Rep. Amerson and others. It amends the “Fair Business Practices Act” and provides for certain items to be made available to a consumer in connection with rebates and also provides for a time period in which the rebate must be forwarded (when the consumer must complete a separate transaction or submission, then that rebate must be forwarded to the consumer within two weeks after receipt of the required items). This would be added at O.C.G.A. § 10-1-393.8. The measure was forwarded to the House Committee on State Institutions and Property.

HB 1170 – Rep. Holmes and his colleagues have co-authored this proposal amending Article 3 of Chapter 4 of Title 48 pertaining to redemption of property sold for taxes so as to require that the purchaser of the property, at the tax sale, make a quitclaim deed to the defendant in Fi Fa within 60 days (currently, there is no time requirement) after the property is redeemed. Among other provisions, it also requires certain purchasers (those who purchase more than 20 properties in a calendar year) at tax sales to have reasonably accessible offices within the county in which the property is purchased. The bill was referred to the House Ways and Means Committee.

HB 1171 – Predatory lending is perhaps back on the radar. Rep. Holmes and others have proposed changes to Chapter 6A of Title 7, “Georgia Fair Lending Act.” It proposes changes in limitations on late payment charges; clarifies practices of what constitutes flipping of home loans; repeals provisions concerning the limitation of the recovery of attorneys’ fees and costs in certain actions; changes provisions relating to claims and defenses for violations of the Act; repeals the authority of the Department of Banking and Finance to promulgate rules and regulations under the Act; etc. The measure was forwarded to the House Banks and Banking Committee.

HR 980 – Rep. Mills and others have authored this proposal to urge the United States Congress to enact social security personal retirement accounts. This was referred to the House Ways and Means Committee.

HR 982 – Rep. Mills and others have proposed this Resolution urging the United States Congress to abolish the death tax permanently. This was sent to the House Ways and Means Committee.

HR 983 – Rep. Heckstall and others have proposed this Resolution to amend the Rules of the House of Representatives, specifically Rule 13. It would read: “When the House is in session, representatives shall conduct themselves at all times with dignity and in a manner to ensure decorum in the deliberations of the body and shall be called to order by the Speaker for activities to the contrary, including eating at desks, reading newspapers and other materials not pertinent to legislation, unnecessary conversation, and inappropriate dress. The members of the House shall refrain from private conversations and shall preserve silence when another member has the floor and is speaking. There shall be no smoking in the House of Representatives chamber or in the House anterooms while the House is in session, or in any committee or subcommittee meeting thereof. There shall be no smoking in the restrooms on the north side of the House chamber while the House is in session.” This measure was forwarded to the House Rules Committee.

Budget News

Governor Perdue’s lengthy Budget for FY 2005 has been released. Here are some highlights:

Revenues are estimated at $15,294,294,737 for the year.
Lottery for Education is projected at $645,000,000.
Tobacco Settlement is projected at $156,370,000.
Brain and Spinal Injury Trust Fund is projected at $2,000,000.
Indigent Care Trust Fund is projected at $20,543,425.
Thus, a total of $16,118,208,162 in revenues is projected for the year.

Department of Community Health

(The numbering order used herein is the order as used in the Budget document):

1. Modify cost center standards and reduce add-ons in nursing home rate calculations $18,587,535 cut (with federal funds, $46,725,832)

2. Reduce the rate paid for nursing home based hospice care $570,271 cut (with federal funds, $3,778,318)

3. Implement a supplemental drug rebate program for all drug classes and include the Texas Implementation of Medication Algorithms (TIMA) guidelines for treating schizophrenia $9,310,408 cut (with federal monies, $24,315,964)

4. Increase the Average Wholesale Price (AWP) discount from 10% to 12% $2,346,487 savings (with federal monies, $3,661,595)

9. Provide case management for in-home therapy visits $600,101 cut (with federal monies, $1,508,739)

10. Eliminate coverage for optional services in Medicaid in the Adult Dental Program $5,681,030 (with federal monies, $14,282,911)

14. Implement a fixed fee reimbursement methodology for Ambulatory Surgical Services provided in an outpatient hospital setting $9,500,000 cut to hospitals (with federal monies, $24,396,036)

16. Eliminate Medicaid coverage for those with incomes exceeding 185% of the federal poverty level. This change will make Georgia consistent with all of the other Southeastern states $17,675,912 cut (with federal monies, $44,434,168)

17. Implement a premium payment structure based on income for members covered by PeachCare $10,609,078 savings

21. Increased state funding for Medicaid Benefits to fund the projected cost of incurred claims for prior years and the projected cash need for FY 2004 claims $376,211,190 (with federal monies, $945,967,287)

22. Fund the operating costs of the claims processing computer system $5,887,454 (with federal monies, $20,942,662)

23. Increase state funding for PeachCare Benefits to fund the projected cost of incurred claims for prior years and the projected cash need for FY 2004 claims $29,516,402 (with federal monies, $106,174,108)

24. Increase funding for the eligibility determination contract to reflect the growth in PeachCare $554,370 (with federal monies, $1,979,896)

25. Implement a targeted case management program for frequent users of emergency room services

26. Use existing SOURCE sites to provide disease case management to members with the highest Medicaid cost

27. Implement strategies to address the State Health Benefit Plan premium increase ($329,438,704) with such things as provide an optional more restrictive drug benefit; increase maximum out-of-pocket amounts for pharmacy services; etc.

29. Restore reduction in Medicaid reimbursement for private nursing home care $16,852,640 (with federal monies, $42,364,603)

35. Eliminate the Health Care Workforce Policy Advisory Committee Program and one position $342,640 state monies

Department of Education

Some of the many changes are (the numbering order used herein is the order as used in the Budget document):

3. Reduce QBE formula earnings $380,079,150 cut

4. Reduce pupil transportation $11,108,914 cut

8. Increase funding for QBE formula grants based on enrollment growth of 1.75% $95,593,908

10. Increase funding for equalization grants $47,738,278

14. Increase funds to pay the 10% salary supplement for new teachers receiving National Board Certification $5,629,256

Department of Human Resources

From Administration and funding for mothers to have healthy babies to suicide prevention and tobacco cessation programs, all got cuts. Here are a few of the proposed changes (the numbering order used herein is the order as used in the Budget document):

1. Reduce funding for the Healthy Mothers Healthy Babies Powerline $16,000 cut

3. Eliminate funding for the Suicide Prevention Contract $100,000 cut

5. Eliminate funding for the Organ Donor Education Program in Grant in Aid to County Health Departments $300,000 cut

11. Refinance children's foster care placements with federal TANF funds $1,850,000 cut

14. Reduce funding in the Emergency Preparedness/Bioterrorism Program by 6.4% and eliminate 3 positions $235,000 cut

15. Reduce funding for regional tertiary care centers $450,000 cut

22. Renegotiate and reduce DHR contracts and use of contracted consultants $1,272,948 cut

27. Reduce Community Services to reflect the renegotiation and reduction of department contracts and the use of contracted consultants $385,730 cut

28. Reduce funding to reflect the closure of the Medical Surgical Hospital at Central State Hospital, and the acquisition of those services from the local medical community as needed $5,000,000 cut

34. Transfer funds from Community Services to State Hospital Facilities Other Care – Developmental Disabilities Services personal services ($545,400) and Operating Expenses ($181,000) to support the placement of 25 children with developmental disabilities in state operated group homes

41. Restructure and improve DFCS operations by eliminating 100 state level positions and shifting another 65 state level positions to county DFCS offices $3,475,000 cut

53. Reduce operational funding for the Long Term Care Ombudsman $66,562 cut

60. Eliminate funding for Joint Commission on Accreditation of Healthcare Organization (JCAHO) fees and funding for 1 position. (JCAHO Accreditation remains in effect until 2007) $310,094 cut

69. Adjust for the increased cost of the provision of services in the Community Care Services Program an add of $3,000,000 (with federal monies, $7281,073)

70. Provide funds for an additional 460 slots in the Community Care Services Program an add of $1,600,000 (with federal monies, $3,883,239)

Tobacco Dollars

Here are a few of the proposals and notes as to which Department funds these:

Medicaid expansion for pregnant women and infants $ 8,999,451 (DCH)
PeachCare for Kids Expansion for Children $ 4,970,705 (DCH)
Critical Access Hospital Reimbursement $ 3,500,000 (DCH)
School Nurses $30,000,000 (DCH)
Community Care Services Program $ 4,190,586 (DHR)
Newborn Hearing Screening $ 2,000,000 (DHR)
Breast and Cervical Cancer Treatment $ 3,474,205 (DCH)
Cancer Treatment for Low-Income Uninsured $ 3,547,455 (DHR)
Eminent Cancer Scientists and Clinicians $ 4,840,000 (Regents)

In total, the Department of Community Health is proposed to receive $58,087,386; the Department of Human Resources $44,766,104; and the Board of Regents $6,243,177.

If you have any questions regarding this Report, please contact Stanley S. Jones, Jr., Jeffrey C. Baxter, or Helen Sloat.

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