January 29, 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 29, 2004

Legislators returned to work today after taking a recess on Wednesday. A number of Committee meetings were held, however, and are reported below.

As for news, it would appear that some of the tort reform measures may be near death unless it is somehow resuscitated. Supporters lost a procedural vote to keep the ER immunity and caps bill out of the Judiciary Committee. Many have joked that it is on "life support" at the present. Some Legislators feel that they dealt with tort reform measures last Session and do not wish to hear the issue again; others remain interested. Perhaps some type of reforms can be made once interested parties gather some direction. Today, there were a number of "white coats" (Doctors) in the hall to stress to Legislators their displeasure over placing the tort reform bills back in the Senate Judiciary Committee rather than in the committees where the bills were originally referred. They also were stressing that Georgia did have a crisis on getting medical malpractice insurance coverage, which was impacting access to care.

Floor News

In the House, there were a couple of bills which cleared the Floor and now are on their way to the Senate.

New Legislation

HB 1210 – Rep. Lucas and others bill amending Chapter 4 of Title 50 changes provisions relating to requirements for certain privatization contracts, notice requirements, and competitive bidding for proposals for those contracts has now been referred to the State Institutions and Property Committee.

HB 1212 – Reps. Heard and McBee's bill amending O.C.G.A. § 48-7-40.12 so as to change the manner of calculating the base amount on qualified research expenses for some tax credits, has now been referred to the House Ways and Means Committee.

HB 1214 – The House Special Judiciary Committee will deal with Reps. Crawford's and Jenkins' proposal to amend O.C.G.A. § 16-11-130 so that there will be an exemption provided for the Clerks of the Supreme Court and Court of Appeals to carry concealed weapons without a license.

HB 1215 – Rep. Richardson's bill on amending O.C.G.A. § 5-6-35 changes provisions so that those appeal requirements shall not apply to appeals of cases involving zoning or land use issues. This will now be heard in the House Judiciary Committee.

HB 1218 – Rep. Borders' bill amending Article 15 of Chapter 1 of Title 10 requires employees at an inbound call center to disclose the employee's name, the name of his or her employer, and the physical location of such employee. If such is not disclosed, this would be considered a deceptive or unfair business practice. This has been forwarded to the House Public Utilities and Telecommunications Committee.

HB 1220 – Rep. Stephens and others' proposal amending Chapter 5A of Title 31 provides that certain prescription drugs sold in Georgia for use with humans and subject to a maximum manufacturer's price schedule established by the Public Service Commission shall not be subject to prior approval requirements has been forwarded to the House Industrial Relations Committee.

HB 1222 – Reps. Oliver and Stokes proposal to amend O.C.G.A. § 9-15-11 concerning what "costs" to be considered in the costs in a judgment has been referred House Judiciary Committee.

HB 1224 – Reps. Dollar and others' bill concerning changes to the ways in which a Conference Committee of the General Assembly can make changes to an appropriations bill as found in Article 1 of Chapter 5 of Title 28 is now in the House Rules Committee.

HB 1226 – Rep. White's proposal to amend the Tax Code at O.C.G.A. § 48-7-27 so that the computation of Georgia taxable net income may exclude applicable military income has now been referred to the House Ways and Means Committee.

HB 1227 – Rep. Westmoreland's bill amending O.C.G.A. § 15-12-1 to allow for an exemption for a primary caregiver of a child who is four years of age or younger from jury duty and to also allow for an exemption for a primary teacher of children in a home study program has been forwarded to the House Special Judiciary Committee.

HB 1229 – Rep. Barnes' proposal amending O.C.G.A. § 16-5-70 concerning cruelty to children and adding a non-merger provision for the offense of cruelty to children in the second degree has been sent to the House Special Judiciary Committee.

HB 1232 – Rep. Beasley-Teague and others' proposal amending Chapter 24 of Title 33 prohibits accident and sickness insurers from limiting the availability of such insurance based upon geographic location or zip code and has now been sent to the House Insurance Committee.

HB 1234 – Rep. Black's bill amending O.C.G.A. § 26-2-411 to change the license expiration dates for those entities licensing and inspecting of mobile meat, poultry, or seafood sale vehicles has been referred to the House Agriculture and Consumer Affairs Committee.

HB 1239 – Rep. Royal and others are proposing to add O.C.G.A. § 48-2-35.1 to the Tax Code:

"If a certificate or exemption determination letter issued by the commissioner certifying that the purchaser is entitled to purchase tangible personal property or taxable services without the payment of sales and use tax has not been obtained and used prior to purchasing such tangible personal property or taxable services, a refund of sales and use taxes shall be made without interest."

HB 1240 – Rep. Royal and others have proposed adding O.C.G.A. § 50-5-82 to add more vendor requirements. The Dept. of Administrative Services and any other state agency shall not enter into a contract for goods or services, or both, with a non-governmental vendor if the vendor or an affiliate of the vendor is a dealer as defined in O.C.G.A. § 48-8-2(3) or meets one or more of the conditions there under but fails or refuses to collect sales or use taxes levied under Chapter 8 of Title 48 on its sales delivered to Georgia. There are emergency conditions when this does not apply.

HB 1250 – Rep. Teilheit has proposed legislation to help educate the elderly about crimes committed against them as well as ways to protect themselves. This legislation would be added as Chapter 19 in Title 17 and would be known as the Senior Protection Advisory Council. It would have the Attorney General as its Chair, six additional Members appointed (two by the Governor, two by the Speaker of the House, and two by the Lt. Governor).

HB 1252 – Rep. Douglas and others are proposing adding O.C.G.A. § 48-8-3.2 concerning sales and use taxes. This would state: "Notwithstanding any other provision of law to the contrary, no transaction which would otherwise constitute a retail sale for purposes of this chapter shall be subject to sales and use taxation if such transaction occurs through the Internet." Currently, the law is not clear on Internet sales; technically, Georgians are to report and pay taxes on items purchased through the Internet.

HB 1255 – Rep. Lewis and others have offered amendments to the Tax Code concerning income taxes to provide that Georgia taxable net income of any taxpayer shall not include income which is attributable directly to a capital gain resulting from certain involuntary conversions of real property because of condemnation or eminent domain. This would apply to taxable years beginning on or after January 1, 2005.

HB 1256 – Rep. Westmoreland and others propose adding a new Code Section at O.C.G.A. § 9-15-16:

"In any civil action in any court of record of this state, all attorney's fees and court costs shall be assessed against the plaintiff in such action if judgment is rendered against such plaintiff at trial. If the plaintiff is unable to pay such attorney's fees and court costs, or any portion thereof, in any such civil action, such attorney's fees and court costs or such portion thereof which the plaintiff is unable to pay shall be assessed against and paid by the plaintiff's attorney. Subsequent reversal of such judgment on appeal shall not affect assessment of such attorney's fees and costs."

HB 1260 – Rep. Beasley-Teague and others have proposed amending O.C.G.A. § 50-5-69 so that the Dept. of Administrative Services shall provide for the advertisement of bid opportunities valued at $10,000.00 or more via the Georgia Procurement Registry by a municipality, county or local board of education without cost to such local government or board of education. This advertisement would be in the Georgia Procurement Registry.

HB 1261 – Rep. Burmeister and others are proposing changes relating to the restrictions on sales or dispensing of contact lenses as found in O.C.G.A. § 31-12-12. One of the changes is that if a person who sells, dispenses or serves as a conduit for the sale or dispensing of contact lenses to the ultimate user of the lenses and is not licensed and regulated by Chapter 29, 30, 34 or 43, then that person, upon conviction, will be guilty of a felony and may be punished by imprisonment for one to five years or by a fine not to exceed $10,000.00 or by both such fine and imprisonment. Another one of the provisions is that "all sales and prescriptions for contact lenses in this state shall conform to the federal Fairness to Contact Lens Consumers Act, P.L. 108-164, 15 U.S.C.A. Section 7601, et seq. The provisions of this Code Section shall be construed in aid of and in conformity with said federal act."

HB 1262 – Rep. Beasley-Teague and colleagues have proposed adding O.C.G.A. § 21-5-13 to require that the State Ethics Commission, when it receives for filing any disclosure report or statement or other document required to be filed under this chapter, to maintain with the filed document any envelope, package, or wrapping in which the document was delivered for filing.

HR 1037 – Rep. Beasley-Teague's Resolution urging the Board of Regents of the University System of Georgia to lower its student fees (in an effort to preserve HOPE) has been forwarded to the House Higher Education Committee.

HR 1040 – Rep. Mills and others have proposed urging the United States Congress to enact a permanent ban on Internet access taxes.

HR 1063 – Rep. Graves and others have offered this Resolution urging the United States Congress to pass the Federal Marriage Amendment.

HR 1065 – Rep. Rogers and others have proposed amending the State's Constitution to provide new limits on State taxation and spending powers. It amends Article III, Section IX of the State's Constitution and adds a new Paragraph IV. Some of its proposals includes that the General Assembly shall not appropriate funds for any given fiscal year, which, in aggregate, exceed the total treasury receipts from existing revenue sources anticipated to be collected in the fiscal year, less refunds, as estimated in the budget report and amendments thereto. It also proposes that any excess State revenues over expenditures at the end of a fiscal year shall be transferred to a Budget Reserve Fund. Appropriation from this Fund may be made only upon the total depletion of all other available funds in the event of such state emergencies as natural disasters, budget shortfalls, and other unforeseen circumstances and such appropriations can only occur on a two-thirds' vote of all elected members to each house of the General Assembly. Income earned on the Budget Reserve Fund shall accrue to the fund. Except as noted above, in fiscal years where there is excess of revenues over expenditures, those shall be refunded on a pro rata basis on the annual income tax returns. The General Assembly shall also reduce state tax rates for the next tax year to reflect the excess of revenues over expenditures.

SB 439 – Sen. Seabaugh's proposal amending Article 3 of Chapter 8 of Title 16 and amending Article 4 of Chapter 7 of Title 51 relating to detention or arrest on suspicion of shoplifting to add for immunity for detention due to suspicion of film piracy has been sent to the House Judiciary Committee.

SB 443 – Sens. Adelman and Seabaugh's proposal to prohibit the imposition of nonuse, handling, dormancy, or maintenance fee on gift cards and gift certificates issued by merchants or persons acting on behalf of merchants has now been referred to the Senate's Agriculture and Consumer Affairs Committee. This would be added in O.C.G.A. § 10-1-393.

SB 446 – Sen. Cheeks and others have offered this change to Article 4 of Chapter 5 of Title 21to make it unlawful for any state government organization, officer, or employee to expend public funds for lobbying and to make it unlawful for any person or organization to expend funds appropriated by the General Assembly for lobbying. It also makes it unlawful for any lobbyist to accept such monies. This would not apply to the payment of salary or other compensation to a full-time officer or employee of the state who is a lobbyist as that term is defined in this article but who also performs other duties of office or employment in addition to lobbying.

SR 624 – Sen. Price and others have authored a Resolution urging Governor Perdue to issue an executive order requesting EdGeorgia, LLC to establish an educational loan secondary market in Georgia. This has been referred to the Senate Higher Education Committee.

Committee News


House Industrial Relations Committee

Yesterday, the House Industrial Relations Committee, under the leadership of Rep. Channell, met to send bills to Subcommittees. Two bills relating to prescription drugs, HB 1061 and HB 1220 (concerning pricing controls and prior approval respectively), were assigned to a Subcommittee comprised of Reps. Barnes, Bannister, Drenner, Maddox, and Ralston. This Subcommittee will meet next Wednesday and hear more from the Dept. of Community Health, the Public Service Commission, and the author regarding how the bills are intended to work. Additionally, HB 1001 was assigned to the Committee's Subcommittee on Employment Security and HB 1091 was assigned to the Subcommittee on Labor Management Relations.

House Health and Human Services Committee

On Wednesday, the House Health and Human Services Committee had a guest speaker from Canada on drug pricing. He made comparisons on drug prices between the United States and Canadian markets. He also noted several pricing differentials – a United States citizen will pay $800 more for hospital care than a Canadian; a United States citizen will pay $900 more for physician care than a Canadian; and a United States citizen will pay $200 more for prescription drugs than a Canadian. In Canada, there are different ways a drug company may launch a new drug – one way is to average the price between the United States and six other countries. The importation of drugs from Canada would be one of the biggest issues for Americans. There is no such thing as "FDA-approved" drugs with Canadian pricing. Drugs are usually manufactured elsewhere; thus, there is no guarantee that the drug will be safe.

After this presentation, the Committee took up HB 760 which repeals the sunset provision on the Statewide Committee on Newborn Hearing Screening. A number of questions were raised; the author of the bill, Rep. Harrell, stated she had concerns over the need to amend the Committee's mission and goal as problems had been found in further testing of newborns and referrals to additional testing. Additionally, she believes that there are questions concerning what health insurance plans cover on the additional testing and hearing aids.

The Committee also passed out HB 1055 which will help those with visual impairments access telecommunications' programs to get access to news across the State.

Senate Appropriations Committee

The Senate Appropriations Committee began work today on the Budget. Some of the Subcommittees met to take up some portions of the Budget. The Senate's Human Development Subcommittee of its Appropriations Committee heard today from the Georgia Cancer Coalition and Department of Human Resources.

The Georgia Cancer Coalition's dollars for FY 2005 remain unchanged from what it receives in FY 2004. It does have more dollars placed in cancer screening by $400,000. In total, in FY 2004, it has a $700,000 reduction; $345,000 of that is in tobacco prevention.

Dept. of Human Resources Acting Commissioner Maria Green spoke to the Subcommittee this morning. She provided an outline to Senators addressing some questions already received. She provided more information on the fee proposal for the Office of Child Support's Orders and Child Support Enforcement proposal concerning health insurance. If a child's parent has health insurance available and its cost is not more than 5% of his or her gross salary, then that parent must purchase insurance coverage for the child.

Ms. Greene also talked about the numbers of vacancies and turnovers in jobs – especially in the Division of Family and Children Services. Further, she noted the six different levels of care for the Foster Care program with the varying reimbursement levels. Ms. Greene also mentioned the Division of Mental Health, Development Disabilities, and Addictive Diseases implementation of HB 498 and the regional office structures and the roles of the Community Service Boards. There will be nine of seventeen Community Service Boards which will get reductions (an explanation and impact to those providers was provided to the Senators). She also mentioned the reductions to Public Health (on average, a county's cut is $10,000.00). Additionally, the Dept. of Human Resources will see an overall reduction in its staff (many of these job slots are vacant but many are currently filled).

Ms. Greene mentioned that the Department is refinancing as much as possible the use of State monies with federal monies. Reductions with the biggest impact are to the grants-in-aid to the Public Health Department.

There are cuts to the unified transportation system which will not only impact the administrative staff which deal with the contracts but in FY 2005 also impact clients served.

Other areas mentioned:


Closure of the medical surgical unit at Central State Hospital (currently, the Department is working on negotiations for Oconee Regional Hospital to take care of these persons)


The transfer of 65 State level positions to the county level in DFACS
 

The severe cuts to teen programs (this apparently will eliminate all but five of the 39 programs statewide). Those remaining will be funded with TANF monies.
 

Closure of Craig Nursing Home was also mentioned (the Department has used the past year for attrition but is now meeting with families to see how they may serve persons in another way (either through the community or another facility)). If a family does not wish for that individual to be moved, then he or she will remain on that campus.


There are a number of additions to child protective services.


Persons with developmentally disability diseases will see a transfer of 20 persons to the community (this relates to the closure of the facilities at Savannah and Columbus). It was noted that three persons could be served in the Community Care Services Program for every one person in a nursing home. (Sen. Tommie Williams inquired about the SOURCE program, administered by the Dept. of Community Health; additionally, he asked how transfers were occurring from hospital emergency rooms to mental health facilities. Apparently, currently a hospital emergency room must contact a Community Service Board to locate the facility with availability of bed space before a sheriff may transport.)


A number of persons got to make a few remarks about the Budget, although it was not indicated that public testimony would be allowed. Some argued for keeping the additional Community Care Services Program monies in the budget; restoring monies to the Long-Term Care Ombudsman Office; finding dollars for suicide prevention; dealing with transportation costs; addressing the waiting lists; keeping the level of care placement system in place for foster care; etc.

Other News

The House will reconvene on Friday at 10:00 a.m.; the Senate will reconvene at 9:00 a.m.


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

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