February 13, 2001

For more information contact:

Stanley S. Jones, Jr.

404-817-6133

Jeffrey C. Baxter

404-817-6247

Helen L. Sloat

404-817-6170

          Greetings from under the Dome!  There were a number of happenings at the Capitol.  It was also Nonprofit Day at the Capitol sponsored by the Georgia Center for Nonprofits.  Hundreds of nonprofit corporations from across Georgia gathered in an effort to celebrate the services and goods they provide all Georgians and to raise the awareness of the needs and issues affecting such entities.  Governor Barnes welcomed the group at Central Presbyterian Church across the street from the Capitol.  Later in the day, Secretary of State Cathy Cox spoke to the assembly in the Rotunda and a proclamation concerning the day, signed by Governor Barnes, was then read.

 Floor Activity 

          By a vote of 168 to zero, the House voted out HB 355, authored by Rep. Nan Orrock, the bill for Registered Nurse First Assistants to receive direct reimbursement from a health insurance benefit plan.   An amendment was added on the Floor by Rep. Jeff Brown to exclude those nurses who provide such services in the capacity as an employee of the hospital, where surgical services are rendered.  A similar bill is pending before the Senate and is expected to appear on the Senate’s calendar for February 14, 2001.  The Senate bill, SB 82, has been authored by Sen. Nadine Thomas. 

          HB 435, concerning civil practice and the use of mental examinations by physicians or psychologists, was recommitted today.  Originally, the bill had been placed before the Health and Ecology Committee.  It has now been sent to the House Judiciary Committee. 

Newly Introduced Legislation 

SB 162 – Sens. Meyer von Bremen and others have offered this bill amending Chapter 2 of Title 41 of the Code concerning the abatement of nuisances.  Among the bill’s provisions are to clarify the conditions under which property is considered a public health hazard.  There are other provisions concerning the powers of counties and municipalities with respect to buildings which are not in compliance with the applicable state minimum standard codes as adopted by either an ordinance or operation of law.  

SB 165 – Sens. Polak and others have authored this bill pertaining to healthcare entities.  It would create a new category for facilities to be designated as “assisted living facilities” and to include “assisted living facilities – Level I” and “assisted living facilities – Level II” within such.  The Code would be amended in several places:  O.C.G.A. § 10-1-393; § 25-2-13; § 37-4-21; and § 48-13-9.  

HB 558 – This bill has been authored by Rep. McBee.  A notice was read to engross the bill.  It would amend O.C.G.A. § 48-8-3 pertaining to exemptions from the State’s sales and use tax in an effort to provide for an exemption from sales tax for nonprofit organizations under the Internal Revenue Code providing services to the mentally retarded.  This has been referred to the House Ways and Means Committee.  

HB 563 – Rep. Day has introduced this legislation amending O.C.G.A. § 16-12-2 concerning smoking in public places.  It would specifically prohibit smoking on public school buses.  It has been referred to the House Health and Ecology Committee. 

HB 565 – Rep. Burkhalter, after hearing about a neighbor with an autistic child, along with Rep. Lord and Rep. Harbin, have introduced this bill which would amend the Insurance Code.  It would provide for coverage for the treatment of mental disorders which are directly or indirectly caused by or contributed to autism.  A part of the bill’s provisions includes an amendment to the Code at § 33-24-28.1 by adding a new (b.1): 

“(b.1) To the extent that an insurer provides coverage for mental disorders under this Code section, then such insurer shall, pursuant to this Code section, include treatment for mental disorders which are, directly or indirectly, caused or contributed to by autism.  For purposes of this Code section, 'autism' means a developmental neurological disorder, usually appearing during the first three years of life, which affects normal brain functions and is manifested by compulsive, ritualistic behavior and severely impaired social interaction and communication skills.”

This will be heard in the Insurance Committee. 

HB 575 – Reps. Mangham and Seay have offered this bill amending the Tax Code at O.C.G.A. § 48-8-3 in an effort to provide for an exemption with respect to sales by or to churches, religious institutions, or religious denominations.  It has now been forwarded to the House Ways and Means Committee for study. 

HB 577 – Rep. Heard and others have dropped this bill amending Chapter 8 of the Insurance Code in Title 33.  It relates to the fees and taxes regarding insurance and proposes to provide for phased-in reduction in the rate of the insurance premium tax.  It also changes provisions in the Code regarding abatement or reduction of such tax and  the time of payment and filing of insurance premium tax returns (this change would allow the Insurance Commissioner to require insurance companies to demonstrate that a reduction in the tax on premiums benefits policyholders).  There are also amendments proposed in the bill concerning the county and municipal taxes on life insurance companies.  It will now be heard in the House Insurance Committee. 

HB 581 – This bill has been introduced by Rep. Smith and others in an effort to amend the Tax Code in Title 48.  It proposes to prohibit the sale or distribution of any tobacco product through a vending machine.  The bill’s purpose is to “reduce underage tobacco use by discouraging such use and to prevent youth access to tobacco products by eliminating the sale or distribution of cigarettes in Georgia through tobacco vending machines.”  The bill now goes to the House Ways and Means Committee. 

HB 584 – Rep. Jackson and Rep. Harbin have offered this amendment to O.C.G.A. § 48-8-111 concerning the procedure for imposition of a special county one percent sales and use tax.  It would change the purposes for which the tax may be levied and funds may be expended.  It proposes to allow these to be used for water capital outlay projects, sanitary sewer capital outlay projects, storm-water sewer and drainage capital outlay projects, or a combination thereof of the county. 

HB 585 – Rep. Parham and others have introduced this bill amending Article 6 of Chapter 4 of Title 26 of the Code concerning pharmacies.  It would provide for the licensing and inspection of pharmacy benefit managers.  This bill has now been referred to the Health and Ecology Committee. 

HB 589 – Rep. Rice along with others have offered this amendment to Article 2 of Chapter 7 of Title 48 of the Code pertaining to the imposition, rate, and computation of income tax.  It provides for state income tax credit for donations to certain charitable organizations. A new Section has been proposed at O.C.G.A. 48-7-29.8: 

“(a) As used in this Code section, the term 'charitable organization' means a qualified tax exempt organization under Section 501(c)(3) of the Internal Revenue Code which organization expends not less than 70 percent of the contributions and donations which it receives on the direct provision of services or goods, or both, to indigent persons.
(b)(1)(A) A taxpayer whose filing status is single or married filing separately shall be allowed a credit against the tax imposed by O.C.G.A. § 48-7-20 in an amount equal to 50 percent of the first $500.00 of verified donations to a qualified charitable organization.
(B) A taxpayer whose filing status is married filing jointly or head of household shall be allowed a per return credit against the tax imposed by O.C.G.A. § 48-7-20 in an amount equal to 50 percent of the first $1,000.00 of verified donations to a qualified charitable organization.
(2) A taxpayer shall be allowed a credit against the tax imposed by O.C.G.A. § 48-7-21  in an amount equal to 50 percent of the first $1,000.00 of verified donations to a qualified charitable organization.
(3) In no event shall the amount of the tax credit exceed the taxpayer's income tax liability for a taxable year, and any unused tax credit shall not be allowed to be carried forward to apply to the taxpayer's succeeding years' tax liability. No such tax credit shall be allowed the taxpayer against prior years' tax liability.
(c) The commissioner shall promulgate any rules and regulations necessary to implement and administer this Code section.” 

It has been sent to the Ways and Means Committee for study.

HB 593 – This bill authored by Reps. Squires, Martin and Sinkfield would amend the “Temporary Assistance for Needy Families Act.”  This is found at Article 9 of Chapter 4 of Title 49.  It would change eligibility provisions for qualified aliens.  The bill now makes its way to the Human Relations and Aging Committee. 

HB 601 – The Governor’s Floor Leaders have authored this to amend O.C.G.A. § 45-12-93 concerning the revenue shortfall reserve and the mid-year adjustment reserve in an effort to change the provisions relating to the amount of the revenue shortfall reserve.  This has been referred to the House Appropriations Committee. 

Committee Activity 

          The House Insurance Committee met this afternoon.  There were a number of bills on its agenda.  HB 446 and HB 455, bills of similar subject involving the State’s compliance with the federal law provisions mandated by the Gramm-Leach-Bliley Law, were before the Committee.  HB 446, a bill being provided by the Department of Insurance, was not accepted by the Committee when it met to hear both of the bills.  Instead, the Committee, meeting as a whole, voted to hear the bill as if in Subcommittee, accepted HB 455 authored by Rep. Stan Watson.  Rep. Watson’s bill contains measures which are not as stringent as in current law as it relates to financial data being released to entities in the business of insurance.  There are, however, similar notice provisions included in both bills.  The Committee plans to meet again on HB 455 on Thursday of this week.  Additional amendments are expected.  

          The House Insurance Committee also passed out HB 434 regarding the proposed enactment of the “Georgia Consumer Choice Negotiated Health Insurance Plan Act.”  There was some discussion about this proposal as it is feared that it would eliminate all healthcare mandates which the General Assembly has been passing for more than ten years.  This would allow a person or business to have the opportunity to negotiate with insurers for the option to purchase more affordable and flexible health insurance plans.  This would impact all policies written by an insurer authorized to transact business in this state which can enter through a licensed agent or agency into policies or contracts of group, blanket, or individual accident and sickness insurance with any person to provide only the benefits, coverages, and reimbursements for services as may be mutually agreed upon between the group or individual policyholder and the insurer. 

Other News 

          The healthcare provider credentialing bills, HB 356 and SB 131, are still in the hall’s discussions.  These bills would allow physicians to submit their core data relating to their credentials to a credential verification organization.  Many believe that the hospitals have negotiated their way out of these pieces of legislation and now only managed care plans are left in the bills.  The bill also does not require that the credential verification organization be accredited by all three major healthcare accrediting organizations – it would allow the entity to be accredited by one.  Thus, if a provider such as a hospital had JACHO accreditation but the credential verification organization ("CVO") entity was NCQA accredited, the provider's use of the CVO might not satisfy its own accreditation standards.  (HB 356 was heard in the full Health and Ecology Committee on February 14, 2001 and passed 14 to 1.)