February 16, 2004

For more information contact:

Stanley S. Jones, Jr.

404-817-6133

Jeffrey C. Baxter

404-817-6247

Helen L. Sloat

404-817-6170

February 16, 2004

          On the minds today of most long-serving Legislators and lobbyists' was former Speaker Tom Murphy.  Speaker Murphy fell ill over the weekend after having a pacemaker inserted last week.  Early this morning, he suffered a stroke and was at Piedmont Hospital in Atlanta.  Majority Leader Jimmy Skipper led House Members in a prayer Monday afternoon that Speaker Murphy would overcome this difficulty. 

          It was Alpha Kappa Alpha Day at the Capitol and a group of more 200 sorority sisters were at the Capitol.  Sisters in the Legislative Houses include:  Sen. Horacena Tate; Rep. Alisha Thomas Morgan; Rep. Carolyn Hugley; and Rep. Nikki Randall. 

Floor News 

          On the Senate side, SR 595 was the topic of debate this Monday; the debate lasted for hours.  SR 595 has received a good bit of discussion in the halls as it proposes the "Defense of Marriage Act" and would propose a Constitutional Amendment to Article I of the State's Constitution by adding a new Section IV:

Paragraph I. Recognition of marriage. (a) This state shall recognize as marriage only the union of man and woman.  Marriages between persons of the same sex are prohibited in this state.  (b) No union between persons of the same sex shall be recognized by this state as entitled to the benefits of marriage.  This state shall not give effect to any public act, record, or judicial proceeding of any other state or jurisdiction respecting a relationship between persons of the same sex that is treated as a marriage under the laws of such other state or jurisdiction.  The courts of this state shall have no jurisdiction to grant a divorce or separate maintenance with respect to any such relationship or otherwise to consider or rule on any of the parties' respective rights arising as a result of or in connection with such relationship.

          Numerous Senators took the Well to voice their opinions on this controversial issue, including beliefs regarding the Ten Commandments and views on adultery. There were several amendments proposed and failed including one by Sen. Zamarripa, who proposed to allow "civil unions" of persons of the same sex.  In the end, the Resolution cleared by a vote of 40 to 14.

A couple of bills on the House Calendar to assist State employees' retirement programs were passed.  Previously, some of this state's African-American police officers were denied membership in the Peace Officers' Annuity and Benefit Fund.  In 1976, African-Americans were allowed to participate in this fund.  However, HB 1027 proposes to allow any police officer, regardless of race, to buy back their credible years of service prior to 1976.  This would be available to current members in the retirement system, who must give notice that they wish to make this "purchase" prior to December 31, 2004.  Thus, retirees are not included in the bill's language.  Those persons desiring to purchase time must provide proof of credible service for the period in question.  Costs for the buyback would be $10 per month of credible service purchased.  HB 1027 cleared the House by a vote of 162 to 3.

House Members also passed HB 480 by a unanimous vote.  This proposes allowing Georgia's State Employees Retirement System ("System") to purchase up to three years of credible service toward their retirement.  Those employees wishing to exercise this option must apply to do so at the same time they are petitioning to begin their retirement.  Employees would be responsible for the full actuarial cost of the additional years; thus, there would be no additional costs to the State or this System.  The purchase of credible service years would not be permitted to allow a person to "vest" in the System.

HB 1170 also passed out of the House which proposes that persons whose property tax debt which has been sold to a private interest could find it easier to contact the holder of their debt.  This bill came about due to concern that out-of-state entities were purchasing tax sale properties in Georgia.  There have been a number of instances where property owners have found it cumbersome to contact these companies in order to pay back taxes and redeem their property.  There were also problems with getting releases filed once the debts had been satisfied.  HB 1170 proposes two things: 1) investors would be required to submit a quitclaim deed to the property owner within 15 days of payment; and 2) and investors from out of state will be required to maintain an office in the State (if they purchase, at minimum, twenty properties from tax sales within a county on an annual basis).  HB 1170 passed by a vote of 132-36.

Rep. Jamieson's amendment to the Hospital Lien Law also passed out of the House by a vote of 165 to zero.  HB 1303 proposes that hospitals and traumatic burn centers must notify a former patient at least 30 days prior to filing such a lien.

HB 1174 also passed out of the House by a vote of 165 to 1.  This bill, dealing with the manufactured home industry, adopts safety and enforcement guidelines which the United States Congress recently passed governing the manufacture of prefabricated homes in the United States.  All states were required to adopt such guidelines and failure to do so would mean that such manufacturing would be under the jurisdiction of the federal department of Housing and Urban Development.  HB 1174 proposes that the State's Insurance Commissioner provide enforcement and regulation over the manufactured home industry in Georgia.  The Commissioner would follow standards set forth in the federal "1974 National Manufactured Housing construction and Safety Standard Act."  There are requirements to inspect home manufacturing facilities and products produced, and levy fines against those companies whose manufactured homes fail safety inspections.  The Department of Insurance would also be required to develop and operate a dispute resolution system for Georgia's manufactured home industry.  Any costs associated with this regulation would be borne by the manufactured home industry through licensing and inspection fees.

The House also passed HB 1278 unanimously which deals with the assignment of guardianship for a minor or incompetent person receiving workers compensation awards. Currently, only the State Probate Court may appoint a guardian in such cases.  This measure proposes to allow any court having competent jurisdiction over the beneficiary; this would include allowing an out-of-state court the ability to appoint a guardian should one be needed.

New Legislation

SB 510 – Sen. Harp and others proposed this measure amending Article 1 of Chapter 8 of Title 50 to require that the Dept. of Community Affairs investigate and refer for prosecution cases of Section 8 House Fraud and Abuse.  This bill has been sent to the Senate Judiciary Committee.

SB 513 – Sens. Balfour and others have proposed a change to Chapter 12 of Title 31 to provide for revisions regarding the sale or dispensing of contact lenses so that lenses may only be sold or dispensed by licensed providers in Georgia.  This bill has been forwarded to the Senate Health and Human Services Committee.

SB 517 – Sens. Preston Smith and others are carrying Governor Perdue's ethics bill amending Chapter 5 of Title 21 and Titles 36, 42, and 45.  It has comprehensive revisions governing ethics; conflicts of interest; definition changes; issuance of advisory opinions by the State Ethics Commission; revisions relating to the Governor's appointment powers; etc.  This bill has been referred to the Senate Ethics Committee.

SB 518 – Sen. Harp and others have proposed changes to Georgia's Civil Practice Act in Article 8 of Chapter 11 of Title 9 to provide for an offer of judgment, including time limitations, methods of service, withdrawal and acceptance of offers, admissibility of an offer, and court costs.  This bill was forwarded to the Senate Judiciary Committee.

SR 769 – Sens. Starr and Seay have proposed a Joint Study Committee on Tobacco Tax Evasion to look at legitimate Georgia wholesalers who are losing millions of dollars in sales to other States such as Florida and causing a loss of jobs in Georgia.  Such loss has increased with the increase on taxes for cigars and the imposition of taxes on smokeless tobacco.

HB 1478 – Rep. Dodson and others have proposed a bill similar to SB 145 so that a health maintenance organization which owns and operates a Georgia licensed pharmacy may distribute refills of prescription drugs by mail or other common carrier for its enrollees.  This proposed change would be inserted in O.C.G.A. § 33-30-4.3(e).  This would not be a requirement for such enrollees as they could also refill their prescription drugs in the pharmacies in person.  The bill has been referred to the House Insurance Committee.

HB 1479 – Rep. Mosby and others have proposed amending O.C.G.A. § 44-13-100 concerning property which will be exempt from seizure for the purposes of bankruptcy.  It increases the homestead exemption for a debtor's residence:

The debtor's aggregate interest, not to exceed $25,000.00 (currently, this is $10,000) in value, in real property or personal property that the debtor or a dependent of the debtor uses as a residence or in a cooperative that owns property that the debtor or a dependent of the debtor uses as a residence.  In the event title to property used for the exemption provided under this paragraph is in one of two spouses who is a debtor, the amount of the exemption hereunder shall be $50,000.00 (currently, this is $20,000).

HB 1484 – Reps. Bordeaux and Campbell have authored this amendment to Article 5 of Chapter 12 of Title 15 to change provisions relating to the challenges for cause pertaining to juries and to change provisions relating to challenges for cause in civil cases and change provisions relating to questions on voir dire and setting aside jurors for cause.  Specifically, it changes O.C.G.A. § 15-12-134:

In all civil cases it shall be good cause of challenge that a juror has expressed an opinion as to which party ought to prevail or that he or she has a wish or desire as to which shall succeed.  It shall also be good cause of challenge that a juror has had a confidential relationship with a party to the extent that admissions and communications between them would be excluded on grounds of public policy as recognized in Code Section 24-9-21, 24-9-22, or 24-9-24.  Upon challenge made by either party upon any of these grounds, it shall be the duty of the court to hear the competent evidence respecting the challenge as shall be submitted by either party, the juror being a competent witness.  The court shall determine the challenge according to the opinion it entertains of the evidence adduced thereon.

          It also adds a challenge for cause in O.C.G.A. § 15-12-163(b)(7):

That the juror has been involved in a confidential relationship with the defendant or the state to the extent that admissions and communications between them would be excluded on grounds of public policy as recognized in Code Section 24-9-21, 24-9-22, or 24-9-24.

[Current law is the following may be made as objections to a potential juror: 1) juror is not a citizen or resident of the county; 2) juror is under 18 years of age; 3) juror is incompetent to serve because of mental illness or mental retardation or the juror is intoxicated; 4) juror is near kin of prosecutor, the accused, or the victim; 5) juror has been convicted of a felony in a federal court or any court of a state in the United States and the juror's civil rights have not been restored; and 6) juror is unable to communicate in the English language.]

HR 1287 – Rep. Drenner has proposed this Resolution so that Georgia may recognize National Eating Disorders Awareness Week for February 22 – 29, 2004.  The Resolution notes that there are estimates that 8 million Americans suffer from eating disorders which may lead to more significant health problems, including death.

HR 1307 – Rep. Manning and others have offered this Resolution urging and requesting the Depts. of Human Resources and Community Health to take certain actions with respect to "certain services for people with certain disabilities."  The trend has been to send less persons to institutional care and provide more persons with home- and community-based services so that persons with developmental disabilities and physical disabilities may receive the necessary support and live independently in their communities.  In 2004, there are approximately 5,000 persons with developmental disabilities or physical disabilities on waiting lists for these home- and community-based services.  The Resolution proposes to "unlock the waiting lists."

HR 1309 – Rep. Bannister and others have proposed a Joint Study Committee on Tobacco Tax Evasion to also look at the growing problem in Georgia with untaxed cigar and smokeless tobacco being brought into Georgia.  This is similar to the Resolution proposed in SR 769.  It would be composed of 12 persons with five appointed by the Senate Committee on Assignments; five appointed by the Speaker; one person appointed by the Governor; and one person appointed by the Commissioner of Revenue.

HR 1312 – Rep. Thomas and others have proposed this Resolution "expressing support for the establishment of the Bringing America Home Act, which is a comprehensive bill to end homelessness that addresses issues of affordable housing, livable income, civil rights protections, and healthcare for all."  This is HR 2897 pending in the 108th Congress.

Committee News

          The House Insurance Subcommittee on HB 806 and HB 1302 met this morning to hear both sides relating to these pieces of legislation sponsored by Rep. Mike Barnes and Rep. John Lunsford, respectively.  Both bills propose to allow small employers flexibility and choice in providing a health insurance product to their employees.  HB 806 proposes a new Chapter 59 for Title 33 to enact the Georgia Consumer Choice of Benefits Health Insurance Plan Act and would impact employer groups with 50 or fewer employees:

O.C.G.A. § 33-59-4
Notwithstanding any other provision of law and from and after July 1, 2003:
(1) In addition to offering within this state group accident and sickness policies or contracts that must contain state mandated health benefits, any insurer authorized to transact business in this state shall be authorized to offer through a licensed agent or agency, as an option, one or more group health benefit plans which, either in whole or in part, do not provide state mandated health benefits; and
(2) In addition to offering within this state individual accident and sickness policies or contracts that must contain state mandated health benefits, any insurer authorized to transact business in this state shall be authorized to offer through a licensed agent or agency, as an option, one or more individual health benefit plans which, either in whole or in part, do not provide state mandated health benefits.

O.C.G.A. § 33-59-5
In each sale of accident and sickness policies or contracts in which the proposed group or individual policyholder has chosen a health benefits plan which, either in whole or in part, does not provide state mandated health benefits, the insurer shall:
(1) Provide to the proposed group or individual policyholder a written notice at the beginning of the written application for the health benefits plan the following language in bold type:
'You have the option to choose this Consumer Choice of Benefits Health Insurance Plan which, either in whole or in part, does not provide state mandated health benefits normally required in accident and sickness insurance policies in Georgia.  This health benefits plan may provide a more affordable health insurance policy for you, although, at the same time, it may provide you with fewer health benefits than those normally included as state mandated health benefits in policies in Georgia.  If you choose this option, please consult with your insurance agent to discover which state mandated health benefits are excluded in this policy.';
(2) Provide a form to be signed by the proposed group policyholder and each proposed insured under the group policy in the case of group insurance and the individual policyholder in the case of individual insurance acknowledging that the health benefits plan being purchased by the group or individual policyholder does not provide the state mandated health benefits listed on the form; and
(3) Maintain the signed acknowledgment forms to provide information as may be needed by the Commissioner of Insurance.

          HB 1302 does not limit this to those with 50 or fewer employees but would enact the Small Business Employee Choice of Benefits Health Insurance Plan. 

          There were a number of entities testifying at this hearing.  Advocates from the American Cancer Society, Women's Policy group, St. Joseph's Hospital, Licensed Professional Counselors of Georgia, and others testified in opposition to the bills.  Many claimed that years had been spent imposing the insurance mandates for treatments/coverages for things such as breast cancer, colorectal cancer screening, contraceptives, etc.  Many claimed these proposals would only worsen the care for women who were "not at the table when decisions were made" on what health insurance coverage was to be offered/purchased.  Some indicated that this was "illusion of consumer choice."  These bills would only undermine the efforts made to date which require health insurers to cover such.  Many testified that stripping away such coverage would only shift costs.  Thus, many felt the bills would not help get more insurance coverage for the uninsured in Georgia.  Kirk McGhee, with the Georgia Association of Health Plans, Michael Wardrip, with the Georgia Association of Health Underwriters, and Melody Harrison, with NFIB, testified in support of the bills claiming that the bills would allow health insurers and agents to assist employers with making an additional insurance offering to employees who might not otherwise purchase coverage.  The goal is not to eliminate the health mandates but give an insurance option which may be more affordable to small employers.

          After a good bit of testimony, Rep. Keen, chair of the Subcommittee, stated that it appeared that this was an access to healthcare issue and a cost issue.  He asked the bills' authors if they could discuss their bills and come up with one bill to move forward.  Thus, this Subcommittee will meet again to go over a combined proposal.  A bill is also pending to review all mandates and mandate proposals before any new ones may be enacted.  Passage of this bill may be the final result of consideration of the several anti-mandate proposals.

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

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