February 9, 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 9, 2004

          Legislators returned to the Chambers around mid-day to work on legislation.  Many were discussing the various tort reform measures having been introduced. There are several groups of House bills now,  facetiously deemed by some  the Westmoreland series, the Leadership series, and the Coalition series. The groups overlap some, with common interest in frivolous litigation standards, expert witness standards, and some insurance reforms, but disagreeing on emergency room liability, apportionment of fault, and caps on non economic damages. 

Floor News

In an effort to help some of “their own,” the House passed today HB 498 which will allow persons who are employed as temporary full-time workers to participate in the State Employees Retirement System.  Specifically, this would allow those persons who assist the General Assembly during the time the General Assembly is in Session as most of these folks do not work year round.  Rather, they work only while the General Assembly is in Session.  If persons wish want to participate, they must enroll in the System by the end of this year.  The employee would be responsible for their contribution.   In a time of rising costs, Legislators were concerned about the “fiscal note” on the legislation, which is proposed to cost the State around $4,000 the first year.  The General Assembly passed the bill unanimously.

Used car dealers were also on the agenda today - HB 585 deals with surety bonds for used car sales.  The bonds are to help recover losses, should the dealer fail to meet contractual obligations.  These bonds are currently $20,000 annually.  HB increases the bond amount for dealers selling more than ten cars per month to a $30,000 bond. Those who sell more than 25 used cars monthly  would be required to pay a $50,000 surety bond.   The House passed this by a vote of 155 to 12.

Rep. Childers’ bill, HB 1266, passed by a vote of 172 to 1. It removes the sunset provision on the Renal Dialysis Advisory Council. This Council was created to advise the Department of Community Health on kidney dialysis providers and associated machinery by giving its input on licensing, inspecting, operating and regulating.

The Senate had a healthy agenda of items today including designating names of roads and bridges.  HB 709, Rep. Ashe’s bill on local sales taxes, cleared the Senate.  Among its provisions include: certain exemptions; changes to provisions regarding the joint county and municipal sales and use tax and provisions for an optional rate increase to 2% with respect to imposition by certain consolidated governments; to provide for imposition of such tax at the rate of 2%  by consolidated governments; provisions for procedures, conditions, and limitations on such; provisions for reduction or termination of such tax; provisions for levying and collecting of a court ordered storm-water and waste-water systems capital outlay or repair projects sales and use tax; provisions for powers, duties, and authority of municipal governing authorities with respect to such tax as well as those powers, duties, and authorities of the state revenue commissioner with respect to such tax; collection and administration of such tax; etc. The Senate also heard HB 1207, the bill dealing with supplemental appropriations and the revenue shortfall and mid-year adjustment reserve.  This bill also passed.

New Legislation 

HB 1050 – Rep. Royal and others have proposed amending O.C.G.A. § 10-13A-4(a.1) to provide additional requirements with respect to including or retention of participating manufacturers in the tobacco product manufacturer directory (this states that the Attorney General shall not include or retain in such directory the name or brand families of any participating manufacturer that has failed, for a period of 30 days or more, to make all required payments to Georgia per the Master Settlement Agreement or that the Attorney General determines is not in compliance with such Agreement, unless the Attorney General has determined that such violation has been cured the Attorney General’s satisfaction). 

HB 1404 – Rep. Channell has another bill dealing with Article 3 of Chapter 13 of Title 48 concerning excise taxes on rooms, lodgings, and accommodations.  This establishes compliance audits and a performance review board.  This board will be appointed by  Dept. of Community Affairs.  The Dept. of Revenue would have the responsibility to impose penalties for violations of the use of such taxes.  See HB 1415 below. 

HB 1405 – Rep. Royal has proposed amending O.C.G.A. § 48-7-31 concerning allocation and apportionment of income with respect to income taxation: 

          “(1) Where the net business income of the corporation is derived principally from the manufacture, production, or sale of tangible personal property, the portion of the net income therefrom attributable to property owned or business done within this state shall be taken to be the portion arrived at by application of the following:
 (A) Gross receipts factor. The gross receipts factor is a fraction, the numerator of which is the total gross receipts from business done within this state during the tax period and the denominator of which is the total gross receipts from business done everywhere during the tax period. For the purposes of this subparagraph, receipts shall be deemed to have been derived from business done within this state only if the receipts are received from products shipped to customers in this state or products delivered within this state to customers. In determining the gross receipts within this state, receipts from sales negotiated or effected through offices of the taxpayer outside this state and delivered from storage in this state to customers outside this state shall be excluded; and
 (B) Apportionment formula. The net income of the corporation shall be apportioned to this state according to such gross receipts factor;
(2) Except as otherwise provided in paragraph (2.1) or (2.2) of this subsection, where the net business income is derived principally from business other than the manufacture, production, or sale of tangible personal property, the net business income of the corporation shall be arrived at by application of the following:
 (A) Gross receipts factor. The gross receipts factor is a fraction, the numerator of which is the total gross receipts from business done within this state during the tax period and the denominator of which is the total gross receipts from business done everywhere during the tax period. Gross receipts are in this state if the receipts are derived from customers within this state or if the receipts are otherwise attributable to this state’s marketplace; and
 (B) Apportionment formula. The net income of the corporation shall be apportioned to this state according to such gross receipts factor.

HB 1410 – Rep. Hembree and others have proposed amending Chapter 7 of Title 48 to provide for an exclusion from State income taxation with respect to certain organ donation expenses.    An amount to the actual amount expended for organ donation expenses not to exceed the amount of $10,000 incurred in accordance with the National Organ Procurement Act.”  To qualify, a taxpayer must, while living, donate all or part of such person’s liver, pancreas, kidney, intestine, lung, or bone marrow.

HB 1411 – Rep. Franklin has proposed an amendment to Article 4 of Chapter 3 of Title 50 to provide that state agencies, counties, municipal corporations, and political subdivisions shall be prohibited from using or printing official documents and forms or from transacting business in languages other than English.  These provisions will not apply when in conflict with federal law.

HB 1412 – Rep. Borders has again offered a sales tax holiday for school supplies, clothing, footwear, computers, and computer related accessories for the time of July 29, 2004 at 12:01 a.m. through and concluding on August 1, 2004 at midnight.  It also adds a new subparagraph to deal with “noncommercial purchases of general articles and supplies to be utilized for college and dormitory living” so that would include compact refrigerators of 3/5 cubic feet or less; microwave ovens of 25 inches or less; television combination sets (mounts and wiring); flashlights; batteries; bookends; bookcases; fans; alarm clocks; clock radios; thermometers; lamps; laundry bags or baskets and supplies; vacuum cleaners; power strips; extension cords; surge protectors; light bulbs; storage containers and bins; bed risers; carpets; space heaters; etc.  This would be for items with a sales price of $300.00 or less per item. 

HB 1413 – Rep. Borders has another tax proposal for Title 48.  It deals with reporting and paying sales and use taxes and motor fuel taxes.  One provisions states that every person who purchases fuel oils, except those dyed fuel oils as defined in O.C.G.A. § 48-9-2, in quanties of 25 gallons or more, when the fuel oils are used in operating equipment used for non-highway purposes, shall be entitled to a refund of all of the taxes imposed on fuel oils by paragraph (1) of subsection (a) of Code Section 48-9-3 except that no interest shall be paid.  All applications for refunds must be filed with the Commissioner within 18 months from the date of purchase of the gasoline on which the refund is claimed. 

HB 1414 – Rep. Bannister and others are proposing changes to O.C.G.A. § 48-8-121(a) so as to amend the use of proceeds from the special purpose 1% sales and use tax and require annual publication of certain audit information.    Each governing authority of the county and the governing authority must keep records of each and every project for which tax proceeds are used.  The auditor will have to verify and test expenditures.  The governing authority of each local government receiving proceeds from the tax will have to publish the results of the audit in a newspaper of general circulation in the boundaries of that local government. 

HB 1415 – Rep. Channell and others have proposed amending Article 3 of Chapter 13 of Title 48 concerning excise taxes on rooms, lodgings, and accommodations and creation of a performance review board on how such taxes are used.  A similar bill was previously introduced and engrossed but ran into trouble when the Revenue Dept. raised concerns on how this Board was appointed (Revenue Dept. would be making appointments and then impose the penalties when violations were found).  Thus, this bill makes the Dept. of Community Affairs responsible for appointing the Board members.   

HB 1416 – Rep. Lane and others have offered an amendment to Article 1 of Chapter 5 of Title 48 concerning provisions relating to the bona fide conservation use property (not more than 2,000 acres of tangible real property of a single owner for the primary purpose of farming or commercial production) and changing provisions relating to such property, residential transitional property, application procedures, penalties for breach of covenant, classification on tax digest, and the annual report.  It also proposes to expressly include property devoted to production of wildlife by maintaining wildlife habitat within the meaning of bona fide conservation use property. 

HB 1417 – Rep. Howard has proposed amending the Georgia Medical Assistance Act of 1977 to prohibit discrimination by the Dept. of Community Health on the basis of the age of a recipient of medical assistance in determining whether to pay for medical helicopter transportation for recipient of medical assistance.   This would be designated such in O.C.G.A. § 49-4-158. 

HB 1419 – Rep. Stephenson and others have dropped this change to Title 51 relating to limited liability for healthcare providers for the treatment of certain emergency conditions under certain circumstances.  This provides immunity for hospitals that have independent contractor relationships with physicians.  This bill has been referred to the House Judiciary Committee. 

HB 1420 – Rep. Royal and others have proposed providing standards in admitting expert witness testimony in professional malpractice actions, amending O.C.G.A. § 24-9-67.  The bill has been referred to the House Judiciary Committee. 

HB 1421 – Rep. Channell’s bill governing joint trespassers and providing for the apportionment of damages in tort actions has now been forwarded to the House Judiciary Committee. 

HB 1422 – Rep. Dodson’s bill amending Title 41 to place caps on non-economic damages in tort cases involving medical malpractice and an action for wrongful death has been assigned to the House Judiciary Committee. 

HR 1187 – Rep. Mills and others are urging the United States Congress to enact lifetime and retirement savings accounts.   Such will allow Americans to contribute up to $7,500 annually and make a penalty-free withdrawals after age 58. 

HR 1189 – Rep. Mills is proposing a Constitutional Amendment to provide for a special license plate promoting organ and tissue donation organizations so that revenue derived from the sales of such can be deposited into an account for supporting these organizations.  This would be proposed for Article III, Section IX, Paragraph VI. 

HR 1193 – Rep. Heckstall has offered this with some colleagues to address smoking in the House Chamber and anterooms.  This would propose that the House Rules actually be amended, specifically Rule 13, so as to 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 conservation, and inappropriate dress.  The members of the House shall refrain from private conservations 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 (currently, it is allowed on the south anteroom) 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. 

HR 1194 – Rep. Franklin and others have proposed this Resolution urging the United States Congress to withdraw the United States’ membership from the United Nations “so that the United States may retain its sovereignty and control over its own funds and military forces.” 

SB 492 – Bingo anyone?  Again, there are bills this year governing bingo games.  Sens. Starr and others have proposed amending O.C.G.A. § 16-12-53 to provide that members of one or more auxiliaries of a licensed bingo operator may assist the operation of bingo games.  The members of the licensed organization may assist in the bingo games of its auxiliaries as well. 

SB 492 – Sens. Kemp and Johnson are proposing changes to the Liberty County Hospital Authority.  One of three eligible persons, who are submitted by the governing authority of Liberty County, would be selected.  If the board declines to select any person, it then must notify the governing authority of Liberty County.  After this notice is received that the board declined to name one of the persons, the governing authority must submit a second list of names of three eligible persons (no one of whom was named on the first list). The board would then pick from this second list. 

SB 495 – Sens. Starr, Johnson, and Meyer von Bremen have authored an amendment to Chapter 4 of Title 34, Georgia Minimum Wage Law, to preempt certain wage and employment benefit mandates by local government entities.   “Wage or employment benefit mandate” means any requirement adopted by a local government entity which requires an employer to pay any or all of its employees a wage rate or provide employment benefits not otherwise required under this Code or federal law.    The bill states that any and all wage or employment benefit mandates adopted by any local government entity are hereby preempted.  There are exceptions to this prohibition outlined so that such would not apply to a local government entity from adopting, maintaining, or enforcing through a collective bargaining agreement or other means a minimum wage requirement governing compensation paid by that local government entity to employees of that local government entity; or applying to a collective bargaining agreement negotiated between a local government entity and the bargaining representative of the employees of the local government entity. 

Committee News 

          The Senate Health and Human Services Committee’s Subcommittee on SB 376 met this morning to discuss the Advanced Practice Registered Nurse (“APRNs”) bill introduced by Sen. Balfour.  This Subcommittee, made up of Sens. Butler, Unterman and Balfour, heard various concerns regarding the bill.  The Medical Association of Georgia (“MAG”) even proposed their own substitute to the bill – citing issues with the scope of practice and lack of oversight in the current Legislative draft.  MAG implied that that there would be too much “independence” by these nurses.   MAG also wished to see the collaborative practice agreement, which nurses and doctors have to enter into in order for nurses to be allowed to practice and have prescriptive rights, be agreed to by both the nurses and doctors.  The current proposal does not require that both parties  execute the agreement.  There were a number of concerns raised by physicians that nurses could go out on their own and form a group and then hire a physician to enter a collaborative practice agreement with them.  Nurses stated that was currently done – sometimes in rural areas of the State.  MAG wished to tighten such provisions and require that nurses could not form their own clinics.  The Georgia Association of Health Plans (“GAHP”) also offered input in the bill and did not weigh in on the “prescriptive authority” at issue.  Rather, this group raised concerns with the discrimination and participation in health plan networks that the bill currently proposes.   The GAHP wishes to promote APRNs; the legislation as written may actually limit such.  The Georgia Hospital Association (“GHA”) also took issue with the bill asking if CRNAs were included and inquiries relating to the semi-annual quality assurance required in the bill.  GHA also had concerns regarding the contracting provisions in the bill.  The nurses in favor of the legislation felt that it was imperative that they continue to be able to group together and perform services and hire a physician to help with their collaborative practice agreements; it is currently done.  To change that would basically defeat the bill.  Nurses also agreed that they could live with the proposed elimination of the contracting provisions in the current draft.  The bill was not “passed” out of this Subcommittee; changes and ideas were to be transcribed. 

          The full Senate Health and Human Services Committee met this afternoon and passed out HB 183, Rep. Ron Borders’ legislation introduced in 2003 to deal with eye tattoos.  No changes were made to the bill.  The bill amends O.C.G.A. § 16-12-5.  “Tattoo” is defined as “to mark or color the skin of any person by pricking in, inserting, or implanting pigments.”  The bill proposes to make it unlawful “for any person, except a physician or osteopath licensed under Chapter 34 of Title 43 or a person acting under the general supervision of such licensed physician or osteopath who is located within the facility or an adjacent facility where the procedure is being performed at the time the procedure is being performed, to tattoo the body of any person within any area within one inch of the nearest part of the eye socket of such person.”  Violations of this would make that person guilty of a misdemeanor for a first offense and shall, upon a subsequent violation, be guilty of a misdemeanor of a high and aggravated nature.  The bill now moves to the Senate Rules Committee.

           HB 1303 also cleared the House Health and Human Services Committee’s Healthcare Facilities Subcommittee.  This bill by Rep. Jamieson amends the law governing hospital liens relating to perfection of such liens for hospitals, nursing homes and traumatic burn care medical practices.  A change was made governing the timing of filing these liens and the prior notice to debtor of the liens. The original draft bill required 15 days; the amendment moves this to 30 days.  This legislation will now move to the full Committee for its review.  The proposal still requires a 30 day notice prior to filing to the patient and, to the best of the claimant’s knowledge, the persons, firms, corporations, and their insurers claimed by the injured person or the legal representative of the injured person to be liable for damages arising from the injuries and shall include in such notice a statement that the lien is not a lien against the patient or any other property or assets of the patient and is not evidence of the patient’s failure to pay a debt.  The notice must be sent to interested parties by first-class and certified mail or statutory overnight delivery, return receipt requested. 

Other News 

          Tomorrow morning there will be a hearing on the “living wage” legislation, HB 1258.  This hearing will be a House Industrial Relations Subcommittee held at 9:00 a.m. in room 514 of the Legislative Office Building.   Also, the House Appropriations Committee’s Subcommittee on the Department of Community Health will hear from interested parties on the FY 2004 Supplemental and FY 2005 Budgets tomorrow (Tuesday) afternoon.  This is a follow up hearing from last week to allow folks an opportunity to make their respective cases for budget items.   

          The Senate Rules Committee will also hear more about the Constitutional Amendment on the ban on gay marriages on Wednesday morning. 

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

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