March 25, 2004

For more information contact:

Stanley S. Jones, Jr.

404-817-6133

March 25, 2004    

          The biggest news was tort reform, or actually the lack thereof.  At the end of the day, the Senate, in a strategic move, passed a motion to adjourn so that it would not continue to debate the issue in HB 1028.  This action was seen by some lobbyists as another victory by the Georgia Trial Lawyers Association.   

          One amusing sight today was Georgia Trial Lawyers Association Lobbyist, Bill Clark, huddled behind a large bulletin board by the stairwell between the third and fourth floors in the Capitol with as many as twenty-five trial lawyers in a huddle.  The "Coach" appeared to be plotting, successfully, with his "Team" for the fourth quarter and the last defensive move for the day.  

          The second biggest news was that the Senate passed out its version of the FY 2005 Budget.  This will place SB 1181 in Conference Committee this weekend to begin negotiations on how Conferees will wrestle the differences between the Governor's, the House's, and the Senate's ideas. 

Floor News 

          The House had several bills on its agenda.  It did agree to name a portion of highway in Coweta County the Alan Jackson Highway by passing SR 781.

House Members also passed legislation which would force film "pirates" to face the consequences.  The Motion Picture Association of America provided estimates that the industry loses approximately $ 3.5 billion annually to film pirates who sneak video recording devices into theaters showing newly released movies.  They make copies of these and then sell them on the "black market."  SB 439 creates a criminal misdemeanor charge for such behavior if a person is found guilty.  The legislation passed by a vote of 156 to zero.

The House also passed SB 489, which does three things: 1) allows the Department of Transportation's ("DOT") HERO units, which aid drivers with breakdowns, etc. to be designated by the Department of Public Safety as emergency vehicles; 2) clears up language governing buses and the use of High Occupancy Vehicle (HOV) lanes; and 3) enables the DOT to begin investigating and establishing the mechanism by which High Occupancy Toll (HOT) lanes can be established on Georgia's roadways.  SB 489 passed by a vote of 160 to zero.

          SB 243 also passed the House.  This legislation puts in place a unified incident command system and additional training required for emergency response personnel.  Much of this proposal was done due to issues which came about after 9/11.  The legislation also mandates that State agencies and authorities prepare an agency safety plan to address the threat of terrorism, and to respond to acts of terror or violence, natural disasters, hazardous material spills, or radiological accidents.  A unified plan is necessary in order for Georgia to get federal monies.  The bill passed by a vote of 163 to zero.

The House also passed by a vote of 158 to zero SB 449 which seeks to deem all current Registered Public Accountants as CPAs and eliminate the RPA classification in Georgia.  The House added an amendment to require the State Cosmetology Board to administer the cosmetology qualification exam to inmates who have successfully completed the course to become certified cosmetologists.

SB 535 passed by a vote of 166 to zero.  It proposes to extend the sunset provision on the State Commission on Family Violence to 2010.

The House also agreed to pass SB 555 by a vote of 165 to three.  This bill amends Georgia's Nonprofit Corporate Code to allow for electronic transmission and makes other "clean up" provisions in the Code.  Such electronic transmissions are permitted for stockholder and other type of corporate filings. 

On the Senate side, the Georgia Coalition for Civil Justice placed on the desks of Legislators a memorandum regarding HB 1028.  It urged Senators to take a step forward and pass meaningful tort reform initiatives as contained in the bill.  The Coalition cited fairness reasons for the changes and the need for help to keep Georgia's emergency rooms open.  The bill establishes an insurance fund and has provisions relating to vicarious liability, expert witnesses, and limiting joint and several liability for medical providers. 

          Sen. Chuck Clay moved that the Senate insist on the Senate Substitute to HB 869, the bill relating to the Indigent Defense Funding Formula.  The Senate insisted.  Later, a Conference Committee was appointed to look further at this issue.  Conferees will be Sens. Balfour, Clay, and Hall. 

          HB 1181 passed the Senate late today without any amendments although nineteen were proposed originally.  Many of those amendments were withdrawn.  Amendments which actually voted upon, and failed, related to things such as adult literacy; Dept. of Agriculture and its office of consumer affairs; tertiary care centers funding; Chattahoochee Commission funding; monies for the Morehouse School of Medicine; Secretary of State Office expenses for Reapportionment; library funding for certain counties; teacher salary raises and QBE formula; ovarian cancer research funding; monies for Central State Hospital; funding for Ft. Discovery; and money for the Albany Design Technology Institute. 

Budget Overview: 

• The Senate proposed a total funding of $16.4 million to be used.  The Governor had proposed $16,125,208,162; and the House had proposed $16,215,522,162.  The Senate added some extra monies through the Surplus of the current year ($232,250) and HB 869 Court Fees ($57,740,000), assuming the Legislation passes and is signed into law.

• The Republican Senate really "dinged" more of its side of the hall in an effort to come up with more monies for what it wished to accomplish.

  • Senate Staff and Research got cut $65,000

  • Lt. Governor's Office got cut $65,000

  • Secretary of the Senate got cut $15,500

• Items in play within the Dept. of Community Health:

  • The proposal to implement a fixed fee reimbursement methodology for Ambulatory Surgery Services provided in an outpatient hospital setting.  The Governor had proposed a $9.5 million cut; the House had restored half of this cut to bring it to $4.75 million.  The Senate returned the cut to the Governor's position.

  • The proposal to implement a supplemental drug rebate program for all drug classes and include the Texas Implementation of Medication Algorithms guidelines for treating schizophrenia.  The Governor had proposed that this would save $9.3 million.  The House proposed a savings of $14.8 million.  The Senate found a proposed savings of $12 million.

  • The proposal to increase the Average Wholesale Price discount from 10% to 12%.  The Governor had found that this change would be a savings of $2.3 million.  The House stated that this discount should be changed from 10% to 11% for a savings of $999,162.  The Senate returned to the Governor's position and proposes a savings of $2.3 million.

  • The proposal to implement the federally required Estate Recovery Program to offset the cost of nursing home care.  The Governor stated that this program would save $1.2 million; the House proposed a savings of approximately $2.2 million.  The Senate came up with a savings of $2 million.

  • The proposal to implement a premium payment structure based on income for members covered by PeachCare.  The Governor had proposed this item would save $10.6 million.  The House agreed with the savings amount but had added language that this would be $25 for each child with a family cap of $50 for these premiums.  The Senate came up with a savings of $7.9 million by implementing this but using $25 for each with a cap of $75 for the family premium amount.

  • The proposal to change the eligibility to the month following application (for the PeachCare program with the Dept. developing rules on this).  The House had said no to this idea.  The Senate said yes.  Likewise, the House had proposed that there be no three month lock-out for non-payment of premiums and to the six month for parents voluntarily dropping other healthcare coverage in order to access PeachCare; the Senate said yes that these requirements would be good.

  • The proposal to eliminate coverage for optional services for adults in the Medicaid Orthotics and Prosthetics.  The Governor thought doing this would be a savings of $3.2 million; the House restored some of these monies bringing the cut to $1.6 million.  Meanwhile, the Senate added more monies with the cut being only $1.4 million.

  • The proposal to eliminate coverage for persons with incomes exceeding 185% of the federal poverty level.  Governor Perdue believed that this would be a savings of $17.7 million.  The House moved the percentage of eligibility back to 200% of the federal poverty level so that the "savings" would be $12.8 million in State funds.  The Senate moved the percentage to 195% of the federal poverty level to provide a savings of $14.4 million.

  • The proposal to eliminate 3 positions in the Health Care Regulation and Licensing Certificate of Need program was another issue.  Governor Perdue had wanted this elimination.  The House restored all the monies which would have been saved ($180,900).  The Senate cut the program by $120,000.

  • Mercer and Morehouse Schools of Medicine were also put in play.  The Governor had proposed cuts of $1.15 million and $506,494. respectively.  The House restored some of the monies with cuts of $464,047 and $203,486, respectively.  The Senate cut monies again with each respectively getting cut $742,476 and $325,578.

  • Increases to the State funding for Medicaid benefits are also different.  The Governor had proposed $376 million; the House $286 million; and the Senate $345 million.

  • Both the House and Senate agreed to add monies for the Georgia Partnership for Caring.  The House had proposed $50,000; the Senate $150,000.

  • The House had proposed $600,000 for the Marcus Institute.  Neither the Governor nor Senate had funded this initiative.

  • There was language added to implement a targeted case management program by the Governor.  The House had added that it would use a PPO program.  The Senate disagreed with the use of a PPO program.  Savings projected by the House would be $1.8 million; the Senate found a savings of $1 million without the PPO.

  • The Governor had originally proposed using existing SOURCE sites to provide disease case management.  The House said yes but with a PPO for a savings of $985,946; the Senate had said no PPO program but still a savings of $985,946.

  • The Governor and Senate agreed to increase the maximum out-of-pocket amounts for pharmacy services; the House had said no to that but recommended an increase of 9.6% in the employer contributions rate to partially offset prior 20% increase in the premium rate increase for public school teachers and state employees. 

  • The Governor and Senate agreed that there should be an increase in the discount on Average Wholesale Price on drugs in the PeachCare program from 13% to 14%; the House disagreed with this change.

  • The Governor and Senate also agreed to increase employee contributions for premiums by 10% (for the State Health Benefit Plan).  The House recommended an increase of 9.6% in the employer contributions rate to partially offset the prior 20% increase in the premium rate increase for public school teachers and state employees.

  • The House had also proposed transferring $34 million to agencies from the Department.

          Other bills addressed by the Senate: 

• SR 822 – proposes to create a Joint Study Committee on Aging and Developmental Disabilities

• HB 1238 – this bill by Rep. Royal proposes to create a sales tax exemption for overhead materials used by government contractors

• HB 1239 – this bill proposes changes to sales taxes and refunds

• HB 1437 – this bill, also by Rep. Royal, proposes to amend state and local taxes and uniform sales and use tax administration

• HB 1457 – this amends requirements for vendors when contracting with the State

• HB 1461 – this legislation amends disclosure requirements by the Dept. of Revenue relating to taxpayer records

• HB 1325 – this amends HOPE scholarship law and who may be eligible for those scholarships

Other News 

          Conferees will meet on Sunday, March 28, 2004 at 3:30 p.m. to discuss budget negotiations.  Legislators will return for their 38^th Legislative Day on Wednesday, March 31, 2004.

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

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