After several days of budget hearings, Lawmakers returned to the Capitol for a rainy Day 6 of the Legislative Session.  Despite the cancellation of several Committee meetings, House and Senate members appeared to be more actively pursuing the movement of legislation.  Burke County High School football players could be seen all over the Capitol as they were recognized for winning the Class AAA Championship. 

Legislative News

Senate

The Senate convened just after 10:00 a.m. on Monday morning.  Retired Major Jeff Strueker was the Chaplain of the Day and a video was shown to display his heroic involvement in the Battle of Mogadishu in 1993.  Sen. Bill Cowsert (R-Athens) then presented HB 46 which would repeal the "Uniform Foreign Depositions Act" and replace it with the "Uniform Interstate Depositions and Discovery Act.”  The Bill seeks to establish guidelines for the issuance and service of subpoenas.  Sen. Cowsert asked Senators to agree to the House substitute which includes a reciprocity clause.  Sen. Jason Carter (D-Decatur) asked a question about whether HB 46 would reduce the cost of litigation.  Sen. Cowsert answered that it would.  Sen. Ed Harbison (D-Columbus) then asked a question about the validity of a date within the Bill.  After being put to a vote, HB 46 passed unanimously with a final tally of 48 to zero.  Without objection, the Senate chose to disagree to the House substitute for SB 203.

House

The House session did not start until 1:00 p.m. on Monday.  Members voted on the new adjournment schedule and it passed 162 to zero.  Rep. Ann Purcell (R-Rincon) and Rep. Jon Burns (R-Newington) then invited all House members to attend an event at the Depot this evening to celebrate Effingham County Day.  Chairman John Meadows (R-Calhoun) announced that the House Rules Committee would meet at 2:30 p.m.

New Legislation

HB 728 - Rep. Ed Jasperse (R-Jasper) authored this Bill which would amend O.C.G.A. § 44-5-60 by making it so that any covenant restricting lands to certain uses which was created prior to zoning laws being adopted by a county or municipality would continue to be effective until the expiration of such covenant.  www.legis.ga.gov/legislation/en-US/Display/20112012/HB/728

HB 729 – Rep. David Knight (R-Griffin) submitted this piece of legislation which would define the terms "Internal Revenue Code" and "Internal Revenue Code of 1986" and thereby incorporate certain provisions of the federal law into Georgia law.  It would further amend Title 48 by making it so that certain corporate income tax elections made for federal income tax purposes would also apply for state income tax purposes.  www.legis.ga.gov/legislation/en-US/Display/20112012/HB/729

HB 730 – Rep. Bill Hembree (R-Winston) brought forth this initiative which would change certain contracting and bidding requirements for governmental entities and the Department of Administrative Services related to public works construction contracts.  This Bill would do so by amending O.C.G.A. § 36-91-21 and Article 3 of Chapter 5 of Title 50.  www.legis.ga.gov/legislation/en-US/Display/20112012/HB/730

HB 731 – Rep. Edward Lindsey (R-Atlanta) introduced this Bill which would enact the "Parent Trigger Act" in Chapter 2 of Title 20.  The Bill would give parents of students at low-achieving schools the ability to submit charter petitions to local school boards.  www.legis.ga.gov/legislation/en-US/Display/20112012/HB/731

HB 732 – Rep. Tony McBrayer (R-Tifton) proposed this initiative which would amend O.C.G.A. § 40-2-84 by changing the definition of the term "veteran" to include a member of the armed forces or reserves who is still serving active duty after being awarded the Purple Heart citation.  www.legis.ga.gov/legislation/en-US/Display/20112012/HB/732 

HB 733 – Rep. Dustin Hightower (R-Carrollton) submitted this Bill which would add holdover provisions to Chapter 13 of Title 19.  Specifically, the Bill would add the language, "each member shall serve until the date his or her successor is appointed."  www.legis.ga.gov/legislation/en-US/Display/20112012/HB/733  

HB 734 – Rep. Katie Dempsey (R-Rome) offered this piece of legislation which would amend Chapter 10A of Title 43 by removing "determinations" and replacing it with "diagnoses" within the social work definition.  www.legis.ga.gov/legislation/en-US/Display/20112012/HB/734  

HB 735 – Rep. Roger Bruce (D-Atlanta) authored this Bill which would amend O.C.G.A. § 16-11-129 by requiring training as a prerequisite for a weapons carry license.  www.legis.ga.gov/legislation/en-US/Display/20112012/HB/735 

HB 736 – Rep. Roger Bruce (D-Atlanta) proposed this piece of legislation which would prohibit the use of discretionary clauses in disability insurance contracts in Title 33.  www.legis.ga.gov/legislation/en-US/Display/20112012/HB/736

HB 739 – Rep. Doug McKillip (R-Athens) introduced this initiative which would prohibit a fee for a future conveyance of real property except under limited circumstances.  www.legis.ga.gov/legislation/en-US/Display/20112012/HB/739

HB 743 – Rep. Tom Rice (R-Norcross) submitted this Bill which would extend the expiration date for the exemption from the motor fuel tax for certain public transit and public campus transportation systems.  www.legis.ga.gov/legislation/en-US/Display/20112012/HB/743 

HB 744 – Rep. Edward Lindsey (R-Atlanta) brought forth this piece of legislation which would enact the "Uniform Partition of Heirs Property Act" in Part 2 of Article 7 of Chapter 6 of Title 44.  www.legis.ga.gov/legislation/en-US/Display/20112012/HB/744

HB 745 – Rep. Andrew Welch (R-McDonough) authored this Bill which would require the Department of Public Health to study whether pulse oximetry screening should be a standard test for all newborns for the detection of congenital heart defects in Title 31.  www.legis.ga.gov/legislation/en-US/Display/20112012/HB/745

HB 746 – Rep. Gene Maddox (R-Cairo) offered this initiative which would amend O.C.G.A. § 2-2-9.1 by clarifying the timing of the Commissioner of Agriculture's final decision and decision for reconsideration of the final decision when it comes to hearings for individuals adversely affected.  www.legis.ga.gov/legislation/en-US/Display/20112012/HB/746

HB 747 – Rep. James Beverly (D-Macon) submitted this Bill which would make it so that any census tract having a poverty rate of 45 percent or greater would be deemed to have the same eligibility for tax treatment as tier 1 counties in Title 48.  www.legis.ga.gov/legislation/en-US/Display/20112012/HB/747   

HB 748 – Rep. Buzz Brockway (R-Lawrenceville) introduced this piece of legislation which would amend Titles 19 and 31 by changing provisions regarding the issuance of a copy of an original birth certificate to certain adult persons who were adopted.  www.legis.ga.gov/legislation/en-US/Display/20112012/HB/748

SB 312 – Sen. William Ligon (R-Waverly) brought forth this Bill which would amend Chapter 4 of Title 49 by requiring applicants for food stamps and temporary assistance for needy families to engage in "personal growth activities" (such as pursuing a GED, high school diploma, etc.).  http://www.legis.ga.gov/legislation/en-US/Display/20112012/HB/747

HR 1136 – Rep. Bob Hanner (R-Parrott) proposed this Resolution to recognize January 24, 2012 as Drinking Water Security Day at the Capitol.  www.legis.ga.gov/legislation/en-US/Display/20112012/HR/1136  

HR 1137 – Rep. Andrew Welch (R-McDonough) submitted this piece of legislation to make renewed application to the U.S. Congress to pursue a balanced budget amendment to the Constitution.  www.legis.ga.gov/legislation/en-US/Display/20112012/HR/1137

SR 672 – Sen. John Bulloch (R-Ochlocknee) proposed this Resolution to recognize the American Association of Family and Consumer Sciences.  www.legis.ga.gov/legislation/en-US/Display/20112012/SR/672

SR 673 – Sen. Bill Cowsert (R-Athens) offered this initiative to make renewed application to the U.S. Congress to pursue a balanced budget amendment to the Constitution.  www.legis.ga.gov/legislation/en-US/Display/20112012/SR/673

SR 677 – Sen. Donzella James (D-College Park) authored this Resolution to create the Joint Study Committee on the Preservation of Sapelo Island.  www.legis.ga.gov/legislation/en-US/Display/20112012/SR/677

Committee News

Tuesday

Joint Appropriations Committee

After several opening remarks from Rep. Terry England (R-Auburn) and Sen. Jack Hill (R-Reidsville, Governor Nathan Deal appeared before the Joint Appropriations Committee and proceeded to outline the highlights of his overall budget agenda.  He adamantly stated that there would only be a 0.3% increase in spending.  Ten days would be added to the Pre-K school year and teachers would receive a raise based on age and experience. He also mentioned $4.2 million for residency slots for physicians; $10 million for OneGeorgia for rural development; $10 million for accountability courts; and $3.7 million for school nurses and addressing pupil transportation to schools.  Another idea proposed for schools was an inclusion of $1.6 million for reading mentors to get children reading by the third grade on the third-grade level.  Gov. Deal then spoke about allocating funds to deepen the Savannah harbor.   Gov. Deal outlined ideas as well to address Georgia's burgeoning criminal justice system, including adding $32.5 million for prison beds and $5.7 million for pre-release centers' conversion to substance abuse centers.  He clearly stated that there would be no new taxes.  After a round of applause, Gov. Deal then gave way to Dr. Kenneth Heaghney, a State Fiscal Economist, who presented an overview of fiscal year 2011. 

Dr. Heaghney outlined that Georgia's overall performance exceeded the budget targets.  In all, Georgia has shown growth over the last fiscal year despite December 2011 shortfalls in regards to taxes and other revenues.  Georgia has shown steady growth of between 5-5.5 percent over the last year and one-half and this has shown an increase in spending.  Corporate income tax remains the most volatile in terms of collections due to swings in payments and assessments and is down 17 percent over the first six months of this fiscal year. Dr. Heaghney suggested that there were signs of an improved economy in Georgia even with the housing market decline.  What will hurt Georgia the most is if we experience national or international events which disrupt the economic picture (such as swings in oil pricing or another catastrophic earthquake like Japan experienced last year).   Private employment is better and there have been more than 13,000 jobs added in Georgia over the last two consecutive months.  The revenue estimate was projected at 4.7 percent and is now at 5.2 percent; for FY 2013, he noted that lawmakers should expect a 5 percent revenue growth.  The five-year outlook remains to indicate a slow, steady growth which will not peak until 2015.

At around 11 a.m., Director of the Georgia State Finance and Investment Commission, Ms. Susan Hart Ridley, gave a short presentation on the Georgia's financial outlook for 2012.  She spoke about Georgia's AAA bond rating by all three major rating agencies and emphasized the importance of maintaining it.  Ms. Ridley noted the importance of Georgia's funding its pension system and its OPEB liability in order to retain the bond rating.  Recently, Georgia has not faired well with its debt service percentage of prior year's revenue – it is now at 7 percent which is beyond the planning cap. There is a plan to address this issue with five year $800 general obligation bonds to bring back the debt service at 6 percent which is the rate Georgia has historically held.  Lawmakers inquired about Georgia's unsold bonds from prior years; it was explained that bonds must be sold at an agency's request (sometimes the agency needs matching funds from a local governmental entity and it is waiting on those dollars).

Commissioner of the Department of Revenue, Mr. Doug MacGinnitie, went over the amount of taxes collected in 2011 and the projections for collections in 2012.  His Department is focused on three initiatives at the current time: customer service; achieving efficiencies; and effective compliance. He further reported that the Department has achieved four of its five integrated tax system implementations with the largest conversion the individual tax payer system conversion.  The Department is moving from a paper-based system to an electronic system. Last year, 75 percent of tax returns were filed electronically with refunds taking a matter of days rather than weeks. Paper has caused not only customer service problems but also greater expenses for the Department.  In 2011, the Department mailed out over nine million pieces of mail which also costs a lot for postage.  There were some concerns raised by members about electronic filings as some individuals may not have access to a computer or be able to operate one.  Sen. George Hooks (D-Americus) inquired about the Department's possible collection of on-line sales' taxes for goods purchased via the internet.  Commissioner MacGinnitie explained that part of that issue was a Constitutional problem but that some states have attempted to collect such taxes but their laws are now in the courts.  Rep. Keith Heard (D-Athens) asked in a follow up questions about whether Georgia was a member of the internet compact; Georgia became a member of the Streamlined Sales Tax in August 2011 which has generated between $1.5 and $2 million.

State School Superintendent John Barge presented the current financial state of affairs for the Department of Education. Superintendent Barge explained the expenses to be incurred by moving Georgia towards full implementation of the Common Core Standards.  Originally, it was projected that it would cost $3 million per content area to roll out these standards however only $900,000 has been spent. Georgia's high school graduation is being eliminated and it will now depend on end-of-course testing.  He also spoke about the implementation of the Longitudinal Data System, noting that 95 percent of the local school systems are now on the system (those lagging are the larger, metro-Atlanta systems).  Digital content has improved and more resources are available but Georgia's problem is its infrastructure as only 3mgs are currently available for each school which is not enough.  Overall, the Department had a two percent reduction in all areas except QBE, equalization, and state-run schools.  One of the places where they also did not get cut two percent was the central office – that is in large part with the implementation of HB 186 and the need for IT, help for charter schools, and etc.  He did focus on Non-QBE Formula Grants, stating that there was a "clean up."  Cuts are proposed for Georgia Special Needs Scholarships of $207,020; Sparsity Grants of $53,700; and Residential Treatment Centers of $76,628.  The Special Needs Scholarships funding is not being eliminated but moved to QBE. There was a cut of more than two percent in the Nutrition Program area (in order not to cut central office).

Chancellor Hank Huckaby, of the University System of Georgia, reported that the Board of Regents had accepted the consolidation of colleges to save administrative costs.  Those saved funds could be reinvested on the academic side.  Chancellor Huckaby stated that it was necessary for Georgia to have partnerships to create the workforce the State needs to help with economic recovery (noting a Georgetown University study reflecting that 60 percent of the jobs created require certification or a degree yet Georgia is only at the 42 percent level).  He noted the initiative, Complete College America, and explained that Georgia does have an aggressive plan to make this idea work.  While one billion has been cut from the University System Budget over the last few cycles, Georgia has remained among the top public schools (with the University of Georgia and Georgia Tech).  He did remark that there was a plan to address student fee increases and that there would be a need for a good argument for an increase.  $145 million was added for enrollment growth.  The system has seen 2.1 percent growth with the 318,000 new students.  In FY 2012 Amended, there were $33.9 million in total reductions which carry forward in FY 2013 for a total of $38 million in reductions for FY 2013.  Reductions are in the areas of attrition, part-time faculty position eliminations, travel costs, operating cuts, and fewer library holdings. In explaining changes for the System's health insurance, John Brown noted that there was a 5 percent increase and that participation would be at 70/30 for the system and employee.  Also, the Board of Regents has frozen enrollment in the HMOs.  During the presentation, there was mention of the Ft. McPherson "retro-fit" so that the former base can be turned into a research park (an addition of $4 million was proposed for this research facility which would be a global health initiative).

Commissioner Ron Jackson, of the Technical College System of Georgia, spoke about enrollment of 195,000 and the Quick Start Training program with participation of 98,544. The system in 2011 had its highest number of graduates/awards given.  Quick Start was also described as one of the best programs in Georgia and the number one incentive program for business development.  There are issues with HOPE and the HOPE grants available for the technical college students. 91 percent of the technical college system students on HOPE get the HOPE grant.  Economically disadvantaged students are taking advantage of PELL grants (now there are 104,000 participating in PELL which requires incomes of less than $16,000 for eligibility). The national average for technical college tuition in 2011 was $2,045; Georgia's tuition cost was $2,094.  Commissioner Jackson noted the faculty problem for the schools as they are currently using 71 percent adjunct faculty and only 29 percent of their faculty is full-time – this faculty staffing is troubling to their national accreditation bodies and they cannot sustain the 71 percent adjunct faculty ratio.  He noted that he did not believe that further mergers were possible; it was possible to make some closures for under-utilized facilities with less than 200 FTEs and that had been taken into account in reaching the systems' two percent reduction requested by Gov. Deal.  However, Gov. Deal did include $16.8 million for enrollment growth which was to be used for full-time faculty.

Wednesday

Joint Appropriations Committee

The first presenter at the Joint Appropriations Committee meeting on Wednesday morning was Commissioner Brian Owens of the Department of Corrections.  He started off by suggesting that measures need to taken to reduce the prison population from 107% of capacity to 100%.  This would mean an increase in funding.  He described a plan to rehabilitate a facility in Milledgeville at a cost of $6 million that would help alleviate the overcrowding problem.  When asked a question about the process of moving elderly prisoners to nursing homes, Comm. Owens stated that there had been problems with nursing homes accepting prisoners that had been convicted of violent or sex-oriented crimes.  Several legislators asked questions about the issue with cell phones and other contraband being found at the prisons.  Comm. Owens stated that it continued to be a problem and several solutions were being considered.

Commissioner Chris Cummiskey of the Department of Economic Development was second on the agenda and spoke passionately about the department's efforts to encourage economic growth in the State.  He strongly recommended increased moneys being directed towards deepening the Savannah harbor.  He also thanked legislators for passing legislation that had encouraged the growth of the film industry throughout Georgia.  Sen. George Hooks (D-Americus) asked Comm. Cummiskey a specific question about the removal of $240,000 from the budget which supports a visitors' center in former President Jimmy Carter's hometown of Plains, GA.  Comm. Cummiskey voiced his opinion that he thought the money would be better served to help Georgia create jobs.  Sen. Hooks was also concerned about the lost of the historical markers program throughout the State.  Rep. Penny Houston (R-Nashville) asked a question about how Georgia’s share of the Tobacco Master Settlement Agreement money was being spent to assist the State’s most economically challenged areas.  Comm. Cummiskey said that the OneGeorgia Authority, which was given $1.6 billion to spend in Georgia’s rural counties over the 25-year term of the settlement, was successfully spreading the money around all parts of rural Georgia.  Sen. Tommie Williams (R-Lyons) expressed his thanks to Comm. Cummiskey for his hard work in bringing several companies to Lyons including Chicken of the Sea and US Pet Nutrition.

Commissioner of the Department of Public Safety, Colonel Mark McDonough, then assumed a position at the podium and highlighted changes to the 2012 budget.  He began his presentation by thanking legislators for passing HB 253, which gives him authorization to sell motor vehicles owned by the department.  He then discussed the extensive role that gasoline costs play in his budget. He also mentioned the plan to sell some older aircrafts in order to generate revenue for purchasing new helicopters.  Comm. McDonough further expounded on the transfer of the Public Service Commission and a plan to hire civilians to allow for weigh stations to be open more often.  Sen. Don Balfour then asked a question about HB 253 as to whether the selling of older vehicles could actually save the State money in the long run.

Chief Justice Carol Hunstein of the Georgia Supreme Court then gave her presentation on the budget proposals.  She warned legislators in attendance that future cuts could really create delays in the State court system. She was followed by MG James B. Butterworth, the Adjutant General of the Department of Defense.  He spoke about the importance work that the department had been engaged in regarding youth programs.  Rep. Mike Cheokas (R-Americus) asked a question about whether the Georgia Department of Defense was ready to provide services to soldiers returning to the State after deployments in Iraq and Afghanistan.

After lunch, Interim Commissioner Keith Golden of the Department of Transportation presented his budget to the Committee.  He received numerous questions from legislators about problems that had been voiced by constituents.  Several of the issues related to unfinished projects in rural Georgia, the I-85 Hot Lanes, the status of I-75 expansion, and lack of communication between different divisions within DOT.

Following Mr. Golden was Commissioner Gale Buckner of the Department of Juvenile Justice ("DJJ").  She started her presentation with a brief overview of the community and rehabilitative services that the State provides to youth offenders.  She emphasized the role that education played in getting these youths gainfully engaged in society again.  She then explained several problems with overcrowding at both the Youth Detention Centers ("YDCs") and Regional Youth Detention Centers ("RYDCs").  Comm. Buckner spoke at length about how designated felons are taking up most of the space at the facilities.  These designated felons have usually committed sexual or violent crimes and are required by law to be in the programs for 12 to 16 months.  As a result, beds are full everyday and other youths that have not committed the more serious offenses are left out.  She also illustrated problematic situations that have occurred were employees have been in potentially dangerous situations because they are not equipped to deal with many of the violent offenders.  Comm. Buckner mentioned that the number of youths over the age of 18 had risen from 7% to 38%.  The opening of the new Atlanta Youth Detention Center will add 80 new beds and seek to alleviate the overcrowding issue.  She also spoke about utilizing "smart teams" to institute proactive measures that will get ahead of foreseeable problems.  Apparently, these "smart teams" have worked well in adult facilities.  A question was asked by Rep. Quincy Murphy (D-Augusta) about safety concerns at an Augusta facility after the death of a 19 year old.  Comm. Buckner indicated that the matter was receiving the utmost attention from DJJ.  She was asked a question about what strategies were being employed to prevent further worker's compensation problems that often result after guards are hurt on the job.  Worker's compensation cases are a huge strain on the system.  Sen. Bill Jackson (R-Appling) inquired why youths between 18 and 21 years of age were allowed to be in the program.  Rep. Jon Burns (R-Newington) paid Comm. Buckner a complement for all of her hard work.  She was then asked a question about contraband at the facilities.  According to Comm. Buckner, cell phones and weapons are the biggest problems.  

House Appropriations Education Subcommittee

The House Appropriations Education Subcommittee met on Wednesday afternoon to discuss the 2012 amended budget. Chairman Tom Dickson (R-Cohutta) presided over the discussions with presentations made by the Employees' Retirement System, Teachers' Retirement System, Department of Early Care and Learning, Office of Student Achievement, Professional Standards Commission, and the Department of Education.  Scott Austenson, with the Department of Education, went through the FY 2012 Amended Budget, noting the two percent reductions in all programs with the exceptions as discussed in Gov. Deal's presentation.  Some of the lawmakers in attendance asked questions on the "tunneling project," indexing of students on tests, career pathways, and parent connect.  Rep. Kathy Ashe (D-Atlanta) inquired about the numbers of jobs currently in the central office and she was told that there were 440 employees (she was also told that this was a decrease of 30 percent since 2008).   Virtual school funding was cut two percent with those cuts impacting development of new courses and a reduction of teacher contracts.  Overall, the Nutrition program was cut 3 percent.  Rep. Amos Amerson (R-Dahlonega) asked several questions concerning the cuts to Residential Treatment Centers and their grants which were to hold local school districts harmless (he argued that the local districts could go up on their millage rates when it needed more money but in this instance the State is the homeowner – so where do we fill the gaps?). Mr. Austenson stated that the numbers of students in Residential Treatment Centers was down; their numbers are based on the October counts.  He suggested moving those students to "SED" program which would require legislative action by the General Assembly.  Mr. Austenson also stated that the Centers needed better reporting of these children and the SED program would provide such and would allow a greater draw down of funding.  It would also require an IEP on each student.  The Longitudinal Data System will indicate when the IEP was obtained for the child, if that child comes from another school district.  Mr. Austenson also indicated that "training" on this idea had been done by the Department with the special education folks involved.  It would further earn more money for the Centers in total QBE and solve their problems.  Previously, the Departments of Behavioral Health and Developmental Disabilities and Human Resources determined an SED (which was obtained from a physician) but that rating system has ceased.  It was stated that the Centers needed to determine reasonable educational expenses for the year.  The children not included in the October count appear to be the problem.  Chairman Dickson asked for the actual numbers on these Centers and their children.  Mr. Austenson also explained that the Georgia Special Needs Scholarship funding, moving the dollars to QBE would permit greater flexibility for systems.  It would be very similar to Move On When Ready which was also moved to QBE.  Last year, the Special Education Needs Scholarships was reduced 15.5 percent as the numbers of students possibly dropped.  QBE growth is .36 percent or 6,000 students for a total of $87.9 million.  Lawmakers inquired about the cuts to the school nursing dollars of two percent when the Governor proposed more money in FY 2013.

Thursday

Joint Appropriations Committee

On Thursday morning, the Joint Appropriations Committee met to hear from the remaining Georgia departments.  Commissioner Clyde Reese of the Department of Human Services ("DHS") was first to present.  He first gave an overview of each of the departments divisions:  Aging Services, Child Support Services, Family and Child Services ("DFACS"), and Residential Child Care.  He revealed that since 2007, there had been a 52% increase in the amount of food stamps distributed.  Comm. Reese then emphasized the importance of committing the necessary amount of State dollars so that Federal dollars would be there to match.  He explained a $9.6 million piece of the budget that was put in place to cover a potential Federal penalty that could result from the failure to reconstruct a specific set of adoption payment records.  Comm. Reese also touched on DHS's use of fraud investigators and then to address the increasing amount of elderly abuse cases.  Sen. Tommie Williams (R-Lyons) asked a question about how the private sector is involved in adoption cases.  Comm. Reese replied that they were doing everything possible at DHS to maximize efficiency and obey State and Federal law.  Rep. Valerie Clark (R-Lawrenceville) asked about whether there was a food stamp fraud hotline that an individual could call to report suspicious activity.  Comm. Reese replied that there was indeed such a hotline.  Rep. David Knight (R-Griffin) voiced concern over whether there was enough scrutiny placed on data submitted by Temporary Assistance to Needy Families ("TANF") applicants.  Comm. Reese vocalized his support of more cooperation between DHS and the Department of Revenue to discover fraudulent claims.  Rep. Michele Henson (D-Stone Mountain) asked about an assessment of the refugee program.  Rep. Jimmy Pruett (R-Eastman) was the last legislator to address Comm. Reese and he asked about whether anything was being done to prevent repeat TANF applicants from clogging the system. 

Commissioner David Cook, of the Department of Community Health ("DCH"), outlined DCH's major responsibilities which include managing the State Health Benefit Plan("SHBP") and all healthcare administration.  Comm. Cook spoke about the creation of the Department of Public Health and attempts to reduce bureaucracy within DCH.  He stated that the largest programs were Medicaid and PeachCare and that 1.7 million Georgians use them.  Apparently, $176,000 worth of claims are processed everyday.  Changes have been made to address the State Health Benefit Plan and its deficit, which was reduced by 88 percent for the FY 2013 Budget (promoting wellness and choice for its members; Commissioner Cook remarked that the wellness initiative was the largest such plan in the country).  Commissioner Cook stated that the Department had also looked at the long-term liability of OPEB (which is $62 billion over the next 30 years); through revisions being made to the employer contribution and the employee (based on length of work), there was $11 billion reduction made.  Overall, the State Health Benefit Plan had a growth trend of 1.9 percent where as nationally, health plans have seen growth of 8.5 percent.  Part of the issue for the deficit in the SHBP is because not enough is collected for the non-certificated school personnel; those premiums, however, are being increased.  Other changes are being implemented to the SHBP which include tobacco cessation initiatives, elimination of bariatric surgery benefits, Tri-Care savings, mail-order prescription drugs, elimination of vision under HMO, and etc. He also mentioned that there would be an increasing in the nursing home provider fee. Sen. Hooks asked a question about why the fee was increasing.  Several legislators asked questions about how Medicaid fraud was being addressed.  Rep. Henson put forth a question about a pharmacy deductible benefit change within the State Benefit Plan and was told by a DCH representative that the change had been well publicized.  Rep. Mickey Channell (R-Greensboro) voiced concern over future budgets and how he did not think that DCH was planning well enough for rising healthcare costs.  Comm. Cook stated that he was aimed at dealing with the 2013 budget at the moment but that the 2014 budget would be a "whale" with the additional enrollees in Medicaid because of the federal healthcare law changes.  The Department's work on the Medicaid and PeachCare redesign initiative was mentioned; Commissioner Cook noted that the Navigant Report was expected later that day.

Commissioner Frank Shelp of Department of Behavioral Health and Developmental Disabilities ("DBHDD") then gave this presentation on the department's future financial outlook.  He noted that the department was facing challenges regarding forensic services.  Even though the wait list had been reduced from 200 to 60, he still hoped that the number could get down to 0 within the next year.  He noted that medical research conducted in the State needed to address problems which the population faces as opposed to what medical researchers are simply interested in.  Rep. Steve Davis (R-McDonough) asked a question about Henry County and why it was not included in the Atlanta region.  Comm. Shelp replied that the system of six different regions was designed with local interests in mind, noting that the Community Service Boards were to address local needs.  However, he seemed open to talking further about use of local hospitals.  Rep. Keith Heard (D-Athens) asked a question about whether DBHDD is required to conduct health and human services studies.  He also wanted to know more about the relationship between DBHDD and DCH when it comes to the exchange of funds.

The last meeting before lunch break was given by Director Debbie Dlugolenski of the Office of Planning and Budget.  She explained that unemployment in the State was down to 9.7% as opposed to 10.4% a year ago.  She once again emphasized the importance of maintaining the State of Georgia's AAA bond rating.  Director Dlugolenski concluded her comments by stating that she will always be asking for reductions in spending even when revenues do increase.

The final presentation that was heard by the Joint Appropriations Committee revolved around the 2013 Federal block grants.  Printed information was made available about block grants regarding community services, community mental health services, substance abuse prevention and treatment, low income home energy assistance, and social services.  Ann Williams from the Georgia Council on Aging asked legislators to allocate more funds to programs assisting the elderly because of the rising population of older people in Georgia.  She was followed by Nancy Pitra of the Senior Citizens Advocacy Project who voiced concern over whether enough funds would be available to continue programs such as adult day care and meals on wheels.

Monday

Senate Judiciary Committee

The Senate Judiciary Committee met on Monday afternoon to discuss three Bills.  The first piece of legislation on the agenda was SB 225.  The Bill was presented by Sen. Butch Miller (R-Gainesville) and would create a new offense of transmitting a false report of a crime.  Sen. Jesse Stone (R-Waynesboro) asked a question about the types of communication that the Bill would cover.  Sen. Jason Carter (D-Decatur) suggested that the Bill was too vague.  Sen. William Ligon (R-Waverly) then voiced a concern about whether the Bill would discourage people from reporting crimes.  As a result of the questions and concerns, Chairman Bill Hamrick (R-Carrollton) decided to hold the Bill without taking a vote.

The next Bill to be considered was HB 237, presented by Rep. Rich Golick (R-Smyrna).  The Bill would give the Attorney General the authorization to issue administrative subpoenas in residential mortgage fraud cases.  Sen. Bill Cowsert (R-Athens) stated that he did not agree with the Bill because it would allow the Attorney General to issue subpoenas without having to establish probable cause.  Sen. Carter then proposed an amendment to remove language on lines 42, 43, and 47 that in his estimation made the Bill unclear.  After being put to a vote, the amendment failed four to three.  Sen. John Crosby (R-Tifton) then asked a question about the precedent that the Bill would establish.  Sen. Ligon then asked a question about how subpoenas are currently acquired.  Sen. Charlie Bethel (R-Dalton) wanted to know if there are other types of cases where the Attorney General is able to issue these types of the subpoenas.  Due to the controversial nature of the Bill, Chairman Hamrick decided to hold the Bill in Committee without taking a vote.

The final Bill to be discussed was presented by Chairman Hamrick.  SB 136 would set out public policy concerning the standing of condominium associations to file suit as well as provide for priority of certain liens against condominium property and against property subject to a property owners' association.  None of the Committee members asked questions and SB 136 passed unanimously.

House Rules Committtee

The House Rules Committee met for the first time on Monday to consider several Bills for the calendar.  The two newest members, Rep. Barbara Sims (R-Augusta) and Rep. Allen Peake (R-Macon), were recognized.  Four Bills were selected.  HB 295 was presented by Rep. Howard Maxwell (R-Dallas) and would create a method of calculating accrued benefits for persons subject to the Georgia State Employees Pension and Savings Plan who transfer between the Employees' Retirement System of Georgia and the Teachers Retirement System of Georgia.  HB 713 was presented by Rep. Randy Nix (R-LaGrange) and would delay implementation of some career and college readiness initiatives until the 2013-2014 school year.  It would also require career education in grades kindergarten through 12 and change the mandated assessment for postsecondary readiness to the end of the eleventh grade.  HB 685 was submitted by Rep. Wendell Willard (R-Sandy Springs) and would make it so that the filing of certain answers on behalf of certain garnishees may be done by authorized officers or employees and would not constitute the practice of law.  The final Bill that was selected for the House calendar was HB 424.  Rep. Tom Weldon (R-Ringgold) presented the Bill which would provide a $5,000 death benefit for active and retired members regarding the Superior Court Clerks' Retirement Fund.  Bills that were presented but not selected include HB 351, 705 and 706.

House Appropriations Committee- Subcommittee on Health

Chairman Butch Parrish (R-Swainsboro) began the House Appropriations Health Subcommittee with a few opening statements and then invited Commissioner David Cook to explain the DCH's 2012 amended budget.  He first talked about the extremely important task of administering Medicaid, PeachCare, and the State Health Benefit Plan.  In order to address the $815 million deficit, the 2012 amended budget proposes plan design changes, a three year plan to classified personnel to increase the amount of contributions, and a change in post employment benefits.  Comm. Cook stated that there would be an overall 5.7% reduction in the 2012 amended budget.  Rep. Carolyn Hugley (D-Columbus) then asked a question about why the plan for classified personnel was a three year plan as opposed to five.  Comm. Cook then answered by stating that three years would allow them to raise the money more quickly.  Rep. Ron Stephens (R-Savannah) voiced concern over the reduction of mail order funds.

The next person to present was Commissioner Brenda Fitzgerald of the newly created Department of Public Health.  She clearly pointed out that the DPH was established without using additional State funds.  Due to a loss of Federal TANF funds, Comm. Fitzgerald stated that all but nine of the thirty teen centers in the State would be closed.  Both Rep. Carolyn Hugley (D-Columbus) and Rep. Pat Gardner (D-Atlanta) voiced concern about the loss of the family planning programs.  Comm. Fitzgerald then spoke about how the Department of Public Health was doing a good job of fixing dysfunctional fee collections systems.  Chairman Parrish then asked a question about how efficiently the lab facilities are run within DPH.

Three more organizations presented their 2012 amended budgets to the Subcommittee.  These were the Georgia Composite State Board of Medical Examiners, the Georgia Board for Physician Workforce, and the Brain & Spinal Injury Trust Fund Commission.  The BSITF Commission was noted for being funded solely by moneys collected from DUI fines and penalties.  They requested an additional $400,000 to help individuals with quality of life issues.  There was a very limited amount of discussion regarding the budgets for these three entities.  

If you have any questions concerning this Report, please contact Stanley S. Jones, Jr., Helen Sloat or Taylor Janney.