Sine Die!
Legislative Day 40
After a long, grueling Session for Lawmakers, it came to an abrupt end at the stroke of midnight amidst papers flying in both chambers. The General Assembly finally reached an agreement on a Budget for FY 2011 and also passed a few pieces of legislation while stretching out the forty-day Session, which began on January 11, 2010. Some of the various pieces of the State's Budget are noted below in a summary dealing with HB 948.
The Report today will provide a glimpse at some of the Floor discussions on Day 40. There were a couple of new pieces of legislation offered – merely as signals of ideas for things to come.
There were several emotional farewell speeches given in both chambers today – one of the largest tributes was paid to Rep. Bob Lane (R-Statesboro). Rep. Lane has served his district 30 years, filling the seat that his father previously held. Rep. Lane received a standing ovation from fellow House members humbly noting that he was looking forward to returning home to spend time with his two grandchildren. Most recently, Rep. Lane has been the Chairman of the House Game, Fish and Parks Committee.
A couple of other notable Georgians were on hand in the Capitol. Former Lieutenant Governor Pierre Howard and his daughter received a warm welcome in the Senate. In the House, they paid tribute to A.D. "Pete" Correll for his many accomplishments. Mr. Correll is former chief executive officer of Georgia-Pacific Corporation and is credited with the successful overhaul of Grady Hospital in Atlanta.
The qualifying period for the various elected offices ends on April 30, 2010. In preliminary counts, there are almost forty elected members of the General Assembly who will not be returning to politics or not returning to their present positions. Those individuals are:
Members of the Senate
- Jeff Chapman (R-Brunswick) – He is running for Governor.
- John Douglas (R-Social Circle) – He is running for a Public Service Commissioner slot.
- J.B. Powell (D-Blythe) – He is running for Agriculture Commissioner.
- Seth Harp (R-Midland) – He is running for Commissioner of Insurance.
- Dan Weber (R-Dunwoody) – He is leaving politics.
- David Adelman (D-Decatur) – He is now the United States Ambassador to Singapore.
- Gail Buckner (D-Jonesboro) – She is running for Secretary of State.
- Ralph Hudgens (R-Hull) – He seeks the Commissioner of Insurance job.
- Lee Hawkins (R-Gainesville) – He is running for Congress.
- Chip Pearson (R-Dawsonville) – He is leaving politics.
- Preston Smith (R-Rome) – He seeks to be Georgia's next Attorney General.
- Don Thomas, M.D. (R-Dalton) – He is leaving politics.
- Dan Moody (R-Alpharetta) – He is leaving politics.
- Members of the House
- Tom Graves (R-Ranger) – He is running for Congress.
- Barry Loudermilk (R-Cassville) – He is seeking a Senate position.
- Mark Butler (R-Carrollton) – He is running for Labor Commissioner
- Tom Knox (R-Cumming) – He is running for Commissioner of Insurance.
- Rob Teilhet (D-Smyrna) – He is running for Attorney General.
- Mark Burkhalter (R-Johns Creek) – He is leaving politics.
- Georganna Sinkfield (D-Atlanta) – She is seeking to become the Secretary of State.
- Mike Glanton (D-Ellenwood) – He is running for the Senate.
- Fran Millar (R-Dunwoody) – He is running for the Senate.
- Randal Mangham (D-Decatur) – He is running for Governor.
- Mike Coan (R-Lawrenceville) – He is newly named Subsequent Injury Trust Fund director.
- Clay Cox (R-Lawrenceville) – He is running for Congress.
- Melvin Everson (R-Snellville) – He seeks to become the new Labor Commissioner.
- John Lunsford (R-McDonough) – He is seeking to replace Sen. John Douglas in District 17.
- Jeff May (R-Monroe) – He is running for Public Service Commissioner.
- Bob Smith (R-Watkinsville) – He is leaving politics.
- Jim Cole (R-Forsyth) – He is leaving politics.
- DuBose Porter (D-Dublin) – He is running for Governor.
- Austin Scott (R-Tifton) – He is running for Congress.
- Bob Lane (R-Statesboro) – He is retiring from politics.
- Burke Day (R-Tybee Island) – He is retiring from politics.
- Terry Barnard (R-Glennville) – He is leaving politics but would like to be appointed to Board of Pardons and Paroles.
- Jay Shaw (D-Lakeland) – He is newly named State Board of Transportation member.
- Jerry Keen (R-St. Simons Island) – He is retiring from politics.
The Budget – HB 948
On the House side, Rep. Ben Harbin (R-Evans and Chairman of the House Appropriations Committee) provided an outline to House members of a few of the included items in the State's FY 2011 Budget of $17.8 billion. Rep. Harbin also took a few moments to thank numerous staff who had worked tirelessly to come up with a good budget; he also thanked his Subcommittee Chairs and the Senate and their staff folks.
- $100 million was provided for the Quality Basic Education "austerity" cuts.
- The Department of Education cuts were held to six percent or less, noting that the Conferees had prioritized education with 45 percent of the entire State budget being used to fund educational needs of Georgians.
- Enrollment growth in education was fully funded with $120 million.
- RESAs were funded, including a combination program to help achieve savings.
- Smaller cuts, than previously proposed, were taken in areas such as:
- Agriculture education
- Technical and career education
- Governor's Honors
- Pre-school handicap
- Sparsity grants
- School nurses, and etc.
- $9 million was added for career academy bonds.
- $50 million was provided for in bond funding for school bus replacements/updates.
- No cuts were made to Medicaid providers.
- Critical Access Hospitals were held harmless.
- Trauma funding was maintained.
- $9.3 million was provided in bond funding for the State's hospitals.
- Money was included for two new community health centers
- Funding was provided for 150 annualized "money follows the person" slots.
- TANF money was allocated for food banks across the State and domestic violence centers.
- Forestry programs, currently being paid for by local communities, are funded.
- Unemployment benefits for Georgians out of work are funded.
- No statewide mandated furloughs; however, some Departments/Agencies may elect to use furloughs as a means of achieving savings.
- $9.1 million is included in Department of Revenue's budget for 95 auditors and 45 agents to address fraud and otherwise assure full implementation of the State's tax policies. An anticipated $100 million is expected as the return on this $9.1 million expenditure.
- $200 million in new road construction bonds is included (which includes LARK funding).
- The Arts Council is funded with the council being directed to use two-thirds of those moneys to go directly to the communities. The Arts Council is being moved to the Department of Community Affairs.
- Money for the "RDCs" is restored.
- Halls of Fame, which have been contentious, are required to undergo a request for proposal process to have a private entity to take over responsibility for these entities within one year's time.
- 2,500 new prison beds are included in this Budget.
- $2 million in county subsidies are added for those counties holding State prisoners.
- Money is also included for replacing aging "pursuit vehicles" for agencies such as the GBI.
- Commission on Family Violence is being moved from the Department of Human Services to the Judicial Council.
- Public Libraries are fully funded using their formula.
- More money is included for additional medical residency slots in an effort to move Georgia from the 37th place in the nation for such physicians.
- Tuition equalization grants are funded at a rate of $750 per student.
- HOPE has included money for $4,000.00 grants for students who are staying in Georgia.
- The Board of Regents' list of maintenance and repairs' needs is addressed using bond funds.
Rep. Harbin moved that the House adopt the Conference Committee Report on HB 948 which then was adopted by a vote of 137 to 33. The Senate adopted the Report with a vote of 47 to two.
Floor Action
This listing of actions in no way encompasses all actions taken on various pieces of legislation today:
The House disagreed to the Senate Substitute to HB 1195, which creates the Georgia Workforce Investment Board. A Conference Committee was appointed for both the House and Senate. The Senate failed to achieve adoption of the Conference Committee Report. So, Conferees went back to work. The House adopted the Conference Committee Report No. 2 with a vote of 150 to seven and the Senate took similar action by adopting Conference Committee Report No. 2 with a vote of 46 to one on HB 1195.
Rep. Joe Wilkinson (R-Sandy Springs) moved that the House disagree to the Senate Substitute on HB 1069. This Bill provided some "drama" as the underlying Bill sought to amend Title 48 to provide for income tax credits for certain qualified equipment that reduces business or domestic energy or water usage. Conferees were named to work through the differences for both the House and Senate. Later, the Senate would adopt the Conference Committee Report with a vote of 40 to nine. In the House, the Bill became a vehicle for other tax initiatives, including a tax exemption sought by Lockheed which had previously been included in HB 1221 (it would have extended Lockheed's sales and use tax exemption on purchases made by government contractors). The House eventually stripped out those ideas in the Conference Committee Report, and it was adopted with a vote of 97 to 62; the House moved to reconsider its actions on this Report which then failed. The Conference Committee Report does include the Angel Investor Tax Credit program proposed previously by Rep. Chuck Martin (R-Alpharetta) and the controversial portion of the Bill, the elimination of the low income tax credits.
Rep. Mike Jacobs (R-Atlanta) moved that the House disagree to the Senate Amendment to SB 488. This Bill, brought at the request of Turner Broadcasting and CNN, will add a new Code Section in O.C.G.A. § 9-3-99 to address the tolling of limitations of tort actions when a criminal action is pending. The House disagreed with the Senate's amendments, including a limit of four years for this statute of limitations. Conferees were appointed; the Report was later adopted by both the House and Senate.
Other tax revisions were brought in HB 982, including the proposed Department of Revenue's administrative garnishment process. Rep. Larry O'Neal (R-Bonaire) moved that the House disagree to the Senate Substitute on HB 982; his motion carried. Later, Rep. O'Neal would move that the House insist on its position and Conferees were appointed by both the House and Senate. The House failed with a vote of 61 to 86 to adopt the Conference Committee Report. An attempt was made to reconsider with a vote of 76 to 74 but the adoption of the Report was never made.
Rep. Tommy Benton (R-Jefferson) moved that the House agree to the Senate Substitute on HB 1050; the House agreed with a vote of 141 to four. This Bill provides that real estate appraisal management companies must also be regulated under Chapter 39A of Title 43.
Rep. Jay Roberts (R-Ocilla) moved that the House agree to the Senate Substitute to HB 516. The House agreed with a vote of 145 to two. This Bill was originally passed in 2009 and provides that industrialized buildings will be deemed to comply with State minimum standards codes and local ordinances and regulations applicable to such buildings and also provides for residential industrialized buildings to be placed in residential districts. It removed references to manufactured housing.
Rep. Nikki Randall (D-Macon) moved that the House insist on its position on SB 56. This Bill, by Sen. Gloria Butler (D-Stone Mountain), proposed creation in Title 35 to establish the Georgia StopMeth Log for electronically recording the identity of those individuals purchasing certain medications used for the production of methamphetamine. The House never formally took action on this "insist;" the Senate, in error, appointed conferees on the Bill even though an agreement was made never to bring the Bill up in the Senate for such action. This "error" was relayed to the House; thus, this Bill died. SB 56 was a vehicle for other pharmaceutical-related legislation which could have been detrimental to pharmacists, pharmaceutical companies, and/or insurers.
HB 1272 was brought to the House Floor by Rep. Toney Collins (D-Conyers). Rep. Collins moved that the House agree with five Senate amendments; the House agreed with a vote of 145 to six. This Bill creates a 'check-off' on State income tax for contributions to be made to support Lupus and Kidney research; the Senate also added a check-off for Multiple Sclerosis and also added language so that Georgians can pay extra taxes to the General Fund if they so chose to do so.
Rep. Tom Knox (R-Cumming) moved that the House agree to the Senate Substitute as amended to HB 788. This Bill would prohibit the use of gas chambers to euthanize dogs and cats. The House agreed with a vote of 125 to 26; the amendment addresses the effective date moving it to December 31, 2010 from December 31, 2013 as the Senate had proposed. The House then moved to reconsider its actions with a vote of 85 to 74. The Bill was taken up later in the Senate which then passed that body as changed by the House by a vote of 37 to eight. The House also took up the Bill, adopting the changes 115 to 36.
SR 277 was presented to the House by Rep. Mickey Channell (R-Greensboro and a long-time champion of the State's hospitals). SR 277 provides for a Constitutional Amendment which must be ratified by voters to create a $10.00 fee assessed annually on motor vehicle registrations to fund a statewide trauma services' program. These fees would be deposited monthly into a Trauma Trust Fund, if voters approve this fee. The House adopted this Resolution by a vote of 149 to 14. The Senate, upon motion and explanation by Sen. Greg Goggans (R-Douglas), also adopted SR 277 by a vote of 46 to two. Voters now must ratify this proposal.
The House agreed to the Senate Substitute as amended by the House to HB 1059 with a vote of 140 to 16. HB 1059 addresses permits for solid waste or special solid waste handling, disposal, or thermal treatment technology facilities and inspection of solid waste generators. The Senate later agreed to the House's actions with a vote of 45 to three.
Rep. Edward Lindsey (R-Atlanta) moved that the House insist on its position on SB 454 with Conferees then appointed to work out differences. SB 454 deals with slot machines and it also establishes fees for coin-operated amusement machines and requires a master license fee be paid if an owner of such machines owns six but less than 60 of such machines. The Bill does not address "bingo" games. The House adopted the Conference Committee Report on this Bill with a vote of 151 to eight; the Senate adopted the Conference Committee Report with a vote of 46 to six.
Rep. David Knight (R-Griffin) moved that the House disagree with the Senate Substitute to HB 335. His motion carried; later Rep. Knight would move that the House insist on its position and Conferees were appointed. It does not appear that the House took action on the Conference Committee Report; however, the Senate did adopt a Conference Committee Report with a vote of 37 to 13 on this tax Bill, which proposed to provide for a sales and use tax for local community support of economic development and quality of life initiatives through the establishment of special districts.
The House passed SB 308 with a vote of 118 to 48, the gun legislation by Sen. Mitch Seabaugh (R-Sharpsburg) addressing the "lawful carry" of guns. It expands private property owners' rights with permitted weapons. Later, the Senate would disagree with the House version of SB 308 and Conferees were then appointed for both the House and Senate. The Senate adopted the Conference Committee Report shortly after 11:00 p.m. with a vote of 39 to 11 and the House, taking up the Bill at almost the same time, also adopted the Conference Committee Report on SB 308 with a vote of 118 to 44.
Rep. Larry O'Neal (R-Bonaire) moved that the House agree to the Conference Committee Report on HB 1221. This Bill, known as the Streamline Sales Tax Proposal, became a vehicle in the Senate to the Lockheed sales and use tax exemption extension. The Senate adopted the Conference Committee Report with a vote of 42 to three. The Conference Committee Report adopted with a vote of 118 to 44 by the House took the Bill back to essentially the way it left the House. The legislation does not propose a new tax and is supported by the Georgia Chamber of Commerce. It will, however, generate $24-$30 million in new revenue for Georgia based on North Carolina's experience last year.
Rep. Wendell Willard (R-Atlanta) moved that the House agree to the Senate Substitute as Amended by the House to HB 991. This Bill addresses how cities and counties will divvy up sales and use tax distributions when there is a dispute. It creates a form of "baseball arbitration." Sen. Chip Rogers (R-Woodstock) had added language for local option sales tax ("LOST") for three counties of Cobb, Cherokee and Gwinnett. Governor Perdue did not like Sen. Rogers' language the way it was written; thus, it was revised so that it would become a referendum issue if regional not pass this LOST. Many were perplexed by this Bill's amendment from the Senate and subsequent House amendment. They feared that it would derail the transportation funding legislation. Thus, the House disagreed with HB 991 by a vote of 9 to 157. The Senate later receded from its Substitute to HB 991 with a vote of 40 to one.
Rep. Donna Sheldon (R-Dacula) moved that the House agree to SB 148 as amended by the Senate. The House agreed with a vote of 117 to 35. This Bill addresses the "Georgia Occupational Regulation Review Law" in Title 43 establishing periodic reviews of the need for all State regulatory entities and the "Georgia Government Accountability Act" in Title 50 (previously HB 236 by Rep. Charlice Byrd (R-Woodstock)).
The Senate agreed to the House Substitute as amended by the Senate to SB 237. This Bill originally introduced to prohibit an increase in the price of petroleum products in a declared state of emergency, was amended to also prohibit a price increase of wood products by retailers during a state of emergency as declared by the Governor.
The Senate disagreed with the House Substitute to SB 287, which as originally introduced would have allowed for a new identification number to be assigned to driver's who have lost or had their license stolen. The House Substitute would have required any person convicted of a felony to surrender their license within 20 days of conviction. The Department of Driver Services would reissue the license with a demarcation for being a convicted felon. No other action was taken.
The Senate agreed with the House Substitute of SB 435. SB 435, known as the "Diabetes and Health Improvement Act of 2010", would establish the Georgia Diabetes Control Office and board of trustees. The added House changes (HB 853 as proposed by Rep. Karla Drenner (D-Avondale Estates)) would require every tanning facility in the State of Georgia to register with Department of Community Health and impose an annual $25 fee for each facility with an additional $15 for every tanning bed. Minors under 14 years of age would be prohibited from using tanning beds and minors ages 14 to 18 would have to have their parent's written permission to use such tanning facilities.
The Senate agreed with the House Substitute of SB 461, which relates to construction of wills and testamentary gifts. SB 461 provides for the construction of wills and trust instruments referring to federal estate and generation-skipping transfer tax laws for testators and settlors dying on or after December 31, 2009, but prior to January 1, 2011.
The Senate and the House adopted the Conference Committee Report to SB 360, the "texting while driving bill". SB 360 prohibits all ages from texting while driving. The penalty under the as passed version of the Bill is $150 per violation.
The Senate and House adopted the Conference Committee report to HB 1069. This Bill will provide for income tax credits for certain qualified equipment that reduces business or domestic energy or water usage and provide for an income tax credit for certain qualified investments for a limited period of time.
The Senate and House adopted the Conference Committee Report to SB 388. SB 388 requires the Secretary of State's Office to distribute Georgia Laws and Journals of the House of Representatives and the Senate to State agencies. It also allows for the distribution in print or electronic format.
The Senate agreed with the House Substitute to SB 250. SB 250 prohibits any person to knowingly and intentionally or recklessly disrupt or interfere with the operation of any public school, public school bus, or public school bus stop as designated by local school boards of education. Any person violating this Code section will be guilty of a misdemeanor 44-0, taking out the previous language which would have made this a misdemeanor of a high and aggravated nature.
The Senate and House agreed to the Conference Committee Report of HB 258. HB 258 as passed would allow minors who are 15 years of age to obtain a valid Class C instructional permit, if their parents or guardians are medically incapable of being licensed.
The Senate and House adopted the Conference Committee Report of SB 195, which changes the definition of 'Electronic data prescription drug order' to also include any digitalized prescription drug order transmitted to a pharmacy that is converted into a visual image of a prescription order during the transmission process, is received by the pharmacy through a facsimile, and includes the practitioner's electronic signature. The underlying Bill updates various laws relating to professions and permits easier access to renew licenses through on-line processes.
The Senate agreed to the House Amendment to the Senate Substitute on HB 1364. The House Amendment removed the Senate language added to the Bill. It proposes to amend Georgia's laws regarding the Georgia Insurers Insolvency Pool and makes that Pool liable to claimants and electing insureds in emergency circumstances. This legislation will address instances, such as that with SEUS, Southeastern US Insurance, which became insolvent and left numerous policy holders without coverage. At the time SEUS liquidated, it had 209 policy holders. SEUS grew from a $700,000 entity to one worth more than $37 million but it never paid into the Pool.
Rep. Sharon Cooper (R-Marietta) presented the House Substitute on SB 418. It creates a prescription monitoring program for Schedule II drugs plus the drugs of hydrocodone and carisoprodol. This monitoring would be overseen, pursuant to the House version of this legislation, by the Georgia Drugs and Narcotics Agency. The initiative was amended on the House Floor by Rep. Cooper and Rep. Ron Stephens (R-Savannah and a pharmacist) which then passed with a vote of 141 to 17. Later, the Senate took up SB 418 and an amendment was offered by Sen. Buddy Carter (R-Savannah and also a pharmacist) which essentially took the Bill back to the form that it left the Senate – except it will now monitor Schedules II and III drugs and the oversight of this prescription monitoring will be done by the State Board of Pharmacy. The Senate agreed to the House Substitute as Amended by the Senate with a vote of 44 to two.
Rep. Sharon Cooper (R-Marietta) also moved that the House insist on its position on SB 244 and appoint a Conference Committee. Conferees were appointed and later came back to the House Floor in a Conference Committee Report. SB 244 is a Bill left from 2009 which was used as a vehicle. SB 244 places the Governor's Bill amending the Title 43 provisions of the "Georgia Registered Professional Nurse Practice Act" so that the performance of health maintenance activities by a designated caregiver will not be prohibited along with clean-up provisions of the Department of Human Services' reorganization, SB 391, together into one piece of legislation. Contents of SB 244 were also in HB 1040. The House adopted the Conference Committee Report on SB 244 with a vote of 136 to 14 and the Senate did likewise with a vote of 50 to zero.
Rep. Steve Davis (R-McDonough) moved that the House adopt the Conference Committee Report on HB 321, the "Insurance Delivery Enhancement Act." Associations will no longer have to have 25 members to participate in group health insurance offerings; they only must have 10 members to do so. Also contained in this legislation is language from SB 62 which brings third-party administrators into Georgia's laws for prompt payment of insurance claims. The Bill also amends the prompt pay law in Title 33 (it makes insurers be 95 percent compliant before any penalties will be assessed on them by the Commissioner of Insurance; it moves the percentage that an insurer must pay on outstanding claims owed at 12 percent rather than 18 percent; and it makes insurers pay electronically filed claims within 15 days and paper claims within 30 days or send a notice to the insured or other person claiming payments the reason for denial of the claim or other reason why the claim has not been paid). The House adopted this Conference Committee Report with a vote of 128 to 25; the Senate adopted the Conference Committee Report with a vote of 47 to one.
HB 1268 came to the House Floor upon a motion made by Rep. Tom Knox (R-Cumming) moving that the House agree to the Senate Substitute as Amended by the House. It extends COBRA benefits available to persons as long as there are available federal subsidies. The House removed the language that required a notice be attached depicting how much of the premium was the related State premium tax. The House agreed with a vote of 139 to seven.
New Legislation
HB 1517 – Rep. Tom Knox (R-Cumming) offered this change to Title 33. HB 1517 creates a new code section O.C.G.A. § 33-24-59.13 to read as follows:
No health care plan required to be established in this state through an exchange pursuant to federal health care reform legislation enacted by the 11th Congress shall offer coverage for abortion services. This limitation shall not apply when the life of the mother is endangered by a physical disorder, physical illness, or physical injury, including a life-endangering physical condition caused by or arising from the pregnancy itself.
HB 1520 – Rep. Shelia Jones (D-Smyrna) offered changes to Title 16 prohibiting the sale of wireless telephones and wireless prepaid telephones to any person under the age of 18 without the prior written consent of their parents or guardian.
HB 1521 – Rep. Tommy Smith (R-Nicholls) offered changes to Title 34, relating to labor and industrial relations, so as to repeal certain provisions and the transfer the Division of Rehabilitation Services from the Department of Labor to the Department of Community Affairs.
HB 1520 – Rep. Tommy Smith (R-Nicholls) also offered this Bill which would enact the "Georgia Tourism and Community Development Act for Natural and Cultural Reasons."
This would provide for tax refunds for companies creating new tourism attractions.
SR 1538 – Sen. Don Thomas (R-Dalton) authored this Resolution, urging the Georgia Department of Community Health to require patient-centered medical home pilot projects be established through care management organizations for the Medicaid population and to establish a pilot project of the patient centered medical home through the State Health Benefit Health Insurance Plans.
Please contact Stanley S. Jones, Jr., Helen Sloat or April Morgan at 404.322.6000 for further information on legislative happenings. Gold Dome Reports will be available daily during the Session at www.nelsonmullins.com.
The articles published in this newsletter are intended only to provide general information on the subjects covered. The contents should not be construed as legal advice or a legal opinion. Readers should consult with legal counsel to obtain specific legal advice based on particular situations.