Budget Negotiations Ongoing
March 19, 2010
Amidst wildlife from the Department of Natural Resources, Legislators returned to the Capitol today to working further to address the concerns and business of the people.
Upon completion of today's work, the House and Senate stand in adjournment until Monday, March 22, 2010.
Budget negotiations are ongoing and no new proposals are on the table as of the writing of this Report.
Floor News
Senate
A few highlights of today's Senate activities are as follows:
SB 299, the Bill by Sen. Emanuel Jones (D-Decatur), cleared the Senate with a vote of 47 to zero. It amends Georgia's law on the "zero tolerance policy" on weapons in schools; it will no longer be a mandatory felony act but may be considered such, as outlined in O.C.G.A. § 15-11-63. It further amends O.C.G.A. § 15-11-46.2 so that "notwithstanding the provisions of Code Section 15-11-45, 15-11-46, or 15-11-46.1, a child may not be detained or placed in shelter care prior to the informal detention hearing by virtue of a standing court order."
SB 317, by Sen. Judson Hill (R-Marietta), cleared with a vote of 31 to 16. It provides that no State law shall compel an individual to participate in any healthcare system.
SB 411, presented by Sen. Ralph Hudgens (R-Hull), will permit insurers offering individual and small group policies to promote wellness programs without those being considered as an unfair trade practice. Sen. David Adelman (D-Atlanta) asked why such activities were considered an unfair trade practice in the first place; Sen. Hudgens stated that it was possibly because such actions were considered as bribes, but he was purely speculating. Alliant Health Plans has been previously provided a variance in order to sell their policies with the wellness program. Sen. David Shafer (R-Duluth) inquired about anti-rebating provisions and whether those might be considered as violations under Georgia's Unfair Trade Practice provisions. Wellness programs sometimes offer premium discounts and other incentives. The Bill passed with a vote of 42 to zero without any amendments.
SB 435, by Sen. Don Thomas (R-Dalton ), was presented. It will create the "Diabetes and Health Improvement Act of 2010." Sen. Buddy Carter (R-Savannah) offered a Floor Amendment offered which would add a sixth member to this group's "Board of Trustees" making certain that a pharmacist would be on the Board. A goal of this Act is to help prevent Type II diabetes. The Board of Trustees would work with the Department of Community Health to find grant funding for these efforts. The Floor Amendment was adopted and the Bill then passed with a vote of 44 to zero.
SB 439, by Sen. Preston Smith (R-Rome), makes the crime of incest gender neutral in O.C.G.A. § 16-6-22.
SB 440, by Sen. Jeff Mullis (R-Chickamauga), passed with a vote of 42 to zero. It changes the name of the Georgia Firefighter Standards and Training Council to the Georgia Firefighter Minimum Standards Council.
House
Dr. Judson (Jay) Hodges, Pastor with the Milledgeville First United Methodist Church, provided some moments of inspiration to the House today before Members got down to work.
Rep. "Coach" Williams (D-Avondale Estates) took a moment of personal privilege to tell the House that the Senate was taking up Sen. Jones' Bill, SB 299, which was good for Georgia's children.
In his moment of personal privilege, Rep. Harry Geisinger (R-Roswell) recognized seniors from Roswell.
Rep. Ralph Long (D-Atlanta) asked for a moment of silence in memory of the two young men who were murdered in Atlanta last evening.
A few highlights from the House Rules Calendar include as follows:
HB 994, by Rep. Penny Houston (R-Nashville), provides more authority for the Department of Community Health to collect licensure fees from additional facilities. The Department inherited the Office of Regulatory Services when the Department of Human Resources was reorganized last year. This office is now called the Health Facilities Regulation Office. Previously, there were some facilities not paying licensure fees. This Bill would capture all entities. The Department is presently responsible for inspecting more than 13,000 facilities. The Bill limits the fee to the cost of the inspection service. No discussion was held on the initiative, and it passed out of the House with a vote of 131 to 22.
HB 1119, by Rep. Ben Harbin (R-Evans), would create the "Arthritis Prevention and Control Act." There are 1.8 million individuals who have been diagnosed with arthritis. The largest number of hours, lost from work, is due to this health problem. Under the proposal, it would not require additional State funds; rather it would seek outside grant funds and other public and private dollars. An amendment was offered to clarify the access of the funds. The Floor Amendment was adopted, and the Bill passed with a vote of 152 to four.
HB 1260, by Rep. Ron Stephens (R-Savannah), passed with a vote of 155 to one. The initiative was described by Rep. Stephens as a "housekeeping bill." It will permit Georgia to draw additional federal funds. No questions were raised.
HB 936, by Rep. Paul Battles (R-Cartersville), regarding permitting school bus purchase allowances to also be used for refurbishment, passed 160 to one. House Members had a little fun with Rep. Battles as it was his first time in the Well to present a Bill. Majority Leader Keen had advised him prior to coming to the Floor that he needed to take a "visual aid" so Rep. Battles brought with him a miniature yellow school bus. Various funny questions were raised, including one from Rep. Jay Powell (R-Camilla) on whether the refurbished buses should be painted a different color. Rep. Battles suggested that perhaps that question should be raised with the Department of Education. Rep. Stephanie Stuckey Benfield (D-Atlanta) asked serious questions about whether the Bill would address diesel retrofit requirements so that Georgia may ask for more federal funds. Rep. Battles committed that the issue regarding diesel retrofitting would be handled in the Senate.
HB 1005 was presented by Rep. Katie Dempsey (R-Rome). The initiative combines two specialty license plates. One is for Zoo Atlanta with the proceeds of the sale of that plate to benefit the Zoo and the second for AKA Sorority and its education fund. Rep. Dempsey noted that the Zoo was serious about this license plate and had agreed to prepay the $25,000.00 manufacturing fee. The initiative passed by Committee Substitute with a vote of 152 to two.
Committee News
House Judiciary Non-Civil Committee – Setzler Subcommittee
The Governor's proposal, HB 1040, cleared the Subcommittee this morning without any amendments. Rep. Jimmy Pruett (R-Eastman) has carried this proposal for Governor Perdue in an effort to address moving more Georgians out of facilities and into the community. It proposes to provide that the performance of health maintenance activities by a designated caregiver under certain conditions will not require licensure as a registered professional nurse. A number of changes have been made to the proposal from its initial introduction; it now moves to the full Committee for its consideration.
House Ways and Means Committee – Public Finance and Policy Subcommittee
HB 1055, by Rep. Richard Smith (R-Columbus), received an initial hearing this morning. The proposal would address Georgia's 1,800 user fees in the Code. The Bill updates many of those fees. Selection of those intended to be increased was made after consulting with a number of individuals. They looked at when the fee was last adjusted; the cost of providing the service; what other states charge for a similar fee/service; and whether Georgia could charge for the full amount of the fee/service.
One of the areas that received the increases was the Code sections implementing specialty license plates. It would make individuals pay the $20 tag fee; a $25 manufacturing fee; and another $35 for the cause associated with the plate. There are apparently 116 specialty plates in Georgia; only about half pay all three fees. The $35 fee would be split with $25 going to the State and the other $10 going to the beneficiary. Rep. Tom Rice (R-Duluth), who chairs the House Motor Vehicles Committee, raised several concerns about these increases on "tag" fees, feeling that perhaps many individuals would not pay the increases to have the specialty plates. (Interestingly, Legislators would also have to pay for their specialty plates under the Bill.) Some of the other fees addressed include charging a $250.00 registration fee for professional lobbying. Food service establishments would be required to pay a fee to cover the costs of inspection done and those fees would be based on the size of the facility. Child Care Facilities would have imposed a licensing fee based on the size of the facility and the revenue that it generates.
In total, the proposal in HB 1055 could generate another $90-$100 million in money for the State.
Senate Health and Human Services Committee
SB 493, by Sen. Hardie Davis, passed. It addresses the signing requirements of a death certificate so that coroners will not always be required to sign when a patient is transported to a burn center facility such as the Grady Burn Center or the Still Burn Center in Augusta. It would only require the attending physician to sign that death certificate.
SB 418, the prescription drug monitoring proposal which will look at providers' prescribing practices, cleared the Committee even with a no vote from Sen. David Shafer (R-Duluth). Sen. Buddy Carter (R-Savannah) authored this Bill. In the Substitute offered, it removed all references to the Georgia Drugs and Narcotics Agency and would require the Georgia Board of Pharmacy to oversee this program. It also addressed the penalties associated with providers and dispensers when the negligently release information; this language remained problematic to Sen. Carter.
SB 289, by Sen. Dan Moody (R-Roswell), was held in the Committee. Sen. Moody reported to the Committee that he had hoped to perfect the legislation, which addresses appeals processes with therapies (speech, occupational and physical) provided to children under the State's Medicaid program and their required appeal processes currently used by the Care Management Organizations. No agreement was reached with the Care Management Organizations on proposed language, and Sen. Moody did not wish to bring the Bill out to the Floor without agreement from the Care Management Organizations as to the language. He committed to look for a vehicle to add the language on the Floor if an agreement was reached.
Senate Appropriations Committee
The full Senate Appropriations Committee met this morning, taking up six bills.
- SB 480, by Sen. Jack Hill (R-Reidsville), proposes a five-member State Council of Economic Advisors. The duty of this Council will be to determine annually the amount of unappropriated surplus money expected to have accrued in the State's "treasury at the beginning of the next fiscal year and the total treasury receipts from existing revenue sources anticipated to be collected in the next fiscal year, less anticipated refunds, for the purposes of preparing the Governor's budget recommendations to the General Assembly for the next fiscal year. Such determination shall be made not later than July 31 for the budget recommendations for the next fiscal year and not later than September 30 for the amended budget." This proposal passed.
- SB 414, by Sen. Jeff Mullis (R-Chickamauga), passed in the original version of the Bill with an amendment clarifying the name, the Jarred Little Act. Originally, Sen. Mullis tried to use a Committee Substitute, but it contained technical drafting issues. The Bill amends current law relating to the Georgia State Indemnification Fund, providing that, in the case of death or organic brain damage suffered in the line of duty by a law enforcement officer, firefighter, emergency medical technician, emergency management specialist, or prison guard, if such person does not have an unremarried spouse or dependents, the indemnification payment will be made to the parents or siblings of such person. Under current law, unmarried individuals are not recognized if they are hurt or die in the course of their performance of their duties to the State.
- SB 421, by Sen. Jack Hill (R-Reidsville), also passed. This Bill increases the permitted revenue shortfall reserve for the State from ten percent to fifteen percent.
- SB 385, by Sen. John Wiles (R-Marietta), passed with a vote of 13 to eight. It proposes that incentives be provided to counties who use 287G of participate in Secure Communities Act in determining the immigration status of individuals in detention. Sen. Wiles noted for the Committee that Cobb County had found large cost savings by implementing such program. Sen. Wiles acknowledged that small counties would have problems with meeting the requirements to get a memorandum of agreement from the Department of Justice.
- SB 500, also by Sen. Wiles, proposed to amend current law in Title 43 concerning the "Auctioneers Education, Research, and Recovery Fund." He proposed that the Fund be required to keep no more than $100,000 in its balance. However, this Fund presently has a $500,000.00 balance. Sen. Bill Heath (R-Bremen) suggested that the money should be returned to the auctioneers rather than moving the excess money to the General Treasury as Sen. Wiles proposed. An auctioneer spoke out against the Bill, noting that the General Assembly should leave the money in the Fund to help protect the public from any auctioneers who might engage in bad activities. A motion was made by Sen. Heath "Do not pass." However, a substitute "Do pass" motion was made by Sen. Steve Thompson (D-Marietta) which then failed.
- SB 512, by Sen. Jack Hill (R-Reidsville), passed. It will allow the Department of Revenue to have the authority to collect sales and use taxes from businesses that may otherwise not be obligated to collect and remit such taxes (those entities which are not based in Georgia, such as Amazon.com).
Senate Insurance and Labor Committee
HB 128, by Rep. Tommy Benton (R-Jefferson), passed out of the Committee. It provides that a certificate of eligibility for an exemption from occupation taxes, administrative fees, and regulatory fees will be valid for a period of ten years for veterans who operate businesses peddling, operating businesses, or practicing professions.
SR 108, a Resolution brought last year by Sen. Eric Johnson (R-Savannah) and now Candidate for Governor, was brought forth by Senator Chip Rogers (R-Woodstock). No testimony was provided on the Resolution, and it passed with a vote of four to one (Sen. Robert Brown opposed). The proposal would insert an amendment to the State's Constitution to provide that where local, state, or federal law requires elections for public office or public votes on initiatives or referenda, or designations or authorizations of employee representation, the right of individuals to vote by secret ballot will be guaranteed.
SB 482, by Sen. Ralph Hudgens (R-Hull), amending Georgia's law, passed in SB 61 in 2009, on "Life Settlements," and addressing issues with "stranger only" initiated insurance policy sales, passed unanimously. However, parties had originally differed on this Bill but no agreement was reached. Sen. Hudgens made the decision to move the initiative forward without any compromise.
SB 161, by Sen. Johnny Grant (R-Milledgeville), passed out of the Committee this morning. It creates an autism task force in Title 37. In explaining the proposal, Sen. Grant noted that the biggest change was that the Substitute before the Committee was no longer in Title 31. It was moved to Title 37. It also moved the ending date for the task force to complete its work to December 31, 2011 with an interim report to the General Assembly on January 15, 2011. The Substitute also added representatives from the Georgia Chamber of Commerce and NFIB. Sen. Grant committed that if an attempt is made to change the initiative to an insurance mandate that he would not agree to such a change. Rep. Katie Dempsey (R-Rome), who is carrying an autism Bill in the House, agreed with Sen. Grant on this commitment and will carry SB 161 in the House.
SB 378, by Sen. Buddy Carter (R-Savannah), proposed that insurance plans with drug formulary programs would be required to pay for a ten day supply for a non-formulary drug when it was prescribed. This requirement for payment of this ten day supply for the non-formulary medication would be permitted to be allowed once per year. Opposition was raised by Express Scripts, a large pharmacy benefits manager, and the Georgia Association of Health Plans as it would interfere with management of the drug option. Formularies are used to help control costs. Ten-day supplies for certain drugs can be very expensive. In the current version of the Bill, the State Health Benefit Plan and Medicaid programs are exempt from this requirement. At this meeting, there was no fiscal note presented on the Bill. Sen. Carter responded that the State could address these issues with their plans; plus the pharmacist can initiate the State Health Benefit Plan prior approval process but he or she cannot do such with most plans. The Committee held this Bill for further work.
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.