March 26, 2010
Greetings from the Gold Dome! House Lawmakers made one step closer to the Session's finish line around midnight Friday evening; the Senate folks had concluded their day's work hours earlier and had essentially vacated the building as the House toiled along.
The bigger news of the day included passage of two proposals from Governor Perdue:
- HB 307, the legislation by Rep. Jim Cole (R-Forsyth), cleared the House with a vote of 141 to 23. This initiative, called the "Provider Payment Agreement Act," imposes a three-year, 1.45 percent provider "fee" on nonprofit hospitals' net patient revenue (exempting out state-owned or operated facilities, critical access hospitals and psychiatric hospitals). The Bill was amended on the Floor by Rep. Earl Ehrhart (R-Powder Springs) with a vote of 135 to 23. His amendment takes out single-specialty, physician-owned ambulatory surgery centers from paying this fee, as originally proposed. After much discussion, including statements that this "fee" was not "voluntary" by any stretch, hospitals were essentially coerced into making this agreement or otherwise lose their nonprofit hospital sales and use tax exemption or have imposed a 19 percent provider rate cut to their Medicaid payment rates. Some Lawmakers argued that there were other options to resolve the State's budget issues – including imposing an increase to Georgia's tobacco tax. Now, HB 307 has been assigned to the Senate Finance Committee.
- HB 1184, by Rep. Matt Ramsey (R-Peachtree City), also passed with a vote of 108 to 55 after being presented by Rep. Cole and explained by Rep. John Meadows (R-Calhoun). This initiative permits the "cross-state" selling of individual health insurance products. The policies would be required to be approved by Georgia's Commissioner of Insurance. Democrats took issue with the proposal because of concerns that these policies from out-of-state would not necessarily include Georgia's listing of health insurance mandates or otherwise controlled in Georgia.
Floor News
Senate
The Senate had 33 pieces of legislation on its Rules Calendar for the 30th Day. A few highlights of the day's events are as follows:
- SB 161, by Sen. Johnny Grant (R-Milledgeville), passed the Senate with a vote of 52 to zero. The Bill creates a "Statewide Autism Task Force" to "establish policy by gathering scientific minds, researchers, physicians, and parents of children affected by this disease to create better screening, education, treatment, and services for those children and to recommend a unified and coordinated agenda for addressing autism in the State of Georgia. Early therapeutic treatment for these children has been shown to reduce costs to families and to the State of Georgia. The goal of this task force will be to review prevalence data for autism spectrum disorders, review current programs and funding, determine gaps in services and access issues, review best practices in the field, and provide for a comprehensive plan with recommendations and identifiable needs." Sen. Grant committed that, if this initiative moves into the House and an attempt is made to make this Bill a change to Georgia's health insurance mandated coverage of autism, then he will kill the initiative. Rep. Katie Dempsey (R-Rome) is to carry SB 161 in the House.
- SB 451, by Sen. Freddie Powell Sims (D-Dawson), passed with a vote of 49 to zero. This initiative proposes the enactment of the "Jace Hester Act," outlining procedures that the Department of Early Care and Learning or Bright from the Start must follow subsequent to the death of a minor occurring in a family day-care home or group day-care home. Decisions closing these facilities may be contested by following the "Georgia Administrative Procedure Act."
- SB 496, by Sen. Jack Hill (R-Reidsville), passed the Senate with a vote of 45 to four. It will establish the "HOPE college opportunity grant" which means "a Helping Outstanding Pupils Educationally college opportunity grant for education awarded in accordance with Code Section 20-3-519.4." This new Code Section outlines requirements for obtaining this grant (including residency requirements; eligibility standards; enrollment standards and other requirements).
- SB 501, by Sen. John Douglas (R-Social Circle), passed with a vote of 51 to zero. It proposes to require that the individual who serves as either the treasurer or assistant treasurer of the Department of Transportation be a Georgia-licensed certified public accountant.
- SB 505 passed with a vote of 32 to 19 with the votes essentially broken along party lines. SB 505, by Sen. Cecil Staton (R-Macon), proposes to limit State Board of Transportation members to one five-year term on the Board.
- SB 529, by Sen. Chip Pearson (R-Dawson), passed 33 to 14 after a motion to table the proposal was made and failed with a vote of 14 to 31. This Bill proposes certain acts which will be considered as criminal abortion.
- SB 332, by Sen. Emanuel Jones (D-Decatur), passed with a vote of 43 to zero. It will require local boards of education to file an annual report by August 1 of each year with the Department of Education regarding disciplinary and placement actions taken during the prior school year, regarding any student determined to have brought a weapon to school.
- SB 399, by Sen. Judson Hill (R-Marietta), passed with a vote of 30 to 16. This Bill follows in the wake of President Obama's national healthcare legislation and proposes that no Department or agency in the State can implement any provision of federal health care reform legislation unless that Department or agency first provides a report to the General Assembly. The General Assembly would then have to authorize such implementation by statute.
- SB 521, by Sen. Dan Weber (R-Dunwoody), cleared the Senate with a vote of 42 to two. It clarifies "enrollment counts" to be made by schools when a student is dually enrolled. It adds that: "A student who is enrolled in a dual enrollment program other than as established in Code Section 20-2-161.1 shall be counted for the high school program or other appropriate program for each segment in which the student is attending a postsecondary course conducted at a facility operated by the local board of education, at a charter school as defined in paragraph (13) of Code Section 20-2-2062, or at a commission charter school as defined in paragraph (2) of Code Section 20-2-2081."
- SB 426, by Sen. Gail Buckner (D-Jonesboro), proposes that during any period of time in which a local school system is failing that any member of the failing school system's local board of education, who is named in a report by an accrediting agency as having violated policies or standards or caused a violation of policies or standards of the accrediting agency which action or inaction is a basis for the school system failing, will not be permitted to receive or be entitled to or earn a per diem reimbursement or salary for their service on that board. It does propose an appeal process, which would be made to the State Board of Education in writing. This Bill passed with a vote of 47 to zero.
- SB 515, the proposed "Educators' Salary Protection Act" by Sen. Preston Smith (R-Rome), passed with a vote of 35 to 11. It would prohibit the furloughing of teachers and other school system personnel by a local board of education "if such local board has an unencumbered amount on September 1 equal to or greater than 6 percent of that year's total operating budget in a single reserve fund or reserve account established pursuant to paragraph (5) of subsection (a) of Code Section 20-2-167."
- SB 482, by Sen. Ralph Hudgens (R-Hull), cleared his amendment to the 2009 Life Settlement Act legislation with a vote of 41 to zero. The amendment attempts to clarify that "Stranger Originated Life Insurance" arrangements so that they "do not include otherwise lawful life settlements or those practices set forth in subparagraph (C) of paragraph (11) of this Code section."
- SB 518, by Sen. Jeff Mullis (R-Chickamauga), passed with a vote of 44 to zero. It adds that all elementary and secondary schools receiving State funds must not only include a course of study in the background, history, and development of the federal and state governments and a study of Georgia county and municipal governments; and a course of study in the history of the United States and in the history of Georgia and in the essentials of the United States and Georgia Constitutions, including the study of American institutions and ideals, but that this course will also include a study of the Pledge of Allegiance to the flag of the United States and the Georgia flag in addition to other institutions and ideals.
- SB 143, by Sen. Robert Brown (D-Macon), passed with a vote of 44 to zero. The initiative amends Georgia's open meetings and records laws addressing instances of an action contesting an alleged violation of this provision with respect to final official approval or disapproval of the acquisition of real estate providing that such an action may be not be brought until minutes of the meeting at which the alleged violation occurred have been made public.
- SB 407 was addressed in the Senate after the initiative was taken from the table. SB 407, which proposes the cross-state selling of health insurance products, by Sen. Judson Hill (R-Marietta), passed with a vote of 29 to 16. Amendments were made adding back the health insurance mandates and an amendment to address liability and where suits can be brought regarding these out-of-state insurance products. Sen. Seth Harp (R-Midland) supported the mandates inclusion as did Sen. Renee Unterman (R-Buford).
House
The House took up a lengthy Calendar on Friday in a last minute push to get House bills over to the Senate. The House Rules Committee met several times during the course of the day, adding more initiatives or "fixing" initiatives headed to the Floor. A few highlights of the day include:
HB 478, authored by Rep. Jay Powell (R-Camilla), passed. It requires municipal court judges to be attorneys. Currently, these judges are not required to be attorneys; the non-attorneys presently serving will be grandfathered in.
HB 938, authored by Rep. Allen Peake (R-Macon), was passed 134 to 31 late in the night on Friday. As passed, HB 938 will prohibit individuals from using a cell phone while driving, while all ages will be banned from text messaging while driving. Navigation devices would be exempt under this language.
HB 1184, another hotly debated issue, passed out of the House late Friday night. Offered by Rep. Matt Ramsey (R-Peachtree City), HB 1184 will allow health insurance purchases across state lines. Many claimed this Bill will ignite competition and allow people more options in affordable healthcare. HB 1184 passed 108 to 55.
HB 236 was presented on the Floor by Rep. Charlice Byrd (R-Woodstock), but failed to receive the requisite constitutional majority and was lost 77 to 81. This Legislation proposed creation of a joint House and Senate Legislative Sunset Advisory Committee to review the mission, accomplishments, spending and direction of each department, agency, authority, and commission, and report their findings to the Georgia General Assembly. The committee would be composed of five members of the House of Representatives appointed by the Speaker of the House who shall also be members of the House Zero Based Budget Subcommittee of the Appropriations Committee, and five members of the Senate appointed by the President of the Senate. Any agency that has not held an open public meeting for a period of more than 12 months will be automatically abolished without further review. Agencies were proposed to be required to submit a progress report to the subcommittee within 90 days of their request.
HB 307, offered by Rep. Jim Cole (R-Forsyth), passed 141 to 23. This Legislation imposes a provider payment agreement on hospitals in the amount of 1.45 percent on their net patient revenue, for the purpose of obtaining federal Medicaid dollars. Provider payments will be paid quarterly, due at end of each fiscal month, with the first payment due by September 30, 2010. Each hospital will be required to keep records covering a three-year period for the purpose of determining the necessary payments required. Any hospital which fails to pay their provider payment will be assessed a six percent penalty for each overdue month. The Department of Community Health will in turn, withhold an amount equal to the provider payment and penalty from medical assistance due to said hospitals. Critical Access Centers, State Owned Hospitals, and Mental Health Hospitals are exempt from this legislation, which sunsets on June 30, 2013. An amendment was added on the Floor so that physician-owned, single specialty ambulatory surgery centers will not be subject to this fee.
HB 853, offered by Rep. Karla Drenner (D-Avondale Estates), proposes to require that all tanning bed facilities register with the State. The tanning salons must post a warning that is contained within the legislation, a button that summons outside help must be available for the user, and tanning beds must be cleaned after every use. HB 853 passed 129 to 28.
HB 889 passed the House 105 to 56 on Friday. This Bill, offered by Rep. Len Walker (R-Loganville), limits recognizance bonds for persons charged with certain crimes, defined as a ‘bail restricted offense,’ and entering a pretrial release program, a pretrial release or diversion program, or a pretrial intervention and diversion program. A judge, in his or her sound discretion and in appropriate cases, may still release a person on their own recognizance for one of the enumerated bail restricted offenses so long as it is not into one of the pretrial programs covered in the code section.
HB 1000, authored by Rep. Stephen Allison (R-Blairsville) passed 156 to one. HB 1000 provides for four changes to the current Code. 1) It makes it unlawful to possess any freshwater turtle except a fresh-water turtle obtained from a private pond with the consent of the owner of such pond. It shall be unlawful to transport, farm, or sell any fresh-water turtle or their eggs, except as authorized by the Department of Natural Resources. 2) It allows youth under the age of 16 to hunt deer with any legal firearm for hunting during primitive weapon hunts or primitive weapons seasons. 3) It increases the bag limit on hunting bear in Georgia from 1 to 3 bear per year. Up no two bear per managed hunt may be allowed on wildlife management areas without complying with the statewide bag limit. It will also legalize the hunting of bear less than 75 pounds. 4) It allows the Department of Natural Resources to regulate the application for a wildlife fertility control permit. Any person who violates any provision in the article shall be guilty of a misdemeanor and fined no less than $1,500 and no more than $5,000, imprisonment not exceeding 12 months, or both such fine and imprisonment.
HB 1040, authored by Rep. Jimmy Pruett (R-Eastman), allows individuals to have certain health maintenance activities performed by a friend, caregiver, etc. (who is not a family member) that would otherwise have to be provided by an RN or LPN because the individual cannot provide the activities to themselves due to disability. It seeks to give the consumer more choice and control over their own affairs. This Bill also provides that the proxy caregiver will be liable for his or her actions. The medical professional who authorized or trained that caregiver would be liable for failing to meet the applicable standard of care in assessing the proxy caregiver’s qualifications or capability, in assessing whether the health maintenance activities could be performed by a proxy caregiver, and in assessing whether the health maintenance activities could be performed outside a hospital or nursing home. A medical professional would also be liable for negligently training the proxy caregiver if the training deviated from the applicable standard of care and was a proximate cause of injury to the disabled person. HB 1040 passed 162 to zero. The Bill is to help Georgia meet its Olmstead requirements concerning individuals who may otherwise live in the community rather than in an institution.
HB 1055, offered by Rep. Kevin Levitas (D-Atlanta), also known as the "Fee Bill" passed the House on Friday, 100 to 57. HB 1055 updates fees throughout the Georgia code to ensure that they accurately reflect the cost of providing the service they are charging the end-user for. Some claimed that these fee increases are hidden tax increases.
HB 1104, proposed by Rep. Jimmy Pruett (R-Eastman), would extend the sunset relating to the maximum number of days a child may serve in a youth detention center. Youth in these facilities may serve up to 60 days after July 1, 2013 in these facilities. The current maximum is 30 days. HB 1104 passed 158 to one.
HB 1198, offered by Rep. Judy Manning (R-Marietta), passed 158 to three. HB 1198 changes the definition of “taxable nonresident” to provide for income taxation of income received by certain individuals that are not residents of Georgia in the taxable year. Currently, nonresidents are only taxable if they regularly, but not casually or intermittently, engage in activity for gain or profit in Georgia. This Bill will also cause those that casually or intermittently engage in activity in Georgia to become taxable nonresidents.
HB 1242 also passed the House by a vote of 158 to zero. HB 1242 provides that members of the State Transportation Board are public officers for the purposes of "The Ethics in Government Act" and will be subject to the financial reporting requirements contained therein.
HB 1283 passed the House 91 to 73 and proposes to develop a statewide policy for State agencies to review and modify, if necessary, all user fees. It provides principles for reviewing user fees. Finally, it removes those fees set by statute and places them under the agencies' purview.
HB 1284 passed 162 to zero. This Bill requires the Office of Planning and Budget to maintain a record of all user fees collected by any department, agency, or other budget unit. Further, it provides for publication of the record on the Open Georgia website.
HB 1364 passed the House 130 to 23. This Bill was offered by Rep. Carl Rogers (R-Gainesville) and provides that the Georgia Insurers Insolvency Pool shall be liable to claimants and electing insureds in emergency circumstances. For any electing insureds, whose net worth is less than $25 million, they must pay $5,000 to participate. Those whose net worth is greater than $25 million must pay $20,000. For the purpose of this Bill the term "electing insureds" is defined as, "any insured under a workers' compensation insurance policy that is impacted by an emergency circumstance. Such term shall include but not be limited to governmental insureds and other insureds under a workers' compensation insurance policy impacted by an emergency circumstance whose net worth exceeds $25 million as of December 31 of the year preceding the filing of a claim". "Emergency circumstances" is defined as, "a circumstance in which an association or industrial insured captive insurance company, which subsequently converted from a captive insurance company, has been declared insolvent prior to the effective date of this Code section."
HB 1405, authored by Rep. Larry O'Neal (R-Bonaire), passed 111 to 55. HB 1405 provides for the "2010 Special Council on Tax Reform and Fairness for Georgians," which will consist of twelve members – four economists, Governor Perdue, Senator Zell Miller, the chairperson of the Georgia Chamber of Commerce and the Georgia National Federation of Independent Business, and two members appointed by the Lieutenant Governor and two appointed by the Speaker. The Council will conduct a study of Georgia’s revenue structure and make a report of its findings and recommendations for legislation to the Speaker and the Lieutenant Governor not later than January 10, 2011. Some argued that it was not fair to establish such a Council when a new Governor will be elected in the coming fall and require that individual to abide by such new tax policy.
HB 1407, offered by Rep. Carl Rogers (R-Gainesville), passed 157 to four. HB 1407 would require the Department of Community Health to competitively bid out dental services a single administrator, changing the current standard that place medical and dental coverage into the care management organization for the state's Medicaid and Peachcare populations. This initiative is being pushed by the Georgia Dental Association.
HB 1221, authored by Rep. Larry O'Neal (R-Bonaire), passed 160 to three. HB 1221 brings Georgia’s sales tax code in compliance with the Streamlined Sales and Use Tax Agreement. This proposal will allow Georgia to participate in a program whereby remote vendors voluntarily collect use tax on purchases by Georgia residents and remit such taxes to Georgia. This Legislation provides ease in administration and compliance for businesses that wish to participate by creating uniform definitions in the sales tax law. Collection of use taxes by these remote vendors will provide Georgia businesses that must collect sales tax a more level playing field. However, it also opens up the entire sales and use tax exemption portion of the Code.
HB 1268, presented by Rep. Tom Knox (R-Cumming), passed 147 to two. HB 1268 extends the time period for continuation coverage (COBRA) under certain group accident and sickness insurance plans for 15 months. This change is done in conjunction with a federal act whereby a subsidy of 65 percent of the premium cost will be paid by the federal government. This will allow Georgians involuntarily terminated from a small business employer to have access to federal stimulus dollars to help pay their families' health insurance.
HB 656, authored by Rep. Terry Barnard (R-Glennville), passed late in the night by the unanimous vote of 160 to zero. It provides that a religious organization that meets certain requirements may quality as a self-insurer. This Bill has long been pushed by the Mennonites of Georgia. HB 656 allows certain qualified religious organizations to self-insure for motor vehicle liability insurance for all motor vehicles registered in this state that are owned or leased by members of such religious organization that obtains a certificate from the Commissioner of Insurance. Requirements to obtain a certificate are as follows: These religious organizations have been established since December 31, 1950, and its members hold a common belief in mutual financial assistance in time of need. The legislation requires that the religious organization be a recognized sect or division of a religious group which has been a recognized religious group for purposes of exemption from federal social security and Medicare taxes since December 31, 1970. Further, the religious organization will be required to filed with the Commissioner the required minimum security.
HB 1309, authored by Rep. Jay Neal (R-LaFayette), offered this proposal which would criminalize the use and sale of synthetic cannabinoids, or synthetic marijuana. This Bill opens Georgia's Dangerous Drug List. HB 1309 passed with a vote of 148 to two.
HB 1343, authored by Rep. Jay Powell (R-Camilla), failed to receive a Constitutional majority, 72 to 89. HB 1343 encourages the assessment of probation supervision fees by preventing excessive waivers. It seeks to encourage the amount of supervision fees actually collected from probationers. It also raises the monthly supervision fee from $23 to $30.
HB 1431 consolidates the Department of Administrative Services, the State Properties Commission, and the State Personnel Administration into one agency, the Georgia Services Administration. The new agency will be responsible for overseeing human resources shared services, property management, risk, state purchasing, surplus property program, and will serve as a hub for agency to agency services. The consolidation will incentivize savings by eliminating mandatory merit system assessments and allowing agencies to pay for only the human resources services they use. HB 1431 passed 91 to 67.
HR 1203, offered by Rep. Butch Parrish (R-Swainsboro), proposes to amend the Constitution to allow up to 100 percent of the revenues generated by the local sales tax for educational purposes to be used for maintenance and operations. Currently, the school board may only use the revenues for capital outlay projects of the school system, or the retirement of general obligation debt with respect to capital outlay projects. This will allow the school boards to have flexibility when deciding how to use their sales tax revenues. HR 1203 passed 141 to 19.
HB 1020 is the implementing Bill for House Resolution 1203, which proposes to amend the Constitution to allow up to 100 percent of the revenues generated by the local sales tax for educational purposes to be used for maintenance and operations. HB 1020 passed 136 to 19.
HB 1319, offered by Rep. Roberta Abdul-Salaam (D-Riverdale), passed 142 to 14. This Bill excludes 1percent local sales taxes levied in counties for MARTA after January 1, 2010 from the 2 percent cap on local sales taxes. This will allow Clayton County to hold a local referendum to decide whether to levy this local sales tax, thus allowing C-Tran to become part of MARTA. Excluded from the new levy will be sales of motor vehicles and sales of jet fuel to qualifying airlines at Hartsfield Jackson.
Other News
Staff of Gold Dome Report would like to extend their sympathies to the family of former State Senator Nancy Schaefer in the wake of the deaths of Sen. Schaefer and her husband Bruce.
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.