HB 59 – This Bill is the State sales and use tax exemption proposed for pharmaceutical samples. Specifically, this Bill ratifies the Governor's Executive Order dated August 29, 2008, which "suspended the collection of any rate of sales and use taxation as that tax applies to those controlled substances and dangerous drugs, as defined by Code Section 16-13-1, lawfully dispensable by prescription for the treatment of natural persons which are dispensed without charge to physicians, dentists, clinics, hospitals, or any other person or entity located in Georgia by a pharmaceutical manufacturer or distributor and the collection of any such taxes on controlled substances and dangerous drugs, as defined by Code Section 16-13-1, lawfully dispensed without charge for the purposes of a clinical trial approved by an institutional review board which has been accredited by the Association for the Accreditation of Human Research Protection Programs." The legislation was presented by Sen. Chip Rogers (R-Woodstock) and sailed through the Senate with a vote of 48 to zero.

 

HB 427 was the second proposal on the Calendar and was presented by Sen. Pearson (R-Dawsonville). It amends Georgia's current law concerning "enterprise zones" and the criteria considered for "pervasive poverty." Sen. Brown (D-Macon) raised concerns with this change which would permit more property to be considered in these zones by broadening the definition. In the end, the measure passed by a vote of 39 to 9.

 

HR 279 also cleared the Senate today with a vote of 49 to zero. This Resolution was presented by Sen. Grant (R-Milledgeville) and is the annual update of utility easements with "the granting of nonexclusive easements for operation and maintenance of facilities, utilities, and ingress and egress in, on, over, under, upon, across, or through property owned by the State of Georgia." There was no discussion relating to this update.

 

 

The House honored Dr. Bruce Stuart Allen on the occasion of his appointment as the first Honorary Consul of the Principality of Liechtenstein today on the Floor, as well as welcoming Her Excellency Claudia Fritsche, the Ambassador of Liechtenstein to the United States of America to the Floor of the House.

 

The House took up a light calendar today, passing HR 565 by a vote of 159 to zero. HR 565, offered by Rep. Harbin (R-Evans), encourages all Georgians to be aware of blind pedestrians and their rights. The Department of Driver Services is also directed to assess their current efforts to inform new and experienced drivers that persons with visual impairments have the right of way at all times. Rep. Harbin explained that there has been an increase of blind pedestrians being struck by vehicles due to the fact that newer "smart cars" and hybrids are quieter running vehicles.

 

 

Sen. Hudgens (R-Hull) worked through his agenda after a few items caused a couple of "stalls." 

 

HB 305, the Bill by Rep. Knox (R-Cumming), passed. It reduces the number of lives necessary to sell life insurance to employees. Presently, a company has a requirement to have 75% of the employees participating; this Bill eliminates that requirement.

 

HB 410, also by Rep. Knox (R-Cumming), came before the Committee. The original language in this Bill was passed in 2008. Rep. Knox was attempting to clarify some of its language which makes health savings accounts and high deductible health plans available with incentives offered for their purchases by removal of premium taxes. A "sunset" provision was included that was dropped in the legislation from 2008 and the initiative makes clear that these types of policies are those defined by the Internal Revenue Code. Numerous questions ensued by Sen. Rogers (R-Woodstock) and other members of this Committee. Eventually, a Subcommittee was named to work on the Bill further. Sen. Rogers (R-Woodstock) and colleagues Sens. Moody and Ramsey will work on this proposal and then report back to the full Committee.

 

HB 412, also by Rep. Knox (R-Cumming), had an easier time moving through the Committee. This Bill clarifies that employers may make contributions to health reimbursement accounts without being considered as "group insurance." This Bill passed with no changes.

 

HB 330, by Rep. Coan (R-Lawrenceville), brought the annual Workers' Compensation Insurance proposal to the Committee. It contains several ideas including the use of email for decisions by Administrative Law Judges; email use for delivery of appellate decisions; amends Georgia's law making clear that if neighboring states' workers compensation law is not accepted in their states then there will be no reciprocity for their employees in Georgia; employees' confidentiality will include past medical history; and clarification on final settlement payments. The Workers Compensation Advisory Council rose in support of this Bill. Sen. Wiles (R-Marietta) raised concerns relating to when an email notice was "received" and how to make such proof of that receipt. Attempts were made to draft some language on the fly to insert into the proposal to satisfy Sen. Wiles' concerns; however, it was felt that perhaps it would be better to move the proposal forward and keep working on language. This Bill passed.

 

HB 550, by Rep. Meadows (R-Calhoun), also cleared this Committee. It permits an additional mechanism for a mutual insurance company to convert to a stock insured entity.

 

 

Sen. Thomas (R-Dalton) and his Committee moved out two Resolutions today. The first, SR 505, by Sen. Adelman (D-Atlanta), would "urge" Congress to reduce the 24 months required now for the waiting period for disabled individuals to begin receiving Social Security disability payments. Amendments were made to the proposal which originally called for the elimination of the 24 months; some were concerned about the unintended consequences which might occur if this were eliminated in its entirety and that it might virtually bankrupt Medicare and Social Security. Texas recently passed a Resolution on this issue and other states, including North Carolina and Massachusetts, are considering similar ideas. The Governor's Council on Developmental Disabilities supports the Resolution.

 

The second proposal was SR 476, by Sen. Orrock (D-Atlanta), which also passed with a favorable recommendation. It would create a Senate Study Committee for Advance Directives Assessment, Planning, and Oversight. The idea is to not only look at "advanced directives" but also the use of electronic medical records. Sen. Grant (R-Milledgeville) inquired if his concern for the need of a psychiatric advance directive might also benefit by this Study; Sen. Orrock answered in the affirmative.

 

 

The Senate Finance Committee met today, passing out the following House Bills.

 

HB 46, presented by Rep. Roberts (R-Ocilla), seeks to ratify an Executive Order of the Governor's that exempted dyed fuels from sales and use taxes. Rep. Roberts stated that if this measure does not move through the Senate, then the State will have to retroactively collect this tax. HB 46 passed unanimously out of the Committee.

 

HB 116, Rep. Stephens' (R-Savannah) measure to extend the sunset on the exemption of aircraft repair parts from sales and use taxes, was presented. This exemption helps out many aircraft manufacturers in Georgia, including Gulf Stream, located in Brunswick.  This Legislation passed out of the Committee unanimously.

 

Another piece of Legislation that ratifies an Executive Order is HB 121, offered by Rep. Cole (R-Forsyth). HB 121 ratifies the June 2008 Executive Order suspending the increase of motor fuel taxes. Without this Legislation, the State would have to again retroactively collect the $60 to $70 million in taxes.  HB 121 also passed unanimously out of the Committee.

 

Rep. Graves (R-Ranger) presented HB 48, which would create a one year suspension of the collection of business start-up fees. This measure would hopefully create 80,000 new companies in the State. A quarterly credit towards unemployment insurance would also be given to businesses. The sales tax deposit would additionally be eliminated under this Bill, refunding those companies for which the Department of Revenue holds a deposit. The minimum employees required for workman's compensation and unemployment insurance is also changed from three employees to ten. This change would remain effective for two years.   HB 48 also got a favorable report from this Committee and now moves to Senate Rules Committee. Sen. Williams (R-Lyons) referred to this Bill as Santa Claus coming to the small business community with these credits.

 

 

The House Rules Committee set the following calendar for the Thirty-Second Legislative Day:

 

HR 334, authored by Rep. Jerry Keen (R-St Simons), urges the United States Congress to oppose any efforts to enact the Freedom of Choice Act or any similar legislation aiming to remove the power of governments to restrict access to abortions.

 

SB 80, offered by Sen. Bulloch (R-Ochlockee), would require food processors to report lab results to the Department of Agriculture within 24 hours of receiving them. These records must be kept by the processor for two years.

 

 

 

To virtually a packed "house," Rep. Channell (R-Greensboro) presented his Subcommittee's proposal for the FY 2010 Budget. Rep. Channell, the legislator who fathered PeachCare and has been a proponent to protect Georgia's hospitals, especially the rural hospitals, took on the Governor's proposals by proposing that the House restore the serious cuts to hospitals and other providers. Thus, using the correct FMAP rate, Rep. Channell and his Subcommittee restored the 10% cuts to hospitals; 6% cuts to providers (including physicians, audiologists, occupational therapists, physical therapists, speech-language pathologists, and others). There were slight cheers from the back of the room. While these cuts were restored, the provider rate enhancements, passed in 2008 and contained in the FY 2009 Budget, have still not been funded. 

 

Nursing homes made out really well in the proposal as well. They are proposed to get $7 million for funding "fair rental value" and an additional $1.79 million for "quality incentive program" funding.

 

Federally Qualified Community Health Centers are proposed to receive $2 million in State dollars.

 

The Subcommittee also amended the funding proposal for the State Health Benefit Plan. In the Governor's proposal, he had suggested having State employees (including teachers and retirees) pay 30% of the health plan costs and the State would pick up 70%. With the already imposed rate increase for this health insurance to these employees and their dependents, they would virtually be asked to pay a 35% increase. This Subcommittee reduced that amount so that employees would pay 25% and the State would take up the other 75% of this funding.

 

 

The Subcommittee met today to address changes in the FY 2010 Budget. Across the board, state agencies will experience a 25 percent decrease in the employer contribution to the State Health Benefit Plan. The Georgia Council for the Arts will experience grant money cut in half from the FY 2009 Amended Budget. The Department of Driver Services will also experience a decrease in funding since the Department has already implemented the digital licensing system; however, the House will keep $1.9 million in the Department of Driver Services for the funding of driver education programs.

 

Chairman Rogers (R-Gainesville) also cited that the Homeowner's Tax Relief Grant most likely will not be funded after the 2010 Budget is amended during the next legislative session given new revenue estimates.

 

 

Chairman Lindsey (R-Atlanta) provided the Subcommittee with the House's recommendations for FY 2010 Budget.

 

The school nurse program will be funded, as well as salary increases for teachers who become Nationally Certified. Additionally, the RESA and ETTC Programs will also be preserved in the FY 2010 Budget. Numbers from the Graduation Coach Program have also begun to show improvement on the drop-out rate, and thus, this initiative will continue to receive full funding.

 

Math and Science Coaches will be reflected as a separate program from the general Academic Coach Program.  $200,000 will be shifted in Agriculture Education, associated with teachers' salaries.

 

The Charter School Commission has been given an additional $140,000 for start-up school needs. Georgia Virtual Schools will experience an extra 500 slots over the amount that Governor Perdue recommended.

 

$1.5 million has been added to the Special Needs Scholarship Program to meet the needs as outlined by the Department of Education.

 

One of Governor Perdue's initiatives that began in 2006, $100 gift cards for teachers, has been eliminated from the FY 2010 Budget.