Issues Surround Transportation, Tobacco Tax,
and Pending Bills
Swirling rumors surrounded the halls concerning another idea or two on how to realign the organizational structure and funding control for the State's transportation efforts. Perhaps one of the newer ideas will likely give Governor Perdue what he is seeking; however, Lawmakers appear to want more control over the purse strings. The Senate disagreed with the House's version of HB 277.
Tobacco tax advocates are still pressing for "Pass the Buck" to add an additional $1.00 in excise tax to a pack of cigarettes while their nemesis, considered by some as an "evil empire" (the lobbyists for the major tobacco companies), are trying their best to keep these efforts for an increased tax at bay. So far, major tobacco appears to be winning the battle despite the ever increasing decline in State revenues. Georgia currently imposes $.37 in excise tax on a pack of cigarettes. The thought is that perhaps this extra dollar would be tacked on to the "little cigar" Bill, HB 355, which is sitting in the Senate Finance Committee. However, that action has not taken place.
Both House and Senate Rules Committee meetings are getting more intriguing as authors of pending initiatives are struggling to push their ideas across their respective finish lines by seeking approval in their remaining chambers. Late yesterday, the Senate Rules Committee met in a crammed room that some would think that Georgia's Fire Marshal might impose some sanctions. House Lawmakers were there advocating that their bills be placed on one of two remaining calendars in the Senate while lobbyists were perched in the rear of the room seeking to hear final resolution of the Senate's Calendar for Day 38. Sometimes, these meetings tend to be the "best show" in the Capitol.
Floor News
Senate
Today, the Senate "insisted" on its position on HB 228, the Bill proposing the reorganization of the Department of Human Resources. This Legislation is now headed to Conference Committee as Conferees have now been appointed. House Conferees are: Rep. Mark Butler (R-Carrollton); Rep. Mickey Channell (R-Greensboro); and Rep. Jim Cole (R-Forsyth). Senate Conferees are: Sen. Greg Goggans (R-Douglas); Sen. Johnny Grant (R-Milledgeville); and Sen. Renee Unterman (R-Buford).
Twenty-six Bills and Resolutions, many of those dealing with local matters, comprised the Senate's Calendar today. Some highlights of the day's work included:
- HB 68, the initiative by Rep. Chuck Sims (R-Ambrose) concerning pre-need funeral contracts and direction for the disposition of a person's body after that individual's death, passed by a vote of 51 to zero after being sent back to the Senate Committee on Regulated Industries and Public Utilities for the second time for further revisions.
- HB 123, by Rep. Matt Ramsey (R-Peachtree City) regarding amendments to O.C.G.A. 16-6-4 and what is considered as "child molestation and aggravated child molestation" by adding the action of a person who "by means of an electronic device, transmits images of a person engaging in, inducing, or otherwise participating in any immoral or indecent act to a child under the age of 16 years with the intent to arouse or satisfy the sexual desires of either the child or the person," was passed by a vote of 53 to zero.
- HB 195, by Rep. Mark Williams (R-Jesup), also passed by a vote of 49 to zero. This Bill will allow persons who serve on electric membership corporations to serve as jurors in cases involving the electric membership corporation unless the judge determines a bias or prejudice against that entity.
- HB 254, prepared by Rep. Peake (R-Macon) would provide that the Department of Human Resources must attempt to locate the adult relatives of a child removed from the custody of his or her parents as well as provide notice and requires that the court must disclose the adult relatives of such child, passed by a vote of 50 to zero.
- HB 334, by Rep. Knight (R-Griffin), passed 48 to 1. It states that the Commissioner for the Department of Revenue may require any person or business owing more than $500.00 in connection with any return, report, or other document pertaining to sales tax, use tax, withholding tax, or motor fuel distributor tax required to be filed with the Department for tax periods beginning on or after January 1, 2011, must pay those taxes to the State by electronic funds transfer to assure the State the funds are collected on the required date. The Bill would also allow the Commissioner, in emergency situations, the ability to authorize alternative means of payment in funds immediately available to the State on the date of payment.
- HB 248 passed the Senate with a vote of 48 to 4. It also had a Floor Amendment (which changed a verb tense – "does" to "did") added to the Committee Substitute. This Legislation would enact the "Georgia Voluntary Remediation Program Act" in Title 12.
- HB 261, by Rep. Stephens (R-Savannah), would permit a one-time income tax credit equal to 1.2% of the purchase price or $3,600, whichever is less, to individuals who purchase a home in O.C.G.A. § 48-7-29.17. There are some requirements outlined in the law. This property purchase eligible for the credit must basically be: a single-family structure that is a new residence or a previously occupied residence that was for sale prior to the effective date of this Code section and is still for sale after the effective date of this Code section; or a single-family structure that is: "(A) An owner occupied residence with respect to which the owner's acquisition indebtedness, as defined in Section 163(h)(3)(B) of the Internal Revenue Code, determined without regard to clause (ii) thereof, was in default on or before March 1, 2009; or (B) A residence with respect to which a foreclosure event has taken place and which is owned by the mortgagor or the mortgagor's agent." Two adopted Floor amendments were made. One adds, as an income tax check-off, the ability for individuals to give some of their income tax refund to National Multiple Sclerosis Society Georgia Chapter. The second amendment makes this income tax credit also applicable to purchases of condominiums. This Bill passed with a vote of 42 to 4 and now must get agreement with the House with the new changes.
- HB 410, the Legislation by Rep. Knox (R-Cumming) which provides for an exemption from local insurance premium taxes on premiums for certain high deductible health plans, passed with a vote of 41 to 6.
- HB 495 passed with a vote of 49 to zero. Rep. Lane (R-Darien) authored this Bill concerning the appointment, compensation, term, authority, qualifications, training, and limitations of associate probate court judges, which has been substantively revised since it left the House. The House must now agree to all the changes made or work out the differences in a Conference Committee.
House
Like the Senate, the House insisted on its position to HB 228, the Department of Human Resources reorganization Bill. Conferees plan to meet soon to begin hammering out differences.
Below is a summary of some additional Floor action:
- SB 46, corrects typographical, stylistic, capitalization, punctuation, and other errors and omissions in the Official Code of Georgia. The annual Code revision Bill passed 153 to zero.
- SB 47 amends the Official Code of Georgia Annotated, relating to elections, for purposes of correcting typographical, stylistic, and other errors and omission in Title 21 of the Code. SB 47 passed 158 to zero.
- SB 48 amends Title 47 of the Code, relating to retirement and pensions, in order to correct typographical, stylistic and other errors and omissions. SB 48 passed 162 to zero.
- SB 61, by Sen. Hudgens (R-Hull), establishes the "Life Settlements Act." It provides for oversight and regulation of life settlement contracts and requires Life Settlement Brokers to be licensed and regulated by the Georgia Department of Insurance. Further, it defines the term “stranger originated life insurance” (STOLI) and makes it illegal in Georgia. STOLI is defined as: a series of acts or a practice to initiate a life insurance policy for the benefit of a third-party investor who, at the time of policy origination, has no insurable interest in the insured. Stranger originated life insurance acts or practices include, but are not limited to, cases in which life insurance is purchased with resources or guarantees from or through a person or entity who, at the time of policy inception, could not lawfully initiate the policy himself or herself or itself, and where, at the time of inception, there is an arrangement or agreement to directly or indirectly transfer the ownership of the policy or the policy benefits to a third party. Trusts that are created to give the appearance of insurable interest and are used to initiate policies for investors violate insurable interest laws and the prohibition against wagering on life. The Bill also addresses what STOLI arrangements do not include. SB 61 passed 161 to zero.
- SB 69, authored by Sen. Unterman (R-Buford) as a result of the findings of her Study Committee, addresses responsibilities for persons such as teachers, counselors, and nurses, who are required to report suspicions of child sexual exploitation. Current law provides a report must be made when one of these required reporters suspects a child is being prostituted or used in the production of child pornography by a parent or guardian. The Bill would alter the law so that the required reporter would make a report of suspected sexual exploitation of a child regardless of whether the exploiter is a parent or guardian. SB 69 passed 63 to 1.
- SB 89, by Sen. Butler (D-Stone Mountain), legalizes the consumption of food and beverages at Georgia’s rapid rail stations and intermodal bus stations at the discretion of each transit. This Bill amends O.C.G.A. § 16-12-20 relating to acts prohibited in public transit buses and rapid rail cars or stations. The section is revised so that prohibited items do not exclude all resealable beverages (currently only bottled water is allowed). The revision also states that prohibitions on food and beverage consumption will not apply to a rapid rail station or intermodal bus station unless the public transit system operation that station adopts a policy prohibiting the consumption of food and beverage in that station. SB 89 passed 165 to zero.
- SB 123, by Sen. Hawkins (R-Gainesville), regulates and permits licenses to pharmacy benefits managers by the Commissioner of Insurance including license requirements and filling fees. This Bill passed 160 to 1 with no amendments.
- SB 155, offered by Rep. Coan (R-Lawrenceville), on behalf of Sen. Pearson (R-Dawsonville) relates to the best management practices for control of soil erosion and sedimentation and minimum requirements for rules, regulations, ordinances, or resolutions in order to change certain provisions relating to 25 foot buffers along state waters. SB 155 passed 106 to 58.
- SB 165 authorizes the Department of Community Health to obtain income eligibility verification from the Department of Revenue for Medicaid and the PeachCare for Kids Program applicants. Sen. Goggans (R-Douglas) authored this Bill, and it passed 155 to 7, as amended.
- SB 170, authored by Sen. Adelman (D-Decatur), prohibits certain companies that have certain business operations in Sudan to bid on or submit a proposal for a State contract. SB 170 passed 160 to zero.
- SB 213, by Sen. Wiles (R-Marietta), amends O.C.G.A. § 51-1-11, relating to products liability actions, by precluding a manufacturer of an alleged defective product from being found liable for an industry-wide products liability claim or public nuisance claim on the basis of the manufacturer’s market share. No amendments were made to the Bill, which passed out of the House 164 to zero
New Legislation
SB 284 – Sen. Thompson (D-Duluth) offered a new Code Section at O.C.G.A. § 50-13-24 to provide for an award of attorneys' fees by an administrative law judge to the prevailing party, as well as the expenses of the litigation in an initial or final decision in a contested case. However, a respondent may also be awarded reasonable attorneys' fees and expenses only upon showing that the action was frivolous, unreasonable, or without foundation or if was interposed for delay or harassment. If, upon judicial review of any final decision in a contested case, issued where the court rules in favor of the petitioner, then the court may have discretion in rendering an award of attorneys' fees and expenses to that petitioner. A prevailing respondent can get the attorneys' fees and expenses if he or she shows that the appeal was frivolous, unreasonable or without foundation or if it was interposed for delay or harassment. The attorneys' fees and expenses in these administrative proceedings may be requested upon motion.
Committee News
Senate Rules Committee
The Senate Rules Committee set a lengthy calendar of 37 Bills for the Thirty-Eight Legislative Day. Here are a few highlights of Bills included on that Calendar:
HB 429, by Rep. Cooper (R-Marietta), provides protective orders for pets in family violence situations.
HB 29, by Rep. Jacobs (R-Atlanta), provides for electronic service of pleadings subsequent to the original complaint and for presumptions regarding service of pleadings by e-mail on an attorney. It also provides for a stay of discovery when a motion to dismiss is filed.
HB 457, by Rep. Peake (R-Macon), changes the definition of "disabled adult" to mean; a person 18 years of age or older who is not a resident of a long-term care facility, as defined in Article 4 of Chapter 8 of Title 31, but who is mentally or physically incapacitated or has dementia or a related cognitive impairment. HB 457 also provides penalties for abuse, neglect, or exploitation of any disabled adult or elder person.
HB 243, by Rep. Pruett (R-Eastman), would repeal the salary increase for teachers receiving National Board Certification.
HB 245, by Rep. Willard (R-Sandy Springs), changes provisions to delinquent and unruly children by raising the limit for the maximum amount of time a child can be sentenced to a detention center to 60 days.
HB 368, by Rep. Stephens (R-Savannah), is the annual dangerous drug update Bill, to allow for newly approved FDA drugs to be meshed into the Georgia Code.
HB 581, by Rep. Coan (R-Lawrenceville), enacts the "Georgia Works Job Creation and Protection Act of 2009."
HB 475, by Rep. Cooper (R-Marietta), relates to the "Georgia Registered Professional Nurse Practice Act," and revises certain education and training provisions relating to requirements for registered professional nurses and licensed professional nurses who receive their education in nontraditional nursing education programs.
HB 129, by Rep. Lindsey (R-Atlanta), provides a sales and use tax exemption for the construction of zoological institutes.
HB 358, by Rep. Martin (R-Alpharetta), extends the exemption on sales and use taxes for prepared food and beverage when those foods are donated to a qualified nonprofit for hunger and disaster relief.
Senate Health and Human Services Committee
HB 217, as passed from Committee today, allows the practice of administering influenza vaccines without a prescription. Rep. Pruett (R-Eastman) explained that the Attorney General had made a ruling that was improper and without this Legislation some of the many current practices in providing flu vaccine would be illegal. This Bill also contains language with the Georgia Hospital Association had negotiated with the Bill's author and the Governor's Office. This version of HB 217 provides protocols for all vaccinations allowing RN's and doctors to allow others to give shots under their supervision. It also permits a pharmacist to give a flu shot. Hospitals would be allowed to administer the flu vaccine to everyone in the hospital, with no limitations. In the case of pandemic flu outbreaks, the Governor could relax the terms of the administration of the vaccine. First Responders, including Georgia Power, would be allowed to administer the vaccine. Georgia Power has an inventory of the vaccine now, since they are first responders.
Ken Elliott, with Flu-Mist, spoke in support of widening the definition of "vaccine" to include other flu treatments. He stated that Flu-Mist tested their product on over 30,000 people without a single adverse reaction.
Robert Highsmith spoke on behalf of Maxim Healthcare Services. Maxim's nurses provide a wide variety of services, including the administration of the flu vaccine. The company has also administered over 60,000 flu shots with no adverse reactions.
An Amendment was added to the Bill that would require any child, under the age of 18, to receive parental consent before receiving the vaccine. The proposal to expand the definition of "vaccine" failed.
HB 217 received a "do pass" recommendation from the Committee.
Senate Finance Committee
Several proposals were on the Senate Finance Committee agenda late this afternoon. The first Bill up for discussion was HB 63 presented by Rep. Ehrhart (R-Powder Springs). [Note, no Substitute was available for verification of these inclusions in the legislation and is merely based on what was heard in the Committee.] Rep. Ehrhart indicated that Sen. Balfour (R-Snellville) would be the Bill's Senate sponsor. This Legislation relates to tax allocation districts or "TADs." Rep. Ehrhart indicated there was a need to reauthorize Redevelopment Powers Act. At this meeting, he produced a new Substitute on HB 63. One of the current issues has been an overbroad definition of what property is "blighted". It is not meant to encompass all property.
Section 1 of the Legislation repeals the present redevelopment powers act repealed. Section 2 inserts new information. In Section 3, it provides non-recourse financing so that the public is not on the hook for the debt. The State will derive the benefit but there must be a "needed" purpose. One of the purposes for this redevelopment now includes the arts. Redevelopment area redefined so that it is very specific. Several other terms are defined in the new Substitute including "capital cost" as well as the "cultural assets public purpose is outlined." Rep. Ehrhart explained it was necessary to create a constituency. Additionally, the legislation addresses a school board issue with the impact analysis, which must be done but can be done by an outside consultant. So far, there has been no push back from school boards on this idea. Additionally, school boards do not have to reauthorize a TAD as the new law permits continuation. It adds a requirement about permission to pay off debt early. Also included in Section 3 is language addressing payments in lieu of taxes ("PILOTs"). It further permits the ability to lease to a development authority. Rep. Ehrhart explained that all taxing authorities must sign off before a PILOT. Sen. Johnson (R-Savannah) expressed interest in the grandfathering of TADs approved by school boards and county.
Clint Mueller, with Association of County Commissioners ("ACCG"), spoke in favor of HB 63. Sen. Heath (R-Bremen) moved "do pass" on the Committee Substitute which received a second from Sen. Goggans (R-Douglas). The motion carried.
HB 349 was presented by Sen. Reed (D-Atlanta). Sen. Reed explained that this was a piece of legislation originally drawn by Rep. Burkhalter (R-Johns Creek). It provides for tax exemptions for the Civil and Human Rights Museum. Sen. Reed explained that the project would have a $216 million construction impact which would give Georgia a true museum role –with the addition of this museum next to the World of Coke, Aquarium and Children's Museum. The addition of this museum could result in millions of revenue to the city. Sen. Johnson (R-Savannah) said it was a "good bill." Sen. Johnson asked for Sen. Reed's help getting the bill dealing with the Savannah Civil Rights Museum out of the House. The Savannah project has cost $125 million and they are half way there with the funding with the plan of setting aside $25 million for an endowment. Sen. Johnson made the motion to "do pass" HB 349 and the motion carried.
Next up was HB 304 by Rep. Porter (D-Dublin). Rep. Porter indicated that Sen. Tolleson (R-Perry) would handle this Legislation on the Senate Floor. Rep. Porter explained that the Bill came about because of a situation in Laurens County with a homeowner finding a tax assessor on his property. The Bill proposes to require tax assessors to give property owners reasonable notice on when they plan to assess the property. Rep. Porter further noted that the Bill would help further the protection of private property rights. Rep. Porter stated that notice was originally proposes as "written or other reasonable notice," but understands that Sen. Heath (R-Bremen) has some amendments. Sen. Heath wanted to clarify that it was not solely limited to the county tax assessors but also their agents – such as employees or contractors. He also wished to make clear that the purpose of being on the property was for "conducting official business" of the tax assessor's office. There were some questions concerning about "owner or occupant" and the Senators wanted to make clear that owners of the property were to be notified as well as occupants. A motion was made on the amendments proposed which carried and the Substitute, as amended by the Committee, was then passed.
HB 56, by Rep. Willard (R-Sandy Springs), was presented by Rep. Jay Powell (R-Camilla). Rep. Powell explains that the initiative addresses loss negotiations. Every ten years after a census, municipalities and counties reallocate loss proceeds among themselves. Sometimes this activity breeds hard feelings. Some hold out and refuse to negotiate. If no reallocation occurs, then the loss will lapse. Some entities prefer in some instances that the money lapses. Rep. Powell explained that this Bill would remove the problems from existing relationships. It proposes that after nonbinding arbitration then parties could submit to binding arbitration. Rep. Willard calls this "baseball arbitration" where the parties each give their best proposal and the arbitrator then picks the best. Added to this legislation was language by Rep. Jerguson (R-Woodstock) starting at Section 5 of the Bill. His language creates a TLOST or TSPLOST type of program. At present, three counties do not have the TLOST or TSPLOST: Gwinnett; Cobb; and Cherokee. Yet, each of those counties has transportation needs and desire. Rep. Jerguson staed he had been asked why that he did not propose local legislation for this. He explained that one percent sales tax for site specific projects for period of time for all would be best; he worked with ACCG on this issue. If passed, then any county that has no TLOST then could implement this. Rep. Jerguson explained that the TSPOST Bill proposed by the Senate actually dovetailed with this Bill. Counties could then do both. Both the Georgia Municipalities Association and ACCG support the Bill. A motion for this Bill to move forward was made by Sen. Johnson which carried. Sen. Rogers (R-Woodstock) will carry HB 56 on the Senate Floor.
There was some slight drama concerning HB 639, by Rep Dollar (R-Marietta). The initiative had been before the Committee previously and was tabled. At the meeting today, there was an attempt to remove the proposal from the table but it received no second on the motion. Thus, the idea remained on the table. Meanwhile, Rep. Dollar had left the Committee room. Later in the meeting, HB 639 was moved to be removed from table by Sen. Shafer (R-Duluth). His motion carried. A new Substitute was offered by Sen. Rogers (R-Woodstock) on the initiative, which proposes that the funds from the sales of special license plates benefiting the Atlanta Youth Foundation and Georgia Aquarium. A motion was made to move the proposal forward which carried.
One of the most discussed measures this Session was also before the Committee. HB 480, by Reps. Geisinger (R-Roswell) and Rice (R-Duluth), was presented. Thus far, there have been a tremendous number of individuals who have worked on the Bill. In addition to the authors, Rep. O'Neal (R-Bonaire) and attorney Les Schneider along with Department of Revenue, ACCG, Georgia Automobile Dealers Association, the School Board Association have worked on HB 480. The Legislation proposes to remove all sales tax from motor vehicles as well as ad valorem taxes replacing those taxes with a one-time title fee which would be capped at $1500. This fee would be divided with the State and local governments. It was explained that there presently was a lot of "gaming" of the current system with not all taxes being collected. Further, many individuals found the "Birthday tax" to be distasteful. This title fee would apply in situations of a transfer of a title from one owner to another; it would not apply to transfer of title in replacement or salvage titles.
In the proposed Bill, it addresses casual sales of motor vehicles as well as eliminates sales and use taxes and ad valorem taxes on motor vehicles after January 1, 2010. It also addresses exceptions for death of a spouse and immediate family member, providing a fair way to address this fee by permitting an "opt in" or continuation of the ad valorem. The Bill also addresses the titling of cars brought into Georgia. In those situations, individuals would be required to pay the title fee but not ad valorem taxes. Again, there are some exceptions such as for veterans and government vehicles. The proposal also addresses rental car companies including an exception for small companies which are proposed to be charged a title fee of $50. Rep. Rice explained that a large rental company, such as Enterprise, will essentially have an increase of $.15 per car per day. The fee splitting between the State and local governments was essentially written by ACCG and GMA and would address issues relating to MARTA and others. There would be an appeal procedure as well. The State's portion of the fee would go towards funding trauma care with up to $150 million per year for trauma (including a base of $100 million annually). Rep. Rice shared a fiscal note with the Committee.
Sen. Rogers commended everyone's efforts noting that it had been enormous. One amendment was offered for the Committee to consider by Rep. Rice for GADA permitting loaner vehicles to be titled when sold.
There was some public testimony on this Bill. GATO and the County Tax Commissioners have administrative issues with the proposal. They cited problems with the sales to folks outside of counties and vice versa. They further expressed that the Bill would cause them more administrative work and cause them to rewrite computer programs. There were questions concerning once fees were paid, what happens if the check for payment might bounce. They fear that the State is made whole and county ends up with not-sufficient fund check. They also claimed that there was no clarity in how to handle disbursements. These groups asked for the Bill to be tabled so that issues could be addressed.
Clint Mueller, with ACCG, confirmed the numbers of hours expended thus far on this legislation. He agreed that it was a great idea noting that a simpler process would be good for the public. However, he wanted to continue to work on it. ACCG's Board of Managers did not take a position but did decide that they were not certain if the Bill was ready this Session because of the administration problems posed. Additionally, ACCG has some concern over the fiscal note. There are positive revenues shown in years one through three; after that, revenue goes into decline. The Counties are concerned about how to replace lost revenues. Modeling of data was done by Cobb, Cherokee and Gwinnett Counties and found that it was difficult to do because of so many assumptions. Mr. Mueller urged that the Senators at least remove the sunset until percentages are equal to what they are today. He also noted that the methodology of how local funds are to be disbursed is also a problem and there needs to be a base year.
Sen. Heath (R-Bremen) expressed, that to make this idea work, it had to address casual sales. His concern was how to better capture the data on these types of sales. It was explained that perhaps Georgia State University could ferret out the data by conducting a six-month study.
Gwin Hall, with GMA, explained that GMA has not resolved its concerns, especially the likely impact on cities' revenues. The GMA Legislative Policy Council wants further study over the summer, including better data on casual sales.
The school boards across Georgia are still concerned about the Bill. It may help relieve pressure on property tax, but there is some concern that it might later increase the millage rate.
The supporters of the proposal include the Georgia Association of EMS, Georgia Hospital Association and Children's Healthcare of Atlanta.
In closing the discussions on the Bill, Les Schneider, who represents no one in particular in the debate, expressed that this calculation was "not rocket science." He also urged the Committee not to let money get in the way of better policy. Mr. Schneider explained that they would not know with certainty the impact of this Bill until cars are bought and sold under the system. At that time, there would be real economic data. So, if the Bill is not working, then it could be changed. Presently, there is an estimated 900,000 casual sales annually of motor vehicles in Georgia.
Sen. Goggans (R-Douglas) expressed that he was passionate about trauma but disagrees on how its funding is accomplished. He expressed the need for a dedicated funding source. Sen. Goggans concurred that the Bill is a great idea. Sen. Heath stated that it was not an easy process and seemed too good to be true. He did ask if the modeling of the numbers had taken into account the average length of time owners keep their vehicles; the answer was no. However, it was known that in Georgia cars are kept in service an average of 9.5 years. He also asked if there was any local responsibility on the money they received; were they to spend the money in that year or would there be sufficient turnover. Those questions remain unanswered but there is no "responsibility" placed on the local governments in the Bill proposed.
After this lengthy discussion, the Bill was moved forward.
HB 483 was presented by Rep. Roberts (R-Ocilla). This initiative started as "housekeeping" measure but now has two more amendments. At this juncture, the Senate Majority Leader added a section. The Bill addresses the 2001 law pertaining to the homestead exemptions for those persons ages 62 and older requiring the calculation based on "net." Additionally, it permits reasonable attorney fees. Utility companies raised an issue concerning the taxing of certain parcels; there was a proposal to identify these parcels by street address but will also give the Department of Revenue the ability ask for maps. The Majority Leader included information concerning the homeowners tax relief grants, making those permanent in 2011 up to $18,000 as long as they receive voter approval. Sen. Shafer (R-Duluth) moved "do pass" of this new Substitute and his motion carried.
SR 503, by Sen. Shafer (R-Duluth), which would urge the United States Congress to adopt the "fair tax," was also passed out of the Committee.
Senate Public Safety Committee
HB 258, by Rep. Austin Scott (R-Tifton), received a "do pass" recommendation today. This Bill, concerning O.C.G.A. § 40-5-24, would permit an individual with a valid instruction permit to drive with a disabled guardian or parent who has been issued an identification card containing the international handicapped symbol driver license.
Rep. Sharon Cooper (R-Marietta) presented HB 422, amending O.C.G.A. § 40-6-144, to permit a city council the ability to decide whether children can ride bicycles in the city. This initiative passed unanimously without discussion.
Sen. Tate (D-Atlanta) presented a proposed Resolution to create a Senate Study Committee, SR 654, on the effects of cell phones on safety while driving. This Resolution also cleared the Committee.
Sen. Rogers (R-Woodstock) presented HB 2 in the form of a new Substitute. It deals with compliance with SB 549 which was passed several years ago. Its underlying premise is to require local governments to adhere to federal immigration laws or otherwise their state funding or state-administered funding is at risk. It lists specific services taken out. It is believed that the numbers of illegal immigrants in Georgia are higher than that in Arizona. There were some attacks on ACCG and GMA for challenging enforcement of federal laws by trying to avoid compliance. It was made clear that federal law makes it criminal for efforts to harbor illegals. Sen. Rogers offered an amendment to the legislation as well. Sen. Seay (D-Riverdale) inquired why numbers of illegals were growing in Georgia? Part of the problem is that police departments are "self policing." The Committee passed out the Substitute as amended with Sen. Butler (D-Stone Mountain) opposing the proposal.
House Insurance Committee
The first Bill on the agenda, SB 105, cleared without changes. This Bill, by Sen. Hill (R-Marietta), would permit the Commissioner of Insurance the authority to allow certain health reimbursement arrangement only plans, that encourage employer financial support of health insurance or health related expenses, be approved for sale in connection with or packaged with otherwise approved individual health insurance policies.
SB 94, also by Sen. Judson Hill (R-Marietta), was presented. Prior to the meeting, there were several mutations of this Bill. The underlying legislation expands current law which requires health plans to provide dependent coverage up to age 25 for those dependents who are enrolled in school. In the Bill before the Committee, this would be expanded to all dependents to the age of 25 regardless of whether they were enrolled in school. The insurance industry has referred to this Bill as the "Slacker Bill." Questions were raised by Committee Members. Rep. Meadows (R-Calhoun) spoke in favor of the Bill noting that one of his nephews would have benefited by this initiative as he had recently graduated from college but was not presently employed with insurance coverage. He argued that this Bill would permit his nephew's family coverage to cover him until he turned 26 years of age.
Rep. Davis (R-McDonough) stated that he was struggling with the age 25. Presently, the law requires dependent coverage up to the age of 19 and it can be extended if the dependent is enrolled in school to the age of 25.
Kirk McGhee, with the Georgia Association of Health Plans, stated that his organization opposed the Bill extending the required coverage to all dependents, regardless if they were enrolled in school, to the age of 25. The proposed Bill takes away the health insurers' ability to check on dependent status to determine if in fact that individual is a true dependent by being enrolled in school without another source of income. Mr. McGhee told the Committee that behavior of children is different than the behavior of young adults. Thus, this Bill could perhaps have an impact of inappropriate rating potential. The legislation could perhaps also ask individuals to disclose their tax returns; he noted that most individuals would not like to make that disclosure. Mr. McGhee also stated that some who were living as dependents and were sick could get coverage now under current law.
Rep. Golick (R-Smyrna) inquired further about "proper rating" and whether actuarial data existed. Mr. McGhee testified that there was information indicating differences in behaviors in this population.
There were several amendments including one by Rep. Davis which addressed whether a student was a full-time student. Rep. Hugley (D-Columbus) and Rep. Murphy (D-Augusta) indicated that they too had amendments.
Supporters of the legislation, as it passed out of the Senate, included the Medical Association of Georgia and Georgia Watch.
Chairman Knox (R-Cumming) decided that would hold the legislation in an effort to get all amendments prior to the meeting. Rep. Meadows urged that the Bill move forward. In the end, the Bill was held with the idea that there would likely be a Committee meeting on Monday.
House Rules Committee
The House Rules Committee set the following calendar for the Thirty-Eight Legislative Day:
HR 29, by Rep. Maxwell (R-Dallas), expresses support for the nation of Israel in its defense against terrorism.
HR 135, by Rep. Loudermilk (R-Cassville), urges the Capitol Arts Standards Commission to place a portrait of Admiral John Henry Towers.
HR 165, by Rep. Smith (R-Watkinsville), encourages the promotion of science and technology in the Higher Education system of Georgia. For successful economic growth in Georgia, expanding and developing education for the support of science, innovation, technology and energy will more effectively promote the establishment of new technology driven business in the state; therefore establishing Georgia as the #1 destination for entrepreneurship.
HR 282, by Rep. Cooper (R-Marietta), supports the goals of National Epidermolysis Bullosa Awareness Week and seeks to raise awareness and understanding of this disease.
HR 337, by Rep. Smith (R-Newnan), expresses the support of the State House for development of Georgia's land and offshore energy resources in a balanced manner, promoting the state's economy and energy independence while respecting the natural environment and protecting it for future generations.
HR 471, by Rep. Smith (R-Newnan), requests Congress to oppose legislative efforts to expand the reach and scope of the "Clean Water Act," such as the previously proposed "Clean Water Restoration Act."
HR 622, by Rep. Cole (R-Forsyth), asks the United States Congress to take legislative action to change the current definition of renewable biomass.
SB 8, by Sen. Murphy (R-Cumming), would allow students who have a written consent from both a physician and the child's parent or legal guardian to carry and administer epinephrine while they are at school.
SB 24, by Sen. Grant (R-Milledgeville), reinstates an article in Chapter 8 of Title 42 outlining the probations options system that lapsed on July 1, 2008. This system provides administrative sanctions to probationers as an alternative to judicial modification or revocation of probation.
SB 26, by Sen. Shafer (R-Duluth), amends subparagraph (a)(11.3)(A) and paragraph (13)(a) of code section 50-18-72, relating to when public disclosure of public records is not required, by protecting from public disclosure utility account numbers and passwords used to access those accounts in subparagraph (a)(11.3)(A), and by adding firefighters, emergency medical technicians and paramedics to the list of public employees whose home telephone number, address, social security number, and insurance and medical information is protected in paragraph (13)(a).
SB 55, by Sen. Pearson (R-Dawsonville), adds factors to the list of criteria that tax assessors must use in determining the fair market value of real property for ad valorem tax purposes. It adds foreclosure sales, bank sales, or other financial institution owned sales or distressed sales of comparable real property. It also adds that the assessors must consider decreased value of the property based on limitations and restrictions resulting from the property from the property being in a conservation easement. The bill also extends the deadline for filing for forest land conservation use assessment for the year 2009 only. The current deadline is April 1, but the rules and regulations are still not ready, therefore applicants need more time for review before applying. The Bill also provides that the board of assessors must send out change in assessment notices if the value of the property increases or decreases. Currently, some counties are not sending out assessment notices if the value decreases.
House Public Safety Committee
Chairman Burke Day (R-Tybee Island) indicated that this would be perhaps the last meeting for the Committee for this Session.
Rep. Richard Smith (R-Columbus) presented Sen. Harp's (R-Midland) Bill, SB 38 in the form of a Committee Substitute. The legislation authorizes the GBI to conduct post mortem or autopsy examinations on bodies when those bodies are found on state property. The Bill primarily deals with the recent body which was found in the Coverdell Legislative Office Building. In that instance, Fulton County took the lead because the law does not address the buildings on Capitol Hill. Further, the Bill codifies training of cadaver dogs moving to the preferred training using decomposition fluids. John Bankhead explained the GBI process. Rep. Collins (R-Gainesville) made the motion to "do pass" the Committee Substitute which carried.
HB 738 was presented for Rep. Neal (R-LaFayette) by Chairman Day. The Bill, by Substitute, prohibits law enforcement officers and agencies prohibit from utilizing quotas or policies demanding arrests or the issuance of citations for the purpose of raising revenue. The
Georgia Association of Chiefs of Police stated that they do not use quotas. Rather, they are more interested in making contacts with people as a way in which to gauge productivity of their officers. Further, this group had no problem with the legislation as long as it incorporated everyone. They urged the Committee to equal the playing field and include the State not just municipalities.
Chairman Day indicated he felt strongly about this issue and believes that it is clear that local law enforcement uses law enforcement to raise revenue.
Terry Norris, with Georgia Sheriffs Association, stated that his Association opposes quotas. Sheriffs generate revenue as a residual benefit by working traffic.
Jim Grubiak, with ACCG, expressed similar concerns. He thought the Bill was overly broad. He further noted that County Commissioners do not manage sheriffs as that is outside of their control.
Rep. Talton (R-Warner Robins) inquired about other funds which were procured through drug busts. Those moneys are in the control of sheriffs. Rep. Collins also asked about a Hall County issue where cities desired to annex certain areas because of speed traps. Mr. Grubiak noted that "speed traps" are not legal per se. County Commissioners are only responsible for funding a sheriff's office; they are not responsible for management.
Chairman Day urged Committee Members to go online on the Department of Community Affairs website to find information. It has information on local governments' budgets and projected budgets.
Rep. Talton moved "do pass" and his motion carried. This legislation is not eligible for passage this year unless attached to a moving piece of legislation.
Next up was SB 253 also presented by Rep. Neal which defines "fireworks." It specifically addresses a definition for the term "indoors" and makes the use of fireworks illegal. However, large concert venues are permitted to use certain fireworks but they must seek approval in advance of their use. In the second part of the legislation, it addresses fire department personnel who use emergency flashers when they are off-site and trying to get to a fire. They must first ascertain permission to do so from the Commissioner of the Department of Public Safety. Fines can be imposed for misuse of this. This Bill also received a "do pass" recommendation which now moves it forward in the process.
House Government Affairs Committee
One of the measures that the House Government Affairs Committee considered was SB 20, dealing with "sanctuaries" for illegal immigrants. This Bill was tightened and passed. There was some good testimony previously on the Bill including ACLU, Maldef, GMA, a pastor serving the Latino community, the Rural-Urban Coaltion. All of those have opposed SB 20, noting that it would establish a bad precedent. Further, there are some questions regarding its constitutionality. At present, there are no real "sanctuary" cities in Georgia.
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.