March 03, 2009
Governor Announces Lower Revenue Expectations
Today, Lawmakers returned to the Capitol for the "people's business."
Governor Perdue announced this afternoon that he was reducing the revenue estimate for the year beginning July 1, 2008 by $1.6 billion because of an economy which continues to spiral downward. In his remarks, Governor Perdue will no longer pursue the idea of imposing a 1.6 percent fee on hospitals and insurance companies in an effort to generate more money to plug the State's hole in its healthcare Budget. Lawmakers have not been pleased by that idea since it was proposed. Additionally, there are stimulus moneys coming to Georgia which includes almost $1 billion to help Medicaid and education.
Floor News
Senate Floor
Today, the Senate had a total of eight Bills on its Rules Calendar. A couple of highlights from their work, which went well into the afternoon after a late start of 1:00 p.m.:
SB 159, the creation of the Hemophilia Advisory Board Act, as proposed by Sen. Grant (R-Milledgeville), passed by a vote of 48 to zero without changes.
After lengthy debate and a colorful speech by Sen. Hooks (D-Americus), SB 86 passed by a vote of 34 to 20. It would require voters registering to vote to show proof of United States citizenship before their acceptance of registration.
House
HB 300, by Rep. Wilkinson's (R-Sandy Springs), would require local school systems to provide certain information to parents and guardians of students in grades six through 12 on meningococcal meningitis disease and its vaccine whenever other health information is provided. The Departments of Education and Human Resources would work in conjunction with one another to develop this information which would be disseminated. HB 300 passed out of the House 157 to zero.
HB 325 came to the House Floor proposing to require emergency medical services personnel to be fingerprinted and have criminal background checks made prior to licensure. HB 325 passed 156 to 2.
Rep. Stephens (R-Savannah) presented HB 427 concerning amending the current definition of "pervasive property" in considering property as an "enterprise zone." HB 427 passed 161 to zero.
Rep. Coan (R-Lawrenceville) presented HB 406 amending funding requirements for projects inconsistent with service delivery strategies providing an exception to those projects considered as "drinking water projects." This initiative was brought to clarify the 2008 law on this issue. HB 406 passed the House 131 to 33.
Rep. Vance Smith (R-Pine Mountain) brought The Georgia 2020 Transportation Act to the Floor. HB 277 would create the Georgia 2020 Transportation Trust Fund Oversight Committee and to provide for its membership, powers, and duties as well as provide for the criteria for expenditures from the Transportation Trust Fund. This Bill essentially overhauls the current transportation funding and its oversight in Georgia, eliminating the current State Board of Transportation. The vote was bipartisan with Democrats helping pass this initiative forward. HB 277 passed 149 to 18.
HB 312, the S.A.F.E. Mortgage Licensing Act of 2008, by Rep. Hill (R-Canton), made its way through the House. It revises the licensure requirements for mortgage lenders and mortgage brokers. HB 312 passed the floor of the House 158 to zero.
HB 396, amending traffic violations by Rep. Graves (R-Ranger), made its way through the House. One of the inclusions in this proposal is a "fee" for a temporary license. It further increases fees for certain types of drivers' licenses and amends the present law on driver improvement clinics. HB 396 passed 139 to 21.
HR 206, creating the Transportation Trust Fund in conjunction with HB 277, to provide for an adequate transportation system in Georgia through a Constitutional Amendment at Article III, Section XI. This Resolution passed 151 to 15.
SB 39, originally imposing a 1% sales tax for transportation projects in special transportation districts within Georgia, which has now been amended to lift the current imposition on MARTA tax for the period beginning January 1, 2009. After the Bill was tabled, it was brought back up this afternoon and passed 122 to 42.
Rep. O'Neal (R-Bonaire) brought HB 74 forward. It amends various Georgia's Tax Code by incorporating various federal Internal Revenue Code references.
HB 200, the Bill by Rep. Geisinger (R-Roswell), proposes to impose that failure of someone in the front seat to use a seat belt would be considered as evidence of negligence. It would apply to those individuals 14 of years or older. HB 200 failed to move through the House by a vote 15 to 148 after Rep. Jacobs and others spent long hours on trying to rewrite the idea.
New Legislation
HB 615 – Rep. Bearden (R-Villa Rica) offered a new set of revisions to Georgia's "gun laws" and the ability to carry concealed weapons in Chapter 11 of Title 16. Some of the provisions in this Bill are:
- Amends O.C.G.A. § 16-11-126(c). It states that an individual is prohibited from carrying a concealed weapon outside his or her home, motor vehicle, or place of business unless that individual has a valid license to do so. It takes out references to "pistol, revolver, or concealed firearm" and inserts the term, "weapon." It also strips out the current requirement that this "pistol, revolver, or firearm has be carried in a shoulder holster, waist belt holster, any other holster, hipgrip, or other similar device."
- Amends O.C.G.A. § 16-11-127(a) now states that person will be guilty of a misdemeanor "when he or she carries an explosive compound, firearm, or knife designed for the purpose of offense or defense while in a portion of a building that houses a courtroom or a jail or prison." Previously, the law was more broad and included at "a public gathering" place.
- It strips out current law relating to carrying a pistol without a license in O.C.G.A. § 16-11-128.
- Revises law concerning the application for a new license or renewal license in O.C.G.A. § 16-11-129 so that the Secretary of State would issue these licenses rather than the judge of the probate court of each county.
- Adds a new Code Section at O.C.G.A. § 16-11-136 to prohibit the seizure or registration of firearms during official "states of emergency." It further provides an individual aggrieved by a violation to seek relief from the courts for such.
- Alters the Governor's powers in O.C.G.A.§ 38-3-51(d)(8) so that the Governor may suspend or limit the sale, dispensing, or transportation of alcoholic beverages, explosives and combustibles in a time of an emergency but permits no such suspension or limits on firearms during these times as current law requires.
HB 616 – Rep. Manning (R-Marietta) offered this Bill to admit the general public to hearings in juvenile court as currently they are excluded from attending such proceedings. Some of the changes in this Bill made to current law found at O.C.G.A. § 15-11-78 would permit the general public to any truancy, status, delinquency, or deprivation proceeding in juvenile court. The public would be excluded from hearings including adoption and termination of parental rights' proceedings. Revisions are made to O.C.G.A. § 15-11-79 concerning records from juvenile proceedings. All files would be open for inspection, without an order, except those which are sealed to the child who is a party to the proceeding; the guardian ad litem appointed by the court in the proceeding; the child's attorneys; the parent, legal guardian or legal custodian of the child who is a party to the proceeding and has not been alleged to have committed any offense pursuant to Title 16 against the child who is a party to the proceeding; Division of Family and Children's services; Department of Juvenile Justice; and service providers providing services to the child through contracts with the juvenile court, Division of Family and Children's Services or Department of Juvenile Justice. In O.C.G.A. § 15-11-79.2(e), it permits the court to seal any record containing information identifying a victim of an act which would constitute a "sexual offense."
HB 619 – Rep. Cox (R-Lilburn) offered changes to Chapter 8 of Title 42, repealing the creation and powers of the County and Municipal Probation Advisory Council.
HB 621 – Rep. McKillip (D-Athens) proposed an amendment to Article 2 of Chapter 7 of Title 48 provide an income tax credit in an amount equal to five percent of the amount of the federal Earned Income Credit which the taxpayer has claimed. The total amount of the tax credit under this Code Section may not exceed the taxpayer's income tax liability.
HB 622 – Rep. Cox (D-Marietta) offered changes to Article 6 of Chapter 8 of Title 42, relating to agreements between chief judges of county courts or judges of municipal courts and corporations, enterprises, or agencies for probation services, so as to clarify certain limitations on the authority of the County and Municipal Probation Advisory Council. Under this amendment the Council would not have authority to alter, cancel, or dictate term of a contract lawfully entered into between a private probation entity and a governing authority.
HB 623 – Rep. Rogers (R-Gainesville) authored new language to amend O.C.G.A. § 50-21-29, relating to trial or tort actions against the State, limiting the amount of damages to no more than $300,000 from a single occurrence regardless of the number of State governmental entities involved. It also lowers the aggregate liability per occurrence cannot exceed $ 1 million (down from $3 million).
HB 627 – Rep. Kaiser (D-Atlanta) offered an amendment to Article 7 of Chapter 14 of Title 44, enacting the Georgia Foreclosed Property Upkeep Act. This Act would require any individual, financial institution, or business entity that is purchasing a foreclosed property to maintain the property. The purchasing entity must also file with the Department of Community Affairs a bond in the amount of 25 percent if the price paid for the foreclosed property.
HB 631 – Rep. Heard (D-Athens) authored changes to O.C.G.A. §40-6-40, relating to appropriate time that vehicles may be driven on the left side of the highway. A vehicle may be driven in the left lane upon a roadway having two or more lanes of traffic moving in the same directions except when, overtaking and passing another vehicle proceeding in the same direction, when traveling at a speed greater than the traffic flow, when moving left to allow traffic to merge, or when preparing for a left turn at an intersection, exit, or into a private road or driveway.
HB 634 – Rep. Taylor (D-Atlanta) proposed changes to Part 1 of Article 16 of Chapter 2 of Title 20, enacting the "Dropout Deterrent Act." This change would require mandatory attendance in a public, private or home school until the age of 17.
HB 636 – Rep. Ehrhart (R-Powder Springs) offered changes to Article 1 of Chapter 26 of Title 43, relating to the "Georgia Registered Professional Nurse Practice Act." These changes would require the Board of Nursing to provide periodic reports to the General Assembly regarding the state of higher education for nursing. The reports would also be accompanied by recommendations and plans for the expansion of nursing programs in order to continue to meet the needs of the people of the State of Georgia.
HB 649 – Rep. Ashe (D-Atlanta) offered changes to O.C.G.A. § 20-2-161 relating to the Quality Basic Education Formula. This language would prohibit any voucher, school choice, or scholarship program from being implements or enforced unless the Quality Basic Education Formula is fully funded by the General Assembly.
HB 650 – Rep. Ashe (D-Atlanta) proposed new language amending O.C.G.A. § 47-3-127.1, relating to the employment of a retired teacher as a full-time teacher. Rep. Ashe's proposed change would permit retired speech-pathologists who have worked in schools to return to work on a full-time basis and continue receiving their full retirement benefits.
Committee News
House Appropriations Committee
Special DHR Subcommittee
The House Appropriations Committee's Special Subcommittee on the Department of Human Resources considered a Substitute by the Subcommittee's Chairman, Rep. Mickey Channell (R-Greensboro). The issue is how best to reorganize the Department of Human Resources. While a proposal was initially brought by Rep. Mark Butler (R-Carrollton), who served on the Taskforce established by Governor Perdue, this version by Rep. Channell essentially places the Division of Public Health, Division of Mental Health, Division of Developmental Disabilities and Division of Addictive Diseases into one new Department which would be known as the Department of Behavioral and Physical Health. New language was inserted into HB 228 regarding the coordinating of these two major health areas: physical and mental health. Rep. Pat Gardner (D-Atlanta) spoke up to endorse the Substitute after Rep. Channell presented his plan. At the hearing yesterday on this new idea, no public testimony was taken. The Substitute to HB 228 passed unanimously and must now work its way through the full House Appropriations Committee.
Education Subcommittee
Rep. Lindsey's Subcommittee met to hear from Superintendent Kathy Cox concerning the federal stimulus money plus hear from the Department of Education and the various other agencies tied to this Subcommittee for budgeting purposes (Bright from the Start, Professional Standards Commission, Teachers Retirement System and office of Student Achievement) concerning the FY 2010 Budget. Most of the Budget discussions will be held next week, once there is a better understanding on the rules and regulations relating to the stimulus money.
Superintendent Cox met last week in Washington with Vice President Joe Biden and the new Secretary of Education Arnie Duncan (formerly a "practitioner" from Chicago). It is anticipated that the federal rules and regulations concerning the stimulus money will be released this week. It is possible that the federal funding will be made available to states within four to six weeks, requiring local school districts to gear up for the money. The focus will be Title 1 money. Secretary Duncan told Superintendents across the country that this money was a one-time opportunity to close the achievement gap and move the country forward. However, there would be accountability required with this money. $100 billion would be provided nationally for education and of that $30 billion would go for funding PELL grants; $65 billion would go towards K-12 education; and $5 billion would be for early education. "Stabilization" money would be $46 billion with 61% of that be used to restore QBE formula and another 20% to be used in equal proportions for higher education and preschool. The final 19% would be left up to the Governor to use for infrastructure such as public safety or highways.
Moneys from federal stimulus would flow through FY 2009, FY 2010 and into FY 2011. Georgia will receive $1.5 billion for education for Title 1, Title 2 and IDEA. There are a number of rules relating to Title 1 "qualified" schools, which in Georgia are primarily elementary schools although there are a few middle and high schools which qualify for Title 1. Superintendent Cox intends to meet with local school leaders via a telephone conference call on Thursday of this week. Georgia's actual Bright from the Start will not receive these moneys directly. There will also be some money received in Georgia which will help handicapped Pre-K.
House Insurance Committee
Assignments Subcommittee
The Subcommittee cleared HB 550, the Bill by Rep. Meadows (R-Calhoun). It permits the conversion of a mutual insurer to a stock insurer through an additional method of payment by a mutual life insurer of the equity in O.C.G.A. § 33-14-76(b)(6)(B).
House Ways and Means Committee
Back-to-back Subcommittee meetings were held:
Ad Valorem Tax Subcommittee
Hearings were held on (with not vote taken):
- HB 483, the Bill by Rep. Roberts (R-Ocilla), providing clarification on homestead exemptions for individuals 62 and older and their income reporting requirements
- HB 407, the Bill by Rep. Kaiser (D-Atlanta), permitting police and firefighters to receive a homestead exemption (much like that permitted for veterans and their spouses)
- HB 462, the Bill by Rep. Peake (R-Macon) which would clarify the 2007 amendment concerning exempting nonprofits' owned property (one building) when that nonprofit might have some income generating operation on part of their property (This change would benefit Goodwill in Macon.). There were numerous questions raised such as whether this idea would apply to nonprofits such as medical centers. There is language in the draft which would increase the acreage that a nonprofit could own from 15 to 18 acres. There was a commitment to work further on this Bill's language.
The Subcommittee did pass out a new version to HB 318 by Rep. McCall (R-Elberton). It was presented by Gary Black and would permit owners of farms, who live in another county, to register their vehicles in the county where the vehicle was used. An amendment was made amending the definition of "truck," tying that to the definition of "truck" as found in Title 40. HB 318 now moves to the full Ways and Means Committee for its consideration.
Income Tax Subcommittee
- HB 374, by Rep. Crawford (D-Cedartown), clarifying the law on withholding tax on the sales or transfers of real property and associated tangible personal property by nonresidents to provide that the person who is listed on the closing statement as the seller will be required to be treated as the seller and be subject to the withholding and documentation requirements. This initiative passed out of the Subcommittee.
- HB 269, by Rep. Fludd (D-Fayetteville), proposing to amend the current tax credit for qualified caregiving expenses, only received a hearing. The idea would be to cap this credit at $1,000 for persons with incomes below $100,000 annually.
- HB 270 also received a hearing. Rep. Fludd (D-Fayetteville) presented this initiative which would permit an exemption of $3,000.00 for each dependent of a taxpayer to the custodial parent and also be allowed as a deduction to a noncustodial parent who is not in arrears for child support payments to the custodial parent for the taxable year for which the deduction is claimed, in computing Georgia taxable income of the taxpayer. Rep. Fludd argued this idea would help with encouraging individuals pay their child support payments.
- HB 419 also received a hearing. It addresses the law passed in 2008 (HB 670) concerning installation of energy efficient products. It capped the credit at $2.5 million and would sunset that credit in 2012. The problem has been many can qualify but the products are not getting installed; this change would "favor the businesses" getting these products and permit them to be eligible for the credit in the following year if they were installed and qualified but did not receive the credit in the year that they applied.
- HB 439, by Rep. O'Neal (R-Bonaire), also received a hearing. Heidi Green, with the Department of Economic Development, spoke to the provisions in the Bill which includes several job tax credits including discretionary withholding and clawback provisions. Some of these credits would be permitted when the jobs were created rather than in the following year. A "retraining" tax credit is permitted to businesses and "research" is tied to gross receipts and not income. There is also a change to what is considered as "headquarters" for a business.
- HB 481, by Rep. Graves (R-Ranger), which would enact the JOBS Act, passed out of the Subcommittee. It would permit some temporary business tax breaks and would phase out the corporate income tax over twelve years. There was no fiscal note presented with this Bill, which does include some "holidays" of corporate filing fees with the Secretary of State and $500 tax credits against employers' unemployment insurance obligations. An amendment was offered to provide a credit for those employers who were providing assistance for temporary staffing. However, that language was not satisfactory.
Sales Tax Subcommittee
HB 334 (changes concerning lowering the amount to $500 when taxes are owed to use electronic submissions) and HB 335 (permitting the Department of Revenue among other things to issue subpoenas) were both discussed with hearings only being held. Support by the Georgia Retail Association in connection with HB 334 was provided in terms of its philosophy but there was concern that perhaps it would be an imposition to small business owners requiring the submission of electronic tax returns.
HB 364, by Rep. Stephens (R-Savannah), passed out of the Subcommittee. It permits a sales and use tax exemption for certain flight simulators. These simulators cost $12 million.
HB 67, the proposed change of the current sales and use tax exemption on food to a "tax credit" on those items, stalled. There were numerous questions to Rep. Sims (R-Ambrose) on his proposal. Many questions dealt with whether taxpayors would be required to keep all grocery receipts in order to claim this credit. Rep. Sims envisioned using the federal law to calculate the credit, which would permit an individual $3420 per year times the tax rate of 4% or a total of $186 (the amount of tax paid on that amount of food on an annual basis) as the credit.
House Education Committee
A Substitute on HB 400 has cleared the Committee, proposing the enactment of the "Building Resourceful Individuals to Develop Georgia's Economy Act." This idea would create a new Part 16 in Article 6 of Chapter 2 of Title 20. The Department of Education would develop "focused programs of study" for high demand, high skill, and high wage academic and career fields (such as aerospace, healthcare/elder care, agribusiness, teacher education training, technology and engineering, science and mathematics, etc.). The idea is to help create programs for students who are otherwise at risk for dropping out.
House Rules Committee
The Committee set the following calendar for the twenty-sixth Legislative Day:
SB 83, offered by Rep. Lindsey (R-Atlanta), would increase the amount of the state-wide homestead exemption for ad valorem tax purposes.
HB 45, Rep. Mills (R-Gainesville), would require proof of citizenship before an individual could register to vote.
HB 86, Rep. Millar (R-Dunwoody), relates to elections and absentee ballots.
HB 127, Rep. Lindsey (R-Atlanta), seeks to adopt the Uniform Real Property Electronic Recording Act.
HB 145, Rep. Lindsey (R-Atlanta), corrects cross-references in relation to child support.
HB 220, Rep. Willard (R-Sandy Springs), relates to issuing orders on motion in superior courts.
HB 221, Rep. Willard (R-Sandy Springs), relates to extraordinary writs; removal of superior court judges.
HB 226, Rep. Cheokas (D-Americus), changes provisions relating to sentencing and confinement in probation detention centers.
HB 235, Rep. Powell (R-Camilla), removes the requirement on court reports to publish a volume of rules.
HB 302, Rep. Hamilton (R-Cumming), changes the requirements relating to telecommunications and the charge for third party service.
HB 330, Rep. Coan (R-Lawrenceville), changes certain provisions relating to the decisions of administrative law judges on workers' compensation cases.
HB 371, Rep. Ehrhart (R-Powder Springs), provides for an increase in the allowable fund investment into the Public Retirement Systems Investment Authority.
HB 422, Rep. Cooper (R-Marietta), relates to the uniform rules of the road and bicycles on the sidewalk.
HB 436, Rep. Parsons (R-Marietta), would require the Georgia Technology Authority to develop certain plans and reports.
Senate Rules Committee
For the twenty-sixth Legislative Day, the Senate intends to take up the following initiatives:
- SB 15, by Sen. Douglas (R-Social Circle), would require for quarantines and clean up of sites where methamphetamine was unlawfully manufactured
- SB 102, by Sen. Hamrick (R-Carrollton), proposed increases in fees for the provision of certain criminal records
- SB 117, by Sen. Powell (D-Blythe), would revise current law regarding the "Made in Georgia Program"
- SB 124, by Sen. Heath (R-Bremen), would amend public disclosure laws concerning public documents, providing specifically the nondisclosure of social security numbers in those public documents
- SB 131, Sen. Hamrick's (R-Carrollton) comprehensive revisions of the Georgia Trust Code of 2009
- SB 136, by Sen. Douglas (R-Social Circle), concerning the State's penal institutions and which eligible parolees are eligible for transfer (the United States Immigration and Customs Enforcement Rapid Removal of Eligible Parollees Accepted for Transfer)
- SB 141, by Sen. Hamrick (R-Carrollton), which amends the current law regarding property foreclosures and deficiency judgments
- SB 163, by Sen. Balfour (R-Snellville), which requires the Commissioner of the Department of Human Resources to appoint a diabetes coordinator
- SB 178, the initiative by Sen. Moody (R-Alpharetta), which deals with education funding and exceptional growth and low-wealth capital outlay grants
- SR 263, the Senate Resolution urging the President and Congress to provide support to strengthen Georgia's public health infrastructure by Sen. Unterman (R-Buford)
- HB 212, the Sales and use tax exemption continuation for jet fuel proposed by Rep. Burkhalter (R-Johns Creek)
Senate Judiciary Committee
The Senate Judiciary Committee has reported out a Substitute on SB 112, amending Chapter 21 of Title 15. It revises provisions relating to additional criminal penalties for purposes of drug abuse treatment and education programs and expands the list of offenses to which these additional penalties are to be imposed. For instance, greater penalties including the sum equal to 50% of the original fine are also to be paid by individuals who are guilty of providing alcoholic beverages to persons under the age of 21 and driving under the influence of alcohol, drugs, or other intoxicating substances or endangering the life of a child.
The Committee also passed a Substitute to the "Landowners Protection Act of 2009" in Chapter 1 of Title 59. It limits liability of landowners who permit individuals to hunt or fish on their property or allow individuals on the property for "agritourism" (which means in O.C.G.A. § 48-5-7.4(p)(7)(B) "agritourism" "charging admission for persons to visit, view, or participate in the operation of a farm or dairy or production of farm or dairy products for entertainment or educational purposes or selling farm or dairy products to persons who visit such farm or dairy"). In this Bill, SB 75, it states that a person who is 16 years of age or older shall have the capacity to enter into a binding contract to waiver his or her liability (if that individual is charged admission to hunt or fish or otherwise enter the property for the purposes of "agritourism." There are some exceptions: 1) the landowner's conduct does not constitute gross negligence or willful and wanton misconduct; 2) the landowner has signs posted at the entry of the property (which warning notices are outlined in the Bill); 3) that the admission has been paid and a signed waiver of liability form has been made; and 4) that this new Code Section would be supplemental to all other provisions of law that provide defenses to property owners.
Senate Insurance and Labor Committee
SB 92 – Privatization of Medicaid and PeachCare
In an early morning meeting, Sen. Ralph Hudgens (R-Hull) and his Committee heard more about Sen. Hill's (R-Marietta) proposal to essentially "privatize" Medicaid and PeachCare, permitting qualifying individuals to use subsidies to purchase private health insurance. There was extensive discussion on this proposal. National Federation of Independent Businesses and Georgia Association of Health Underwriters were supportive of the proposal. Previously, the Department of Community Health and many children's advocates have opposed SB 92. After much discussion and testimony, the Bill passed the Committee by a vote of 5 to 2.
SB 161 – Mandate for Autism
SB 161 was on the agenda for the Committee as well. Sen. Grant (R-Milledgeville) and Sen. Williams (R-Lyons) authored SB 161 as an effort to address problems that families are experiencing in ascertaining new behavioral modification treatments for "autism." At the meeting this morning, Sen. Williams was the first to speak followed by Sen. Johnny Grant. Georgia currently has an insurance mandate to cover "autism" in Title 33. This Bill goes further to address "Applied Behavioral Analysis" ("ABA") therapies. Representatives from Autism Speaks, a national organization which has been pushing legislation across the country, testified, referring to the endorsements of the efficacy of ABA by the Surgeon General, Research Council and American Academy of Pediatrics.
ABA, 40 hours of therapy per week, can cost approximately $75,000 each year. Many families cannot afford ABA for their autistic child. There was an argument that it was not fair for individuals who can afford such ABA to get that treatment for their child while others do not.
Presently, eleven states have insurance mandates covering autism; seven of those mandates have been passed by this organized effort within the last two years. Indiana and Minnesota passed mandates several years ago. South Carolina passed its mandate in 2007. The current proposal is not limited to age 18. There are enough ABA providers in Georgia. Further, the effect on health insurance premiums in Indiana was "immeasurable." Additionally, when one compares insurance mandate costs, it was found to cost less than one (1) percent and in Georgia it was predicted to cost .54%.
Insurers are concerned that ABA provides services which are more "educational" than "medical." ERISA plans would not be impacted. SB 161 also does not require that any individuals providing ABA be required to be a Georgia-licensed therapists.
Sen. Thomas (R-Dalton), a licensed physician, stated the ABA therapies have shown good results and can help an individual throughout life.
Autism Speaks offered testimony from Ann Eldridge, a board certified behavioral therapist. Ms. Eldridge testified that autism is the fastest growing disability which affects four times the numbers of boys than girls. Children show an obsession. Families with autistic children have hardships. Ms. Eldridge also explained that ABA is essentially based on methods.
Sen. Williams' niece spoke about her daughter Ava who SB 161 is named after.
National Federation of Independent Businesses ("NFIB") and the Georgia Chamber of Commerce also spoke to SB 161. While small business appreciated the exemption for fewer than 25 employees, they are still concerned. The Chamber of Commerce and NFIB contend that the new mandate could be a $3 billion cost. They both urged the Committee to restrict coverage and use caution before passing this legislation forward. They also requested that it also be applied to government-sponsored health plans including State Health Benefit Plan.
The Georgia Association of Health Plans had Kirk McGhee provide remarks on this idea. Mr. McGhee reminded the Committee that it was pushing this Bill during a time when the economy was in downturn. He asked why the State's health plans were excluded. The authors wish to place a mandate on individuals who buy insurance coverage but not small employers. Thus, SB 161, as written, applies only to a small segment of employers. Mr. McGhee argued fairness; this mandate only covers one disease and does not help those who have Downs Syndrome or dyslexia. Thus, not every condition is covered. Mr. McGhee also argued that schools are under an obligation to provide what most children need. The "inflator" in the Bill proposed is the only mandate to have that, which he and the health plans considered as outrageous. Other states have $36,000 annual caps. He argued that insurance "riders" could be a better route and an easier way to underwrite such coverage. However, prior to passing any sort of mandate it would be better to permit the federal government to conduct health reform first. This mandate did not pass in Virginia. Georgia's insurers are already mandated to cover autism and schools do provide the behavioral part. Requiring insurers to exempt small insurance group is wrong.
Sen. Hudgens (R-Hull) inquired about the number of covered lives in Georgia with health insurance. Mr. McGhee indicated that there were six million total, including ERISA-covered individuals with private insurance. 70% of Georgians are covered by ERISA; 2.8 million are in small group plans (50 employees or fewer) and are exempted. There are also 625,000 individuals covered by the State Health Benefit Plan. Sen. Hudgens felt that the one million that might be impacted would be a "test group."
Sen. Wiles (R-Marietta) inquired about asking the insurers to pay for review and Sen. Pearson (R-Dawsonville) asked what services the schools provided to these children. Mr. McGhee noted that a child's "Individual Education Plan" would outline what services a child would receive, and some would receive some types of ABA therapies. Sen. Murphy (R-Cumming) asked the numbers of businesses had fewer than 25 employees; Mr. McGhee deferred to NFIB and the Georgia Chamber of Commerce. The Chamber of Commerce indicated it did not know as it basically tracked employers who had fewer than 50 employees.
After the discussion, the Bill passed by way of a Committee Substitute by a vote of 4 to 2 with Sen. Rogers (R-Woodstock) abstaining from the vote. Sen. Ramsey (D-Stone Mountain) moved the Bill forward but stated he would not vote for the Bill on the Floor without amendments.
Senate Appropriations Committee
The Full Committee of Senate Appropriations passed out the Amended FY 2009 Budget, which restores $148 million in homeowner tax relief grants. Chairman Jack Hill (R-Reidsville) commented that the Governor lowered revenue estimates five times since work began on the Budget. Hill also stated that the State has a steady Triple "A" bond rating and hopes to continue to prove that Georgia is deserving of this rating with bond writers.
Highlights of the FY 2009 Amended Budget were provided. The Department of Education's budget was cut by $393 million; however, federal monies of $145 million will soften the blow. $2.4 million has also been restored to adult mental health.
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.