Legislators returned to the State Capitol on Monday for Legislative Day 9, but lawmakers and lobbyists seemed surprisingly subdued in the face of legislative days that continue to tick away.  Perhaps it was the dreary weather or a case of the Mondays, but energy remained remarkably low even as the legislative session approaches the end of its first quarter. We’re waiting for floor sessions that last longer than an hour and committee meetings taking up weighty measures, but that wait continues at least until Legislative Day 10. Until things perk up, check out the new legislation and light committee action from Monday in this #GoldDomeReport.

In this Report:

• Committee Reports
• New Legislation
• What’s Next

Committee Reports

Senate Finance Committee

Chairman Chuck Hufstetler (R-Rome) called the Senate Finance Committee to order to hear from the Department of Audits and Accounts (“DOAA”) Deputy Director Matt Taylor and Audit Manager Lisa Kieffer. DOAA was directed in 2021 by SB 6 to review specific tax credits' efficacy, and eleven programs were researched through an independent review process contracted by DOAA.

DOAA selected Georgia State University, Georgia Southern University, and the University of Georgia to conduct the research. At the conclusion of their study, a report was generated that details economic activity, state revenue, state expenditure including administrative costs, and public benefit, if any, for each tax credit. DOAA assigned the projects and provided a general outline. State Auditor Greg Griffin then went into greater detail on how economic activity, state revenue, state expenditure, and public benefit are quantified and calculated in the analysis.

Contractors used the IMPLAN model to review economic activity. This model regionally reviews input and output to show how industry spending works through the economy. Thus, contractors measured jobs, labor income, value-added, and economic output. For each measure, there are direct, indirect, and induced impacts. The analysis for each credit includes these impacts. Also included in the calculations is the “But-For Analysis,” which reviews industry activity with and without these incentives.

The next component is a change in state revenue. This includes forgone revenue, added revenue generated because of economic activity generated by the credit, and any state revenue, including local revenue.

The state cost is primarily administrative costs incurred by agencies. In most cases, this cost was deemed negligible by the researchers. This is because of the lack of un-dedicated staff to specific incentives and lack of tracking.

DOAA knows that not all incentives have a public benefit as a primary goal. There are exceptions to this, like the Grocery Store Sales Tax and Pharmacy Sales Tax Exemption.

DOAA and its contractors were able to evaluate the Grocery Sales Tax Exemption, Prescription Drug Sales Tax Exemption, Historic Rehabilitation Tax Credit, Low-Income Housing Tax Credit, Job Tax Credit, Qualified Interactive Tax Credit, R&D Tax Credit, Manufacturing Sales Tax Exemption, Computer Equipment Sales Tax Exemption, High-Tech Data Center Sales Tax Exemption, and the Retirement Income Exclusion, which will be published this week.

Chairman Hufstetler noted this was an ongoing process, and seeing no further questions, he adjourned the meeting.

Senate Judiciary Committee

The Senate Judiciary Committee, chaired by Senator Brian Strickland (R-McDonough), held its first meeting on Monday afternoon. After introducing its members and adopting its rules for the session, the committee considered the following legislation:

• SB 5, authored by Senator Max Burns (R-Sylvania), to provide for an additional judge of the superior court of the Augusta Judicial Circuit. This would increase the current judge count from five to six based on workload.

Senator Burns presented the bill with Senator Harold Jones (D-Augusta), who explained that the Augusta Judicial Circuit is in a unique position of needing an additional judge due to a previous circuit split and an increase in violent crime in the circuit. Committee members had a number of questions about the cost of new judgeships and the methodology of the judicial council on recommending new judgeships. Augusta is currently number four on the Council’s priority list for judgeships. Augusta Circuit Chief Judge Daniel Craig spoke in favor of the legislation. The committee held action on the bill, and Chairman Strickland encouraged the authors to advocate for funding before the Appropriations Committee.

• SR 32, authored by Senator Ed Harbison (D-Columbus), urges the Attorney General to negotiate with the State of Alabama terms of a reciprocal immunity agreement for officials of either state carrying out certain official duties in the territorial limits of the other state that can be adopted by the legislatures of each state.

Senator Harbison presented the resolution to the committee, explaining that it is focused on an issue particular to communities on the state’s border like Columbus. In these communities, law enforcement officers are not shielded from liability when rendering mutual aid or traveling across the border into the neighboring state. In response to a question from Chairman Strickland, Senator Harbison said that there have not yet been conversations with Attorney General Carr on this topic. The committee recommended the resolution DO PASS and be sent to the Rules Committee.

New Legislation

The following legislation of interest has been introduced in the House:

The following legislation of interest has been introduced in the Senate:

What’s Next

The General Assembly will reconvene for Legislative Day 10 on Tuesday, January 31 at 10:00AM.