March 27, 2019
A relatively quiet Committee Work Day erupted with activity late this afternoon as the Conference Committee on the FY 2020 Budget announced a compromise spending proposal. Details are still limited at our deadline, but it appears that the package includes a complete $3,000 salary increase for certified educators starting July 1, 2019, as well as increased funding for CTAE equipment grants. While the Conference Committee met, the House Rules Committee convened for a rare standing committee meeting to hear public testimony on SB 131, Sen. Burt Jones’s (R-Jackson) proposition to transfer control of Hartsfield Jackson Atlanta International Airport from the City of Atlanta to the State of Georgia. This afternoon’s meetings were likely the first of many surprises to come in the sprint toward adjournment Sine Die on Tuesday. Keep track of the fast-moving action with the #GoldDomeReport.
In this Report:
Budget Conference Committee Reaches Agreement
Amid smiles by all Conferees, the Conference Committee on the FY 2020 Budget reached agreement late today on a compromise spending package and signed off of on that deal on HB 31 at 4:17 PM. After thanking staff, House Appropriations Chairman Rep. Terry England (R-Auburn) introduced the compromise that is “taking care of needs of many individuals”
The spending package includes a full $3,000 salary increase starting July 1, 2019, for educators and certificated personnel and a two percent pay raise for State employees. Senate Appropriations Chairman Jack Hill (R-Reidsville) stated that the Budget is a “dynamic document” and meets the constitutional responsibilities of safety and education and also meets the needs of many of the powerless. According to Chairman Hill, the budget advances the objectives of Governor Kemp, including addressing the problems of gangs, school security and health needs. It also contains funding for technology, a priority of Lt. Governor Duncan.
There are a number of changes to the bond package in the budget, funded partially through an underutilized $100 million proposed for bridge repair, which has been slow to occur. In part, they used $35 million to reinforce the State-owned short line rail to help upgrade rail lines in rural areas to meet Class II standards to improve the movement of freight in a more timely manner (this will ease truck traffic on major interstates). Additionally, $1.5 million is used to fund early activities in planning for the census in the hard-to-count areas. CTAE equipment needs are fully funded with $14 million. Additional funding for bonds is also directed to the Savannah Trade Center ($13.7 million).
Like last year, education’s QBE program has been fully funded in this Budget.
In closing, Chairman England stated that they all wanted to leave something better than like they had found it. It was an obligation to fellow man.
The Conference Committee Report will go to print immediately for legislator review, and the House and Senate are each expected to agree to the Report tomorrow during Legislative Day 38.
Committee Updates
House Insurance Committee
The House Insurance Committee, chaired by Rep. Richard Smith (R-Columbus), met to consider two bills today. The first bill, SB 142, authored by Sen. Larry Walker (R-Perry), amends Title 33 to require that a statement indicating that a subscribers health policy is regulated by the Department of Insurance on the subscriber’s health insurance identification card. Rep. Shaw Blackmon (R-Bonaire) asked if this bill creates an unfunded mandate for insurers, to which Sen. Walker pointed out that insurers are not required to do a special reissue of cards to comply with the requirement but may do it during the normal course of business and card issuance. The Committee recommended the bill DO PASS and be sent to the Rules Committee. The bill will be carried by Rep. Lee Hawkins (R-Gainesville) in the House.
The Committee also took up a Substitute to SB 195 that strips its original content and replaces it with the language of HB 583, Rep. Noel Williams’s proposition relating to travel insurance. The Committee recommended the bill DO PASS and be sent to the Rules Committee.
House Education Committee
The House Education Committee, chaired by Rep. Rick Jasperse (R-Jasper), met to consider two bills:
House Juvenile Justice Committee
The House Juvenile Justice Committee, under the leadership of Rep. Mandi Ballinger (R-Canton), met to take up SB 190. This legislation in Chapter 9 of Title 19, authored by Sen. John Kennedy (R-Macon), received a hearing. It relates to child custody issues and permission of a party to bring a counterclaim for contempt in response to a complaint seeking a change in legal or physical custody of a child. There are definitions proposed for “physical” and “legal” custody in the proposal. LC 41 2024S, a new Substitute, was presented at today’s meeting. The purpose is to repeal a requirement that a change of custody has to be done as a separate action. It allows counterclaims in custody actions to be filed - supposedly better for judicial efficiency. The legislation is more restrictive than the bill passed by the Senate according to Sen. Kennedy. The State Bar spoke to the policy considerations and of the bill’s importance which also talked to the change for judicial economy. They place definition for “legal” custody as what the court defines. Filing of contempt language was taken out of the bill as beyond the scope of the legislation. The Committee inquired about the problems which are being fixed with the bill - a former spouse suing a spouse for custody or modification of custody, placing an inefficient process. They cannot currently counterclaim and must file a separate cause of action; now it can be two judges because sometimes cases are not consolidated. Sen. Kennedy defined it as a “procedural quirk” and knew of no unintended consequences. Filing of the original action will always be where the defendant resides. There were questions about instances where the parties reside in different states which will be followed by federal requirements. Sen. Kennedy has not received any objections or prejudices found to impact a stakeholder. Rep. Bert Reeves (R-Marietta) stated he supports the legislation and noted that there are “games” in domestic litigation which turn into litigation fatigue. This legislation will diminish such fatigue. No action was taken.
House Special Committee on Access to Quality Healthcare
The House Special Committee on Access to Quality Healthcare, chaired by Rep. Richard Smith (R-Columbus), met today to consider two resolutions.
House Governmental Affairs Committee
Chairman Ed Rynders (R-Albany) called the committee to order to hear SB 71 which would change how the proceeds from the sale of a public hospital may be invested. The bill also requires that members of a hospital authority board be treated as directors with regard to a hospital sale for purposes of conflicts of interest. Sen. Ben Watson (R-Savannah) explained that the bill arose after a hospital in his district was sold. The bill received a motion DO PASS without any comment.
Senate Higher Education Committee
The Senate Higher Education Committee, chaired by Sen. Lindsey Tippins (R-Marietta), met to consider a couple of measures today. Starting with HB 218, which extends HOPE scholarship eligibility from seven to ten years. Rep. Rick Williams (R-Milledgeville) introduced the bill and explained it provided for a simple change. The bill received a motion DO PASS. Next, Rep. Bert Reeves (R-Marietta) presented HB 444 which alters provisions of Title 20 related to dual enrollment. The committee presented a new substitute: LC 33 8017S. Rep. Reeves was joined by Kaylee Nagle of the Georgia Student Finance Commission. The bill adds limitations to the program to create more stability in the financial solvency of the program in the future. The main changes in this version include the credit hour limitations increasing from 30 hours for USG institutions and 60 hours for TCSG institutions to 32 and 63 respectively. Chairman Tippins noted that all parties understand the need to make changes to the program to preserve its reach across the state. He also explained that while the bill helps, it is far from perfect, and may require a ruling by the Attorney General in regards to the lottery fund provisions. He expressed doubt that the bill would be able to receive a full vetting before the end of the legislative session, nevertheless he said he wants the bill to move to the floor. He welcomed suggestions for changes that could be reflected in another Senate Substitute. Sen. Brandon Beach (R-Alpharetta) disagreed with the Chairman that the bill needs to be passed. He suggested work be done in the interim to perfect the bill. Specifically, he raised significant concerns with the bill’s plan to use lottery funds which he believes could jeopardize the success of the HOPE scholarship. He explained that his proposed horse racing bill would provide an alternative revenue source for this purpose. Sen. P.K. Martin (R-Lawrenceville) stated that because the bill would limit the total number of credit hours a student can obtain via dual enrollment, he would like to see an allowance for 9th grade students to take virtual courses. He proposed an amendment which would make this change. This amendment PASSED. Sen. Sally Harrell (D-Dunwoody) stated she does not believe the bill has “guardrails” and signifies a blanket cut to the program. The bill received a motion DO PASS by a vote of 5-2.
Senate Finance Committee
This Committee met mid-morning to consider one initiative. HB 352, authored by Rep. Bert Reeves (R-Marietta), seeks to extend the sunset date on the sales tax exemption for competitive projects with regional significance in O.C.G.A. § 48-8-3(93). This sunset date of this sales tax exemption is to be extended to expire on June 30, 2024 (rather than its current date of June 30, 2019). A hearing was held previously on this bill for materials used in these regional significant projects. Rep. Reeves argued this is a tool in the tool belt to help Georgia compete competitively with other states and only used ten times since 2012 (and only used four times since 2016 - the price tag for the state was $25 million and the return was $3.2 billion to the State, producing more than 4,000 jobs). The Department of Economic Development asked for this tool. A Committee Substitute is offered which the Governor is not fully in agreement with. Chairman Hufstetler agreed it was a “great tool.” Sen. Bill Cowsert (R-Athens) found in the Subcommittee found that no rules and regulations were developed as it was supposed to be and the Committee Substitute provides more guidance - including disclosure requirements on these projects as well as a definition on what “regional significance” means. There was discussions that there are a number of confidentiality provisions which the Department of Revenue is to follow in Chapter 2 of Title 48. There were queries concerning the timing for the disclosures to other leadership in State government and how the competition could potentially obtain that information. Sen. Steve Gooch (R-Dahlonega) expressed that the timing of the disclosures of the information on the deal - after the deal is done - is a better approach. Sen. Butch Miller (R-Gainesville) provided an example of the Volkswagen recruitment attempted years ago; he said that there are concerns around transparency. His concern is that making this transparency efforts is just raising risk of putting the project in jeopardy with the sensitive nature of the projects. Chairman Hufstetler disagreed with the President Pro Tem Miller. Sen. Bill Heath (R-Bremen) asked how long the process is for these types of projects; Rep. Reeves said no two are exactly alike and these incentives are generally offered at the end (or icing on the cake for Georgia to land a deal). Sen. Heath stated that this is very open ended without a cap on what this amount could be, preventing a dollar going into the General Fund. Rep. Reeves stated this would be a sales tax on new money and not money the State is giving away that it currently has. Sen. Cowsert expressed that they need to know what happens afterwards - line 30 amendment so that the waiver of the sales tax would be divulged after the deal is completed (following the issuance of the letter with the consummation of the deal and awarding of the grant of the exemption). He proposed to limit the disclosure to the Governor, Lt. Governor, Speaker and chairs of the Ways and Means and Finance Committees. The legislation received a DO PASS recommendation (which had also moved the sunset date to 2020 in the Substitute rather than 2024). The Cowsert Amendment was adopted. The bill as amended received a DO PASS recommendation with one dissent (Sen. Bill Heath).
New Legislation
The following legislation of interest was introduced in the House and Senate over the last few Legislative Days. Because these items have been introduced after Crossover Day, they are not eligible for consideration by the both chambers before 2020 (with exception of House and Senate study committees).
Rules Calendars for Legislative Day 38
The House will take up the following propositions on Thursday for Legislative Day 38:
Chairman Jay Powell indicated the committee would meet Thursday morning to set a supplemental calendar.
The Senate will take up the following propositions on Thursday for Legislative Day 38:
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