Gold Dome Report - January 2019 #6

Nelson Mullins Riley & Scarborough LLP

As much of Metro Atlanta took the day off and watched the skies for snow, the Georgia House of Representatives threw caution to the wind and convened for Legislative Day 6. As the sun broke through the clouds in the early afternoon, House leaders took delight in their decision to come to work, ribbing State Senators for choosing to stay home. Amid whispers that the House was considering proposing a unicameral General Assembly, several House committees forged ahead for the small group of onlookers in the hall. Our team was among those monitoring activity today, and all the details are in this “snow day” edition of the #GoldDomeReport.

In this Report:

  • House Appropriations Subcommittees Hear Additional AFY 2019 Budget Proposals
  • House Judiciary Committee Holds First Meeting
  • New Legislation

House Appropriations Subcommittees Hear Additional AFY 2019 Budget Proposals

Following the first subcommittee meetings yesterday, two more subcommittees of the House Appropriations Committee met today to hear about budget requests for the Amended FY 2019 spending package. Meetings included:

House Appropriations Committee -- Higher Education Subcommittee

The Higher Education Subcommittee of the House Appropriations Committee, chaired by Rep. David Knight (R-Griffin), met today to consider the Amended FY 2019 budget proposals introduced by Governor Kemp earlier this month.

The hearing began with University System of Georgia (“USG”) Chancellor Steve Wrigley, who provided a few highlights of the USG’s financial situation including a recent effort to increase access to free online textbooks for students. The University System saw no tuition increases in two of the last three years. Additionally, the USG’s administrative review eliminated 40 jobs. Consolidations have reduced from 35 institutions to 26, and Chancellor Wrigley stressed the USG’s commitment to provide more services to students with the same budgetary allowances. Efforts have been made to increase degree completion rates, reflected in the number of degrees up by 21% while enrollment only grew 2% in the same time period. Chancellor Wrigley outlined the USG’s amended FY2019 requests which include:

  • $153,000 increase in maintenance and operation costs for the Cyber Center primarily in utility and custodial operations. This adjustment was expected because original budget allocations were made without knowing which facilities would be assigned to Augusta University.
  • $9,991,818 in tobacco settlement funds for the Augusta University Health System Campus. This money will be used for pediatric and adult clinical radiation renovation. Half of these funds will be for a new ambulatory care wing for sedated pediatric patients while the other half will be allocated for a new linear accelerator. Chairman Knight noted that this renovation will allow patients to again use the main facilities; currently, patients require transportation for treatment.
  • $326,000 for Georgia Public Libraries to create a new digital children’s library consisting of 15,000 children’s ebooks, accessible to every public library in Georgia.

Rep. Barry Fleming (R-Harlem) asked about the USG’s Human Resources issues and whether or not the legislature can assist in improving the hiring, firing, and disciplinary processes. The USG explained that there are a litany of rules and policies centered around HR concerns, and occasionally issues arise when cases fall under the purview of federal law and the constitution.

Rep. Rick Jasperse (R-Jasper) asked if the USG had any documents reflecting the debt per graduated student by school, which he stated would be immensely helpful to prospective students and their parents. Currently, the USG does not have documents with these exact data but plan to start a process to compile them. Rep. Jasperse further inquired into the process for acquiring free online textbooks, namely which entity bears the financial burden for these texts. Currently, the USG provides grants to members of its academic institutions to create textbooks and convert them to an online format. These grants are small, $2,000-$5,000 per faculty member involved, and thus far, have shown success in increasing the free resources available to students.

Rep. Chuck Martin (R-Alpharetta) expressed concerns that DOAS insurance premiums increases were not reflective of the true cost of the services provided, adding that he worries when other agencies increase intragovernmental bills more than they should.

Rep. Calvin Smyre (D-Columbus) asked about degree attainment, specifically related to the success of remedial education programs. Chancellor Wrigley explained that the University System’s change in approach to remedial education has elicited recent success.

Rep. Mike Cheokas (R-Americus) asked what percentage of the University System’s funding comes from state funds versus other sources. Currently, state funds and tuition provide equal amounts of funding and together make up about 50% of the USG’s total budget.

Next up was Lt. General William Caldwell, President of Georgia Military College (“GMC”). GMC is a public independent school. Currently, the school offers a preparatory school from grades 4-12 and a junior college. The school teaches predominantly lower income, minority students. Although the school has multiple program levels, the QBE funding formula is only used on grades 4-12. The school hopes to use funds to add 3rd grade instruction. The Amended FY 2019 budget request reflects an increase in funds due to enrollment growth of the preparatory school. General Caldwell also stated that GMC is not currently listed on Governor Kemp’s proposed list of schools to receive $30,000 in one time school safety funding; which he attributed to a simple oversight. Rep. Barry Fleming (R-Harlem) expressed his desire to fix the school safety funding oversight. He also said he would like to work on a funding formula for the college portion of the school. Chairman Knight inquired about the $133,398 listed in the budget which will be used to follow the QBE funding formula for a replenishment of recession budget cuts.

Lastly, the Georgia School Finance Commission’s (“GSFC”) interim president Caylee Noggle walked members through the Commission’s budgetary needs. The GSFC has provided $817 million in direct awards to 230,000 students in addition to outreach and education services to promote access and understanding of scholarship opportunities. Recently, GSFC has launched a statewide uniform college GPA calculation system to increase uniformity of HOPE scholarship calculations controlling for differences between college GPA factors. In the near future they plan to launch outreach campaigns using both digital and traditional media, hoping to partner with high school counselors to implement financial literacy into curriculums. In the amended FY2019 budget, the GSFC’s largest line item is $3,587,625 to meet the projected need of dual enrollment programs. Upon the conclusion of the GSFC presentation, the committee adjourned.

House Appropriations Committee -- Health Subcommittee

The Health Subcommittee of the House Appropriations Committee, chaired by Rep. Butch Parrish (R-Swainsboro), also met today to hear presentations by the Departments of Community Health and Public Health and Mercer University on Amended FY 2019 budget requests.

The Subcommittee first heard from Commissioner Frank Berry and the Department of Community Health CFO Lisa Walker. Commissioner Berry gave a brief overview of DCH’s operations and efforts to improve customer service and reduce administrative burdens for each of its constituent groups. Chief Financial Officer Lisa Walker presented the Department’s line-by-line budget request for Amended FY 2019, which includes:

  • $18.8M in Disproportionate Share Hospital funds;
  • $5.8M for the addition of recently approved gene therapy drugs to the Medicaid program;
  • $5.7M for implementation of a Medicaid Management Information System;
  • $4.6M for IPPS Phase 3 update and implementation for Medicaid;
  • $2.5M for enrollment of new long term acute care providers;
  • $1M for an external Medicaid consultant who will explore options for a Medicaid waiver in Georgia;
  • $495K for background checks;
  • $480K in Tobacco Settlement Funds for Easterseals’ Champions for Children Program
  • $153K for process improvement in the Healthcare Facility Regulation unit;
  • Allowing DCH to use $25K in existing funds for DDI of the Caregiver’s Registry; and
  • Allowing DCH to use $591K of existing funds to expand the Medicaid asset verification system.

The DCH budget request also includes $33.7M for benefits growth in Medicaid, as well as $162.1M for benefit growth in the State Health Benefit Plan.  

Rep. Carolyn Hugley (D-Columbus) asked if the $1M for “Medicaid Expansion” is really just for a consultant, to which Commissioner Berry noted that waiver applications are complex and most successful applicant states have engaged a consultant to help. Rep. Pat Gardner (D-Atlanta) also asked how a Medicaid waiver would be developed, to which Commissioner Berry noted that DCH would look at how it could have a statewide impact through a waiver, and Grady’s pilot program helps inform the analysis (with care coordination being key).

Rep. Darlene Taylor (R-Thomasville) expressed concern about issues with provider recruitment and retention and PBM clawbacks.

Rep. Jesse Petrea (R-Savannah) asked about improvement in staff recruitment and retention the Health Facilities Regulation Division, to which Commissioner Berry noted that the situation has been improved, but staff is still turning over.

Rep. Lee Hawkins (R-Gainesville) inquired about the Katie Beckett waiver and whether the assessment window could be extended beyond two years, to which Commissioner Berry said that DCH is open to such discussions.

Rep. Hugley also asked whether the addition for Champions for Children in extra tobacco settlement dollars addresses the entire need for services.  Ms. Walker said she would have to find out. Rep. Hugley also inquired about a CMO’s intention to cut provider rates by 20 percent. Commissioner Berry indicated he had just learned about that idea and would be making inquiries on such.

Dr. Pat O’Neal, Commissioner of the Department of Public Health, followed DCH with a brief overview of his department’s Amended FY 2019 budget request. Aside from the statewide adjustments, DPH’s request consists of one item: $72,000 in Tobacco Settlement Funds for an online genetic screening tool for hereditary breast and ovarian cancers. Dr. O’Neal indicated the funds were for Georgia CORE.

Rep. Gardner asked about efforts to address the mental health impacts on maternal mortality rates, to which Dr. O’Neal recognized the need to address mental health and noted that there would be requests in FY 2020 budget. He did state Georgia had typically been working to address hypertension and hemorrhage issues with these women. The state applied recently for a grant to work on maternal mortality driven by mental health - specifically addictive disease and mental illness issues

Bill Underwood, President of Mercer University, spoke to the Subcommittee regarding the budget request for $9.3M to support the establishment of a medical school campus in Columbus. According to Underwood, Mercer was approached by the Columbus community (in part Rep. Richard Smith and former Sen. Pete Robinson) to offer medical education in Columbus, and the local community has secured a facility and raised approximately $13M to renovate it. The new campus is expected to increase Mercer’s physician output by 50% and will help achieve President Underwood’s vision of 25-50 rural health clinics like that opened in Plains. Reps. Hugley and Richard Smith (R-Columbus) spoke in favor of the request, and Rep. Gardner asked why Mercer’s materials did not identify the Philadelphia College of Osteopathic Medicine’s campuses in Suwanee and Moultrie. President Underwood stated that their map only included allopathic medical schools.

House Judiciary Committee Holds First Meeting

The House Judiciary Committee, chaired by Rep. Barry Fleming (R-Harlem), held its first meeting of the session where it introduced its members, adopted rules, addressed the process of  administrative rule proposals, and heard its first two bills. After the adoption of the rules and introduction of members, Chairman Fleming explained the committee’s role in the administrative rule-making process; wherein the Judiciary Committee is able to object to an agency’s proposed rule within 30 days of notice. To better understand the process, the Chairman called on Rep. Jay Powell (R-Camilla) who, in his previous capacity as Chairman of the House Ways and Means Committee, had recently experienced the process of objection. This was followed by testimony from the Office of State Administrative Hearings who explained that newly proposed rules reflect changes in HB 790 from the 2018 session. Chairman Fleming decided to take no action on the rules in this meeting, stating he wanted new committee members to have time to understand the process.

The Chairman called upon Rep. Karen Mathiak (R-Griffin) to present HB 28. Rep. Mathiak was joined by Cliff Edwards, the Chief Justice of the Griffin Judicial Circuit. He expressed the need for a new superior court judge in the circuit, citing the state’s Judicial Council’s data based analysis and large caseload. After Chairman Fleming called on the Judicial Council to explain their analysis process, the bill passed the committee unanimously.

Lastly, Rep. Chuck Efstration (R-Dacula) presented HB 21; a similar measure that would add a superior court judge in the Gwinnett Judicial Circuit. After testimony explaining the large amount of translation required in this circuit due to the diverse citizenry in its jurisdiction, the bill passed the committee unanimously. 

New Legislation

The following legislation of interest was introduced in the House today:

  • HB 14, authored by Rep. Sandra Scott (D-Rex), is the “Georgia Lottery for Assistance of Homeless Military Veterans Act”. The bill amends Title 50 to provide that the Georgia Lottery Corporation shall offer one or more games to benefit homeless military veterans. This bill was referred to the House Appropriations Committee.
  • HB 16, authored by Rep. Sandra Scott (D-Rex), amends Title 20 to classify children from foster homes and children experiencing homelessness as "in-state" for the purpose of qualifying for in-state college tuition scholarships. This bill was referred to the House Higher Education Committee.
  • HB 53, authored by Rep. Kasey Carpenter (R-Dalton), amends Title 20 provide for freedom of religious speech for students and faculty members in public schools. Specifically, the bill bars schools from discriminating against students or parents on the basis of religious viewpoint or expression, allows students to freely express religious beliefs in assignments, and protects students who pray or engage in religious activities before, during, and after school. The bill also requires local school districts to adopt religious nondiscrimination policies. This bill was referred to the House Education Committee.
  • HB 55, authored by Rep. Roger Bruce (D-Atlanta), amends Title 16 to prohibit firearms created by 3-D printing. This bill was referred to the House Public Safety and Homeland Security Committee.
  • HB 57, authored by Rep. Dar’Shun Kendrick (D-Atlanta), amends Title 21 to require that all eligible electors be mailed an absentee ballot for each primary, election, and runoff in which they are eligible to vote. This bill was referred to the House Governmental Affairs Committee.
  • HB 59, authored by Rep. Dave Belton (R-Buckhead), amends Title 20 to allow children of active duty military personnel to register in a local school district based on the parent’s official military orders rather than requiring the family to establish residency. This bill was referred to the House Education Committee.
  • HB 60, authored by Rep. Dave Belton (R-Buckhead), amends Title 20 to provide that dependent children of active duty military members shall be classified as in-state for purposes of tuition and fees by the University System of Georgia and the Technical College System of Georgia. This bill was referred to the House Higher Education Committee.
  • HB 62, authored by Rep. Sharon Cooper (R-Marietta), is “Margie’s Law.” The bill amends Title 31 to require that a health care facility conducting mammograms notify women with dense breast tissue that such tissue may make it difficult to detect cancer through a mammogram and that such women should discuss with their physician whether supplemental tests are warranted. This bill was referred to the House Health and Human Services Committee.
  • HB 63, authored by Rep. Sharon Cooper (R-Marietta), amends Title 33 to require health benefit plans to establish step therapy protocol that establish the specific sequence in which prescription drugs for a specified medical condition are deemed medically appropriate for a particular patient. The bill also requires plans to establish an exception procedure by which a specific drug prescribed by a practitioner is immediately covered by a plan. This bill was referred to the House Insurance Committee
  • HB 64, authored by Rep. Brian Prince (D-Augusta), amends Title 19 to require child welfare agencies to make efforts to determine whether a parent or guardian of a child who is the subject of abuse allegations is on active duty in the military and notify the relevant military installation family advocacy program upon an allegation of child abuse. This bill was referred to the House Juvenile Justice Committee.
  • HB 68, authored by Rep. John Carson (R-Marietta), amends Title 20 to prohibit certain entities from being student scholarship organizations. Specifically, the bill bars affiliates of entities that provide accreditation of elementary or secondary schools from operating as a student scholarship organization. This bill was referred to the House Education Committee.
  • HB 69, authored by Rep. Scot Turner (R-Holly Springs), amends Title 20 to revise the prior school year requirement for the Special Needs Scholarship Program. Specifically, the bill removes the prior year attendance requirement if the applicant has previously qualified for the scholarship. This bill was referred to the House Education Committee.
  • HB 70, authored by Rep. Chuck Efstration (R-Dacula), amends Title 29 to revise provisions relating to guardians and conservators of minors and adults.
  • HB 75, authored by Rep. Ginny Ehrhart (R-Powder Springs), amends Title 40 to clarify when the driver of a vehicle need not stop upon meeting or passing a school bus. This bill provides that drivers only need not stop for a school bus on divided highways. Current Georgia law is unclear and appears to exempt drivers on multi-lane roadways separated by a turn lane median from stopping. This bill was referred to the House Public Safety and Homeland Security Committee.
  • HB 77, authored by Rep. David Clark (R-Buford), amends Title 16 to revise offenses and punishments relating to fraud in obtaining public assistance, food stamps, or Medicaid. This bill was referred to the House Judiciary (Non-Civil) Committee.
  • HB 78, authored by Rep. David Clark (R-Buford), is the “Jeremy Nelson and Nick Blakely Sudden Cardiac Arrest Prevention Act.” The bill amends Title 20 to require that the Department of Education develop and post on its website guidelines and other relevant materials to inform and educate students participating in or desiring to participate in interscholastic athletics, their parents, or guardians, and coaches about the nature and warning signs of sudden cardiac arrest, including risks associated with continuing to play/practice after experiencing certain symptoms. The student participating or desiring to participate in interscholastic athletics and the student’s parent or guardian are required each year and to prior to participation in such activity to sign and return to the student’s school an acknowledgement of receipt and review of the sudden cardiac arrest symptoms and warning signs. The school would also be required to hold an informational meeting prior to the start of each athletic season for all ages of competitors regarding the symptoms and warning signs of sudden cardiac arrest.  The bill further requires the student to be removed from play should the student pass out or faint. Students removed from participation in such athletics are not permitted to return to participation until the student is evaluated and cleared for return to participation in writing by an appropriate healthcare provider. The legislation also addresses coaches and requires them to review the guidelines and relevant materials. This bill was referred to the House Education Committee.
  • HR 52, authored by Rep. John Corbett (R-Lake Park), encourages all schools, local educational agencies, and the state educational agency to recognize that dyslexia has a profound educational impact that must be addressed. This resolution was referred to the House Education Committee.

Due to weather concerns, the Senate did not convene today. Therefore, no bills were read for the first time.

 

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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