Gold Dome Report - June 2020 #1

Nelson Mullins Riley & Scarborough LLP

Lawmakers began early, and in earnest, this morning in an effort to complete the 2020 Legislative Session, primarily to write a FY 2021 budget as constitutionally required. While many lawmakers and lobbyists donned masks to protect themselves and others from the coronavirus, there were many seen who appear to have abandoned this safety measure. We can only hope that lawmakers, staff, lobbyists and the public do not succumb to another bout of COVID-19. In the House, Speaker David Ralston reminded members to “think about your neighbor, wear the mask” and stated that violators will be escorted out of the chambers.

“Times are a changing” so to speak as the House amended its rules today to allow for not only virtual meetings but also virtual legislative sessions, should the need arise. More on that effort is today’s #GoldDomeReport.

The Senate Appropriations Committee announced late today that it will meet on Wednesday morning at 8 a.m. to discuss the FY 2021 Budget. Please follow along with us as we report on the status of legislative initiatives remaining in the coming weeks.

In today’s Report:

  • Senate Floor Action
  • House Floor Action
  • Committee Notes

Senate Floor Action

The Senate Rules Committee set a Senate Rules Calendar this morning at 8:00 AM with the following measures heard on the Senate Floor:

  • HR 1023, by Representative Andy Welch (R-McDonough), seeks to amend Georgia’s Constitution to address a waiver of sovereign immunity. This Constitutional Amendment proposal at Article I, Section II at Parragraph V will allow the citizens to decide whether a claim for damages can be made for wrongdoing by a local or state entity when that local or state entity violates the laws or constitution of Georgia. Representative Welch has worked on this effort for five years. Sen. John Kennedy (R-Macon) presented the resolution on the Senate floor. He also proposed an amendment to clarify circumstances under which sovereign immunity can be waived. The resolution passed as amended 50-0. This initiative now must return to the House for an agreement before it can make its way to the Governor’s desk.
  • HR 935, by Representative Kevin Tanner (R-Dawsonville), seeks to extend a Freight and Logistics Commission which was originally created in 2019. Senate sponsor Brandon Beach (R-Alpharetta) noted that this Commission has learned that there is no truck parking on Georgia roads and that only 17 percent of the freight from Georgia’s ports is moved by rail when it should be more than 30 percent. This Commission is made up of 16 individuals, including members of the House and Senate as well as industry and government and business organizations. This resolution passed 51-0.
  • HB 781, by Representative Bruce Williamson (R-Monroe), is Georgia’s annual Banking Code update in Title 7. This bill passed in the Senate 49-0.

House Floor Action

The House began its discussions listening to one of their own colleagues, Representative Randy Nix (R-LaGrange), noting that we are all in this together. Each of us comes for a short visit on earth, quoting Albert Einstein, and that we are here for the sake of other men. He further reminded his colleagues that all lawmakers are here to “stand in the gap” that they are commissioned to fill in by their constituents.

It was an emotional day as well - Representative Todd Jones (R-Cumming) honored former House Colleague Mike Dudgeon’s son, Daniel Dudgeon, who died by suicide while the House was in recess. Representative Jones, along with other members of the Forsyth County Delegation, urged colleagues to advocate for greater resources for suicide prevention; streamline organ donation processes; and research for ties relating to depression and suicide. Representative Erica Thomas (D-Austell) also honored the life of Ahmaud Arbery who was fatally shot in Glynn County on February 23, 2020.

Like the Senate, the House Rules Committee met briefly at 9:00 AM, setting today’s House Rules Calendar for action on the Floor:

  • SB 43, by Senator Chuck Payne (R-Dalton), seeks to revise the definition of the term "undertaking" as it relates to electric systems in O.C.G.A. 36-82-61(4)(C)(iv). This bill was postponed until the next legislative day.
  • SB 134, by Senator Kay Kirkpatrick, MD (R-Marietta), seeks to move the oversight in O.C.G.A. 50-12-131(a) of the Holocaust Commission from the Department of Community Affairs to the Board of Regents so as to better align its activities with its educational mission. Senator Kirkpatrick reminded the House Rules Committee that this administrative move will be a savings of $45,000. Representative Deborah Silcox (R-Sandy Springs) presented the initiative. It remains independent. SB 134 passed 160-0. This bill proceeds to the Governor’s desk for his review and consideration.
  • SB 188, by Senator Larry Walker (R-Perry), seeks to amend O.C.G.A. 33-7-14, addressing reinsurance of risks. Specifically, this bill incorporates the National Association of Insurance Commissioners reinsurance model law into the Georgia Insurance Code and provides domestic ceding insurers credit as either an asset or a deduction in liability on account of reinsurance purchased only when the purchase meets new requirements. SB 188 was presented by Representative Noel Williams (R-Cordele) who explained that Georgia is required to update model laws by NAIC for accreditation so that companies meet solvency requirements. SB 188 passed unanimously 165-0, and it now moves back to the Senate for its review of the House changes.
  • SB 345, by Senator Kay Kirkpatrick, MD (R-Marietta), seeks to make a series of changes in Chapter 2 of Title 26, relating to standards, labeling, and adulteration of food. It proposes to provide for nonprofit organizations the ability to prepare and provide food in accordance with Department of Public Health requirements and also revises the definitions of "food sales establishment" and "food service establishment." Further, the legislation proposes to revise provisions relating to permits for nonprofit food sales and food service and the requirements for food items prepared by nonprofit organizations. It also seeks to eliminate the right to appeal to the commissioner of public health for orders or actions of a county board of health or district health director. SB 345 was presented by Representative Bert Reeves (R-Marietta) is more important now than when the members left in March. Every community has children that if they do not go to school do not eat; nonprofits stand in to help fill that gap. The bill was brought by MUST Ministries and it requested to work with standardized regulations so that nonprofits can help prepare these meals. Representative Doreen Carter (D-Lithonia) inquired about processing the food in the home which is prohibited in SB 345. Some nonprofits, she reminded colleagues, are very small. So how can the state address those. Most churches have some sort of kitchen but the bill does prohibit meals from being prepared in private homes. SB 345 passed with, with dissent, by a vote of 150-12. The legislation moves now to the Governor’s desk for review and consideration.
  • HR 1507 was presented by House Majority Leader Jon Burns, which permits the House to conduct virtual committee meetings and legislative sessions, if necessary. It will allow the Rules of the House to complete the work of the body in this fashion when the members cannot be physically present. Documents would be delivered electronically to members and otherwise conform with current rules in terms of timing. It further sets up quorum requirements to conduct business. HR 1507 passed 154-3.

Lawmakers reconvene tomorrow, Tuesday, June 16, 2020 at 10:00 AM for Legislative Day 31.

Committee Notes

Senate Finance Committee

This afternoon the Senate Finance Committee, chaired by Senator Chuck Hufstetler (R-Rome), met to hear Representative John Carson’s (R-Marietta) annual Internal Revenue Code update proposal. The Committee also was presented a spreadsheet outlining changes made from two federal pieces of legislation impacting Georgia’s Tax Code. The changes at the federal level were from the Taxpayer Security Act (2019) and the CARES Act (2020). The CARES Act, for instance, changes the Georgia Tax Reform Act which had eliminated a carry back provision; the CARES Act permits such carry back for five (5) years. The legislation also addresses the 461 losses. Under the current initiative being considered, the changes would apply, if passed, to tax years 2019 and 2020. Representative Carson, an accountant by profession, urged the Senators to move the legislation forward as it will, in part, allow $178 million in revenue to be recognized by the state.

Senate Education & Youth Committee

The Senate Education & Youth Committee, chaired by Senator P.K. Martin (R-Lawrenceville), met today to hear an update from the Georgia Department of Education on its response to COVID-19. Tiffany Taylor, Deputy Superintendent for External Affairs and Policy, provided an overview of the Department’s efforts, which ranged from making funds available for technology resources to expanding distance learning capabilities to providing guidance on best practices. Looking ahead, Ms. Taylor highlighted the Department’s work to enable a return to face to face instruction. The Department is providing restart guidance, contracting for PPE, coordinating mental health training, sharing formative assessment and professional learning resources, and partnering with GPB to provide head start resources to parents of young children.

Dr. Linette Dodson, the Department’s nutrition chief, discussed school nutrition in light of the pandemic. She noted that schools have served over 29 million meals during the pandemic, and over 1,100 seamless summer food sites are operating in Georgia. Dr. Dodson also highlighted challenges ahead, including necessary extensions to USDA waivers, funding for staffing, distribution logistics, and providing access for all children with social distancing.

Chris Shealy, Director of Technology Services for the Department, discussed their continuing work to ensure students have access to the technology necessary to learn remotely. In addition to providing guidance to local districts on how to expand internet access for families, the Department has worked to negotiate lower cost personal wifi devices and provided other resources.

The Committee will reconvene on Wednesday to consider “two to three bills” according to the Chair.

Senate Public Safety Committee

The Senate Public Safety Committee, chaired by Senator John Albers (R-Roswell), met today to consider three bills:

  • HB 823, authored by Representative Houston Gaines (R-Athens), proposes to bring Georgia into alignment with a federal law regarding the revocation of driver’s licenses for individuals convicted of human trafficking offenses. The bill received a recommendation DO PASS without any discussion.
  • HB 216, authored by Representative Teri Anulewicz (D-Smyrna), was introduced as a committee substitute. The new language relates to the liability of businesses that operate amidst the COVID-19 outbreak. The bill is specific to SARS and other coronaviruses including COVID-19. Chairman Albers noted the bill does not affect workers’ compensation. The bill would be effective upon the signature of the Governor, but would only remain effective for two years after a State of Emergency has been issued. Senator Tyler Harper (R-Ocilal) asked what level of negligence must occur for a civil suit to be allowable. Chairman Albers answered that the bill calls for a gross negligence standard. The bill received a recommendation DO PASS by a vote of 7-3.
  • HB 342, authored by Representative Matt Dollar (R-Marietta), relates to regulation of booting and parking regulations. The bill only applies to commercial property. Representative Dollar explained that the bill calls for uniforms to be worn by booters and visible signage in parking lots. The bill also sets a maximum fee of $65 for a boot. Senator Randy Robertson (R-Cataula) asked if this bill is intended to address an issue that municipalities have not addressed themselves. Representative Dollar explained that some municipalities have banned booting outright but the bill requires local municipalities to pass an ordinance that allows booting. Senator Harper took issue with the idea of banning an action on private property unless a local government acts to allow it. Senator Harper added that he does believe some improvement needs to be made in the industry, but he has concerns with the bill as written. The committee did not take action on the bill at this meeting.

Senate Health and Human Services Committee

Chairman Ben Watson, MD (R-Savannah) chaired his Committee meeting this afternoon, taking up one proposal by Representative Matt Hatchett (R-Dublin), HB 991. No action was taken at today’s meeting on this bill. HB 991 proposes to create the Healthcare Transparency and Accountability Act in Title 31. Specifically, it would create an “oversight committee” composed of six members of the House and Senate as well as include a physician, pharmacist and a consumer member of the State Health Benefit Plan. The legislation also is proposed to be amended so that this oversight committee cannot act on its own in eliminating a contract held with the state. Senator Kay Kirkpatric (R-Marietta) indicated she would like to add language so that entities participating in the State Health Benefit Plan would also be required to participate in the insurance exchange. Senator William Ligon, Jr. (R-Brunswick) inquired about the enforcement mechanism in obtaining information requested; the Department of Insurance Commissioner is provided the ability to levy fines according to Representative Hatchett. Senator Larry Walker (R-Perry) asked if the pharmacy benefit manager industry drove this effort; Representative Hatchett indicated that was the case. Senator Walker asked if the state could leverage competition, particularly in rural areas. 

The Georgia Dental Association’s legal counsel, Scott Lafranco testified in favor of the proposal. The Georgia Dental Association has sought to carve out dental coverage form the State’s Medicaid CMOs as the four presently contract with three dental management organizations, and their legal relationships do not extend to those entities. The Georgia Dental Association is interested in the loss ratios for dental services as presently that information is not reported directly; Mr. Lafranco acknowledged that the losses, however, could be a part of the medical loss ratio.

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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