Gold Dome Report - March 2020 #4

Nelson Mullins Riley & Scarborough LLP

As skies cleared over the Gold Dome this evening, legislators and lobbyists rode floods of rainwater and legislation out of the building and into a three-day respite from the 2020 Legislative Session. Completing a week filled with substantial floor and committee action ahead of Crossover Day one week from today, the halls of the Capitol quieted early, certainly the calm before what will be more downpours next week. Before exiting, legislators passed provisions relating to newborn health screenings and special education evaluations for foster kids in the House and bills allowing Georgia to enter into the Audiology and Speech-Language Pathology Interstate Compact and forcing a bitter pill upon pharmacy benefit managers. Action in committees was also vigorous, resulting in a spate of education and insurance measures moving a step closer to consideration in their respective chambers.

While those outside the State Capitol enjoy sunny skies and relaxation over the next three days, work is likely to continue inside the building and behind closed doors. The House Appropriations Committee is slated to unveil its FY21 Budget proposal early Monday morning, and there are a lot of copies yet to make. Follow #GoldDomeReport on Twitter for news on who is in and who is out of the spending proposal as it breaks.

In today’s Report:

  • Notable Floor Action
  • Committee Reports
  • New Legislation
  • Rules Calendars for Legislative Day 26

Notable Floor Action

The House acted on the following legislation of note today:

The House began its business by appointing a Conference Committee to hash out the differences on HB 792, the AFY 20 budget.

  • HB 576, authored by Rep. Rick Williams (R-Milledgeville), would change the distribution priority for court fine payments by moving the Brain and Spinal Injury Trust Fund higher on the list of priority. This bill passed by a vote of 165-0.
  • HB 847, authored by Rep. John Corbett (R-Lake Park), would update the state’s hemp farming laws to fall in line with new USDA rules. Rep. Matthew Wilson (D-Brookhaven) noted that while he filed a minority report for the bill, the Rules Committee substitute addressed his concerns and he thereby withdrew his contention to the bill. This bill passed by a vote of 159-7.
  • HB 855, authored by Rep. Marcus Wiedower (R-Watkinsville), would direct the State Board of Education to create standards to determine if a foster child has experienced trauma that would require special education services. This bill passed by a vote of 165-0.
  • HB 885, authored by Rep. Jesse Petrea (R-Savannah), would allow District Attorney certain records of inmates prior to their parole in order to allow them to file a petition of complaint. Rep. Alan Powell (R-Hartwell) expressed concerns that some of the information revealed in these records could be misused by DAs, especially information provided as a confidential informant to the Department of Corrections. Rep. Petrea assured him that this bill would protect this type of information. This bill passed by a vote of 108-57.
  • HB 1054, authored by Rep. Sharon Cooper (R-Marietta), would revise the list of disorders in the state’s newborn screening program. The bill provides for a committee to make recommendations to the state for new newborn screenings. This bill passed by a vote of 161-0.
  • HB 815, authored by Rep. Houston Gaines (R-Athens), would exempt public water and sewer utilities from certain taxes. This bill passed by a vote of 166-0.

The Senate acted on the following legislation of note today:

  • SB 313 - Pharmacy Benefits Managers; regulation and licensure; extensive revisions; provide (Substitute) (I&L-11th)  This bill passed 52-0.
  • SB 248 - Georgia Firefighters' Pension Fund; monthly dues, tax on premiums and maximum monthly benefit amount payable; increase (Substitute) (RET56th)  This bill passed 51-1.
  • SB 249 - Peace Officers' Annuity and Benefit Fund; amount of monthly dues paid; increase; amounts collected from fines; revise (Substitute) (RET-56th)  This bill passed 48-0, adding in jail officers to this pension fund.
  • SB 431 - Annual Performance Evaluation; definition of "on-time graduation rate"; provide (ED&Y-50th) This legislation is solely about providing a definition for the term, “on-time graduation rate.” This legislation passed without questions 45-0.
  • SB 336 - License Plates; eligibility for certain members of the military to receive special license plates; expand (PUB SAF-51st) This bill passed 41-1.
  • SB 306 - "Audiology and Speech-Language Pathology Interstate Compact"; enter into compact; licensing provisions; revise (Substitute) (H&HS-34th)  This bill passed 46-0.
  • SB 355 - Professions and Businesses; certain boxing, wrestling, and martial art associations and federations; provisions; change (RI&U-21st)
  • SB 370 - Public Utilities and Public Transportation; compliance with certain safety and permit requirements; electric easements are utilized for broadband

The Senate took up the Conference Committee Report on SB 110, which is legislation addressing the Statewide Business Court. After initially being voted down by 24-27, the Senate reconsidered its action. The Report now lays on the table awaiting further consideration.

Committee Reports

Senate Education and Youth Committee

The Senate Education and Youth Committee, chaired by Sen. P.K. Martin (R-Lawrenceville), met this morning to consider several bills:

  • SB 349, authored by Sen. Donzella James (D-Atlanta), amends Title 20 and requires public schools to provide feminine hygiene products in every female restroom in schools with students in grades 6-12 at no charge to the students. Sen. Freddie Powell Sims (D-Dawson) presented the bill on Sen. James’s behalf, and Deputy Superintendent Tiffany Taylor spoke to the pilot program funded last year to provide these products in schools. In the pilot program, the State financed the products but not the dispensers, which Ms. Taylor noted cost approximately $366 each. This cost caused several members to balk. An amendment was proposed to allow schools discretion where to place and how to dispense such products (eliminating the every restroom requirement), and the amendment was adopted. The Committee recommended the bill DO PASS by Committee Substitute, and the bill proceeds to the Rules Committee.
  • SB 404 and SR 776, authored by Sen. Greg Dolezal (R-Cumming), would allow local school boards in high-growth school districts to levy development impact fees for the purpose of funding education infrastructure. The Home Builders Association of Georgia is opposed to the bill, and the Georgia Apartment Association expressed opposition but welcomed a discussion of the concept. On SB 404, a motion DO PASS by Committee Substitute drew a 4-4 vote with the tie broken by Chair Martin to pass the bill and send it to the Rules Committee. On SR 776, a motion DO PASS by Committee Substitute drew a 5-3 vote, sending the bill to the Rules Committee.
  • SB 430, authored by Sen. William Ligon (R-Brunswick), amends Title 20 to authorize home study students and private school students to take courses at a college and career academy. Sen. Ligon proposed a substitute that clarified that local school boards would be allowed to elect for themselves whether to enroll home study or private school students. Although the law arguably already allows this type of enrollment, Sen. Ligon’s local college and career academy has requested clarification of the law. The Committee recommended the bill DO PASS by Committee Substitute, and the bill proceeds to the Rules Committee.
  • SB 440, authored by Sen. Bruce Thompson (R-White), amends Title 20 to provide that certain individuals between ages 21 and 35 may be eligible to enroll in a charter school that provides instruction only for over-age students. The bill also raises the age limit for award of a high school diploma to 35. Goodwill Industries is promoting the bill and will seek to operate two state charter schools (one in Savannah and one in Macon) for these individuals. A fiscal note indicated a cost of $24.5M for 2,500 students, but the Goodwill representative said they estimate a cost of $3M for up to 700 students, and the bill provides that public funding will not be sought before July 1, 2021. The representative noted that Goodwill will pay for infrastructure and building costs. Several members of the Committee expressed concern about the ultimate cost of QBE for these students, and a partnership with TCSG was recommended. Chairman Martin deferred action on the bill, suggesting that a study committee or subcommittee would be organized to explore the issue after this legislative session.
  • SB 486, authored by Chairman Martin, amends Title 20 to require administration of either the SAT or the ACT to all public school students in grade 11. The bill was presented as a substitute that clarifies that such exams are for the students “who choose to participate” and shall be administered during normal school hours. It also expands the eligible exams beyond ACT and SAT to any “nationally-recognized exam” Notably, this requirement is subject to appropriation of State funds to pay for the cost of the exams.

Sen. Lester Jackson (R-Savannah) asked about the time required out of the school day for these exams, to which Ms. Perry of the Georgia Chamber of Commerce said three hours. Achieve Atlanta, who partners with Atlanta Public Schools to administer the SAT and ACT for 11th grade students during the school day, spoke in favor of the bill. On a motion that the bill DO PASS by Committee Substitute, Chairman Martin broke a 3-3 tie amongst the Committee to advance the bill to the Rules Committee.

House Natural Resources Committee

The House Natural Resources Committee, chaired by Rep. Lynn Smith (R-Newnan), met this morning to consider a variety of measures.

  • HB 926, authored by Rep. Terry Rogers (R-Clarksville), makes alterations to the Solid and Hazardous Waste Fund including extending the sunset provision from one to five years of reauthorization. This bill received a recommendation DO PASS.
  • HB 906, authored by Rep. Darlene Taylor (R-Thomasville), allows the state to remove the heritage designation for state owned property under 15 acres. Currently this designation exists in perpetuity and DNR would like a less burdensome process to return some properties back to private holdings for upkeep. This bill received a recommendation DO PASS.
  • HB 857, authored by Rep. Alan Powell (R-Hartwell), prohibits the burning of wood treated with certain chemicals for industrial energy production. Rep. Tom McCall proposed an amendment to clarify that the bill would become effective immediately upon the signature of the Governor. This amendment was adopted. The bill, as amended, received a recommendation DO PASS.
  • HB 959, authored by Rep. Stephen Meeks (R-Screven), raises the fees for coal ash depositing in the state. This bill received a recommendation DO PASS.
  • HB 1015, authored by Rep. Marcus Wiedower (R-Watkinsville), creates the Georgia Carbon Sequestration Registry. This bill received a recommendation DO PASS.
  • HB 927, authored by Rep. Don Parsons (R-Marietta), adds new regulations for the use of ethylene oxide including more stringent reporting of spills. This bill received a recommendation DO PASS.

House Appropriations Committee

Chairman Terry England (R-Auburn) and his Committee met early this morning to review four compensation resolutions. Each of the proposals cleared the Committee in the form of a Committee Substitute with a Do Pass recommendation, moving each to the House Rules Committee.  However, each received dissent in being passed. Questions centered on whether the state was the proper body to provide this compensation or whether it would be better addressed by the local governments involved. The victims involved did receive empathy and legislators made clear that in taking up these ideas that the Committee was not asserting the individual’s innocence. These resolutions moved forward to the House Rules Committee were:

  • HR 18, by Representative Carolyn Hugley (D-Columbus), which will provide compensation to a gentleman from Columbus who served 20 years for an armed robbery conviction.  The case was eventually overturned. The Court of Appeals in its findings noted that the lost appeal paperwork caused an “unnecessary delay” to the gentleman.  Lawmakers questioned whether the state should pay; the response was that the judicial system failed Mr. Robinson. The compensation is $560,000 in an annuity over 20 years and a lump sum payment of $50,000.
  • Three other Resolutions were taken as a group as it involved three Army personnel in Savannah who were arrested and convicted of murder.  These Resolutions, presented by Representative J. Craig Gordon (D-Savannah), were HR 1038, HR 1039, and HR 1041. Each gentleman will receive an annuity of $1 million over 20 years; $50,000 of that amount, though, will be paid out in an initial payment to each. These gentlemen argued that the pressure and intimidation applied by the District Attorney and local law enforcement to a witness resulted in their wrongful arrests and convictions.

House Special Committee on Access to Quality Health Care

Chairman Mark Newton, MD (R-Augusta) and his Committee met this morning on three different bills.  They only heard testimony on HB 1027 (by Representative Lee Hawkins (R-Gainesville) addressing pharmacy benefit managers’ rebates) and HB 1032 (by Representative Matt Hatchett (R-Dublin) addressing the codification of a Department of Community Health practice for ambulatory surgery centers’ architectural requirements under its CON regulations and language from Senator Matt Brass’ bill on mental health services for rural hospitals); each of those bills will be brought back before the Committee on Monday.  HB 991, the legislation by Representative Matt Hatchett (R-Dublin), received a DO PASS recommendation.  The legislation addresses pharmacy benefit managers’ transparency for those which contract with the State’s Care Management Organizations (CMOs) and State Health Benefit Plan contractors. The bill also creates a nine-member oversight committee to be known as the Healthcare Transparency and Accountability Oversight  Committee to review these contractors, their affiliates and subcontractors and requires a drug transparency report on what each contract is paid.  Support from HB 991 was rendered by the Medical Association of Georgia and the Georgia Pharmacy Association.

House Education Committee

The House Education Committee, chaired by Rep. Rick Jasperse (R-Jasper), met this afternoon to consider multiple bills.

  • HB 1026, authored by Rep. Robert Dickey (R-Musella), revises the number of REACH scholarships by reducing the number per district. Rep. Dickey explained that these minor adjustments will help ensure the program’s financial solvency. Members of the committee expressed their support for the program and their appreciation for bringing the bill. This bill received a recommendation DO PASS.
  • HB 86, authored by Rep. Tommy Benton (R-Jefferson), introduces revisions to the state’s teacher review practices. Rep. Benton explained that he views this as a crucial step to improve teacher retention. This bill received a recommendation DO PASS.
  • HB 1055, authored by Chairman Jasperse, would allow for homeschool students to participate in extracurricular activities at their resident school within their resident school district. Rep. Jasperse explained that this bill was his attempt to satisfy both the school districts and homeschool students. He also stated that he originally did not see a way that this issue could work; however, he wanted to try to find a way to address the issue. Rep. Jasperse walked the committee through the provisions of the bill, spending extra time on the specific eligibility requirements for homeschool students. The bill requires that students must be selected by the program for participating through a try-out or similar evaluation. To address the cost of participation, the online course required for participation shall be counted as a one-sixth segment of the school day to be reported by the school district to the Department of Education.

    Rep. Bee Nguyen (D-Atlanta) asked for clarification on the disciplinary methods for homeschool students, specifically how out-of-school suspension would be different from their typical school day as a homeschool student.

    There were multiple amendments to the bill. Rep. Chris Erwin (R-Homer) proposed that the bill contain language to allow individual school systems to make the decision to allow homeschool students to participate. The amendment failed to be adopted.

    The bill received a recommendation DO PASS by a vote of 9-7.

Senate Insurance and Labor Committee

The Senate Insurance and Labor Committee, chaired by Sen. Burt Jones (R-Jackson), met to consider several bills today:

  • SB 299 was the first bill on the agenda.  Sen. P.K. Martin, IV (R-Lawrenceville) provides for  notices to policy holders when policies are on automatic drafts for individual disability policies.  Presently, there is no requirement for an annual disclosure of premiums. Bobby Potter spoke on behalf of the American Council on Life Insurers, noting that there are costs associated with this.  Insurers are required to send a notice if there is an increase. Senator Harbison asked how this would impact AFLAC; it would depend according to Mr. Potter. Motion DO PASS was made; the motion carried and bill moves to Senate Rules Committee.
  • SB 432, by Senator Marty Harbin (R-Tyrone), came before the body a couple of years ago. Life insurance policy issue; there is no annual statement for paid-up life insurance policies which are in effect. The example given was for an individual in his district; it was a policy for $10.00 per month for ten years. Many of these are very small policies. Owner, insured and beneficiary on every policy. If the insurance company cannot find the beneficiary, the money goes to the state.  Social Security death benefit list is used by insurance companies to determine who has died; but beneficiary must file a claim. NAIC set up a policy locator and that is found on the Department of Insurance’s website - but a voluntary process to find policies. The substitute of the bill requires an annual statement be sent to the insured. Bobby Potter spoke in opposition to the bill and annual statement, per ACLI, and some of the companies have competitive distinctions.  Brad Carver and Hall Booth represent the National Association of Insurance Advisors and it supports the bill. SB 432 received a DO PASS recommendation and moves now to Senate Rules Committee.
  • SB 412, by Senator Randy Robertson (R-Cataula), came before the Committee in the form of a new Substitute. The bill amends O.C.G.A. 33-7-6 and addresses service contracts to  require the insurer to provide a 30 day notice for cancellation.  No testimony was offered. The bill received a DO PASS recommendation; the motion passed and bill moves to the Senate Rules Committee.

New Legislation

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

  • HB 1102, by Representative Dale Rutledge, seeks to add new language at O.C.G.A. 48-8-109.15 et seq. In Georgia’s Tax Code. It seeks to enact the Revised Homestead Option Sales and Use Tax Act of 2020. This bill was referred to the House Ways and Means Committee.
  • HB 1103, by Representative Calvin Smyre (D-Columbus) seeks to address use of personal care homes for children. It adds language in a new Code section at O.C.G.A. 31-7-12.4 , so that  “upon the license or permittance of a personal care home, the commissioner shall provide notification of such to the local law enforcement agency, fire department, licensing department, and planning and zoning department of the county or municipality, as applicable, in which such personal care home is or is to be located."  It further adds another new Code sections at O.C.G.A. 49-5-12.4 (requiring that local agencies are to be notified where the child caring institution is to be located) and O.C.G.A. 49-5-12.5 (requiring that local agencies are to be notified where the foster care home is to be located). This bill was referred to the House Health and Human Services.
  • HB 1105, by Representative Mark Newton, MD (R-Augusta), seeks to create the Patient Protection Through Health Information Exchange Act in O.C.G.A. 31-7-286 et seq. It seeks to add in part that hospitals, as a “condition for maintaining a certificate of need issued pursuant to Article 3 of Chapter 6 of this title and as a prerequisite for being awarded such a certificate, each 34 hospital shall be required to complete a survey regarding the following information: (1) Whether such hospital is a meaningful electronic health records user with regard to patient records and the communication of such records to other hospitals; (2) Whether there are any legal or practical barriers preventing such hospital from becoming a meaningful electronic technology user as described in paragraph (1) of this  subsection;  (3) Whether such hospital uses certified electronic health records technology; (4) Whether there are any legal or practical barriers preventing such hospital from using certified electronic health records technology;  (5) Whether such hospital has established a timeline for becoming a meaningful electronic health records user of certified electronic health records technology; and  (6) Such additional questions as the department may determine necessary.”  Such a survey would be required by October 1, 2020. This bill was referred to the House Special Committee on Access to Quality Healthcare.
  • HB 1106, authored by Rep. Mike Glanton (D-Jonesboro), creates O.C.G.A. 20-2-641 to direct the State Board of Education to develop a program to provide a whole child model certificate for all schools that implements a whole child program in partnership with state and community partners. This bill was referred to the House Education Committee.
  • HB 1108, authored by Rep. James Burchett (R-Waycross), amends O.C.G.A. 29-3-3 to alter provisions about the procedures and requirements for the payments of minor’s court settlements. This bill was referred to the House Special Committee on Access to the Civil Justice System.

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

  • SR 901, by Senator Randy Robertson (R-Cataula), seeks to encourage the coverage of IVF procedures under the State Health Benefit Plan. This resolution was referred to the Senate Health and Human Services Committee.

Rules Calendars for Legislative Day 26

The House is expected to take up the following measures on Monday for Legislative Day 26:

  • HB 911 -- Crimes and offenses; offenses of improper sexual conduct by a foster parent in the first and second degrees; provide
  • HB 983 -- Sexual Offender Registration Review Board; information required to be provided by sexual offenders when they register; revise
  • HB 984 -- Criminal procedure; sentencing; change provisions

The Senate is expected to take up the following measures on Monday for Legislative Day 26:

  • SB 311 -- Health; patient brokering; prohibit; definitions; exceptions; penalties; provide
  • SB 318 -- Education; public forums at public institutions of higher education; provide
  • SB 344 -- Witness or Criminal Defendant; certain proceedings conducted by video conference; requirements; provide
  • SB 369 -- Department of Revenue; electronic transmission of returns by public utilities; require
  • SB 391 -- "Early Prescription Refills During Emergencies Act"; health insurers to provide coverage for early refills of a 30 day supply; require; enact
  • SB 439 -- Juvenile Code; enhanced notice to and improved participation of foster, preadoptive, and relative caregivers in certain hearings; provide
  • SB 442 -- Property; amendments to property owners' association instruments and covenants that restrict rental of residential lots and plots; prohibit
  • SB 459 -- Public Utilities and Public Transportation and State Government; funding for the deployment of certain communications services throughout this state; provide
  • SB 462 -- Banking and Finance; duties, powers, and responsibilities relative to industrial loans from the Industrial Loans Commissioner to Department of Banking and Finance; transfer

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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