The Senate dominated the news today as they unveiled both their take on the state’s FY 2021 budget (which was laden with cuts to align with decimated state revenues resulting from the COVID-19 shutdown) and the first public draft of Lt. Governor Geoff Duncan’s long awaited hate crimes bill. Nevertheless, the (mostly empty) halls echoed with the sounds of voting bells as a handful of propositions reached the finish line in the House and Senate chambers. Notably, the Senate gave final approval to HB 888 which addresses balance billing for health care services rendered to Georgians. Since the version passed today made no changes to the House’s language, the bill moves to Governor Kemp’s desk for a final signature. It’s only Wednesday, and there is much going in committee rooms around Capitol Hill. Stay tuned to the #GoldDomeReport, because we’re not going anywhere.

In this Report:

• Senate Unveils FY21 Budget Proposal
• Notable Floor Action
• Committee Reports
• Rules Calendars for Legislative Day 33

Senate Unveils FY21 Budget Proposal

The Senate Appropriations Committee met at 8 a.m. today to adopt its recommendations for changes to the FY21 state budget proposal contained in HB 793.  Chairman Blake Tillery (R-Vidalia) offered opening remarks that were eloquent and thoughtful.  He complimented gracefully his deceased predecessor, Senator Jack Hill from Reidsville, who had led the Committee for numerous years until his untimely death during the recess. He led with a description of the changes in the economy in the last three months, significantly affecting revenues.

During the crisis, the two Appropriations Chairs, leadership in both houses, and the Governor’s Office of Planning and Budget had originally requested that agencies propose cuts of 14% to their budgets as they existed on July 1, 2019, because of expected, and now partially realized,  revenue shortfalls resulting from the economy shutdown from the COVID shelter in place orders. This target was reduced to 11% by Governor Kemp about two weeks ago, and each agency commented on what cuts it originally proposed at the 14% level that it would suggest for restoration at the 11% budget cut target. The targeted amount of funds to be cut by the legislature at this 11% level is $2.6 billion. Neither the Senate nor the House is required to follow the agency recommendations and the Senate Appropriations Committee has made its own recommendations to reduce the state FY 2021 budget by this amount.  At this point in time, there have not  been any changes in state revenue that could result from changes in tax rates or credits or items to be taxed, other than a more extensive coverage of inter state internet sales.  Such changes could result before the legislature concludes in the next 10 days.

Sen. Tillery accented that the Department of Education budget constitutes 54% of state funds. The Senate is recommending an 11% cut to the quality basic education formula, but it also was able to add some back for the poorer school systems in sparsity grants and adjustments called the “local five mil share” provisions that regulate how much money school systems with lower property tax digests must raise themselves. Using lottery funds at the current expected levels, no cuts were recommended for pre kindergarten programs.  But the Board of Regents and the Technical College Education System of Georgia were each cut 11% in their state funding.   Following cuts to these systems is complicated by the fact that the two systems also charge tuition and room and board and raise funds from these other sources.

There was an effort to reduce the volume of state employee furloughs generally to twelve furlough days so that the workforce remains in place for important human service and development functions, such as the provision of child welfare, mental health and correctional services. But the cuts to the agencies that are heavily funded by state dollars, such as the Department of Behavioral Health and Developmental Disabilities and the Departments of Corrections and Community Supervision are still extensive. The Senate Committee did make efforts to restore funds in DBHDD for autism services, school based mental health and developmental disabilities. It assured that new DD services would be fully funded and some waiver slots would be added.  It also reduced the cuts to the residential service programs for foster kids and for some educational services in the Department of Human Services Division of Family and Children's Services. The Senate also put back about $2.3mm in funds for cancer services.

As often happens during a recession, the state bond package was recommended for increases to a total of $990 million. This package takes advantage of lower interest rates resulting from the COVID recession and typically funds roads, bridges, schools, colleges and universities.

The full budget can be reviewed online here. The bill now goes to the Senate Rules Committee, where it is expected to set the bill on the calendar for Friday, June 19, for a vote by the full Senate. The bill will then proceed to the House for an agreement to the Senate changes, a House amendment, or House insistence on its version of the budget and establishment of a conference committee.  Ultimately, a conference committee is expected, and that committee could begin work as early as Friday afternoon or Saturday.  The conference committee is likely to consist of two Appropriations Committee Chairs (Sen. Tillery and Rep. Terry England), the two pro tems from each hosue (Sen. Butch Miller and Rep. Jan Jones) and the two Repbulican Majority Leaders (Sen. MIke Dugan and Rep. Jon Burns).

Notable Floor Action

House
The House began Day 33 by voting on a motion to reconsider SB 43 which passed narrowly the previous day. The motion to reconsider failed by a vote of 66-91. Afterwards the House moved on to the rules calendar and gave final approval to a small slate of bills.

• HB 1029 provides for nonpartisan elections for the Twiggs County probate judge. This bill PASSED by a vote of 91-69.
• HB 1030 provides for nonpartisan elections for the Twiggs County Chief Magistrate judge. This bill PASSED by a vote of 91-65
• SB 176 requires certain employers to make contributions to the employer retirement system for employees that return to work after their retirement. This bill also prevents employees from earning creditable service for this employment and stops retirement payments while they are employed. This bill PASSED by a vote of 150-9.
• SB 362 changes the fees associated with the impounding of wild animals. This bill PASSED by a vote of 162-0.

Senate

After a late start due to Lt. Governor Geoff Duncan’s press conference revealing the Senate’s pass at hate crimes legislation the Senate quickly moved on to its limited business. Four pieces of legislation were voted on including:

• HB 808 increases the time period in which an auto dealer can loan a vehicle to a customer from 30 days to 45 days. This bill PASSED by a vote of 54-0.
• HB 820 creates the Georgia Freight Railroad Program. This bill PASSED by a vote of 54-0.
• HB 888 addresses surprise medical billing in situations where insured patients incur out-of-network bills from providers at in-network facilities. Senate sponsor Chuck Hufstetler (R-Rome) explained the importance of this legislation which he said would protect Georgians from unexpectedly high medical bills. Senator Zahra Karinshak (D-Duluth) also spoke in favor of the bill. This bill PASSED by a vote of 53-0.
• HB 969 makes changes to code related to fair housing provisions. This bill PASSED by a vote of 52-0.

Committee Reports

House Education Committee
The House Education Committee, chaired by Representative Rick Jasperse (R-Jasper), met to consider several measures today:

• SB 367, authored by Senator P.K. Martin IV (R-Lawrenceville), reduces testing required in Georgia law for K-12 students to near the federal minimum, eliminating 5 of 7 state-mandated tests not required by federal law.  The bill also provides testing flexibility for local districts, allowing scheduling of the high school writing exam when a district sees fit and local control in determining whether exam scores are factored into final grades. The bill does establish a testing window for elementary and middle schools, limiting such exams to the final 25 days of school. Representative Tommy Benton (R-Jefferson) expressed concern about the bill giving too much flexibility to local districts to overtest students and remove consequences to testing that make students take them seriously, like not factoring scores into final grades. Chairman Jasperse indicated that he will be offering a substitute to the bill that may reinstate parts of the law proposed to be deleted by the bill, and the substitute will be provided in advance of a meeting on Friday. Buddy Costley of the Georgia Association of Education Leaders and Margaret Ciccarelli of the Professional Association of Georgia Educators spoke in favor of the bill. The Committee took no action on the bill today.
• SB 416, authored by Senator Jeff Mullis (R-Chickamauga), changes the name of the Office of College and Career Transitions to the Office of College and Career Academies within the Technical College System of Georgia. It also requires TCSG to collaborate with the Workforce Development Board, Department of Economic Development, and local economic development partners. Chairman Jasperse asked whether this collaboration is already happening, to which the author said that it was but had never been codified. The Committee recommended the bill DO PASS and be sent to the Rules Committee.
• SB 430, authored by Senator William Ligon (R-Brunswick), clarifies that home school students may enroll in courses at a College and Career Academy if space allows. School districts will earn QBE funding for courses taken by such students.
• SB 431, authored by Senator John Wilkinson (R-Toccoa), defines the term “on-time graduation rate” to allow schools to have a more accurate headcount for purposes of determining graduation rate. The Committee recommended the bill DO PASS and be sent to the Rules Committee.

Chairman Jasperse noted that the Committee will meet on Friday, and it may meet on Monday.

Senate Education and Youth Committee
The Senate Education and Youth Committee, chaired by Senator P.K. Martin (R-Lawrenceville), met today to consider multiple measures.

• HB 957, authored by Representative Jan Jones (R-Milton), makes changes to a few charter school provisions in Code including allowing for certain charter school employees to be included in the health insurance fund for public school teachers. Representative Jones walked members through the bill and explained that the first part of this bill codified current practice. The bill also alters the lottery system by adding back the original method for charter schools to draw enrollment. The committee recommended the bill DO PASS.
• HB 1026, authored by Representative Robert Dickey (R-Musella), revise the number of REACH scholarships that can be designated by participating school systems. Representative Dickey explained the REACH program. Senator Elena Parent (D-Atlanta) asked why the number of scholarships was codified in the first place. Representative Dickey explained that the scholarships are determined from a formula based on county tiers, local and state matches, and private support and some counties are unable to reach the maximum allowed number of scholarships. Senator Parent expressed concerns that larger systems would lose a number of scholarships as a result of the bill. Representative Dickey explained that his intent with the bill is to allow for more equity between large and small businesses. Senator Dolezal (R-Cumming) asked why the funds are not given equally across the state. He also asked if counties could increase the funding per student to offset decreased state spending to ensure no fewer students receive scholarships. Rep. Dickey said that each county will be limited to eight scholarships as the bill is currently written. This bill did not receive a vote.
• HB 755, authored by Representative Dave Belton (R-Buckhead), requires local boards of education to provide itemized charter school allotment sheets for the upcoming fiscal year by July 1. Rep. Belton explained that this is a bipartisan bill that was brought to him from the charter schools. This bill did not receive a vote.

Senate Health and Human Services Committee
Chairman Ben Watson, MD (R-Savannah) and his Committee heard several bills this afternoon:

• HB 991, authored by Representative Matt Hatchett (R-Dublin), seeks to create a Healthcare Transparency and Accountability Committee  to review reports and records submitted to the Department of Community Health by its healthcare plan contractors in O.C.G.A. 31-2-17.  Jesse Weathington, the lobbyist for the Georgia Quality Health Care Association, noted that his members provide reports to the Department - 65 different reports (e.g. claims, network management, pharmacy, quality improvement, etc.).  Senator Larry Walker moved DO PASS on HB 991 and the Committee moved the bill forward to the Senate Rules Committee.
• HB 789, by Representative Mark Newton, MD (R-Evans), seeks to address surprise bills by providing more transparency.  Dr. Newton described the costs of insurance - $440 monthly on average for an individual; $1168 for a family.  These costs are before individuals actually access care - and pay for copays, coinsurance, etc.  More than 60 percent of families in Georgia are covered by ERISA plans which cannot be regulated by Georgia.  HB 789 creates a surprise rating system (using checks and x’s) so that individuals can determine if the physician specialties are contracted by a facility and in-network as those specialties are the roots of most surprise billings. It requires an insurer to delineate the surprise bill rating.  Senator Greg Dolezal (R-Cumming)  asked where this idea derived; if other states were doing this.  Representative Newton said no.  Senator Nan Orrock (D-Atlanta) asked if the groups’ , sending out these surprise bills, business model to do so as they are not in the insurance plans and they can send out the big bill to folks.  It is a negotiation according to Representative Newton.  A substitute was before the Committee; it addresses the Shepherd Center clarification and provides that it becomes effective November 1, 2020. A motion was made DO PASS; that motion carried.
• HB 1114, by Representative Sharon Cooper (R-Marietta), the enabling legislation, to to provide for Medicaid mothers’ lactation services and to extend the period of post-partum care for Medicaid women in O.C.G.A. 49-4-159  Georgia is number 50 in terms of maternal mortality; Representative Cooper indicated that this was not right.  Motion DO PASS was made; that motion carried, moving the bill to the Senate Rules Committee. There were a number of groups testifying in support of this bill.  Cardiovascular, mental health, and other pregnancy complications occur.
• HB 791, by Representative Ron Stephens, was also before the Committee.  It is about maintenance prescriptions.and authorizes a pharmacist to dispense up to a 90 day supply of a  maintenance medication under certain conditions in O.C.G.A. 26-4-80.  This bill was merged with a bill from Senator Kay Kirkpatrick, MD (R-Marietta) in a new Substitute.  This waives a requirement in pharmacy law so as to address emergencies.  The legislation received a DO PASS recommendation and now moves to the Senate Rules Committee.

Rules Calendars for Legislative Day 33

The Senate is expected to consider the following measures on Thursday for Legislative Day 33:

• HB 823 - Crimes and offenses; lifetime disqualification from operating a commercial motor vehicle by persons convicted of trafficking other persons for labor or sexual servitude; provide (Substitute) (PUB SAF56th) Gaines-117th
• HB 983 - Sexual Offender Registration Review Board; information required to be provided by sexual offenders when they register; revise (Substitute) (JUDY-25th) Williams-145th
• HR 326 - Roger C. Dill Transportation Center; Tift County; dedicate (SI&P-7th) Houston-170th

The House has not yet set a calendar for Legislative Day 33.