It felt as if Crossover Day came early under the Gold Dome as legislators rushed to vote on a number of weighty issues today, some of which were the products of months of discussion while others appeared in only the last few days. It was all about the money in the House, which signed off on its version of the FY 21 Budget, which restores many of the reductions proposed by Governor Kemp while reducing the proposed teacher raises from $2,000 to $1,000. Afterward, the House moved to adopt the comprehensive tax reform measure unveiled by Speaker David Ralston (R-Blue Ridge) yesterday that purports to lower the income tax for individuals to 5.375%. Meanwhile, the Senate focused on polarizing policy issues, approving an expansion of the State’s Special Needs Scholarship Program while tabling discussion on broad tort reform by a 27-26 vote. The work continues in the Senate at our deadline.

Despite today’s action, rest assured that there is plenty left to fight about heading into Crossover Day on Thursday. Most notably, each chamber has adopted different versions of an adjournment resolution that must be reconciled. Updates on today’s happenings and a look ahead to Legislative Day 28 in today’s #GoldDomeReport.

In today’s Report:

• Notable Floor Action
• Committee Report
• Rules Calendars for Legislative Day 28 (Crossover Day)

Notable Floor Action

The House acted on the following legislation of note today:

• HB 791, authored by Rep. Ron Stephens (R-Savannah), amends Title 26 to authorize a pharmacist to dispense up to a 90 day supply of a maintenance medication under certain conditions. The House approved the measure by a 164-0 vote, and it proceeds to the Senate for further consideration.
• HB 793, authored by Rep. David Ralston (R-Blue Ridge), is the FY21 Budget proposal. After a robust description of the spending plan by House Appropriations Chairman Terry England (R-Auburn), the House tabled consideration of the bill and subsequently removed the bill from the table after lunch. Ultimately, the bill passed by a 134-35 vote.
• HB 879, authored by Rep. Brett Harrell (R-Snellville), amends Title 3 relating to the regulation of alcoholic beverages. Among other things, the bill would allow for home delivery of alcoholic beverages. The House approved the measure by a 110-54 vote, and it proceeds to the Senate for further consideration.
• HB 913, authored by Rep. Bert Reeves (R-Marietta), amends Title 19 to “strengthen, clarify, and update provisions relating to the protection of children, including foster children and adopted children.” The House approved the measure by a 153-7 vote, and it proceeds to the Senate for further consideration.
• HB 949, authored by Rep. John Carson (R-Marietta), amends Title 48 relating to revenue and taxation. This bill is the comprehensive tax reform proposed by Speaker Ralston earlier this week. In addition to lowering the income tax rate for individuals, the bill raises the tax credit for adoption of a foster child from $2,000 to $6,000 per year for five taxable years before returning to $2,000 per year until the child turns 18. The House approved the measure by a 100-68 vote, and it proceeds to the Senate for further consideration.
• HB 952, authored by Rep. Sharon Cooper (R-Marietta), amends Title 26 to prohibit corporations that own and operate multiple pharmacies from implementing policies and procedures that restrict the quantity of controlled substances dispensed or restrict the prescriber. The House approved the measure by a 100-68 vote, and it proceeds to the Senate for further consideration. The bill was postponed until the next legislative day.
• HB 1094, authored by Rep. Houston Gaines (R-Athens), amends Titles 20 and 45 to provide that all state employees and public school teachers be provided three weeks of paid parental leave. The bill was amended in the Rules Committee this morning to expressly provide that public school educators are to be included in this mandate. The House approved the measure by a 161-1 vote, and it proceeds to the Senate for further consideration.
• HB 1114, authored by Rep. Sharon Cooper (R-Marietta), amends Title 49 to provide that Medicaid cover lactation care and services and postpartum care for women for a period of six months from birth. The House approved the measure by a 162-1 vote, and it proceeds to the Senate for further consideration.

The Senate’s action continued past our publishing deadline; but at press time, the body had acted on the following legislation of note.

• SB 386, authored by Sen. Renee Unterman (R-Buford), revises provisions related to the state’s Special Needs Scholarship program. This bill passed by a vote of 33-22.
• SB 415, authored by Sen. Steve Gooch (R-Dahlonega), provides for comprehensive tort reform in Georgia. This bill was tabled.
• SB 337, authored by Sen. Bruce Thompson (R-White), criminalizes the transmission or posting of any falsely created nude or sexually explicit videos or photographs. This bill passed by a vote of 51-0.
• SB 482, authored by Sen. Dean Burke (R-Bainbridge), establishes the Georgia All-Payer Claims Database. This bill passed by a vote of 53-0.
• SB 483, authored by Sen. Tyler Harper (R-Ocilla), designates the muscadine grape as the official state grape. This bill passed by a vote of 50-2.
• SR 194, authored by the late Sen. Greg Kirk (R-Americus), creates the Joint Study Committee on Transferring Oversight of Developmental Disabilities to the Department of Community Health. This resolution was adopted by a vote of 51-0.

Committee Report

House Ways and Means Committee

Late Monday afternoon, the House Ways and Means Committee filled in the missing link on the Speaker’s plans to propose an individual income tax cut and make other reforms to the state income tax code. The Committee sent to the House Rules committee several bills, but consolidated the income tax proposals into HB 949 (Rep. John Carson, R-Marietta). The key element is a reduction in the state personal income tax rate into a single flat rate of 5.375%, combined with non-refundable income tax credits for citizens in income tax brackets who are currently taxed at rates less than the 5.75%. The goal is to achieve the lower rate without causing lower income citizens to be subjected to higher income tax amounts than they currently pay. The tax reform package also included the changes from HB 1002 (Rep. Brett Harrell, R- Snellville) passed out of the Income Tax Subcommittee last week that change the adjusted federal income amount used for the Georgia income tax calculation for filers who use Schedule A under the Internal Revenue Code to claim federal tax deductions for state income taxes paid. It further added the Governor’s proposed income tax credit for foster parents that is contained in HB 934 (Rep. Bert Reeves, R-Marietta). The annual federal income tax update is also contained in HB 949. It thus becomes a significant revision to the state income tax code. Members asked questions about the cost to the treasury of the combined bill and Chairman Harrell reported that the total cost of the bill is approximately $250-$275 million annually. The reduction in the income tax rate has a higher cost, but the changes in the calculation of state taxable income from HB 1002 increase receipts up to $220 million and the new tax credit for lower income tax payers also offsets the lost revenue from the lower rate. The proposed changes go into effect for calendar tax year 2021. HB 934 passed out of full committee along party lines, with 3 Democrat no votes.

In other action, the Sales and Use Tax Committee also consolidated the extension of several sunset provisions to 2025 into HB 1035 (Rep. Chuck Martin, R-Alpharetta) for various charitable exemptions such as purchases of food by food banks, supplies by volunteer health clinics, health centers and disaster relief agencies, and written materials by religious organizations. The full committee also passed out HB 935 (Rep. Terry Rogers, R-Clarkesville) updating industry codes for computer equipment the replacement of which is exempt from sales tax in certain instances and HB 1037 (Rep. Matt Dollar, R-Marietta ) updating audit procedures for film industry production tax credits. These bills all passed unanimously and proceed to the House Rules Committee.

The Ad Valorem Tax subcommittee also conducted a hearing on HB 1038 (Rep. David Dreyer, D- Atlanta) establishing changes in presentations by commercial taxpayers of their fair market value to the county Board of Appraises and seeking to generate assessments closer to actual value of commercial properties. The goal is to apportion property tax assessments more evenly between residential and commercial property owners. The hearing generated a host of questions and support, with some reservation expressed by the Georgia Association of Apartment Owners. No vote was taken. This subcommittee did pass HB 335 (Rep. Al Williams, R- Midway) to exempt from ad valorem tax school buses purchased by non profit entities such as Head Start.

Rules Calendars for Legislative Day 28 (Crossover Day)

The House is expected to take up the following measures on Thursday for Legislative Day 28:

• HB 93 -- Water pollution and surface-water use; provide
• HB 720 -- Criminal procedure; clarify
• HB 761 -- Public utilities and public transportation; eliminate percentage limitation
• HB 833 -- Waters, ports, and watercraft; authorize
• HB 857 -- Conservation and natural resources; prohibit
• HB 901 -- Georgia Environmental Finance Authority; power to make loan commitments; provide
• HB 906 -- Heritage Trust Program; condition the method utilized for conveyance of heritage preserve property on the property's amount of acreage
• HB 929 -- Solid waste management; post-closure ground-water monitoring at closed coal combustion residual impoundments; provide
• HB 991 -- Healthcare Transparency and Accountability Act; enact
• HB 993 -- Health; vital records reports and data from the state registrar relating to child abuse reports; provide
• HB 1015 -- Georgia Carbon Sequestration Registry; inclusion of building products in construction on the registry; provide
• HB 1017 -- Public officers and employees; revise when dependents qualify for a payment of indemnification for death under the Georgia State Indemnification Fund
• HB 1026 -- Education; number of REACH scholars to be designated by participating school systems; revise
• HB 1039 -- Georgia Uniform Civil Forfeiture Procedure Act; disposition of certain forfeited assets; provide
• HB 1070 -- Condominiums; new insurance policy disclosure requirements; provide
• HB 1093 -- Agriculture; provide for an Agricultural Commodity Commission for Wine and Grapes

The Senate is expected to take up the following measures on Thursday for Legislative Day 28:

• SB 40 -- Sexual Assault By Persons with Supervisory or Disciplinary Authority; prohibit
• SB 101 -- 'Coach Safely Act'; enact
• SB 102 -- "Unlocking the Promise Community Schools Act"; enact
• SB 226 -- Safety Belts in Passenger Vehicles; all occupants; restrained by safety belts
• SB 272 -- Controlled Substances; sale to/by minors; dextromethorphan; prohibit
• SB 349 -- Local Boards of Education; feminine hygiene products in certain restrooms
• SB 375 -- Cigarettes and Tobacco Related Products; additional penalties; person under 21
• SB 379 -- Barbers and Cosmetologists; certain provisions; change
• SB 404 -- Development Impact Fees; education; provide
• SB 408 -- Sick Leave for Care of Immediate Family Members; sunset provision repeal
• SB 410 -- Ad Valorem Tax Appeals; alternative means of recovering costs of litigation
• SB 411 -- Electric Membership Corporations; comply with certain requirements
• SB 412 -- Property Insurance; meaning; revise
• SB 413 -- Conflicts of Interest in Zoning Actions; definition of term applicant; expand
• SB 416 -- Office of College and Career Transitions; Office of College and Career Academies
• SB 418 -- Georgia State Indemnification Fund; when indemnification shall be paid
• SB 423 -- "Max Gruver Act"; expanded definition of hazing; provide; enact
• SB 426 -- Air Quality; reporting of any unpermitted release of ethylene oxide
• SB 428 -- "Fair Business Practices Act of 1975"; deceptive practice of musical performance
• SB 432 -- Life Insurance; annual notification of policy owners and requested beneficiaries
• SB 446 -- Cash Bonds; unclaimed cash bonds; provide
• SB 463 -- Primaries/Elections; provisions; recording electronic voting machines; remove
• SB 464 -- "Georgia Uniform Mediation Act"; uniform laws governing mediation; enact
• SB 475 -- City of Grayson; terms of the mayor and city council; revise
• SB 476 -- Animal Protection; pet dealers to microchip dogs and cats; provide
• SB 480 -- State Administrative Org; compensation; tax collections on a contingency
• SB 484 -- Health; Solemn Covenant of the States to Award Prizes for Curing Diseases; adopt
• SB 486 -- Educational Programs; administration of either the SAT; students in grade 11
• SB 489 -- Lighting Equipment of Motor Vehicles; amber strobe light; provisions; repeal
• SR 776 -- General Assembly; development impact fees for educational purposes; provide -CA
• SR 818 -- Right to Register and Vote; only citizens of the United States -CA
• SR 841 -- Legislative Act; petition the judiciary for declaratory
• SR 854 -- Article V of the United States Constitution; a convention of the states; apply
• SR 885 -- General Obligation Debt; make loans or grants; airports; authorize the state- CA