GIA Legislative Session Wrap-UP
By Mark Middleton, GIA Lobbyist April 10, 2006
General Assembly Concludes Session
The 2006 General Assembly ended at just before midnight on Thursday March 30. After much debate over budget language, public clashes between House and Senate leaders, and negotiation among the budget conference committee members that included 300 local projects worth $6.5 million, the House and Senate passed the FY ’07 $18.6 billion budget. In addition to the budget, attention the final legislative days focused on the usual passage of bills, House and Senate members amending and substituting bills, then the accompanying agreements and disagreements to those changes, conference committee work, and farewell speeches from many legislators who will not seek reelection to the House or Senate this fall.
As expected in this election year, popular political issues such as eminent domain, illegal immigration, sexual predator laws, and abortion dominated the session. The rest of the 2006 session was characterized by defense against bad bills. A number of bills relating to healthcare, guns, and employment issues were defeated (see tracking document). In particular HB 998, which would have prevented businesses from limiting employees from bringing guns unto their property was defeated.
For GIA, the focus of the 2006 session was energy tax relief. While HB 209 did not pass, we made considerable substantive progress on the issue. Also, it is important to note that most tax reforms (including senior citizen relief, inventory tax elimination, property tax exemptions, income tax elimination) did not pass either. Tax reform is shaping up to be the issue of 2007 and we want to make sure we are at the forefront of the argument as these competing tax ideas are debated.
TRACKING DOCUMENT- Final 2006 General Assembly
Advocacy For Industry
Employment
HB 1240: This bill by Rep. Mike Coan amends the worker compensation code to increase the certain death benefits to a surviving spouse to $150,000; require notive within 60 days to an employee returning with restrictions, and requiring employees to submit travel expenses within one year. The bill passed both chambers and awaits the governor’s consideration.
HB 1326: Another Mike Coan bill, which makes adjustments to the unemployment fund reserve ratio. The bill allows for adjustment to the employer contribution rates based upon the condition of the overall fund.
SB 529: This is the immigration bill by Senator Chip Rogers. There was considerable negotiation in attempting to balance the various interests of the parties, including employers. In the end, a provision that limits tax deductibility for employers paying wages to undocumented workers. The bill would also prohibit public benefits for illegals and disallow public contractors from using illegal workers. The bill passed the House and Senate.
Taxes
HR 1128: This resolution created a House study committee on business incentives. We are hopeful that Rep. Jeff Lewis will be appointed to this committee. He is the legislator that championed the energy sales tax initiative this year.
HR 1464: This would create a House study committee on tax reform issues. This will be an important committee in the development of tax reform initiatives for next year.
Education and Work Force Development
SB 390: The “Classrooms First For Georgia Act” requires that every school system spend at least 65% of its budget on direct classroom expenses beginning in FY 2008. This Perdue Administration bill, which has passed the House and Senate, and signed by the Governor.
HB 1358: This is the ‘Truth in Class Size’ bill, sponsored by Governor Perdue that reduces class sizes in the lower grades.
Energy
HB 1325: This bill would allow AGL to build a pipeline from the Georgia coast to Atlanta that would provide an additional source for natural gas. Currently, AGL has facilities on the coast but the gas is distributed to states other than Georgia. The bill would allow for a rider to be added to consumer bills rather than having the cost included in a rate decision by the PSC. The bill has passed the House, but did not receive Senate approval
Environment
SB 191: This bill by Senator Russ Tolleson would permit the EPD to use qualified contractors to expedite the permitting process. The bill passed both chambers, and is expected to be signed into law.
SB 550: This bill, filed on February 15, would create a mercury switch recovery program, which would place the burden of the program upon the vehicle manufacturers. A version of the bill more favorable to manufacturing passed the Senate on Monday March 13. GIA won a close vote (25-24) on the key floor amendment to the bill. The bill did not receive action in the House and will not become law.
Insurance and Health Care
HB 1359: This bill would create the Georgia Assignment Pool Underwriting Authority, which provides an option for uninsurable individuals to obtain individual health coverage. The controversy is over the mechanism, which would be a fee added on to current health plans, including self-insured. The bill passed the House, but was stopped in the Senate. GIA opposed the bill.
Tort Reform
HB 239: This bill clarifies the language of the offer of settlement language that was passed last year. The original language, which was ruled to be unconstitutional by a local trial judge, was interpreted to mean that a party had to get a judgment greater than 125% of an offer received. The intent clarified in the bill is that the judgment must be at least 75% of the offer or the plaintiff is responsible for attorney’s fees. The bill passed both chambers.
