Mid-Session Brief

Schedule
  Having received some of the federal stimulus funds, the General Assembly is expected to return to a normal schedule and adjourn late March or early April. The Legislature reconvenes Tuesday for Day 25.

Budget
  Georgia is experiencing nearly a $3 billion shortfall, which is difficult to manage considering the State Constitution requires a balanced budget. The House has approved an $18.9 billion mid-year budget in HB 119.
  Although Georgia is eligible for $6 billion in stimulus funds, thus far the Governor and leadership in the General Assembly have decided to accept limited funding, including Medicaid (approximately $500 million), education ($2.2 billion) and transportation funding. These leaders are concerned about accepting money tied to programs that will be preconditioned, continued year after year, and require increases in unemployment taxes.

Transportation
  Business leaders have faulted the General Assembly for not advancing a transportation funding bill over the last two years. Two different proposals have been floated – a statewide sales tax increase (House version), which would be a direct tax question on the ballot in 2010, or a regional bill (Senate version) that would allow the 10 county Atlanta region or other grouped counties to ask voters to raise the sales tax only in that area to fund a list of transportation improvements. The Senate has passed its version – SB 39 and SR 44. The House bills (HB 277 and HR 206) have not passed that Chamber yet. Before pushing for more funding, the focus of the Governor has been to reorganize the transportation agencies to improve the way transportation projects are planned, constructed and maintained. SB 200, backed by the Governor, Lieutenant Governor, and Speaker would merge the current powers of the State Road and Tollway Authority and the Georgia Regional Transportation Authority into a new State Transportation Authority with its members being appointed by the three leaders. The bill passed the Senate Transportation Committee last Thursday.

Taxes
  Various pieces of legislation have been introduced by House and Senate leaders that would cap property tax assessments on residential and commercial property to 3% per year. These are Constitutional Amendments requiring a two-thirds supermajority in order to pass. Thus far Republicans have not been able to find the leverage needed to gain the support of some Democrats needed for passage. The Senate has passed, however, HB 233, which freezes assessment increases for the next two years. Proponents say the measure is necessary to keep the lid on tax increases in this weak economy and to better reflect the recent drop in home values. Others question the Constitutionality of the bill and its immediate effect on local government.

Energy
  The Georgia Nuclear Energy Financing Act, SB 31, which would allow Georgia Power Company to begin charging customers for finance costs incurred in the construction of new nuclear reactors, has passed the House and Senate and now goes to the Governor.
  In an answer to the above bill, some Democrats in the Senate have offered SB 147, which would mandate a renewable portfolio standard in Georgia. Each electric service provider would be mandated to establish a renewable and recoverable portfolio standard that would begin at 5% and climb to 20% by year 2030 (included in the definition of “biomass” is wood, not just wood waste or residue). The bill is not likely to move. With low cost power rates compared to the rest of the country, Georgia has resisted mandates. Georgia Power, however, does have various green energy purchase programs and is in the process of converting a 155 megawatt coal plant to biomass. Oglethorpe Power recently announced three 100 megawatt biomass generating facilities in Georgia.

Trauma Care
  Georgia needs several new level one trauma centers across the state. Governor Perdue has suggested raising $50 million plus of the $100 million plus needed annually through a “Super- Speeder” ticket charge. Others are promoting an increase in car tags to pay for enhancing trauma services.

Education
  Generally speaking, Governor Perdue’s focus has been greater student achievement, improved SAT scores, lower dropout rates, and consistent improvement in the basic skills of reading, writing, and math. Bills this year would address school board governance (to give him powers to correct dysfunctional school boards), offer pay for performance measures for principals and teachers, and incentives that would grow the state’s math and science teachers.
  Meanwhile, Senator Eric Johnson’s voucher bill, has passed the Senate Education and Youth Committee and will soon be voted on in the Senate. His education voucher bill would allow parents to use approximately $5,000 in existing education dollars already appropriated per pupil to offset tuition for an alternative education.

Water
  Legislation is working its way through the House, HB 406, which would exempt water reservoir construction from local service delivery strategies, which would facilitate construction of much needed reservoirs by avoiding infighting among municipalities. The bill goes to the House floor Tuesday.

Sunday Sales of Alcohol
  Georgia is one of some 15 states that bar retail package stores from selling alcohol on Sundays. After several intense years of debate, the General Assembly is likely to hear the measure and possibly send the measure to Governor Perdue. Senate bill 16 was scheduled to be heard by the Senate Regulated Industries Committee Thursday but many members were absent and consideration was postponed. The Governor has indicated he will veto the measure if it were to pass.

Food Safety
  In response to the salmonella problem at one of Georgia’s peanut processing plants, the General Assembly is passing more stringent lab testing and providing more funding for food inspectors.

Legal Reform
  Governor Perdue is pushing bills that would provide liability protection for landowners who make their property available for agri-tourism and hunting, liability protection for pharmaceutical manufacturers and medical device manufacturers (to boost the bio-tech industry), a measure that discourages frivolous suits, and a measure that would end the gag rule on whether an automobile passenger was wearing a seatbelt at the time of an accident.

Economic Development
  In late February Governor Perdue announced legislation, HB 438 and HB 439, to encourage economic development in Georgia. The bill would grow jobs and investment through tax credits for creating quality jobs, R & D, business in the ports, and retention of jobs. In addition, the package offers discretionary withholding options and a mega tax credit intended for large, high-impact economic development projects that create a minimum of 1,800 jobs. The Cobb Chamber has long advocated such enhancements to the Georgia Business Expansion Support Act.

Employee Free Choice Act (Excerpt courtesy of Georgia Chamber).
  A number of measures have been proposed to protect an employee's right to secret ballot when voting on unionization, which would be abolished by the federal Employee Free Choice Act. Bills include HR22 and HR23 (Representative John Lunsford, McDonough), HR71 (Representative Larry O'Neal, Bonaire), SR49 (Senator Preston Smith, Rome), and SR109 (Senator Eric Johnson, Savannah). The Georgia Chamber of Commerce opposes EFCA and supports an employee's right to vote by secret ballot.

Track business legislation by category through the GA Chamber: http://www.gachamber.com/Track-Business-Legislation.65.0.html