Gold Dome Report - June 2020 #7

Nelson Mullins Riley & Scarborough LLP

Although the House and Senate each had robust Rules and committee calendars for Legislative Day 36, all eyes were looking towards signals to a compromise on the FY 2021 State Budget. After its perfunctory initial public meeting this morning, the Conference Committee on HB 793, the State’s spending plan beginning July 1, retreated into the recesses of the Capitol to continue working out differences. It was announced at this meeting, by the Governor’s Director of the Office of Planning and Budget Kelly Farr, that a revised revenue estimate would be forthcoming for this budget. Indications over the weekend were that revenues might not be as dire as predicted, but as of our deadline, there was no news on revenues from the second floor.

The Senate continues its work as Monday comes to a close and this Report hits your inbox. Keep following #GoldDomeReport on Twitter for the rest of the day’s developments.

In this Report:

  • Budget Conferees Meet, Governor Revises Revenue Estimate
  • Notable Floor Action
  • Committee Reports
  • Rules Calendars for Legislative Day 37


Budget Conferees Meet, Await Revised Revenue Estimate
In a quiet State Capitol, conferees on the FY21 State Budget convened for their first public meeting this morning. With the Conference Committee meeting in the Capitol crow’s nest of Room 403 as is tradition, the waning days of session almost felt normal--except for the lingering fragrance of disinfectant replacing the typical smells of stale meals served to members and staff over the preceding thirty-something days. Conferees exchanged pleasantries, agreeing to work together to craft a compromise budget and expressing confidence in and appreciation for budget staffers (who had most certainly already been hard at work parsing the budget differences over the weekend). As the meeting closed, OPB Director Kelly Farr thanked members for their partnership with Governor Kemp and alluded to an updated revenue estimate that could come “in the next few hours.” Six hours later, we are still waiting for that news. 

Notable Floor Action

House

  • SB 313, authored by Sen. Dean Burke (R-Bainbridge) and carried by Rep. David Knight (R-Griffin) makes changes to the state’s regulation of PBMs. While speaking to the bill, Rep. Knight explained that he believes this bill is an important step to protect consumers in Georgia from untoward pharmacy practices. He urged his colleagues to support the bill which he called the strongest PBM legislation in the country. The bill passed by a vote of 161-0.
  • SB 439, authored by Sen. Matt Brass (R-Newnan) and carried by Rep. Marcus Wiedower (R-Watkinsville), requires notice of hearings to be given to foster parents and for their input to be taken into the court’s consideration. This bill passed by a vote of 162-0.
  • SB 504, authored by Sen. William Ligon (R-Brunswick) and carried by Rep. Don Hogan (R-St. Simon’s Island) provides for a non-binding referendum within Glynn County to abolish the Glynn County Police Department. This bill passed by a vote of 159-3.

The House postponed consideration of 11 proposals from its Rules Calendars until the next legislative day.

Senate

  • HB 244, by Representative Ron Stephens (R-Savannah), addresses electric membership corporations and is expanding broadband services in more rural areas of the state.  It creates the Georgia Broadband Opportunity Act in Title 46. There was a lot of debate on this broadband initiative with many Senators opposing the legislation.  HB 244 also proposes for electric membership corporations to be regulated by the Public Service Commission.  An amendment was offered but it was lost by a vote of 24-27.  The bill passed 31-22.  The bill was immediately transmitted to the House.
  • HB 487, by Representative Josh Bonner (R-Fayetteville), amends O.C.G.A. 38-3-93, relating to Disaster Volunteer Relief Act. It authorizes certain employees of State agencies to be granted leave from work with pay (no more than 15 days in any 12-month period) in order to participate in specialized disaster relief services. The bill passed 51-0.
  • HB 779, by Representative Shaw Blackmon (R-Bonaire), modifies the TAVT formula in O.C.G.A. 48-5C-1(c)(3)(C). The legislation was presented in the Senate by Senator Chuck Hufstetler (R-Rome). This change in the calculation of the ad valorem tax on vehicles was modified in agreement with GMA and ACCG in an effort to get more funding to the cities. The legislation was engrossed when it came to the Senate Floor. The legislation passed the Senate 50-0.
  • HB 789, by Representative Mark Newton, MD (R-Augusta), establishes transparency for health insurance plans with a surprise bill rating system in Chapter 20C of Title 33.  It creates a rating system so that a hospital which has physician specialty groups with contracts with that hospital.  The individual can determine the possibility of surprise bill rating.  This will apply to ERISA plans but they will not be “regulated.”  Senator Larry Walker (R-Perry) asked about the cost of the program; Senator Huftstetler, who presented the bill, said that they should already know this if the physicians and hospital are in network.  It does require that the plans post this information on their websites and changes made are to be posted within 30 days.  Senator Zahra Karinshak (D-Duluth) asked the differences in the earlier bill; the prior bill on surprise billing.  Senator Hufstetler indicated that the earlier legislation took the insured out of the middle.  Senator Renee Unterman (R-Buford) inquired about the real time changes to the directory to be kept; are individuals in network or the group - it is the group of physicians as a whole. This legislation passed 49-1.
  • HB 791, by Representative Ron Stephens (R-Savannah), permits pharmacists to dispense up to a 90-day supply of maintenance medications in emergency situations (disasters such as hurricanes).  Senator Kay Kirkpatrick, MD (R-Marietta) presented the Committee Substitute version of the bill on the Senate Floor and outlined there are three situations where these 90-day drug prescriptions for maintenance medications in O.C.G.A. 33-26-4-80(q) are not permitted: 1) for the initial prescription; 2) when a controlled substance is involved; or 3) when the physician says no.  The bill also requires that every health care insurer licensed in this state and that provides prescription medication coverage as part of a policy or contract is required to waive time restrictions on prescription medication refills, which includes the suspension of electronic 'refill too soon' limitations, to enable insureds or subscribers to refill prescriptions in advance and is required to authorize payment to pharmacies for a 30 day supply of any prescription medication, regardless of the date upon which the prescription had most recently been filled by a pharmacist, when the following conditions occur: 1) The person seeking the prescription medication refill resides in a county or other area of this state that: (A) Is declared to be under a state of emergency by executive order of the Governor;  or (B) Is under a hurricane warning issued by the National Weather Service; and  2) The prescription medication has refills remaining and a refill is requested within 30 days after the origination date of the conditions described in paragraph (1) of this  subsection or until such conditions are terminated by the issuing authority or no longer exist. HB 791 passed 48-0.
  • HB 799, by Representative Shaw Blackmon (R-Bonaire), seeks to clean up Georgia’s criminal justice reform laws. Senator Jesse Stone (R-Waynesboro) presented the legislation which repeals a prohibition regarding the eligibility of certain violators to receive early reinstatement of their driver's licenses and limited driving permits in O.C.G.A. 40-5-75 (relating to the suspension of license for being in control of a moving vehicle under the influence of a controlled substance or marijuana). This legislation passed the Senate 44-3.
  • HB 847, by Represented John Corbett (R-Lake Park), addresses hemp farming and cleans up the law passed in 2019 in Chapter 23 of Title 2.  It aligns Georgia’s law with the federal law.  It will permit colleges and universities to participate in research and allows private institutions to also participate in “on farm research.” It applies a process for testing which will be coordinated with the Department of Agriculture.  It also increases the permit fee for processors, moving the fee to $50,000 and those fees will be utilized to fund the Department of Agriculture’s program.  Senator Tyler Harper presented the legislation which he indicated that thus far there were 66 growers and 9 processors in the State. HB 847 passed with a vote of 34-13.
  • HB 946, by Representative David Knight (R-Griffin), mirrors SB 313 which passed earlier out of the Senate.  This is the extensive revisions relating to pharmacy benefit managers.  Senator Dean Burke, MD (R-Bainbridge) presented the Substitute. There were no questions on the bill and it passed swiftly by Committee Substitute by a vote of  49-0.  The House will need to agree to the changes made to the proposal. Senator Burke asked that the legislation be immediately transmitted to the House; his motion carried.

Committee News

House Special Committee on Access to Quality Health Care
The House Special Committee on Access to Quality Health Care, chaired by Representative Mark Newton (R-Augusta), met this afternoon to consider two bills:

  • SB 71, authored by Senator Ben Watson (R-Savannah), was presented as a substitute that strips the content of SB 71 as passed by the Senate and replaces the content with the content of HB 542, Representative Todd Jones’s (R-South Forsyth) proposition to allow for the purchase and sale charity care credits through an exchange for hospitals to meet their indigent and charity care requirements. The Georgia Hospital Association spoke in opposition to the bill. The Committee recommended the bill DO PASS by Committee Substitute and be sent to the Rules Committee.
  • SB 311, authored by Senator Kay Kirkpatrick (R-Marietta), was presented as a substitute to, according to Chairman Newton, provide clarification to the non-profit hospital transparency provisions adopted by the General Assembly last year. The bill adds 14 words to require these hospitals to annually report on their debt collection practices that involve judicial or legal processes (e.g. lawsuits, garnishments, etc.). The Georgia Hospital Association and Georgia Alliance of Community Hospitals spoke in opposition of the bill, the latter suggesting that the requirement be placed on for-profit hospitals and medical practices. The Committee recommended the bill DO PASS by Committee Substitute and be sent to the Rules Committee.

House Committee on Defense and Veterans Affairs
This morning, Chairman Heath Clark (R-Warner Robins) and his Committee moved forward:

  • HR 1166, by Representative Brian Prince (D-Augusta), seeks to urge that a state veterans cemetery be established in the Augusta area. Funds for these cemeteries are made available through the United States Department of Veterans Affairs. The Committee gave this Resolution a DO PASS recommendation and it now proceeds to the House Rules Committee.

House Governmental Affairs Committee
The House Governmental Affairs Committee, chaired by Representative Shaw Blackmon (R-Bonaire), met to consider two bills today:

  • SB 312, by Senator Lester Jackson (D-Savannah), was brought before the Committee in the form of a new Committee Substitute by Representative Miriam Paris (D-Macon).  This legislation, imposing language from HB 973, creates recognition for Juneteenth, celebrating on June 19th annually an end to slavery.  The Committee gave this bill a DO PASS recommendation, moving it now to the House Rules Committee.
  • SB 413, by Senator P.K. Martin, IV (R-Lawrenceville), addresses conflicts of interest in zoning actions and expands the definition of the term “applicant” in O.C.G.A. 36-67A-1(1) so that it will mean:  “any person who applies for a rezoning action, any person with a direct ownership interest in the real property that is subject to the rezoning action, and any attorney or other person representing or acting on behalf of a person who applies for a rezoning action or who has a direct ownership interest in the real property that is subject to the rezoning action." This legislation also received a DO PASS recommendation even though there was an attempt to amend the proposal.  The legislation moves onto the House Rules Committee.

Senate Public Safety Committee
The Senate Public Safety Committee, under leadership of Senator John Albers (R-Roswell), met in the morning and discussed the following:

  • HB 759, by Representative Butch Parrish (R-Swainsboro), presented the annual dangerous drug update legislation in Chapter 13 of Title 16 which changes provisions relating to Schedule IV controlled substances. This legislation updates the state laws with federal laws so that GDNA may enforce.  The legislation moved forward with a DO PASS recommendation, moving it onto the Senate Rules Committee.
  • HB 877, by Representative Don Hogan, allows golf carts converted to slow moving vehicles (up to 25 mph with a strobe light on the top) to get an inspection, licensed and obtain a tag. The vehicles can travel on streets – they must have a VIN to obtain a tag.  If passed, this legislation would take effect on January 1, 2021.  The legislation moved forward with a DO PASS recommendation, moving it onto the Senate Rules Committee.
  • HB 1020, by Representative Micah Gravley (R-Douglasville), addresses DUI charges – 30 days to go to administrative licensed suspension hearing for a limited driving permit (work, school or church) in Titles 17 and 40 – cases at adjudication can be thrown out, moved to a lesser charge, or an individual may be convicted  and required to do a risk-reduction program.  Driving privileges need to be limited – however, there is no accountability for this period, which is up to a year for these limited driving permits.  Thus, Representative Gravley sought to impose a  risk-reduction program be required at the front end rather than upon conviction (looks at family heritage, mental health, etc.)  Upon completion of the program (16 hours rather than 20 ), then if conviction, the individual would be credited the risk-reduction program.  The bill received bipartisan support in the House. Senator Randy Robertson (R-Cataula) asked about prior to adjudication the state’s ability to sentence someone before being found guilty.  If the state finds enough evidence, then that provides enough to make this requirement argued Representative Gravley.  Senator Jesse Stone (R-Waynesboro) offered an amendment to address an issue with HB 799. The Committee proposed to keep section 1 and eliminate Section 3-6 in HB 1020 and add language offered by Senator Stone – they would still be required to apply for a limited driving permit (like it is done now for drugs).  Senator Harper offered the amendment: section 3, 4, 5, 6 were eliminated from HB 1020 and added language from LC 39 0295 (HB 799 fix). The new Committee Substitute as amended received a DO PASS recommendation, moving it forward to the Senate Rules Committee.

House Public Safety Committee
The House Public Safety Committee, chaired by Rep. Bill Hitchens (R-Rincon), met today and considered a resolution authored by Rep. Matt Hatchett (R-Dublin). HR 1599 urges law enforcement agencies to implement psychological testing and improve training practices for peace officers.

Rep. Jesse Petrea (R-Savannah) stated that psychological testing is a broad term and wanted more information about the type of testing that would be conducted. Chairman Hitchens explained that he has never personally been tested but he understands there is an interview component and a written component.

Rep. Jodi Lott (R-Evans) proposed an amendment to add language urging the Peace Officers Standard and Training Council to implement mental health wellness reviews annually or upon the request of an officer. The amendment also adds “and mental health wellness reviews” after “psychological testing” in various places in the resolution. Lastly, the amendment adds language clarifying that this testing would be included as pre-employment testing. This amendment was adopted.

Rep. Scott Holcomb (D-Atlanta) explained that he believed pre-employment should be deleted from lines 1 and 16 that were included in the amendment adopted by the committee. Rep. Holcomb proposed this change as an amendment. This amendment was adopted.

The resolution received a motion DO PASS.

Rules Calendars for Legislative Day 37

The House is expected to consider the following measures on Tuesday for Legislative Day 37:

  • SB 28 - Insurance; imposing a copayment, coinsurance, or office visit charge in an amount greater than charges imposed for physician; prohibit (Ins-Mathiak-73rd) Jackson-2nd
  • SB 123 - Waste Management; the coal ash surcharge imposed by host local governments; eliminate (Substitute)(NR&E-Dickey-140th) Ligon, Jr.-3rd (Rules Committee Substitute LC 44 1518S)
  • SB 367 - Effectiveness of Educational Programs; number of student assessments; reduce; when assessments must be administered; provide (Substitute) (Ed-Jasperse-11th) Martin-9th
  • SB 410 - Ad Valorem Tax Appeals; alternative means of recovering costs of litigation and attorney's fees; provide (Substitute)(W&M-Kelley-16th) Kennedy-18th
  • SB 426 - Air Quality; reporting of any unpermitted release of ethylene oxide to the Environmental Protection Division of the Department of Natural Resources; provide (NR&E-Parsons-44th) Strickland-17th
  • SB 445 - Soil Erosion and Sedimentation; water and sewer authorities to be designated as local issuing authorities for land-disturbing activity permits; authorize (Substitute)(NR&E-Dickey-140th) Kennedy-18th
  • SB 473 - Conservation and Natural Resources; duties, powers, and responsibilities relative to historic preservation; from Department of Natural Resources to the Department of Community Affairs; transfer (NR&E-Parsons-44th) Harper-7th
  • SB 474 - Department of Natural Resources; construct, operate, maintain, and supply informational materials at welcome centers assigned to it by the Governor; provide (NR&E-Dickey-140th) Harper-7th
  • SB 477 - Investigation of Family Violence; terminology used in determining whom to arrest; revise (JuvJ-Rich-97th) Kirkpatrick-32nd
  • SB 509 - Glynn County Police Department; abolish; transfer of assets and property of such police department; provide (GAff-Hogan-179th) Ligon, Jr.-3rd
  • SR 19 - Georgia Commission on Freight and Logistics; create (Substitute) (Rules-Burns-159th) Beach-21st (Rules Committee Substitute LC 28 9836S)

The Senate has not yet set its Rules Calendar for Legislative Day 37.

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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