The early morning began with Subcommittees of the House Appropriations Committee looking in earnest at the development of a spending plan for the state’s FY 2022. This work follows the news from earlier in the week of the boost in state revenues that will be largely used in the current year’s budget. Meanwhile later in the morning, before lunch, the House took action on the FY 2021 Amended budget, HB 80, where it adopted an amendment and then sent the final product to the Governor for his review. More on the budget is in our Report below.

Lawmakers have adjourned until February 16, 2021 for a long weekend and in celebration of President’s Day.

In today’s Report:

• Committee Reports
• New Legislation
• Rules Calendars for Legislative Day 17

Committee Reports

House Education Committee
The House Education Committee, chaired by Representative Matt Dubnik (R-Gainesville), met this morning to consider two bills and hear a presentation from State School Superintendent Richard Woods.

• HB 32, authored by Representative Dave Belton (R-Buckhead), amends O.C.G.A. 20-2-251 to require the State Board of Education to create a teacher recruitment and retention program by providing a refundable tax credit of $3,000 per qualifying teacher per year, for up to five school years. The department must pick no more than 100 schools from the list of qualifying schools to become a part of the program. The Office of Student Achievement is required to create program objectives and annually measure and evaluate the program. The program is limited to 1,000 teachers statewide. No new applications to the program can be accepted after December 31, 2031. Representative Belton presented the bill to the committee and fielded questions.

Representative Tommy Benton (R-Jefferson) explained that he thinks the legislature is constantly trying to solve this problem and would prefer efforts focused on directly paying back student debt.

Representative Doreen Carter (D-Lithonia) expressed her desire to see language added that would allow teachers outside the initial list of eligibility to fill slots if the 1,000 slots are not filled.

Representative Becky Evans (D-Atlanta) stated that she was concerned teachers that did not receive the extra funds would harbor resentment towards teachers at the same school that were eligible for the program. Representative Belton answered that this is a pilot program and some aid is better than no aid at all.

The committee recommended the bill DO PASS.

• HB 287, authored by Representative Bonnie Rich (R-Sugar Hill) amends Title 20 to include tobacco and vapor products in the course of instruction regarding alcohol and drugs required each year for all students in grades kindergarten through 12. Rep. Rich presented the bill to the committee and noted the bill’s timeliness due to the increased risk of severe COVID infection for children that use vapes.

Representative Chris Erwin (R-Erwin) stated he was glad to see the curriculum being updated.

The committee recommended the bill DO PASS.

State School Superintendent Richard Woods presented to the committee about the Department of Education’s efforts to address learning loss. The department has focused on providing students with internet access and has attempted to move away from summative assessments towards more formative assessments, specifically the DRC BEACON which was provided to districts at no additional cost. The department has also worked to train teachers on virtual learning strategies along with providing resources with GPB. The department is also looking to use possible CARES Act III grants for learning loss to target extended day and summer programs.

Representative Matthew Wilson (D-Brookhaven) asked about the extent of wifi range extenders in schools. Superintendent Woods explained that the extenders allow students on school grounds to access the internet but do not extend for miles. He also added that the isolated rural students are the hardest to reach.

Representative Chris Erwin (R-Homer) asked how often the department is checking with districts about bandwidth needs. Deputy Superintendent Tiffany Taylor explained that the department’s CIO meets with districts monthly to discuss these issues.

House Appropriations Committee - Education Subcommittee
The Education Subcommittee of the House Appropriations Committee, chaired by Representative Todd Jones (R-South Forsyth), met this morning to hear agency testimony on the FY22 State Budget.

Testimony was opened by Buster Evans, Executive Director of the Teachers Retirement System, who provided a brief overview of TRS. He explained that the defined benefit plan is used for recruitment and retention of teachers (K-12 and those in colleges and universities) In addition to general statistics about TRS, Dr. Evans highlighted that TRS has more active contributing members than active beneficiaries and the current average benefit for TRS beneficiaries is $3,300. He also recapped performance in 2020, which was positive despite market volatility. As of today, TRS has over $97 billion in assets and has experienced a 21% return so far for the current fiscal year. Evans also noted that $5.2 billion is paid out annually to retirees. Evans did mention the unfunded liability of $23 billion which is expected to be paid off in 2042 which will then allow the employer share to be reduced to around 10 percent. Looking at the FY22 Budget, Dr. Evans explained that the employer contribution rate would need to increase from 19.06% to 19.81%, which is actuarially driven because employee contributions must be kept between 5-6% by statute. While Dr. Evans noted this is an increase, it is still lower than the employer contribution of the prior year. Evans also highlighted a number of “trends” which the TRS had seen over the year: 1) dip in assets in March but a strong finish for the fiscal year; 2) retirement rates are fewer than in prior fiscal years (noting that it could be in part due to the $3,000 pay raise and that education profession was seen as ‘secure’); 3) an increase in the number of retirements since August 2020; 4) increase in monthly death rates since March 2020 of retirees; and 5) fewer retirees wishing to return to the classroom (problematic for districts wishing to get substitute teachers).

Representative Wes Cantrell (R-Woodstock) asked about trends with new teachers, to which Dr. Evans stated that TRS is seeing fewer teachers with ten years or less experience leaving the profession and requesting refunds. Representative Mike Glanton (D-Jonesboro) asked if substitute teachers must have four-year degrees, to which Dr. Evans said no. Chairman Jones asked about the implementation of the alternative investment permission given to TRS by the General Assembly last year, to which Dr. Evans explained that TRS was easing into it, aiming to increase investments by 1% each year until it reaches the 5% statutory cap.

Commissioner Amy Jacobs of the Department of Early Care and Learning reviewed the changes proposed for the FY22 Budget. There are only two changes proposed for DECAL: an increase to reflect the required increase in its employer contribution to TRS and an increase in formula funds for training and experience for Pre-K teachers. The overall increase requested is just over $2 million. Commissioner Jacobs noted that enrollment in Pre-K is down this year, but DECAL is offering three options for students—in-person, hybrid, and 100% distance. Child care centers are open and operating, but enrollment is also down approximately 25%, as of December 2020. Chairman Jones asked how DECAL publicizes the six-week summer transition program, to which Commissioner Jacobs said it is open to every Pre-K classroom in the state, and there was recently a webinar to which these classrooms were invited. Chairman Jones also asked about data around the developing learning gap, to which Commissioner Jacobs explained that DECAL does not collect that type of data at this level but the Department is focused on expanding access.

The Department of Education closed agency testimony, with CFO Rusk Roam discussing the proposals for the Department’s FY22 Budget. The proposal has partial austerity restorations in many of its programs, including QBE, Agricultural Education ($506K), GNETS ($3.7M), Non-QBE Formula Grants ($420K for feminine hygiene grants), Preschool Disabilities Services ($2.5M), RESAs ($890K), and Technology/Career Education ($674K). There is also a substantial increase in QBE Equalization ($71.9 million) driven by increasing tax digests. Mr. Roam also highlighted that while a restoration of $567 million is proposed for the QBE Formula, it is offset by a $166 million reduction based on enrollment decline during the pandemic. He explained that this reduction could decrease in the Amended FY22 if students who withdrew during the pandemic re-enroll in the fall.

Representative Randy Nix (R-LaGrange) asked about residential treatment facilities (“RTF”) and whether there has really been a dramatic decrease in placements/enrollment driving the proposed reduction, to which Matt Cardoza of the Department said yes, the formula for funding RTFs is enrollment-driven. Representative Nix also asked about attendance counts and federal funds going toward RTFs. Chairman Jones followed up by asking about how much federal CARES funding would be going to RTFs, to which Mr. Cardoza said “a little over $350K”. Representative Cantrell asked if any federal CARES dollars would be used to reduce austerity in the QBE Formula, to which Mr. Roam stated that the federal dollars have not been allocated for “stabilization” of QBE but rather distributed to districts based on Title I allocations.

Chairman Jones delayed the expected presentation on virtual learning until next week, when another subcommittee meeting is expected to provide for public comment on the FY22 Budget.

House Ways and Means Committee
Chairman Shaw Blackmon (R-Bonaire) and the Ways and Means Committee took action on two proposals this morning:

• HB 282, authored by Representative Steven Meeks (R-Screven), seeks a change in O.C.G.A. 48-5-600 ad valorem taxes for what is considered to be a “contiguous” tract of timber. The legislation received a DO PASS recommendation, moving to the House Rules Committee.
• HB 122, authored by Representative John Corbett (R-Lake Park) seeks to amend O.C.G.A. 48-3-32 regarding the sunset for a manufacturer’s sales use tax exemption which is in place for concrete mixers. Representative Corbett explained that a fiscal note indicated a cost of $4 million but sales taxes generated were $92 million (in addition other taxes are paid by these manufacturers). The Committee gave this legislation a DO PASS recommendation, moving it to the House Rules Committee.
• HB 114, was held at the request of the author, Representative Bert Reeves (R-Marietta). The bill seeks to provide an income tax credit for individuals adopting foster care children with a credit of $6,000 for the first five years and $2,000 for each year thereafter.

House Regulated Industries Committee - Regulatory Industries Subcommittee
Chairman Ginny Ehrhart (R-Marietta) and her Subcommittee of House Regulated Industries met with a hefty agenda of bills to consider:

• HB 34, authored by Representative Dave Belton (R-Buckhead), seeks to create the Speech-Language Pathology and Audiology Interstate Compact in Title 43. A version of this legislation was introduced and passed in 2020 but was caught in a veto by Governor Kemp, indicating the issue should have been reviewed by the Georgia Occupational Regulatory Review Council. HB 34 received a DO PASS recommendation from the Subcommittee, moving now to the full Committee.
• HB 79, authored by Representative Erick Allen (D-Smyrna), seeks to amend Titles 25 and 36, relating to regulation of fireworks so as to vest regulation of the dates and times for the lawful use or ignition of consumer fireworks exclusively with counties and municipal corporations. This legislation was held.
• HB 119, authored by Representative Karen Mathiak (R-Griffin), seeks to add in O.C.G.A. 14-7-4 that chiropractors may own professional corporations with physicians. The bill received a DO PASS recommendation, moving now to the full Committee.
• HB 268, authored by Representative Bill Werkheiser (R-Glennville), seeks to add in Chapter 28 of Title 43 the Occupational Therapy Licensure Compact for occupational therapists to practice under certain conditions, including having a valid license and subject to a criminal background check. The bill received a DO PASS recommendation, moving now to the full Committee.
• HB 305, authored by Representative Lee Hawkins (R-Gainesville), seeks to amend Chapter 24A of Title 43 relating to the qualification of courses and instructors for continuing education of licensed massage therapies. Specifically, the bill requires that such educational programs and instructors be approved by a national massage therapy certifying organization or entity approved by the Board of Massage Therapy. The bill received a DO PASS recommendation, moving now to the full Committee.

Senate Insurance and Labor Committee - Health and Workman’s Comp Subcommittee
Chairman Ben Watson (R-Savannah) and his Subcommittee took up SB 82, authored by Senator Michelle Au (D-Duluth). The bill proposes in Titles 31 and 33 for insurers to be required to pay for emergency services regardless of the final diagnosis of the patient. It was before the Subcommittee in a Committee Substitute and one scrivener error was corrected in the initiative. SB 82 received a DO PASS recommendation, moving it now to the full Committee.

Another bill, scheduled to be heard, SB 80, was pulled from the agenda and was not taken up today. The bill, authored by Senator Kay Kirkpatrick (R-Marietta), seeks to enact the “Ensuring Transparency in Prior Authorization Act” in Title 33.

Senate Regulated Industries Committee
Chairman Bill Cowsert (R-Athens) held another discussion today on broadband and how the state could fund an expansion of those services through the state, particularly in rural areas. Senator Steve Gooch (R-Dahlonega) brought another piece of legislation, SB 65, for the Committee to consider but no action was taken on the bill today. Rather, the Committee discussed how the Universal Access Fund, as an option, might be used to fund these expanded services with the fees that this Fund generates.

New Legislation

The House read and assigned the following legislation to committee today:

• HB 389, authored by Representative Todd Jones (R-South Forsyth), amends Title 34 to change the definition of employment to encompass services performed for wages. The Department of Labor is authorized to make a contrary determination on a case by case basis. This bill was referred to the House Industry and Labor Committee.
• HB 390, authored by Representative Mandisha Thomas (D-Atlanta), amends Title 20 to require the Technical College of Georgia to determine the amount of funds need to provide for adult literacy and postsecondary education programs for agriculture. This bill was referred to the House Higher Education Committee.
• HB 391, authored by Representative Mandisha Thomas (D-Atlanta), amends Title 34 to require every employer in the state to develop and post bullying policies against bullying in the workplace. This bill was referred to the House Industry and Labor Committee.
• HB 392, authored by Representative Jason Ridley (R-Chatsworth), amends Title 3 to stipulate that licenses for the retail sale of alcohol be subject to distance requirements from schools. This bill was referred to the House Regulated Industries Committee.
• HB 393, authored by Representative Ron Stephens (R-Savannah), amends Title 48 to revise the high technology data center tax credit. The bill allows a credit for up to $50 million aggregate expenses for high technology data centers located in counties with less than 20,000 residents. This bill was referred to the House Ways and Means Committee.
• HB 394, authored by Representative Ron Stephens (R-Savannah), amends Title 48 to revise the tobacco and vapor products tax rate. The bill increases the cigarette tax from $0.37 to $1.87 per pack. The bill also imposes a 37% tax for cigars and alternative tobacco products and 39% for vapor products. This bill was referred to the House Ways and Means Committee.
• HB 395, authored by Representative Dave Belton (R-Buckhead), amends Title 43 to provide for the "Professional Counselors Licensure Compact" for social workers and marriage and family therapists. This bill was referred to the House Regulated Industries Committee.
• HB 397, authored by Representative Bill Werkheiser (R-Glennville), amends Title 34 to specify that professional employment organizations and co-employment clients must agree in writing on the responsibility to provide workers compensation. If no agreement is reached in writing, the coemployment client is responsible for providing the workers compensation. This bill was referred to the House Industry and Labor Committee.
• HB 398, authored by Representative Bruce Williamson (R-Monroe), amends Title 48 to remove the job cap for the new job tax credit. This bill was referred to the House Ways and Means Committee.
• HB 401, authored by Representative Ginny Ehrhart (R-Marietta), amends Title 31 to prohibit any healthcare professional from performing any procedure on a minor with the purpose of attempting to affirm the minor's sex, if the minor's sexual perception is different than their biological sex. This bill was referred to the House Health and Human Services Committee.
• HB 403, authored by Representative Marcus Wiedower (R-Watkinsville), amends Title 15 to require the state Office of the Child Advocate for the Protection of Children and the Office of the Child Advocate to support quality legal representation for parties involved in proceedings as prescribed in the Chapter. The bill also contains reporting requirements for an annual summary of the quality of legal representation. This bill was referred to the House Juvenile Justice Committee.
• HB 404, authored by Representative Gregg Kennard (D-Lawrenceville), amends Title 35 to revise the state's criminal record restriction laws. The bill states that all records including fingerprints and photographs associated with an arrest must be restricted unless the case is referred for additional prosecution to the proper prosecuting attorney. This bill was referred to the House Judiciary Non-Civil Committee.
• HB 405, authored by Representative Mike Wilensky (D-Dunwoody), amends Title 15 to authorize superior courts to hold session in an alternative location when it is impracticable to hold session in the normal court location. All criminal jury trials must be held in locations with which the governing authority has a contractual relationship. This bill was referred to the House Judiciary Committee.
• HB 408, authored by Representative Sharon Cooper (R-Marietta), amends Title 44 to revise procedures for dispossessory actions. The bill requires dispossessory demands be made and delivered in writing and allows tenants to pay all back rent within seven days of receiving the notice. This bill was referred to the House Judiciary Committee.
• HB 410, authored by Representative Eddie Lumsden (R-Armuchee), amends Title 16 to transfer regulation of bingo from the director of the GBI to the Secretary of State. This bill was referred to the House Judiciary Committee.
• HR 129, authored by Representative Yasmin Neal (D-Jonesboro), proposes a constitutional amendment that funds from the lottery may be used for economic development purposes including small business loans. This resolution was referred to the House Economic Development and Tourism Committee.
• HR 131, authored by Representative Karen Bennett (D-Stone Mountain), creates the House Study Committee on Health in Georgia. This resolution was referred to the House Health and Human Services Committee.
• HR 139, authored by Representative Shaw Blackmon (R-Bonaire), recognizes and commends the Georgia Academy of Audiology. This resolution was read and adopted.
• HR 141, authored by Representative Shaw Blackmon (R-Bonaire), recognizes and commends the Georgia Speech-Language-Hearing Association. This resolution was read and adopted.

The Senate read and assigned the follow legislation to committee today:

• SB 146, authored by Senator Elena Parent (D-Atlanta), amends Title 16 to create a new offense of making a firearm accessible to a child. This bill was referred to the Senate Public Safety Committee.
• SB 148, authored by Senator Chuck Hufstetler (R-Rome), amends Title 28 to create the 2021 Special Council on Tax Reform and Fairness for Georgians and the Special Joint Committee on Georgia Revenue Structure. This bill was referred to the Senate Finance Committee.
• SB 153, authored by Senator Greg Dolezal (R-Cumming), amends Title 20 to create GOAL academies which operate as special charter schools with a specialized focus on dropout recovery or high school credit recovery. The bill also authorized the State Board of Education to approve, deny, or renew GOAL academy charter petitions. This bill was referred to the Senate Education and Youth Committee.

Rules Calendars for Legislative Day 17

The Senate is expected to consider the following measures on Tuesday for Legislative Day 17:

• SB 87 - “Senator Jack Hill Veterans’ Act”; enact (RULES-33rd)
• SB 27 - Professional Licenses; extend the time a member of the military has to qualify for the issuance of a license; electrical contractor, plumber; (VM&HS-14th)
• SB 43 - Noncovered Eye Care Services Act”; enact (Substitute) (I&L-28th)
• SB 45 - Professions and Businesses; individuals who move to the state and establish residency to obtain a license by endorsement to practice certain professions and occupations in this state; provide (Substitute) (RI&U-14th)
• SB 53 - Georgia Technology Authority; power and duty to establish standards for state agencies’ website design, navigation, and accessibility; provide (Substitute) (S&T-52nd)

The House is expected to consider the following measures on Tuesday for Legislative Day 17:

• HB 93 - Health; eliminate duplicative state licensure and regulation of clinical laboratories; provisions (Substitute)(H&HS-Cooper-43rd)
• HB 128 - Health; prohibit providers from discriminating against potential organ transplant recipients due solely to the physical or mental disability of the potential recipient (H&HS-Williams-145th)
• HB 146 - Public officers and employees; paid parental leave for eligible state employees and eligible local board of education employees; provide (H&HS-Gaines-117th)
• HB 163 - Community Health, Department of; submit state plan amendment to implement express lane enrollment in Medicaid; direct (Substitute) (H&HS-Cooper-43rd)
• HB 200 - Motor vehicles; issuance of a Class C driver's license to operators of certain three-wheeled motor vehicles; provide (MotV-Powell-32nd)
• HB 207 - Motor vehicles; electronic submission of certain documentation required of manufacturers, distributors, dealers, secondary metals recyclers, used motor vehicle parts dealers, and scrap metal processors by the Department of Revenue; provide (Substitute)(MotV-Corbett-174th)
• HB 254 - Insurance; Commissioner's enforcement authority with regard to adjusters; increase (Substitute)(Ins-Lumsden-12th)