Weekly Legislative Report #9 3-13-20
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Governmental Affairs Terry Mathews: 404-310-4173 [email protected] Scott Maxwell: 404-216-8075 [email protected] The following information is intended for the sole use of the clients of Mathews & Maxwell, Inc. Please contact the principals above to learn more about the services of the firm. Weekly Legislative Report # 9 Week Ending March 13, 2020 Track Georgia COVID-19 Cases You can track Georgia COVID-19 cases by county list and state map at this link. The Department of Public Health will update the site each day at noon during the crisis. Saturday’s case total was 66. By Sunday, the count had ballooned to 99. Legislative Session Suspended Reacting to the growing coronavirus crisis, the Georgia General Assembly went into “suspension” for an undetermined amount of time after meeting very briefly Friday morning. The House and Senate completed crossover day on Thursday, passing dozens of bills that just beat the deadline to clear at least one house or be dead for the session. Many others did not pass. The ultimate revenue losses from cancellation of huge sales tax generators such as the final four college basketball tournament, the Masters Golf Tournament and other professional sporting events, Savannah’s St. Patrick’s Day festivities, conventions and additional activities is difficult to estimate. In addition, people staying home for safety don’t spend money for everyday shopping, restaurant meals or entertainment. The situation raises budget concerns. The FY20 amended budget that balances spending against revenues through June 30 has gone to the Governor’s desk. He must wrestle with the possibility that sales tax revenues over the next three months will fall short of projections. As for the FY 21 budget that begins July 1, the House has already passed its version, but the Senate has just begun to consider it. The potential economic impact of coronavirus closures and cancellations on next fiscal year’s income tax receipts causes concerns about state revenues assumed in that budget. Revenue-wise, we’re clearly in uncharted territory. Really Unusual Stuff Gov. Brian Kemp has taken several bold steps to address the crisis, including the declaration of an official Public Health Emergency, which gives him and the Department of Public Health additional latitude to manage the crisis. Apparently, it’s the first time such a declaration has ever been used. He has called the General Assembly back into a special session on Monday morning at 8:00 for the sole purpose of ratifying his declaration. Under the declaration, the Governor can move funds around to address the emergency and the Department of Public Health can take certain actions, including forced quarantines or vaccinations if warranted. The Nursing Board could grant out-of- state nurses temporary licenses under the declaration and truck drivers could work under reduced restrictions when delivering emergency supplies. By Saturday Kemp had also initiated the call-up of 2,000 National Guard troops to active duty to assist the Georgia Emergency Management and Homeland Security Agency. Price Gouging Statute in Effect Additionally, the Public Health Emergency declaration triggers the state’s price-gouging statutes. From the Governor’s Saturday press release: While the State of Emergency remains in effect, businesses may not charge more for products and services identified by the Governor than they charged before the declaration of the state of emergency, unless the increased prices accurately reflect an increase in the cost of new stock or the cost to transport it, plus the retailer's average markup percentage applied during the ten days immediately prior to the declaration of the state of emergency. Attorney General Chris Carr was quoted in the press release saying his office will hold price gouging violators accountable. Courts React Too The Judicial branch of government has also reacted to the crisis. Chief Justice Harold Melton declared a statewide judicial emergency. He did not shut down all courts, but the action gives litigants relief from responding to statutory deadlines and provides judges with flexibility in how to conduct court business. Presidential Primary Vote Delayed Georgia became the second state in the nation to postpone its presidential primary which was scheduled for March 24. It is now slated to be held on May 19 in conjunction with the regular primary for David Perdue’s U.S. Senate seat, the general assembly and other offices. Perhaps here is where we should remind you that state legislators cannot raise money while the General Assembly is in session. Even though we are in “suspension,” the rule still holds. Crossover Day The only routine news from last week was significant in its own right. Dozens of bills survived crossover, while others died on the table -- literally left “tabled” when the House and Senate adjourned. The Senate went home fairly early Thursday evening (56 senators generate fewer bills than 180 House members), but the House was in session until just after midnight. Here are some selected outcomes: Tort Reform Tabled 2 Tort reform legislation, SB 415 (Sen. Steve Gooch-R), was tabled in the Senate on Tuesday by a razor thin 27-26 vote. A motion to remove it from the table on Thursday in order to receive an up- or-down vote on passage failed, 18-31. Regional Commissions and Development Authorities Two bills by Rep. Sam Watson (R-Moultrie) passed the House on crossover. HB 1073 provides for the creation of Regional Development Authorities. HB 1122 would regulate the size and composition of the 11 Regional Commissions across the state. Both have been referred to the Senate Governmental Affairs Committee. Constitutional Amendment to Allow Gambling A resolution calling for Georgians to vote on amending the Constitution to allow destination resort casinos, parimutuel betting on horses, and sports betting passed out of committee last week, made it through Rules Cmte to the House debate calendar, but was never called for a vote on crossover night. HR 387 (Ron Stephens-R) apparently did not fare well during a late evening whip count, persuading the Speaker to leave it uncalled. The timing could have hardly been more difficult for Stephens, who attended his father’s funeral on the Georgia coast at 10:00 a.m. Thursday, then rushed to the Capitol for an expected close vote that evening. We extend our sincere sympathies to Ron, whose mother also passed in February. Problems with Pharmacy Benefit Managers HB 1027 (Rep. Lee Hawkins-R) and SB 313 (Sen. Dean Burke-R) both deal with regulating Pharmacy Benefit Managers (PBMs). Hawkins’ bill focused on requiring PBMs to share manufacturers’ rebates with customers instead of insurance companies, but it failed to get out of Rules Cmte. Burke’s bill passed out of the Senate and has been assigned to the House’s Special Cmte on Access to Quality Health Care. It features 14 pages of thou shall or shall not rules designed to reign in perceived excesses of PBMs. Vaping Tax Amended to Death Attaching a 7% excise tax to vaping products was an idea with considerable backing when the session started, but Rep. Bonnie Rich’s (R-Suwanee) bill, HB 864, ran into a slew of amendments in the Ways & Means Cmte. One particular amendment, giving a 50% break on the tax for “modified risk” products, was opposed by quite a few health advocates, such as lung, heart, cancer and children’s organizations. During floor debate, letters from those advocates were cited, leading many otherwise supporters of the concept to vote no on the bill. It was killed on a 70-89 vote, then briefly resurrected by a 78-77 vote to reconsider the House’s action. Finally, a motion to table passed 83-73, sealing the coffin on the undead idea for a second time. The Rules Cmte sent the bill to the floor under its “structured” rule, meaning it could not be further amended to strike the offending language. 3 When to Summon Coroners for Nursing Home Deaths HB 955 (Chuck Efstration-R) included several features to protect seniors from abuse and required the involvement of coroners in more instances of nursing home deaths. It passed out of committee last week but failed to be called for a vote on crossover day. Uniform Mediation Practices The Georgia Uniform Mediation Act, HB 464, would create consistent rules governing formal mediations in lieu of civic court actions. The John Kennedy (R-Macon) bill passed out of Judiciary Cmte last week and through the full Senate. It’s now destined for further vetting by the House Judiciary Cmte. Pole Attachment Fees for Broadband The House passed HB 244 that would have the Public Service Commission set rates for broadband internet providers to attach their equipment to poles owned by Electric Membership Corporations. The issue has been central to legislators’ efforts to quickly extend high speed broadband service to the entire state. The rate EMCs charge for attaching the necessary equipment to existing poles has been contentious and this was an approach to try and move the process forward. It passed 116-44. Ride Share Fees and Hurricane Relief Taxes HB 105 became two-bills-in-one while being batted back and forth between the House and Senate before eventually being approved by both. It replaces a sales tax on Uber, Lyft, taxi and limo rides with a 50-cent flat fee designated exclusively for transit projects. Estimated receipts from the fee start at $30 million, but some predict much more over time. The bill also allows recipients of recently-released federal disaster relief related to Hurricane Michael to not count such aid as income when preparing their tax returns. The legislation is now on the Governor’s desk for signature.