Thursday 38th March 25, Legislative 2021 DAILY REPORT Day House Budget & Research Office (404) 656-5050 The House will reconvene for its 39th Legislative Day on Monday, March 29 at 10:00 a.m. 13 bills / resolutions are expected to be debated on the floor. Today on the Floor Rules Calendar HR 406 Georgia Emergency Operations Plans; prioritize the continuum of the long-term services and support system; urge Bill Summary: House Resolution 406 urges the Department of Public Health to authorize its regional health care coalitions to include long-term services and support system providers in their care networks for the purpose of administering the Georgia Emergency Operations Plan. Authored By: Rep. John LaHood (175th) Rule Applied: Modified-Open House Public Safety & Homeland Security Committee 03-22-2021 Do Pass Committee: Action: Floor Vote: Yeas: 167 Nays: 0 Amendments: Floor Action: Adopted (Resolution) SB 6 "Tax Credit Return on Investment Act of 2021"; enact Bill Summary: Senate Bill 6 adds a new Code section, relating to fiscal bills generally, to allow the chairpersons of the House Ways and Means Committee and the Senate Finance Committee to request from the Department of Audits and Accounts an economic analysis of up to five existing or proposed tax incentives per committee. The requests must be made by May 1, and the department must return the economic analysis to both committees by December 1 of the same year. The economic analysis must include an estimate of the annual fiscal impact of the law or proposed law for the next five years, as well as the net change in state revenue, state expenditures, economic activity, and, if applicable, public benefit resulting from the tax incentive. During the following legislative session, if a fiscal note is requested and a relevant economic analysis was completed, then a summary of the relevant economic analysis must be attached to the fiscal note. The bill also creates the 2021 Special Council on Tax Reform and Fairness for Georgians, which consists of 13 members that include three economists or certified public accountants; the governor or his designee; the lieutenant governor or his designee, the speaker of the House or his designee, a certified public accountant or economist chosen by the minority leaders of both chambers; the 2021 Georgia state director for the National Federation of Independent Business; two non-legislative members from each the speaker of the House of Representatives and lieutenant governor; and the president of the Metro Atlanta Chamber of Commerce. Additionally, the commissioner of the Department of Economic Development shall serve as ex-officio non-voting member. The special council is to conduct a study of the state's current revenue structure and report its findings by January 10, 2022. This chapter of the bill is automatically repealed on July 1, 2023. The bill also includes the 'Georgia Economic Renewal Act of 2021,' which makes multiple amendments throughout O.C.G.A. 48-7, relating to income tax. The bill adds a new Code section that establishes an additional tax credit for jobs created by a medical equipment and supplies manufacturer or a pharmaceutical and medicine manufacturer. The House of Representatives Daily Report for March 25, 2021 Today on the Floor credit of $1,250 per job is available for jobs that qualify for the current job tax credit or quality jobs tax credit to the extent that those jobs are engaged in the activity of manufacturing medical equipment or supplies or manufacturing pharmaceuticals or medicine. The credits must be claimed separate from the current job tax credit or quality jobs tax credit. When the credits exceed the taxpayer's income tax liability, the credits may be used to cover the taxpayer's quarterly or monthly employee withholding payments and the credits may be carried forward for up to 10 years. A taxpayer may not claim both the job tax credit for PPE manufacturers and this credit. The bill also amends O.C.G.A. 48-7-40.15, relating to alternative tax credits for base year port traffic, by allowing the income tax credits earned to be used to offset payroll withholdings taxes. Senate Bill 6 also amends O.C.G.A. 48-7-40.25, relating to the income tax credit for business enterprises with existing manufacturing facilities, by establishing specific requirements for high- impact aerospace defense projects. A "high-impact aerospace defense project" must be constructed by a business enterprise that is a prime aerospace defense contractor with greater than 40 percent of its revenues from sales to the United States government in its most recent tax year and must be certified by the commissioner of the Department of Economic Development as materially supportive of the mission of the Georgia Joint Defense Commission and the Governor's Defense Initiative. The bill allows a high-impact aerospace defense project to start claiming manufacturing facility tax credits in the tax year in which the taxpayer achieves 1,000 jobs and a $500 million investment; however, the taxpayer must certify that it will later achieve 1,800 jobs and an $800 million investment. For high- impact aerospace defense projects, the qualifying jobs must be located in Georgia, but are not required to be located at the manufacturing facility. The bill also increases the aggregate cap on credits for any individual project from $50 million to $100 million for high-impact aerospace defense projects and allows high-impact aerospace defense projects to claim either a quality jobs tax credit or mega project tax credit along with existing manufacturing tax credits. The bill amends O.C.G.A. 48-7-40.24, relating to conditions for taking the job tax credit, by repealing the 4,500 job cap for the job tax credit. SB 6 also amends 33-1-25, relating to the 'Georgia Agribusiness and Rural Jobs Act,' by authorizing an additional $100 million to the 2021 allocation of funding to begin August 1, 2021. The bill increases the application fee from $5,000 to $25,000, establishes an annual maintenance fee of $7,500, and expands the annual reporting requirements for the rural funds to include the fund's total eligible capital investments as a percentage of its total capital investments. The bill amends 48-7-40.34, relating to the tax credit for Class III railroads, by extending the sunset date to earn credits from December 30, 2023, to December 30, 2028, as well as extending the deadline to freely assign credits from January 1, 2024, to January 1, 2029. The bill includes the 'Georgia Economic Recovery Act of 2021', which amends O.C.G.A. 48-8-3, relating to exemptions from sales and use taxes, by extending the sunset on the exemption of sales of tangible personal property used for and in the construction of a competitive project of regional significance from June 30, 2021, to June 30, 2023, and providing a state and local sales tax exemption for the sale of tickets, fees, or charges for admission to a fine arts performance or exhibition conducted by a 501(c)(3) organization or a museum of cultural significance, provided that the organization's or museum's primary mission is to advance the arts in Georgia. The bill amends O.C.G.A. 48-8-3.2, relating to sales tax exemptions for manufacturers, by reinstating the exemption on the maintenance and replacement parts for the equipment used to mix, agitate, and transport freshly mixed concrete in a plastic and unhardened state. Motor fuel used in a motor vehicle that is a manufacturing plant is not exempt from sales and use tax. This exemption sunsets June 2026. SB 6 also amends O.C.G.A. 48-8-3.2, relating to the maximum amount of sales and use tax imposed to maintain, repair, or refit a boat, by eliminating the June 30, 2025, sunset date. Authored By: Sen. John Albers (56th) Rule Applied: Structured House Ways & Means Committee 03-24-2021 Do Pass by Committee Committee: Action: Substitute Floor Vote: Yeas: 152 Nays: 14 Amendments: Page 2 of 27 House of Representatives Daily Report for March 25, 2021 Today on the Floor SB 28 Juvenile Code and Domestic Relations; provisions relating to the protection of children; strengthen, clarify and update Bill Summary: Section 1 of Senate Bill 28 revises the juvenile code by amending the definition of "juvenile court intake officer" to clarify that Department of Juvenile Justice (DJJ) staff acting as juvenile court intake officers may make intake decisions for complaints alleging delinquency or children in need of services proceedings. The definition of "sexual exploitation" in O.C.G.A. 15-11-2 is revised to remove the reference to the crime of "prostitution" while adding a reference to "sexual servitude" and O.C.G.A. 16-5-46. The section also removes a reference to "placement of" a child in the definition of "temporary alternatives to foster care." Section 2 changes the training requirements for juvenile court intake officers from eight hours annually to an initial training requirement of eight hours with two hours required annually thereafter. Section 3 allows for the court to support a voluntary agreement made between a parent, guardian, or legal custodian and the Division of Family and Children Services (DFCS) and specifies what types of orders constitute a "temporary alternative to foster care." The deadline for when a preliminary protective hearing must be completed is changed, to remove the requirement that it be held within five days of the order being issued and to add a reference to have the procedure be applied as stated in O.C.G.A.