Monday, April 18, 2011
The 2011 session of the Georgia General Assembly came to a close last night. Over the past 40 working days, legislators addressed a number of issues important to our state's business community. Legislation passed will allow our state to create jobs and continue on the road to economic recovery by addressing Georgia Chamber priorities including water, health care, education and economic development.
For more information on any of the bills mentioned below, or for a complete list of bills tracked this year, visit www.gachamber.com.
Water
SB 122 (scorecard issue) passed and is expected to be signed by Governor Deal. This bill, the result of an effort led by the Georgia Chamber, allows the formation of public-private partnerships to fund certain water supply and treatment projects, providing a new, optional funding mechanism to address identified priorities. The bill makes no changes to current environmental regulations or provisions within the state water plan and is an important step forward in meeting our state's long term water needs.
Ethics
HB 232 (scorecard issue) has already been signed by Governor Deal. The bill addresses two issues important to Georgia's business community. First, it clarifies provisions regarding bona fide salespersons and their exclusion from the state's lobbying laws. Second, it clarifies who must register as a lobbyist - an issue that was the subject of an opinion issued by the Georgia Government Transparency and Campaign Finance Commission at the request of the Georgia Chamber. This legislation was effective upon the Governor's signature, and is retroactive to January 10, 2011.
Sunday Sales
SB 10 (scorecard issue), which gives local communities the option of allowing Sunday sales of beer, wine and spirits, passed and is expected to be signed by Governor Deal. The Georgia Chamber supported this bill as it lifts an unfair restriction on commerce.
Economic Development
HB 30, which passed,will clarify Georgia's employment covenant laws, completing the changes implemented with the passage of Amendment One last November, and protecting both employers and employees by allowing judges to rule based on the intent of employment agreements.
HB 234, which extends to 2013 the current state sales tax exemption on engines, parts, equipment, used in the maintenance or repair of aircraft not registered in Georgia, passed. The bill also includes tax incentives for tourism development.
HB 292 (scorecard issue) passed both chambers. This legislation reduces the pending surcharge increase on unemployment insurance taxes paid by employers. The current rate of 35% is scheduled to increase to 100% on January 1, 2012, to replenish the unemployment trust fund, and this bill would cap that increase at 50%. In addition, HB 292 extends the current rate at which newly covered employers pay UI taxes until a rate is calculated based on employment experience.
Health Care
HB 47 (scorecard issue), which expands health insurance options for Georgians by allowing the purchase of policies approved for sale in other states, passed. The Georgia Chamber has long supported this measure as a way to control health insurance costs.
HB 167 (scorecard issue), was opposed by the Georgia Chamber as it will erode current employer protections under the federal Employee Retirement Security Income Act (ERISA) by changing the state's prompt payment law, passed. The Chamber will ask Governor Deal to veto this bill.
SB 17 (scorecard issue) which will create a state commission to review proposed and existing health insurance mandates, making recommendations on existing mandates by the end of 2012, passed. The Georgia Chamber supported this measure as mandates have driven up the cost of health insurance by as much as 45%, making it more difficult for employers to provide this important benefit.
Education
HB 326, which preserves the HOPE scholarship program, has already been signed by Governor Deal. Under the new statute, students with at least a 3.0 grade point average will receive annual awards based on lottery revenue, projected to be 90% of current tuition for fall 2011. Students with at least a 3.7 GPA and 1200 SAT reading and math score, as well as all valedictorians and salutatorians, will receive 100% of their tuition each year. The legislation also includes provisions for low-interest loans, reduces private college scholarship awards, and eliminates funding for books and fees.
SB 79 allows the Governor -- following a hearing by the state Board of Education -- to remove members of any local school board failing to meet accreditation requirements by July 1. The Georgia Chamber supported this bill as it is consistent with our organization's belief that sound school board governance is critical to quality education.
Judiciary
HB 24addresses a long-standing Georgia Chamber priority to modernize Georgia's current rules of evidence, which have not been updated since 1868, and make them more consistent with federal standards. The bill passed and will hopefully be signed by Governor Deal.
Immigration
HB 87, a comprehensive immigration reform bill, passed in a form that attempts to strike an important balance between addressing this growing challenge of illegal immigration and allowing Georgia's economy to continue to grow. After working with legislative leaders since last fall, the majority of the Georgia Chamber's concerns were addressed including exempting small businesses from E-verify requirements and giving businesses required to use E-verify a 30-day grace period to correct any good faith violations. The bill also addresses law enforcement provisions in a way that establishes objective circumstances under which immigration status can be investigated.
Tax Reform
Legislative leaders chose to delay the passage of tax reform legislation. The Georgia Chamber has been heavily involved in the efforts to update our state's tax code to make us more competitive for new and existing businesses. It is likely that the recommendations made by the special council on tax reform as well as the sales tax on energy used in the manufacturing process and tax credits and incentives for new and expanding businesses will be further studied as part of Governor Deal's competitiveness initiative this summer. This effort, which is being co-chaired by the Georgia Chamber and the Georgia Department of Economic Development, will kick-off later this month.
