Legislative Bulletin - April 20, 2007

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The Georgia General Assembly will adjourn today, possibly late tonight, completing what one reporter told us was the second longest session since the 1890s.  As of this writing, there is a possibility that the Governor may call a special session on the state budget or other unfinished legislation.

The session has been remarkable not only for its length but also for the first legislative override of a gubernatorial veto in at least 30 years.  On Day 39 of the legislative session, Thursday, April 19, Gov. Perdue vetoed the 2007 supplemental budget.  At 11:20 a.m. the next morning, the House of Representatives voted 163-5 to override the Governor’s veto.

FOR THE GEORGIA CHAMBER OF COMMERCE AND BUSINESS IT WAS ANOTHER OUTSTANDING, PRODUCTIVE AND SUCCESSFUL SESSION

I am proud to say, just as last year, that no bill that the Georgia Chamber of Commerce opposed passed the Georgia General Assembly in 2007.  We also passed or made significant progress on a number of pro-active, pro-business objectives.

Private Property Rights and Employer Rights

The session was also marked by a number of significant battles.  One, for example, that garnered much interest and attention was over employer rights to regulate their property and set reasonable workplace safety rules.

The Georgia Chamber and dozens of other allied business associations, and hundreds and hundreds of businesses, fought for the fight for property owners’ rights against a bill that would have prohibited business owners and property owners from adopting “no gun” policies for their parking lots.

A vote on the bill, SB 43, was scheduled for Day 30 of the session, but was withdrawn.  Later, as the session began to wind down, the bill, proposed by the National Rifle Association (NRA) but opposed by many of their own members, was amended onto another piece of legislation, HB 89, and the amended bill was again scheduled for a vote – the day after the tragic and horrific shootings at Virginia Tech.  Obviously no member of the Senate wanted to consider such a bill on the day after the worst shooting massacre in U.S. history.  Yet the NRA pressed and pressed for a vote, one day after this heart-wrenching tragedy.

The horrific massacre at Virginia Tech was one important consideration in ultimately pulling the bill from the Senate calendar; but the truth is, the Georgia Chamber of Commerce, businesses, and private property rights’ organizations had the votes to defeat this bill notwithstanding.

Thanks to every member of the Georgia Chamber and our friends in the Georgia Association of REALTORS®, Georgia Restaurant Association, Georgia Retail Association, Georgia Poultry Federation, Georgia Beverage Association, American Society of Safety Engineers, Georgia Chemistry Council, Georgia Forestry Association, Georgia Petroleum Council, Georgia Pulp and Paper Association, Georgia Traditional Manufacturers Association (GTMA), Georgia Mining Association, Georgia Railroad Association, the Building Owners and Managers Association (BOMA) Atlanta and dozens of others – businesses large and small and local chambers of commerce across the state – for their effort and action in defending employer property rights.

In short, the bill – which almost certainly will be back in 2008 – was bad public policy (which did little for gun owners) and for what little it did do, it was at the expense of owners’ rights to control their property and assets, diminishing Georgia’s employment-at-will doctrine and weakening the meaning and importance of the employer-employee contract.

Some at the Capitol have criticized the NRA’s lobbying tactics, which some Senators and newspapers have characterized as “bullying and intimidating.”  We’ll leave it to others, including members of the Senate, to comment on the efficacy of the NRA’s lobbying tactics.  As for the Georgia Chamber of Commerce, our policy is to win on the merits of our arguments, hard work and hustle, and with respect for legislators - Republican or Democrat, elected by the people - and with dignity and honor for the legislative process.

For all the heat and attention given the debate over the right of property owners and employers to prevent the introduction of firearms to their land or workplace, there were other significant issues debated and discussed.

Tax Legislation

As of this writing, a conference committee had been appointed to resolve differences between the House and Senate versions of HB 186 (incentives for alternative fuels).

Also, at this time, relief from the state’s tax on energy used in manufacturing is still in play.  The Senate added language to a bill sponsored by Rep. Jeff Lewis that would cap the tax paid by businesses during times when energy prices spike significantly due to, for example,  Hurricane Katrina-type situations, and added a one-year, one-percent reduction of the tax.  The House did not agree to the Senate changes.  Georgia is the only state in the Southeast that does not offer some sort of relief or protection for manufacturers when energy prices spike and corresponding taxes reach crushing levels.  It remains to be seen if a compromise on this important Georgia Chamber initiative can be reached.

The Georgia Chamber of Commerce and its members played a critical role in preventing legislation from moving forward that would have severely curtailed the use of retraining tax credits by Georgia companies.

The Georgia Chamber of Commerce, the Georgia Pulp and Paper Association, the Georgia Mining Association, the Georgia Traditional Manufacturers Association (GTMA) and others worked together for the passage of legislation, the “integrated plant theory (HB 237 by Rep. Chuck Martin),” which would exempt the sales tax on all machinery and equipment that is necessary and integral to the manufacturing process.  This bill will be back in 2008.

Working with our friends at the Georgia Restaurant Association, we helped pass a bill eliminating the sales taxes on prepared food donated for charitable and/or disaster relief efforts (HB 169 by Rep. Chuck Martin).

The annual Georgia Chamber-supported sales tax holiday – on back to school items and energy-efficient appliances – passed overwhelmingly (HB 128 by Rep. Lynn Smith).
 

Early in the session, an attempt to raise the state minimum wage was defeated, with assistance from the National Federation of Independent Business (NFIB) and others.

With the Tourism Development Alliance of Georgia (TDAG), legislation sponsored by Rep. Jeff Lewis was adopted providing a 25 percent sales tax reimbursement on the total capital investment for tourism development for large-scale destination attractions (HB 451).

HB 227, also by Rep. Jeff Lewis, a Georgia Chamber-endorsed proposal to streamline video franchising laws in Georgia, was enacted and will be sent to the Governor for his approval.

Comprehensive Tax Overhaul

One last noteworthy announcement at the very end of the session: House Speaker Glenn Richardson (R-Hiram) has filed HR 900 to overhaul Georgia’s tax code, in form of a Constitutional Amendment on which Georgians would vote in November 2008.  In short, the bill would eliminate all current state and local property taxes; sales taxes; income taxes; taxes on gas; estates; unemployment and worker’s compensation; gross receipts; insurance premiums; business and occupation taxes; intangible taxes; and utilities taxes.  Instead, the state would only collect a 5.75 percent flat income tax and 5.75 percent sales tax with no exemptions.

The Georgia Chamber of Commerce and its members appreciate the Speaker’s interest in creating the fairest possible, most pro-business tax climate in the country, and we look forward to working closely with him throughout the year to make that possible.

Other Key Issues

Legislation was introduced to significantly change key parts of the Georgia Chamber-backed 2005 tort reform law.  That measure (SB 286) was never heard in committee, but it should be expected that this and other bills to weaken tort reform will be introduced in 2008.

SB 96, a bill prepared by the Georgia Chamber of Commerce and sponsored by State Sen. Tim Golden (D-Valdosta) and Sen. Doug Stoner (D-Smyrna) to clarify and improve Georgia’s drug-free workplace laws, was enacted.  This legislation was sought by the Georgia Chamber’s affiliate, Drugs Don’t Work, and The Council on Alcohol and Drugs.

New and potentially costly insurance and healthcare mandates were successfully fought; a tax – only on those businesses that offer health insurance – was also stalled and did not pass.

The Georgia Chamber of Commerce, in coalition with other business associations, worked to successfully amend Internet legislation to remove language that could have held Georgia businesses liable in costly civil lawsuits due to the actions of their employees (SB 24).

Another Chamber-backed bill, to allow counties and their voters the option of permitting retail sales of beer and wine on Sundays after church hours, will be back in 2008.  The bill, SB 137, was sponsored by Sen. Seth Harp.  Working with the Georgia Food Industry Association and the Georgia Association of Convenience Stores and others, the Georgia Chamber sought parity for businesses that compete with neighboring states.  Every state in the Bible Belt – in fact all but three states in the country – give counties and voters by referendum the option of deciding for themselves whether or not to allow the sale of alcohol on Sundays.  Georgia already allows it; but only for restaurants and bars.  It has been our view that the state should not favor one sector of our economy over another, and that our businesses should be able to complete with similar businesses across the state line.
 

Looking ahead to 2008, the Georgia Water Council, the coordinating committee established by the Comprehensive Statewide Water Management Planning Act, will present a water resources management plan by July 1, 2007, which will be the subject of legislative debate ...

... as will plans for future transportation funding.  Georgia faces a $7.7 billion transportation-funding shortfall over the next six years ...

... and, as the General Assembly took no action on Certificate of Need (CON) legislation for hospitals and other like providers, that issue may return next year.

In Closing

It’s been a long session, and a long day.

A detailed update on the 2007 legislative session will be available early next week, giving the final status of the many bills the Georgia Chamber of Commerce was supporting and opposing.

Thank Your Legislator!

Finally, thank your legislator!  This an important gesture of goodwill and respect for all members of the Senate and House by members of the Georgia Chamber, individual businesses and local chambers of commerce ...

I would urge each of us to take a moment to write our legislator next week, and tell them that we appreciate their dedication to their job, the incredible investment of time and energy they give to their legislative duties, and their conscientious commitment.

We are seldom in agreement with all members of the General Assembly.  Sometimes we disagree even with our friends.  But we respect each member’s opinions and the self-sacrifice their role as citizen legislators requires.

Working together, we can accomplish much.

JOE FLEMING

Joseph T. Fleming
Senior Vice President, Government Affairs
Georgia Chamber of Commerce

The Georgia Chamber of Commerce is the unified voice of the business community, aggressively advocating the business viewpoint in the shaping of public policy, encouraging ethical business practices and ensuring the state’s future as economically prosperous, educationally competitive and environmentally responsible.