Legislature adjourns Sine Die for 2012

The 2012 Session of the Georgia General Assembly is over.

This year’s legislature addressed issues from foreclosures to charter schools to economic development.  The fiscal year 2013 budget may have one of the largest new business incentive packages ever included as Governor Deal intends to market Georgia both internally and worldwide as a great place to do business.  There was also substantial “tax reform” legislation passed, while the fiscal impact may need to be re-assessed at a future date.  Issues related to taxation of inventories, special purposes and a tax court all passed, as well as changes to unemployment compensation and job tax credits.  All in all, from a business standpoint, the 2012 legislative session had to be considered a success.

The governor has 40 calendar days to either sign, veto or let legislation become law without his signature.  During these 40 days, legislative lawyers will be compiling all the bills that passed and checking for any overlapping or contradictions in legislative language.  In the past, some governors have had their staff contact local governments to see if they support local legislation that was adopted.  This is also the time that groups negatively impacted by legislation will lobby the governor and his staff to veto legislation.

The RBC 2012 Legislative Update will periodically advise when impactful legislation is signed or vetoed by Governor Deal as well as issues that will be on the November 2012 ballot.  Upcoming Updates will also include a listing of legislation that did not pass the 2012 legislative session.

Retirement Announcements Begin

All state representatives and senators must seek re-elected in 2012.  This year is a reapportionment year for elections and every state representative and senator will be running in newly aligned legislative districts. A significant number of legislators will decide not to run or will not return in 2013.  Most notably are Rep. Bob Hanner after 36 years of service and Rep. Tommy Smith with 32 years.  Some of the legislators who announced they will not return in 2013 are:

Rep. Amos Amerson  R- Dahlonaga – 10 years

Rep. Lymore James  D-Montezuma – 18 years

Rep. Stephanie Benefield  D-Atlanta – 12 years

Rep. Joe Heckstall  D-East Point – 16 years

Rep. Roger Williams  R-Dalton – 10 years (10 years previously in 1980’s)

Rep. Lee Anderson  R-Grovetown – 4 years

Rep. Roberta Abdul-Salaam  D-Riverdale – 6 years

Rep. Doug Collins  R-Gainesville – 6 years

Rep. Elly Dobbs  D-Atlanta – 2 years

Rep. Bob Hanner  R-Parrot – 36 years

Rep. Mark Hatfield  R-Waycross – 6 years

Rep. Billy Horne  R-Sharpsburg – 8 years

Rep. Sistie Hudson  D-Sparta – 14 years

Rep. Martin Scott  R-Rossville 8 years

Rep. Gene Maddox  R-Cairo – 8 years

Rep. Tommy Smith  R-Nicholls – 32 years

Rep. Roger Lane  R-Darien – 8 years

Sen. Greg Goggins  R-Douglas – 8 years

Some legislators who choose not to seek re-election may be running for another elected office.  Some legislators, like Rep. Lane, will be accepting appointments to state courts or other government positions.  Legislators are vested in the Legislative Retirement System upon being elected to their fourth term in office (8 years).  While retirement financial benefits aren’t substantial, retired legislators are eligible for state health insurance benefits.

Have a great week.

The Regional Business Coalition of Metropolitan Atlanta (RBC) is an organization of over a dozen of the largest and most active Chambers of Commerce throughout the metro Atlanta region.  RBC member chambers represent over 15,000 member companies who employ millions of metro Atlanta residents.  The RBC’s primary goal is to represent the interests of RBC Chamber members on regional public policy issues impacting our transportation, water and air quality and to advocate for solutions that improve metro Atlanta’s quality of life and economic vitality.  This weekly update is prepared for RBC member Chambers by Terry Lawler, RBC Executive Director, who can be contacted at tlawler@atlregionalbusiness.org or 770-310-1864.

Legislature adopts Resolution to End 2012 Legislative Session on Thursday, March 29

The House and Senate adopted a resolution this week to end the 2012 legislative session on Thursday, March 29.  The legislature will be in session Monday and Tuesday, in recess Wednesday and finish on Thursday.  All legislation eligible to pass this year must have been voted on by both legislative bodies by Tuesday.  On the 40^th and final legislative day, only conference committee bills, those that have passed both legislative bodies but in different versions, will be considered.

General Assembly Passes Sweeping Tax Reform Legislation

The legislature has passed the most sweeping tax reform legislation in decades this week.  The legislation would, among other things, change the way motor vehicles are taxed, place sales taxes on internet sales, increase personal exemptions for married couples, cap retirement income exemptions, re-establish sales tax holidays and remove the sales tax on energy used in manufacturing.

It has been estimated that local governments will see a potential reduction in annual revenues of over $200 million annually due to these changes.  Because of this potential reduction in local government revenues, some local governments felt they would have to raise property taxes to make up the shortfall.  Legislative leadership has promised that local governments will be “held harmless” financially by the State, therefore reducing the need for any property tax increases.

Major Bills Still Needing to Clear the House or Senate by Tuesday evening

The House and Senate still have over 200 bills and resolutions that must pass their body by Tuesday evening or they are effectively dead for the 2012 legislative session.   The Senate still has legislation establishing a Tax Court and changes to the MARTA Act and the House has yet to act on the unemployment compensation and trust fund financing legislation.  The “Big Budget” for fiscal year 2013 has yet to pass the legislature as well.

Legislation that impacts a specific section of the Georgia Code can be amended onto any other legislation that addresses the same code section.  During the final few days, legislators will attempt to amend legislation that has made it to the floor for debate with other legislation that languishes in committee.

Expect More Than the Usual Number of Legislators to Announce Retirement this Week

Because the upcoming elections will be with newly reapportioned districts, you can expect quite a few announcements of retirements by legislators this week.  Representatives Williams and Benefield have already announced they will not return.  A number of legislators have also found themselves in new districts with other legislators.  Some rural districts have legislators with decades of service residing in the same district.  To avoid running against each other, many members will simply choose to retire instead.

Also, expect some surprise announcements from members who don’t face any opposition, as public service takes its toll on a legislator’s personal and business lives.  And some legislators will take this as an opportunity to run for higher office or accept appointments as well.

Legislature to Adjourn Sine Die on Thursday, March 29, 2012

The House will convene Monday, March 26 for legislative day 38 at 9:00 a.m. and the Senate will convene at 1:00 p.m.  Tuesday will be the final day for House legislation to pass the Senate and Senate legislation to pass the House.  The 40^th and final legislative day of 2012 will be Thursday, when conference committee’s will work out differences between House and Senate language in bills that have passed both legislative bodies.

Have a great week.

The Regional Business Coalition of Metropolitan Atlanta (RBC) is an organization of over a dozen of the largest and most active Chambers of Commerce throughout the metro Atlanta region.  RBC member chambers represent over 15,000 member companies who employ millions of metro Atlanta residents.  The RBC’s primary goal is to represent the interests of RBC Chamber members on regional public policy issues impacting our transportation, water and air quality and to advocate for solutions that improve metro Atlanta’s quality of life and economic vitality.  This weekly update is prepared for RBC member Chambers by Terry Lawler, RBC Executive Director, who can be contacted at tlawler@atlregionalbusiness.org or 770-310-1864.

House adopts Resolution Commending Metropolitan North Georgia Water Management District

The Georgia House of Representatives adopted HR 1799 which commends the Metropolitan North Georgia Water Management District for a decade long commitment to water conservation and their good stewardship of Georgia’s water resources.   The resolution further notes that the district’s per capita water consumption is less than Charlotte, Birmingham, Tallahassee, Chattanooga and Orlando.

The resolution was introduced by the Paulding County House delegation, with co-sponsors from Cherokee, Cobb, Fulton and Gwinnett counties.

Senate Committee approves Job Tax Credit legislation

The Senate Economic Development Committee passed a committee substitute to the House Job Tax Credit legislation this week.  The Senate version of the legislation includes additional language defining what actions qualify for job creation, specifically exempting the acquisition of a business enterprise.  The legislation will now go to the Senate Rules Committee where it can be scheduled for a Senate floor vote.  If passed by the Senate, the legislation will have to return to the House for their approval.

Water Resource Legislation Attracting Attention of anti-IBT Supporters

Legislation regulating water resources had hearings this week in the House Environment and Natural Resources committee. Rumors abounded that anti-IBT legislators might use water legislation to add their restrictive language to these bills.  No amendments have been offered but the RBC and other Georgia Water Alliance members are keeping a close watch to prevent the adoption of anti-IBT amendments, whether in committee or on the House or Senate floors. Over 2/3 of Georgia’s counties reside in two or more of Georgia’s 14 river basins and anti-IBT legislation could have significant negative impacts on some or all 108 multi-basin counties.

New Freeport Tax Exemption Bill headed to Governor

The House agreed to Senate language this week that sends new Freeport exemption legislation to the governor for his signature.  The legislation will now allow city and county governments to hold a referendum to exempt inventory of finished goods. Currently, the Freeport exemption only applies to inventories for final destination outside of Georgia or inventory in the process of manufacturing.  A city or county could exempt finished goods inventories at either 20, 40, 60, 80, or 100%.

Extremely Light Volume of Legislative Activity

The House and Senate debated a combined total of only 16 bills last week during a three legislative day period.  The week was filled with lots of pomp as beauty queens, the AARP and St. Patrick’s Day organizers visited the Capitol.  With four legislative days this week, leaving only three legislative days for the remainder of the 2012 legislative session, committee and floor votes this week are expected to increase dramatically.

Legislature May Be In Next to Last Week of 2012 Legislative Session

The House and Senate have agreed to hold four legislative days during the week of March 19-23.  The legislature could potentially adjourn the 2012 legislative session if three legislative days are used during the last week of March.

Have a great week.

The Regional Business Coalition of Metropolitan Atlanta (RBC) is an organization of over a dozen of the largest and most active Chambers of Commerce throughout the metro Atlanta region.  RBC member chambers represent over 15,000 member companies who employ millions of metro Atlanta residents.  The RBC’s primary goal is to represent the interests of RBC Chamber members on regional public policy issues impacting our transportation, water and air quality and to advocate for solutions that improve metro Atlanta’s quality of life and economic vitality.  This weekly update is prepared for RBC member Chambers by Terry Lawler, RBC Executive Director, who can be contacted at tlawler@atlregionalbusiness.org or 770-310-1864.

Cross-Over Day – The Good, the Bad and the Ugly

Last week the Georgia General Assembly completed their 30^th legislative day, called “Cross-over Day.”  Legislation that doesn’t pass one legislative body cannot be considered by the other legislative body after that day.

The House and Senate debated and approved over 80 pieces of legislation on the 30^th legislative day, which ended just before midnight.  However, almost 100 pieces of legislation that were eligible for consideration died in their respective body because they didn’t receive a floor vote.  Another approximately 1,000 bills and resolutions never passed out of committee and therefore, are not eligible for consideration this year.

Some bills of interest that passed one body this week and are still alive include:

MARTA legislation on board make-up and MARTA operations

Job tax credit changes (though significantly watered down due to budget concerns)

Establishment of a State Tax Court

Some bills of interest that died due to lack of a vote include:

Establishment of a transit governance structure

Exempt water from the Tennessee River from inter-basin transfer restrictions

The legislature has yet to pass the fiscal year 2013 budget, charter school legislation, unemployment tax/compensation changes and numerous other pieces of legislation.  Most of the legislation that will be considered during the final 10 legislative days presently resides in the 69 House and Senate subject matter committees. Only about 40 bills are presently eligible for a floor vote in both the House and Senate.

Monday’s House and Senate calendars for the 31^st legislative day include a total of six bills.

Sales Tax Exemption on Energy Used in Manufacturing Facing Hurdles

The proposed sales tax exemption on energy used in manufacturing can be amended onto legislation directed at tax reform and is still eligible for consideration in 2012.  However, legislative leadership is presently working on language to help address local government concerns.  Certain local SPLOST’s, TSPLOST’s and ESPLOST’s could be severely impacted by this exemption, especially where the local option sales tax pays for debt on bonds or for projects already under construction.

RBC Continues to Work for Better Job Tax Credits for Employers in Metropolitan Counties

HB 868, the Job Tax Credit legislation, removed the major tax benefits for job creation in Tier 3 and Tier 4 counties; the overwhelming majority of counties in the RBC region (and metropolitan counties throughout Georgia).  While the RBC has testified in support of HB 868, we are continuing to work with the governor’s floor leaders, the Department of Community Affairs, the Department of Economic Development and other metropolitan area Chambers of Commerce throughout the state to have language added to assist in job creation in Tier 3 and Tier 4 counties.

RBC to Speak before the Atlanta Electrical Contractors Association on the TIA

This week the RBC will be meeting with the membership of the Atlanta Electrical Contractors Association to educate them about the TIA and to debate a representative of the Tea Party on the merits of supporting the TIA referendum in July.

Legislature Sets Calendar for All But Final Three Legislative Days

The House and Senate have agreed to hold three legislative days the week of March 12-16 and four legislative days the following week.  The legislature could potentially adjourn the 2012 legislative session the week of March 26-30.

Have a great week.

The Regional Business Coalition of Metropolitan Atlanta (RBC) is an organization of over a dozen of the largest and most active Chambers of Commerce throughout the metro Atlanta region.  RBC member chambers represent over 15,000 member companies who employ millions of metro Atlanta residents.  The RBC’s primary goal is to represent the interests of RBC Chamber members on regional public policy issues impacting our transportation, water and air quality and to advocate for solutions that improve metro Atlanta’s quality of life and economic vitality.  This weekly update is prepared for RBC member Chambers by Terry Lawler, RBC Executive Director, who can be contacted at tlawler@atlregionalbusiness.org or 770-310-1864.

Legislation Coming to Change Unemployment Tax Rates, Employee Benefits

Draft legislation to address unemployment benefits continues to circulate around the Capitol. The legislation is needed to address the severe shortfall of approximately $700 million in Georgia’s unemployment trust fund created by the Great Recession.

One version being circulated calls for re-building the unemployment trust fund to appropriate levels by 2014.  This would be accomplished through increases in the base wage subject to unemployment taxes, having benefits begin the second week a person is unemployed and limiting the time benefits are paid based on the states total unemployment rate.

Even with these proposed changes, Georgia’s unemployment tax rate is expected remain competitive with, or lower than, our neighboring states.  The actual legislation is expected to be introduced shortly.

Another Anti Inter-basin Water Transfer Bill Introduced

Legislation was introduced in the House this week requiring the director of the Environment Protection Division to only authorize permits for inter-basin water transfers when “no other reasonable methods of obtaining water are available.” The legislation was assigned to the House Natural Resources and Environment Committee, which is not scheduled to meet next week.

RBC Testifies in Support of Jobs Tax Credit Legislation, Tier Designation Flexibility

The House Ways and Means Income Tax subcommittee met this week to discuss HB 868, which increases the jobs tax credits for new and expanding Georgia businesses.  The RBC executive director testified in support for increasing Georgia’s jobs tax credit amounts as well as reducing the number of employees needed to qualify for the credits.

The RBC also provided language to clarify the authority of the Department of Community Affairs to allow specific businesses located in higher tiered counties to qualify for the larger tax credits available to lower tiered counties.  Current Georgia law requires the commissioner of the Department of Community Affairs to “prescribe redesignation procedures” for business enterprises that plan “significant expansion” in Georgia.  The RBC is asking these procedures be provided to the commissioner of the Department of Economic Development for dissemination to Economic Development Authorities and Chambers of Commerce statewide.

This Week’s Legislative Calendar

The Georgia General Assembly has completed twenty one legislative days, or over half of the 2012 legislative session.  Nineteen legislative days remain in the 2012 legislative session.  The legislature is in recess Monday, February 20^th and will be in session Tuesday through Friday, February 24, which will be the 25^th legislative day.

Cross-over day, the day that legislation must pass one legislative body for it to be considered by the other legislative body, is the 30^th legislative day, which will be on or shortly after March 6, 2012.  Every day during the next two weeks will be critical for any legislations potential passage during this year’s legislative session.

New GDOT Commissioner Chosen

Keith Golden, a 25-year GDOT employee and Georgia Tech graduate, was chosen as the new GDOT Commissioner, replacing Vance Smith who stepped down last year.  Mr. Golden had been serving as interim GDOT commissioner.

Have a great week.

The Regional Business Coalition of Metropolitan Atlanta (RBC) is an organization of over a dozen of the largest and most active Chambers of Commerce throughout the metro Atlanta region.  RBC member chambers represent over 15,000 member companies who employ millions of metro Atlanta residents.  The RBC’s primary goal is to represent the interests of RBC Chamber members on regional public policy issues impacting our transportation, water and air quality and to advocate for solutions that improve metro Atlanta’s quality of life and economic vitality.  This weekly update is prepared for RBC member Chambers by Terry Lawler, RBC Executive Director, who can be contacted at tlawler@atlregionalbusiness.org or 770-310-1864.

Legislation on Jobs Tax Credits introduced as part of Governor’s Competitive Initiative

Legislation that was a portion of Governor Deal’s “Competitive Initiative” efforts was introduced this week in the House.  HB 868 makes many significant improvements to the qualifying factors and value of jobs tax credits for new and expanded businesses throughout Georgia and should help businesses create more jobs for Georgians.

Over the past year, the RBC has been in informal discussions with the Department of Economic Development to address job growth in metropolitan counties, which are generally Tier 3 and Tier 4 counties and therefore don’t qualify for substantial jobs tax credits under Georgia law.  While the draft legislation strongly encourages growth in Tier 1 and Tier 2 counties, significant unemployment and competitiveness issues continue to be faced by metropolitan cities and counties.  In fact, the unemployment rate in many metropolitan counties exceeds the state’s average unemployment rate.

The draft legislation does not address instances where job losses in metropolitan counties can have an equal or greater negative impact than a plant closing in a Tier 1 or Tier 2 county.  The legislation also does not address the need to match jobs tax credits for new or expanding businesses in metropolitan counties who are in competition for new jobs with other states.  The department has indicated a willingness to discuss amending the legislation in an effort to address these concerns.

Compared to 2011 the 2012 Legislative Session is Getting off to a Quick Start

This year’s 14^th legislative day was February 3^rd.  Because of last year’s snow storm, the 14^th legislative day wasn’t until February 15^th. 

So far this session the House has introduced 589 bills and resolutions compared to just 541 last year.  The Senate has introduced 270 measures this year compared to 251 last year.  

Very few pieces of legislation have made it to either floor for a vote.  All 2011 legislation is treated like new legislation in the committees and must go through another round of committee hearings prior to being considered in 2012.

This Week’s Legislative Calendar

The Georgia General Assembly has completed fourteenth legislative day.  Twenty six legislative days remain in the 2012 legislative session.  This week’s legislative days will be Monday February 6th (15^th legislative day), Tuesday (16^th), Wednesday (17^th) and Thursday (18^th legislative day).

Have a great week.

The Regional Business Coalition of Metropolitan Atlanta (RBC) is an organization of over a dozen of the largest and most active Chambers of Commerce throughout the metro Atlanta region.  RBC member chambers represent over 15,000 member companies who employ millions of metro Atlanta residents.  The RBC’s primary goal is to represent the interests of RBC Chamber members on regional public policy issues impacting our transportation, water and air quality and to advocate for solutions that improve metro Atlanta’s quality of life and economic vitality.  This weekly update is prepared for RBC member Chambers by Terry Lawler, RBC Executive Director, who can be contacted at tlawler@atlregionalbusiness.org or 770-310-1864.

Legislature returns from Budget Week Recess, Sets 30 Day Calendar

After last week’s joint House and Senate budget committee hearings, the Georgia General Assembly returned to regular business this week.  On Monday, the House adopted their legislative calendar through the 30^th legislative day.  The 30^th legislative day is planned for Monday, March 5.  Since the length of the legislative session is 40 legislative days, the final day of the 2012 legislative session should be prior to April 1, 2012.

Governor’s Task Force on Transit Governance Releases Final Report

Governor Deal’s special Task Force on Transit Governance released their final report this week.  The report recommends goals and objectives for a Transit Governance Council to address transit needs in the 13 county metropolitan Atlanta “non-attainment area”.  The “non-attainment area” is a federal designation of those counties that don’t meet federal air quality standards. 

The Transit Governance final report also included language for draft legislation to accomplish the recommendations of the report.  The draft calls for a 35 member Transit Governance Council with 30 elected representatives from all 13 metro Atlanta non-attainment counties and 5 GRTA board members.  The draft also calls for coordination between existing transit operators of planning, construction, financing and management of transit operations.  The draft legislation also removes the 50/50 sales tax restrictions of MARTA’s use of sales taxes, after certain actions have been accomplished. 

The RBC has been in discussions with the governor’s office and legislative leaders and is coordinating efforts with all interested parties to perfect the legislative language.  According to published statistics, over 400 thousand people used transit services daily in the 13 county metro Atlanta non-attainment area.

Bill to invest approximately $1 billion in GDOT Funding Introduced

House Transportation Committee chairman Jay Roberts and Appropriations chairman Terry England introduced House Bill 806 to address a glitch in state law that has kept approximately $1 billion in federal motor fuel funds from being spent. Existing Georgia law required all funds to be spent on a project in the year the expense occurred.  However, because federally funded highway construction projects are financed with an expense reimbursement methodology, some federal reimbursement funds may not be received until years after work on a project is completed.  This legislation will establish a “Mandatory Appropriation Carryover Program” where the reimbursement funds must reside.  There are also protections in the proposed law where these funds can only be spent for activities or programs already approved and appropriated by the legislature. 

Legislative Calendar

The Georgia General Assembly has completed nine legislative days.  Thirty one (31) legislative days remain.

Have a great week.

The Regional Business Coalition of Metropolitan Atlanta (RBC) is an organization of over a dozen of the largest and most active Chambers of Commerce throughout the metro Atlanta region.  RBC member chambers represent over 15,000 member companies who employ millions of metro Atlanta residents.  The RBC’s primary goal is to represent the interests of RBC Chamber members on regional public policy issues impacting our transportation, water and air quality and to advocate for solutions that improve metro Atlanta’s quality of life and economic vitality.  This weekly update is prepared for RBC member Chambers by Terry Lawler, RBC Executive Director, who can be contacted at tlawler@atlregionalbusiness.org or 770-310-1864.