Brock Clay Weekly Report, Sine Die 2009

Tuesday, April 7, 2009

Brock Clay Capitol Report, Sine Die Edition

JOBS Act: Several weeks ago, Rep. Tom Graves (R – Granger) introduced the Jobs Opportunity and Business Success (JOBS) Act of 2009. This legislation, in the form of House Bills 481 and 482, would do the following: create and preserve jobs by phasing out the corporate income tax; eliminating the sales tax deposit; eliminating the state inventory tax and giving businesses a $500 credit toward unemployment insurance tax and $2,400 income tax credit for each eligible employee hired. House Bill 482 passed last week, and the conference committee report on House Bill 481 was adopted in the waning hours of Day 40.

Taxes: This session began with a strong focus on taxes and in a tough economy, providing consumers with savings in their property taxes. However, after this fiscal year, the homeowner’s tax relief grant will no longer be funded. Legislation to double the homeowner’s exemption failed. Attempts to end the corporate income tax and the annual ad velorum tax on cars also failed. Finally, a bill to provide tax credits to first time homebuyers in the next six months passed, but the grant will now only total $1,800. The amount as proposed was $3,600.

Transportation: The transportation battle under the Gold Dome ended with a bang, but in a way far removed from the result many businesses and commuters desired. The largest single issue facing the Legislature this session has been transportation. There have been three main issues at stake this year: first, funding for Georgia’s challenged transportation infrastructure; second, the governance structure that controls how Georgia’s transportation funding works; and finally, the manner in which MARTA is allowed to use their revenue and distribute it evenly among capital and operations. There have been several major pieces of legislation involved in those issues:

- The Senate passed Senate Bill 39 and Senate Resolution 44 (sponsored by Senate Transportation Chairman Jeff Mullis, R – Chickamauga), proposing a TSPLOST arrangement to fund transportation improvements in Georgia. This proposal would raise approximately $10 billion.

- The House passed House Bill 277 and House Resolution 206 (sponsored by House Transportation Chairman Vance Smith, R – Pine Mountain), proposing a statewide 1% sales tax to fund transportation improvements in Georgia. This proposal would raise approximately $22 billion, and contains a long list of projects across the state of Georgia that would be eligible to be funded by those new dollars.

- The Senate has also passed Senate Bill 200, a proposal to create a new State Transportation Agency, a new agency that would merge the State Road and Tollway Authority, the Georgia Regional Transportation Authority, and take over the planning and funding functions of the Georgia Department of Transportation.

- Finally, Senator Doug Stoner (D – Smyrna) sponsored Senate Bill 120, which would eliminate the requirement that MARTA use 50% of their revenue on capital expansion.

This week, the conference committee on transportation funding met about eight times beginning Thursday morning. The Senate conferees were Senate Transportation Chairman Jeff Mullis (R – Chickamauga), Senator John Wiles (R – Marietta), and Senator Kasim Reed (D – Atlanta). The House conferees included House Transportation Chairman Vance Smith, Rep. Donna Sheldon (R – Alpharetta), and Rep. Calvin Smyre (D – Columbus). The conferees met every few hours towards the end of the week, asking questions and presenting alternative proposals. Ultimately, the conferees were not able to come to an agreement and the transportation funding push died at about 11:15 PM on Day 40.

MARTA General Manager Beverly Scott spent much of Thursday and Friday at the State Capitol, working to ensure the passage of legislation that would have eased restrictions on how the transit system can use revenue. Ultimately, that legislative measure stalled on the last day of session, leaving $65 million in MARTA’s capital reserves. Scott said her board now faces some tough decisions, one of which may be to stop MARTA’s service on Fridays.

The House passed a much amended version of Senate Bill 200 , an effort by the legislature to drastically reform the structure and processes used at the Georgia Department of Transportation (GDOT). The House version of the bill preserves the Georgia Department of Transportation as the lead transportation agency in the state of Georgia. The General Assembly will continue to elect the Board members of GDOT, who will be responsible for overseeing the planning and funding aspects of transportation in Georgia. The board would also continue to select the DOT Commissioner. The other key subordinates of the commissioner, however, would no longer be selected by the board. The bill also creates a new director of planning who would be appointed by the governor. The bill also grants the legislature the power to tightly manage the DOT’s budget – a privilege not previously enjoyed by the General Assembly. The bill passed out of the House Transportation Committee easily. The bill passed the House only after Speaker Glenn Richardson voted in favor of the legislation. A lot of controversy surrounded the vote on the bill because several influential House Republicans had to apply a lot of pressure to get the votes they needed to pass the bill and the vote was held upon until the requisite number of votes was met. The bill passed 91 – 84.

The legislation sat in the Senate until late Friday evening, when President Pro – Tempore Tommie Williams made a motion to agree to the House changes. It was during that debate that Senator Preston Smith (R –Rome), took to the well and gave a passionate speech about several emails he’d received from GDOT board member David Doss, emails that Smith interpreted as threatening. Smith used those emails to justify his vote for Senate Bill 200. Shortly after, Senator Steve Thompson (D – Atlanta), went to the well and accused Smith of presenting the information out of context. After the raucous debate, the legislation passed by a party line vote of 33 – 22.

Trauma Care: Representative Harry Geisinger (R – Atlanta) and Representative Tom Rice (R – Norcross) sponsored a trauma funding mechanism contained in House Bill 480. This legislation would eliminate the unpopular “birthday tax,” and also eliminate sales taxes on the purchase of automobiles. It proposes a new title fee capped at $2,000 for each transaction. Part of the proceeds of that system would be appropriated to the Georgia Trauma Care Network Commission, with that amount capped at $150 million. This bill passed the House by a vote of 133 – 39 and passed out of the Senate Finance Committee on Thursday afternoon. This legislation died on the floor of the Senate without a vote on Day 40.

Last week, the House Health and Human Services Committee passed out Senate Bill 156, sponsored by Senator Cecil Staton (R – Macon). This bill enhances the ability of the Trauma Commission to perform their duties, and also protects the ability of the Commission to only use the money for designated trauma operations. In the committee meeting, Rep. Fran Millar (R – Dunwoody) offered an amendment that would fund the trauma network by diverting the State’s .25 mil of the property tax to the trauma fund. This legislation died on the House floor without a vote on Day 40.

Last week, House Bill 160 passed the Senate and went to the Governor’s desk for a signature. The superspeeder legislation is expected to raise approximately $23 million each year for trauma.

Senator Greg Goggans worked diligently on Senate Resolution 277, which proposes an amendment to the Georgia Constitution adding a $10 surcharge on all car tag purchases. The proceeds of that surcharge would be used to fund Georgia’s trauma network. Last week, Senate Resolution 277 moved quickly through the House Ways and Means Committee. However, it died in the House Rules Committee.

DHR Reorganization: This week, a controversial legislative measure aimed at streamlining various agencies of the state government won final passage and went to the Governor’s desk for a signature. House Bill 228 reorganizes Georgia’s agencies into three new organizations: the Department of Behavioral Health and Developmental Disabilities, the Department of Community Health, and the Department of Human Services. The Department of Community Health will include all of the public health and long term care regulation programs of DHR. DHR will retain current programs including DFACs and Child Support Services.

Billboards: This week, a controversial measure to allow clear cutting in front of billboards on the State’s highways. The House voted down House Bill 164 in a bipartisan vote of 89 – 74. The Outdoor Advertising Association of Georgia was pushing the legislation, which would allow for billboard owners to remove up to 1.5 acres of trees in the public right of way in front of two sided signs. In return, they would be required to plant small trees or wildflowers in the cleared area. Scenic Georgia and the Garden Clubs opposed the legislation, and won a surprising victory on Friday. Directly after the vote earlier this week, a motion to reconsider passed 85 – 79. However, the legislation was never called for a second vote and died on the floor of the House.

...in other news...

At midnight on Legislative Day 40, State Senator Kasim Reed (D - Atlanta) announced his intention to run for Atlanta's next mayor...

This week, State Representative Rob Telheit (D -Smyrna) launched his campaign to become Georgia's next Attorney General, and Minority Leader Dubose Porter (D - Dublin) launched his gubernatorial campaign.

Stay tuned for additional Sine Die summaries later this week, and next week, Brock Clay's new feature, Legislator of the Week.

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