2010 Legislative Session, Week 4

Property Taxes

For much of last year, Senate Majority Leader Chip Rogers (R - Woodstock) held meetings and public hearings in an effort to design a legislative package to reform what he has deemed Georgia's "antiquated" property tax system. On Monday, Rogers finally introduced SB346, a 47-page bill that makes more than 40 changes to Georgia's current property tax code. Rogers stated that the changes would give homeowners more power, and include the following:

- The ability to file appeals on your property taxes all year
- Insuring that an annual notice of assessment is delivered for every property
- Requiring uniformity in notices and forms
- Requiring counties to offer discounts for early payments and payment plans for others
- Requiring action by assessors within a specified period of time in the case of an appeal
- Requiring a unanimous vote by the Board of Equalization if assessed values are to increase

After discussing property tax reform with various parties, Rogrs believes there will be agreement on legislation which can be passed this year. Specifically, some organizations which many would ordinarily assume would be opposed to this type of legislation, have described the process as amenable and very forthright, citing Rogers as flexible and easy to work with.

Transportation

Last week, the Board of the Georgia Department of Transportation (GDOT) voted to require GDOT to move to an accrual accounting system by June 30, a move many have criticized as unconstitutional.

Thursday afternoon, the Senate Transportation Committee and Appropriations Subcommittee on Transportation called a special meeting to hear presentations from GDOT Board Chairman Bill Kuhlke regarding GDOT's move. Kuhlke, who opposed the Board’s action during the vote, defended them as the Board Chair and explained the Board's intent as simply their best effort to put projects in the pipeline as quickly as possible. Kuhlke faced scathing questioning and statements from numerous committee members, who all contended that the Board’s actions flew in the face of the legislative process. Most members of the Senate leadership had previously signed onto Senate Resolution 821, a constitutional amendment that will clarify GDOT’s ability to use such accounting practices. The signers included Senate Majority Leader Chip Rogers (R - Woodstock), Senate President Pro Tem Tommie Williams (R - Lyons), Senate Transportation Chairman Jeff Mullis (R - Chickamauga), and former Senate Transportation Chairman Steve Thompson (D - Marietta). Members of Georgia’s State Auditor’s Office, the state’s bonding organization, and General Assembly expressed concerns about the common sense and constitutionality of the Board’s actions.

This afternoon, the GDOT Board met on a special called conference call to discuss the events of the week and specifically what took place at the Capitol yesterday. Board Member David Doss was the only Board member present in Atlanta. The remaining Board members joined via conference call with the exception of Sidney Ross, who was unavailable. Board Chairman Bill Kuhlke opened the meeting by summarizing his meetings at the state Capitol on Thursday, and stated that he felt strongly that no one in the legislative or executive branch was supportive of the Board’s motion on accounting changes. In fact, Kuhlke stated, he saw disbelief and some anger. Rudy Bowen and Steve Gooch both concurred with Kuhlke’s summation, but Gooch added his feeling that the General Assembly was strongly behind giving GDOT the ability to change their accounting methods, but that they simply disagreed with the method and timing. Kuhlke followed up with a statement that he hoped to avoid any legislative action that might have a negative effect on the Board by once again requesting that the Board reverse their motion from last week. Brandon Beach subsequently offered a motion to rescind the Board’s instructions to the treasurer on accounting changes and withdraw their written request for clarification to the Attorney General’s office. He justified his motion by stating his strong conviction that the General Assembly fully intended to legislatively grant the ability to use accrual accounting methods via Senate Resolution 821, being carried by Senator David Shafer (R - Duluth). Steve Gooch seconded the motion. Kuhlke followed the motion up by telling the Board that based on conversations he’d had with Perdue’s chief of staff Ed Holcombe , he felt very strongly that the Governor would be supportive of a legislative attempt to address the accrual accounting issue. After some discussion clarifying the implications of the Board’s initial motion last week, the motion passed with 9 favorable votes. The meeting concluded with a pointed statement from Emory McClinton that he hoped that as the Board had rescinded their position, that Governor Sonny Perdue would also rescind his position and allow SR 821 to continue to move through the legislative process.

Metro Atlanta Chamber President Sam Williams went on the record this week stating his confidence that a transportation funding solution would be passed during the 2010 legislative session.

"Every year for more than seven years, we have been pushing for transportation funding approval. We are more optimistic now than we have ever been that a regional transportation referendum will be held,” Williams said.

The Governor's office continues work on a proposal that would add $300 million annually in bond revenue to the general fund for a specific list of projects during the next 10 years. Most of the projects will involve completing the Governor's Road Improvement Program (GRIP) and the creation of freight corridors around the state. Additionally, the legislation would set up a statewide SPLOST vote in the 12 Regional Commissions (RCs) on a specific list of projects within that region. The vote would be held statewide on a specific day in 2012; however, the results of the vote within each RDC would stand alone. This proposal closely mirrors a legislative proposal presented several years ago, and elements of the current proposal have the support of various members of the General Assembly and executive branch.

Also on Thursday, Senator Doug Stoner (D - Smyrna) introduced a transportation plan on behalf of the House and Senate Democratic Caucus'. Stoner’s constitutional amendment would create a transportation SPLOST within newly defined tax districts, requiring 50% of the funds raised to be spent on transit within the metro Atlanta region. An exception is included for DeKalb and Fulton counties, who currently have a one-cent sales tax to fund MARTA. The legislation includes an opt-out mechanism, and would phase the remaining "fourth penny" of the gas tax (which currently goes to the state's general fund), into a special transportation fund for appropriation by the General Assembly. This would all take place in 25% increments over a four-year period. This amount is approximately $150 million each year, depending on the amount of motor fuel tax collected that year. According to some working on transportation policy, this legislation is not a hard-and-fast partisan solution, but rather an opportunity for the Democratic Caucus to “ante up,” express their continued concern and interest in the issue, and ensure that they have a seat at the table for the ongoing discussions.

Another transportation bill is being floated by Rep. Tim Bearden (R - Villa Rica). Bearden has gained notoriety in recent years both as a close ally of new Speaker David Ralston (R - Blue Ridge) and a strong proponent of 2nd Amendment rights for Georgians. Bearden’s proposed transportation plan, while not yet introduced, focuses strongly on local control by creating 159 special tax districts that can pass special transportation SPLOSTs either individually or as groups. The unique aspect of the bill transfers the state’s portion of the 1/4 cent of the motor fuel tax back to the county in which it was collected to be used on local transportation priorities.

Telecom

Senator David Shafer, Chairman of the Senate Regulated Industries Committee, held the second hearing on an update version of HB 168 . Chairman Shafer stated that he new version of HB 168 is intended to modernize and re-vamp the Georgia's telecom and broadband regulations and laws. As Chairman Shafer presented the bill, he explained that he had worked exhaustively with industry representatives to create as much consensus as possible. Several third party groups, including Freedom Works, economist Dr. Roger Tutterow, and former PSC Commission David Burgess, spoke in favor of the bill. An amendment was added to the bill that would allow for cost reduction through an exemption for small telecom companies based in Georgia. The final version of the bill received unanimous support from the committee.

Ox Picks A Fight With Westmoreland

This week, statewide news outlets focused on a fascinating political story that truthfully began last spring. Until that point Lt. Governor Casey Cagle, a Republican from Gainesville, had widely been considered to be the front runner for the GOP's gubernatorial nomination. When Cagle withdrew his name from consideration due to health issues, Republican activists and operatives from across the state buzzed with rumors that Congressman Lynn Westmoreland, the former Republican leader in the state House, would enter the race. However, Westmoreland announced that he was staying in Congress and endorsing his fellow delegation member, Congressman Nathan Deal , for governor.

The new controversy stems from a call from Insurance Commissioner John Oxendine to Westmoreland in early December 2009. Westmoreland says Oxendine expressed his concern for Westmoreland should Westmoreland's role with a large insurance company, Southeastern U.S. Insurance, become public. The issue was Westmorleand's 18 month term on the advisory board of the now failing insurance company from 2001 to 2002. When Westmoreland assured Oxendine he had no concern, Oxendine in turn assured him the Congressman he would do his best to make sure Westmoreland's name was disassociated from the entire issue. A few months later, Westmoreland received a call from a Georgia Public Television reporter, asking questions about Westmoreland's exact role with Southeastern U.S. Insurance.

The reporter's source was none other than Commissioner Oxendine, who had previously assured Westmoreland he would keep his name out of the investigation.

Since that time, Westmoreland has gone public with the story, stating firmly he felt the entire situation was engineered as a "shakedown." Last week, Westmoreland's office received a call from another reporter who said that Oxendine told the reporter that he was investigating Westmoreland.

Apparently, Westmoreland's disbelief that Oxendine would imply that he was under investigation got a calm but pointed response from the second term Congressman - "That ain't right."

Sonny Perdue Wants Governors to Appoint Constitutional Officers

Today, Governor Sonny Perdue's floor leaders in the House and Senate began circulating a proposal that would make the Commissioner of Agriculture, Commissioner of Labor, Commissioner of Insurance, and State School Superintendent positions appointed by the governor rather than elected by the people. Apparently, Georgia is one of only five states that elects its labor commissioner, and one of only nine states that elects its agriculture commissioner. While some studies suggest that, contrary to the reasoning of Perdue's office, this move is not guaranteed to save the state money, the plan has garnered the vocal support of several prominent lawmakers, including Senate Majority Leader Chip Rogers (R-Woodstock), House Majority Leader Jerry Keen (R - St. Simons) and Rep. Melvin Everson (R - Snellville), who is currently running for labor commissioner.

Religious Right v. Senator Rene Unterman

Earlier this week, a firestorm began under the Gold Dome when Senator Rene Unterman (R - Buford), the only female Republican in the Georgia State Senate and an 11-year legislative veteran, introduced SB304. This legislation that would change current laws requiring child arrested for prostitution to be prosecuted as an adult. Unterman's legislation would instead allow children under the age of 16 (currently the age of consent in Georgia) to be diverted to therapy and counseling programs.

Her rationale is to question how a child under 16, who can not legally consent to sex, could then be prosecuted for consent to commit prostitution. Unterman vigorously defends the proposed legislation as a way to help these children out of such devastating lifestyles without forcing them to become even more psychologically broken. Unterman's most vocal opposition consists of various members of Georgia's social conservative community, including the Georgia Baptist Convention, the Georgia Christian Alliance and the Georgia Christian Coalition. Former state Senator Nancy Schaefer opined that the primary beneficiary of this legislation would be the "very profitable and growing pedophile industry."

While Unterman says she's working on a compromise with the opponents of this bill, many insiders under the Gold Dome wonder exactly why the influential social conservative movement would pick a fight over such a prolific issue. Unterman has long been one of their champions, responsible for legislation requiring doctors in Georgia to offer women a sonogram before having an abortion. She was also the sponsor of the legislation creating the "Choose Life" license plate tag.

Gary Black Hosts Fresh Horizons Event

This week, Gary Black kicked off his 2010 campaign for Georgia's Agriculture Commissioner with a crowded event at Turner Field's 755 Club. Over 300 guests attended the reception, raising over $200,000. The event was headlined by Senate Agriculture and Consumer Affairs Chairman John Bulloch (R - Ochlocknee) and House Agriculture and Consumer Affairs Chairman Tom McCall (R - Elberton). Black has served as the President of the Georgia Agribusiness Council for 20 years. Black and his wife, Lydia, own a farm in Commerce. Gary and Lydia have two children, Caroline and Ward, whom are both students at the University of Georgia.

Congratulations to Senator Hardie Davis (D - Augusta)

This week, State Rep. Hardie Davis (D - Augusta) won a special election runoff for Senate District 22, the seat formerly occupied by Ed Tarver. Tarver left last year to become the new U.S. attorney for the Southern District of Georgia. Davis defeated challenger Harold V. Jones with 55.4% of the vote. Davis is currently working to shorten the typically cumbersome and time consuming process for swearing in so he can get to work in the State Senate.

Today in History

February 5, 1631: Roger Williams emigrates to Boston.

February 5, 1900: The United States signs a treaty with Great Britain for the Panama Canal.

February 5, 1918: Stephen Thompson insures the first U.S. military aerial victory by shooting down a German plane.

February 5, 1972: Bob Douglas becomes the first African American elected to the Basketball Hall of Fame.

Have a great weekend,

SM

There are no simple solutions to working with the public or government. At Brock Clay, we integrate our services across lobbying, grassroots and public relations in order to create comprehensive solutions to complex problems. Whether we need to set up a town hall meeting, start a letter-writing campaign, work the halls of the Capitol or create a press release, we will find the right way to meet the challenge. As Harry Truman said, “It is amazing what you can accomplish if you do not care who gets the credit.”