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April
11 , 2008
2008
Legislative Wrap-Up
The 2008 legislative session was one filled with rancor, finger-pointing;
and what began with high expectations ended with dismal results.
One of the great traditions of the last day, sine die night in the
Georgia Legislature, fell by the wayside on Friday, April 4, when
in the chaos and rancor of Day 40, the House adjourned abruptly.
Custom dictates that what is supposed to happen is for the center
doors of both chambers to be opened wide so that the presiding officers
of each body can see each other across the rotunda. Then they pick
up their podium telephones and get each other on the line. With
telephones to their ears, they raise their gavels at the same time
and both shout “sine die” simultaneously as shredded
bills are tossed into the air and come showering down in a multi-colored
shower of confetti.
However, the lack of cooperation that is to be the hallmark of this
session had this custom falling by the wayside, and the Senate worked
on until midnight.
TAXES
Speaker Glen Richardson wanted property tax relief and Lieutenant
Governor Casey Cagle wanted income tax relief. In the end neither
effort was successful, and a number of bills, including GRA-backed
relief from inventory taxes, fell victim to the “tax wars”.
One bright spot, the sales tax holidays were renewed and expanded.
Tax relief for private label credit card debt was also secured.
All bills must be signed by the governor and we will encourage him
to sign all but HB 89, the Guns in The Parking Lot, bill, which
while greatly improved by GRA’s efforts, remains a bad piece
of legislation.
TRANSPORTATION
A plan to allow voters to adopt a 1-cent sales tax to pay for transportation
improvements failed in the session's final hours. It passed the
House, but failed by three votes to get the two-thirds majority
in the Senate.
EDUCATION
Earlier this year the Georgia Supreme Court ruled that money raised
through school property taxes must be used to educate children cannot
be handed over to developers for other purposes. However, a bill
passed by both houses will place this issue on the November ballot.
SUNDAY SALES OF ALCOHOL
Again, a deliberate, hard-fought battle was waged to end the hypocrisy
surrounding the sale of alcohol on Sundays. In the end, the Governor’s
promise to veto any bill that would allow wine and beer to be sold
on Sundays by merchants, proved to be enough to cause the legislation
to stall in the House on the final day.
GRA LEGISLATIVE MISSION
Guided by a free market philosophy, GRA works to support bills which
will relieve the tax and administrative burdens on the state’s
retail merchants. We generally oppose any tax increases and efforts
to expand regulations. We stand up for employers’ rights and
lower taxes. To accomplish this we enlist sponsors to carry retail-friendly
legislation, but spend most of our efforts working against the passage
of bills which are detrimental to your interests.
GRA does present itself as the champion for Georgia’s retail
merchants and, as such, works to educate every legislator on the
value of the state’s retail industry.
Having said that, as you read through the summaries below, please
remember that the legislative process is an imperfect one, filled
with compromise, and trade-offs are sometimes necessary. We do our
very best to represent you well. We hope that you will agree that
we have met the challenge again this year.
Significant Bills Passed
Organized Retail Theft
HB 1346, Organized Retail Theft (ORT).
After a lot of work, this bill was passed on the 39th day of the
forty-day session. For the first time Georgia has legislation for
an $82 million problem – the theft of retail goods by professional
criminals. The bill defines ORT and allows theft to be aggregated
over 180 days.
http://www.legis.ga.gov/legis/2007_08/fulltext/hb1346.htm
Expanded Sales Tax Holidays
HB 948, Sales Tax Holidays, provides
for the 2008 sales tax holidays. The back-to-school sales tax holiday
would be July 31st to August 3, 2008 and the Energy STAR sales tax
holiday would be October 2, 2008 to October 5, 2008.
http://www.legis.ga.gov/legis/2007_08/fulltext/hb948.htm
In addition Part III, Section 3-1 of SB
342, The Reservoir Bill, the final bill
past this year at 11:50 on Friday night, contains language which
expands the Energy Star sales tax holiday to include the purchase
of water efficient products carrying the “Water Sense”
rating by the US EPA with a sales price of up to $1,500 for noncommercial
or personal use.
http://www.legis.ga.gov/legis/2007_08/fulltext/sb342.htm
HB 367, Generic Drugs Health Insurance Coverage,
which will require that health insurance plans provide coverage
for non-formulary drug products for a ten-day period, in order to
allow time for the pharmacist or patient to contact the physician
for approval of an alternate drug product.
http://www.legis.ga.gov/legis/2007_08/fulltext/hb367.htm
HB 977, Tax Exemption for High Deductible Health
Plan Premiums, will allow an income tax exemption for
certain high deductible health plans sold or maintained in connection
with a health savings account.
http://www.legis.ga.gov/legis/2007_08/sum/hb977.htm
HB 1280, Alcoholic Beverages; Regional Economic
Assistance Projects, gives licensees at certain entertainment
and/or sports venues the right to sell alcoholic beverages for consumption
on premises.
http://www.legis.ga.gov/legis/2007_08/fulltext/hb1280.htm
SB 383, Georgia Affordable HSA Eligible High Deductible
Health Plan, promotes the use of HSA’s by having
the Commissioner of Insurance adopt policies to promote, approve,
and encourage health savings account eligible high deductible plans
in Georgia.
http://www.legis.ga.gov/legis/2007_08/fulltext/sb383.htm
SB 418, Georgia Fire Safety Standard and Firefighter
Protection Act, will prohibit the sale of cigarettes
unless the manufacturer of those cigarettes certifies that the cigarettes
meet certain standards as having reduced cigarette ignition propensity
which retard “full-length burns.”
http://www.legis.ga.gov/legis/2007_08/fulltext/sb418.htm
Bills Passed with GRA Improved Language
HB 89, Carrying and Possessing Firearms,
would have allowed those with a concealed carrying permit to carry
a gun onto private property, including a work place. However, GRA
was successful in having the language changed to include owners
and lessees of property in the group which can control access to
property.
The bill states that no employer, property owner, or property owner’s
agent may be held liable in any criminal or civil action for damages
resulting from or arising out of an occurrence involving the transportation,
storage, possession, or use of a firearm, including, but not limited
to, the theft of a firearm from an employee´s automobile,
unless the employer knew that the person using such firearm would
commit such criminal act on the employer´s premises.
The bill will also allow a person licensed to carry a firearm to
carry a firearm, in all state parks, historic sites, and recreational
areas, including all publicly owned buildings located in such parks,
historic sites, and recreational areas and in wildlife management
areas, as well as into restaurants and onto public transportation.
http://www.legis.ga.gov/legis/2007_08/fulltext/hb89.htm
HB 130, Credit File Freeze, was amended
on floor to set credit file freeze and thaw fees at $3 (compared
to $10 in the un-amended bill). Other provisions including the need
for a certified letter for the initial freeze request and a 10-business-day
period for receipt of a pin from the credit reporting agency were
kept in place. The act would be effective August 1, 2008, if passed
by the Senate. GRA lobbied for, and got a 15 minute thaw to allow
a customer to establish instant credit or to qualify for an emergency
purchase.
http://www.legis.ga.gov/legis/2007_08/fulltext/hb130.htm
Bills Defeated
HB 276, Biometric Information Protection Act,
would have prohibited an employer from using biometric information
for identification purposes.
http://www.legis.ga.gov/legis/2007_08/fulltext/hb276.htm
HB 447, Real Estate Investment Trusts,
would have resulted in raising taxes for some retailers utilizing
real estate investment trusts to manage their property.
http://www.legis.ga.gov/legis/2007_08/sum/hb447.htm
HB 901, Parent Protection Act, would
have required employers to provide employees with time off (1) to
attend a medical appointment for the employee or the employee´s
spouse or child; (2) to accompany an elderly relative to a medical
appointment; or (3) to attend a school conference for a child of
the employee.
http://www.legis.ga.gov/legis/2007_08/search/hb901.htm
HB 912, Limiting the Sale of Alcohol,
would regulate the sale of alcoholic beverages for consumption on
the premises in any county or municipality to make it unlawful to
sell alcohol for consumption of the premises from 2:30 A.M. until
9:00 AM each day of the week and weekend.
http://www.legis.ga.gov/legis/2007_08/fulltext/hb912.htm
HB 915, “Second Amendment Protection Act
of 2008”, would have expanded gun rights and
made wide changes to the state’s gun laws.
http://www.legis.ga.gov/legis/2007_08/fulltext/hb915.htm
HB 923, Providing for Two Insurance Choices,
would have required insurers offering insurance to small businesses
(defined by the bill as from 1 to 99 employees) to offer at least
two choices of approved accident and sickness insurance products
to health insurance consumers.
http://www.legis.ga.gov/legis/2007_08/fulltext/hb923.htm
HB 940, Prohibiting Microchip Implantation,
would have made it a civil crime with a penalty of up to a $10,000
fine to require a person to have a microchip implanted, other than
on a voluntary basis.
http://www.legis.ga.gov/legis/2007_08/fulltext/hb940.htm
HB 952, Storage of Scrap Tires, would
have instituted tighter controls of the storage of scrap automobile
tires.
http://www.legis.ga.gov/legis/2007_08/fulltext/hb952.htm
HB 973, Georgia Trauma Hospital Support Act of
2008, would have placed a $1 fee on telephone and wireless
service bills and would have required retailers to collect those
fees for out-of-state wireless phone service provides was as TracFone.
http://www.legis.ga.gov/legis/2007_08/fulltext/hb973.htm
HB 1028, Wire Transmission Fee Bill,
would have required retailers to collect a 2 percent fee on wire
transfers, money orders and similar instruments to fund trauma care.
http://www.legis.ga.gov/legis/2007_08/fulltext/hb1028.htm
HB 1138, Tax on Moist Snuff, would have
added an excise tax of 15¢ per ounce of moist snuff.
http://www.legis.ga.gov/legis/2007_08/fulltext/hb1138.htm
HB 1042 (Substitute Bill), Prohibiting Prescription
Substitution in Specific Cases, would have prohibited
a pharmacist from substituting prescription for a patient undergoing
immunosuppressive therapy without prior consent of the patient and
prescribing physician. This bill is targeted primarily at epilepsy
medications.
http://www.legis.ga.gov/legis/2007_08/sum/hb1042.htm
HB 1150, Defining Distributions for “S”
Corporations, would cost some GRA members more Georgia
income tax by defining ’Distribution credited’ as a
recognition or assignment of interest in proceeds or property of
a partnership.
http://www.legis.ga.gov/legis/2007_08/fulltext/hb1150.htm
HB 1153, Consent Agreement for Nonresident Shareholders,
would have required nonresident shareholders of a Georgia Subchapter
’S’ corporation to execute a consent agreement to pay
Georgia income taxes on their portion of the corporate income, effective
January 1, 2008.
http://www.legis.ga.gov/legis/2007_08/fulltext/hb1153.htm
HB 1154, Requiring Businesses to File Electronically,
would have required retailers to file all returns, reports, or other
documents electronically to the Commissioner of Revenue.
http://www.legis.ga.gov/legis/2007_08/fulltext/hb1154.htm
HB 1155, Withholding Taxes on Non-resident Partners,
would have revised certain provisions regarding withholding tax
on distributions to nonresident members of partnerships, Subchapter
"S" corporations, and limited liability companies.
http://www.legis.ga.gov/legis/2007_08/fulltext/hb1155.htm
HB 1197, Increasing the Excise Tax On Cigarettes
by $1, would have raised the state tobacco tax from
37 cents per pack to $1.37.
http://www.legis.ga.gov/legis/2007_08/sum/hb1197.htm
HR 1226, One Cent Tax for Transportation,
would have called for a constitutional referendum on increasing
the general state-wide sales and use tax by 1 percent. http://www.legis.state.ga.us/legis/2007_08/fulltext/hr1226.htm
SR 845, One Percent Local Option Sales Tax,
would have added a one percent local option sales tax to be used
for transportation.
http://www.legis.ga.gov/legis/2007_08/fulltext/sr845.htm
SR 71, Creation of a Alcohol Regulation Senate
Study Committee, would have created the Senate Study
Committee on Alcohol Regulations as a way of side-stepping the Sunday
sales issue.
http://www.legis.ga.gov/legis/2007_08/search/sr71.htm
SB 338, Prohibiting Prior Authorization for Prescriptions,
would have precluded the practice of prior authorization of prescriptions
by insurance carriers. Generally, this is done to require brand
name drugs rather than generic equivalents.
http://www.legis.ga.gov/legis/2007_08/fulltext/sb338.htm
SB 403, Prompt Payment of Wages Upon Separation,
would have required for the prompt payment of wages to an employee
following his or her resignation or discharge no later than or at
the next regular pay period for such employee.
http://www.legis.ga.gov/legis/2007_08/fulltext/sb403.htm
SB 457, Georgia MethCheck Data Base,
would have established the Georgia MethCheck data base to electronically
record the identity of those individuals purchasing certain medications
used for the production of methamphetamine, including pseudoephedrine.
http://www.legis.state.ga.us/legis/2007_08/pdf
/sb457.pdf
SB 509, Local Collection of Sales and Use Taxes,
would have allowed counties and cites the option of collecting their
own sales and use taxes, rather than have the Department of Revenue
collect the taxes and remit such taxes to the appropriate local
government
http://www.legis.ga.gov/legis/2007_08/fulltext/sb509.htm
Bills Lost
HB 897, Tax Credit for Energy Efficient Appliances,
would have provided an individual tax credit for the purchase price
of certain energy efficient appliances.
http://www.legis.ga.gov/legis/2007_08/fulltext/hb897.htm
HB 946, Requiring High Efficient Plumbing Fixtures,
would have required that the construction or sale of private and/or
commercial properties contain high efficient faucets, toilets, urinals
and shower heads were installed and would require replacing old
fixtures with high efficiency models.
http://www.legis.ga.gov/legis/2007_08/fulltext/hb946.htm
HB 947, Income Tax Credit for Replacing Plumbing
Fixtures, would have made it a misdemeanor to install
non-complying fixtures in any building and would have required that
each manufacturer selling products in Georgia offer high-efficiency
water closets and urinals
http://www.legis.ga.gov/legis/2007_08/fulltext/hb947.htm
HB 956, Appeal of Zoning Judgments and Rulings,
would have provided for direct appeal of zoning decisions.
http://www.legis.ga.gov/legis/2007_08/fulltext/hb956.htm
HB 1186, Subsequent Injury Trust Fund,
will require that each insurer and self-insurer make payments, on
a pro rata basis, to the fund in an amount equal to that proportion
of 175 percent of the total disbursement made from the fund during
the preceding calendar year, but not to exceed $100 million after
January 1, 2010.
http://www.legis.ga.gov/legis/2007_08/fulltext/hb1186.htm
HB 1221, Defining Health Insurance Contract Group
as Two, would have created the Georgia Health Marketplace
Authority and would have redefine as two (currently 100) the number
of employees needed for providing life, health, disability, retirement,
or similar benefits.
http://www.legis.ga.gov/legis/2007_08/fulltext/hb1221.htm
HB 1244, Income Tax Credit For Teleworking.
On the final night time ran out on this bill which would have extended
the period of time for teleworking credits to January 1, 2012.
http://www.legis.ga.gov/legis/2007_08/sum/hb1244.htm
HR 1246, The Property Tax Reform Amendment. As tempers
flared this bill was lost on the final night as well. It would have
begun eliminating the property tax on personal-use cars on July
1, 2009. Half would be removed between then and June 30, 2010, and
the other during the next 12 months. When fully implemented, drivers
would save $750 million. The bill would have also capped residential
and commercial assessments at 2007 levels, plus a 2% and 3% annual
acceleration clause respectively. http://www.legis.ga.gov/legis/2007_08/fulltext/hr1246.htm
HR 1038, Ad Valorem Inventory Tax Relief for Furniture,
proposed an amendment to the Constitution to authorize any county
or municipality to hold a referendum to exempt inventories of retail
furniture businesses from ad valorem taxes.
http://www.legis.ga.gov/legis/2007_08/fulltext/hr1038.htm
HB 1029, Economic Stimulus Tax Break,
would have provided a one-time relief for Georgians from any tax
liability related to the checks received as part of the Federal
Economic Stimulus measure.
http://www.legis.ga.gov/legis/2007_08/fulltext/hb1029.htm
HR 1037, Ad Valorem Inventory Tax Relief,
proposed an amendment to the Constitution so as to authorize any
county or municipality to hold a referendum to exempt inventories
of retail businesses from ad valorem taxes.
http://www.legis.ga.gov/legis/2007_08/fulltext/hr1037.htm
HB 1140, Income Tax Credit For Qualified Water
Efficient Products, would have provided a $250 tax
credit for the purchase of water efficient products designated by
the United States Environmental Protection Agency as meeting or
exceeding the requirements of the agency´s Water Sense designation.
http://www.legis.ga.gov/legis/2007_08/fulltext/hb1140.htm
HR 1141, Income Tax Credit For Qualified Water
Efficient Products, would have provided a tax credit
of up to $500 for the purchase of water efficient products designated
by the United States Environmental Protection Agency as meeting
or exceeding the requirements of the agency´s Water Sense
designation.
http://www.legis.ga.gov/legis/2007_08/fulltext/hb1141.htm
HB 1210, Deduction for High Deductible Health
Plans, would have provided for an income tax deduction
for high deductible health plans established and used with health
savings accounts.
http://www.legis.state.ga.us/legis/2007_08/sum/hb1210.htm
HB 1278, Low Cost Health Insurance,
would have authorized health care insurers to offer health benefit
plans which are not subject to limitations on level of reimbursement.
http://www.legis.ga.gov/legis/2007_08/fulltext/hb1278.htm
SB 439, Prohibiting Fees for Pawn Brokers,
would have prohibited municipalities, counties, or local governments
from enacting local laws or ordinances that require the payment
of any fees or taxes related to a pawn transaction or purchase.
http://www.legis.ga.gov/legis/2007_08/fulltext/sb439.htm
SB 472, Anti-cigarette Smuggling Act,
would have required the Department of Revenue to utilize appropriate
new technology to implement a digital based cigarette stamp process.
http://www.legis.ga.gov/legis/2007_08/fulltext/sb472.htm
Bills Passed Which Could Harm Retail Businesses
HB 1132, Environmental Covenants Convey With Property,
will require that environment covenants convey with property.
http://www.legis.ga.gov/legis/2007_08/fulltext/hb1132.htm
SR 996, Authorization To Use School Tax Funds
For Redevelopment, calls for a referendum proposing
an amendment to the Constitution which would authorize counties,
municipalities and local boards of education to use tax funds for
redevelopment purposes and other non-education-related programs.
http://www.legis.ga.gov/legis/2007_08/fulltext/sr996.htm
Other Bills Not Passing
SB 351, State Water Plan, would
have provided for a joint State-wide Water Planning Oversight Committee.
http://www.legis.ga.gov/legis/2007_08/sum/sb351.htm
SB 404, Georgia Health Marketplace Act,
would have created a website where Georgians could shop for health
insurance plans and compare deductibles, co-payment requirements,
benefits and premiums. If consumers can find a plan that fits their
needs, they can purchase the policy with pre-tax dollars.
http://www.legis.ga.gov/legis/2007_08/fulltext/sb404.htm
HB 798, Georgia Pharmacy Practice Act,
would regulate and license pharmacy benefits managers through the
office of by the Commissioner of Insurance
http://www.legis.ga.gov/legis/2007_08/fulltext/hb798.htm
Thank you.
John C. Heavener, MSM, CAE
President
johnh@georgiaretail.org
Telephone – 770-484-3449, ext. 21
Fax – 770-484-5727
Georgia Retail Association
About GRA: The Georgia Retail Association, with
membership that comprises all retail formats and channels of distribution
including department, specialty, discount, catalog, Internet, independent
stores, and grocery stores has been serving the state’s business
community since 1961. The Georgia Retail Association represents
an industry with more than 71,300 retail establishments, and more
than 715,000 employees - about one in five of Georgia’s workers
- and 2004 sales of $115.2 billion.
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