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May
16 , 2008
GRA
Leadership Request for Relief on Interchange Fees Interchange Draws
Bipartisan Support
On Wednesday, June 14,2008 GRA Chair, Anthony Waters from Statesboro,
Immediate-Past-Chair, Tommy McFarland of Canton and President John
Heavener of McDonough, met with members of Georgia’s Congressional
delegation in Washington, DC to ask for support for HR 5546, a bill
to regulate interchange fees. That effort won the bipartisan support
from lawmakers ahead of a subcommittee hearing scheduled on the
issue on Thursday, May 15th.
Retailers and merchant groups have worked hard on the bill, which
would set up a three-lawyer board created by the Federal Trade Commission
and the Justice Department to regulate interchange fees, as help
for small businesses. As a result, support has been rising among
lawmakers on both sides of the aisle; 29 cosponsors have signed
on to the bill, with nearly equal support by Republicans and Democrats.
Lawmakers have raised questions about the fairness of interchange
before, but until recently they have largely deferred to the courts.
But Thursday's hearing by the House Judiciary antitrust task force
was the first since the legislation was introduced on March 11,
and is the first step toward trying to pass the bill.
The banking industry has joined forces with its longtime enemy,
credit unions, to slow or stop the bill's progress. The National
Association of Federal Credit Unions (NAFCU) and the Credit Union
National Association have joined a coalition of industry groups
opposing the legislation.
Dillon Shea, Director of Political Affairs at the NAFCU says that
the financial services groups still have the upper hand, but retailers
are not throwing in the towel.
Every member of Congress has a large number of small and large retail
merchants in their district. Even though the banks and credit unions
have a strong influence in DC, members of Congress are starting
to look at the issue more critically.
Retail merchants have kept momentum on their side, in part through
an aggressive marketing campaign targeting certain lawmakers' home
districts and Capitol Hill. An ad that ran the week on May 11, 2008
in Washington newspapers touted the House panel hearing and compared
interchange fees to the tax the British government imposed on tea
in the 18th century.
Senate Banking Committee Chairman Chris Dodd has said he will ask
the Government Accountability Office to request a study on how interchange
fees are set in credit card legislation he plans to introduce soon.
ACTION REQUEST: Please phone or fax your
Congressional Representatives asking them to support HR 5546, the
best market-based solution to the anticompetitive setting of interchange
fees by the credit card giants. We strongly encourage you to include
your own stories about how harmful Visa and MasterCard's unfair
and unreasonable practices are to your business.
Thank you all in advance for participating in this critical and
timely call to action. Please Click here
to contact your representative via email.
GRA Delegation seeks Congressional Support on Seven Issues
Waters, McFarland and Heavener asked Georgia’s representatives
and senators to:
1. Support transparency in the setting of credit interchange interchange
rates;
2. Approve the extension of HR 2936 which would extend the 15-year
depreciation on property improvements rather than reverting back
to the 39-year depreciation schedule previously allowed;
3. Focus on health care reform that would help retailers afford
to provide health insurance without pursuing nationalized medical
care;
4. Maintain a global view of trade issues in light of the consumer
driven economy in the US;
5. Support the Streamlined Sales Tax legislation, which would equalize
sales taxes on internet and brick-and-mortar retailers;
6. Adopt national standards for product safety;
7. Enact national organized retail crime legislation.
Two Bills Expand 2008 Sales Tax Holidays
Legislation signed Wednesday, May 14, 2008 by Governor Sonny Perdue
set the dates for the annual sales tax holidays.
The state will waive sales taxes from 12:01 AM on July 31 until
midnight August 3, 2008 on school supplies bought for classroom
use or classroom-related activities costing $20 or less per item.
The purchase of personal computers and accessories are exempt up
to $1,500 per transaction during that same period. Clothing and
footwear up to $100 per item will be exempt, but if the price exceeds
$100, then the item will be taxed at its full retail price.
The second Sales Tax Holiday will be held from 12:01 AM on October
2 until midnight October 5, 2008 for ENERGY STAR appliances and
products, and for the first time, products that earn the "WaterSense"
label for water efficiency.
Organized Retail Theft Bill Signed Into law
The Governor signed the Organized Retail Theft Bill into law on
Tuesday, May 13, 2008.
Health Insurance Legislation
On May 14, he signed two key pieces of legislation to address the
needs of Georgia’s uninsured patients, Senate Bill 383 and
House Bill 977. These two bills will insure more Georgia citizens
by expanding the availability and affordability of healthcare insurance.
HB 977 exempts insurers from state premium taxes on the sale of
high deductible health plans with a Health Savings Account (HSA),
while allowing deductions from state income taxes in the amount
equal to premiums paid to a HSA plan. The legislation will allow
HSA plans to be fast tracked for approval, exempt from the ban on
rebates and allow insurers to reward members that make healthy lifestyle
choices by enrolling in a HSA plan.
SB 383 focuses on rewarding and providing financial initiatives
to those making healthy living choices and participating in wellness
programs. The legislation has several provisions, including income
tax deductions and small business tax incentives to make HSAs, coupled
with health insurance, more affordable and available in the Georgia
insurance market.
Together, HB 977 and SB 383 include numerous tax benefits for working
families.
Seventeen Measures Get Perdue Veto,
Governor Sonny Perdue’s veto pen wasn't quite as heavy this
year as last year, when he nixed some 41 bills on May 15th. Just
seventeen bills were vetoed while 430 others were signed.
Here's the list and the Governor’s rationale:
House Bill 119 would have raised the statutory
compensation for Georgia’s Supreme Court justices, Court of
Appeals and Superior Court judges and District Attorneys.
“I have consistently expressed concern with raising judicial
officers’ salaries without tackling the well above-market
retirement benefits. In addition, I commissioned a review of judicial
pay in Georgia and found it in line with competitor states and various
counsel. The same review also confirmed that the judiciary’s
retirement benefits are far above market average. I have seen no
compelling data to the contrary. I disagree with those who have
suggested that current judicial pay has diminished the quality of
applicants for judicial office. Contrary to such critics, I continue
to be impressed with the quality and character of those who offer
themselves for public service in the State judiciary. I have full
confidence in the abilities of those I have appointed to the bench
as well as many of the candidates I have interviewed. These facts
lead me to conclude that no data demonstrates a need to raise judicial
compensation at this time.”
House Bill 373 would have addressed two
unrelated retirement issues: return to work and the transfer of
credible service between retirement systems.
“The bill would have allowed retired members of the Uniformed
Division of the Department of Public Safety to return to work full
time, which would run counter to the purpose of retirement benefits
and the choices made by those members who decided to retire. Whatever
perceived ills this legislation seeks to address should be assuaged
by my budget recommendation that includes funding for personnel
at the Department.”
House Bill 887 would have created a Master
Settlement Agreement Advisory Committee on Tobacco Use Prevention
and Control Programs within the Department of Human Resources.
“It is my view that the Advisory Committee duplicates the
duties of the Executive and the Legislative branches in representing
the voices of Georgians. I am not convinced that that various groups
named to the Committee lack access to Georgia’s policy makers.
I am also concerned that other groups might have been inadvertently
omitted or overlooked. I am confident that my Administration and
the General Assembly remain open to input from all Georgians on
this issue.”
House Bill 978 would have required that
law enforcement officers impound the vehicle of any person caught
driving without a valid driver’s license. While it would have
provide three exceptions – (1) persons driving with an expired
license; (2) first-time offenders that are under 17 years of age;
and (3) persons otherwise exempt from carrying a Georgia drivers’
license – it mandated impoundment in all other circumstances.
“To help address what I believe to be the concerns of this
legislation’s author, I have already signed Senate Bill 350,
which enhances the penalties for driving without a valid drivers’
license. However, because I believe that officers should have discretion
to determine when a vehicle should be impounded, and because I am
concerned about how this legislation will impact new residents to
Georgia, I cannot sign House Bill 978.”
House Bill 1027 would have allowed certain
offenders to take online driver improvement programs. It would have
maintained a fee of $75.00 for classroom courses and Internet-based
programs through May 31, 2008; subsequently, both online and classroom
courses may have charged no more than $75.00.
“I believe that the delivery of online classes should be less
expensive than classroom courses, which is not wholly reflected
in House Bill 1027. More importantly, I have serious concerns about
the integrity of a punishment that permits habitual violators of
Georgia’s traffic laws to take online courses.”
House Bill 1116 would have extended the
sunset on the Probation Management Act. It also would have raised
the statutory minimum amount that the State Treasury must reimburse
county governments for housing persons convicted of felonies from
$7.50 to $25.00, an over 333% increase, per day commencing on the
fifteenth day after receipt of sentencing documents. The latter
provision would not have been effective until 2010.”
House Bill 1129 would have provided sales
tax refunds for certain tourism related projects.
“Anytime the State uses public funds to subsidize companies
locating or expanding in Georgia, we have an obligation to insure
that the economic development returns exceed the investment. To
these ends, I have charged the Department of Economic Development
to use prudently the incentives available under existing law to
attract tourism companies to locate in Georgia. Given these principles,
I am not persuaded that the fiscal costs of this legislation outweigh
the potential benefits. First, the case has not been made that companies’
decisions to locate tourism attractions are based on tax incentives
rather than traffic, demographics and other objective factors. Georgia
will, therefore, likely not achieve the full benefit of net new
jobs that are expected from this legislation. Second, imposing an
incentive structure like the one in House Bill 1129 could result
in excessive application, and it could create a perceived entitlement
for new and existing Georgia companies. Put differently, codifying
potential tourism incentives sets a floor in negotiations, and I
believe it raises the expectation for additional incentives. It
is preferable to handle each project on a case-by-case basis, which
may include – with the approval of the General Assembly –
some of the types of incentives provided in House Bill 1129.”
House Bill 1217 would have provided a regime to license
Georgia’s home inspectors.
“I am cognizant and respectful of the fact that the advocates
for the legislation chose to use and were approved by the Georgia
Occupational Regulation Review Council (GORRC). I have come to believe
that GORRC review should be the initial threshold for the creation
of a new licensing board. I am also aware that the private sector
provides several, voluntary professional organizations to achieve
the goals of the legislation. It is my preference that the market
– not the State – regulate as many of our industries
as possible. Thus, in order to not supplant the good work of the
free market with taxpayer funds.”
House Bill 1249 would have provided for
several new tax credits related to solar energy companies establishing
or expanding a headquarters in Georgia.
“I support the location and expansion of clean energy companies
in Georgia, but the precedent set by this legislation is too costly
to be applied across the board. Specifically, House Bill 1249 provides
overly generous tax subsidies for (1) research and development;
(2) jobs; and (3) capital construction. It allows the tax credits
to be offset against withholding or sales and use taxes owed to
the extent the beneficiary’s tax credit exceed its taxable
income. The cost of this legislation, that currently benefits only
one company in Georgia, is over $4 million in State revenue.”
Senate Bill 196, like House Bill 311, would have expanded
the HERO scholarship program.
“I have already expanded the reach of the HERO program by
signing House Bill 311. The differences between this legislation
and the existing and expanded program make it difficult to administer.
Beyond this, the General Assembly appropriated no funds to implement
Senate Bill 196.”
Senate Bill 345 would have mandated Georgia’s
participation in the Interstate Compact on Educational Opportunity
for Military Children, which would assess unspecified fees on Georgia
to be appropriated by the General Assembly.
“Should the General Assembly fail to appropriate the undetermined
amount, the proposed compact would subject the State of Georgia
to a lawsuit to recover funds. I cannot support a self-perpetuating
financial obligation imposed on Georgia tax payers. I fully support
efforts to enhance the quality of life for children of military
families stationed in Georgia, and I encourage the Department of
Education to adopt policies to reach these ends. I believe, however,
that the proposed compact represents an abdication and unconstitutional
binding of the Legislature’s powers of appropriation.”
Senate Resolution 820 would have created
a Joint Study Committee to examine law enforcement within the Department
of Natural Resources.
“The stated objective of the Study Committee is to “undertake
a study of the conditions, needs, issues, and problems” facing
the Department of Natural Resources, but the proposed study committee
fails to include any representation from the Executive Branch. It
is my belief that formal examinations of an Executive Agency should
include representatives from the Executive Branch of government.”
House Bill 552 would have authorized the City of Snellville
to act in a manner consistent with the Redevelopment Powers Act.
“At the request of the sponsors, I veto House Bill 552 as
duplicative of House Bill 1261.”
House Bill 821 changes the compensation
for the Office of Cobb County Solicitor-General.
“At the request of the authors, I veto HB 821.”
House Bill 828 would have moved Banks County
from the Lanier Technical College service delivery area to the North
Georgia Technical College service delivery area.
“It is my understanding that this legislation circumvented
the normal process for making such a change: consulting the Department
of Technical and Adult Education, now known as the Technical College
System of Georgia.”
House Bill 857 would have increased the
salary for the Sheriff of Washington County.
“Last year I vetoed legislation passed under similar circumstances,
explaining that “The County Commission was not consulted before
this legislation was introduced, but the County Commission must
provide for the unfunded mandate contained in [the vetoed legislation]
through taxpayer funded general revenue. I do not support unfunded
mandates generally, especially when local governing authorities
did not have the benefit of consultation prior to the Legislative
Session.”
Senate Bill 553 changes the corporate limits
of the City of Ringold.
“At the request of a member of the local delegation, I VETO
Senate Bill 553 to allow the parties time to resolve the matter
without State intervention.”
Governor’s Line item Vetoes Aimed At Speaker Richardson and
Others
The fight between Governor Sonny Perdue and House Speaker Glenn
Richardson is far from over. In his line-item budget vetoes on May
15th, the Governor’s veto power was aimed at Speaker Richardson.
The Governor used his line-item veto power to eliminate a $4 million
state grant to the Paulding County airport in the Speaker’s
home district.
The $4 million would have been used to erect a flight building in
memory of three of Richardson’s friends who died in a plane
crash earlier this year. The same veto also eliminated a $500,000
appropriation for airport improvements in Glynn County, which is
represented by House Majority Leader Jerry Keen.
Richardson and Keen were two of the primary “ringleaders”
in having the House vote to override 12 vetoes on the first day
of the 2008 session. In the end, the Senate agreed to only one of
them.
The House leadership also clashed with Perdue in the selection of
a new Department of Transportation commissioner last October.
In all, Perdue vetoed $14.2 million in cash projects and $22 million
in bond projects, compared to last year’s budget vetoes of
$18 million in cash and $123 million in bonds.
Other House leaders also saw projects vetoed. A charter school in
Marietta, supported by Rules Chairman Earl Ehrhart, was also chopped
out of the budget for the second year in a row.
Overall, the $21 billion state budget for the year beginning July
1 funds 2.5 percent pay raises for teachers and state employees
and trims the long-standing education austerity cut by $50 million.
House budget writers had been pushing all session to eliminate the
entire $141 million cut but did not succeed.
Here is the text of the line-item vetoes:
Section 21, pertaining to the Department of Economic Development,
page 73, line 2499:
The General Assembly appropriated $125,000 in state general funds
to the Tourism program for the development of a five year business
plan for the Georgia Tourism Foundation. The initial state investment
of $1.2 million in the Foundation was intended to generate significant
private investment in tourism development. The sustainability of
the foundation is dependent on the success of this public-private
partnership. The Tourism Foundation has been charged to raise funds
from outside sources for their five year business plan. Therefore,
I veto the appropriation of $125,000 contained in this proviso.
Section 21, pertaining to the Department of Economic Development,
page 73, line 2500:
The General Assembly earmarked $150,000 in state general funds to
the Tourism program for the restoration of Augusta's historic Powder
Works chimney. State support for this project is not justified.
Therefore, I veto the appropriation of $150,000 contained in this
proviso.
Section 21, pertaining to the Department of Economic Development,
page 73, line 2502:
The General Assembly appropriated $3,000,000 in state general funds
to the Tourism program for the National Infantry Museum. The state
has fulfilled its commitment to the National Infantry Museum with
the $5,000,000 appropriation in the fiscal year 2008 budget. Therefore,
I veto the appropriation of $3,000,000 contained in this proviso.
Section 21, pertaining to the Department of Economic Development,
page 73, line 2503:
“The General Assembly appropriated $250,000 in state general
funds to the Tourism program for the Georgia International and Maritime
Trade Center Authority to perform an economic impact and environmental
improvement study. The State of Georgia issued a total of $17.7
million in bonds for the Trade Center in 1994 and 1995 and still
has outstanding debt service of nearly $6 million. The local community
has reaped significant economic benefit from the state’s investment
and should shoulder the financial investment involved in the feasibility
study. “
Section 23, pertaining to the Department of Education, page 87,
line 2954:
“The General Assembly appropriated $900,000 in state general
funds to the Technology/Career Education program in order to provide
funds for a Classroom Technology initiative. Classroom technology
is important as evidenced by my FY ’09 budget recommendation
of $17,696,972 in state funds and $52,975,212 in total funds for
the Technology/Career Education program as a whole. While classroom
technology is important, the failure to fund such a classroom technology
initiative comprehensively or demonstrate the need for such funding
on a limited basis is the fatal flaw. “
Section 26, pertaining to the Department of Human Resources, page
125, line 4245:
“The General Assembly appropriated $31,007 in state general
funds for the Brain and Spinal Injury Trust Fund program to provide
for increased operating expenses. The trust fund operates efficiently
from annual DUI fines. State general fund support for this program
is not justified. “
Section 29, pertaining to the Department of Juvenile Justice,
page 141, line 4788:
“The General Assembly earmarked $600,000 in the Children and
Youth Coordinating Council for ‘Connecting Henry, Inc.’
to provide for a multi-jurisdictional collaborative to address the
high dropout rate in the community. I am supportive of the goals
of this collaborative and encourage them to work creatively with
the local school system and our graduation and community coaches
towards the goal of lowering the dropout rate in Henry County. Given
the myriad of other initiatives in this state directed towards this
laudable goal and the equivalent need in other communities for similar
services, I cannot justify an earmark of state funds for this particular
collaborative. Nonetheless, funding is also available on a competitive
basis through the Governor’s Office for Children and Families
for these types of activities.”
Section 37, pertaining to the Department of Public Safety, page
164, line 5581:
“The General Assembly appropriated $250,000 in state general
funds to the Field Offices and Services program for the purchase
of equipment for the Columbia County State Patrol Post. This is
a new location for the State Patrol Post currently in Thomson, McDuffie
County. Equipment and other associated expenses will be transferred
from the Thomson location. This appropriation was given higher priority
by the General Assembly than funding for the 87th trooper school
which would have resulted in at least 50 additional troopers in
FY09. Sufficient funding exists within the Department of Public
Safety to cover any additional costs incurred as a result of the
transfer.”
Section 37, pertaining to the Department of Public Safety,
page 167, line 5705:
“The General Assembly appropriated $250,000 in state general
funds to the Public Safety Training Center to fund expenses for
the North Central Georgia Law Enforcement Academy. This appropriation
seeks to almost double the $271,952 annual contract currently between
the Georgia Public Safety Training Center and the Cobb County Commission.
This increase would create significant inequities with the other
regional law enforcement academies. As stated in the veto message
for this item in House Bill 989, increases for law enforcement academies
should be managed on a fair and equitable basis for all academies.”
Section 39, pertaining to the Board of Regents, page 175,
line 5998:
“The General Assembly appropriated $360,000 in state general
funds to the Public Service/Special Funding Initiatives program
for the Georgia Water Planning and Policy Center at Albany State
University and Georgia Southern University. $11,100,000 will be
available for water planning and projection modeling as a part of
the implementation of the statewide water plan. The university system
is expected to be an active participant in these planning activities.
Directed and earmarked state funding for this program is not justified.”
Section 39, pertaining to the Board of Regents, page 178,
line 6087:
“The General Assembly appropriated $200,000 in state general
funds to the Teaching program for the planning and implementation
of a program at Kennesaw State University for disadvantaged youth.
This program was not identified by the Board of Regents or Kennesaw
State University as a priority for the Teaching program in FY09.
I support the use of state facilities and staff at Kennesaw State
University to plan and implement this program in conjunction with
local community support; however, due to the unspecified need associated
with this project and other priorities within the Teaching program.”
Section 45, pertaining to the Department of Technical and Adult
Education, page 201, line 6893:
“The General Assembly appropriated $25,000 to the Economic
Development (QuickStart) program for Base Closure and Realignment
(BRAC) job retraining program for Atlanta Technical College. The
Department has indicated it has sufficient funding to undertake
this activity without an additional appropriation.”
Section 45, pertaining to the Department of Technical and
Adult Education, page 202, line 6914:
“The General Assembly appropriated $250,000 in state general
funds to the Technical Education program for the creation of a college
and technical facility in Catoosa County at Bentley Place. This
facility is not on the Department’s priority list for expansion.
Due to the unspecified need associated with this project and other
priorities within the Technical Education program.”
Section 46, pertaining to the Department of Transportation, page
204, line 6982:
“The General Assembly earmarked $5,200,000 in state general
funds to the Airport Aid program for the Paulding County Regional
Airport ($4,000,000), Cherokee County Airport Authority ($700,000),
and the Glynn County Airport Commission ($500,000). State funding
for airports is currently determined in accordance with statewide
priorities for air transport and is awarded on a competitive basis.
Local communities are encouraged to seek funding from Airport Aid
at the Department of Transportation ($23 million available in FY09)
and the AirGeorgia program at the OneGeorgia Authority ($15 million
available in FY09).”
Section 49, pertaining to the General Obligation Debt Sinking Fund,
pages 213-214, line 7303:
“This language authorizes the appropriation of $683,200 in
debt service to finance educational facilities for county and independent
school systems through the State Board of Education specifically
for the design and construction of a charter school to be operated
by the Cobb County School System through the issuance of $8,000,000
in 20-year bonds. Historically, funding for a start-up charter school
is not included in general obligation debt, and its inclusion here
sets a costly precedent. Funding is available for operating and
facility grants on a competitive basis for start-up charter schools
through the Department of Education.”
Section 49, pertaining to the General Obligation Debt Sinking Fund,
page 214, line 7305:
“This language authorizes the appropriation of $1,155,000
in debt service to finance educational facilities for county and
independent school systems through the State Board of Education
specifically for career and vocational equipment per House Bill
905 through the issuance of $5,000,000 in 5-year bonds. Due to the
failure of the passage of House Bill 905, the availability of other
funds for equipment purchases, and due to the limitations on additional
debt contained in the state’s debt management plan, I veto
this language (page 214, line 7305) in the provisions relative to
Section 49, General Obligation Debt Sinking Fund and the state general
funds of $1,155,000.”
Section 49, pertaining to the General Obligation Debt Sinking
Fund, page 224, line 7405:
“This language authorizes the appropriation of $657,580 in
debt service to finance projects and facilities for the Department
of Transportation, specifically for rail lines for Lyerly to Coosa,
Nunez to Vidalia, Ardmore to Sylvania, St. Augustine Road Rail Switching
Yard Expansion and McNatt Boulevard Extension rail crossing through
the issuance of $7,700,000 in 20-year bonds. Financing for these
rail projects should not be considered until processes for project
selection have been reviewed and adequate justification is made
for continued state investment.”
Section 49, pertaining to the General Obligation Debt Sinking Fund,
page 224, line 7406:
“This language authorizes the appropriation of $170,800 in
debt service to finance projects and facilities for the Department
of Transportation, specifically for the construction of a welcome
center for Tallulah Falls on the Rabun County side through the issuance
of $2,000,000 in 20-year bonds. In consideration of other priority
items as expressed by the General Assembly and limitations on additional
debt contained in the state’s debt management plan.”
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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