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GEDA
Post-Session Report
The
General Assembly adjourned sine die (adjournment without assigning
a day for a further meeting or hearing) on Thursday, March 29
(technically March 30 since it was just after midnight). This marked the
end of a biennial session, so all legislation that failed to gain passage
will have to start the legislative process from the very beginning in
January 2019.
Starting
on March 30, the bill review process began for Governor Deal and his
staff. By law, the Governor has 40 days in which to sign or veto
legislation. Any legislation not affirmatively vetoed becomes law.
Session
Highlights:
Budget – The House and
Senate passed the final FY2019 Appropriations Act. The budget represents
total state spending of $26 billion and total public fund spending of
$46.5 billion for state fiscal year 2019. Governor Deal is expected to
sign the legislation and it will take effect on July 1, 2018. Please find
details of HB684 in the conference committee report here.
Tax
Cut
– The General Assembly passed and the Governor signed HB918. This
legislation will significantly reduce state income taxes payable by both
individuals and corporations. After passage of the bill Governor Deal
issued a press release stating that the legislation will save Georgia
taxpayers more than $5 billion over the next 5 years. Specifically, the
bill will:
·
Reduce the income tax rate for individuals and businesses from 6% to
5.75% effective January 1, 2019.
·
Provide for an additional rate reduction from 5.75% in 2019 to 5.5% in
2020 if the General Assembly passes and the next Governor signs a joint
resolution putting that into effect.
·
Doubles the standard deduction for individuals to $4,600 from $2,300 for
single taxpayers and to $6,000 from $3,000 for married couples filing
jointly, effective January 1, 2018.
Rural
Focus
– Fueled by the work of the House Rural Development Council and the
Senate Rural Study Committee, the General Assembly remained focused on
improving quality of life and economic prosperity in rural Georgia.
Specifically, the General Assembly addressed a few areas:
· Rural
Broadband – several pieces of legislation were introduced to tackle
the expansion of high speed internet access in rural Georgia. Ultimately,
only SB402 made its way through both chambers, meaning efforts to provide
EMCs statutory authority to provide broadband services and efforts to
deploy small-cell technology across rural areas were not successful.
Although Governor Deal has yet to sign SB402, an overview of the bill is
as follows:
o The bill authorizes GDOT, in
cooperation with the Georgia Technology Authority (GTA) to develop a
long-term strategy for the deployment of broadband in GDOT right of ways
along Georgia’s interstate highways. We understand GDOT will issue a
request for proposal in late May. The idea is that GDOT will award
contracts for the work and the winning companies would make money leasing
fiber access to providers. The company would keep a certain percentage of
the money from the lease and GDOT and the State of Georgia’s general fund
would get the remainder of the money from the lease. The intent is for
any net revenue to be directed towards programs that promote the
deployment of broadband throughout the state;
o The Department of Community Affairs
(DCA) will be required to publish a map that identifies areas of the
State of Georgia that are unserved by broadband at a census block level.
There is a process in place for an interested party to challenge a
designation made by DCA.
o DCA, in conjunction with the Department
of Economic Development (GDEcD) will create rules and regulations for the
designation of Broadband Ready Communities. Broadband Ready Communities
will be given priority for state broadband funding. DCA & GDEcD will
also develop the Georgia Broadband Ready Community Site Designation
program, whereby they promote facilities and developments that offer 1
gigabit of broadband.
o DCA will establish the Georgia
Broadband Deployment Initiative in order to provide grants and loans to
eligible applicants for broadband deployment.
o GTA is given expanded duties to create
a state-wide broadband deployment plan, offer technical support to other
state agencies to develop broadband programs, analyze state properties
that could be used in broadband deployment, and coordinate with state
agencies that apply for funding of broadband services. Every year, GTA
will submit a report to the General Assembly detailing programs and
policies that have been established to deploy broadband across the state.
· Center for
Rural Prosperity – The General Assembly passed HB951, a bill to
establish a Center for Rural Prosperity & Innovation that would serve
as a central location for research and information on rural development.
The bill also establishes a deputy commissioner for Rural Georgia at the
GDEcD. Bill details include:
o The Center will be physically located
within a college or institution of the University System of Georgia. The
director of the Center will be appointed by the president of the college
in which it is physically located and subject to the approval by a
majority vote of the Rural Development Council. Media reports indicate
that the Center may be located at ABAC in Tifton, GA.
o The Center will assume the business and
responsibilities of the Centers of Innovation for Agribusiness currently
administered by the GDEcD.
o The Georgia Rural Development Council
will be housed at the Center (currently resides at DCA) and offer
guidance to the Center. All departments and agencies of the state, except
the University System of GA and TCSG, must provide upon request of the
Council, services, information, and other support for the Council and its
work.
o It is the duty of the Center (in
coordination with GDEcD, as necessary) to provide a central information
and research hub for rural leadership training and best practices.
o The FY2019 budget includes $1.7 million
in funding for the Center.
· Health
Coordination & Innovation Council – SB357 passed the General
Assembly and awaits the Governor’s signature. The intent of the
legislation is to cut bureaucracy to eliminate barriers to care so as to
improve the quality of life for Georgians statewide, while placing a
clear priority on rural communities struggling the most. The bill:
o Establishes Georgia’s Health
Coordination and Innovation Council (comprised of 18 members) and the
Health System Innovation Center. $1.5 million was included in the FY19
budget to establish the Council. $300,000 was included in the FY19 budget
for start-up costs for the Center, the site of which will be chosen
through an RFP process with criteria that may include (but not be limited
to) a school of medicine, a history of understanding rural assets and
resources, a network of community-based preceptors statewide, and a
demonstration of commitment to a long-term relationship with rural
communities).
o The Council is charged with
streamlining functions of our health care system and breaking down silos
between state agencies, academic institutions, and the private sector to
cut back on bureaucracy and modernize and improve every dimension of
Georgia’s health care system.
· Rural
Development Council – The legislation that had “legs” this session
and moved toward passage was recommended by the House Rural Development
Council. The Council will continue its work with meetings around the
state this summer and fall to continue to focus on improving the quality
of life and economic opportunity in rural Georgia. The Rural Development
Council has announced the following dates and locations for their
meetings:
o May 15-16 – Blue Ridge, GA – Topic:
Equitable Use & Compensation of Right of Way Usage for Emerging
Communications Technologies
o August 14-15 – Elberton, GA at Athens
Tech – Topic: TBA
o September 18-19 –Statesboro, GA at
Georgia Southern – Topic: TBA
o October 22-23 – Brunswick, GA at
Coastal College of GA – Topic: TBA
o December 4-6 – Dahlonega, GA at
University of North GA – Topic TBA
Tax
Credits
– Special attention is being paid to tax credits that exist in Georgia
Code and whether or not it is wise for the General Assembly to eliminate
them or allow them to continue. The focus seems to be on the cost to the
state versus the benefit that can be articulated by having the tax credit
in place. We anticipate this to continue to be a focus into next session
based on a couple of things that happened during the 2018 session:
·
Passage of SB328, which repealed three tax credits: credits for federal qualified
transportation fringe benefits; credits for private driver education; and
credits for diesel particulate emission reduction technology. The
elimination of these 3 credits was based off a study committee’s 2017
report and recommendation. The Governor has signed this bill.
·
SB432, which ultimately did not pass, almost did and underscores the
scrutiny tax credits are under at the Gold Dome. This bill would have set
up most tax credits in Georgia Code on a review schedule by the General Assembly
to lay the ground work for them to either be recommended for extension or
termination.
Regional
Transit
– Legislation passed that sets in place a funding framework and a
governance structure for a regional transit system for all of metro
Atlanta. The legislation provides a new funding mechanism for transit:
allowing counties to seek sales tax increases of up to 1% for up to 30
years to finance construction or operation. The legislation also calls
for rebranding all regional transit systems by March of 2023 into “the
Atlanta-region Transit Link Authority,” dubbed “The ATL.” The ATL
Commission will be responsible for planning transit across 13 metro
counties utilizing existing systems: CobbLinc, Gwinnett County Transit,
GRTA’s Xpress Service, and MARTA. Additionally, the FY2019 budget
included $100 million to fund statewide transit projects, including the
Atlanta region – the largest in Georgia history.
Military
Zones Expansion – HB843 passed the General Assembly and awaits the
Governor’s signature. This bill expands the availability of military zone
status to census tracts within any publicly owned industrial park located
in a county with a military base that employs at least 5000 personnel.
The benefit of having military zone status is that the designated area
qualifies for the maximum job tax credit allowed under law -- $3,500 per
job created (with a minimum of 2 jobs created); the credit can be claimed
by any business of any nature; and the job tax credits can be used
against 100% of income tax liability and withholding taxes.
Development
Authority Reporting Requirements – HB257 passed the General
Assembly and was sent to the Governor. This legislation was intended to
simplify annual reporting requirements for development authorities to DCA
by combining annual registration reports and annual financial reporting
requirements into one report. It also combines penalties for failure to
provide either registration or financial information.
Bill Tracking:
Cornerstone
tracked several bills for GEDA this session. Below is an updated bill
tracker with simplified pass/did not pass as the status. Any legislation
that has already been signed by the Governor is italicized.
HB59
– Historic Tax Credits
Bill
Sponsor:
Rep. Ron Stephens (R-Savannah)
Bill Status: Did not pass
Summary: The bill provides tax credits against state income taxes
for the rehabilitation of historic structures, and provides re-approval
of additional tax credits for current recipients of credits. The taxpayer
will be allowed a tax credit against the tax imposed at such time as the
certified rehabilitation is completed. An applicant seeking to claim a
tax credit will submit an application to the GA Dept. of Community
Affairs for pre-approval.
HB61
– Internet Sales Tax bill
Bill
Sponsor:
Rep. Jay Powell (R-Camilla)
Bill Status: Passed – sent to Governor
Summary: This bill was attached to HB329 and passed out of Senate
Finance. It would create an economic nexus test to determine whether an
online retailer is responsible for collecting and remitting sales tax. If
the online retailer either (1) does a certain dollar amount in sales each
year ($250,000) or (2) transacts a certain number of sales each year
(more than 200), that online retailer will be required to collect and
remit sales tax. The goal is to create parity for brick and mortar
retailers in communities across GA.
HB118
– Fantasy Contests Act
Bill
Sponsor:
Rep. Trey Kelley (R-Cedartown)
Bill Status: Did not pass
Summary: Provides for the licensing, registration, regulation, and
taxation of fantasy contest operators. The bill creates the Registered
Fantasy Contest Operators Act. Fantasy contest operators must register
with the Commissioner of the Dept. of Revenue. A fantasy contest operator
must pay an annual registration renewal fee and 6% of the fantasy contest
operator’s gross fantasy contest revenues for the preceding 12 months.
The registration application is exempt from public disclosure unless
challenged in the courts.
HB205
– Regulation of Exploration & Extraction of Oil and Gas
Bill Sponsor: Rep. John Meadows (R-Calhoun)
Bill Status: Passed – sent to Governor
Summary: Provides for regulation of the exploration and extraction
of gas and oil; provides the authority to create an Oil and Gas Board;
requires development of rules and regulations related to drilling and
extraction; amends provisions relating to drilling permits; increases the
amount of bond security for drilling operations; provides for the
authority of local governments; and to impose a severance tax on the
extraction of oil and gas. The bill also defines ‘hydraulic fracturing.’
HB225
– Licensing & Sales Tax Exemption for Ride Share Networks
Bill
Sponsor:
Rep. Jay Powell (R-Camilla)
Bill Status: Did not pass
Summary: Repeals an inoperable sales tax exemption related to ride
share networks and imposes collection and remittance of sales taxes on
certain persons that facilitate or broker and accept or process payment
for certain sales. Individuals that utilize ride sharing networks would
be required to pay a 4% sales tax for each trip.
HB257
– Local Government Authorities Reporting Requirements
Bill Sponsor: Rep. Jan Tankersly (R-Brooklet)
Bill Status: Passed-sent to Governor
Summary: Consolidates reporting requirements to the Department of
Community Affairs for local government authorities.
HB329
– Personal Income Tax
Bill Sponsor: Rep. Jay Powell (R-Camilla)
Bill Status: Passed – sent to Governor
Summary: Relating to ad valorem tax on motor vehicles.
HB658
– Excise Tax on Rooms, Lodging, & Accommodations
Bill
Sponsor:
Rep. Earl Ehrhart (R-Powder Springs)
Bill Status: Passed – sent to Governor
Summary: To remove the sunset date on the collection of excise tax
on certain rooms, lodging, & accommodations.
HB735
– Railroad Tax Credit
Bill Sponsor: Rep. Patty Bentley
Bill Status: Passed – sent to Governor
Summary: To create an income tax credit for
expenditures on the maintenance of railroad track owned or leased by a
Class III railroad.
HB843
– Military Zone Expansion
Bill
Sponsor: Jason
Shaw (R-Lakeland)
Bill Status: Passed – sent to Governor
Summary: To allow any publicly owned industrial park in a county
with a military base that employs at least 5000 personnel to have census
tracts within those industrial parks qualify for military zone status.
HB887
– GA Communications Services Tax Act
Bill Sponsor: Rep. Jay Powell (R-Camilla)
Bill Status: Did not pass
Summary: To create the “Georgia Reverse Auction Broadband
Deployment Program”; to allow municipal corporations to provide broadband
service; to create “Broadband Ready Communities”; to allow EMCs to
provide broadband service; eliminates franchise fees; amends communications
services tax; limits pole attachment rates.
HB888
– Freeport Exemptions
Bill
Sponsor:
Rep. David Knight (R-Griffin)
Bill Status: Passed – sent to Governor
Summary: To create uniform timelines for filing and responding to
applications for freeport exemptions.
HB918
– Georgia Tax Reform
Bill
Sponsor:
Rep. Chuck Efstration (R-Dacula)
Bill Status: Passed; Governor signed
Summary: To double the standard deduction, lower the income tax
rate for individuals and businesses, and eliminate the sales tax on jet
fuel.
HB951
– Center for Rural Prosperity & Innovation
Bill
Sponsor: Rep.
Jason Shaw (R-Lakeland)
Bill Status: Passed – sent to Governor
Summary: To establish the Center for Rural Prosperity and
Innovation, to incorporate the Centers of Innovation for Agribusiness in
the Department of Economic Development, and to provide for the
incorporation and structure of a new Georgia Rural Development Council.
The Center for Rural Prosperity will be within a university that is part
of the University System of Georgia, outside Atlanta, and that offers BS
degrees in rural community development
HR1076
– Resolution on Port Funding
Bill
Sponsor:
Rep. Bill Hitchens (R-Rincon)
Bill Status: Passed
Bill Summary: A resolution urging the federal government to
provide port funding.
HR1091
– House Study Committee on Athens-Atlanta Transportation Link
Bill Sponsor: Rep. Deborah Gonzales (D-Athens)
Bill Status: Did not pass
Summary: Create a study committee to study an Athens to Atlanta
rail line
SB2
– The Fairness, Accountability, Simplification, and Transparency –
Empowering Our Small Businesses to Succeed (FAST) Act
Bill
Sponsor:
Sen. Mike Dugan
Bill Status: Did not pass
Summary: The bill would establish a new voluntary certification
program at the Department of Community Affairs called “Ready for
Partnership Georgia,” governing the permitting process and permitting
fees. Communities can voluntarily participate.
SB3
– Creating Opportunities Needed Now to Expand Credentialed Training
(CONNECT) Act
Bill
Sponsor:
Sen. Lindsey Tippins
Bill Status: Passed – sent to Governor
Summary: Requires the State Board of Education to prescribe a
minimum course of study in career education for students in grades 6-12.
The course of study should include career exploration and career-oriented
learning experiences that include participation in work-based learning
programs like internships, apprenticeships, cooperative education, or
employability skill development; and rigorous industry credentialing.
SB
6 – Georgia Regional Transit Council
Bill Sponsor: Sen. Steve Gooch
Bill Status: Did not pass
Summary: Creates the Georgia Regional Transit Council that will be
attached to the Dept. of Transportation for administrative purposes. The
Council is created to develop a state-wide strategic transit plan with
the guidance of a recognized industry leader in delivering transit
strategy for multijurisdictional entities that emphasizes first-mile and
last-mile services, the development of a seamless transportation network
with dependable trip times for commuters, the enhancement of limited
access highways, road congestion relief, safety enhancements, and plans
for a future of transportation innovations.
SB17
– The “Brunch Bill”/ The “Mimosa Mandate”
Bill
Sponsor:
Sen. Renee Unterman
Bill Status: Passed –sent to Governor
Summary: To let local voters decide whether restaurants can serve
alcohol beginning at 11 am on Sundays.
SB191
– Petroleum Pipelines
Bill
Sponsor:
Sen. Rick Jeffares
Bill Status: Did not pass
Summary: Requires that on or after July 1, 2017, any construction of
a new petroleum pipeline or an extension in this state requires a permit
from the Director of EPD regardless of whether the petroleum pipeline
company intends to exercise any power of eminent domain. The Director
will conduct hearings to determine whether the location and construction
of the portion of the petroleum pipeline for which the permit is sought
are consistent with, and not an undue hazard, to the environment and
natural resources of this state.
SB328
– Repealing Tax Credits
Bill Sponsor: Sen. John Albers
Bill Status: Passed – Governor signed
Summary: This legislation is a result of Sen. Albers’ study
committee examining the current tax credits in Georgia. This study
committee met numerous times in 2017 and issued its final report in
December ’17. The report suggested that the General Assembly repeal three
tax credits for Federal Qualified Transportation Fringe benefits, private
driver education, and diesel particulate emission reduction technology
equipment. SB328 aims to repeal all three of these credits.
SB386
–ATL Commission
Bill Sponsor: Sen. Brandon Beach
Bill Status: Passed as HB930 – sent to Governor
Summary: To provide an exception to the ceiling on local sales and
use taxes; to provide for the imposition of a transit special purpose
local option sales and use tax within special districts; to create the
Atlanta-region Transit Link “ATL” Commission.
SB402
– Achieving Connectivity Everywhere (ACE) Act
Bill
Sponsor:
Sen. Steve Gooch
Bill Status: Passed – sent to Governor
Summary: Allow GDOT to enter into public-private partnerships to
deploy broadband statewide; create a broadband grant program at DCA;
create “Broadband Ready Community” designations via DCA; require local
governments to incorporate broadband deployment in comprehensive plans
and service delivery strategies.
SB426
– Broadband Infrastructure Leads to Development (BILD) Act
Bill
Sponsor:
Sen. Steve Gooch
Bill Status: Did not pass
Summary: To streamline the deployment of wireless broadband in
public rights of way by limiting the ability of local governments to
prohibit, regulate, or charge for use of public rights of way under
certain circumstances.
SB432
– Georgia Tax Credit Business Case Act
Bill
Sponsor:
Sen. John Albers
Bill Status: Did not pass
Summary: To review, starting in 2018, various tax credits and
exemptions, through the year 2025.
SB460
– Rebrand MARTA as “The ATL”
Bill
Sponsor:
Sen. Brandon Beach
Bill Status: Passed as HB930 – sent to Governor
Summary: Companion bill to SB386 (and will only move forward if
SB386 moves forward) that amends the MARTA Act of 1965 to provide for the
adoption of a logo and brand of the term “ATL” for all MARTA trains and
buses on or after January 1, 2023; and clarifies the responsible parties
for debt in relation to the issuance of bonds.
SR502
– High Speed Rural Broadband
Bill Sponsor: Sen. Steve Gooch
Bill Status: Passed
Summary: A resolution encouraging Congress and federal agencies to
develop policies and funding sources to help bring high-speed broadband
access to Rural America.
SR613
– English as Official Language
Bill Sponsor:
Sen. David Shafer
Bill Status:
Did not pass
Summary:
A resolution proposing an amendment to the Constitution so as to declare
English as the official language of the State of Georgia.
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