2018 Legislative Report 4

February 2, 2018 GEDA Weekly Policy Update: Week 4   Prepared by:  The General Assembly met for days 11-14 this week. As a reminder, the adjournment resolution, which contains the full calendar can be found here. Bills on the Move: As of this writing, the General Assembly is moving toward passing the Amended FY18 budget. ·        Included in the amended budget is $75,000 in seed money that will flow through the Board of Regents to plan the Center for Rural Prosperity and Innovation, as recommended by the House Rural Development Council. We anticipate there to be an RFP for the funding and location of the center and that it would be attached to a university. HB61, the “Internet Sales Tax” bill moved through Senate Finance Committee and was attached to HB329, which is currently in a conference committee. This bill would create an economic nexus test to determine whether an online retailer is responsible for collecting and remitting sales tax. If they either (1) do a certain dollar amount in sales ($250,000) or (2) transact a certain number of sales (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. HB696 is a bill to provide a sales and use tax exemption for certain computer equipment sold or leased to certain entities for use in high-technology data centers. A minimum investment of $250 million (including design, construction, and equipment) would be required for a data center to quality. This bill has been referred to House Ways & Means and has had a hearing. It seems to be gaining attention and potentially traction so we wanted to flag it for you. Misc: It was announced this week that Georgia’s First Lady, Sandra Deal, had surgery that successfully removed a cancerous tumor in her breast discovered during a routine mammogram. We are seeing several bills resulting from the House Rural Development Council’s first year’s work. If you have not reviewed their recommendations overview, it is worth reading the short report, which can be found here. ·        For example, Rep. Rick Jasperse filed HB 769 this week, which is a result of recommendations made by the House Rural Development Council. It would establish the Rural Center for Health Care Innovation & Sustainability, which will conduct research to identify a postsecondary institution to educate leadership in hospitals to conduct business better, as well as revise provisions that dictate how pharmacists distribute medications in rural Georgia. Knowing the importance of rural health to the overall economy of rural Georgia, we want to make you aware that there are a number of items like this that, while they may not directly touch economic development, are all aimed at bringing greater economic prosperity to rural Georgia.  Bill Tracking: Note: Bills added for the first week are italicized. Movement on bills highlighted in red. HB59 – Historic Tax Credits  Bill Sponsor: Rep. Ron Stephens (R-Savannah) Bill Status: Senate Recommitted on 1/8/18 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. HB69 – Tier Tax Credit Claims Bill Sponsor: Rep. Paulette Rakestraw (R-Hiram) Bill Status: House Second Reader Summary: Beginning on Sept. 1, 2019 and annually for 5 years, the DCA Commissioner will issue a report to the Governor, President of the Senate, and Speaker of the House, including a list of all counties and their tier tax credit classifications, as well as the following information: (A) The total number of employers that claimed a credit under O.C.G.A. 48-7-40; (B) The number of all credits earned and all credits applied during such tax year; and (C) An estimate of the number of jobs and overall economic impact produced by this code section. HB70 – Tier Tax Credit System Bill Sponsor: Rep. Paulette Rakestraw (R-Hiram) Bill Status: House Second Reader Summary: Amend O.C.G.A. 48-7-40 to provide that a county classified as a Tier 4 county wil be reclassified as a Tier 3 if at least 70% of the county’s workforce commutes outside the county for work. Additionally, if 70% of a county’s workforce commutes outside the county for work, Tier 3 counties will be reclassified as Tier 2 counties, and Tier 2 counties shall be reclassified as Tier 1 counties. HB118 – Fantasy Contests Act Bill Sponsor: Rep. Trey Kelley (R-Cedartown) Bill Status: Senate Recommitted on 1/8/18 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. HB158 – Georgia Gaming Commission & Destination Resorts Bill Sponsor: Rep. Ron Stephens (R-Savannah) Bill Status: House Second Readers Summary: To provide for the creation, membership, appointment, and duties of the Georgia Gaming Commission and to authorize the licensing of up to 2 destination resorts in this state. HB205 – Regulation of Exploration & Extraction of Oil and Gas Bill Sponsor: Rep. John Meadows (R-Calhoun) Bill Status: Passed House & Senate; went to conference committee; 1/29 House conference committee adopted 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: Senate Recommitted 1/8/18 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. HB329 – Personal Income Tax Bill Sponsor: Rep. Jay Powell (R-Camilla) Bill Status: Passed House & Senate; went to conference committee Summary: Modifies the rate of tax imposed on the Georgia taxable net income of individuals; provides for an inflationary index rate; adjusts the amounts of the personal exemptions and standard deductions based on the inflationary index rate; and provides for a non-refundable earned income tax credit. The current Georgia taxable net income rate of one to 6% of taxable income would be removed from GA Code and replaced with one rate of 5.4%. *Note: This is a potential vehicle for any additional tax policy this session. HB650 – State Symbols & Monuments Bill Sponsor: Rep. Mary Margaret Oliver (D-Decatur) Bill Status: House Second Readers - Referred to Government Affairs Committee Summary: To allow local governments to relocate, remove, conceal, obscure, or alter certain monuments. HB658 – Excise Tax on Rooms, Lodging, & Accommodations Bill Sponsor: Rep. Earl Ehrhart (R-Powder Springs) Bill Status: referred to Ways and Means; 1/24 committee hearing; 1/31 passed House Summary: To remove the sunset date on the collection of excise tax on rooms, lodging, & accommodations. HB735 – Railroad Tax Credit Bill Sponsor: Rep. Patty Bentley Bill Status: House Second Readers; Referred to House Ways & Means Summary: To create an income tax credit for expenditures on the maintenance of railroad track owned or leased by a Class III railroad. HB753 – Lodging Excise Tax Exemptions Bill Sponsor: Rep. Don Hogan (R-St. Simons) Bill Status: House Second Readers; Referred to Transportation Committee Summary: To exempt nonprofit conference and retreat centers from the excise tax on rooms, lodging, & accommodations. SB2 – The Fairness, Accountability, Simplification, and Transparency – Empowering Our Small Businesses to Succeed (FAST) Act Bill Sponsor: Sen. Mike Dugan Bill Status: House withdrawn; Recommitted Summary: The bill would require state and local government agencies that issue licenses or permits to establish turnaround times they would have to meet. If they fail to process a license or fee by the deadline, they would have to reduce the processing fee. The bill would also require Georgia’s professional licensing boards to issue provisional licenses for businesses either renewing their licenses or moving to Georgia from out of state. Finally, the bill would establish a system for ranking and comparing state and local agencies’ permitting processes based in part on fees they charge and how long they take to issue licenses or permits. Additionally, the bill makes it easier for the legislature to override state agency rules by requiring simple majorities of the Georgia House of Representatives and Senate rather than 2/3 votes required in current law. SB3 – Creating Opportunities Needed Now to Expand Credentialed Training (CONNECT) Act Bill Sponsor: Sen. Lindsey Tippins Bill Status: Passed House & Senate; went to conference committee 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: House withdrawn; recommitted 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 Senate Regulated Industries Committee as a substitute Summary: To let local voters decide whether restaurants can serve alcohol and retail stores can serve beer and wine at beginning at 11 am on Sundays. SB79 – Georgia Gaming Commission & Destination Resorts Bill Sponsor: Sen. Brandon Beach Bill Status: Referred to Senate Regulated Industries Committee Summary: To provide for the creation, membership, appointment, and duties of the Georgia Gaming Commission and to authorize the licensing of up to 2 destination resorts in this state. SB191 – Petroleum Pipelines Bill Sponsor: Sen. Rick Jeffares Bill Status: House withdrawn; Recommitted to Natural Resources Committee 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. SB302 – Public Monuments Bill Sponsor: Sen. Elena Parent Bill Status: Referred to Government Oversight Committee Bill Summary: To allow local governments to relocate, remove, conceal, obscure, or alter certain monuments. SB328 – Repealing Tax Credits Bill Sponsor: Sen. John Albers Bill Status: 1/24/2018 Passed Senate Finance Bill 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. Revenue related bills have to originate in the House but we anticipate the Senate attaching the repeal of these tax credits to another tax bill. SB379 – Georgia Major Airport Operations & Management Act Bill Sponsor: Sen. Burt Jones Bill Status: Senate Hopper Bill Summary: To create the Georgia Major Airport Operations and Management Board, provide for its membership, duties, powers, and responsibilities, ad to transfer certain authority pertaining to major airports from counties, municipalities, and other political subdivisions to such board. SR502 – High Speed Rural Broadband Bill Sponsor: Sen. Steve Gooch Bill Status: referred to Rules Committee Bill 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: Senate Hopper Bill Summary: A resolution proposing an amendment to the Constitution so as to declare English as the official language of the State of Georgia. Glossary of Terms: Effective - The bill has been signed into law by the Governor and will go into effect the date stated. Recommitted -  A parliamentary motion to reassign a bill which has been in one committee to the same or a different committee.  Second Read -  In the House, second reading occurs automatically on the legislative day following the bill's introduction. In the Senate, second reading occurs on the legislative day after a bill is reported from standing committee, except that after the 35th day of the session, second reading occurs on the day a bill is reported from committee. Conference Committee -  A special committee consisting of three members from each house appointed by the presiding officers to seek a compromise when the two houses have passed different versions of the same bill and insist on their respective positions. Pre-filed - A bill that is filed before the beginning of the legislative session Withdrawn - A bill is removed from consideration Referred - Placed into committee To find your law makers click here.  To view the GEDA Public Policy Agenda for 2018 click here.