2018 Legislative Report 8

March 2, 2018 GEDA Weekly Policy Update: Week 8   Prepared by:  The General Assembly met for days 27-29 this week. As a reminder, the adjournment resolution, which contains the full calendar can be found here. Wednesday, Legislative Day 28, also marked Crossover Day. Crossover Day is an important day during the General Assembly session because a bill must pass at least one legislative chamber by Crossover Day in order to become law. Noteworthy Items: After much attention in statewide and national media outlets, HB918 was amended by the Senate to eliminate the provision that does away with Georgia’s sales tax on jet fuel. Both the House and the Senate passed the amended version, enacting the largest tax cut in Georgia history. Governor Deal held a press conference on 2/28/18 stating he will sign into law HB918 as amended because the $5 billion tax savings over the next 5 years that the bill provides is too important. He did indicate that he is committed to finding a pathway forward for the elimination of sales tax on jet fuel, calling it “non-negotiable,” and committed to continuing an “open dialogue with all stakeholders in the process, including Georgia’s largest private employer – Delta Air Lines.” Expanding broadband to rural Georgia will continue to be discussed for the remainder of session as three broadband bills passed the Senate: SB402, which establishes a rural broadband fund; SB232, which provides statutory clarity for EMCs to provide broadband; and SB426, which focuses on expanding small cell technology. Additionally, HB887 passed the House. This bill creates a rural broadband fund and also provides statutory clarity to allow EMCs to provide broadband The budget continues to wind its way through the General Assembly. The House finished work on the amended FY18 budget on Thursday by passing the conference report. The Senate is expected to complete its work on that conference report on Monday. Attention will now turn to completing the FY19 budget. The House held an extended debate on distracted driving and then passed HB673, which would require Georgia drivers to use hands-free technology when driving. It also bans watching movies, recording videos, or otherwise fiddling with your device in a way that takes drivers’ eyes off the road. Fines are doubled and penalty points would go from 1 to 6 for distracted driving. This will be a big topic of discussion at the Gold Dome. The House passed HB951, 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 housed within a university that is part of the University System of Georgia, outside Atlanta, and that offers BS degrees in rural community development. Bill Tracking: Bills in green have passed at least one body and survived cross over day. Bills in red did not. Beginning next week we will only include the bills listed below in green for you to track their progress. 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. HB61 – Internet Sales Tax bill Bill Sponsor: Rep. Jay Powell (R-Camilla) Bill Status: Passed House; Passed Senate Finance 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.  HB69 – Tier Tax Credit Claims Bill Sponsor: Rep. Paulette Rakestraw (R-Hiram) Bill Status: House Second Reader; referred to Ways & Means Committee 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; referred to Ways & Means committee 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; referred to Ways & Means 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; referred to 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. 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. HB257 – Local Government Authorities Reporting Requirements Bill Sponsor: Rep. Jan Tankersly (R-Brooklet) Bill Status: passed House; favorably reported Senate Government Affairs Committee 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 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; referred to Senate Finance Committee 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; passed Committee by substitute; passed House 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. HB843 – Military Zone Expansion Bill Sponsor: Jason Shaw (R-Lakeland) Bill Status: passed House 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: referred to Ways & Means;  passed House 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: referred to Ways & Means Committee; passed Committee 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: Referred to Ways & Means; passed Committee; passed House; passed Senate Summary: To double the standard deduction, lower the income tax rate for individuals and businesses, and eliminate the sales tax on jet fuel.  HB936 –Statewide School Start Date Bill Sponsor: Rep. Ron Stephens (R-Savannah) Bill Status: Referred to Education Committee Summary: Create a state law that no school in Georgia can begin the school year before the third week in August. HB951 – Center for Rural Prosperity & Innovation Bill Sponsor: Rep. Jason Shaw (R-Lakeland) Bill Status: Passed House 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: Referred to Economic Development & Tourism Committee; passed House 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: referred to Transportation Committee 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: House withdrawn; Recommitted; referred to House Small Business Development Committee; passed committee as a substitute on 2/15; failed House vote; motion to reconsider 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; passed Senate; referred to House Regulated Industries Committee 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; Passed Senate; referred to House Ways & Means Committee 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; Referred to Transportation Committee 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. SB386 –ATL Commission Bill Sponsor: Sen. Brandon Beach Bill Status: Referred to Transportation Committee; passed Committee 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: Senate Hopper Bill 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: Referred to Regulated Industries Committee; passed Senate 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: Referred to Senate Finance Committee Summary: To eliminate, 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: Referred to Transportation Committee; passed Committee; passed Senate 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: referred to Rules Committee; Passed Senate 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; Referred to Rules Committee 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.