March 26, 2010
'Bed tax' approved after hospitals drop opposition
In the past week, several Georgia hospital organizations announced their decision to support Gov. Perdue's proposal for a tax increase to offset the state's Medicaid deficit.
For two years, the health care community and most legislators have opposed the governor's "bed tax" proposal. The hospital leaders who changed their positions apparently decided the tax increase was the lesser of two evils when compared to the governor's other recommendation of a 10.25 percent decrease in Medicaid reimbursements and reinstatement of the sales tax on nonprofit hospitals.
On Friday, the House approved HB 307, which would implement a 1.45 percent fee (reduced from the governor's original 1.6 percent proposal), and the bill now goes to the Senate for its consideration.
Tax Reform Council: The House voted 111-55 to approve legislation that would create a "tax reform council" made up largely of Republican officials, including the current governor, and business interest representatives to review and recommend changes to the state's tax code. There would be no representatives on the council for consumers or other Georgians without "connections," even though its decisions would impact them the most. Under HB 1405, the recommendations for tax law changes would go straight to the House and Senate floors for a vote, without legislative committees having a chance to review or amend them.
Other Legislative Action: With only 10 days remaining in the 2010 session, House members dealt with a lengthy legislative agenda last week. Other measures that were approved and sent to the Senate for its consideration included:
HB 938, which would make texting while driving illegal for drivers of all ages.
HB 1019, which would allow citizens who live in areas affected by natural disasters to have their state documents, such as marriage and hunting licenses, replaced at no charge within 60 days of the disaster in which they were lost.
HB 1020 and HR 1203, which would allow school systems to use education special purpose local option sales tax (E-SPLOST) revenue for maintenance and operation expenses or to reduce property taxes. Currently, E-SPLOST money can only be used for construction projects. As a constitutional amendment, HR 1203 still needs two-thirds approval by the Senate and must be approved by the voters in November.
HB 1023, which would give a small tax credit to businesses that hire unemployed workers. The legislation would also reduce the state capital gains tax if the state has $1 billion in reserves.
HB 1055, which would raise more than 80 fees charged by various agencies, bringing in an estimated $96 million in increased revenues. These increases would affect a variety of services and permits ranging from court filings to business licenses to specialty car tags to fireworks displays.
HB 1059, which would allow yard trimmings to be sorted for recycling at licensed landfills.
HB 1069, which would provide an income tax credit of up to $2,500 for the purchase of water- or energy-efficient equipment for new construction and retrofitting projects.
HB 1184, which would allow Georgians to purchase health insurance across state lines.
HB 1196, which would prohibit local governments from enacting building codes that require the installation of fire sprinklers in single- family residences or residential buildings with no more than two dwelling units.
HB 1199, which would allow the Department of Natural Resources to undertake several privatization efforts, including the sale of state parks' naming rights to corporate sponsors.
HB 1233, which would authorize the Public Service Commission to charge utilities for fees paid to expert witnesses in rate cases.
HB 1242, which would subject state Transportation Board members to the same ethics disclosure rules as legislators.
Merger defeated: After a lengthy debate, House members voted to soundly reject a proposal by Gov. Perdue that would have merged the state Department of Corrections and the Board of Pardons & Paroles. HB 1030 was defeated by a vote of 100 in opposition to 59 in favor.
