Georgia House OKs budget line item for freight rail

ATLANTA – Investments in freight rail would land a permanent spot in annual state budgets under legislation the Georgia House of Representatives passed overwhelmingly on Monday.

House Bill 820, which was approved 162-1 and now heads to the state Senate, was among the recommendations of the Georgia Freight & Logistics Commission, a task force of legislators, business leaders and logistics industry executives formed last year to look for ways to move freight more efficiently through the state.

While the bill does not guarantee state funding of freight rail projects, giving freight rail a permanent line item in the budget would encourage more state investment in badly needed rail improvements, said House Transportation Committee Chairman Kevin Tanner, the measure’s chief sponsor.

“We have a shortfall in investment in rail infrastructure in our state,” Tanner, R-Dawsonville, told his House colleagues before Monday’s vote. “There’s just not enough dollars in the budget.”

Tanner said freight rail investment is particularly needed at the Port of Savannah, where the amount of cargo handled each year is expected to double by 2040.

House Majority Leader Jon Burns, R-Newington, said only 27% of freight moved through Georgia travels by rail.

“Anything we can do to increase that number will take traffic off our roadways,” he said.

The Georgia Freight & Logistics Commission was due to complete its work by the end of last year. However, a separate bill sponsored by Tanner calls for keeping the task force alive through 2020.

A report the commission released recently identified a series of challenges facing freight transportation in Georgia. Tanner’s bill asks for additional time so the commission can come up with solutions to those challenges.

Sports betting legislation hits Georgia Senate

ATLANTA – Sports betting would become legal in Georgia without the need to go to voters with a constitutional amendment under legislation introduced in the state Senate.

Senate Bill 415 would establish an app-based system allowing Georgians to bet on sports online. The legislation is modeled after laws in Tennessee and New Hampshire, states that offer online sports betting only because – like Georgia – they don’t have the brick-and-mortar casinos that typically house sports betting operations.

Georgians already are betting $1.5 billion illegally on sports every year without the state collecting any tax revenue from it, said Sen. Burt Jones, R-Jackson, the bill’s chief sponsor.

“We just want to regulate and control something that’s already going on,” he said.

Supporters of legalizing gambling have been pushing for years to bring casinos to Georgia and/or pari-mutuel betting on horse racing. Sports betting only became an option in 2018 when the U.S. Supreme Court overturned a federal law prohibiting states from legalizing gambling on sports.

All efforts to legalize gambling in the Peach State have failed because they have involved constitutional amendments that require two-thirds majorities in the Georgia House and Senate, a level of support the measures’ sponsors have been unable to muster.

On the other hand, Jones’ sports betting bill would not change Georgia’s Constitution and, thus, would require simple majorities of the two legislative chambers of pass. Also, if it clears the legislature, it would not be put before voters in a statewide referendum, as is the case with all constitutional amendments.

“l’d rather the citizens have a say on it,” Jones said. “But two-thirds of the legislature has never allowed that to happen.”

Jones said he has received a legal opinion from legislative counsel that legalizing sports betting would not require a constitutional change because it would be operated essentially as a lottery game by a newly created state commission overseen by the Georgia Lottery Corp.  

Those placing bets would have to be at least 21 years old and physically located in Georgia, a provision that would be enforced through geo-fencing technology.

Businesses licensed to offer sports betting online would pay a 10% tax on their adjusted gross incomes. The vast majority of the tax proceeds – 95% – would go to education, while the other 5% would be allocated to the state Department of Behavioral Health and Developmental Disabilities.

Bets could not be placed on college games.

The bill has been referred to the Senate Regulated Industries Committee.

UGA, Georgia Tech presidents balk at in-state early admissions quota

The Arch at the University of Georgia

ATLANTA – A bill requiring the University System of Georgia to raise the percentage of in-state students offered early admission to the state’s top public universities drew opposition Thursday during a legislative committee hearing.

The presidents of the University of Georgia and Georgia Tech told members of the Senate Higher Education Committee the legislation is unnecessary and would lower the standards for admission to the university system’s top campuses.

Senate Bill 282 would require the university system’s four research universities – UGA, Georgia Tech, Augusta University and Georgia State University – to make sure at least 90% of students offered early admission are from Georgia.

The schools, particularly UGA and Georgia Tech, have become increasingly hard to get into since the HOPE Scholarship program was created during the 1990s. The lottery-funded program covers all or most tuition costs for qualified students, a strong motivator for the highest achieving Georgia high school students to attend college in state.

“I want to keep our best and brightest kids here,” said Sen. Brandon Beach, R-Alpharetta, the bill’s chief sponsor.

But University of Georgia President Jere Morehead said the 90% mandate is unnecessary because UGA already enrolls a high percentage of in-state students. He said 88% of UGA’s current cohort of undergraduates is from Georgia, while in-state students account for 82% of the freshman class.

Morehead also argued the 90% in-state requirement for early admissions would skew UGA’s student population more toward Georgia’s urban and suburban communities because most students accepted early are from metro Atlanta or the Savannah, Augusta or Columbus areas. Consequently, the bill would “disenfranchise” rural Georgia students, he said.

Georgia Tech President Angel Cabrera said the legislation would damage the state’s economy by dissuading out-of-state students from seeking early admission to Tech, which has built a national reputation and competes with prestigious public universities including the University of California-Berkeley.

High achieving out-of-state students who come to Tech tend to stay in Georgia and provide the backbone for the state’s fast-growing technology industries, Cabrera said.

“Attracting students from out of state is increasingly important to our economy,” he said. “They are the reasons companies across the nation are increasingly calling Georgia home.”

While many of the students admitted early to Georgia Tech are from out of state, Cabrera said in-state students still account for 60% of the university’s total enrollment.

Sen. Brian Strickland, R-McDonough, suggested moving away from the 90% mandate and simply requiring the research universities to consider whether an early admission applicant is from Georgia in deciding offers.

But university system Chancellor Steve Wrigley argued there’s no need to tinker with what the universities are already doing.

“Their approaches make sense,” he said. “Both institutions are self-conscious about Georgia students. What they’re doing now is working.”

The committee took no action on the bill Thursday, and it’s uncertain whether or when a vote will take place.

Georgia House backs measure limiting governments’ protection from citizen lawsuits

ATLANTA – The state House of Representatives took another crack Thursday at legislation giving Georgians the legal ability to sue the state and local governments.

The House unanimously passed a constitutional amendment targeting the doctrine of sovereign immunity, a centuries-old legal concept that holds the “sovereign” – or government – cannot be sued without its consent.

Lawmakers have adopted previous versions of the measure twice in the last four years. But both Gov. Brian Kemp and his predecessor, Nathan Deal, have vetoed it, arguing it would hurt the government’s ability to function.

The legislation stems from Georgia Supreme Court rulings in recent years that broadly interpreted sovereign immunity. But those decisions also opened the door for the General Assembly to amend Georgia’s Constitution to give citizens a limited right to sue, essentially inviting lawmakers to take up the constitutional change.

Under the proposed amendment, plaintiffs could sue when a government agency or official causes harm to them by enforcing an unconstitutional law or regulation. It would apply to lawsuits seeking either declaratory judgement or injunctive relief but would not let plaintiffs seek to recover monetary damages or attorney fees.

“It is a limited waiver,” said Rep. Andy Welch, R-McDonough, the measure’s chief sponsor. “It has one purpose: to protect our constitutional and statutory rights.”

Rep. Rick Williams, R-Milledgeville, said he was worried the legislation could be used to target members of state regulatory boards carrying out their duties.

But Welch said the legislation would allow lawsuits only against a state or local government agency or agency board, not an individual.

“You have the power to open up the courthouse so people can come and sue if they think the government has violated their constitutional rights,” Welch told his House colleagues Thursday. “Let the third branch of government be a check on the other two branches.”

The constitutional amendment now moves to the Senate.

Georgia House OKs mid-year budget

ATLANTA – The Georgia House of Representatives passed a mid-year budget Wednesday that would restore many of the spending cuts Gov. Brian Kemp proposed last month to help offset lower-than-expected tax collections.

The $27.4 billion fiscal 2020 mid-year budget, which passed 126-46 and now moves to the state Senate, covers state spending through the end of June. It  reflects a lower revenue estimate the governor issued in January amid sluggish tax receipts going back to the middle of last year.

The mid-year budget includes $159 million in state funding reductions and eliminates or delays filling 1,255 vacant positions. But during days of hearings that prompted a break in this year’s General Assembly session, the House Appropriations Committee still managed to fully restore cuts the governor recommended to the state’s accountability courts and county health departments.

“We tried our best with this budget to address the needs of Georgians,” House Speaker David Ralston, R-Blue Ridge, told reporters after the vote.

For many budget line items, the House wasn’t able to fully restore planned cuts but acted to reduce the severity of the reductions. Lawmakers put back significant portions of cuts slated for mental health and child welfare services and restored all of a $164,800 reduction to the Georgia Memory Net program.

“If you haven’t dealt with dementia or Alzheimer’s yet, you will,” Appropriations Committee Chairman Terry England, R-Auburn, told his House colleagues. “Get ready.”

The House also restored funds used to market the state’s farm products as well as marketing money for the Georgia Department of Economic Development’s Global Commerce and Tourism divisions.

Lawmakers also rejected reducing spending on equipment and operations at state parks and historic sites.

England said they not only put money in the coffers of local governments in rural communities but provide Georgia families a place to get away and enjoy nature.

“It’s important that we continue to maintain these sites in a way that makes them attractive,” he said.

A tourist attraction operated by the Georgia Department of Natural Resources – the Historic SAM Shortline Excursion Train from Cordele to Plains – received $250,000 in one-time funds from the House.

House Minority Leader Bob Trammell praised members of the Appropriations Committee for working hard to limit the impact of the cuts in the mid-year budget.

But he said the culprit behind Georgia’s budget crunch is the income tax cut the Republican-controlled General Assembly passed two years ago, which cost the state $550 million a year in tax revenue.

“When unemployment is at a record low and the economy is doing very well, we are cutting Georgia’s budget,” said Trammell, D-Luthersville. “The choices we are making are choices we’re supposed to have to make when times are tough. … We’re having to cut when times are good.”

But Ralston said the economic damage Hurricane Michael wreaked on Georgia farms and forests in October 2018 is to blame for the downturn in tax collections.

“It was a crippling blow to our economy,” he said. “We’re still paying for that.”

Lawmakers will face steeper spending cuts when they tackle Kemp’s fiscal 2021 budget later in this year’s session.

But England said the mid-year budget has been more challenging because lawmakers will have more time and, thus, more flexibility, in dealing with next year’s spending.