Strong Bills, Strong Leadership

by Angela Holland
A s we look back on the first half of the session, we are knee-deep in advocacy work on behalf of GACS and the industry, during what may be one of the most significant legislative sessions in quite a while.  It’s because tort reform – taking action against lawsuit abuse– is on the table. But that’s not all we are tracking; GACS is monitoring quite a number of bills that have the potential to impact C-Store operators and service providers in Georgia.

Week One – Days 1-5
As it is the first year of the two-year term, the week was filled with the requisite pomp and circumstance, including the swearing-in of legislators and the election of officers (without surprise). On Tuesday, legislators and business leaders met for the annual Eggs and Issues breakfast.  On Thursday, the Governor gave his State of the State address outlining his legislative priorities and unveiled his budget proposals.  During the week, legislators introduced at least 10 bills to jump-start the GACS bill tracking efforts.  Bills include labor, COAM, SNAP, tax credits, tobacco tax increases, and others.  
 
First, we created a GACS Bill Tracking System; (Click to view and listen to the hearing: https://www.votervoice.net/GACS/bills)
 
Schedule
On the first day of the session, legislators adopted a resolution outlining the schedule for the entirety of the session. The current schedule sets crossover day (the final day that all bills must pass their originating chamber to continue) as Thursday, March 6th, and Friday, April 4th as Sine Die, the final day of the legislative session.
 
Annual Chamber of Commerce Eggs and Issues Breakfast
Speaker Burns committed his focus on: the impacts of Hurricane Helene, and education—including literacy and creating safe and secure learning environments. 
 
Lt. Governor Burt Jones mentioned championing a child tax credit to aid in families' ability to pay for childcare as well as infrastructure projects and tort reform. 
 
Finally, Governor Kemp mentioned his $530M commitment to support freight and logistics transportation infrastructure, $250M in water, wastewater, and solid waste infrastructure as well as his "robust legislative package that will bring balance to our proceedings and parity with our neighbors" in the tort liability system.  Further, the governor stipulated that tort reform is his number one priority.  

State of the State
On Thursday, Governor Kemp delivered his State of the State address, providing an update on the fiscal, economic, and related status of Georgia as well as his priorities for the coming session and year. The address focused on the challenges that the state faced and is facing, including the unprecedented damage from hurricanes and tornadoes, the impact of inflation, and "one of the biggest threats to Georgia’s future, (..) our state’s legal environment." After providing examples of the impacts of our unbalanced system, he warned, "But I also want to be very clear: there is always room for compromise, but there will be no room for excuses, half-measures, or failure. Whether it’s this legislative session, or a second one later this year, we will achieve meaningful, impactful tort reform," to the elation of many in healthcare and the business community.   
 
Also this week, GACS designated open days on the State Capitol Calendar for GACS members to spend the day at the State Capitol meeting with legislators and sharing our experiences. We must share our stories of being sued for things outside our control, that we are doing all the right things to keep our employees and customers safe, and that we express the difficulties in securing reasonable insurance for our businesses.  

THE ASK: we need YOU and YOUR associates to sign up for at least ONE of the open Capitol days on the State Capitol Calendar. Our goal is to have a retailer at the Capitol EVERY DAY during the legislative session.  We have shared this calendar with our retailer coalition, including the Georgia Retailers Association, Georgia Food Industry Association, and the National Federation of Independent Businesses.  

Week Two – Days 6-9
Completing the first quarter of the legislative session, this week’s highlights:
Tort
On Thursday morning, Governor Kemp held a jam-packed press conference outlining his reform package. 
 
Standing alongside Lt. Governor Burt Jones, Speaker Burns, Commissioner King, and leaders and regular citizens representing all walks of life, the governor said, "It is clear the status quo is unacceptable, unsustainable, and jeopardizes our state's prosperity in the years to come." Lt Governor Jones added, "We have to work together to ensure that we put families and consumers first by tackling the hidden costs we all pay thanks to Georgia's current tort laws." Speaker Burns reflected, "Our current legal environment is in need of common sense reform."  A few hours after the press conference, Senator John Kennedy introduced Senate Bills 68 and 69 on behalf of the Governor.  The bills were signed by 25 and 24 members of the republican caucus respectively. 
 
Of note, SB 68 introduced on behalf of Governor Kemp, seeks to rebalance the tort system.  This omnibus bill: reevaluates the standard for negligent security liability (premises liability); requires the calculation of damages based on the amount actually paid (vs phantom damages); eliminates anchoring pain and suffering damages to an artificial benchmark, bifurcates trials, allows the use or failure to use a seatbelt as a mitigating factor in damage apportionment, eliminates the double recovery of attorney's fees, and changes the civil practice act around dismissals.  
Legislators introduced a flurry of additional legislation:

Tobacco/Vape/Hemp
HB 96 increases the tobacco tax to the national average. The rate would adjust annually.

SB 33 adds delta: 8-11 to the Hemp Act from last year. Additionally, it reduces the amount of THC allowable to .3%.

Alcohol
HB 126 allows the Revenue Commissioner to authorize small businesses (whose alcohol revenue doesn't exceed $250,000, which isn't more than 25% of the businesses' total revenue from all sources) to sell or distribute alcohol that was purchased from retail dealers for on-premise consumption.  Note there would be an additional license required for such an activity.  

Tax
HB 111 introduced on behalf of Governor Kemp, lowers the state income tax from the current 5.39% to 5.19%. HB 112 introduced on behalf of Governor Kemp, provides a one-time tax credit from $250-$500 to individuals and families.  

Food
HB 117 requires food service establishments (restaurants, cafeterias, lunchrooms, cafes, etc) to provide notification of the country of origin on fresh, non-canned seafood items.  Such notice shall be on all menus, placards, etc.  

HB 163 requires all food service establishments (restaurants/ cafeterias etc) in the state that serve food products containing cell-cultured meat, plant-based meat alternatives, or both to conspicuously display on their menus, or placards visible to the public, disclosures stating that such food products contain cell-cultured meat, plant-based meat alternatives, or both.  Further, the bill stipulates that no food product containing cell-cultured meat, plant-based meat alternatives, or both shall be labeled, advertised, or otherwise represented by any food service establishment as constituting conventional meat products.

Insurance
HR 40 creates a study committee to look at property and casualty rates in Georgia, with a special interest in the: conditions, needs, issues, and problems and the terms and conditions necessary for public-private partnerships in Georgia's commercial property and casualty reinsurance market.
  
Labor
HB 135 prohibits discrimination (including in the workplace) based on hairstyles that are associated with race, color, or national origin.  SB 55 phases out the payment of sub-minimum wage to persons with disabilities. 
Week Three – Days 10-13
The two lawsuit abuse reform bills, Senate Bill 68 & 69, were assigned to the Senate Judiciary Committee.
 
Your GACS Government Relations Chair, Haley Bower-Frank, of Clipper Petroleum, is scheduled to represent the convenience store industry during this hearing.  (Click here to view and listen to the hearing.)

THANK YOU to the four GACS members who were at the capitol this week to lobby legislators on the importance and impact of reform on their constituents.  Combined, we visited more than 20 legislators who needed to hear our lawsuit abuse stories. 

This reform is not only about the stores we operate, but it is about the communities and folks we serve.
 
Additionally, these are the highlights among the bills introduced this week:
Alcohol
SB 85: allows alcohol dealers to offer coupons and discounts. Further, the bill increases the number of tastings allowed in a retail liquor store.  
SB 122: allows craft breweries to sell 3,000 barrels per year to retailers within a 100-mile radius. Additionally, the bill removes the daily purchase limit for off-premise consumption by individuals.

Cannabis/Hemp
HB 227: renames low THC oil as "medical cannabis", restricts certain advertising related to health claims, and increases the conditions that qualify for medical cannabis cards.  HB 265: further regulates CBD and the like, including limiting the total amount of THC to .3%.

General Business
SB111: seeks to protect the privacy of consumer data. 
 
Labor
HB 306: creates a cause of action (tort liability) for workplace harassment and retaliation.  HB311: seeks to protect older adults from age discrimination in the workplace.   HB 312: allows applicants for benefits to obtain their personnel files when their claims are contested by their former employers
 
Week Four – Days 14-17
A few weeks ago, many GACS members traveled to the State Capitol to support Governor Kemp's lawsuit abuse reform package.  One of those was Tommy Patel, owner of Susie Q’s Foods in Southwest Georgia.  His company is currently facing at least five lawsuits that he calls “a bunch of baloney” due to the state’s imbalanced legal system. “This legislation needs to pass and make life easier for all Georgians,” he said. (Click here to watch. Tommy’s interview.)
 
This week, Haley Bower-Frank, Clipper Petroleum, and GACS Government Relations Chairwoman traveled to the Capitol once again with a strong team from Clipper and a few of their retail dealers to share their stories with State Senators. 

There were a few more pieces of legislation that moved, most notably, Senate Bills 68 & 69, aka the Governor's Tort Reform Package.  After a marathon session in the Senate Judiciary Committee, the Governor's tort reform package, carried by Senator John Kennedy, passed.  The omnibus bill, including provisions related to truth in damages, anchoring, trial bifurcation, and negligent security (premises) passed on a party-line vote. The legislation related to third-party litigation financing passed with only one no vote. These bills now head to the Rules Committee for placement on the full Senate floor calendar.
  
Other bills of note moving forward:
Tax:  HR 42 ratifying the governor's executive order suspending the motor fuel tax passed the committee.  
 
COAM:  HB 74, tweaking the provisions related to the rulemaking process of the Lottery for COAM passed the House.
 
Highlights among the new bills introduced were:
Tax:  HB 425 provides for an income tax credit for convenience stores and grocery stores that purchase and/or install backup generators. The bill allows a 10-year carry forward.  

Retail
HB 431 exempts sales and excise tax from interchange fees (swipe fees).  HB 439 makes changes to vendor's compensation for the collection of certain taxes.  

Food
HB 398 allows cottage food producers to sell their products to food retailers/ grocery stores etc. so long as the retailer posts prescribed signage. 

Labor
HB 343 increases the minimum wage to $20 per hour for all employees other than solo practitioners.  The bill also provides for an annual COLA.   HB 375 excludes overtime compensation from income tax.  Additionally, there are employer reporting requirements.  HB 394 increases the minimum wage to $15 per hour.  HB 395 increases the minimum wage and makes modifications to the list of persons/entities/occupations exempted from minimum wage laws.   SB 164 prohibits surveillance-based price discrimination as well as surveillance-based wage discrimination.

General 
SB 155 presumably in response to tort reform efforts, seeks to further regulate insurance. The legislation: 1. prohibits insurance being sold outside an independent broker; 2. requires public hearings on premium increases above 10%; 3. requires DOI to create a database to compare insurance options; and 4. prohibits settling lawsuits to manufacture losses to justify premium increases.  

SB 156, like SB 155, presumably in response to tort reform efforts, seeks to further regulate insurance. The legislation: 1. prohibits insurance being sold outside an independent broker; 2. requires public hearings on premium increases above 10%; 3. requires DOI to create a database to compare insurance options; and 4. prohibits settling lawsuits to manufacture losses to justify premium increases.  This bill also requires 60 days written notice (return receipt requested) to not renew a policy.

Week Five – Days 18-21
Given we are now halfway through the session, with crossover day right around the corner (March 6th), the intensity and pace began to increase dramatically. 

Committee and Floor Action
Tort Reform 
Tort reform moved one step closer to reality but still has a long way to go.  On Friday, the Governor's omnibus tort reform bill, SB 68, carried by Senator John F. Kennedy, passed the Senate by a vote of 33-21.  The bill passed with one amendment related to the phantom damages portion of the bill. This bill will be read and referred to a House committee next week. Please keep the conversations going as we head to the House!!!!  Our success will continue to depend on your active engagement in the process.  

C-Store Specific
A subcommittee of Ways and Means had the first hearing on HB 425, which provides a dollar-for-dollar tax exemption for convenience stores for the purchase of a backup generator. This bill follows the challenges faced by convenience stores, government agencies, and communities after Hurricane Helene. There was a great deal of debate about whether the bill was needed, and fair, and if the state could afford the financial impact of implementation. We expect a committee substitute to be offered and will continue to advocate for the industry. A HUGE thank you to Representative  James Burchett (R-Waycross) for authoring the bill and working so hard with GACS on the language.  

Public Safety/ Nuisance
HB 295 provides procedures for real property owners to make claims for compensation from local governments for loss of property value or expenses incurred due to the local government's failure to comply with or enforce certain laws, ordinances, and resolutions, or due to the local government maintaining a public nuisance. This bill passed the committee. 
 
Truck Weights
HB 164 repeals the sunset on the allowable 10 percent variance on weight limitations for certain items.  The legislation provides for enforcement of the act.  This bill passed the committee.  

Among the new bills, here are the highlights:
Tort
SB 223 (Harold Jones) is the Democratic Caucus' premises (negligent security) bill. 

Fuel 
HB 485 repeals certain provisions in the law that were found by the courts to be unconstitutional.  Further, the bill adds a new code section that stipulates that "it shall be unlawful for any person engaged in the sale of octane or cetane fuels in this state, in the course of such sales, to pay, grant, receive, or accept anything of value as a commission or other compensation, or any allowance or discount in lieu thereof, except for services rendered in connection with the sale or purchase of the product, either to the other party to such transaction or to an agent, representative, or other intermediary therein where such intermediary is acting in fact for or in behalf of or is subject to the direct or indirect control of any party to such transaction other than the person by whom such compensation is granted or paid."  View the bill here.  https://www.legis.ga.gov/legislation/70408

Alcohol
SB 194 (Hufstetler) authorizes and regulates the limited production of home-distilled spirits for personal use.  SB 229 (Anavitarte) prohibits wholesale alcohol dealers from selling or distributing consumable hemp products.  HB581 relates to craft breweries.  The bill removes the daily, off-premise sales limitations for individuals, and it allows breweries to sell directly to retailers within 100 miles.  

Tobacco/ Vape
HR 304 (Au) creates a study committee on the costs and effects of smoking.  HB 557 creates a vapor product directory at the Department of Revenue which provides a listing of products eligible for purchase/sale. 
 
Gaming/COAM/ Gambling
SB 208 (Hickman) authorizes and regulates sports betting. The bill provides for a tax on adjusted gross revenue of 25% and exempts it from any other tax, including income tax.

Retail
HB 447 creates a new crime and related punishments related to gift card related crimes, including fraud, forgery, and theft.  HB 499 removes the sales tax on period products. SB 183 exempts certain baby products from sales tax.  

SB 224 (Harrell) provides for the establishment of a voluntary do-not-sell list for firearms.  The bill makes it a felony for a retailer to sell firearms to someone on the list.  Further, there are provisions for healthcare providers and probate judges to submit the form for the individual wishing to be placed on the list.  

SNAP/TANF
HB 500 increases the access and length of time an individual may qualify for TANF.  HR 272 urges Congress to allow certain work (including volunteer work) performed by college students, regardless of whether it was performed for pay or as a volunteer, to count toward any SNAP work requirements.  

General Business
SB 226 creates Peach State Saves, a defined contribution plan for eligible employers & employees. There are penalties for failing to enroll employees.  

Final Thoughts
While quite a lot of space in this recap has been devoted to tort reform, it’s because this is our best shot.  Nevertheless, GACS remains vigilant when it comes to all of the legislation that can impact our industry. 

We need your support. Every retailer stands to benefit from the work GACS does. The more voices we have presenting a unified message, the stronger our industry will become; and a stronger industry means your business will be better equipped to serve your customers and communities. 

During session, you pay attention and respond. Thank you to every one of you who participate by contacting your legislators.  It makes a difference.
Georgia Association of Convenience Stores.  All Rights Reserved.
168 North Johnston Street, Suite 209  |  Dallas, Georgia 30132
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