The Georgia General Assembly met in a flurry of activity last week as they completed the first quarter of the legislative calendar after meeting on Friday for legislative day 10 of 40.

On Monday, GDOT’s Director of Planning Jannine Miller presented to the first Senate Transportation committee meeting of the 2024 legislative session. Her presentation primarily focused on Georgia’s freight and logistics outlook over the next several decades with an emphasis on freight movement on Georgia’s roadways. GDOT’s Planning Division estimates that by 2050, freight movement will nearly double in weight to 900 million tons and will more than double in value to $1.6 trillion. Ms. Miller and her team further surmise that if no significant investments are made in Georgia’s freight and logistics infrastructure by 2050, congestion costs (estimated delays for shippers) will double for the manufacturing industry, quadruple for the distribution & retail industry, and increase by roughly 80% for food and agriculture; all other industries will experience an estimated 125% congestion cost increase. It’s important to note here that this analysis has only been done for freight, not for the day-to-day Georgia commuting on the state’s roadways.

The Savannah area also presents an opportunity for targeted investments. Due to the Port’s popularity with shippers, the Planning Division believes that without targeted investment, by 2050 roughly 40% of the available industrial space would be over an hour drive from the Port, which will increase costs for shippers and distributors tremendously. Currently, most industrial space is only a 10-to-20-minute drive. The Planning Division has identified 12 recommended improvements to existing lanes and corridors throughout the area, as well as 12 intersection and interchange improvements. These improvements are estimated to cost roughly $1.4+ billion. The total of additional investments needed across the state, according to the Planning Division, is $90 billion (most of these dollars are identified as an additional need on top of estimated annual funding) in funding over a 25-year period to improve both freight and people flow on Georgia’s roadways.

After the presentation, Chairman Greg Dolezal (R-Cumming) stated that over the next year, through surplus funding, federal funding, and regular GDOT appropriations, there will be roughly $4 billion for GDOT to invest in the state for existing needs. Chairman Dolezal stated that he believes that there is a generational opportunity to invest the state’s existing surplus to fund the additional priorities and that he would personally like to utilize those existing dollars rather than raise taxes or fees to provide additional revenue. He further states that they believe that there is likely 10 years left on the gas tax that results in $2.2 billion annually for the state, but that will eventually change as gas fueled cars begin to phase out at a quicker rate.

Afterwards, Josh Waller with GDOT presented SB 353 by Chairman Dolezal, which is a combination of this year and the last 2 years of GDOT’s annual housekeeping bills. The provisions include: updating the notice procedure for GDOT Board elections (allowing for email notifications); allowing the Department to issue a Request for Proposal Revisions during the negotiation phase of a public-private partnership; a clean up of terms for alternative contracting methods; conforms the length of modular housing units that can move on roadways with federal standards; allows a coroner to delegate their authority to establish a death on Georgia’s roadways; and clarifies that personally identifiable information of individuals moving along Georgia’s roadways, including tolling data, is not subject to Georgia’s Open Records Act. The committee passed the bill unanimously.

On Thursday, Commissioner Russell McMurry presented to the first House Transportation Committee meeting of the session on GDOT’s revenue sources and this year’s budget. Commissioner McMurry began by expressing his tremendous gratitude to the Governor for his historic $1.5 billion investment of surplus dollars in the amended fiscal year budget. Additionally, the commissioner explained that the national highway construction cost index has greatly outpaced the Consumer Price Index (CPI). Nationally, there has been a 51% increase in highway construction costs over the last 3 years. Further, there has been an 80% increase in the cost of asphalt resurfacing from December 2020 to October of 2023. The Commissioner stated that resurfacing every one mile of a 12-foot-wide lane now costs roughly $150,000, up from $80,000 a mile per 12 foot wide lane. The Commissioner stressed the importance of funding and targeted investment, not only to keep Georgia competitive but to keep up with a growing population and overall freight movement.

In tax relief news, the House Majority Caucus last week announced a tax relief package for Georgians:

• Representative Lauren Daniel (R-Locust Grove) will sponsor a bill aimed at increasing the child tax deduction from $3,000 to $4,000
• Representative Matt Reeves (R-Duluth) will introduce legislation to increase the homestead tax exemption from $2,000 to $4,000
• Chairman Shaw Blackmon (R-Bonaire) has introduced legislation to remove the cap on the revenue shortfall reserve (commonly known as Georgia’s “rainy day fund”)
• Representative & Governor’s Floor Leader Lauren McDonald (R-Cumming) will introduce legislation to accelerate the state income tax reduction from 5.75% to 5.39%

ACEC Georgia’s priorities this year remain passing legislation requiring local governments to procure engineers and architects through qualifications-based selection (QBS), supporting additional freight and logistics investments and tort reform. Currently, there are no new tort reform bills of interest; however, our QBS proposal has been submitted to the Legislative Counsel’s Office, who will draft the legislation. We expect an update from them within the next week or so.

The week ahead: the legislature will meet for Legislative Days 11 through 14 this week. Don’t forget to save the date and register to attend our annual Engineers Day at the Capitol on February 13^th!

LEGISLATION ACEC GEORGIA IS FOLLOWING:

Industry & Professions 

HB 267 by Representative Tyler Paul Smith (R-Bremen): would allow an individual to pursue a civil action and seek injunctive relief if an employer, other than a governmental entity, fails to withhold taxes properly from wages paid to an employee.

Status: Currently in the House Judiciary Committee  

ACEC Georgia is reviewing this legislation

HB 880 by Representative Bethany Ballard (R-Warner Robins): proposes to allow military spouses with an existing license in good standing from another state to bypass licensure board approval in order utilize their out-of-state license to work in Georgia. Numerous successful proposals have worked to create a more friendly licensure environment in Georgia for military spouses, including a 90 day shot-clock for board action after receiving a comity license application, and expedited licensure by endorsement, which simplifies the process of comity applications and requires these applications to be considered before any others may. We are opposed to any legislation that bypasses the licensure board and undermines the board’s authority to approve licenses, particularly for those licenses which exist to protect the health, safety, and welfare of the public.

Status: Assigned to the House Regulated Industries Committee; assigned to the Regulatory subcommittee of House Regulated Industries

ACEC Georgia opposes this legislation.

HB 982 by Representative Matt Gambill (R-Cartersville): would require the State Workforce Development Board to develop, approve, and annually publish a high-demand career list identifying careers that are experiencing the most dire workforce shortages.

Status: Assigned to the House Higher Education Committee; received a hearing this past week but was not voted out of committee yet.

ACEC Georgia supports this legislation.

SB 157 by Senator Brian Strickland (R-McDonough): proposes several changes relating to the application process for occupational licenses in Georgia by individuals with criminal records. This bill clarifies what types of crimes would disqualify an individual from receiving a license, creates an appeals process for an individual who may have been denied a license based on their criminal record or other unknown or undisclosed reason, and creates a “preclearance” process for determining whether an individual's criminal record will disqualify them from obtaining a license before paying and completing required education and training for that license. This bill aims to decrease regulatory burdens and streamline burdensome and onerous licensing processes.

Status: Passed the Senate Judiciary Committee. Passed the Senate by a vote of 55-0 in 2023. Currently in the House Judiciary Non-Civil Committee.

ACEC Georgia supports this legislation

SB 186 by Senator Greg Dolezal (R-Cumming): would revise the premises liability law to limit the cause of action currently available for individuals injured by an unrelated third party on a landowner’s property. The bill would require a plaintiff to prove that the landowner compelled the third party’s action, had knowledge of a specific threat, or could have reasonably intervened in the situation that resulted in injuries to the plaintiff. This would also create a process for apportionment of damages between the third party and landowner. 

Status: Passed to the Senate Insurance & Labor Committee; sent back to the Insurance & Labor Committee. This bill may be reconsidered this session.

ACEC Georgia supports this legislation

SB 200 by Senator Bill Cowsert (R-Athens): is what is known as the “Apex Doctrine”. It would create a process for which a c-suite or other high-level executive within a corporation can petition a court to show that a requested deposition is unnecessary or burdensome. Under current law, if a company is the defendant in a suit, the plaintiff may request a deposition of top-level executives, even when they are not involved in any capacity.

Status: Passed the Senate Regulated Industries & Utilities Committee; sent back to the RI&U Committee. This bill may be reconsidered this session.

ACEC Georgia supports this legislation

SB 374 by Senator Larry Walker (R-Perry): this bill comes at the request of SAMSOG. The bill proposes to revise education requirements for land surveyors by reducing the number of years of experience needed by 1 year, and would allow decoupling of the exam and experience so that new surveyors in training can take their professional examination after completing the required education requirements rather than after completing their experience after several years of being out of school.

Status: Assigned to the Senate Regulated Industries & Utilities

ACEC Georgia supports this legislation

Transportation 

HB 406 by Representative Rick Jasperse (R-Jasper): is a proposal that combines four of the recommendations from the Joint Study Committee on the Electrification of Transportation. These recommendations include: vesting oversight and inspection powers over electric vehicle charging stations in the Agriculture Commissioner to ensure uniformity and proper maintenance; allowing the existing motor fuel excise tax to be levied on electricity used to charge vehicles (by creating a kilowatt “gallonage equivalent”); allows the sale of electricity by the kilowatt hour. SB 146 by Senator Steve Gooch is the Senate companion bill.

Status: Passed out of the House Technology and Infrastructure Innovation Committee. Passed the House, 161-0; passed the Senate Regulated Industries Committee. Sent back to the Senate RU&I committee; this bill may be reconsidered this session.

ACEC Georgia is monitoring this legislation

HB 617 by Representative Rick Jasperse (R-Jasper): is a freight & logistics planning bill, which would create a state-wide freight and logistics implementation plan which would be overseen by the planning director within the Planning Division of the Georgia Department of Transportation.

Status: Passed out of the House Transportation Committee; sent back to the Transportation Committee. This bill may be reconsidered this session.

ACEC Georgia supports this legislation

Water & Environmental 

HB 206 by Representative Steven Sainz (R-St. Marys): would create Commercial Property Assessed Conservation, Energy, and Resiliency Development Authorities and would allow some qualifying entities to pay for qualifying energy efficiency and renewable energy improvements through commercial property-assessed clean energy (C-PACE) financing options.

Status: Passed the House Governmental Affairs Committee; passed the House 134-38. Assigned to the Senate State & Local Governmental Operations Committee, which held a hearing on the bill on March 16th but no vote was taken. This legislation may be reconsidered this session

ACEC Georgia is monitoring this legislation

Local Government 

HB 146 by Representative Derek McCollum (R-Chestnut Mountain): proposes to expand the definition of “municipality” as it relates to water and sewer projects and costs tax (MOST) to include any municipality with a corporate boundary that extends into three or more counties.

Status: This bill received a hearing in the House Ways & Means Committee, but has not yet been considered for a vote. This bill may be reconsidered this session.

ACEC Georgia is monitoring this legislation

HB 461 by Representative Brad Thomas (R-Woodstock): would clarify that the proceeds of regulatory fees charges by local governments be used only to fund the regulatory activity the fee is imposed for and prohibit local governments from utilizing these fees as a profit generator or to be utilized for general expenses.

Status: Assigned to the House Ways & Means Committee. This bill received a second hearing in the income tax subcommittee of Ways & Means this past week. The full committee will likely take it up this week.

ACEC Georgia is monitoring this legislation

HB 514 by Representative Dale Washburn (R-Macon): places a shot clock of 180 or fewer days on moratoriums on new housing construction by local governments to eliminate the ability for local governments to conduct indefinite moratoriums, previously the bill only dealt with single family home construction, this bill was amended in the Senate Economic Development Committee to include multi-family homes. This bill also creates exemptions to the shot clock for natural disasters, feasibility planning, or state of emergencies.

Status: Passed the House Governmental Affairs Committee; passed the House 127-43. Passed the Senate Economic Development & Tourism Committee with the multi-family home construction moratorium. Passed the Senate 42-12 with an amendment on waiving impact fees for workforce housing projects (SB 136). This bill is currently in a conference committee, which will come out with a report that will likely be passed by both chambers.

ACEC Georgia is monitoring this legislation

HB 516 by Representative Derek McCollum (R-Chestnut Mountain): is the annual GDOT housekeeping bill. Currently, GDOT is prohibited from negotiating any contract for the construction or maintenance of a public road involving the expenditure of $200,000 or more. The bill proposes to increase that limit to $500,000. The bill also revises various provisions of the public-private-partnerships including eliminating duplicative public comment processes.

Status: Passed out of the House Transportation Committee. Failed to make the Crossover Deadline. This legislation may be reconsidered this session. SB 353 by Senator Dolezal contains provisions found in this bill. SB 353 will likely be the new GDOT housekeeping bill of 2024.

ACEC Georgia is monitoring this legislation

HB 517 by Representative Dale Washburn (R-Macon): proposes to prevent local governments from regulating various building design elements, such as the style of porches and the number of bedrooms in a housing unit. Proponents of this legislation say this would reduce the cost of regulation and therefore reduce the cost of building new homes. Opponents of the bill state this is an overreach on local control.

Status: Assigned to the House Government Affairs Committee. This bill may be reconsidered this session.

ACEC Georgia is monitoring this legislation

HB 1044 by Representative Victor Anderson (R-Cornelia): current state law requires all local governments to utilize a competitive selection process for any public works project estimated to be $100,000 or more. This proposal would raise the threshold for local governments and state agencies from $100,000 to $250,000. Last year, the Governor vetoed the bill because he wanted it to include state agencies. The new proposal addresses that concern.

Status: This bill has been assigned to the House Governmental Affairs Committee.

ACEC Georgia supports this bill

SB 136 by Senator Mike Dugan (R-Carrollton): would allow local governments to waive impact fees for workforce housing projects.

Status: This bill has passed the Senate Economic Development & Tourism Committee. Passed the Senate 49-4. Passed the House Governmental Affairs Committee—Dugan has resigned, but another Senator is rumored to be interested in picking this legislation up.

ACEC Georgia is monitoring this legislation

SB 156 by Senator Randy Robertson (R-Cataula): would revise county special purpose local option sales taxes (SPLOST), for consolidated governments only, to allow the proceeds of the SPLOST to be utilized to establish a maintenance reserve fund for newly approved projects. However, a limit of 5% of the annual proceeds of the SPLOST may be deposited into the reserve fund.

Status: Assigned to the Senate Finance Committee. This bill may be reconsidered this session.

ACEC Georgia is monitoring this legislation

SB 161 by Senator John Kennedy (R-Macon): creates cyber security requirements and an external data privacy program for contractors doing work with local governments. The external data privacy program would include quarterly scans for each of its employees’ personally identifiable information, an annual privacy risk assessment, annual privacy training, among other provisions. We are currently reviewing this legislation.

Status: Assigned to the Senate Science & Technology Committee. This bill may be reconsidered this session.

ACEC Georgia is reviewing this legislation

SB 171 by Senator Max Burns (R-Sylvania): would provide lien rights for contactors who preform work for a development authority if the development authority does not pay for that work. Currently, there are no remedies for situations where development authorities do not pay their contactors, this bill aims to give contractors a remedy for unpaid payments.

Status: Passed the Senate Economic Development & Tourism Committee, but sent back after it was never considered on the floor. This bill may be reconsidered this session.

ACEC Georgia supports this legislation

SB 353 by Senator Greg Dolezal (R-Cumming): is a combination of the last 3 years of GDOT’s annual housekeeping bill. The provisions include: updating GDOT board voting procedures (allowing for email notifications); a clean up of terms to all RFPs to also have RFPVs, which would be a RFP with versions; a clean up of terms for alternative contracting methods; conforms the length of modular housing units that can move on roadways with federal standards; allows a coroner to designate an individual in absentia to officially establish a death on Georgia’s roadways; and clarifies that open records or data cannot be used to determine personally identifiable information of individuals moving along Georgia’s roadways.

Status: Assigned to the Senate Transportation Committee. The committee passed the bill unanimously.

ACEC Georgia supports this legislation