Georgia Association of REALTORS®
Friday, February 8, 2008
LEGISLATIVE BULLETIN
Every effort has been made to be accurate and complete in our descriptions of the contents of each act, but we caution you to rely only on the acts themselves and not solely on the summaries in this or any report. Seek appropriate counsel when needed.
SB 334 State Licensing Board of Home Inspectors (by Sen. David Shafer of Duluth) This bill creates a state licensing board and standards for home inspectors under the auspices of the Georgia Real Estate Commission. (Referred to Senate Regulated Industries & Utilities Committee)
SB 342 Water Conservation and Drought Relief Act (by Sen. Chip Pearson of Dawsonville) This bill gives additional powers and duties to the State Soil and Water Conservation Commission to obtain grants from the U.S. Government or any state agency to improve previously constructed dams and to assist in the construction of public water supply reservoirs. (Referred to House Natural Resources and Environment Committee)
SB 351 Statewide Water Planning Oversight Committee (by Sen. Bill Cowsert of Athens) A bill to create a joint statewide Water Planning Oversight Committee. The committee would consist of members of the Senate and House and would advise the General Assembly on implementation of any statewide water plan. This oversight committee would serve as a standing committee for both the House and Senate in regard to rules or regulations to implement a water plan and would serve as the appropriate body to object to any rules changes to the water plan. (Referred to Senate Natural Resources and Environment Committee)
SB 352 Statewide Water Plan Rules Changes (by Sen. Bill Cowsert of Athens) This bill works alongside SB 351 to clarify rules changes to the statewide water plan. It clarifies that certain rules changes will be required to comply with federal statutes or regulations. It also states that if any standing committee has an objection to a rule change, the agency director should consult with the committee prior to changing the rule. (Referred to House Natural Resources and Environment Committee)
SB 355 “Good Funds” Bill (by Sen. Preston Smith of Rome) This bill is a reaction to the collapse of HomeBanc Mortgage. Due to the lender going out of business, some real estate attorneys were left in limbo with funds paid by check in escrow. This bill came as a request from the Real Property Law section of the Georgia Bar, and is an attempt to make all money transfers at closing paid by wiring funds electronically. We have heard from representatives of the lending industry; they believe that how funds are paid at closing should be a market-driven decision, not a government mandate. This bill mirrors the language in HB 918. (Passed by Senate)
SB 368 Limit Restrictions Director of EPD May Place on Swimming Pools (by Sen. Chip Rogers of Woodstock) This bill states that the director of the Environmental Protection Division of the Department of Natural Resources shall not be permitted to restrict the use or maintenance of public, private or community swimming pools when imposing water restrictions. The language in this bill mirrors the language of HB 1005. (Referred to the Senate Natural Resources and Environment Committee)
SB 374 Lien Law (by Sen. Dan Weber of Dunwoody) This bill is the result of the Senate Lien Law Study Committee. GAR attended Study Committee hearings during this past fall and winter. There was a discussion about eliminating liens for expenditures of less than $50,000. Ultimately, the bill as introduced does not include that language and is mostly technical corrections to the lien filing process, with the addition of the notice of contest response to a lien filing. (Referred to Senate Special Judiciary Committee)
SB 375 Licensing of Mortgage Lenders and Mortgage Brokers (by Sen. Bill Hamrick of Carrollton) A bill to allow Georgia to participate in the creation of a nationwide automated licensing system for mortgage brokers and mortgage lenders. This bill permits the Department of Banking and Finance to establish and implement a multi-state residential mortgage licensing system, but ensures the department will retain exclusive authority over mortgage licensing whether this bill passes or not. The language in this bill mirrors the language of HB 921. (Referred to the Senate Banking and Finance Committee)
SR 686 Residential Property Assessment Freeze (by Sen. Eric Johnson of Savannah) A Constitutional Amendment (if passed by the General Assembly and approved by voters on a statewide referendum) to freeze existing property tax assessments based on 2008 valuations. Properties would be subject to annual re-evaluations, but any annual increase in value would not exceed an annual inflation percentage established by the state revenue commissioner. The revenue commissioner could use the Consumer Price Index to set the rate increase for urban residents. New construction, properties that had additions or improvements requiring a building permit and properties that sold to anyone other than a spouse would be appraised at their current fair market value. (Referred to Senate Rules Committee)
SR 701 Statewide Water Management Plan (by Sen. Ross Tolleson of Perry) By law, the Georgia Water Council had to submit a statewide water management plan to the General Assembly before the first day of the legislative session. The statewide water plan establishes regional councils to undertake a four-step process to monitor and assess water resources, forecast the need for water capacity, identify and manage practices to protect water resources and implement management practices. These regional councils are appointed by the Governor, Lt. Governor and Speaker of the House and will oversee regions which are broken down on a watershed-basin basis. This means regions will generally follow river basins while also keeping counties intact. The water plan adopted by the Water Council has now been adopted by the General Assembly as a joint resolution. With the adoption of HR 1022 and SR 701 the statewide water management plan has been ratified by the General Assembly and will now be sent to the Governor for approval.
SR 796 Property Assessment Freeze (by Sen. Chip Rogers of Woodstock) This bill will freeze the valuation of property and provides procedures and limitations of increases. The 2008 valuation amount for any individual parcel of residential real property may be increased during the 2010 taxable year by an amount not to exceed a 4% increase in such value and, for each taxable year thereafter, by an amount not to exceed a 2% increase in such value. The 2008 valuation for any individual parcel of nonresidential real property may be increased during any taxable year by an amount not to exceed a 6% increase in such value and, for each taxable year thereafter, by an amount not to exceed a 3% increase in such value. The percentage limitations of this provision shall not be construed to prohibit the mass appraisal of real property in a county. (Referred to Senate Rules Committee)
HB 89 “The Gun Bill” Carrying and Possession of Firearms (by Rep. Tim Bearden of Villa Rica) This bill has passed the Senate by Rules Committee substitute. The version of the bill that passed is drastically different than the original bill and is much improved over the committee substitute GAR agreed to last session. This version continues to state that employers cannot require as a condition of employment that an employee cannot enter their parking lot when the employee’s vehicle contains a firearm that is locked out of sight. This version also continues to specify that it shall not restrict the rights of private property owners to control access to their property. With leadership from the Governor, this version has improved by limiting the pool of gun owners who are protected by this bill from all gun owners to the roughly 300,000 holders of state-issued concealed weapons permits. It is important to consider that property owners will maintain the right to ban all firearms from their property at all times and property owners will have immunity from criminal actions from the use of firearms on their property unless the property owner commits the crime. (Referred to a Conference Committee comprised of 3 members from both House and Senate)
HB 895 Sales Tax Holiday For Energy and Water Efficient Products (by Rep. Kevin Levitas of Atlanta) A bill to exempt sales and use tax from the purchase of energy and water efficient products with a sales price of $1,500 or less purchased between October 2, 2008 and October 5, 2008. This bill would continue to include energy efficient products in the state sales tax holiday, but would now include water efficient products as well. Water efficient products include any products that meet or exceed the U.S. EPA’s water saving requirements or those products designated as meeting or exceeding the requirements of the Water Sense program. (Referred to House Ways and Means Committee)
HB 918 “Good Funds” Bill (by Rep. Roger Lane of Darien) This bill is a reaction to the collapse of HomeBanc Mortgage. Due to the lender going out of business, some real estate attorneys were left in limbo with funds paid by check in escrow. This bill came as a request from the Real Property Law section of the Georgia Bar, and is an attempt to make all money transfers at closing paid by wiring funds electronically. We have heard from representatives of the lending industry; they believe that how funds are paid at closing should be a market-driven decision, not a government mandate. This bill mirrors the language in SB 355. (Referred to House Judiciary Committee)
HB 921 Licensing of Mortgage Lenders and Mortgage Brokers (by Rep. James Mills of Gainesville) A bill to allow Georgia to participate in the creation a nationwide automated licensing system for mortgage brokers and mortgage lenders. This bill permits the Department of Banking and Finance to establish and implement a multi-state residential mortgage licensing system, but ensures the department will retain exclusive authority over mortgage licensing whether this bill passes or not. (Passed by House)
HB 925 Creation of New Townships (by Rep. Mike Jacobs of Atlanta) This bill provides the requirements for the creation of new townships in Georgia. It states that any local act creating a township shall be subject to approval by the voters of the area to be incorporated into a township by a referendum. It specifically states that a township shall not have nor exercise the power of eminent domain and will not provide services or share in the distribution of local sales and uses taxes. The bill goes into further detail about how townships will be created and governed. (Referred to House Government Affairs Committee)
HB 946 Retrofit at Resale (by Rep. Karla Drenner of Avondale Estates) A bill to require the retrofit of plumbing fixtures in both residential and commercial properties within the Metropolitan North Georgia Water Planning District prior to the sale or transfer of property for profit. This bill would be enforced beginning January 1, 2009, and would criminalize the sale of property that had plumbing fixtures that did not meet the bill’s standards as a misdemeanor crime. GAR staff has discussed this bill with the sponsor and has been assured she does not intend to move forward with the bill. (Referred to House Natural Resources and Environment Committee)
HB 947 Plumbing Fixtures Requirements and Tax Credits (by Rep. Karla Drenner of Avondale Estates) A bill to change the requirements of plumbing fixtures in buildings and structures and to provide an income tax credit for actual replacement of certain plumbing fixtures in existing residential or commercial buildings. This bill would increase the efficiency requirements of plumbing fixtures allowed to be installed in Georgia. This bill would require that all toilets installed in new construction after January 1, 2014, be “high-efficiency” toilets using 1.28 gallons per flush or less along with changing the requirements on other fixtures. Furthermore, this bill would require retailers to offer a certain percentage of their plumbing fixtures stock to be “high-efficiency” on a tiered scale and would eventually only allow the sale of “high-efficiency” fixtures. This bill would also institute an incentive to retrofit plumbing fixtures by offering tax credits to residential and commercial property owners. Credits of up to $100 would be offered for the retrofit of toilets and urinals, and credits of $10 would be offered for the retrofit of faucets and aerators. (Referred to House Ways and Means Committee)
HB 956 Zoning Procedures (by Rep. Doug Holt of Social Circle) This bill attempts to provide direct appeal of zoning decisions and consistency in the review of zoning decisions. This bill says that zoning decisions by local governments are open to appeal, but the burden of proof is on a property owner to prove that they have suffered significant detriment to the use of their property or that the zoning decision is not related to public health, safety, morality or general welfare. Furthermore, if a request for rezoning is being reviewed, the consideration shall be whether the property has value under its existing zoning or whether the owner will suffer economic loss if the property is not rezoned. (Referred to House Judiciary Committee)
HB 1005 Limit Restrictions Director of EPD May Place on Swimming Pools (by Rep. Sean Jerguson of Canton) This bill states that the director of the Environmental Protection Division of the Department of Natural Resources shall not be permitted to restrict the use or maintenance of public, private or community swimming pools when imposing water restrictions. The language in this bill mirrors the language of SB 368. (Referred to House Natural Resources and Environment Committee)
HB 1018 Superior Court Filing Fees & Electronic Recording of Instruments (by Rep. Roger Lane of Darien) This bill would add an additional $2.00 fee for the filing of any instrument that is required by law to be cross-indexed by the Clerk of Superior Court. Additional fees would be charged for the cancellation or release of instruments on record. Most importantly, this bill would require the Clerk of Superior Court to record instruments including but not limited to real estate, personal property, liens and plats electronically instead of entering manually in paper books or dockets. (Referred to House Judiciary Committee)
HB 1043 Lead Paint Abatement (by Rep. Sharon Cooper of Marietta) This bill removes an exemption for landlords owning less than 12 units from lead paint abatement requirements. By removing this exemption, the law would now apply to owners of residential rental property and landlords that accept compensation for the use of residential property by another. (Referred to House Committee on Children and Youth)
HB 1056 Metropolitan Area Transportation Plan Guidelines (by Rep. Steve Davis of McDonough) This bill says that no transportation plan developed by a metropolitan area planning and development commission shall become effective unless approved by the General Assembly by means of a joint resolution. (Referred to House Transportation Committee)
HR 1013 Property Assessment Freeze (by Rep. Kevin Levitas of Atlanta) A Constitutional Amendment to allow the General Assembly to freeze the assessment of property with respect to any or all ad valorem taxes. This law would allow the freeze of property assessments but would allow for annual or periodic adjustments in valuation or exemption. If passed, a property assessment freeze would not immediately be put into place, but a question would be placed on a statewide ballot, which would require the majority of voters to support in order to pass. If the ballot question passes, the General Assembly would then be allowed by the Constitution to implement a property assessment freeze. (Referred to House Ways and Means Committee)
HR 1022 Statewide Water Management Plan (by Rep. Lynn Smith of Newnan) By law, the Georgia Water Council had to submit a statewide water management plan to the General Assembly before the first day of the legislative session. The statewide water plan establishes regional councils to undertake a four-step process to monitor and assess water resources, forecast the need for water capacity, identify and manage practices to protect water resources and implement management practices. These regional councils are appointed by the Governor, Lt. Governor and Speaker of the House and will oversee regions which are broken down on a watershed-basin basis. This means regions will generally follow river basins while also keeping counties intact. The water plan adopted by the Water Council has now been adopted by the General Assembly as a joint resolution. With the adoption of HR 1022 and SR 701 the statewide water management plan has been ratified by the General Assembly and will now be sent to the Governor for approval.
HR 1033 Urging the Requirement for Water Conservation Measures in New Construction (by Rep. Karla Drenner of Avondale Estates) This is an urging resolution that would have no binding effect, but would simply state the will of the House of Representatives if passed, to urge the Department of Natural Resources to require certain water conservation measures in new construction. Among the conservation measures being urged are requiring subdivisions with 12 or more new homes or industries whose water consumption is 10,000 gallons per day or more to be connected to municipal sewage systems. Also, they would be urged to require new construction to be mandated to install low flow shower heads. These measures are urged to become effective January 1, 2009. (Referred to House Natural Resources and Environment Committee)
For more in depth coverage on major issues please refer to GAR’s grassroots report, The Legislative Link, or video updates via The Political Report.
Copies of Legislation are easily accessed via the Internet; go to http://www.legis.state.ga.us/ to check the status of any of the legislation outlined in this bulletin. Because the legislative process is constantly in motion, members of the GAR State and Local Government Affairs Committee should address questions regarding GAR’s position. Please contact the GAR office at (770) 451-1831 for the phone number of the member nearest you.
