August 5th, 2020 marked the conclusion of the bill signing period following one of the longest legislative sessions in Georgia history. In addition to the constitutionally mandated appropriations acts, the legislature passed 611 pieces of legislation this biennium. These measures included COVID-19 liability protections for certain entities, including governmental organizations, the imposition of a marketplace facilitator tax, along with legislation affecting development and tax-exempt bond activities. Below is a brief summary of these initiatives:
Senate Bill 359 “COVID-19 Pandemic Business Safety Act”
SB 359, which passed both chambers in the final hours of the 2020 legislative session, aims to limit businesses and employers’ exposure to civil claims arising from a “COVID-19 liability claim” arising prior to July 14, 2021. This protection extends to a broad swath of entities, including political subdivisions, counties, and municipalities, absent a showing by the claimant of gross negligence, willful and wanton misconduct, reckless infliction of harm, or intentional infliction of harm. In addition to this safe harbor, SB 359 provides for a rebuttable presumption of assumption of the risk in cases involving transmission, infection, exposure, or potential exposure of COVID-19 (excluding instances of gross negligence, willful and wanton misconduct, reckless infliction of harm, or intentional infliction of harm). This presumption is created by receipt or proof of purchase or entry, or by posting of a sign at a point of entry that complies with the requirements set forth in the bill. The specific requirements may be found at line 123 here:
House Bill 276 “Market Place Facilitator Tax”
Effective April 1, 2020, HB 276 requires the collection and remittance of sales tax from retailers coordinating the sale of products or services in Georgia. This expansion captures online platforms that facilitate yearly sales in excess of $100,000. Projections estimate that this act could generate between $62.9 and $70.7 million in additional local revenue in year one.
Senate Bill 43 “Gas and Electric Transmission Projects”
SB 43, signed into law by Governor Brian Kemp, expands the list of authorized undertakings for the purposes of issuing revenue bonds to include gas or electric “transmission” projects. Additionally, a governmental body with electric utility assets in excess of $300 million is no longer required to hold a referendum prior to issuing revenue bonds for the purposes of buying, constructing, extending, operating, or maintaining electric generating, transmission, or distribution systems.
SB 309 “Georgia Municipal and Local Government Infrastructure Authority”
SB 309, the subject of our post on February 17, 2020, which would have dramatically impacted your involvement in your client’s bond issues, was not brought to the floor for a vote in the Senate after a substitute was passed out of committee.