Legislative Watch

Things are off to an interesting start in the Georgia State Legislature as several joint appropriations hearings were cancelled last week due to inclement weather around the state. However, some committees were able to meet in a virtual or hybrid format, including the House Appropriations Subcommittee on Higher Education. During this meeting, committee members received positive reports from the University System of Georgia’s Chancellor Sonny Perdue, Commissioner Greg Dozier of the Technical College System of Georgia, and Lynn Riley, President of the Georgia Student Finance Commission. For those who are interested, this subcommittee hearing can be viewed here.

In lieu of what is typically an in-person speech made by the Governor at the beginning of budget week, Kemp issued a statement last Thursday outlining his budget goals for AFY25 and FY26. The statement emphasized the importance of supporting state-wide recovery efforts from Hurricane Helene, addressing inflation and costs of goods, and strengthening the state’s education and workforce development programs.

On the matter of tort reform, Governor Kemp will be holding a press conference at 11:00AM on Thursday morning at the State Capitol, where he will be releasing his legislative proposals for tackling this issue. It is sure to be a packed room as he reveals this highly anticipated legislation. We will keep you updated as we will soon have a clearer understanding of what this means for our industry.

Yesterday morning the House of Representatives first read HB 139, legislation relating to the 340B drug discount program. We are monitoring this situation closely and working with our Policy & Advocacy Committee to gather information and formulate a plan of action.

Finally, a bipartisan group of state senators filed a Medicaid expansion bill, SB 50, on Tuesday. The bill also calls for creating a bipartisan commission to oversee the insurance program. However, it is clear that Governor Kemp remains committed to his Pathways to Coverage program. Our team will provide updates as this measure moves through the state legislature.

Welcome to the first edition of the 2025 Georgia Bio Legislative Watch, your weekly update on the legislative goings-on at the State Capitol. Each week, we will send you updates on important legislation, committee meetings, special events, and action alerts as needed to keep you informed on the issues directly impacting the life sciences here in Georgia. Our Policy Team will be on the ground to ensure that your voice and your interests are well-represented to continue the growth and success of our industry in the state. To view our policy priorities and 2025 legislative agenda, please visit our website.

Last week marked the convening of the 2025 Legislative Session of the Georgia General Assembly. Notably, the House and Senate approved a calendar for the conduct of business with Crossover Day being scheduled for March 6 and an adjournment date of April 4. There is potential for the calendar to change, but to view it in its agreed upon form, please click here. 

We also heard from Governor Brian Kemp last week during his annual State of the State address. From his speech, it is clear that his number one priority remains tackling tort reform to limit excessive lawsuits and jury verdicts in our state. A comprehensive tort reform package is expected to drop soon, but a special session on this matter is not off the table. Additional priorities include improving school safety, aiding farmers and timber producers post Hurricane Helene, improving transportation, cutting income tax, and expanding his Pathways program. 

Moving on to the Governor's budget proposal, his proposal is comprised of the amended budget for the current fiscal year and the budget for the upcoming fiscal year that takes effect on July 1. This week, known as Budget Week, the House and Senate typically hold joint hearings of their Appropriations Committees to discuss the Governor's recommendations. Due to the weather and Georgia being in a state of emergency, hearings were cancelled yesterday and today. They are scheduled to resume tomorrow if weather permits. The full agenda of hearings and their upcoming live streams can be found on the General Assembly's website.

RELEVANT BUDGET HIGHLIGHTS

Health:

AFY 25

• $150 million in one-time funds for the state's medical schools

- $25 million to Mercer for replacement and expansion of School of Medicine

- $25 million to Morehouse for a new academic building

- $99.8 million to Augusta for Translational Research Building - Health Sciences Campus

• $270,000 to Department of Public Health for a study on effects of social media on children

FY 26

• $224 million for full enrollment in state's Medicaid programs

• $1.5 million to DCH for 75 new primary care residency slots

• $12.5 million to DBHDD to annualize provider rates for Adult Mental Health Services

Workforce:

AFY 25

• $48 million to OneGeorgia Authority for Rural Workforce Housing grants and loans

• $7.4 million to Early Care and Learning for salary parity of Pre-K teachers

FY 26

• $1.25 million to Department of Education for equipment to career and technical education labs 

• $33 million to TCSG for increased enrollment

• $15 million to TCSG for "high-cost programs" including nursing programs

• $10,000 in annualized funds for regional crisis recovery network to respond to public safety and natural disaster incidents impacting schools

• $1.6 million to College of Coastal Georgia for equipment at Nursing and Health Science Addition

COMMITTEE LEADERSHIP CHANGES

Georgia Senate:

• Senator Billy Hickman (R-Statesboro) as chairman of Education and Youth

• Senator Sam Watson (R-Moultrie) as chairman of Ethics

• Senator Max Burns (R-Sylvania) as chairman of Higher Education

• Senator Mike Hodges (R-Brunswick) as chairman of Reapportionment and Redistricting

• Senator Clint Dixon (R-Gwinnett) as chairman of State and Local Governmental Operations and the chairman of Appropriations subcommittee on Government Operations

Georgia House of Representatives

• Representative Steve Meeks (R-Screven) as chairman of Appropriations subcommittee on Economic Development

• Representative Mark Newton (R-Augusta) as chairman of Appropriations subcommittee on Higher Education

• Representative John LaHood (R-Valdosta) as chairman of Appropriations subcommittee on Transportation

• Representative Steve Tarvin (R-Chickamauga) as chairman of Budget and Fiscal Affairs Oversight

• Representative Victor Anderson (R-Cornelia) as chairman of Governmental Affairs

• Representative Scott Hilton (R-Peachtree Corners) as chairman of Information and Audits

• Representative Steven Sainz (R-St. Marys) as chairman of Interstate Cooperation

• Representative Clint Crowe (R-Jackson) as chairman of Public Safety and Homeland Security

• Representative Leesa Hagan (R-Lyons) as chairman of Rural Development

• Representative Brad Thomas (R-Holly Springs) as chairman of the Special Committee on Resource Management

• Representative Mitchell Scoggins (R-Cartersville) as chairman of Special Rules

 We are back for another week of action on the House and Senate floor as well as committee meetings in Georgia. Today was Legislative Day 13 out of 40 and hundreds of bills have already been dropped this session. Given the later than usual adjournment date of April 6, the pace is not expected to let up any time soon.

Before we dive into some of the industry specific bills that our policy team is tracking, it is important to note that House lawmakers today passed House Bill 67, AFY25, and immediately transmitted it to the Senate. The new budget adds $197 million more to hurricane relief, among other adjustments. Additionally, Governor Kemp held a press conference last week unveiling his much-anticipated tort reform legislation. Senate Bill 68 and Senate Bill 69 were both sponsored by Senate President Pro Tem John F. Kennedy and have been referred to the Committee on Judiciary. One of the Governor’s priorities within this legislation is to rework the standards of proof for medical damages to require proof of actual costs incurred by a plaintiff in a push to weed out “phantom costs” where juries consider inflated amounts.

Other bills we are monitoring include the Prescription Drug Consumer Financial Protection Act, or Share the Savings, introduced by Representative Demetrius Douglas. The legislation would require all PBMs to pass a minimum of 80% rebates received by pharmaceutical companies to the patient at the pharmacy counter. We are looking to see if Representative Mark Newton will also introduce Share the Savings legislation. Senate Bill 60, which has been assigned to the Senate Committee on Insurance and Labor, would establish a firm duty of care between PBMs and patients, holding them accountable for their performance. We are also tracking Senate Bill 50, a bipartisan Medicaid expansion bill, the Georgia Consumer Privacy Protection Act that just recently dropped, and a host of other legislation.

As noted in last week’s issue, 340B legislation, HB 139, did find its way to Georgia. We are continuing to work closely with our Policy & Advocacy Committee, our board, and other stakeholders to navigate this situation in the best interest of our membership. More to come here soon, but please know we are taking this matter seriously.

Additional bills that may be of interest:

SB 72, Hope for Georgia Patients Act: “Relating to terminally ill patient's right to try investigational drugs, biological products, and devices, so as to expand access to individualized investigational treatments to patients who have severely debilitating or life-threatening illnesses…”

SB 91: “Relating to the state employees' health insurance plan, so as to prohibit the Board of Community Health from entering into, executing, or renewing a contract or contracts with any pharmacy benefits manager that owns or has an ownership interest in any retail pharmacy…”

SB 101: “Relating to control of hazardous conditions, preventable diseases, and metabolic disorders, so as to require testing for Duchenne muscular dystrophy in the newborn screening system…”

A Message on Federal Policy

With the new Administration, federal policy matters have started off in an unprecedented way. We recognize that the myriad of executive orders, agency actions, policy shifts, etc. have created understandable uncertainty and concern. The Georgia Life Sciences team is in regular contact with our national advocacy partners, BIO, AdvaMed, MDMA, PhRMA, and others in Washington, D.C.

Much remains unclear, and the full ramifications of the federal actions taking place are still unfolding. Georgia Life Sciences is committed to monitoring the ever-evolving situation and we encourage you to reach out with any questions or concerns so that we can try to find answers, direct you to resources, and effectively protect the interests of Georgia’s life sciences economy.

Georgia General Assembly Update

Another week of session has come and gone under the Gold Dome, and with time dwindling down before Crossover Day, a lot of legislation still needs to be heard in committees.

Today, we wrapped up Legislative Day 17, and lawmakers and staff are set to return to the State Capitol on Tuesday, February 18, following President’s Day on Monday. We hope everyone enjoys the long weekend!

On Monday, the Senate Committee on Judiciary held a hearing on Governor Kemp’s tort reform legislation, SB 68 and SB 69. Many parties testified in favor of SB 68 which passed out of committee by a vote of 8 – 3. SB 69 also passed out of committee by a vote of 10 – 1. As noted in last week’s edition, House Lawmakers passed House Bill 67, AFY25, with some changes to the Governor’s template budget including $12.5 million in startup funds for graduate medical education at Piedmont Healthcare and $750,000 for TCSG for an advanced manufacturing fund. If you have any questions on tort reform or AFY25, please reach out to our team.

There was some movement this week on several bills we are monitoring, including SB 72, the Hope for Georgia Patients Act, which the Senate Committee on Health and Human Services favorably reported with substitute on Tuesday. This bill would expand treatment options for patients with severely debilitating or life-threatening illnesses. HB 139, legislation that relates to the 340B drug pricing program, has yet to be taken up in committee. After meeting with both our Policy & Advocacy Committee and Board of Directors, Georgia Life Sciences will soon outline our official position on this matter.

We remain hopeful for some action and eventual passage of the Prescription Drug Consumer Financial Protection Act, better known as Share the Savings. We are working closely with our patient advocacy partners and other stakeholders to do our best to get this bill to the finish line. Additionally, the Georgia Consumer Privacy Protection Act waits to be heard in the Senate Committee on Economic Development and Tourism. We are hearing from industry partners that they are satisfied with the exemptions in the bill as it relates to our sector, but if you have any questions or concerns, please let us know.

Additional bills that may be of interest:

SB 91: “Relating to the state employees' health insurance plan, so as to prohibit the Board of Community Health from entering into, executing, or renewing a contract or contracts with any pharmacy benefits manager that owns or has an ownership interest in any retail pharmacy…”

SB 101: “Relating to control of hazardous conditions, preventable diseases, and metabolic disorders, so as to require testing for Duchenne muscular dystrophy in the newborn screening system…”

SB 60: “Relating regulation and licensure of pharmacy benefits managers, so as to provide that such managers have a duty of care to insureds, health plans, and providers…”

HB 101: “Relating to the state employees' health insurance plan, so as to provide for an annual public report on the amount of prescription drug rebates and other price concessions applied to premium reductions for state health plan participants…”

HR 69: “A resolution recognizing every third Thursday in April as Biomedical Research Day…”

A Message on Threat to NIH Funding

Georgia Life Sciences, representing nearly 4,000 establishments across the state, whom are engaged in the research, development, and manufacturing of pharmaceuticals, biotechnology-based medicines and foods, medical devices, biomedical technologies, life-saving technology distribution, and clinical trial management, expresses deep concern over the recent National Institutes of Health (NIH) guidance to limit funding for medical and life sciences research at universities. This decision will significantly impact Georgia’s innovation economy, workforce, patient community, and its ability to sustain its current leadership in cutting-edge research and development.

Georgia Life Sciences urges the Administration to reevaluate this guidance and recognize the vital role NIH funding plays in driving medical breakthroughs, supporting economic growth, and improving public health. We stand ready to work alongside policymakers to ensure Georgia remains at the forefront of life sciences innovation, providing researchers with the resources they need to continue pioneering advancements that benefit patients, families, and key industries across the state.