GA Legislative Watch 2025 | Week Six

February 22, 2025
Friendly Amendment, GLW, In the News

GA Legislative Watch

By Molly Mcloughlin ● February 22, 2025
Smart Brevity™ count: 5.5 mins…1,425 words

👀 We’re more than halfway through the legislative session with days 18-21 down, and only two weeks until Crossover Day when bills (theoretically) must pass the chamber they originated in.

If legislation doesn’t make it to the finish line this year, there’s still a chance of passage during the second half of the biennial next year.

1 big thing: Data center demands

📲 Data centers enable almost everything we do, but their rapidly growing demand brings complex and consequential infrastructure, resource, and land use predicaments for state and local governments.

Big tech companies say data centers drive their competitive edge and are indispensable in the global innovation race.

Residents are split in their views. Atlanta residents worry about balancing industry and community needs, whereas some rural and suburban residents welcome the gains in property tax revenue.

Amazon recently announced an $11B investment in data centers in Butts and Douglas Counties, and Newton County has plans for a $5B 300-acre data center campus.

Site selection largely depends on cheap land and access to power, water, and ideally fiber – all of which are more typical in areas like metro Atlanta, where most of Georgia’s 150+ data centers are.

🔨 Construction of data centers in the region grew 211% in 2023, the fastest rate among major data center markets in the country.

A state sales tax exemption on data center equipment passed in 2018 – originally intended to last 10 years, but extended to 2033.

Last year, Gov. Kemp vetoed a 2-year suspension of the tax break which drew bipartisan support and opposition in the legislature.
📅 Yes, but: A bipartisan group this week introduced HB 559 to move the expiration date up from 2033 to 2026.

The toll. Georgia Power has predicted that energy demand from new projects – primarily data centers – will triple its power load within 10 years.

Who’s paying? The PSC approved a rule giving Georgia Power more flexibility to make data centers foot the bill for increased energy needs, as opposed to consumers.
Sen. Chuck Hufstetler (R-Rome) introduced SB 34 with the same goal, but would require utilities to charge data centers for the cost they incur. A hearing on the measure was delayed until next week.
Speaker Jon Burns tapped Rep. Brad Thomas (R-Holly Springs) to lead the new Special Resource Management Committee which is studying the issue to inform how the state should move forward.

❌ Atlanta City Council banned new data centers near transit hubs and the Beltline last fall.

Mayor Andre Dickens said, “While important, data centers can also make it more difficult to develop affordable housing, grocery, greenspace, and retail, which are all more suitable projects for the urban core of our city…”

More consumer oversight. With average utility rates on the rise, lawmakers are looking to bring back the Consumers’ Utility Counsel with SB 94 to represent residents and small business owners in rate proceedings.

Zoom out: Signs suggest the boom isn’t slowing down, with national data center inventory growing at an average 43% in 2023 and 2024 – significantly outpacing the 3% growth in other real estate investments.

2. Notable legislation

🔎 The Red Tape Rollback Act – pushed by Lt. Gov. Burt Jones – passed out of committee along party lines intending to reduce burdens on small businesses.

💲If compliance with a new regulatory rule looks like it could cost the public or local governments $1M or more in the first 5 years, the General Assembly would review its economic impact and decide on its approval.
The other side: Democrats worry it will undermine regulatory oversight and diminish trust in state agencies.

Gov. Kemp’s omnibus litigation overhaul, SB 68, dealing with everything from property owner liability to evidence of seatbelt usage, cleared the first hurdle, passing out of the Senate with one D and one R crossing party lines.

A friendly amendment was approved to allow juries to see initial medical bills, along with actual medical costs, when determining damages in a lawsuit. The original version would’ve only allowed actual medical costs to be seen.
They did not take up SB 69, which has broader support limiting third-party funding of lawsuits.
❌ On the list. In the days before the vote, Gov. Kemp signaled he’s prepared to unleash his campaign war chest to support primary opponents of R’s that don’t stick with him.

Speaking of lawsuits. Sen. Blake Tillery’s (R-Vidalia) SB 57, passed by the Judiciary Committee, intends to protect businesses from discrimination and “de-banking,” such as a firearm manufacturer being turned away by a bank based on political positions.

The other side: The risk would be incalculable. Several R’s voted with D’s to oppose the measure, which they say would invite lawsuits from anyone that feels wronged by a bank or even utility provider.
It was amended to limit applicability to banks with over $1B in assets and to those with existing relationships, i.e. you can’t sue just because a bank denies service upfront.

Turn up the pressure. Rep. Houston Gaines’ (R-Athens) HB 295 passed out of committee putting more pressure on local governments to enforce laws around homeless encampments, panhandling and other issues.

Property owners could claim compensation if they can show lost value or extra expenses due to local governments failing to enforce bans on these practices.
Yes, and: A bipartisan group introduced SB 170 to create the Georgia Interagency Council for the Homeless and includes those who have experienced homelessness and those who serve them.

⌛ We need more time. The House approved HB 92 to extend the deadline one month, to March 31, 2025, for local governments to opt-out of the referendum-approved homestead exemption.

If they don’t opt-out by then, they’re automatically included in the exemption, but can opt-out through 2029.

Do it better ourselves. HB 215 passed out of subcommittee and looks to withdraw the state from ERIC, the Electronic Registration Information Center, an NGO that collects data to help states accurately update their voter rolls.

Georgia would be the 10th state to abandon the system, following other red states.
The other side: The SOS credits ERIC for its effectiveness in ensuring fair and secure elections.

🧑‍💻 Sen. John Albers’ (R-Roswell) data privacy bill, SB 111, passed out of committee creating data protection and security standards for Georgians’ personal data. It’s supported by the Metro Atlanta Chamber and Technology Association of Georgia and mirrors 20 other states’ models.

Just in case there’s no DOE. In anticipation of changes at the federal level, a committee passed SB 154 to remove and revise references to the U.S. Dept. of Education, adding “or its successor.”

👶 A new $250 child care tax credit and the expansion of some existing credits may be coming thanks to the Senate passing the bipartisan supported SB 89.

3. Other political news

“One big, beautiful bill” or two is the question facing House and Senate majority leaders on the budget. President Trump favors the House’s one bill that tackles border security, military spending, energy policy, and tax cuts.

But early Friday morning, the Senate passed their plan to tackle everything but the tax cuts, leaving that issue to a second bill.
🤝 What they’re saying: As they plan for a floor vote next week, House leadership is concerned their divided conference won’t be able to get together on two different bills.
Big picture: The March 14 deadline to come to agreement is quickly approaching, along with the expiration of the 2017 tax cuts on Dec. 31.

📈 Better than expected. Last year’s state income tax cut reduced revenues by 2.4%, not the much larger, predicted 6.25%.

A bigger surplus than expected is thanks to Georgia’s real wage and salary income being up 12.1% (compared to 8% nationally.)

🍎 The school voucher eligibility list was republished, but it’s not much different from the last one. The Gov.’s list identifies more than 400K students from Georgia’s lowest-performing schools as eligible for the $6.5K voucher for private school costs.

✅ Former U.S. Senator Kelly Loeffler will run the Small Business Administration, after a 52-46 confirmation vote with both Georgia Senators voting no.4.