Which Issues Will Affect the Restaurant Industry? - Restaurant Informer

by Helen K. Kelley

While there were not nearly as many bills up for discussion in 2012 as in the previous year, there were still several important issues on the table in this year?s legislative session that will have an impact on the restaurant industry. So, how did it all shake out?

One of your most important benefits as a member of the Georgia Restaurant Association is GRA?s advocacy efforts on your behalf. GRA?s Government Affairs team helps to protect your interests as a business owner by working directly with legislators to support member initiatives and by providing representation in state government to defeat anti-restaurant measures and promote bills that enhance the industry.

In 2011, legislators were occupied with considering a long list of issues that affected the hospitality industry, from education and public health to Sunday alcohol sales and electronic gambling, topped off by a controversial bill requiring many Georgia businesses to ensure that their employees are legally eligible to work in the U.S. This year?s legislative session was quite different, with a considerably smaller list of bills that would affect the restaurant industry. However, the passage of two bills in particular ? one regarding the administration of wage garnishments and the other allowing brewpubs to expand their production ? will have a significant positive impact on Georgia?s restaurants.

Wage Garnishment

One of the most critical pieces of legislation to pass this session was House Bill 683, which allows employers to address wage garnishments rather than being forced to use legal counsel to do so.

?Last year a Georgia Supreme Court ruling had changed everything around so that an employer would have to go through an attorney to address a wage garnishment,? explains Katie Jones, GRA Public Affairs Coordinator. ?It was bad news for everyone.?

However, with Governor Nathan Deal?s support this year, HB 683 successfully passed both House and Senate in February.

Many GRA members are relieved by the passage of this bill. Mark Oswald, Managing Partner of Ruth?s Chris Steak House, says that had it not passed, the financial and administrative ramifications would have had a very negative impact on restaurant owners.

?At the time the Wage Garnishment legislation was being considered, we had five open cases in which our attorney was actively involved,? he says. ?An average legal fee on each garnishment filing is approximately $500 ? so costs can mount up quickly. Additionally, conferring with our legal counsel took more of our Director of Human Resources? time than being able to handle garnishments directly.?

HB 683?s passage means direct savings for employers in both money and time.

?Not only does the ability to handle garnishment notices internally eliminate an unnecessary lawyer, it also saves us real dollars in legal bills. We are now able to process notices far more cost efficiently,? states Oswald.

Brewpub Expansion

House Bill 472 will increase the number of barrels a brewpub can produce from 5,000 to 10,000. It will also increase from 500 to 5,000 the number they can sell to wholesale distributors.

The bill?s sponsor, Rep. Richard Smith, said that the proposal was designed with small business owners in mind, as a way to boost their sales and create jobs.

?It?s an economic development issue,? he said in a statement during a Senate committee hearing after the bill was overwhelmingly approved by the House.

The bill also addresses the growing popularity of craft beers. Increased sales could create the opportunity for small craft beer brewers to buy the equipment they need to brew by the barrel and then distribute their product more widely.

?Our brewpub members are really excited about the passage of this bill,? said Jones. ?It?s a victory for them, their customers and local communities.?

Additional Issues

Other bills on the 2012 legislative docket addressed the issues of taxes, unemployment, alcohol licenses and fees, and sick leave.

Bills that passed and are waiting on the Governor?s signature include House Bill 100, which creates a tax court and a more efficient system that will increase the uniformity and predictability of decisions in tax cases; House Bill 1066, which establishes a staggered alcohol license renewal system much like Georgia?s car tag renewal process and also changes the provisions on distance requirements and license fees for special event applicants; and House Bill 347, which cuts the length of state unemployment benefits and, although it also increases unemployment insurance rates, will help stabilize the state?s unemployment benefits fund.

Successfully defeated was House Bill 432, which would have assigned mandatory restrictions to employers offering paid sick leave.

Summary

The overall results of 2012 Legislative Session will have a positive impact Georgia?s small business owners, including restaurateurs.

??when the dust settled, we were left with some quality legislation that will make life easier for our small businesses,? states Kelly Hornbuckle, GRA Director of Marketing & Communications. ?And for that, we would like to thank our elected officials. We met with many this session, and they were very receptive on a range of issues.?

Following a contentious 2011 session preoccupied with the glare of a hot spotlight on immigration, legislators and advocacy groups alike were pleased to focus on other issues this year.

?It was a relief to turn to other matters this year and have a very successful legislative session,? says Jones. ?All in all, we are very pleased with the outcomes of these bills on behalf of our members.?

This entry was posted on Monday, September 17th, 2012 at 2:35 pm and is filed under Current Issue, Profiles.

Source: http://www.restaurantinformer.com/2012/09/what-issues-will-affect-the-restaurant-industry/

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