HB1212: HB1212 PFAS Removal and Remediation Promotion Act; enact

26 LC 44 3345 House Bill 1212 By: Representatives Stephens of the 164th, Carpenter of the 4th, Barton of the 5th, Cannon of the 172nd, LaHood of the 175th, and others A BILL TO BE ENTITLED AN ACT To amend Chapter 13 of Title 48 of the Official Code of Georgia Annotated, relating to1 specific, business, and occupation taxes, so as to impose an excise tax upon certain proceeds2 of judgments and settlements intended for the abatement, removal, and remediation of PFAS3 contamination of land but unused for that purpose; to provide for exceptions; to provide for4 notice of receipt of damages, filing of returns and payment, and credits; to provide for rules5 and regulations; to provide for definitions; to provide for a s hort title; to provide for6 legislative findings; to provide for notice of excise tax and t ax credit to putative PFAS7 tortfeasors; to provide for related matters; to provide for an effective date and applicability;8 to repeal conflicting laws; and for other purposes.9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:10 SECTION 1.11 Chapter 13 of Title 48 of the Official Code of Georgia Annotate d, relating to specific,12 business, and occupation taxes, is amended by adding a new article to read as follows:13 H. B. 1212 - 1 - 26 LC 44 3345 "ARTICLE 914 48-13-150.15 This article shall be known and may be cited as the 'PFAS Remov al and Remediation16 Promotion Act.'17 48-13-151.18 The General Assembly finds that:19 (1) The natural resources and environment of this state are of vital importance to the state20 and its citizens, and the protection and preservation of natura l resources and the21 environment is an essential concern and responsibility of the government of this state;22 (2) Perfluoroalkyl and polyfluoroalkyl substances, commonly kn own as 'PFAS,' are23 widely used chemicals that are present and persistent in the environment in Georgia and24 throughout the United States and the world;25 (3) Studies have associated human exposure to certain types of PFAS with risks to26 human health;27 (4) Lawsuits have been filed by landowners in this state alleg ing that their lands have28 been contaminated by PFAS and seeking damages and other monetary relief for purposes29 of PFAS abatement, removal, and remediation;30 (5) Without comment on the merits of such claims, when the proceeds of judgments and31 settlements intended to fund PFAS abatement, removal, and remediation are not used by32 a landowner for such purposes, the recovery of such proceeds is a windfall to the33 landowner, and the unremoved and unremediated PFAS contamination threatens further34 risk to adjacent lands and waters, including the waters of this state, and imposes a greater35 burden on the state and its citizens; and36 (6) Sound public policy should encourage the use of proceeds o f judgments and37 settlements intended to fund PFAS abatement, removal, and remed iation for such38 H. B. 1212 - 2 - 26 LC 44 3345 purposes and, to the extent that such proceeds are directed to other purposes and the39 PFAS contamination of lands in this state is left unremoved and unremediated, revenue40 should be raised to offset the greater burden on the state and its citizens.41 48-13-152.42 As used in this article, the term:43 (1) 'Landowner' means any person who owns land in this state.44 (2) 'PFAS' means any perfluoroalkyl or polyfluoroalkyl substan ce, any substance that45 degrades to a perfluoroalkyl or polyfluoroalkyl substance, and any precursor of a46 perfluoroalkyl or polyfluoroalkyl substance.47 (3) 'PFAS abatement, removal, and remediation' means activitie s to abate or remove48 PFAS from land in this state, including from soil, surface waters, or groundwaters on or49 beneath such land, or to otherwise remediate PFAS contamination.50 (4) 'PFAS contamination' means the introduction or presence of PFAS on land in this51 state, including in soil, surface waters, or groundwaters on or beneath such land.52 (5) 'Putative PFAS tortfeasor' means any person alleged to be responsible in tort,53 nuisance, or equity, for PFAS contamination.54 (6)(A) 'Taxable PFAS damages' means gross amounts paid by, or on behalf of, a55 putative PFAS tortfeasor to a landowner as damages or other mon etary relief in an56 action alleging property damage from PFAS contamination for the costs and expenses57 of PFAS abatement, removal, and remediation.58 (B) Such term shall not include damages or other monetary relief awarded by judgment59 or agreed by settlement to be paid for other purposes, includin g, but not limited to,60 amounts paid as damages or other monetary relief for:61 (i) Diminution of the value of land;62 (ii) Loss of use or enjoyment of land; or63 H. B. 1212 - 3 - 26 LC 44 3345 (iii) Bodily injury, mental or emotional distress, or wrongful death of a landowner,64 any member of the household of a landowner, or any other person.65 48-13-153.66 There shall be imposed an excise tax on all taxable PFAS damage s received by a67 landowner in the amount of 50 percent of such taxable PFAS damages.68 48-13-154.69 (a) Within 30 days after a landowner receives any taxable PFAS damages, the landowner70 or his or her counsel shall file a notice of receipt of damages for PFAS abatement, removal,71 and remediation with the commissioner.72 (b) Each landowner who receives any taxable PFAS damages shall file a return and pay73 the tax due on January 15 of the calendar year following the third anniversary of the receipt74 of such taxable PFAS damages.75 (c)(1) A landowner shall be entitled to a credit against the tax due under subsection (b)76 of this Code section for:77 (A) Fifty percent of any funds expended by the landowner, directly or indirectly, for78 PFAS abatement, removal, and remediation of the land that was t he subject of the79 judgment or settlement under which the amounts taxed were paid to the landowner,80 provided that such funds are expended on or before December 31 of the calendar year81 immediately preceding the year in which the return is due; and82 (B) Fifty percent of any funds placed into an irrevocable trust for the exclusive purpose83 of financing PFAS abatement, removal, and remediation of the la nd in this state that84 was the subject of the judgment or settlement under which the amounts taxed were paid85 to the landowner, provided that such trust is established and the funds are irrevocably86 paid into the trust on or before December 31 of the calendar ye ar immediately87 preceding the year in which the return is due.88 H. B. 1212 - 4 - 26 LC 44 3345 (2) A landowner may claim the credit provided for in paragraph (1) of this subsection in89 the return due pursuant to subsection (b) of this Code section.90 (c) The return and payment of the tax due pursuant to this Code section shall be made to91 the commissioner. The return shall be signed and sworn to by t he landowner; provided,92 however, that, if the landowner is a corporation, limited liabi lity company, partnership,93 trust, or other entity, the return shall be signed and sworn to by an authorized officer,94 director, executor, or member of such entity.95 (e) The commissioner is authorized to prescribe the form of th e notice due under96 subsection (a) of this Code section and the return due under su bsection (b) of this Code97 section.98 (f) The department is authorized to adopt and enforce such rules and regulations as may99 be necessary to enforce this article."100 SECTION 2.101 Chapter 1 of Title 51 of the Official Code of Georgia Annotated , relating to general102 provisions regarding torts, is amended by adding a new Code section to read as follows:103 "51-1-58.104 Prior to initiating an action pursuant to this title against a putative PFAS tortfeasor, as105 defined in Code Section 48-13-152, a plaintiff or plaintiff's attorney shall provide notice106 in writing by statutory overnight delivery to the putative PFAS tortfeasor of the excise tax107 and tax credit provided for by Article 9 of Chapter 13 of Title 48."108 SECTION 3.109 This Act shall become effective on January 1, 2027, and shall a pply to amounts paid to110 landowners on and after such date.111 H. B. 1212 - 5 - 26 LC 44 3345 SECTION 4.112 All laws and parts of laws in conflict with this Act are repealed.113 H. B. 1212 - 6 -