CAAG CONNECTION - Conditioned Air Association of Georgia

CONDITIONED AIR ASSN. 

OF GEORGIA 

CAAG CONNECTION 

2006 Annual Meeting… 

The 2006 CAAG Annual Meeting was a huge 

success. If you did not attend, you missed 

some great speakers. We had concurrent 

sessions with various topics, and of course 

our main speaker, Jennifer Shooshanian 

was welcomed back and enjoyed even more 

than last year. 

We need to be sure and thank APEX Supply 

for sponsoring her class, as well as our other 

seminar sponsors; Atlanta Gas Light & 

Mingledorff’s. 

Lee Draper of Warner Robins was elected in 

as the 2006-07 President of CAAG. For a 

complete listing of the new Officers & 

Directors see page 9. 

Our Annual PAC Auction raised over $6000 

this year! Great Job! See page 8 to see all 

Better Than Ever!!! 

the items that were donated. 

Finally, be sure and read the remainder of 

this issue to see who was awarded Supplier 

of the Year, Chapter of the Year. Don’t 

miss the article on Contractor of the Year, 

which was awarded to the late Tommy 

Hembree; and read what the Cobb County 

Chapter of CAAG is doing to honor this 

great man! 

Don’t miss pages 10 & 11. There are some 

GREAT pictures from the meeting. 

Remember, you could be in them next year. 

Mark your calendars now for the 2007 

Annual Meeting. It will held April 11th - 

14th at The King & Prince, St. Simons 

Island, GA. See you there! 

CAAG Legislative 

Report 2006 

By Bruce Widener 

CAAG Executive Director and Lobbyist 

I really appreciate all of our members who contacted their 

legislators about our bills in the legislature this year and all of 

those who contributed to our Political Action 

Committee. Without YOUR help none of our legislative 

activities would have been successful. As you will read, CAAG 

had a very good session and hopefully some of these new laws will help make your life a 

little easier. Do not hesitate to contact me if you have any questions or would like 

copies of any of these. The first part of this report was emailed earlier but I have now 

added more of the bills in which you may have an interest. 

As you read these bills, if you think that CAAG's legislative program is beneficial, please 

consider sending us a contribution to the CAAG PAC. We use this money to help our 

friends in the Legislature that make all of this possible. Without their help, we would 

not be able to accomplish anything and those who have different agendas than ours 

would continue to pass laws that are not in our best interest. Think about this while you 

are reading this report and consider sending in a check today. 

HB 304 Permit Fees / 2 Days to Obtain Permits - Passed 

By: Rep. Ron Dodson (I-Lake City) (previously by Rep. Sue Burmeister, R-Augusta) 

(Continued on page 12) 

1 ST QUARTER 

2006 

INSIDE THIS ISSUE: 

President’s Message 2 

Ask Suppliers, 

Competitors to Join 

CAAG 

CAAG Chapter of the 

Year & Supplier of the 

Year 4 

Contractor of the Year 6 

Scholarship in Honor of 

Tommy Hembree 

CAAG PAC Auction 

Recap 8 

2006 - 2007 Officers & 

Directors 9 

Pictures from the 

Annual Meeting 10-11 

Legislative Report 

Continued 

2 

6 

12, 14- 

16 

Jimmy Green Scores 

Hole in One 16 

Assured Comfort 

Helping Soldiers 16 

Letter from McDevitt 

Air 

17 

Women in the 

Workplace 18 

Guideline to Meet 

Requirements of Board 

Rule 121-2-.03 20 

Marietta HVAC Firm 

Launches Unique 

Program 21 

Copper A Target of 

Midstate Thieves 22 

House Bill 304 

Workers Comp Rates / 

23 

Service Agreements 24

PAGE 2 

Hello everyone! 

I hope you had a 

great time at Callaway 

Gardens, I know I did. 

For those of you who 

could not attend, you 

missed a great meeting. 

I believe we had the 

most educational 

seminars that we have 

ever had and of course, it 

was Callaway so there 

was plenty of recreation. 

Next spring, we will be at 

The King & Prince 

Resort on St. Simons 

Island, April 11th - 

14th, so mark you 

calendars today! We had 

approximately 150 

people attend this year 

and I hope to see even 

more next spring. 

I know we all 

look forward to a hot 

summer after a very 

moderate winter. We 

have many hurdles 

ahead with the change 

to 13 SEER and the 

skyrocketing fuel prices. 

I think that if we all look 

at them as opportunities 

instead of challenges, we 

will be more profitable in 

the end. 

It was also announced at 

the Spring meeting that 

the Cobb Chapter of 

CAAG has established a 

scholarship fund in the 

name of our dear, late 

friend, Tommy 

Hembree. This is a 

great cause, in honor of 

a great man. I 

encourage everyone to 

contribute. 

In closing, I 

would like to urge all 

CAAG members to help 

us increase our 

JAN-FEB-MAR 2006 

LEE DRAPER 

Georgia Cooling 

Warner Robins, GA 

membership. After all, 

there really is strength in 

numbers. So, I am 

challenging every member 

to invite one new 

contractor or associate to 

join our organization. An 

application can be found 

at our new website; 

www.conditionedairga.org. 

Please let us know if you 

recruit someone to join so 

that you may be 

recognized. Have a Great 

Summer! 

Lee 

Ask Your Friendly Competitors and all of your Suppliers 

to Join CAAG and help us, help the Industry! 

There are a large number of HVAC contractors and suppliers who are NOT members of CAAG. Please 

forward a copy of this newsletter to them and urge them to join and help us, help everyone in the 

industry. Everything that CAAG does helps everyone. If everyone in the industry (or even 50%) were members 

imagine how much we could get done. Just think about the clout CAAG would have at the Capitol. We get a lot 

done now but with more members we would be able to accomplish so much more. 

Please make a point this week of trying to talk to at least one other contractor and one other supplier 

about CAAG membership. Let us know who you talked to and we will follow-up with a call. CAAG is YOUR 

association and we want and need YOU to take ownership in it and be more active. Let us know what we can do 

to help you do this. 

Ask someone in your office to go through your accounts payable and see who your 

5 biggest suppliers are. If you have any question about them being an active CAAG 

member, please call the CAAG office at 678-646-2224 and ask. If there are not, they need 

to be members! Be sure to talk to them about this. 

If you ever have any questions, of if we can be of assistance in any way, please do 

not hesitate to contact us. Also please send me any comments you might have about any 

of the bills discussed in this newsletter or your ideas for other legislation that might need to 

be introduced. 

Bruce Widener

JAN-FEB-MAR 2006 PAGE 3

PAGE 4 

Barry Abernathy, E. Smith Heating & Air, 

receiving the Chapter of the Year Award for 

Cobb County from Ashley Widener. 

speaker and discuss current topics and concerns. 

Mechanical Equipment Co., Inc. 

CAAG Supplier of the Year 

Mechanical Equipment Company Inc. was awarded CAAG’s 

Supplier of the Year at the Annual Meeting in March. They have been 

serving the needs of Georgia area contractors for over 43 years. With 

over 60 employees in 9 locations throughout metro Atlanta and 

Greenville SC., Mechanical Equipment still operates as an independent 

wholesaler. Mechanical Equipment has represented the Westinghouse 

Brand of Air conditioning equipment for the past four years and is well 

known to contractors as a complete source for their contracting 

supplies. 


Heating & Air Association of Cobb 

County - CAAG Chapter of the Year 

The Heating & Air Association of Cobb County was selected 

to receive the CAAG Chapter of the Year Award at the Annual 

Meeting. 

The Cobb Association is an active group involved in many things 

throughout the year. Activities are organized in order to meet various 

goals - to raise money for community needs and HVAC educational 

programs, to increase awareness of the chapter, and sometimes just 

for the members to have food fun and fellowship with each other. 

Some of the highlights of annual activities include: skeet shoot, 

dove shoot, fishing trip, golf tournament, Christmas outing, as well as 

the monthly dinner meetings for the membership to hear a selected 

Community programs that the Cobb Chapter has donated to include: Special Olympics and 

Cobb Family Cares. 

In addition, the chapter donated $2,500 annually to Chattahoochee Technical College HVAC 

department to be used for classroom equipment or other training materials needed. Cobb Chapter 

members are on the technical college advisory board for the HVAC program, and are also invited to 

speak to the classes of HVAC students, so that students can get a perspective on the industry in 

addition to the classroom training. 

The Cobb Chapter includes local HVAC contractors who work in varying size companies and have 

varying industry focus, as well as representatives from utility companies and wholesale suppliers. 

Many members are active at the state level in CAAG positions. Several past CAAG Board 

members have come from the Cobb Chapter, most recently: 2005 President - Jimmy Green, Green 

Heating & Cooling, 2004 President - Barry Abernathy, E. Smith Heating & Air, 2006 President-Elect - 

Dennis McKeon, D. McKeon Heating & Air and Tommy Hembree, Arrow Heating & Air, Member at Large. 

The Heating & Air Association of Cobb members work together to help make the industry better 

by staying updated and knowledgeable on the HVAC industry, and business in general, and sharing 

ideas and concerns. 

The Cobb Chapter contributes their success to the philosophy of keeping meetings fun and 

interesting, sharing ideas and support, and cultivating friendships among others in the industry for the 

good of all involved. � 

Ralph Odom, Mechanical Equipment Co., 

Inc. receiving Supplier of the Year Award 

from Ashley Widener 

Brud Childress is the President of Mechanical Equipment and is assisted by his son, Brandon 

Childress, Vice-President. Key employees include; Ralph Odom, Mike Ashley and Brian Tate. �


PAGE 6 

Tommy Hembree, Arrow Heating & Air - 

2006 CAAG Contractor of the Year 


At the March 2006 CAAG Annual Spring Meeting at Callaway Gardens, the 

Contractor of the Year award was presented to Tommy Hembree, owner of 

Arrow Heating & Air. But, sadly, Tommy Hembree passed away shortly before 

the Spring Meeting due to injuries from a fall. Tommy’s wife, Vera, accepted the 

award for the Tommy and the company, while receiving a standing ovation from the 

audience as she walked up to accept the award. 

Tommy Hembree had a long and distinguished history with CAAG and the heating 

& air industry. 

He began his career in heating & air at the age 15 and founded Arrow Heating & 

Air in 1968, doing primarily new construction HVAC work. 

A charter member and long time state director of CAAG, Tommy was President of the Heating & Air Association of Cobb County 

in 1974, and he remained very active in both organizations until his death at age 70. He especially loved fishing trips, and always found 

time to be involved in many other events sponsored by both organizations. Everyone always 

enjoyed seeing Tommy and Vera at all the CAAG Annual Meetings. 

Some of the community and civic organizations Tommy participated in are: Habitat for 

Humanity, Cobb and Douglas County Chamber of Commerce, and the Heating & Air 

Conditioning Advisory Board for Cobb and Douglas County, just to name a few. 

In 2001, Arrow Heating & Air received the Bryant Sales Award for most Puron Sales in new 

construction. 

Even up to his death, Tommy was still very active in his 

business, doing service work when needed as well as 

running all other aspects of the business. He and Vera, 

had a great partnership running the business together 

since its beginning. 

A great friend to all who knew him, Tommy will be greatly missed. However, he leaves a legacy 

of having made our industry better through his contributions and involvement during his life. 

And, for that, we honor him. � 

SCHOLARSHIP STARTED IN 

HONOR OF 

TOMMY HEMBREE 

Immediately following the presentation of Contractor of the Year to Vera Hembree, honoring 

her late husband Tommy, the Heating & Air Association of Cobb County announced that 

they are starting a scholarship in Tommy’s name at Chattahoochee Technical College. 

This scholarship, which is restricted to a student or students in the HVAC field, will directly 

benefit those pursuing careers in the HVAC industry. This was a great way for the members of the 

Heating & Air Association of Cobb County to honor their long time friend, his accomplishments 

and his contributions to the industry. 

In the coming weeks, Board Members of the Heating & Air Association of Cobb County will be meeting with the Foundation of 

Chattahoochee Technical College to determine and finalize the details on the criteria that will need to be met for someone to receive 

funds from this scholarship. Currently, they have raised slightly over $10,000 towards this scholarship from HVAC contractors, 

supplies and various builders. 

We know that many of you will want to honor Tommy, and his memory, by sending in your tax deductible contribution. Checks 

should be made out to the CTC Foundation , and sent to: CTC Foundation, Tommy Hembree Scholarship, 980 South Cobb Drive, 

Marietta, GA 30060-3398.�


PAGE 8 

CAAG PAC AUCTION 


Thanks to all those who participated in the PAC Auction either by donations or by purchasing items. 

Be sure and tell these individuals THANK YOU when you see them. They a very big part of why we are able to 

support those Legislators who support CAAG! 

Donating Company/Person Item Winning Bidder 

APEX Supply Co./Jerry Holland Braves Tickets w/Parking Pass Joey Chancey 

APEX Supply Co./Jerry Holland 2 Person Fishing Trip Todd Harden 

Atlanta Gas Light/Lang Wooddy Taylor Made Daytona Putter Stephanie Elliott 

Atlanta Gas Light/Lang Wooddy R7 425 Taylor Made Driver Tammy Draper 

Busby’s Inc./Rick Busby Coleman Lantern Tammy Draper 

Busby’s, Inc./Rick Busby Coleman Spotlight Steve Blakeney 

Busby’s, Inc./Rick Busby Rod & Reel Barry Abernathy 

Certified Electric/Emory Young Heavy Duty Radio Steve Nail 

Chancey’s Htg. & Cooling/Joey Chancey Harley Davidson Knife Steve Nail 

Coastline Distributors White Hot Putter Barry Abernathy 

Cobb Cty. Heating & Air Assoc. Rolling Tool Case / Bag Dennis McKeon 

Cobb Cty. Heating & Air Assoc. DC/AC Convertor Cliff Young 

Cobb Cty. Heating & Air Assoc. Husky Smart Battery Charger Steve Blakeney 

Controlled Climate/Barbara Blakeney Bath & Body Works Gift Set Courtney Harden 

Controlled Climate/Barbara Blakeney Jewelry Set Lee Draper 

Controlled Climate/Steve Blakeney Winchester Knife Lamar Daniel 

Controlled Climate/Steve Blakeney Rod & Reel Joey Chancey 

Corbin Comfort Systems/Jim Corbin Braves Tickets w/Parking Pass Randy Conley 

D. McKeon Htg. & Air/Dennis McKeon Jeep TV/AM & FM Radio Todd Harden 

Doc Savage Htg. & A/C/Joe Savage Dagger with Stand Joey Chancey 

Doc Savage Htg. & A/C/Joe Savage Beast Knife Marilyn Green 

Doc Savage Htg. & A/C/Joe Savage The General Knife Steve Blakeney 

Doc Savage Htg. & A/C/Joe Savage Backwoods Combo Knife Set Cody Harden 

Doc Savage Htg. & A/C/Joe Savage Frost Cutlery Knife Set Lee Draper 

Doc Savage Htg. & A/C/Joe Savage Gatorback Knife Steve Blakeney 

Doc Savage Htg. & A/C/Joe Savage Defender of the Alamo Knife Rick Busby 

Doc Savage Htg. & A/C/Joe Savage Skull & Crossbones/3 piece knife set Marilyn Green 

E. Smith Htg. & A/C/Debbie Abernathy Purse Courtney Harden 

E. Smith Htg. & A/C/Debbie Abernathy Frilly Purse Jennifer Eitenmiller 

E. Smith Htg. & A/C/Barry Abernathy Tickets to Tennessee Aquarium Stephanie Elliott 

East Coast Metal Distributors John Daly Driver Ralph Odom 

Georgia Cooling/Lee Draper Georgia Golf Bag & Head Covers Jimmy Green 

Georgia Cooling/Clara Harden Live, Love, Laugh Ceramic Set Steve Blakeney 

Georgia Cooling/Todd Harden Georgia Chair Laurie McKeon 

Great Southern Htg. & Air/Barbara Leon Dale Earnhardt Jr. Cooler Julia Vagovic 

Lennox/Randy Head Rod & Reel Rick Busby 

MDS/Roger Torre Rod & Reel Joey Chancey 

Mingledorff’s/Bill Biggs Tackle Box Peter Vagovic 

Mingledorff’s/Bill Biggs Rod & Reel Dewey Young 

Nail Htg. & A/C/Steve Nail Sport Series Flex Dennis McKeon 

Nail Htg/ & A/C/Steve Nail Nike Power Distance Golf Balls Stephanie Elliott 

Nail Htg.& A/C/Steve Nail Callaway Warbird Golf Balls Steve Blakeney 

Nail Htg/ & A/C/Steve Nail Titleist Golf Balls Julia Vagovic 

Snellville Htg. & Air/Marcia Vansant Original Painting Todd Harden 

Stanfield Air Systems/Sally Allen 19.2 Volt Worklight & Cordless Drill Jimmy Green 

Ware Mechanical/Mike Littlejohn Corinthian Bells/Wind Chimes Steve Nail 

Ware Mechanical/Mike Littlejohn Titleist Golf Balls - PRO VI Bruce Widener 

In addition, the following companies also donated door & golf prizes; 

Amana Heating & Cooling 

APEX Supply 

CAAG 

Callaway Gardens Resort 

Cobb County Heating & Air Association 

Doc Savage Heating & A/C 

Great Southern Heating & A/C 

MGM Products, Inc. 

Nail Heating & A/C 

Please be sure and thank each and every one of the companies and individuals!


Conditioned Air Association of Georgia 

Officers & Directors 2006- 2007 

PRESIDENT: Lee Draper Georgia Cooling Warner Robins 

PRESIDENT ELECT: Dennis McKeon McKeon Heating & AC Kennesaw 

VICE PRESIDENT: Steve Nail Nail Heating & Air Hampton 

TREASURER: Mike Littlejohn Ware Mechanical Rome 

SECRETARY: Steve Blakeney Controlled Climate Marietta 

Board of Directors: 

Altamaha Joel Grier Rivers A/C & Electric Co. Vidalia 

Augusta Rick Busby Busby’s, Inc. Augusta 

Coastal Emory Young, Jr. Certified Electric, Inc. Brunswick 

Cobb Barry Abernathy E. Smith Heating & A/C Marietta 

East Metro Don Vansant Snellville Heating & Air Snellville 

MAACA Ken Briggs Moncrief Heating & Air Atlanta 

Northeast GA Jack Scroggs Dixie Mobile Home Supply Athens 

Savannah Tom Moore The Weather Doctors Savannah 

South Georgia Bill Slaughter Waller Heating & Air Valdosta 

Dir. At Large Joey Chancey Chancey’s Heating & Cooling Douglas 

Supplier Reps ‘06-‘07 

Wayne Raper MGM Products, Inc. Conyers 

Jerry Holland APEX Supply Duluth 

Bud Mingledorff Mingledorff’s Norcross 

Utility Reps ‘06-‘07 

Ken Medlin Georgia Power Company Lawrenceville 

Lang Wooddy Atlanta Gas Light Atlanta 

Immediate Past President Jimmy Green Green Heating & Cooling Canton 

Don’t forget to thank all these Board Members for their 

Time, Energy & their Dedication 

to the Industry, to CAAG 

& to YOU! 

PAGE 9


PAGE 10


Picture yourself here 

next year! Mark 

your calendar today! 

2007 CAAG Annual 

Meeting - 

April 11th –14th, St. 

Simons Island! 

PAGE 11

PAGE 12 

(Continued from page 1) 

I am extremely pleased to report that the Legislature 

passed HB 304, our permits bill, late the last night of the 

session. The Conference Committee Report was agreed 

to by the House early in the evening, then the Senate 

agreed at approximately 10:30 pm. Keep the enclosed 

copy of the bill for further reference. 

The passage of the bill was delayed by two 

amendments that had nothing to do with our underlying 

bill. Our bill was used as a “vehicle” for a ‘sparkler’ 

amendment and a ‘taxi cab’ amendment. The Senate 

added these two amendments after our original bill had 

passed the House. The House disagreed with the Senate 

amendments and insisted on their position. Fortunately 

we were able to take off the controversial ‘taxi cab’ 

amendment in the Conference Committee which could 

have jeopardized our bill. 

Enclosed you will find a copy of the bill as it 

passed. Basically this bill provides several different 

methods by which a city or county might determine the 

amount of a permit. They can no longer determine the 

cost of the permit by the square footage of the project, 

the dollar amount of the contract or the tonnage. It 

must be determined by the provisions of this bill which 

basically depends on how long it takes the inspector to 

make his inspection. 

It also clarifies the law we got passed several 

years ago providing that you had two business days to 

obtain a permit after starting work. Many cities and 

counties did not recognize this law because the law 

provided that there must be a ‘health or safety’ issue. 

This new law specifically says, “The work done or 

services provided are necessary for the health, comfort, 

or safety of one or more individuals or protection of 

property. This paragraph shall apply to, but not be 

limited to, the repair, service , or installation of heating, 

ventilation, and air conditioning equipment or systems;” 

We worked very closely with the Georgia 

Municipal Association (GMA) and the Association 

County Commissioners of Georgia (ACCG) on this 

bill and hopefully we will not have any more trouble with 

cities and counties recognizing this state law. 

One provision that was negotiated out of this bill 

was our provision saying that if we sued a city or county 

that did not recognize a state law like this or because 

they had a local ordinance which was contrary to the 

state law, they would have to pay our attorney’s fees. 

This would be similar to the law we got passed several 

years ago which provides that if we sue a city or county 

for excessive permit fees, they have to pay our 

attorney’s fees. This may be something else we look at 

for next year. 

We will be working with the Governor’s office to 

be sure the Governor signs this bill into law and, if so, it 

will become effective on July 1, 2006. 

We very much appreciate the efforts of Rep. 

Ron Dodson (I-Lake City) for his untiring help in 

getting this passed. We also want to thank Sen. Don 

2006 LEGISLATIVE REPORT 


Balfour (R-Gwinnett Co.) who helped a great deal in the 

Senate. 

HB 1105 Conditioned Air Licensing Board 

– Did Not Pass 

By: Rep. Ron Dodson (I-Lake City) 

Unfortunately, HB 1105, our bill which amended 

the Licensing Law, was held up in the Senate Regulated 

Industries Committee and did not pass. This bill would 

have extended the Grace Period, for a company whose 

only licensee died from 90 to 180 days. It also would 

have fined an unlicensed contractor for using someone 

else’s license to obtain a permit. Sen. Steve Thompson 

(D-Marietta) helped a great deal on this bill but by the 

time it was passed by the Senate Committee there was 

only 1 day to get it on the Senate Rules Committee and, 

by that time, we were competing with too many other 

bills. It was never placed on the Senate Rules Calendar 

for the whole Senate to vote on it. Sen. Thompson was 

able to place HB 1105 on 3 other ‘vehicles’ that we found 

but they were ruled ‘non germane’ by the Speaker of the 

House. This means that they really were not related to, or 

amending, the same code section as the main bill. We 

were able to amend HB 881, Dispensing opticians; HB 

184, Residential and General Contractors Licensing Board; 

and HB 1259, Private Detectives. Each of these bills 

amended Title 43 which is the Code section containing all 

licensing bills. In past years we have been able to get 

away with this but not this year. With the help of Sen. 

Thompson each of these bills passed the full Senate with 

an amendment containing HB 1105 but our language was 

taken off each of these late in the night because of the 

Speaker’s ruling. 

HB 1105 was held in the Senate Committee 

because the Chairman, Sen. Mitch Seabaugh (R- 

Sharpsburg), amended it to take out the provision in 

current law which requires that each HVAC company have 

a ‘full time’ licensee. With this change, CAAG was put in a 

position of opposing our own bill. After many 

conversations with the Chairman, we were able to remove 

his amendment and return to our version. Unfortunately 

by this time, we only had one day to get it on the Rules 

Calendar and we ran out of time. This is something we 

can work on next year. The Licensing Board also had 

language in the original HB 1105 which would have 

associated a company with each licensee and required a 

licensee at each company location. We will be reviewing 

this over the summer and perhaps address this issue next 

session. Hopefully, the Board could do this without the 

need of legislation. 

SB 529, Illegal Immigration - Passed 

By: Sen. Chip Rogers ( R-Woodstock) 

This is the bill you have heard and read so much about in 

the news media. We talked to Sen. Rogers on a number 

of different occasions and he assured us that there is 

nothing in the bill which penalizes an employer who has 

(Continued on page 14)


PAGE 13

PAGE 14 


obtained the proper documents from employees. He 

says that this bill does not add anything to employers 

that they already should be doing. It does not contain 

any criminal provisions against employers. Some of the 

key provisions are: 

(b) On or after January 1, 2008, no wages or 

remuneration for labor services to an 

individual of $600.00 or more per annum may 

be claimed and allowed as a deductible 

business expense for state income tax 

purposes by a taxpayer unless such individual 

is an authorized employee. The provisions of 

this subsection shall apply whether or not an 

Internal Revenue Service Form 1099 is issued 

in conjunction with the wages or 

remuneration. 

(d) This Code section shall not apply to any 

individual hired by the taxpayer prior to 

January 1, 2008. 

(f) This Code section shall not apply to wages 

or remuneration paid for labor services to any 

individual who holds and presents to the 

taxpayer a valid license or identification card 

issued by the Georgia Department of Driver 

Services. 

The following three bills (HB 1538, 1539 and 

1541) were introduced to address problems 

related to certificates of insurance for 

subcontractors. These bills were introduced 

late in the session and will be studied over the 

summer and acted on next session. Please talk 

to your insurance reps about these and let us 

know what you think. If you would like copies, 

please let us know. 

HB 1538 Constr. Contracts – Did Not Pass 

By: Rep. Mike Coan (R-Lawrenceville) 

This bill would give the general contractor a 

certain amount of time to notify the subcontractor that 

insurance does not meet specifications. 

HB 1539 Insurance Fraud– Did Not 

Pass 


This bill would specify that a person commits 

insurance fraud if he issues a certificate which purports 

to alter the terms of the insurance policy. 

HB 1541 Contracts of Insurance 

against Public Policy– Did Not Pass 




This bill would prohibit insurance contracts which 

provide for indemnification against liability for damages 

arising out of bodily injury to persons or damage to 

property caused by the sole negligence of a promisee or 

indemnitee in connection with a contract or agreement 

relative to construction. It means that: the sub’s insurance 

policy cannot protect the general if the damage is caused 

by the general’s sole negligence.) 

HB 1542 Gen. Contractor / Homebuilders 

Licensing Law – Extend Time - Passed 

By: Rep. David Ralston (R-Blue Ridge) 

This bill extends the time frames for applications and 

enforcement of the general contractor and home builder 

licensing law by 6 months. 

HB 1381 Journeyman Electr. – Did Not Pass 

By: Rep. Pete Warren (D-Augusta), DuBose Porter 

(D-Dublin), Quincy Murphy (D-Augusta), Calvin Smyre 

(D-Columbus), Nan Orrock (D-Atlanta), Pam Stephenson 

(D-Atlanta) 

This bill would have created an entirely new comprehensive 

Georgia Journeyman Electrician Licensing Act. It provided 

that: 

(a) It shall be unlawful for any person to engage in an 

electrical trade in this state unless that person is currently 

licensed in the state as an apprentice electrician, residential 

trainee electrician, residential journeyman electrician, or 

journeyman electrician. 

(b) No partnership, limited liability company, or corporation 

shall have the right to engage in the electrical trade unless 

there is regularly connected with such partnership, limited 

liability company, or corporation a person or persons 

actually engaged in the performance of such business on a 

full-time basis who have valid licenses issued to them as 

provided for in this chapter. 

SB 580 Journeyman Electr. – Did not pass 

By: Kasim Reed (D-Atlanta) 

This bill would have made significant changes to the 

electrical contractors licensing act adding journeyman 

electricians. 

HB 1063 Ad Valorem Tax on Inventory – 

Did not pass 

By: Rep. Chuck Scheid (R-Cobb Co.) 

This bill would have provided for a statewide 

referendum asking voters whether or not a bill should be 

passed which exempts all businesses from the ad valorem 

tax on inventory. This bill was discussed once in 

committee but was never brought up for a vote. 




HB 1243/SB 573 Amendment) Construction 

Defects - Passed 

By: Rep. Wendell Willard, (R-Sandy Springs) 

Last year a bill was passed which requires 

owners of private residences to notify the builder of 

perceived construction problems, giving the builder an 

opportunity to remedy the situation prior to engaging in 

legal action. This law also applies to multi-family 

commercial condo construction projects. HB 1243 was 

introduced to amend some areas of the new law, 

including one provision that requires 100% of the unit 

owners to sign off prior to a condo or home owners 

association being able to bring suit for a builder defect. 

The 100% was changed to 2/3 or 66%. 

HB 1385 Plan Review by Private 

Architect/Engineer - Passed 

By: Rep. John Heard (R-Lawrenceville) 

This bill provides that private architects and 

engineers may provide plan review and inspection 

services when local or state government cannot, or will 

not provide timely review or inspection services. The bill 

requires the governmental entity to disclose to the permit 

applicant whether or not they can provide construction 

plan review within 30 business days. If they are unable to 

do so, it allows the permit applicant to seek the services 

of a licensed architect or engineer to provide the plan 

review or inspection. The governmental entity still 

maintains the right to issue or deny the permit based 

upon the design meeting code requirements. 

HB 630 Background Checks – Did not pass 

By: Rep. Hill (R-St. Marys), Burmeister (R-Augusta), 

Benfield (D-Atlanta), Henson (D-St. Mountain) and others 

This bill would have provided for criminal record 

background checks for employees, agents, 

subcontractors, and independent subcontractors of inhome 

service companies and residential delivery 

companies whose job duties require or will require entry 

into another person’s residential dwelling. It would have 

provided for civil immunity for employers which perform 

such criminal record background checks under certain 

circumstances. 

HB 1219 Energy Efficient Equipment – 

Sales Tax Holiday - Passed 

By: Rep. Smith (R-Newnan) and others 

This was the Governor’s bill that consolidated the 

dates of the Energy Efficient Equipment Sales Tax Holiday 

and the Back to School Sales Tax Holiday. Both will be 

August 3 – August 6. 

It provides for the exemption from state sales 

tax any purchase of energy efficient products with a sales 

price of $1,500.00 or less per product purchased for 


PAGE 15 

noncommercial home or personal use. “For the purposes 

of this exemption, an energy efficient product is any 

energy efficient product for noncommercial home or 

personal use consisting of any dishwasher, clothes washer, 

air conditioner, ceiling fan, incandescent or flourescent 

light bulb, dehumidifier, programmable thermostat, or 

refrigerator, door, or window, the energy efficiency of 

which has been designated by the United States 

Environmental Protection Agency and the US Dept. of 

Energy as meeting or exceeding each such agency’s 

energy saving efficiency requirements or which have been 

designated as meeting or exceeding such requirements 

under each such agency’s Energy Star program." 

SB 530 Lien Law Revisions - Passed 

By: Sen. Dan Weber (R-Dunwoody) 

This bill addressed a problem that was brought to 

light in a recent case involving trench shoring. In that 

case, the court held that individuals working in the public 

right-of-way had no lien rights, even though the work they 

were performing was for the improvement and benefit of a 

private construction project. SB 530 was introduced to 

provide parties with lien rights against the improved 

private property if they are under contract with and 

performing work on behalf of the improved private 

property. 

HB 111 Contractor Sales and Use Tax 

Withholding Requirements – Passed 

By: Rep. Larry O’Neal (R-Warner Robbins) 

This bill amended a law passed several years ago 

which provided sales and use tax withholding relief for 

Georgia subcontractors and general contractors which 

eliminated the paper work and withholding requirements 

for subcontracts of less than $250,000. This bill only 

requires general contractors to withhold on non resident 

subs. 

Erosion and Sedimentation Control 

A bill was passed several years ago and just now 

going into effect which provides that certain contractors 

have 8 hours of training in Erosion and Sedimentation 

Control. Some county inspectors are interpreting this to 

mean that every contractor who touches the ground must 

have someone on the jobsite who has had this training. 

When we learned about this we called and wrote to EPD 

asking for clarification. We received a response from EPD 

basically saying “projects that disturb less than one acre 

and are more than 200 feet away from the banks of 

perennial streams will NOT require certified personnel.” 

But contractors working on lots in a subdivision or 

industrial parks will have to have one person on the jobsite 

who has had the training. We understand that inspectors 

are even interpreting the law to say that HVAC contractors 

have to have this training and they may disturb enough 

dirt to place an air conditioning unit on it. 


PAGE 16 




There is an Advisory Board to the EPD and Soil and Water Conservation Commission that we 

have been talking to and will meet with to discuss this issue. Hopefully we can convince them 

that HVAC contractors do not have to have this training. We found a “vehicle” to amend this 

year that would have clarified this issue saying that certain contractors did not have to have the 

CE but the River Keepers and Sierra Club opposed this amendment because they said that if we 

exempted certain contractors then other groups would want to be exempted as well. They did 

say that they would work with us this summer and discuss the problem to see what may be 

done. 

Next Year 

Next year we are talking about having a CAAG Day at the Capitol for all of our members to go to the Capitol to see 

how the Legislative process really works. Plan on making that trip! It’s a real eye opener! If you have any 

questions, don’t hesitate to call me. 

Election Year - $$$$$$$ 

Please believe me, I really HATE to ask you for money BUT this is an election year and we are already being 

inundated with requests for campaign contributions from every elected official from the Governor down! We 

don't need to contribute to everyone BUT we do need to contribute to our friends and those who really help us in 

the Legislature. They need these funds for mailings, yard signs, bill boards and advertising in newspapers, 

newsletters, football programs, etc. so that they can get their message and accomplishments out to the voters for 

name recognition. One mailing literally costs them thousands of dollars and the only way they can afford to 

continue serving in office is to have contributions from their friends. Please consider sending CAAG a check to our 

Political Action Committee to help finance these efforts. Make your company check payable to "CAAG PAC" and 

mail it to P. O. Box 1928, Duluth, GA 30096. Send as much as you can or send just a little, but please send 

something. 

Always make contributions through the CAAG PAC. If you want to make a contribution to one of your local 

legislators, please send it to the CAAG PAC and we will either send it IN YOUR NAME to the legislator or we can 

send you a check from the CAAG PAC to give to the legislator. Either way, they will know that the contribution is 

from YOU and CAAG. This is important because when we ask him/her for help in the heat of the legislature we 

want them to remember that we represent YOU and what we are asking them for. If you ever have a question 

about whether your legislator helps CAAG at the Capitol, call and we will be happy to discuss this with you. � 

Jimmy Green Scores Hole 

in ONE! 

Not only did he make a 

hole in ONE but it was on a 

217 yard hole with a 

Masters Champion looking 

on! 

Jimmy Green, Green 

Heating & Cooling, 

Canton, GA., immediate past present of CAAG, was 

attending a Toccoa Falls College spring tour, a fund 

raising event which included two days of golf at Currahee 

Golf Club close to Lake Hartwell. Tommy Aaron, the 

1973 Masters champion, was on that hole for a picture to 

be made with each group. Jimmy said, “When the ball 

rolled in the hole, needless to say, it was one of the most 

exciting moments of my life. It was my first hole in 

one!!!!” Congratulations. Let us know how many you 

make the next time you play!� 

Assured Comfort Helps 

The Families of Our 

Soldiers 

CAAG Member, Assured Comfort, Winston, GA 

was moved by everyday Americans being called to 

duty to go fight a foreign war. Before our troops were deployed, we 

visited our local armory and met with the Family Assistance 

Coordinator, Kim Herndon and 1st Sgt Randy Cross. We let them know 

up front that we would support all deployed families with whatever 

they needed. So far during their deployment we have been called 

upon 8-10 times for service calls. We only charged 1 family for service 

which was to change a 3.5 ton horizontal coil in an attic. I believe we 

charged that family $300-$350.00. The rest of the service calls were 

loose duct work, dirty coils, and bad ignitors. We did not charge those 

families for these services. We offered to do Fall maintenance, but no 

one called. I personally visited the armory ever 90 Days or so to 

remind them of how great an honor this was for us to be able to 

provide this service for the troops. If you want to participate, the main 

thing to do is to stay on top of communications. Let the Family 

Assistance Department know YOU WANT TO DO THIS. Moving 

forward, I will stay in touch with the armory and find out what they 

need as they adjust to daily life back home. Feel free to call me, Jerry 

Hall @ 404-348-7522 or e-mail me jerry@assuredcomfort.com.�

PAGE 17 

JAN-FEB-MAR 2006

PAGE 18 

WOMEN IN THE WORKPLACE 

Firm Remains all in the Family 

By Harris Blackwood 

The Times, Gainesville 

As a little girl, 

Debbie Lawson Davis would 

accompany her father L. D. 

Lawson, to First Baptist 

Church on Green Street to 

check on the cooling system 

before Sunday school. The 

task was a weekly ritual and 

did not do anything to pique 

her interest in the family 

business. 

L. D. Lawson was 

a pioneer in the heating and 

air conditioning business in 

Hall County. The company, 

Lawson Heating & Air Conditioning, installed some of the first central air 

conditioning systems in the area. 

Lawson, whose business began in 1946 as an oil company selling 

oil-fueled furnaces, remained active in the firm until his death in 2000. A few 

years before, he turned the reins over to Debbie and her husband, Vince Davis. 

Entering the family business, which now includes a plumbing 

service, was not the first career choice for Debbie. “I was actually a journalism 

major and right out of school worked as marketing director for Lakeshore Mall,” 

said Davis. “I really had no intentions of coming into the business.” 

In 1985, Debbie joined the company as office manager and worked 

with her father for the next 15 years. She said that she continues to draw from 

his reputation as a businessman. “People still fondly remember Daddy for his 

integrity,” said Davis. “I learned a lot from him in the daddy-daughter sense. 

He always put customers first and never asked an employee to do anything that 

he wouldn’t do himself.” 

Davis said that while she and her husband have made their own 

decisions regarding the business, she credits her father with influencing her 

style. “The way I make decisions came from him,” she said. “The business 

world and technology have changed the way some things are done.” 

She realizes that the building trades are a male-dominated world, 

but has found her comfort zone. “Being a woman business owner in a man’s 

world, I’ve had to prove myself,” she said. “I think that respect is earned in part 

on the reputation of the company.” 

She and her husband, Vince, have two sons, Taylor and Travis, 

who like their mother, have not expressed an interest in the family business. “I 

think they’re a little young to have thoughts in that direction,” she said. 

When his health was declining, Debbie asked her father for his 

thoughts on the future of the company he started. “He would just say, ‘You’ll 

know what’s right, when the time is right,” said Davis. “He knew that he had 

instilled those values in us and trusted that we would do what was right.” 

The company, which started with half-dozen workers in 1946, now 

has 85 employees. Davis said that her father did business with a handshake 

agreement. The company now operates in a competitive environment where 

detailed contracts are often required. “I’d like to think that I’m following in his 

footsteps,” she said. “We must be doing something right to have the continued 

trust of our customers.” � 


The following two articles appeared in the March 26, 2006 edition of The Times in Gainesville, GA. We thought we would share them with you 

since they are about member companies and the women who run them. 

Strong Ties bond business partners 

Conditioned Air Systems run by Doug Magnus and 

two daughters 

By Harris Blackwood 

The Times, Gainesville 

While his company has grown from a start-up operation of seven to a 

staff of 100, Doug Magnus thinks of Conditioned Air Systems as a family 

operation. Two of his top managers have been with him since he opened in 1983. 

But two others were born into the business. Literally. Magnus’ daughters, Baya 

Pruitt and Brooke Kalinauskas, are involved in the day-to-day operations of the 

company. 

For Pruitt, working with the family company began in her teens and 

continued as she pursued her undergraduate and graduate degrees. For 

Kalinauskas, joining the company came after serving on the staff of U.S. Rep. 

Nathan Deal. 

Magnus clearly is happy to have his daughters as his associates. “For 

both of my daughters to work with their dad is sort of unusual,” Magnus said. “I 

couldn’t imagine working anywhere else,” Pruitt said. “I’ve been here long enough to 

know what I’m responsible for and what I’m supposed to do and we know what he 

expects.” 

While her older sister has never worked anywhere else, Brooke first tried 

things on her own. “I was the child who decided I wanted to go away,” Kalinauskas 

said. “I took for granted what was here and it took a little growing up.” 

Magnus has a son, Matt, who works in the construction business in 

Atlanta. He has opted not to join the business for now. “It’s harder for a son to work 

for a dad that it is for the girls,” Magnus said. 

The company’s commercial business has included the construction of air 

conditioning systems in fast growing counties like Gwinnett, Forsyth, Cherokee and 

Fulton. Magnus said that a large portion of his business is outside of Hall County. 

“My intentions were never to be as big as we are,” Magnus said. “But your 

relationship with contractors grows, and you have to grown with them or you get left 

behind.” 

The Gainesville location includes a large sheet metal fabrication shop, 

which uses computer technology. The company’s residential service department has 

grown extensively in the past few years. 

The company currently is working on a school project in Newnan, about 

30 miles south of Hartsfield-Jackson International Airport. 

Magnus says he looks upon his daughters as partners in the business. “I 

have no intention of selling the business or I would have already sold it,” Magnus 

said. “They know it is theirs to 

manage and run. I’m not as involved 

in the day-to-day operations as they 

are.” 

Magnus said the most 

difficult task for an owner who starts a 

company is passing on responsibility 

to others. “That’s the hardest thing to 

do and I think I’ve done that as 

anybody dreamed I could,” he said, 

adding that empowering his managers 

has been a successful formula. “This 

company is pretty much well-oiled.” 

� 

CAAG Members, Brooke & Andy Kalinauskas, 

Conditioned Air Systems

PAGE 19 

JAN-FEB-MAR 2006

PAGE 20 


GUIDELINE TO MEET REQUIREMENTS OF BOARD RULE 121-2-.03 

Following is a copy of the letter that went out to all review course providers and the tech schools explaining what the 

State Construction Industry Licensing Board is looking for in a certificate and/or submission of documentation of a 

candidate having taken the heat loss/gain & duct design course(s).

PAGE 21 

Marietta HVAC 

Firm Launches 

Unique 

Employee 

Recognition 

Program 

Casteel Heating & Cooling to 

Reward ‘Xtreme Installer 2006’ 

with Classic Ford Mustang 

What businesses offer the most innovative employee rewards? While a number of high-profile firms 

most likely come to mind, it is doubtful that one would associate such programs with a HVAC 

contractor. 

Casteel Heating & Cooling Inc., a midsized HVAC company based in Marietta, GA, may just change 

that perception with its latest employee reward program. Their Xtreme Installer 2006 program 

offers a 1988 Mustang 5.0 automobile as its top prize. The beautiful deep shadow blue classic car, 

which has been personally restored by owner and president Bob Casteel and vice president John 

Hillis, will be awarded to the firm’s top system installer for the period of Jan 1 through August 31, 

2006. 

The entire Casteel team was on hand at the company headquarters on January 4th for the launch of 

the program and the unveiling of the newly restored Mustang. The Mustang will be presented to the 

installer that achieves the best overall performance based on a combination of customer survey 

results, quality installation inspections, and callback ratio. In addition, the installer’s helper will 

receive a Microsoft Xbox 360 with games for his valuable contribution to the winning team. The 

contest is also open to new employees that join Casteel in early 2006. 

Casteel, which has been serving the Metro Atlanta HVAC market since 1987, has found that offering 

unique rewards and perks to their employees helps them to attract and retain great people. “We 

have built our business on hard work, dedication and a commitment to service”, stated Bob Casteel. 

“We use reward programs like this to recognize team members that share our enthusiasm for these 

principals. They also serve as a valuable recruiting tool, helping us find highly motivated employees 

that want to be rewarded for their extra effort.” 


“The Mustang is our largest prize so far”, added John Hillis. “We like to reward our performers in a 

variety of ways. Last year we sent four people on an expense-paid trip to NASCAR’s Talladega 500. 

Right now, we are also running a technician contest that offers a four day family trip to a Pigeon 

Forge, TN mountain cabin. We also do smaller programs each quarter. In all cases, we like to make 

the rewards something meaningful rather than just financial.” Supporting this personal approach, the 

managers spent months of their personal time to restore the Mustang so that it would convey a 

special sense of appreciation to the entire Casteel team. 

While the HVAC industry may not be recognized for employee recognition, its contractors are more 

importantly judged daily by the customers that welcome them into their homes and businesses. By 

rewarding excellence within their team, Casteel maintains its focus on providing the level of service 

that keeps their customers coming back while also referring others to use their services. �

PAGE 22 

Copper a target of midstate thieves 

By Tim Sturrock 


This article was supplied to us by Todd Harden with Georgia Cooling and originally appeared in the March 28, 2006 issue of the Macon Telegraph. 

Macon TELEGRAPH STAFF WRITER 

Thieves have broken into a vacant building Danny Bullington owns several times in the past year, pulling out copper wire, coils and 

any other copper they could get their hands on. 

Bullington says he's sick of it. 

Of the wiring that's left in the south Macon building, there are signs that the culprits tried to take it, too. 

"We just know they're coming back," he said. "It's so frustrating." 

Bullington finds himself the victim of a troubling national trend: As the resale value of copper spikes, so do the number of thefts. 

The price of copper has doubled in the past year, to about $2 a pound, and that has made the metal a prime target. 

Churches, construction sites, air-conditioning units and cell-phone towers have been hit, said Capt. David Davis, a spokesman for the 

Bibb County Sheriff's Office. Some thieves are even taking pieces of ground wire from utility poles. In Bibb County, Davis said, there 

were about 30 copper thefts in 2005, and almost that many so far this year. 

"It's an easy metal to get because it's a metal that's in a lot of different things. It's an easy mark for people who want to make some 

money," he said. "With these thefts, you'd think it was worth the price of gold." 

Typically the thieves have hit abandoned houses, but secluded businesses have been hit as well, he said. And because churches don't 

always have someone there, they are sometimes a target. 

Last week, two Macon men were charged with breaking into the Westfield Schools in Perry to try to steal copper wire. After their 

arrests, Perry police began contacting other law-enforcement agencies in the area to see if the men might be wanted in connection with 

other cases. 

TOUGHER CITY LAW? 

A potential new ordinance regulating scrap metal sales was discussed during Monday's meeting of the Macon City Council's Public 

Safety Committee. 

The ordinance, proposed by Councilman Mike Cranford, was tabled to allow city officials to compare it to existing state law to see if a 

local ordinance is necessary. 

But Cranford said he would like to see the proposal become law, so police will be "more aware" of rules that require identification and 

proof of ownership before scrap metal can be sold. 

"I don't think the law was being followed," Cranford said. 

Macon police detective David Freeland said it's difficult to catch the thieves because scrap businesses may not always know if 

something is stolen. Scrap buyers have to record identification from sellers. Police sometimes look at who's selling the scrap and look 

for patterns, he said. 

Alvin Hirsh, co-owner of Aluminum Recycling of Warner Robins, said state law began requiring scrap buyers to record a seller's ID 

after a copper price spike in the early 1990s. 

Sometimes it can be difficult to tell if something is stolen, he said, but there are signs. 

"If someone brings in something that looks too good to be scrap, you have to ask questions and be on the alert," Hirsh said. 

Art Barry, an industrial real estate broker in Macon, said several buildings he's trying to sell have been hit recently. Ten years ago the 

thefts were rare, but now it's almost expected, Barry said. 

The former Dan River Mills facility in Peach County has been targeted, as well as several buildings in Bibb County, Barry said. The 

damage has reached in the hundreds of thousands of dollars in some cases. 

New locks and part-time security guards could not keep the thieves out of the Peach County facility, he said. 

"It's slowed them down but it hasn't stopped the problem. The problem is that the sheriff's 

department can't sit in your building and baby-sit your building." 

Barry said it's often difficult to get insurance for vacant buildings, and full-time security is 

expensive, although he recommends it to his clients. 

He suggested that the owners of vacant buildings all pay for a security guard to go from one site 

to the next in search of thieves. 

Hirsh said there doesn't seem to be a stop to the price increases, as the demand in other parts of 

the world continues. 

Right now he pays about $2 a pound for copper, about double what it was a year ago. 

He said his prices reflect the market. 

"Everybody's thinking it's going to stop, but it keeps going up," he said. 

Tim Sturrock can be reached at 744-4347 or tsturrock@macontel.com. 

Travis Fain contributed to this story.

House Bill 304 (AS PASSED HOUSE AND SENATE) 

By: Representatives Burmeister of the 119 th, Yates of the 73 rd, Shaw of the 176 th, Cummings of the 16 th, and Rice of the 51 st 

A BILL TO BE ENTITLED 

AN ACT 

To amend Chapter 60 of Title 36 of the Official Code of Georgia Annotated, relating to general provisions applicable to counties and municipal corporations, so as to prohibit local 

governments from prohibiting or regulating the sale of certain lawful products or services; to provide for exceptions; to provide that ordinances in violation of such provisions are 

void; to amend Article 1 of Chapter 13 of Title 48 of the Official Code of Georgia Annotated, relating to general provisions concerning specific, business, and occupation taxes, so as 

to change the provisions relating to the imposition and determination of the amount of certain regulatory fees by local governments; to provide for the timing of payment of certain 

regulatory fees; to provide for related matters; to provide an effective date; to provide for applicability; to repeal conflicting laws; and for other purposes. 

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA: 

SECTION 1. 

Chapter 60 of Title 36 of the Official Code of Georgia Annotated, relating to general provisions applicable to counties and municipal corporations, is amended by inserting a new 

Code section to be designated Code Section 36-60-24 to read as follows: 

"36-60-24. 

(a) The governing authority of a county or municipal corporation shall not prohibit the sale of products or services which products or services are lawful under subsection (b) of Code 

Section 25-10-1, unless such prohibition is expressly authorized by the general law of the state. 

(b) If the sale of a product or service is regulated by subsection (b) of Code Section 25-10-1, the governing authority of a county or municipal corporation shall not enact additional 

regulation of the sale of such product or service, unless such additional regulation is expressly authorized by general law. 

(c) Any ordinance enacted before, on, or after July 1, 2006, by a county or municipal corporation in violation of this Code section is void." 

SECTION 2. 

Article 1 of Chapter 13 of Title 48 of the Official Code of Georgia Annotated, relating to general provisions concerning specific, business, and occupation taxes, is amended by 

adding a new subsection (e) to Code Section 48-13-9, relating to limitation on authority of local government to impose regulatory fee, to read as follows: 

"(e) For each business, profession, or occupation, local governments are authorized to determine the amount of a regulatory fee imposed in accordance with this article only by one 

of the following methods: 

(1) A flat fee for each business or practitioner of a profession or occupation doing business in the jurisdiction as authorized by Code Section 48-13-8; 

(2) A flat fee for each type of permit or inspection requested; 

(3) An hourly rate determined by the hourly wage or salary, including employee benefits, of the person or persons assigned to investigate or inspect multiplied by the number of 

hours estimated for the investigation or inspection to be performed; 

(4) An hourly rate as determined by paragraph (3) of this subsection with the addition of other expenses reasonably related to such regulatory activity, such as administrative and 

travel expenses, multiplied by the number of hours estimated for the investigation or inspection to be performed; 

(5) For construction projects that are classified as new construction, the number of square feet of construction or the number of square feet of construction to be served by the 

system to be installed, in conjunction with and limited by the building valuation data, as established from time to time by the International Code Council or by similar data, and in 

conjunction with and limited by the hourly rate described in paragraph (3) or (4) of this subsection; or 

(6) For construction projects that are classified as renovation and all other construction projects other than those classified as new construction, the cost of the project in conjunction 

with and limited by the building valuation data that conforms with the principles and methods established from time to time by the International Code Council or by similar data, and 

in conjunction with and limited by the hourly rate described in paragraph (3) or (4) of this subsection." 

SECTION 3. 

Said article is further amended by striking subsections (b) and (c) of Code Section 48-13-20, relating to time for payment of fees and taxes, and inserting in lieu thereof new 

subsections (b) and (c) to read as follows: 

"(b) Regulatory fees authorized by this chapter shall be paid before commencing business or the practice of a profession or occupation as a condition precedent for transacting 

business, or practicing a profession or occupation. 

(c) Regulatory fees may be paid after commencing business or the practice of a profession or occupation when: 

(1) The work done or services provided are necessary for the health, comfort, or safety of one or more individuals or protection of property. This paragraph shall apply to, but not be 

limited to, the repair, service, or installation of heating, ventilation, and air conditioning equipment or systems; 

(2) The work done or services provided have no adverse effect on any other person; and 

(3) Regulatory fees are tendered to the local government within two business days after commencing business or the practice of a profession or occupation and any and all required 

inspections are made in order to ensure compliance with applicable codes; and 

(4) The work is commenced or the services are provided within 24 hours of receiving the request for such work or service and it is not possible for the person conducting the work or 

providing the service to obtain a permit prior to commencing due to the hours of operation of the local government s offices." 

SECTION 4. 

This Act shall become effective on July 1, 2006. 

SECTION 5. 

All laws and parts of laws in conflict with this Act are repealed.

Conditioned Air Assn. 

of Georgia 

P. O. Box 1928 

Duluth, GA 30096 

Phone: 678-646-2224 or 800-610-2224 

Fax: 678-646-0379 

Email: bruce@caag.org 

TO: 

ARE YOUR WORK COMP RATES SKYROCKETING? 

CAAG Meets with Insurance Commissioner Oxendine 

As most of you now know, the Work Comp class codes for our industry have changed 

this year. As of your next renewal, you insurance carrier will be lumping your entire field payroll 

into one new HVAC code, 5538. In the past, you have used several codes, such as Electrical, 

Plumbing/AC and Sheet Metal. From what we are hearing from some of the members, this change 

in classification is increasing costs significantly. 

On Tuesday, April 25, 2006, Bruce & Ashley Widener, Art Wolken from WS Pharr and 

Bob Fyfe met with the Georgia State Insurance Commission, Mr. John Oxendine to make him 

aware of this potential financial impact on our members. We discussed several alternatives but 

came away from our meeting pleased the Mr. Oxendine is very concerned about our problem. 

Before he can address the sizable increase in premium, he wants us to help him determine 

just how big of a problem this is for CAAG members. He has asked us to begin collecting a 

comparison of rates our members paid for last year vs. this year. We need to do this as soon as possible. 

All we need is (4) pages from your policies to do our comparison. Please fax or email the front page of your work comp policy for this 

year and last. Also include the one page that shows your rates and payroll for the various classifications for both years. Once we have received 

these, we will calculate the amount of increase to our members and meet again with the commissioner. Commissioner Oxendine has agreed to do 

everything possible to try and help us. 

Please send your info to Bob Fyfe who is handing CAAG’s group insurance @ bfyfe@wspharr.com or fax to 770-434-0146. If you 

have any questions, please feel free to call Bob. Remember, the only we can help you is if you send us proof of your rate increase. Bob Fyfe, W. 

S. Pharr and Company, Exclusive Agents for CAAG, 678-302-5071 Direct, 770-434-0146 Fax � 

Service Agreements Require A Surety Bond? 

Last year HB 428 was passed by Rep. Jerry Keen (R-St. Simons) which provided that certain agreements “whereby any person assumes 

the risk of and the expense or portion of such expense for the breakdown, service, repair, or replacement due to normal wear and tear or structural 

or inherent defect to the major appliances, utility systems, and roofing system of any one-family or two-family residential building structure 

in exchange for a separately stated consideration” would have to provide a $100,000 surety bond. When we talked to the author about this last 

year, we were told that our service agreements were not insurance contracts and that all we had to do was to “state clearly and conspicuously 

substantially the following: 'This is not a contract of insurance'” on the agreement. 

One of our good members was contacted recently by the Insurance Department saying that they had questions about all HVAC dealers 

who offer Service Agreements or Maintenance Agreements CAAG’s Bruce and Ashley Widener met with the Insurance Commissioner about 

this. We explained the difference between a Service or Maintenance Agreement and a Home Warranty. His initial reaction was that if the Service 

Agreement only said that the homeowner was paying for service in advance and the agreement was between the homeowner and the HVAC 

contractor that this was not an insurance contract and there would be no need for the $100,000 surety bond. However, if the agreement said that 

someone other than the HVAC contractor (another company) would provide the service if something happened to the HVAC contractor who sold 

the agreement or if the agreement provided for the replacement of equipment, then it would be closer to an insurance contract and would require 

the surety bond. The Commissioner is discussing this with his staff and will have a ruling shortly and we will notify you ASAP. o

CAAG CONNECTION - Conditioned Air Association of Georgia

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