2016 LEGISLATIVE AGENDA

ADVANCING THE TECHNOLOGY INDUSTRY IN GEORGIA

About the Technology Association of Georgia

The Technology Association of Georgia (TAG) is the leading technology industry association in the state, serving more than 33,000 members and hosting over 200 events each year. TAG serves as an umbrella organization for 34 industry societies, each of which provides rich content for TAG constituents. TAG’s mission is to educate, promote, influence and unite Georgia’s technology community to foster an innovative and connected marketplace that stimulates and enhances a tech-based economy. The association provides members with access to networking and educational programs; recognizes and promotes Georgia’s technology leaders and companies; and advocates for legislative action that enhances the state’s economic climate for technology.

Tino Mantella President & CEO

Stacie Hagen TAG Board of Directors, Chair

Heather Maxfield Vice President, Government Relations & Statewide

Joseph Santoro Director of External Affairs

Kimberly Steele Associate Director of Quantum Growth & Government Affairs

Contact Information: 75 Fifth Street NW Suite 625 Atlanta, GA 30308direct: 404.920.2022 email: Heather@tagonline.org

• Kevin Curtin, AT&T (Chair)• Michael Wall, Comcast

(Vice-Chair)• Casey Aultman, Georgia Tech• Brandi Bazemore,

Metro Atlanta Chamber• Jon Burton, LexisNexis• Justin Clay, NCR• Bob Davis, Verizon• Megan Douglas, Morehouse

School of Medicine• Jim Flowers, Clayton State

University

• Zel Gilbert, CenturyLink• Slade Gulledge, Cobb Chamber

of Commerce• Elizabeth Harwood, Georgia

Chamber of Commerce• Brandon Hembree, Massey,

Bowers & Hembree• Robert Hendricks, McKesson• Deron Hicks, TSYS• Cosby Johnson, Georgia

Chamber of Commerce• Bryson Koehler, The Weather

Company

• Terry Lawler, Encore Capital Group

• Loretta Lepore, Lepore Associates

• Jeff McCord, Georgia Technology Authority

• Kelly McCutchen, Georgia Public Policy Foundation

• Amol Naik, Google• Jason Newman, HP• Brenda Potter, Fiserv• John Simpson, Simpson Public

Affairs

• Graham Thompson, ThompsonVictory Group

• Chris Vaughan, McKesson• Elizabeth Wharton, Hall, Booth

Smith• Pat Williams, McKenzie Daniels

& Assoc.• Robb Willis, Troutman Sanders• Maria Zach, Strollo Group

2016 TAG Government Relations Task Force

A Message from Tino Mantella, TAG President and CEOThe Technology Association of Georgia is committed to working with our federal, state and local elected officials to promote sound public policies that will enhance the growth of the technology industry, as well as, Georgia’s overall economic development. To ensure we are adequately serving our growing membership base of over 33,000, TAG’s Government Relations efforts will focus on industry & educational outreach to lawmakers and provide General Assembly updates to TAG members.

TAG looks forward to working with elected officials this upcoming legislative session to make Georgia a top state for technology. Please connect with our government affairs team on any state or federal issues. TAG remains a tech-policy resource for our members and the Georgia Technology community throughout the session.

Sincerely,

Tino MantellaPresident and CEOTechnology Association of Georgia

TAG 2016 Legislative Agenda Priorities• Business & Industry• Economic Development & Taxation• Innovation & Entrepreneurship• Education & Workforce• Procurement

Where Georgia LeadsGeorgia is a global center for logistics technology, information securitytechnology, financial technology, health IT, and communication services. Georgia ranks 5th in the nation for logistics employment with nearly 11,000 provides and 300 companies. Georgia is home to more than 115 information security companies generating more than $4.7 billion in annual revenue. Georgia FinTech company revenues are more than $34 billion annually, placing us third in the nation behind New York and California. Georgia has more than 200 health IT companies and is rapidly growing. Finally, Georgia is among that top 5 states for communication services employment.

Business & Industry

Principle

The success and growth of the technology sector in Georgia is critical to our state’s long term growth. Through targeted policies, the state can enable both entrepreneurial startups and established tech companies to prosper in urban and rural areas. It is important that Georgia supports private sector, market driven solutions that are free of burdensome regulation and foster a globally competitive business environment. With the state’s advanced workforce, technology research centers and ideal access to broadband, Georgia must be a leader not just in the southeast but in the country.

Actions

Data Breach Notifications

Issue:There is currently no national standard for how a company must notify its customers in the wake of a data breach. Instead, companies must navigate a complex web of 47 different, often conflicting, regularly changing state data breach notification laws in the aftermath of a breach. With the increasingly mobile and decentralized nature of our economy, data storage and dissemination technologies, it can be nearly impossible for companies to determine which state laws apply when a breach occurs. The current regulatory landscape not only places an immense financial compliance burden on businesses, but also delays the process of getting information into the hands of those who need it most: the customers whose data was compromised.

What TAG Supports: TAG supports a national standard for data breach notification would provide consumers and businesses with consistency and predictability on how consumer notice must be provided.

Business & Industry

Unmanned Aircraft System (UAS)

Issue:The FAA Modernization and Reform Act of 2012 requires the Federal Aviation Administration to fully integrate unmanned aircraft into the national airspace and implement standards for unmanned aircraft system (UAS) operation. The FAA proposed draft rules for the operation of UAS in the national airspace on February 15, 2015. Pending implementation of the final regulations, the FAA has created two main exemption methods for use of UAS by public entities (Certificates of Authorization or Waiver, “COA”) and by commercial businesses (Section 333 Exemption).

Georgia is a leading hub for technology research on the operation of and uses for unmanned aircraft systems (UAS). There are over 28 Section 333 Exemptions currently issued to companies located within the State of Georgia. CNN has been selected by the FAA as its sole partner to research the safe media and commercial use of UAS in urban areas. partner to research and commercial use of UAS in urban areas.

What TAG Supports: TAG supports the development of federal regulations that encourage continued innovation in UAS technology while protecting individual safety and data privacy. TAG encourages state and local leaders to collaborate with the FAA in order to prevent a patchwork of conflicting ordinances and regulations, unnecessarily burdening UAS operators and stymying economic development.

Cybersecurity - Information Sharing

Issue:The need for a strong public-private partnership in cybersecurity becomes more obvious with every cyber-attack. With as many as 21.5 million people affected by the 2015 OPM breach alone, it is becoming more likely than not that an American citizen will be a victim of data breach at least once in their lifetime. While we cannot alter the intent of those who wish to attack, disrupt and destroy our infrastructure and security, there is more we can and should do to prevent and mitigate attacks before they do harm. Enhanced voluntary information sharing between industry and government would go a long way in helping to mitigate attacks. However, under our current laws industry would be vulnerable to litigation by sharing information and the government has limited guidelines for sharing information with the private sector.

What TAG Supports: TAG supports fostering the existing public-private partnership that already exists between the government and industry by creating a trusted environment that makes the sharing of information easier for both contingents.

Business & Industry

Religious Freedom Restoration Act

Issue:The Religious Freedom Restoration Act (RFRA) of 1993 was a federal act passed by the U.S. House and Senate and signed into law by President Clinton. This law protects individuals from laws and actions taken by the government that infringe on their freedom to practice their religion, unless the infringements are necessary to further a compelling government interest. In 1997, the U.S. Supreme Court ruled RFRA unconstitutional as it applied to states, but it continues to be applied to the federal government.

What TAG Supports: TAG opposes legislation that would create discriminatory business practices against any organization or individual which could negatively impact the state as a center for doing business.

Decedent Accounts

Issue:

What happens to your digital accounts when you die?

Because the federal Electronic Communications Privacy Act, originally passed in 1986 and only updated a handful of times since then, is clear on communication between providers and users, closing digital accounts post-death has become a question. Providers feel that they are strictly held to the letter of the law and will not allow individuals who are not the registered users of the account to gain access to contents of the account in question without direct communication from the original user.

What TAG Supports: TAG supports access to transactional data of digital accounts. Transactional data would allow estate executors to determine what, if any, accounts the user owned and could point the direction to close out the deceased’s estate. For example, directional information such as the “to” and “from” of an email could potentially be released, but anything in the subject or body may not. Any contents within an account such as emails, images, documents, etc. may not be released without permission from the user. Until the federal law is changed, which we support, we cannot allow more than transactional data to be released at this time.

Economic Development & Taxation

Principle

The technology industry has a $113 billion economic impact on the state of Georgia, which accounts for nearly 17% of the state’s economy. It is vital that we sustain and cultivate this maturing industry to ensure Georgia’s economic success in the years ahead. Georgia should pursue tax and business policies that: promote statewide access to technology resources throughout the state, are both equitable and stimulating to the unique challenges of the industry, and encourage job growth and new business creation.

• TAG supports utilizing technology to bolster statewide economicdevelopment.

• TAG supports the study of emerging technologies and the impactthe technology industry can have onGeorgia’s economic development.

• TAG supports business-friendly policies and taxincentives that promote the growth and development oftechnology companies and infrastructure throughout Georgia.

• TAG supports legislation that will encourage thedevelopment, growth, recruitment and retention oftechnology companies.

Actions

R&D Tax Credit

Issue:The research and development (R&D) tax credit expired at the end of 2014. Since it was first Federally enacted in 1981, the credit has been extended 16 times, sometimes retroactively. This stop and go approach to the credit has negatively impacted the goal of the credit, which is to encourage long term innovation that will boost the economy and increase employment. That is, innovative entities have not been able to rely on the continued existence of the R&D tax credit, and therefore, have not been able to factor its economic incentives into their longer-term research and experimentation efforts.

What TAG Supports: TAG supports the continuation of R&D tax credits.

Economic Development & Taxation

Data Center Tax Incentives

Issue:The data center industry is one of the fastest growing property types in the United States. As the world’s economy continues its affinity for, and its reliance upon, information and data through traditional, as well as “cloud” computing, the need for facilities to store and transmit the ever expanding universe of data will continue to grow.

It is vital for Georgia’s economy to revisit the incentives for data center companies to expand or locate to Georgia, as they provide highly skilled individuals and infrastructure needed for other companies to build upon. Nearly all Fortune 1000 companies utilize data centers for their operations. In addition, all levels of government are increasingly reliant upon speeding data, information, and communications to meet their mission.

Since 2005, 23 states have passed legislation to provide customized tax incentive programs for data centers. These states provide full or partial exemption of sales tax for various investment types. The exemptions include construction, mechanical and electrical equipment, cooling systems, power infrastructure, electricity, and backup fuel and are covered to varying degrees.

Key Points to Know: • Data centers can be a significant source of new revenue.• Data center development represents the most robust and

economically resilient sector of the Information Age economy. They invest huge sums of money in initial investment and then, due to the fail-safe nature of their operations, they invest millions in “refreshing” their systems and servers on a 3-5 year cycle.

• Data centers tend to group together in clusters, and it is likely that once a certain geography attracts big name users, others will follow.

What TAG Supports: TAG supports expanding the data center exemption by making the following adjustments to the tax code to provide the following benefits for data centers and its tenants:• Alleviate Georgia state sales tax on equipment purchased for data

center operations.• Alleviate Georgia state sales tax electricity which is necessary

and integral to data center operations, except local taxes paid for educational purposes.

Economic Development & Taxation

Digital Goods & Services

Issue:According to recent data, eighty seven percent of Americans are using the Internet and over 200 million Internet users will make an online purchase this year alone. The digital economy continues to play a strong role in both the growth of the Internet and the ability for businesses to better deliver digital goods and services. Given the importance of the digital economy to our member companies and the need to ensure we can continue to foster innovation and economic growth within this sector, we strongly support the Federal Digital Goods and Services Tax Fairness Act (H.R. 1643). This legislation will prevent hurdles to growth and create a much needed tax framework that will provide certainty to consumers, providers, and state/local governments. What TAG Supports: TAG supports legislation such as the Federal Digital Goods and Services Tax Fairness Act. This legislation would provide consistency in determining which jurisdiction can tax a transaction and denote which party is responsible for collecting and/or paying over the tax to the taxing jurisdiction.• As the digital economy continues to play a major role in our

economic growth, congress should make sure there is a clear framework in place that prevents the potential for confusion or – even worse – duplicative taxation.

• Legislation is needed to prevent tax jurisdictions from imposing multiple taxes as digital goods and services move from one tax jurisdiction to the next across the Internet.

• Without legislation, compliance costs will increase for both consumers and taxing authorities, as states argue over which jurisdiction is permitted to tax a specific transaction.

Innovation & Entrepreneurship

Actions

Invest Georgia

Issue:The lack of access to venture capital funding is causing Georgia start-up companies to relocate to other states such as California, Colorado, Massachusetts, and North Carolina. Other states such as North Carolina and Florida have seen an outstanding rate of return from state venture capital funding. In fact, the North Carolina Innovation Funds first round of $232 million has already shown a 20% internal rate of return. Florida’s Growth Fund which has nearly $400 million experienced an internal rate of return of 14.96%.

In 2013, the state established Invest Georgia, a state-based venture capital fund designed to provide up to $100 million in funding for Georgia Startup companies. However, the Invest Georgia fund lags behind other southeastern states’ venture capital investment programs. As of 2015, the state has appropriated $10 million into Invest Georgia; whereas, North Carolina has nearly a $500 million VC fund and Florida invested nearly $400 million to its VC fund. If Georgia does not keep up with the national trend of state venture capital funding, Georgia will continue to lose tech startups inevitably jeopardizing the growth of Georgia’s technology sector.

Principle

A critical component to economic success and job creation in Georgia is through the support and growth of early to growth stage, Georgia-based, technology companies. In order to ensure this success, the state of Georgia should pursue policies that stimulate innovation, encourage entrepreneurial activities, retain intellectual capital and grow knowledge-based jobs. This can be accomplished by assuring access to capital, implementing creative and effective tax reforms, and encouraging support programs that advance the competitiveness of Georgia technology companies.

• TAG encourages the support of early and growth stage Georgia companies that have the ability to impact the technology industry and support Georgia’s economic development.

• TAG supports creative and effective tax reform legislation that will help foster innovation and support for statewide entrepreneurship activities.

• TAG supports legislation that stimulates innovative business concepts, fosters competition, reduces barriers to entry and provides retention and growth for high-tech entrepreneurs and technology businesses.

Innovation & Entrepreneurship

Key Points to Know: • Invest Georgia Fund will grow businesses that in turn will create

and retain jobs in Georgia.• Invest Georgia is an accountable program with a clear oversight

mechanism in place with an advisory board and third party fiduciary, which is required to report all metrics related to investments to the General Assembly & Governor annually.

• Invest Georgia addresses the funding gap for growth stage companies-like ISS and Secure Works which were later acquired by IBM & Dell respectively.

• The Invest Georgia Program requires venture capital firms to raise private funds to match tax credit funds - minimum 10% for early stage funds, minimum 50% for growth stage funds.

• Invest Georgia is an evergreen fund where 100% of tax credit investment is returned to the program plus 80% of the profit, 20% profit resides with VC funds, as occurs in the private sector.

What TAG Supports: TAG supports funding the Invest Georgia fund which will increase access to capital for investments into early and growth stage, job producing companies within Georgia. The Invest Georgia program has a significant amount of accountability, high level of governance structure and state oversight throughout the life of the program and TAG will continue to support the bill. The funds return to the state quantified by creating jobs, funding businesses, business revenue generated, state taxes generated and positive returns on capital invested.

Education & Workforce

Actions

Hope Scholarship Calculations for STEM-Related Courses

Issue:A student who graduates from a HOPE eligible high school in 1993 or later may qualify for the HOPE Scholarship as an entering freshman in a degree program at an eligible college or university in Georgia. The student must earn a 3.00 cumulative grade point average on all core coursework.

Workforce demand for IT professionals in Georgia reached a new high in October this year when employers looking for technology talent posted a daily average of 4,780 job openings. Georgia needs to make sure our homegrown talent is incentivized to go into these STEM related fields and not fear losing their HOPE Scholarship status. Students who rely on HOPE Scholarship funds in order to stay in school generally steer away from STEM related courses & degrees, not because they are unable to complete the coursework but the fear of not maintaining their HOPE Scholarship.

What TAG Supports: TAG supports increasing the point system for STEM related courses in the Georgia Student Finance Commission (GSFC) calculations of the HOPE Scholarship. This will further incentivize students to take harder STEM courses and not fear losing their HOPE Scholarship.

TAG supports a universal approach which applies to all public universities in Georgia and the Board of Regents decides which STEM courses are applicable for the new point system.

Principle

Education is the foundation for a competitive workforce that is required to drive innovation in our 21st century economy. Technology advancement has contributed heavily to U.S. economic growth over the past several decades and moving forward, the nation’s fast-est-growing occupations will necessitate workers with skill sets in science, technology, engineering and mathematics (STEM). In order to remain globally competitive, TAG supports public policy that fosters STEM education at all levels of learning; inspires a new generation of innovators and entrepreneurs; and incorporates appropriate technology tools and expertise in student instruction.

• TAG supports alignment of STEM curriculum with identified needs of the business workforce.

• TAG supports benchmarking to assess current capabilities and set future goals.

• TAG supports policy and funding efforts to encourage on-line interactive and digital learning initiatives.

• TAG supports efforts to include technology needs for students as part of the state’s QBE funding formula.

• TAG encourages the support of early and growth stage Georgia companies that have the ability to impact the technology industry and support Georgia’s economic development.

• TAG supports creative and effective tax reform legislation that will help foster innovation and support for statewide entrepreneurship activities.

• TAG supports legislation that stimulates innovative business concepts, fosters competition, reduces barriers to entry and provides retention and growth for high-tech entrepreneurs and technology businesses.

Education & Workforce

Cyber Security Workforce

Issue:The challenge we face is to produce the best-trained professionals in the world, equipped with proper tools. There is currently a skills shortage when it comes to filling cybersecurity jobs. Furthermore, we need to ensure that those who are already performing cybersecurity job functions have the requisite skills needed to carryout tasks. At every level of government, there are a variety of challenges being faced in ensuring a strong cybersecurity workforce including: ability to recruit and retain talent; funding for workforce needs; and a lack of career pathways.

What TAG Supports: TAG supports full integration of the National Initiative for Cybersecurity Education (NICE) framework, particularly as it relates to professionalization and training of the workforce, across all government agencies. NICE is a nationally-coordinated effort comprising over 20 Federal departments and agencies, academia, and industry. The mission of this initiative is to enhance the overall cybersecurity posture of the United States by accelerating the availability of educational and training resources designed to improve the cyber behavior, skills, and knowledge of every segment of the population, enabling a safer cyberspace for all.

Student Data Privacy

Issue:The connection between education and technology is increasingly robust, and the responsible but effective use of student information can improve learning outcomes and preparation for the global marketplace. Yet this can only happen if there is shared trust and a workable framework amongst students, parents, educational institutions and technology providers.

What TAG Supports: TAG supports the responsible use and stewardship of student data by schools, districts, and service providers, including analyzing student data to deliver personalized learning experiences to improve products for use. Educational technology allows students to learn in ways never before seen. In today’s digital age, students can use the same techno-logical platforms they use in everyday life to advance their studies and embrace new concepts.

Education & Workforce

Agricultural-Machinery Systems Technology Degree Program for TCSG

Issue:The Agriculture Technology (AT) degree will emphasis on basic science and technology with courses in mathematics, physics, chemistry, biology, machinery, conservation, safety, and business. The AT degree would provide a solid technological and management focus on the application of basic agricultural engineering technology, including new emerging technologies. The degree program will primarily focus on Machinery Systems, Environmental Systems, and Agribusiness.

The Technical College System of Georgia (TCSG) oversees the state’s technical colleges, adult literacy programs, and a host of economic and workforce development programs. With over 20 Technical College in Georgia, only a few tech colleges such as the South Georgia Technical College offer a degree in Agricultural Technology.

What TAG Supports: TAG supports a growth in Agricultural-Machinery Systems Technology Degree programs in the TCSG. This area offers career opportunities in agricultural production systems, machinery, farm structures and precision agriculture. Positions are with agricultural production and machinery companies as well as with government agencies. These positions require knowledge of technology and the ability to implement and operate agricultural machinery and tools proficiently and efficiently. The employer needs in this area are changing with developments in emerging technologies like the integration of sensors and electronic controls.

Add Automotive Technology Degree to Hope Scholarship

Issue:Strategic Industries Workforce Development Grant is available to Georgia residents who are pursuing a certificate or diploma and eligible for, and receiving, HOPE Grant or Zell Miller Grant funding. The grant provides assistance toward educational costs for eligible students enrolled in an approved designated program of study. The grant program for specific industries includes Diesel Equipment Technology degree, but does not include high-tech Automotive Technology degree programs.

What TAG Supports: TAG supports including the high-tech Automotive Technology degree programs as part of the Strategic Industries Workforce Development Grant. There currently is over 400 jobs available in this field. Georgia needs to incentivize students to gain these necessary skills and these are high paying jobs. The skills required for the new vehicles are not what we traditionally think, furthermore, new automobiles have more than 100 processors and CPUs.

Procurement

Principle

Georgia government, at both the state and local level, relies on technology solutions and services provided by private sector companies. Whether through the provision of single or comprehensive technology solution or service, technology companies have the ability to contribute towards a more efficient and effective government. The state should encourage purchasing policies that enhance the state enterprise and promote the use of private sector solutions where feasible. The state should ensure a competitive environment where all vendors are treated equally based on technically sound and cost effective solutions. What TAG Supports: TAG supports the procurement process for the state of Georgia by Georgia. The state efforts to utilize private sector technology solutions to increase efficiency and lower the cost of government. A fair and equitable procurement process that enables and utilizes a global free enterprise and market-based economy.