GRA State of the Session: March 16, 2026
March 16, 2026
NOTEWORTHY.
- No Tax on Tips – The Sequel. You read here last week that bills which didn’t make it through crossover were still worth watching. Right on cue, the Senate has decided that the No Tax on Tips and No Tax on Overtime language should live to see another day. These provisions passed the Senate on Friday as part of a larger tax package. However, this is not the end of the road, consider this part 2 of the story. The House and Senate will still need to negotiate a final tax package.
- Penny Across the Hall. The House-passed version of HB 1112—which would require merchants to round all cash transactions down to the nearest nickel instead of rounding to the closest nickel—has now moved across the hall to the Senate. The GRA and other business groups are working to make changes to the bill to ease the burden on small businesses.
- Restaurants Under the Gold Dome. We celebrated State Restaurant Day at the Capitol last Tuesday with a morning of restaurant-focused events under the Gold Dome. The day started with a presentation to the House Small Business Development Committee on the state of the industry, followed by the Georgia Grown Executive Chef presentation alongside Governor Brian Kemp and Agriculture Commissioner Tyler Harper. We wrapped up with visits from several legislators, including Senator Sonya Halpern and House Agriculture Chairman Robert Dickey. Thank you to all who joined us in support of our industry.
BILLS WE'RE TRACKING — AFTER CROSSOVER DAY.
Would require restaurants to disclose whether shrimp served is imported.
Why it matters: Adds new menu and disclosure requirements for operators, impacting costs,
sourcing conversations, and compliance.
WHAT CROSSED OVER — NOW WITH THE OTHER CHAMBER
HB 163
Would require special menu labeling for plant-based alternatives and lab-grown meat.
Why it matters: Creates additional labeling obligations and could complicate menu design and
updates.
HB 986
Would update operating rules for personal delivery devices (such as autonomous delivery robots), including speed limits, right-of-way requirements, and audible warning signals when approaching pedestrians.
Why it matters: Clarifies how delivery devices can operate on sidewalks, bike lanes, and roadways, helping restaurants that use or may consider using automated delivery avoid safety and compliance issues.
Would provide guidance for businesses on rounding cash transactions to the nearest five cents.
Why it matters: Offers clarity for operators as cash usage declines and coin circulation remains
inconsistent.
HB 1470
Would allow businesses to recover damages and attorney’s fees when ADA website accessibility lawsuits are unsuccessful, dismissed, or lack standing, including at least $10,000 in damages and potential treble damages in certain cases.
Why it matters: Aims to deter frivolous ADA website lawsuits and reduce litigation costs for businesses.
WHAT DIDN'T CROSS OVER — NOT ELIGIBLE FOR PASSAGE
HB 201 / SB 415
Would ban the manufacturing and sale of lab-grown meat in Georgia.
Why it matters: Limits future menu innovation and raises broader questions about how emerging
food products are regulated.
Would require restaurants to maintain three doses of an opioid antagonist on site at all times.
Why it matters: Imposes new health, training, and inventory requirements on restaurants that are
not healthcare providers.
Would designate Lemon Pepper as the official wing flavor of Georgia.
Why it matters: Because some things bring people together — and in Georgia, lemon pepper
wings are one of them.
Would prohibit restaurants and other businesses from selling foods containing certain food dyes.
Why it matters: Could affect ingredients, suppliers, and recipes across a wide range of menu
items.
HB 1110
Would create a state income tax credit for small businesses (fewer than 50 employees) that contribute at least $200 per month to an individual coverage health reimbursement arrangement (ICHRA) for Georgia-based employees.
Why it matters: Provides a new incentive for small employers to offer defined-contribution style health benefits, potentially helping restaurants expand health coverage options while offsetting some of the cost through a capped state tax credit.
HB 1157
Would repeal Georgia’s current preemption law that prevents local governments from setting their own wage, employment benefit, or employee scheduling mandates, allowing cities and counties to adopt local requirements beyond state or federal law.
Why it matters: Could create a patchwork of local wage, benefit, and scheduling rules across Georgia, increasing compliance complexity and operational challenges for restaurant operators operating in multiple jurisdictions.
Would enact the “Pollution Prevention and Producer Responsibility Act of 2026,” creating a statewide extended producer responsibility (EPR) program for packaging, paper products, and beverage containers, including a 10¢ beverage container deposit system and new producer-funded recycling and reuse requirements
Why it matters: Represents a major shift in Georgia’s waste policy—moving costs onto producers, establishing a bottle deposit system, and creating new fees and operational requirements that will ripple through manufacturers, distributors, retailers, and ultimately consumers.
HB 1331
Would amend Georgia’s Minimum Wage Law by repealing the tip credit.
HB 1493 would expand collective bargaining rights for certain workers, limit at-will employment by requiring “just cause” for termination, and create several industry worker standards boards—including one for retail and food service—to recommend minimum standards for wages, hours, and workplace safety. The bill also requires large retail, food service, and hospitality employers to provide employee work schedules at least 14 days in advance and provide additional “predictability pay” when shifts are changed on short notice.
Why it matters: Could significantly change employment rules, scheduling requirements, and labor standards for restaurants and hospitality businesses.
Why it matters: Removes Georgia’s recognition of the tip credit, a long-standing policy that allows restaurants to count tips toward meeting minimum wage requirements.
HB 1370
Would exclude up to $2,500 in annual overtime pay and up to $5,000 in cash tips from Georgia state income tax beginning in tax year 2027.Why it matters: Creates new employer reporting requirements for overtime and cash tips (monthly or quarterly) and reduces state taxable income for eligible employees.
HB 1400 - Georgia Artist-Promoter Fair Practices Act
Would establish the “Georgia Artist-Promoter Fair Practices Act,” requiring written disclosures of performance classifications and any performance-related fees charged to artists, along with itemized receipts and refund rights.
Why it matters: Sets new transparency standards for promoters and venues hosting live performances, potentially affecting how restaurants structure agreements and fee arrangements with musicians.
HB 1416
Would exclude all employee tips from Georgia state income tax beginning in tax year 2026 and require employers to report total tips received by employees to the Department of Revenue
Why it matters: Removes state income tax on tips while creating new employer reporting requirements and compliance obligations.
HB 1493 - Georgia Worker Empowerment Act
SB 376 – Georgia Restaurant Franchise Relations Act
Addresses franchise-related protections and requirements.
Why it matters: Could significantly affect franchised restaurant operations, contracts, and long-
term business planning.
SB 456
Would create limited exceptions to Georgia’s three-tier system, allowing small brewers to expand direct-to-consumer sales and self-distribute a capped amount of product to retail establishments within the same county.
Why it matters: Adjusts long-standing alcohol distribution rules by expanding certain privileges for small brewers.
SB 512 – Consumer Inflation Reduction and Tax Fairness Act
Would prohibit payment card networks from charging interchange fees on the sales tax portion of a credit card transaction.
Why it matters: Reduces the interchange fees restaurants pay when collecting sales tax, keeping more dollars in your business instead of paying fees on money you never keep.
SB 583
Would require businesses to clearly and conspicuously display the total price of goods or services, including all mandatory fees, surcharges, and automatic gratuities, when advertising or presenting prices to consumers
Why it matters: Impacts how restaurants disclose pricing, service charges, and automatic gratuities, with violations enforced under the Fair Business Practices Act.