The Alabama House began its first full work day on Tuesday debating a package of BCA-supported bills intended to ignite job creation. Four of the bills passed the House, but HB 159 and HB 160, together known as the Alabama Job Creation and Retention Act, still await House action when it returns on Tuesday.

 

The Act, the cornerstone of Gov. Robert Bentley's job creation package, consists of a proposed constitutional amendment and an enabling bill that would give wide discretion to the governor to offer tax incentives for companies that locate, expand or retain their operations in Alabama. The two bills, by Rep. Barry Mask, R-Wetumpka, would provide that a percentage of state income tax withholdings from the additional employees may be retained and used by the company to offset the costs of acquiring the facility, but not more than the cost of the facility.

 

 

Bill proponents point out that the state's success in landing world-class companies like Mercedes, Honda, Hyundai and ThyssenKrupp already prove how effective tax incentives can be for bringing jobs to the state. HB 159 would allow voters to give the governor and the Alabama Development Office more flexibility to offer tax incentives to land major economic development projects and retain companies that might otherwise relocate outside Alabama, without having to call a special session of the Legislature.

 

Some lawmakers questioned the lack of specifics and the wide authority the legislation would convey upon the governor. They said the legislation lacks minimum thresholds for the amount of investment and the number of additional jobs that must be created to receive the incentives. However, Rep. Mask pointed out that the cost-benefit analysis and terms of any agreements would be made public. Mask also stressed that industrial recruiters need more flexibility to quickly match creative offers made by other states, without having to amend legislation.  HB 160, the enabling bill, sets strict parameters for how incentives can be used to ensure return on investment.

 

 

On a procedural vote to decide whether HB 159 would come up for consideration, the bill prevailed with 57 votes, but final passage is in doubt, as 63 votes are required to pass a constitutional amendment. It is imperative that members of the House hear from you before Tuesday. Let them know that public education cannot lose tax revenue from new jobs that would not exist otherwise.

 

All of the bills in the governor's job creation package are supported by the BCA. BCA President and CEO William Canary commended the House for acting quickly on four of the bills and urged lawmakers to follow suit and approve HB 159 and HB 160. "We are pleased the House is keeping the momentum going with this jobs-creation legislation," he said. "When new and existing businesses are successful and hire more people, the education trust fund grows, and we are able to provide more opportunities to our students and teachers.  BCA will continue to lead the effort in finding solutions to improve Alabama's economy." 

The other bills which passed the House Thursday:

 

HB 151, by Rep. Alan Baker, R-Brewton, changes the name of the Alabama Development Office to the Alabama Department of Commerce. This name change would help Alabama's industrial recruiters relate better to prospects, especially international prospects, who are conditioned to being recruited by state agencies called, "Departments of "Commerce." The House passed this bill 94 to 1.

 

HB 144, by Rep. Bill Roberts, R-Jasper, amends existing statutes that provide for tax incentives, to add that companies engaged in the coal mining industry be included among industries eligible to receive the incentives. HB 144 passed the House 80 to 3.

 

HB 39, by Rep. Paul Lee, R-Dothan, provides an exemption from sales and use taxes on parts and systems that are incorporated into a refurbishment of certified military, governmental or commercial transport aircraft or rotary wing aircraft. Committee testimony revealed that Alabama companies that refurbish aircraft are at a competitive disadvantage versus their counterparts in other states, where the parts used in such conversions are tax-exempt. The vote for passage was 80 to 8.

 

HB 154 by Rep. Dan Williams, R-Athens, enhances the current economic incentives available to data processing centers. Data processing centers create a large number of direct and indirect jobs and have a significant economic impact in the communities in which they locate. The bill was approved on a vote of 72 to 18.

 

House bills 151, 144, 39 and 154 now move to the Senate for consideration.

 

BCA urges its members to contact their representative and urge quick passage of HB 159 and HB 160. Contact information for House members is available to BCA members on our  website.

 

 

House Speaker Mike Hubbard

Under current law, a person who fraudulently misrepresents that he is unemployed for the purpose of receiving unemployment compensation benefits cannot be disqualified from receiving benefits. HB 72 by Rep. Paul DeMarco, R-Homewood, seeks to change that.

 

For a first offense, the bill would institute a 52-week disqualification of benefits, beginning from when the fraud is determined or until the amount that was awarded fraudulently is repaid in cash. For subsequent violations, the disqualification of benefits would be for 52 weeks until the fraud overpayment is repaid. Any federal or state funds due to the claimant could be intercepted by the Department of Industrial Relations (DIR) to repay the debt.

 

The bill also further strengthens the penalties associated with fraudulent misrepresentation. Fraudulent benefits exceeding $2,500 would constitute a Class B felony, benefits between $500-$2,500 a Class C felony, and those under $500 a Class A misdemeanor. In lieu of fines, the guilty person would pay restitution to DIR of at least the amount of benefits obtained. In committee, Rep. DeMarco told members the new penalties would allow the state to prosecute this type of fraud in the same manner as it prosecutes persons accused of theft.

 

HB 72 received a favorable report from the House State Government Committee with only one dissent. It now awaits debate from the full House.

 

BCA supports this bill.

 

For more information on this and other labor and employment legislation, contact Claire Haynes at 334-240-8726 or claireh@bcatoday.org.

 

 

 

HB 2, by Rep. Jim McClendon, R-Springville, passed on a unanimous vote by the House Public Safety and Homeland Security committee this week. If passed, persons found operating a motor vehicle on an Alabama public road, street or highway while using a wireless telecommunication device to write, send or read a text-based communication would be subject to a $25 fine upon a first violation, $50 fine upon a second violation and $75 fine upon a third violation.

 

     

The bill makes texting while driving a primary offense, and individuals would be charged with a two-point violation on their driving record if found to have violated the law. The bill now goes to the Senate.  

 

   

BCA is monitoring this legislation.  

 

For more information, contact Pam Ware at 334-240-8719 or pamw@bcatoday.org.

 

 

 

House panel passes prescription
requirement for common cold meds 

Employees may soon be forced to obtain a prescription for products containing pseudoephedrine, ephedrine, and phenylpropamine. 

 

HB 88 by Rep. Mike Millican, R-Hamilton, which would classify these drugs as Class III controlled substances, passed the House Health Committee on a voice vote with only one dissenting vote.  If passed, products containing these drugs would no longer be available over the counter.  Proponents of the bill, which is modeled after a Mississippi statute, claim the law would crack down on the manufacturing of methamphetamine.  

 

The BCA is opposed to HB 88 in its current form.  While the BCA recognizes the need to eliminate meth labs in Alabama,  requiring employees to take time off work to visit their physician to obtain a prescription for common cold and allergy medications would increase health care costs and reduce worker productivity.

 

For more information on this or any other health-related legislation, please contact Claire Haynes at claireh@bcatoday.org or call 334-240-8726. 

 

 

Tuesday, Feb. 14   30 minutes before session starts, House Rules Committee, Room 617   Wednesday, Feb. 15   9:00 a.m. House Financial Services Committee, Room 428 9:00 a.m. House Constitution, Campaigns and Elections Committee, Room 123 9:00 a.m. House Health Committee, Room 801 10:30 a.m. House Ethics and Campaign Finance Committee, Room 622 1:00 p.m. Senate Judiciary Committee, Room 325 1:30 p.m. House Judiciary Committee, Room 123 1:30 p.m. House Ways and Means General Fund Committee, Room 617 1:30 p.m. Economic Development & Tourism Committee, Room 621 3:00 p.m. House Commerce and Small Business Committee, Room 123   Thursday, Feb. 16   One hour before start of Senate session, Senate Fiscal Responsibility and Accountability, Room 609-A

 

 

 

 

Joanne Randolph of Huntsville, a member of the BCA Board of Directors, has been appointed to the Alabama State Personnel Board for a term of six years by Alabama Lt. Gov. Kay Ivey.

 

Randolph is president and CEO of the Women's Business Center of North Alabama and is the former president and CEO of BizTech, which she founded in 1997. She has more than 35 years of experience in entrepreneurship, small business incubator management, marketing and public relations, business management, property management, information technology and telecommunications consulting. 

 

From 1997 to 2002, Randolph was director of BizTech, Huntsville's business incubator. After that project, she helped launch the Women's Business Center of North Alabama and in 2005 became its first executive director. 

 

 

 

BCA's President and CEO William Canary and Senior Vice President for Intergovernmental Affairs, Advocacy and Communication Anita Archie are featured in the current issue of the Montgomery Chamber of Commerce magazine, which is now online. If you haven't seen the article yet, check it out here.

The quickest way to keep up with the latest action on legislation affecting your business is to follow BCA on Twitter and "like" the BCA page on Facebook. Updates are posted regularly by BCA staff members from the Alabama Statehouse during the session, so don't be left out!   

 

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