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Senate panel approves
changes to immigration law
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 | | Rep. Mickey Hammon explains bill amendments as BCA President and CEO William Canary, Senior VP and Legal Advisor Anita Archie and Legislative Advocacy and Intergovernmental Affairs Director Claire Haynes listen |
The Senate Judiciary Committee approved the latest version of HB 658 by Rep. Mickey Hammon, R-Decatur, which seeks to revise HB 56, the state's immigration law that was passed last year. The bill will likely go to the Senate floor next week for a vote.
The committee approved the legislation by a 7-3 vote, following testimony from opponents and debate among committee members. The panel approved amendments that would modify the "reasonable suspicion" provision in the bill, added language that would prohibit school officials from collecting from schoolchildren information on the status of their parents, and provide that the bill would go into effect 60 days after being signed.
 | | Senate Pro Tem Del Marsh expects vote next week |
Other changes would remove language to ban undocumented aliens from attending public colleges, and a section that prohibited state and local agencies from doing business with undocumented aliens would limit that ban to business licenses and motor vehicle transactions.
Published and broadcast reports quoted Senate President Pro Tem Del Marsh, R-Anniston, as saying he expects a vote on Tuesday.
Voting YES on the bill were Sen. Phil Williams, R-Rainbow City; Sen. Bryan Taylor, R-Prattville; Sen. Arthur Orr, R-Decatur; Sen. Tom Whatley, R-Auburn; Sen. Cam Ward, R-Alabaster; Sen. Jerry Fielding, D-Sylacauga; Sen. Del Marsh, R-Anniston.
Voting NO on the bill were Sen. Marc Keahey, D-Grove Hill; Sen. Rodger Smitherman, D-Birmingham; and Sen. Linda Coleman, D-Birmingham.
See Birmingham News story.
See Montgomery Advertiser story.
BCA's press release on the proposed changes.
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Redrawn lines for districts to be
subject of likely special session
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State Rep. Jim McClendon, R-Springville, House chairman of the Permanent Legislative Committee on Reapportionment, addressed the BCA Governmental Affairs Committee on Tuesday and outlined plans to approve redrawn House and Senate district lines before the end of the 2012 regular legislative session.
 | | BCA Senior VP Anita Archie listens as Rep. McClendon addresses committee |
McClendon said his committee, which is chaired in the Senate by Sen. Gerald Dial, R-Lineville, is tasked with drawing districts that accurately reflect the population of Alabama as captured by the most recent census data, which he termed "a snapshot in time." In this case, the panel will use the results of the 2010 census.
"There is no need for deception in the process, no need to push plans that are borderline fair, and no need to target any individuals, or any regions," McClendon said. "All that needs to be done is to create fair districts."
He noted that redistricting is not a "haphazard" process in Alabama, especially given the extreme spotlight on the state as a result of its past history. In addition to the Voting Rights Act of 1965, McClendon said his committee must take into account various court cases, the "one man, one vote" concept and the examination of the newly drawn maps by the U.S. Justice Department Civil Rights Division, a process known commonly as "Section 5 review."
Calling it the "most politically charged process the Legislature encounters," McClendon said the recurring, decade-long results of redistricting can often lead to bitterness and ill will among legislators.
"I still hear tales from the redistricting process conducted 10 years ago, and it is still the lingering hard feelings that survive the times," McClendon said. "Redistricting animosity can, and does, spill over into subsequent legislative sessions."
In order to prevent the redistricting battle from disrupting the current legislative session, McClendon said the issue will be tackled during an extraordinary session expected to be held May 14-18. The five-day special session is also scheduled to take place between the 29th and 30th legislative days of the on-going regular session, just prior to its sine die adjournment.
 | | Rep. Jim McClendon discusses likely special session to approve redrawn legislative districts |
"Sen. Dial and I have been working with members for many months, both majority and minority members," McClendon said. "It is my hope that the special session garners no headlines, and my expectation is that for the first time in a century, the composition of the Legislature will be an accurate reflection of Alabama."
The three-term lawmaker said the Reapportionment Committee is composed of 11 House members and 11 Senate members with seven from each body representing each of Alabama's seven congressional districts and another four from both houses serving at-large. The committee operates under a set of self-imposed guidelines, which, for example, includes making efforts to prevent two incumbents from opposing each other and, when possible, attempting to make new districts somewhat resemble their old versions.
Splitting cities and counties among several legislative districts is also undesirable by committee members, McClendon said, but population clusters and disbursement often make it unavoidable. Target numbers require roughly 45,000 citizens to reside in each of Alabama's 105 House districts and about 135,000 to reside within each of the 35 State Senate districts.
McClendon said his committee engaged in a transparent redistricting process that "set new standards for openness."
Noting that the Democratic majority tasked staff members with holding 18 public hearings across the state when it last handled redistricting a decade ago, McClendon said his panel invited public input during visits to 21 cities, and both committee chairmen participated in each session. A court reporter recorded testimony at the meetings, and transcripts of the discussions are available for public review online.
Though new maps for Congressional and State Board of Education districts were successfully redrawn, approved by the Legislature and scrutinized by the Justice Department last year with no lawsuits apparently forthcoming, McClendon said he is prepared for the reapportioned House and Senate lines to be challenged in court, no matter how fairly they are drawn.
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House passes 'agreed-upon' bill to fix gross income problem
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The Alabama House debated for three hours Tuesday before passing HB 286, by Rep. Jay Love, R-Montgomery, on a vote of 54-32, sending the bill to the Senate. This bill would fix, once and for all, the Department of Revenue's problems with the "Gross Income" issue. During the floor debate, several members asked legitimate questions in hopes of gaining an understanding of the complex issue, but the bulk of the time was consumed by rhetoric and appeals by opponents to defeat the legislation.
For years, the department has been caught in the middle of a conflict between the state income tax statutes and the department's own regulation. Readers will remember that the statute directed Alabama resident owners/partners of "pass-through" entities that do business inside and outside of Alabama to report their shares of the entity's income from all sources. A departmental regulation, however, instructed taxpayers to report their shares of the entity's income earned in Alabama. A taxpayer who followed the regulation and applied his/her full federal income tax deduction (representing the entity's worldwide operations) could then reduce or eliminate all of his/her state income tax liability.
In the last regular session, the BCA, the Business Association Tax Coalition (BATC) and the Bentley administration negotiated compromise legislation which passed the House overwhelmingly, but died, along with other bills, on the last night of the session when a filibuster blocked it from coming before the Senate. Following the session, all parties that had agreed to the compromise bill agreed 1) to allow the department's latest version of the regulation concerning "gross income" to take effect and 2) that all would work to enact the bill when the Legislature reconvened this year.
The compromise bill would require the taxpayer to recognize his/her share of income from all sources worldwide, and the taxpayer would receive credits for 100 percent of entity-level, income-like taxes paid to other states and receive a 50 percent credit for income taxes paid to foreign countries to avoid double taxation. Opponents advocate defeating the bill and prefer to have taxpayers rely on the departmental regulation rather than lawfully enacted legislation. Their reason for preferring the regulation is to deny the 50 percent foreign tax credit and thereby collect more tax revenue.
For years, the BCA has worked in good faith with the key parties to resolve this issue. Those efforts last year led to a mutually equitable solution outlined in HB 286, and the BCA remains committed to fulfilling its promises to enact the compromise legislation.
The BCA supports this legislation. For more information, contact Victor Vernon, 334-240-8722 or victorv@bcatoday.org.
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Senate panel OKs companion bill for independent tax appeals commission
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The Senate Judiciary Committee voted to favorably report SB 549, by Sen. Ben Brooks, R-Mobile, with very little discussion. This Senate version of the bill is a companion to HB 105, by Rep. Paul DeMarco, R-Homewood. HB 105 has not been placed on the agenda of the Senate Job Creation & Economic Development Committee, where it was assigned on April 10. Similar versions of the bill have been introduced in several previous legislative sessions, and the concept of an independent tax appeals tribunal is the model used by more than half of the states, with Georgia being the latest to adopt. Other sections of the bill that pertain to the Alabama Taxpayers Bill of Rights update and conform state law to the procedures and provisions used by the federal government to equitably deal with taxpayers. Under the auspices of the Business Associations Tax Coalition (BATC), the BCA is among some 27 business and trade associations that have endorsed this bill. SB 549 now moves on to be considered by the full Senate. BCA supports this legislation. For more information, contact Victor Vernon, 334-240-8722, or victorv@bcatoday.org. |
House passes bill
to extend capital credits
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The Alabama House passed HB 140, by Rep. Mickey Hammon, R-Decatur, which provides that businesses that qualify for the state's income tax capital credits may carry forward the credits from one year up to four additional years, depending on the amount of the capital investment, but not to exceed the original total of 20 years. An Alabama Department of Revenue report on the actual use of capital credits shows that significant portions of the credits are not taken because the companies are not profitable in their early years of operation.
BCA supports this legislation which now moves to the Alabama Senate.
For more information, contact Victor Vernon, 334-240-8722, or victorv@bcatoday.org.
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Senate committee approves
unitary combined reporting bill
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The Senate Finance & Taxation-Education Committee, on a vote of 8-3, gave a favorable report to SB 333, by Sen. Marc Keahey, D-Grove Hill. In addition to mandating combined reporting, which is estimated to raise $30 million annually, the bill reduces the domestic production activities deduction, to raise an estimated $20 million annually, and it further reduces the deduction for bonus depreciation by 50 percent, to raise an estimated $13 million annually.
The BCA continues to oppose any legislation mandating unitary combined reporting.
For more information, contact Victor Vernon, 334-240-8722, or victorv@bcatoday.org.
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| 'Single point of filing' bill
awaits governor's signature
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Businesses that now pay state-local sales/ use and rental/lease taxes to multiple jurisdictions will soon have a central site to electronically file and pay their tax obligations. Alabama's patchwork of local sales/use tax rates along with various forms of local tax administration (state, self-administered local and third party) have all combined to make tax compliance a costly ordeal for businesses.
The House and Senate agreed to the conference committee report on SB 459, by Sen. Slade Blackwell, R-Mountain Brook, which creates the "One-Spot" system under the Alabama Department of Revenue for filing and paying sales/use and rental/lease taxes to all Alabama governmental bodies. The bill sets up an eight-member Advisory Commission, composed of three members from county government, three members from municipal government, a representative from the BCA and a representative from the Alabama Retail Association, to advise the Commissioner of Revenue on the development and operation of the system. The bill further requires local governments to provide tax rate information and to provide updates to that information as changes occur.
The BCA supports this legislation.
For more information, contact Victor Vernon, 334-240-8722 or victorv@bcatoday.org.
House approves changes
to Unemployment Compensation Law
The House has passed HB 285, by Rep. Jack Williams, R-Birmingham, that would establish a one-week waiting period during the first compensable week of benefits for individuals seeking unemployment compensation benefits. The bill now heads to the Senate.
If enacted, the bill would amend current law which applies a one-week waiting period after the 13th compensable week of paid unemployment benefits. The new waiting period would save the Unemployment Compensation Trust Fund $14.5 million in the first year of implementation, according to the Alabama Department of Industrial Relations.
For more information on this or other labor and employment-related legislation contact Claire Haynes at 334-240-8726 or claireh@bcatoday.org.
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Unemployment Compensation Fraud changes get Senate approval
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Changes to the state's unemployment compensation fraud law are one step closer to becoming law. 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-Mountain Brook, changes that.
The Senate-amended version would institute a 104-week disqualification of benefits if a person is found to be fraudulently claiming he is unemployed simply to receive unemployment compensation benefits and until the amount fraudulently awarded is repaid in cash. Any federal or state funds due to the person could be intercepted by the Department of Industrial Relations (DIR) to repay the debt.
HB 72 unanimously passed the full Senate, but it must go back to the House to concur with the changes made. If the House approves the changes, the bill will then go to the governor.
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.
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Limited direct access for physical therapists goes to the governor
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On a unanimous vote, the Senate granted final passage to a substitute version of HB 163 by Rep. Ed Henry, R-Hartselle, that would allow physical therapists in specific situations to evaluate and treat patients without a referral from a health care provider. The bill further allows physician assistants, nurse practitioners and chiropractors to refer patients to physical therapists.
HB 163 allows a physical therapist to perform an initial evaluation to determine the need for physical therapy and perform therapy without a referral in five limited areas:
- To a child with a diagnosed developmental disability pursuant to the plan of care for the child,
- To a home health care patient pursuant to the plan of care for the patient,
- To a nursing home patient pursuant to the plan of care for the patient,
- Related to conditioning or to providing education or activities in a wellness setting for the purpose of injury prevention, reduction of stress or promotion of fitness, and
- To an individual who has received physical therapy for a previously diagnosed condition within 90 days of the diagnosis. The physical therapy would be limited to 15 days before the patient must return to the health care provider.
HB 163 now awaits the governor's signature.
For more information contact Claire Haynes at 334-240-8726 or claireh@bcatoday.org.
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House passes bill establishing an Alabama Health Insurance Exchange
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By a vote of 92-0 the House of Representatives granted a favorable report to a substitute version of HB 245 by Rep. Greg Wren, R-Montgomery, that would create and set operating guidelines for the Alabama Health Insurance Marketplace as mandated by the Patient Protection and Affordable Care Act of 2010. The bill now goes to the Senate.
Commonly referred to as "the exchange," it would provide a centralized location where individuals may obtain comparative information on available health insurance plans and would facilitate the purchase and sale of those plans. The bill also creates a Small Employer Insurance Marketplace where small employers with 50 or fewer full and part-time employees could access health insurance coverage for their employees beginning in 2014. In 2016, employers with 100 or fewer employees would be eligible to offer coverage to their employees via the small employer exchange.
HB 245 further mandates the Alabama exchange be self-sustainable by 2015. Funding to operate the estimated $30 million to $50 million per year exchange would come from fees or assessments to policies sold to individuals and from employers who purchase coverage through the exchange.
HB 245 also includes language that if the PPACA is upheld, lawmakers must enact legislation by December of this year to establish a framework for an Alabama-led and managed health insurance exchange. If the Legislature fails to act, the exchange will be managed by the federal government. The U.S. Supreme Court is expected to rule in early summer on the constitutionality of the act.
The 2012 BCA Legislative Agenda states that BCA will "ensure legislation that creates and sets operating guidelines for an Alabama Healthcare Insurance Exchange will: focus on providing small businesses and individuals an option for purchasing healthcare insurance; base operation on free market principles; encourage competition within the market; provide transparency to consumers; include business representation within the administrative oversight structure; avoid duplication of current regulatory authority; ensure the stability and reliability of the state's healthcare insurance market."
For more information contact Claire Haynes at 334-240-8726 or claireh@bcatoday.org.
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In other news
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Bill would require oversight and fees
for PACs and candidates
SB 551 by Sen. Bryan Taylor, R-Prattville received a favorable report from the Senate Constitution, Campaign Finance, Ethics and Elections Committee on Thursday.
The bill would require the Alabama Ethics Commission to create a division to monitor registered candidates and political action committees (PACs) in accordance with the Fair Campaign Practices Act. Annual registration fees would be established and required by the Ethics Commission, and the following penalties would be instituted for failing to timely file reports: $500 for the first offense; $1,000 for the second offense; and the third offense will be referred to the Attorney General for further action. The fees and fines collected would go to the Ethics Commission to cover the operational cost of the new division.
The bill would also require that each PAC and campaign committee designate a registered agent to be legally responsible for the actions of the committee. Candidates and the registered agents would be responsible for any fines and criminal actions; however, campaign funds would be allowed to pay fines. SB 551 now goes to the full Senate for consideration.
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House OKs bill creating Small
Business Financing Authority
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The House on Thursday approved HB 600 by Rep. Barry Moore, R-Enterprise, that would set up an independent entity to help companies with a variety of credit needs. The Alabama Small Business Financing Act, operating under the Alabama Department of Economic and Community Affairs (ADECA), would allow the state to strengthen and streamline ADECA's existing business loan and grant programs.
Establishing a small business financing authority was a key recommendation of the Speaker's Commission on Job Creation. "Job creation has been and continues to be our top priority this session," said Speaker Mike Hubbard. "One of the top inhibitors to small business growth is access to capital. Assisting viable companies attain loans is a real world way to promote job growth."
In August, Alabama was awarded a $31.3 million grant through the U.S. Treasury's State Small Business Credit Initiative to promote small business lending through three programs: the Alabama Capital Access Program, the Alabama Loan Guaranty Program and the Alabama Loan Participation PRogram, all administered within ADECA. The Alabama Small Business Financing Act would codify the current SSBCI programs into law under the Alabama Small Business Financing Authority. |
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Committee meetings scheduled
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Tuesday, May 1
9:30 a.m. Senate Constitution & Elections Room 727
12:30 p.m. House Insurance (Public Hearing Only) Room 410
12:30 p.m. House Rules Committee Room 617
12:45 p.m. House Agriculture & Forestry Room 418
Wednesday, May 2
8:30 a.m. Senate Confirmations Room 304
9:00 a.m. House Public Safety & Homeland Security Room 418
9:00 a.m. House Constitution Campaigns & Elections Room 123
9:10 a.m. House Transportation Utilities & Infrastructure Room 410
9:30 a.m. Senate Finance & Taxation Education Room 727
TBA Senate Agriculture Conservation & Forestry Room 727
10:30 a.m. House Military & Veterans Affairs Room 418
10:30 a.m. House Boards, Agencies & Commissions Room 428 1:30 p.m. House Technology & Research Room 410
Thursday, May 3
9:30 a.m. Senate Fiscal Responsibility & Accountability Room 727
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Stay connected on Twitter, Facebook
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Are you following BCA on Twitter? Have you "liked" the BCA on Facebook? If so, you're among the first to learn what's going on at the Alabama Legislature that affects your business.
Updates are posted regularly by BCA staff members, so don't be left out!
BCA's Twitter page
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| BCA Events | |
The BCA Governmental Affairs Committee will meet at 8:30 a.m. on Tuesday May 1, in the first floor auditorium of the Business Center of Alabama, 2 N. Jackson St., Montgomery. Guest speaker will be Sen. Slade Blackwell, R-Mountain Brook.
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| Session Events |  | The Senate will convene at 10 a.m. and the House at 1 p.m. on Tuesday, May 1, the 24th legislative day.
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BILLS BCA IS WATCHING Filed Tuesday: SB 551 Elections, regulating political action committees which receive funds for voting advocacy
SB 550
Local boards of education, written reduction in force policies, consideration of certain credentials in making staff decisions, temporary interim reduction-in-force policy provided, Sec. 16-1-33 am'd
SB 554
Nurses, certified registered nurse practitioners and certified nurse midwives, authorized to prescribe certain controlled substances, Secs. 20-2-214, 20-2-217 am'd; Secs. 20-2-250 to 20-2-259, inclusive, added
SB 557
Attorneys, certain contracts for legal services voidable, recovery of attorneys fees and expenses, Sec. 34-3-25 am'd
HB 750
Consumer and Consumer Protection, data collectors notify upon breach of security regarding personal information required, deceptive trade practices Filed in the last 24 hours HB 754 Nurses, certified registered nurse practitioners and certified nurse midwives, authorized to prescribe certain controlled substances, Secs. 20-2-214, 20-2-217 am'd; Secs. 20-2-250 to 20-2-259, inclusive, added
SB 569
Corporations, definition, authorization and regulation of a benefit corporation
SB 571
Third Party Prescription Program Act, not applicable to Public Education Employees' Health Insurance Plan, Sec. 34-23-116 am'd.
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YOUR BCA ADVOCACY TEAM
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Anita Archie, Senior Vice President and Legal Advisor,
Intergovernmental Affairs, Advocacy and Communications
anitaa@bcatoday.org
334-240-8775
William J. Canary, President and CEO
billyc@bcatoday.org
334-240-8714
Mark Colson, Chief of Staff and
Executive Director, ProgressPAC
mcolson@bcatoday.org
334-240-8724
Claire Haynes, Director
Legislative Advocacy and Intergovernmental Affairs
claireh@bcatoday.org
334-240-8726
Nancy Wall Hewston, Director,
Federal Governmental Affairs and Strategic Communications
nancyh@bcatoday.org
334-240-8725
Nathan Lindsay, Director
Political Affairs and Regional Operations
nathanl@bcatoday.org
334-240-8766
Victor Vernon, Director
Legislative Policy and Intergovernmental Affairs
victorv@bcatoday.org
334-240-8722
Lenore Reese Vickrey, Director
Strategic Affairs and Advocacy Communications
lenorev@bcatoday.org
334-240-8740
Pam Ware, Manager
Intergovernmental Affairs, Advocacy and Communications
pamw@bcatoday.org
334-240-8719
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About Us
| The Business Council of Alabama is Alabama's foremost association of business and industry and the state's No. 1 business advocate. BCA represents more than 750,000 working Alabamians through its member companies, and through its partnership with the Chamber of Commerce Association of Alabama representing 124 local chambers of commerce, more than one million Alabamians.
To ensure the delivery of this and other BCA emails to your inbox, add alert@bcatoday.org to your email address book or safe list.
Certain links within this publication are viewable only by BCA members and require an identification number and password for access. Call 1-800-665-9647 or email Kimberly Langley at kimberly@bcatoday.org if you need help with access.
Capital Briefing, a digest of legislative news for BCA members, is published each Friday during the regular session of the Alabama Legislature. Send us your feedback at info@bcatoday.org
Capital Briefing is a copyrighted publication. No part of it can be reproduced or transmitted in any form to someone who is not a member of the Business Council of Alabama without the expressed permission of the BCA. For reprint permission, email lenorev@bcatoday.org.
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