Senate version of charter school
bill now heads to House
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The Senate on Wednesday night passed the Education Options Act of 2012 which would authorize charter schools in Alabama and give teachers and local schools systems more flexibility from Montgomery bureaucratic red tape. SB 513, by Sen. Dick Brewbaker, R-Pike Road, passed just before 8 p.m. by a vote of 23-12. Facing stiff opposition from AEA and Democratic senators, the message at the State House all week was that opponents would filibuster the bill in an attempt to kill it. When it became clear the votes were there to pass the bill, AEA and Sen. Quinton Ross, D-Montgomery, worked out several compromises that would prevent a filibuster and allow the bill to pass. Under the compromises, charter schools would be limited to only class 3 municipalities, which are the four most populous cities in the state: Huntsville, Birmingham, Montgomery and Mobile. Another significant change to the legislation was a provision that Sen. Ross introduced, and the Senate agreed to, that would require unanimous consent of the local legislative delegation before a charter school could open in one of the four cities. Much of the debate has also centered on the idea that only non-profits could operate a charter school. Sen. Brewbaker added language to the bill that would prohibit non-profits with poor performance records from running a charter school. Previous changes to the bill limited the number of charter schools to no more than 20. That provision was kept in place during floor debate Wednesday night. BCA President and CEO William Canary remains particularly pleased with the flexibility provisions in the bill. "It's a great step toward beginning to break the cycle of status quo in education," he said. "It is historic in that less than 20 months ago this body was unable to even entertain a discussion or debate on charter schools in Alabama." The bill now goes to the House of Representatives where members are expected to make changes to the Senate version before passage. Senators voting for SB 513: Sen. Gerald Allen, R-Tuscaloosa; Sen. Scott Beason, R-Gardendale; Sen. Slade Blackwell, R-Mountain Brook; Sen. Dick Brewbaker, R-pike Road; Sen. Ben Brooks, R-Mobile; Sen. Linda Coleman, D-Birmingham; Sen. Gerald Dial, R-Lineville; Sen. Jerry Fielding, D-Sylacauga; Sen. Rusty Glover, R-Semmes; Sen. Jimmy Holley, R-Elba; Sen. Bill Holtzclaw, R-Madison; Sen. Del Marsh, R-Anniston; Sen. Arthur Orr, R-Decatur; Sen. Trip Pittman, R-Daphne; Sen. Greg Reed, R-Jasper; Sen. Paul Sanford, R-Huntsville; Sen. Clay Scofield, R-Guntersville; Sen. Harri Anne Smith, I-Slocomb; Sen. Bryan Taylor, R-Prattville; Sen. Jabo Waggoner, R-Vestavia Hills; Sen. Cam Ward, R-Alabaster; Sen. Tom Whatley, R-Auburn; Sen. Phil Williams, R-Rainbow City Senators voting against SB 513: Sen. Shad McGill, R-Scottsboro; Sen. Paul Bussman, R-Cullman; Sen. Billy Beasley, D-Clayton; Sen. Roger Bedford, D-Rogersville; Sen. Priscilla Dunn, D-Bessemer; Sen. Vivian Figures, D-Mobile; Sen. Tammy Irons, D-Florence; Sen. Marc Keahey, D-Grove Hill; Sen. Quinton Ross, D-Montgomery; Sen. Hank Sanders, D-Selma; Sen. Bobby Singleton, D-Greensboro; Sen. Rodger Smitherman, D-Birmingham; |
'Agreed-upon' bill to fix gross income problem continues to advance
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The Senate Commerce Transportation and Utilities Committee approved HB 286,by Rep. Jay Love, R-Montgomery, putting the bill in position to pass the Senate during the remaining four days of the current session. The bill is compromise legislation that resolves a longstanding conflict between a tax statute and a Department of Revenue regulation governing the tax treatment of income earned by resident owners/partners/members of Sub-S corporations, partnerships and LLCs that do business in multiple states. Voting for the bill were Sen. Gerald Allen, R-Tuscaloosa; Sen. Greg Reed, R-Jasper; and Sen. Del Marsh, R-Anniston. Abstaining was Sen. Shadrack McGill, R-Scottsboro. Readers will remember that the bill would put into statute a Department of Revenue regulation directing Alabama resident owners and partners of such pass-through entities to 1) report their respective shares of the entity's income earned worldwide, 2) provide an income tax credit for their shares of entity-level income-like taxes paid to other states, and 3) add a provision that provides a 50 percent credit for taxes paid to foreign countries. The BCA, through its affiliation with the Business Associations Tax Coalition, continues to work for passage of this legislation that is long overdue. For more information, contact Victor Vernon, 334-240-8722, or victorv@bcatoday.org. |
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Senate passes companion bill for independent tax commission
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The Senate passed SB 549, by Sen. Ben Brooks, R-Mobile, which is the companion bill to, but differs from, HB 105 by Rep. Paul DeMarco, R-Homewood. HB 105 passed the House April 5, but was not in position Thursday to pass the Senate. With four working days remaining in the current legislative session, one of the bills must pass both the House and Senate, and differences between the House and Senate versions must be resolved.
 | | Sen. Paul Sanford, right, discusses changes to the bill with committee members |
On Wednesday, the Senate Job Creation & Economic Development Committee gave a favorable report to a substitute version of HB 105 by chairman Sen. Paul Sanford, R-Huntsville. Its contents are the same as those in SB 549 which passed the Senate.
Some of the primary changes made by the Sanford substitute are:
- The governor will nominate, subject to Senate approval, successor judges to the Commission, rather than the governor selecting from names submitted by a nominating committee.
- After a final assessment has been rendered, the burden of proof falls on the Department of Revenue rather than the taxpayer.
- The substitute provides 45 days to appeal an assessment. The current time for appeal is 30 days; the House-passed version provides 60 days to appeal.
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 deal equitably 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 House.
For more information, contact Victor Vernon, 334-240-8722, or victorv@bcatoday.org.
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Blackwell proud of legislation to streamline tax filing for business
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State Sen. Slade Blackwell, R-Mountain Brook, chairman of the upper chamber's Banking and Insurance Committee, appeared before the weekly meeting of BCA's Intergovernmental Affairs Committee on Tuesday to outline several bills he has recently sponsored and share his thoughts on how the final days of the 2012 regular session might proceed.
 | | BCA Senior VP Anita Archie listens as Sen. Slade Blackwell addresses BCA Governmental Affairs Committee |
Blackwell said he and his family operate a small real estate development company in Birmingham, so his priority as a legislator has been to provide small business owners with the tools and economic environment necessary to build, grow and expand the companies they operate. Thus, his legislative package is composed primarily of economic and incentive measures rather than the social issue concerns that many lawmakers in his party often promote.
"You won't see me pushing a lot of social issues because there are enough members who are hitting those," Blackwell said. "What I want to do is focus on getting rid of red tape, streamlining government and making it easier for business owners to operate."
The lawmaker, who also sits on the Business and Labor and the Job Creation and Economic Development committees, among others, pointed to the recent passage of important legislation to streamline tax filings as an example of his efforts. Known as ONE SPOT, an acronym for Optional Network Election for Single Point Online Transactions, Blackwell's bill sets up a single, electronic system that businesses may use to file or pay state and local sales taxes, use taxes and rental and lease levies.
Currently, businesses operating in multiple counties and cities must file separate tax returns with each local entity, along with the Alabama Department of Revenue. According to the Alabama Retail Association, some retailers in the state must file 150 separate returns and write 150 separate checks to 150 taxing entities each month. Once Blackwell's bill goes into effect, mandated to occur by the start of FY 2014 , those same retailers will have the convenience of one-stop, electronic filing. He noted that the legislation passed both houses without opposition. Gov. Robert Bentley signed the bill into law this week.
Among other bills he has continued to push, but not yet passed, are those allowing businesses to carry forward their capital losses not offset by income to the next year on state taxes. Federal law allows businesses to carry forward up to $3,000 in capital losses, but Alabama demands that they be used only in the current year.
Blackwell said his New Market Tax Credit legislation is an important incentive bill that allows Alabama to mirror a tax credit being offered to businesses on the federal level, which has incentivized roughly $30 billion in private investment in businesses across the country over the past decade.
In exchange for their investments in qualified businesses and projects located in low-income and underdeveloped areas throughout Alabama, the state would offer private investors an income or premium tax credit over the next seven years.
 | | Sen. Blackwell talks to BCA about bills that will help business |
The program would make a total of $240 million available for investment with participating venture capitalists able to claim 50 percent of the amount in tax credits. For investments in urban downtown areas, the credit is zero for the first year and 8.33 percent for each of the next six years. The cap on state tax credits that can be made available is $20 million a year, or $120 million over a span of six years as tax credits are uncollected in the first year.
Louisiana was the first state to supplement the program with a state tax credit in 2005 with Mississippi following in 2007. Because of its state incentive complement, Louisiana has benefited from more than $1.5 billion in New Markets-based investments, and Mississippi has reaped almost $500 million in direct capital while Alabama has seen only $77 million flow into the state through the federal incentive program. Since passing its New Markets state tax credit in 2010, Florida has seen its investments quadruple.
Economic impact studies have shown that for every $1 in tax incentives Alabama would offer through the program, roughly $4 in investment would flow into the state.
Another measure he hopes to push strongly next year is a research and development incentive that provides tax credits of between six and 13 percent to qualified companies and financial institutions.
He predicted the remaining days of the 2012 regular session could be dominated by a debate over proposed changes and adjustments to Alabama's illegal immigration statute that was originally passed and enacted last year. The state Senate, Blackwell said, is divided into three competing Republican factions on the subject.
One group wants to pass a House-approved bill sponsored by State Rep. Micky Hammon, R- Decatur, that includes many changes long requested by the business community as a whole. Another faction supports an alternative being offered by Sen. Scott Beason, R-Gardendale, that makes minor adjustments to the immigration law but fails to address most of the issues raised by the business community. A third bloc seeks to do nothing until the Supreme Court rules on a similar Arizona law this summer and offers precedence and guidance on how to best proceed. A majority of Senate Democrats advocate for repeal.
"I think we need to move Hammon's bill because I'm more interested in having a law we can enforce, but without putting a burden on business owners and the business community," Blackwell said. "Getting those three factions on the same page is going to take a lot of moving parts. If we can't get a consensus, I'm going to have both hands raised in an effort to slow down the Senate until we get the concerns of the business folks taken care of."
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Bill to strip away rights of property owners stayed by senator but battle not over
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Once again, a bill that sought to shackle businesses and property owners with yet another regulation and another new cause of action was defeated, but it is not technically dead. SB 331 by Sen. Paul Sanford, R-Huntsville, would make it illegal for businesses and individual property owners to establish a policy prohibiting anyone from bringing a gun onto their property. The bill would also authorize new lawsuits against property owners who would deny anyone with a gun access to carry the gun onto the owner's property.
Thursday was the 26th legislative day, the last day to pass a Senate bill without unanimous consent. The senators agreed to work through all Senate bills on the special order calendar, and agreed to carry the bill over if a senator opposed a bill and a long debate ensued.
The BCA sent an electronic copy of its opposition to SB 331 to each senator when the bill came up for debate Thursday evening. In the statement, BCA President and CEO William Canary said, "This bill erodes the constitutional property rights of individuals and businesses. Alabama businesses are already struggling with burdensome regulations that impact productivity and increase costs. The inescapable result of this legislation would be to increase employer costs, including insurance costs, which would result in the loss of jobs. BCA has consistently opposed this type of legislation for nearly a decade."
Sen. Slade Blackwell, R-Mountain Brook, was the lone senator to support property owners and immediately began a filibuster on SB 331 to protect private companies in Alabama from being further burdened by the bill's passage.
When it appeared Sen. Blackwell would not waiver from his filibuster, Senate President Pro Tem Del Marsh, R-Anniston, moved for adjournment of the Senate. The motion failed; however, shortly thereafter, Sen. Sanford asked for SB 331 to be carried over at the call of the chair, and the Senate subsequently adjourned.
SB 331 may come before the Senate on Tuesday if it has any chance of passing during the remaining days of this session. BCA opposes this legislation.
For more information, contact Anita Archie, 334-240-8775, or anitaa@bcatoday.org.
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In other news
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Minimum school age bill on way to governor
The House passed SB 28 by Senator Priscillla Dunn, D-Bessemer, which would change the mandatory minimum age required for children to be enrolled in school from seven to six years of age. However, the bill allows a parent, legal custodian or guardian of a child who is six to opt out of enrolling their child by notifying the local board of education in writing that the child will not be enrolled in school until the child turns seven. The bill now goes to the governor for his signature. BCA supports this bill.
Bill would transfer Forever Wild
Trust funds if amendment fails
A public hearing was held this week on a proposed constitutional amendment, SB 516, by Sen. Shadrack McGill, R-Scottsboro. If approved by the voters in November and the Forever Wild Amendment fails to be ratified, the legislation would authorize the transfer of monies from the Forever Wild Land Trust to the Alabama Department of Child Abuse & Neglect Prevention and to the Education Trust Fund for vocational and technical education in high schools. The transfer of funds could also be authorized in the event that the Forever Wild amendment is approved, but receives less "yes" votes than the McGill amendment.
BCA's 2012 Legislative Agenda supports reauthorization of the Forever Wild Program. BCA opposes SB 516. House OKs expansion of
benefits for autism disorder The House on Thursday passed SB 283 by Sen. Cam Ward, R-Alabaster, which expands coverage of certain health benefits for children up to the age of nine with autism spectrum disorder. The bill, which was agreed to by health benefit plan providers and the bill sponsor, would increase the number of occupational, physical or speech therapy visits for children under the age of nine and increase the number of office visits to 100 per year. Health benefit plans "offer" coverage to employers with 50 or more employees for $35,000 per year for behavioral therapy benefits for children diagnosed with autism disorder. Employers will have the option to choose this coverage. This bill will not impact small employers. BCA's Vernon confirmed
as UWA trustee The Senate has confirmed the nomination by Gov. Robert Bentley of Victor Vernon, BCA's director of legislative policy, to the board of trustees of the University of West Alabama.  | | Victor Vernon |
Vernon represents the interests of the Alabama business community before the Legislature and state and local governmental agencies on tax, public education and workforce training issues. "We are very proud and pleased that Victor's abilities and expertise have been recognized by the governor and confirmed by the Senate," said BCA President and CEO William Canary. "We are confident he will be a valuable asset to the University of West Alabama's board of trustees." Before joining the BCA in 1998, Vernon was the Senate fiscal officer for the Alabama Legislative Fiscal Office for 18 years. He directed preparation of the Senate's versions of state education and general government budget bills and directed the work of staff analysts on all tax, budget and other fiscal issues pending before the Senate. He holds a master of arts in finance from the University of Alabama and a bachelor's in economics from the University of Alabama in Birmingham. Located in Livingston, the University of West Alabama has more than 5,000 students and offers more than 60 undergraduate programs and 10 graduate programs. Walter Energy mine project
to bring 500 new jobs  | Canary, Scheller, Secretary of Commerce Greg Canfield, Rep. Bill Roberts and Sen. Greg Reed.
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BCA president and CEO William J. Canary joined BCA board member Walter Scheller, CEO of Walter Energy, at the announcement that his company will bring 500 new jobs to Alabama. The company will open a metallurgical coal mine in Tuscaloosa County, and the project will provide jobs in Fayette and Walker counties as well as at the Port of Mobile.
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Committee meetings scheduled
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Tuesday, May 8
10:00 a.m. House Ways & Means Room 617
11:00 a.m. House Public Safety & Homeland Security Room 428
11:00 a.m. House County & Municipal Government Room 622
11:30 a.m. House Health (Public Hearing) Room 418
12:30 p.m. House Rules Room 617
12:30 p.m. House Ways & Means General Fund Room 617
12:30 p.m. House Insurance Room 403-B
Wednesday, May 9
9:00 a.m. House Transportation Utilities & Infrastructure Room 410
9:00 a.m. Senate Finance & Taxation General Fund Room 727 10:30 a.m. Senate Finance & Taxation Education Room 727
1:30 p.m. House Judiciary Room 123
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| BCA Events | |
The BCA Governmental Affairs Committee will meet at 8:30 a.m. on Tuesday May 8, in the first floor auditorium of the Business Center of Alabama, 2 N. Jackson St., Montgomery. Guest speaker will be David Perry, chief of staff for Gov. Robert Bentley.
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| Session Events |  | The House will convene at 1 p.m. and the Senate at 2 p.m. on Tuesday, May 8, the 27th legislative day.
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BILLS BCA IS WATCHING Filed Tuesday:
SB 580 and HB 781 To amend Sections 29-9-2 and 29-9-3 of the Code of Alabama 1975, relating to the fiscal year
appropriation cap for the Education Trust Fund rolling reserve; to provide for an alternative schedule of
payments to the Education Trust Fund Rainy Day Account, by allowing for an in lieu of payment to be
made to the State General Fund; to provide for the restoration to the Education Trust Fund of an amount up
to and including the appropriation level as appropriated under Act 2007-361, 2007 Regular Session; and to
add Section 29-9-4.1 to the Code of Alabama 1975, relating to the Education Trust Fund and the State
General Fund, to provide that revenues in excess of the fiscal year appropriation cap for the Education Trust Fund rolling reserve may be transferred to the State General Fund and to provide a source for
repayment to the Education Trust Fund.
Filed in the last 24 hours:
SB 585 To provide for the reapportionment and redistricting of the state into districts for the purpose of
electing the members of the Alabama Senate at the General Election in 2014 and 2018, until the release of
the next federal census; to provide venue in Montgomery County Circuit Court for any legal action,
including any action pending in any court on the effective date of this act, challenging the validity of all or
any portion of any Senate reapportionment or redistricting plan adopted pursuant to this act; and to repeal
conflicting law.
HB 784 This bill would provide that the Third Party Prescription Program Act would not apply to the Public Education Employees' Health Insurance Plan.
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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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