HBAA Legislative Alert
Alabama Legislature Overrides Bentley's Veto
The House and Senate voted to override Governor Bentley's veto of the General Fund Budget on Tuesday. The Governor's veto followed the Legislature's passage of a budget that failed to include $85 million in additional funding for Medicaid. With legislators showing no interest in raising new revenues during this session, the Governor has threatened deep cuts to Medicaid spending.

Although the Governor has threatened to call the legislature back into session, he said this week that he would direct Medicaid Commissioner Stephanie Azar to come up with programs within the agency that could be cut or scaled back. Among the potential cuts are prescription drug coverage, outpatient dialysis, home health management, and other programs. Potential savings from the cuts being considered could save up to $90 million.

Governor Bentley has stated that he would review the programs and potential cuts before making a decision to call the Legislature back into session.
Sprinkler Bill Gets Carried Over in Senate Committee
Senator Tripp Pittman (R-Daphne) expressed concerns of increased regulation this week when opposing HB 241 in the Senate's Governmental Affairs Committee. Despite industry agreeing to the measure that would permit plumbers to install residential fire sprinklers without having to go through the NICET commercial training and certification process, the committee voted to carry the bill over. It is uncertain that the bill will come back before the committee this session.
Bill Restricting Criminal Background Checks for Employment Amended
As introduced, Senate Bill 327 would restrict an employer from inquiring into a potential employee's criminal history until he has been otherwise qualified for employment. At that point, an employer can ask and determine whether or not to hire the worker based on his response. This is a serious issue as it sets up the employer to potential litigation by refusing to hire an otherwise qualified worker based solely on his arrest record.

An amendment this week in committee removed private employers from the provisions of the bill, but left in place any public employer and any licensing agency. Although, HBAA is pleased to have private employers exempted, leaving in licensing agencies creates a situation for litigation from both the applicant and, potentially, the person hiring the licensee.

An example would be the issuance of a home builder license to an individual convicted of fraud. The board would not issue a license to this person as he is responsible for a home owner's money, but he would have gone through the application and testing process before the board would be able to ask about his criminal history. Refusing him a license after making him expend money as part of the application and testing requirement for licensure could result in litigation of the board. Issuing him a license while knowing he has a criminal record could open the board to consumer litigation should the licensee commit an illegal act while working as a licensed contractor.

The measure is being pushed by the Democratic Caucus as a way to reduce repeat offenders from returning to a life of crime by giving them more opportunities toward employment. Although the goal is a noble one, it fails to recognize the cost to the applicant and the potential legal issues of the employer or licensure agency.  

The HBAA will continue to work with Senator Quinton Ross (D-Montgomery), sponsor of SB 327, to further mitigate the negative effects this legislation could have on the home building industry and the various boards that license individuals in the industry.
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