HBAA Legislative Alert
Let Them Eat Lane Cake
The Alabama Legislature ended its 28th legislative day this week. A strange air of camaraderie seemed to permeate the statehouse as both chambers enjoyed a fairly cordial week.

The House passed the $800 million prison construction bill on Thursday after an extended debate. The construction of the new prisons would be financed by a bond issue and would reduce the prison occupancy rate from 183% of capacity to 125% of capacity. Previous reform measures are expected to further reduce the overcrowding. A number of speakers expressed concerns of building new prisons before reform measures had a chance to work while others saw problems with building prisons that would be overcrowded on day one of their operation.
The House was also able pass a plan to pay off the rainy day fund, rebuild "bloody 98" in Mobile, and complete the Orange Beach Expressway in Baldwin County all using the BP settlement money. The BP money was set up to be paid off over a number of years and would be roughly $1 billion. In an effort to monetize the payments, the state will go to a bond company and exchange the $1 billion worth of payments for a lump sum of $653 million. The joke on the fifth floor was for the Governor to call JG Wentworth because "it's our money and we need it now!"

The final act of the week was the House passage of Senator Billy Beasley's (D-Clayton) effort to designate the Lane Cake as the official state dessert. Among the many delicious desserts that are enjoyed in Alabama, Lane Cake seldom makes the list. Although the HBAA did not take sides in whether this cake is worthy, it is worth further investigation.
Senate Passes Amended Title Loan Bill
The Senate on Thursday took up HB 129 by Rep. Jim Hill (R-Pell City). This is the same bill that the HBAA worked on as a mediator between the title insurance companies and the Alabama bar. After a couple of attempts at a solution, the sides agreed to an amendment that clarified that selling title loan insurance is not the practice of law. Further, it clarifies that the rates charged by attorneys for title coverage must be in accordance with the rates filed by the title insurance provider.

The HBAA would like to thank both sides for their willingness to reach a compromise. This was a difficult issue for both sides and the HBAA recognizes that it takes courage and leadership to find middle ground.
Apprentice Tax Credit Heads to Governor
A tax credit for hiring apprentices is one step closer to reality as the House approved Senator Arthur Orr's (R-Decatur) SB 90 on Thursday. An employer can claim the credit, equal to $1000, for up to five qualifying employees. The HBAA joined others in arguing that the tax credit did not completely cover the traditionally recognized trades, but has been assured that it will be clarified during rule making. If the measure falls short, the HBAA will support a commitment from Senator Paul Bussman (R-Cullman) to introduce legislation during the next session to rectify the situation should it arise.
Lodging Tax Bill Carried Over in Senate
In a surprising move, the Senate carried over SB 241by Senator Tripp Pittman (R-Daphne) on Tuesday. The bill is designed to target AirBnb and similar services that book rooms for travelers. The initial version of the bill drew concern as it appeared it would apply to apartment homes that hold leases of less than 180 days. The HBAA worked closely with the Department of Revenue to address these concerns. The amendment that the Department brought forward addressed the HBAA's concerns as well as those raised by corporate housing groups.

The HBAA would like to thank Commissioner Julie Magee and her people at the Department of Revenue, especially Mr. Mike Gamble, for all their help in making changes to the bill. The HBAA looks forward to working with the department as we move toward the 2017 Legislative Session.
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