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TUESDAY MORNING
LEGISLATIVE LEADERSHIP COMMITTEE MEETINGS
The BCA Governmental Affairs Committee will meet Tuesday, April 30, at 8:30 a.m. in the first floor auditorium of the Business Center of Alabama, 2 N. Jackson St., Montgomery. Our guest speaker will be Blaine Galliher, Bentley's Legislative director.
Contact Pam Ware for more information.
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OMNIBUS GUN BILL MOVES CLOSER TO FINAL PASSAGE
The law enforcement community, the National Rifle Association, and House leaders this week reached an agreement on a substituted SB 286, the omnibus gun bill by Sen. Scott Beason, R-Gardendale.
The House Commerce and Small Business Committee by a bipartisan vote of 6-2 favorably reported the substitute on Thursday. It is scheduled for a vote in the House next week, and if it passes, it must be returned to the Senate for possible concurrence or referral to a conference committee.
The House sponsor, Rep. Ed Henry, R-Hartselle, negotiated the bill, which is supported by Speaker of the House Mike Hubbard, R-Auburn, who said the bill will be expedited and put on a special order calendar. For more information on the substitute bill, click here to read a press release from the Speaker's office.
Law enforcement and district attorneys were opposed to the Senate version, but they supported an agreed-upon House substitute that was announced at a news conference. "I don't think everybody is 100 percent happy," Hubbard said.
Marion County Sheriff Kevin Williams, president of Alabama Sheriffs Association, said, "Public safety is a key issue for us."
The bill would allow employees to possess firearms in their locked vehicles at work even over the objection of their employer who owns the business property. It also would allow lifetime gun permitting with some exceptions and with a post-issuance repeal. The substitute version also would allow transporting of unloaded firearms without a concealed weapon permit as long as the firearm is out of reach of a vehicle's occupants. Businesses would be granted absolute immunity from civil liability.
The bill is a challenge to lawmakers who want businesses protected but also are aware of the current national political debate over gun rights and of law enforcement concerns.
BCA President and CEO William J. Canary released this statement to the press and read it in full to the House committee on Thursday: "Over the course of this legislative session, the BCA has continued to work with all parties involved in this issue: the NRA, law enforcement, non-profits, the plaintiff's bar, and other representatives from business and industry. As we have stated before, three conditions were presented in order for the BCA to support this legislation: absolute civil liability immunity for businesses; equal application to everyone in Alabama; and an opt-out provision. Two of these three have been accomplished," he said.
"While we appreciate the efforts made here in the Alabama House of Representatives and the House sponsor to protect businesses from this government mandate as best as possible, we are not in a position to join those now in support of SB 286," Canary stated.
"We maintain that the truth is that all amendments to the Constitution are applied equally, with none having precedence over another. The Fifth Amendment rights of property owners are equally as important as the Second Amendment right to bear arms," Canary stated.
"While we should be focused on creating jobs, we instead continue to focus on this unnecessary legislation that does nothing more than find a solution for a problem that does not exist" and the only purpose it serves would be to allow the National Rifle Association "to color in a map." Henry and Rep. Jack Williams, R-Vestavia Hills, earlier in the week discussed the omnibus gun bill at the BCA's Governmental Affairs Committee. Henry has the House version, HB 570, and Williams is chairman of the House Commerce and Small Business Committee.
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GOOD WEEK FOR SUPPORTERS OF ALABAMA'S HIGH ACADEMIC STANDARDS
Almost 300 people packed the marble steps of Alabama's historic Capitol building for nearly an hour Tuesday morning to rally for the Alabama College and Career Ready Standards, or the Common Core Standards. Led by State Superintendent Dr. Tommy Bice, he once again explained to supporters the specifics of Alabama's standards and addressed much of the misinformation that has been disseminated in recent weeks and months. "These are our standards. We own them," Bice said State School Board members Tracy Roberts, R-Spanish Fort; Ella Bell, D-Montgomery and Mary Scott Hunter, R-Huntsville, all proponents of the standards, joined Bice and other supporters.
"Let me tell you who is supportive of our standards," Bice continued. "Parents, teachers, school board members, the four largest chambers of commerce in the state-Birmingham, Huntsville, Montgomery and Mobile, higher education, the military, economic developers and the business community. Who else is left, and who do they support?" The standards were developed to define the knowledge and skills students should have within their K-12 education careers so that they will graduate from high school able to succeed in entry-level, credit-bearing academic college courses and in workforce training programs. In short, it prepares students to be college- and career-ready in a global economy.
As Jill West with the A+ Education Partnership has pointed out, "Standards are not curriculum. Would you expect NCAA football coaches to create their own rules for football and be able to play each other on a level field? Just as coaches come up with their own plays but play by the same standards, teachers come up with their own curriculum, lesson plans, materials, etc. They can be as unique and individual as every student." BCA President and CEO William J. Canary and Senior Vice President Anita L. Archie were both testifying at legislative committees during the rally and were represented by BCA's Nathan Lindsay who echoed Canary's recent comments on the subject. "These standards are vital in preparing students to compete in the 21st century global workforce, which requires highly skilled workers. Adoption of SB 403 and HB 565 would be a giant step backward, based on a false premise that Alabama and local school systems would lose control over their curriculum. While some will continue a campaign of fear on this issue, we will continue to stand united in the business, education and military communities in offering our children the hope of a bright future regardless of the zip code they live in." Melissa Shields, a teacher from Etowah County, took to the microphone to call out the opposition to the standards. "Essentially, they have no idea what is happening in our schools." Late Tuesday afternoon, Senate President Pro Tem Del Marsh, R-Anniston, told reporters outside the Senate chamber that the Common Core repeal effort was "off the table." Despite the Senate President Pro Tem's remarks on Tuesday, the House Education Policy Committee went ahead with their public hearing on the issue Wednesday without taking a vote, which they are planning to do next week.
The sponsor of HB 565 is once again Rep. Jim Barton, R-Mobile, and the entire public hearing can be summed up in what happened in the opening minutes between State Superintendent of Education Dr. Tommy Bice and Barton:
Dr. Bice, while holding up copies of Alabama's math and English standards: "Have you read these standards?"
Rep. Barton: "No."
Dr. Bice: "So you are willing to introduce a bill to repeal something you have not read?"
In light of Senate President Pro Tem Del Marsh's comments on Tuesday, any chance of Common Core repeal during this legislative session is highly unlikely.
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SENATE VERSION OF EDUCATION BUDGET REDUCES EDUCATOR PAY RAISE AND FIRST CLASS PRE-K
The education budget, HB 166, by Rep. Jay Love, R-Montgomery, that will be considered next week by the Alabama Senate will differ in several material respects from the version passed by the House just over two weeks ago. The most notable difference is that the proposed pay raise for K-12 educators and support personnel is reduced from 2 percent as recommended by the House to 1 percent, with an additional conditional bonus of 1 percent that would be allocated to educators if funding becomes available.
Senate Finance and Taxation-Education Committee Chair Sen. Trip Pittman, R-Montrose, began by pointing out that in the House-passed budget, K-12 was underfunded in the areas of textbooks, other current expense and transportation and that he felt that the direct appropriation to repay the ETF Rainy Day Account needed to be increased for FY 2014. The committee version leaves $40 million un-appropriated as a reserve to offset the negative impacts on revenue due to the federal sequester and tax credits provided for under the Alabama Accountability Act. The House-passed version leaves a reserve of $66 million.
From the House-passed version, the substitute budget reduced the pay raise for K-12 educators and support personnel to 1 percent, scored at $33 million, reduced higher education by $12 million and reduced First Class Pre-K by about $6 million. The BCA supports funding for First-Class Pre-K be increased by $12.5 million. These savings were used to restore the funding shortfalls in K-12 and to add slightly less than 1 percent to the operations and maintenance lines of colleges and universities, which theoretically could be used to increase faculty and staff compensation.
The following table compares funding recommendations for several selected agencies and programs in millions:
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Budgeted
FY 2013
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Gov. Rec.
FY 2014
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House
Passed
FY 2014
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Senate
Comm.
FY 2014
| Dept. of Children's Affairs
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| Office of School Readiness - 1st Class Pre-K
| 19.1
| 31.6
| 31.6
| 25.3
| Dept. of Commerce - Operations
& Main
| 4.7
| 4.7
| 4.7
| 4.7
| AIDT
| 5.5
| 5.5
| 5.5
| 5.5
| Workforce Development -
career center & Existing training
commitments
| 38.7
| 41.4
| 41.4
| 41.4
| K-12 Found. Prog. includes
raises
| 3634.6
| 3735.1
| 3715.2
| 3704.6
| Two-Year College System
(Total)
| 316.1
| 319.3
| 320.1
| 322.8
| Adult education
| 13.4
| 13.4
| 12.4
| 12.4
| Workforce Development
| 2.7
| 2.5
| 2.7
| 2.9
| AL Technology Network (ATN)
| 4.6
| 4.6
| 4.6
| 4.6
| AL Dept of Education
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|
|
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| AMSTI - Math, Science
Tech Initiative
| 28
| 28
| 28
| 33
| AL Reading Initiative
| 58.1
| 48.1
| 48.1
| 48.1
| Distance Learning
| 18.5
| 18.5
| 18.5
| 20.5
| Advanced Placement
| 2.2
| 2.2
| 2.2
| 3.8
| Liability Insurance
| ---
| ---
| 5
| 3.5
| Career Tech Initiative
| 2.3
| 2.3
| 2.3
| 3.3
| Colleges and Universities
(Total)
| 1006.3
| 1025.9
| 1020.8
| 1014.4
| Alabama Innovation Fund
| 1.65
| 10
| 6.1
| 2.6
| Repayment to ETF
Rainy Day Account
| ----
| 100
| 35
| 70
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COMMITTEES APPROVE BILLS THAT MAKE CLARIFICATIONS FOR THE IMPLEMENTATION OF THE ALABAMA ACCOUNTABILITY ACT
The Senate Education committee adopted and favorably reported a substitute version of SB 360, sponsored by Senate President Pro Tem, Del Marsh, R-Anniston, which clarifies definitions and further outlines the qualifications and procedures for facilitating the transfer of students from a failing school to a non-failing school and the associated income tax credits.
The Marsh substitute clarifies that: 1) no public or nonpublic school is required to enroll any student; 2) parents of a student who is either enrolled or assigned to attend a failing school will qualify for the tax credit; 3) a "failing school" is defined as one that has rated in the bottom 10 percent on the state standardized assessment in reading and math for three or more times in the last six years; 4) the student seeking a transfer from a failing school shall first attempt to enroll in a non-failing public school within the same school system; and 5) scholarship-granting organizations may award scholarships to students in failing schools whose family income is not more than three times the federal poverty level. The bill also specifies that the tax credit to scholarship donors shall equal 100 percent of the contributions (originally 50 percent) made to a scholarship granting organization, with the aggregate cap of the scholarship tax credit not to exceed $25 million.
Later in the day, the House Ways & Means--Education committee gave a favorable report to HB 658, by Rep. Jim Carns, R-Vestavia Hills. The committee reported the bill out in its original form, whereby it only clarifies that no public or nonpublic school is required to enroll any student attempting to transfer from a failing school. Both bills have been placed on the regular calendars of their respective chambers and await consideration by the full bodies. |
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MEDICAID BILLS START ROLLING AS SESSION GAINS END MOMENTUM
The House and Senate this week advanced Medicaid overhaul and related bills.
The primary Medicaid bill, a substituted HB 454 by Rep. Jim McClendon, R-Springville, passed the House 78-20, on Tuesday. The Senate version, SB 340 by Sen. Greg Reed, R-Jasper, passed the Senate 27-3 on Thursday. The Senate version excluded dentists from regional care organizations. The bills move to the opposite chambers for consideration.
In addition, the House passed HBs 370 and 371 by Rep. Greg Wren, R-Montgomery. And HBs 562 and 605 by Rep. Steve Clouse, R-Ozark, related to provider taxes, passed.
The Business Council of Alabama supports reform of the state's Medicaid program to ensure long-term sustainability and to control costs by improving efficiency, addressing fraud and abuse, and ensuring access to quality health care for citizens.
A wholesale revision of Medicaid is the result of the inability of limited state finances to continue covering growing Medicaid costs and recommendations from Governor Robert Bentley's Medicaid Advisory Commission.
Legislators understand that Medicaid requires more and more of the state's General Fund appropriation and is growing at an unacceptable rate. The General Fund appropriation to Medicaid was $615 million this fiscal year out of a budget of $1.7 billion.
McClendon explained HB 454. "The big picture is keeping Medicaid operating in Alabama and provide quality medical care for citizens of Alabama," McClendon said.
McClendon's bill will allow the Medicaid Agency to authorize regional care organizations where providers would manage the health care of approximately 940,000 Medicaid recipients and avoid costly emergency room visits for routine care. The substituted bill removed the original concept of allowing up to eight regional care organizations (RCOs).
Regional care organizations will have to be set up by Oct. 1. They will consist of 20 members and eventually will establish governing and advisory boards. The RCOs will contract with medical providers.
McClendon said his bill is designed to shift the cost risk of Medicaid from taxpayers to organizations that, if they operate correctly, can make a profit on the federal and state Medicaid appropriations. "What the bill will actually do is move some of the responsibility out of the Medicaid agency ... into each individual region," McClendon said.
"It's not an alternative to the Affordable Care Act," McClendon said. "Our taxes are not going up with this bill."
Wren's HB 370 as substituted would cap the amount of General Fund dollars appropriated to the Medicaid Agency beginning Oct. 1, 2016, the Legislative Fiscal Office said. The initial cap will be a negative 1 percent growth but would later be adjusted based on the percentage growth in the U.S. health care inflation rate, minus 1 percent. It passed 71-28.
HB 371 would authorize the Medicaid Agency to ask for a waiver from the Centers for Medicare and Medicaid Services to increase Medicaid recipient co-payments on health care services paid for by the Agency. Increasing copayments could save Medicaid $700,000 a year, the Legislative Fiscal Office said. It passed 83-13.
HB 562, which passed 98-0, would extend the Medicaid nursing home supplemental privilege assessment and monthly surcharge for two years. HB 605, which passed 101-0, would extend the hospital Medicaid assessment for three fiscal years but would allow for a change after two years if Congress mandates other changes.
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WORKERS' COMPENSATION REFORMS EFFORT STILL ALIVE DESPITE COMMITTEE VOTE
On Wednesday, the Senate Business and Labor Committee carried over SB 453, by Sen. Del Marsh, R-Anniston, the bill that provides for comprehensive workers' compensation reform. At the request of Sen. Marsh, business, labor, plaintiffs bar, and various associations, including BCA, began discussions last year on updating the laws that have not been amended since 1992.
SB 453 is a comprehensive package that lessens the cost burden to businesses, including the cost of medical and prescription drugs. The bill increases the permanent partial disability cap for injured workers and sets forth clear obligations of the Department of Labor to implement and administer the workers' compensation law. Estimated savings to businesses across Alabama is in the millions of dollars.
The working group will meet on Tuesday to address some of the additional concerns that relate to the bill. The BCA strongly supports efforts to reach a compromise on the bill in order to provide much needed reform to our outdated workers' compensation laws.
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PLAN TO REFORM AND STREAMLINE THE APPLICATION AND PAYMENT OF STATE-COUNTY BUSINESS LICENSES SENT TO SUBCOMMITTEE
Several members of the Senate Governmental Affairs committee expressed concerns about the loss of revenue from county-specific business license taxes that would be repealed under the proposed legislation, SB 397, by Sen. Slade Blackwell, R-Mountain Brook. Committee chair Sen. Jimmy Holley, R-Elba, alerted the members that he would appoint a subcommittee to work with the Department of Revenue, counties and municipalities to resolve these and other issues with the bill during the interim.
The legislation would provide for a central online location for all businesses to apply, purchase and renew their state-county business licenses, similar to the "One Spot" system enacted last year to streamline the filing and payment of local sales, use and rental taxes. After the state-county system becomes operational, municipal business licenses will be merged into the central system.
In addition, the bill would reform the current system because it is unfair. Some 140 separate county licenses exist in statute, although many of the archaic activities listed that require a business license no longer exist in practice, such a lightning rod salesman. Many retailers are required to purchase several separate licenses for selling various items, for example; separate licenses for selling cigarettes, sodas and gasoline. Alternatively, companies in industries that only came into existence in recent years that were not contemplated when the old business license categories were created (software developer, graphic designer) are not required to purchase a state-county license. Sen. Blackwell told the members that it is his intent that the overall revenue impact be neutral for the state and counties. Over the interim, the BCA will monitor the work of the subcommittee and assist as necessary on behalf of our members.
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MEDICAL, HEALTH-RELATED BILLS ADVANCE
House and Senate bills that would allow certified registered nurse practitioners and certified nurse midwives to prescribe certain controlled substances cleared separate steps toward passage on Wednesday.
A committee also cleared a medical provider conscientious objection bill.
The House Health Committee approved SB 229 by Sen. Greg Reed, R-Jasper, and the Senate Health Committee approved the House version, HB 307 by Rep. Jim McClendon, R-Springville. The bills advance for consideration by the full House and Senate.
The Business Council of Alabama actively supports efforts to discuss options to better clarify the roles of nurse practitioners in the provision of primary medical care services in Alabama.
Reed said allowing certified registered nurse practitioners and certified nurse midwives to be able to prescribe pain killers will help expand medical service in Alabama, especially in rural areas. He said Alabama is one of only a handful of states that does not allow the practice.
"This is a health access issue," Reed said. "There are so many areas across Alabama especially in rural areas that nurse practitioners are the primary care. This will provide better access."
After the committee meeting, Reed gave an example of a patient who had accidentally cut her hand and got the wound stitched but had to wait most of the day before a physician could prescribe a pain killer.
A health care provider conscientious objection bill advanced in a House subcommittee on Wednesday. On a voice vote, the House Healthcare Costs Subcommittee approved HB 354 that would allow health care employees to opt out of working on medical procedures for moral reasons, such as abortions.
Sponsor Rep. April Weaver, R-Brierfield, said she hopes the bill, which has failed to pass in previous sessions, will make it this year.
"It's important because as a health care provider personal beliefs should be allowed in refusing to participate in a procedure that's objectionable," said Weaver, a health care administrator. The subcommittee's vote sent the measure to the House Health Committee.
The bill would protect an employee, who exercises his or her conscience, from retribution or discrimination by his or her employer. The bill was on the Republican House members agenda announced at the beginning of the 2013 legislative session.
"The basic concept is that if health care providers perform services that violate someone's conscience, there's immunity from discrimination if you choose not to participate," Weaver said when announcing the bill.
The employee must provide written advance notice of his or her objection. Sen. Cam Ward, R-Alabaster, has the Senate version, SB 251. It's in the Senate Health Committee.
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LEGISLATIVE OPERATIONS REORGANIZATION BILL GETS CHANGED
The Senate-passed bill that reorganizes the legislative support staff and legislative operations reorganization bill entered the House Committee on State Government in much the same shape it left the Senate, but it emerged this week substituted and amended by the committee. The House Committee on State Government changed SB 122 by Sen. Jimmy Holley, R-Elba, on Wednesday and sent it to the full House for consideration. Holley's original bill would have created a 12-member oversight council for legislative operations. The substitute bill creates a 16-member Legislative Council consisting of eight members from each house, creates House and Senate legislative council subcommittees, and removes tenure for the House Clerk and Senate Secretary.
The substitute also shifts the cost of special legislative sessions from the legislature to the Executive Branch under the Departmental Emergency Fund, which is controlled by the governor. The fiscal note says the current cost of a special legislative session is about $314,000 per session. The goal of the substitute is to reduce operational costs where appropriate and streamline operations: "This bill also directs the Legislative Council to reduce and contain legislative operation and maintenance costs to the fullest extent reasonably possible and practical," the fiscal note says. The bill removes the link that ties Legislative Reference Service legislative analyst pay to the pay of attorneys under the State Merit System. The bill calls for new positions: Director of Legislative Services, Director of Human Resources, and Director of Technology. The bill eliminates the $2 million minimum quarterly appropriations and the automatic $500,000 emergency appropriations for the legislature.
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ASSISTED LIVING FEE BILL CLEARS SENATE COMMITTEE
The Senate Governmental Affairs Committee on Tuesday approved SB 291 that affects the Board of Assisted Living Administrators. The bill by Sen. Tammy Irons, D-Florence, received a favorable report. It would authorize the Board to set a replacement fee for lost or misplaced licenses, a reapplication fee, and an information-change fee for a licensee who fails to tell the board of an address or employment change within 15 days of the change. Current administrative fees are $75. The bill also would authorize the Board to discipline a licensee and to fine a licensee up to $1,000 per violation for pleading no contest or guilty in any case involving a lewd or lascivious act against a child or adult or for any crime when the punishment could include a sentence of imprisonment exceeding one year, the Legislative Fiscal Office said. The bill goes to the full Senate for consideration.
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AIDT TRANSFER BILL SENT TO GOVERNOR
A bill that formally transfers the Alabama Industrial Development Training Institute to the Alabama Department of Commerce has navigated its legislative hurdles. SB 222 by Sen. Trip Pittman, R-Montrose, was sent to Governor Robert Bentley for consideration on Tuesday. It passed the Senate 30-1 on March 20 and the House 101-0 on April 18. Pittman's bill confirms the provisions of Bentley's Executive Order 2012-31 that transferred the AIDT's functions, authority, personnel, and appropriations to the Department of Commerce. The Fiscal Year 2013 appropriation from the Education Trust Fund for AIDT is $38.1 million. The AIDT was created more than 40 years ago as a mobile training center. Today, it assists in workforce development and provides skills, knowledge, and training to help prepare a workforce and assist Department of Commerce job-development projects.
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The Birmingham Water Board bill, SB 460 by Sen. Jabo Waggoner, R-Vestavia Hills, received a favorable report from the Senate Commerce, Transportation, and Utilities Committee. The House companion of this bill, HB 647 by Rep. Paul DeMarco, R-Homewood, was the subject of a public hearing in the House Committee on County and Municipal Government. This bill would apply to municipal water works boards which serve water customers in two or more counties other than the one where the authorizing municipality is principally located.
The legislation would: 1) provide for the appointment to the board of an additional member by the county commission of each county where water customers are served, other than the county where the authorizing municipality is principally located; 2) limit the term of all board members to two six-year terms; 3) limit the compensation and expense allowance of the board members; 4) specify that the board members be covered by the State Ethics Law; and 5) provide for notice and a public hearing prior to the board adopting any rate increase.
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The Drought Bill, SB 208, sponsored by Sen. Billy Beasley, D-Clayton, received a favorable report from the House Committee of Commerce and Small Business. This legislation codifies the Alabama Drought Assessment and Planning Team process that has been in place through executive order for more than a decade. The bill also will require the development of drought plans for water utilities and the State of Alabama. The House companion of this bill, HB 382 by Rep. Mark Tuggle, R-Alexander City, is on the House regular calendar in position to be taken up by the House.
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The Emelle Bill, HB 181 by Rep. A.J. McCampbell, D-Gallion, was passed by the Senate and has been forwarded to the governor for signature. This bill reduces the state base fee for the disposal of hazardous waste. During a public hearing, proponents referenced a study which identified hundreds of jobs that would be created in west Alabama if this bill passes. Environmentalists spoke against the bill stating their concerns that Alabama would turn into the "dumping ground" for hazardous waste from other states.
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YOUR BCA ADVOCACY TEAM
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For more information on the Business Council of Alabama contact Elaine Fincannon at elainef@bcatoday.org |
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