2013 LEGISLATIVE SESSION PRODUCED SUCCESS FOR BUSINESS
The 2013 regular legislative session that began Feb. 5 and which ended Monday produced overall positive results for Alabama business through successful passage of bills that were important to the Business Council of Alabama and its members and, where necessary, explaining how others were deemed detrimental.
Successful measures included transparency in and limiting legal fees for state-hired attorney contracts, legal liability limits for large aircraft manufacturers, education initiatives and funding, reducing red tape, maintaining high education standards, creating a new Medicaid system to deliver quality medical service at an affordable price, enhancing school choice, updating environmental laws, and repaying the Alabama Trust Fund and a rainy day account.
BCA was able to ensure that two provisions in the populist Omnibus Gun Bill protected businesses in Alabama. Eluding business was a provision in the gun bill that does not allow a business to prohibit firearms on its own property.
BCA President and CEO William J. Canary thanked legislators who were responsible for advancing business goals in the session, goals defined by BCA committee members and the BCA's Board of Directors prior to the session.
"While progress is often times not easy, the foundations that have been laid in our fight for the private sector are greater than they have been in the last 30 years," Canary said. "This session we saw key legal and education reforms, and we can rejoice that 1,500 more children will have access to high quality pre-K. The days when political forces in Alabama worked to pit business and education against each other are over. The business community is the No. 1 consumer of the product called education, and the time is now for a permanent Business/Education Alliance in Alabama.
"Moving forward we will continue to be the leading advocate for existing industry by standing for a more accountable and efficient state government so that businesses can do what they do best - create jobs," Canary said. "Our mission at BCA remains simple and strategic - we fight every day for the businessman and woman to be able to sign the front of a paycheck, so that others can sign the back."
Governor Robert Bentley and the leaders of the House and Senate reflected on the session, the third regular session since Bentley and a pro-business legislature took office.
Bentley touted the Alabama Commercial Aviation Business Improvement Act that will level the playing field between Alabama and other states in recruiting aerospace industry suppliers. He said a new aircraft manufacturer in Mobile, Airbus, will directly provide 1,000 jobs while more than 3,000 people will be employed in the construction phase.
"We have taken new measures to streamline state government and save money for taxpayers," Bentley said, referring to better coordination of information technology systems and our state-level law enforcement.
"Again, the 2013 session was very successful," he said. "Nothing is more important to me than creating jobs for the people of Alabama. And my efforts will continue until everyone who wants a job is able to find one."
President Pro Tem Del Marsh, R-Anniston, said the legislature, Bentley, and Lieutenant Governor Kay Ivey are committed to growing and protecting Alabama's pro-business climate. "As the backbone of Alabama's economy, we are 100-percent committed to working with the business community to continue positive economic growth," Marsh said.
House Speaker Mike Hubbard, R-Auburn, said the 105-day session was successful for business. "By investing in workforce training programs, reducing government-imposed red tape, streamlining several important areas of government, and protecting taxpayers from frivolous legal fees, Alabama will remain a state with a sustainable budgeting process, low taxes, and a low unemployment rate," Hubbard said. "Working with the Governor and the business community, this legislative leadership is committed to making certain Alabama continues to be one of the most business-friendly states in the nation."
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TIPAC BILL APPROVED IN FINAL MINUTES OF LEGISLATIVE SESSION
The Transparency in Private Attorney Contracting bill was approved with literally minutes to spare on the final night of the session. Sponsored by Rep. Paul DeMarco, R-Homewood, HB 227 was placed on a Senate special order calendar and was passed 28-1. Sen. Cam Ward, R-Alabaster, handled the Senate version. The bill went to the House of Representatives and was brought up at 11:55 p.m. The House concurred and passed the bill 98-1 just minutes before the session ended. It now needs the signature of Governor Robert Bentley.
For the last two years, the BCA has been at the forefront of the effort to require state agencies to declare in writing that hiring outside counsel on a contingency-fee basis is cost effective and in the public's best interest. As state attorneys general become more engaged in major consumer protection issues, there has been a willingness on the part of some attorneys general to hire private attorneys to pursue state litigation. Attorneys receive contingency fees - a percentage of an amount recovered on behalf of the taxpayer. In the past, some private law firms received excessively high fees in relation to the amount of work they did. The BCA, the Plaintiff's Bar, the legislative leadership, and the Attorney General's office worked together to ensure that the final version of the bill provided the appropriate checks and balances when tax dollars are used to hire private attorneys.
"The BCA remains committed to the continued advancement of legal reform in Alabama," said BCA President and CEO William J. Canary. "Over the years, we have worked closely with the U.S. Chamber Institute for Legal Reform on this type of model legislation to ensure accountability and full disclosure. We applaud the House and Senate legislative leadership and our attorney general who collectively made this legislation a priority and helped ensure its passage."
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ALABAMA'S HIGH ACADEMIC STANDARDS TO REMAIN IN PLACE
One of the most contentious issues during the 2013 session was the attempt to repeal Alabama's College and Career Ready Standards. Between the House and Senate and over the course of three months, eight separate committee meetings were held to discuss the issue and to allow the public the opportunity to comment whether the legislature should repeal the standards or continue allowing the State Board of Education to set Alabama standards for schools.
In the end, common sense prevailed. Only once did a committee favorably report legislation to repeal the standards. Almost as quickly as the Senate Education Committee approved a proposed bill, Senate President Pro Tem Del Marsh, R-Anniston, said it would not be considered on the Senate floor.
A final attempt by Sen. Dick Brewbaker, R-Pike Road, to bring up the issue was successful when he managed to get a majority of the Senate to support a non-binding resolution that urged the State Board of Education not to accept any federal funds tied to the Common Core State Standards Initiative. The House Rules Committee refused to give the resolution a favorable report and it was never considered by the full House.
As has been the case all along, Alabama voluntarily chose to participate in the Common Core Standards, without coercion from the federal government or any other state or private interest. Alabamians wrote our standards, and Alabama owns our standards. Because we have never been a Race to the Top recipient, no federal funds have ever been tied to our standards. Simply put, the new standards require more critical thinking, problem solving, and teamwork instead of simple fill-in-the-blank memorization. It creates a level playing field for students who move from state to state, and it better prepares them to compete in the 21st Century global workforce. The BCA opposes any attempt to repeal Alabama's high academic standards.
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PRIVATE SECTOR TO BE SPARED NEEDLESS REGULATION UNDER THE 'RED TAPE REDUCTION ACT'
The enactment of HB 101 by Rep. April Weaver, R-Brierfield, as Act #2013-88, will help free the private sector from needless governmental rules and regulations. BCA-supported legislation entitled the Red Tape Reduction Act requires that a state agency must prepare a business economic impact statement for a new regulation, except for agencies primarily engaged in licensure, when the agency proposes a rule change and receives a complaint that the change may adversely impact small business. Agencies must review existing rules every five years and post existing and proposed regulation reviews on agency websites.
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OMNIBUS GUN BILL BECOMES LAW, INCLUDES CIVIL LIABILITY IMMUNITY FOR BUSINESS
On the last day of the session, the House quickly concurred with a conference committee report and sent the Omnibus Gun Bill, SB 286 by Sen. Scott Beason, R-Gardendale, to Governor Robert Bentley. He signed the bill into law as Act #2013-283. Since before the session began, BCA has been on the frontline fighting for employers' rights to control their own property and protect the workplace. While the new law makes numerous changes to Alabama's gun laws, the main concern for business is the provision that says employers cannot prohibit firearms in employee vehicles on company property. For years, BCA's consistent position has been that allowing guns on business property should be a business decision, not a government mandate. The law does provide full immunity from civil liability for employers in the event guns are illegally used on the property, a hard fought victory giving at least legal protection to businesses.
Following Bentley's signing of the bill, BCA President and CEO William J. Canary issued the following statement as reported by AL.com: "While we appreciate the significant efforts made by the leadership in the House and Senate to protect businesses from this government mandate as best as possible, this legislation fell short of our support," Canary said. "We will begin to work on what effect this legislation is going to have on both the workplace and its full application around the state."
For more background and details on the provisions included in the bill and BCA's advocacy on behalf of business, read the timeline of articles BCA published throughout the 2013 Legislative Session.
May 10 - Gun Bill One Step Closer to Becoming Law May 3 - House Passes Omnibus Gun Bill April 26 - Omnibus Gun Bill Moves Closer to Final Passage April 5 - Controversial Omnibus Gun Bill Passes the Senate March 15 - Senator Says Ominibus Gun Bill Won't Pass in Its Current Form March 8 - Senate Judiciary Committee Passes SB 286, Omnibus Gun Bill, Disregarding Concerns from Law Enforcement and The BCA February 8 - Guns to Work Takes Center Stage February 1 - Supporting Employers' Rights: Legislative battle looms over firearms at the workplace |
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HOUSE AND SENATE OVERRIDE GOVERNOR'S AMENDMENT ON ACCOUNTABILITY
The legislature on the final day of the session overrode Governor Robert Bentley's executive amendment seeking a two-year delay of tax-credit sections of the Alabama Accountability Act of 2013. The House voted 57-10 to non-concur, with most Democratic representatives abstaining. The Senate voted to non-concur on a closer vote of 19-15. The veto override sent the bill to the Secretary of State for assignment as Act #2013-265. The bill actually replaced the original Alabama Accountability Act of 2013, a school flexibility bill, sponsored by Rep. Chad Fincher, R-Semmes, enacted as Act #2013-64.
Bentley wanted the flexibility sections of the act implemented but sought the two-year delay in tax credits in order to preserve revenue to repay some of the $437 million withdrawn from the Education Trust Fund's rainy day account to prop up school spending. HB 658, sponsored by Rep. Jim Carns, R-Vestavia Hills, was substituted on the 29th legislative day by Senate President Pro Tem Del Marsh, R-Anniston. It clarified definitions and further outlined qualifications and procedures for allowing students to transfer from failing schools to non-failing schools in addition to the related income tax credits.
The Alabama Accountability Act clarifies that no public or non-public school is required to accept a student from a failing school and that parents of a student who is either enrolled or assigned to attend a failing school will qualify for the tax credit. A "failing school" is defined as one that is persistently low-performing, does not exclusively serve a special population of students, and has rated in the bottom 6 percent on the state standardized assessment in reading and math for three or more times in the last six years. In addition, a student seeking a transfer from a failing school must first try to enroll in a non-failing public school within the same school system. Scholarship-granting organizations must award scholarships to low-income eligible students at a percentage equal to the percentage of low-income eligible students in the county where the majority of their scholarships are awarded. 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 and that donors may not specifically designate scholarship recipients. The aggregate cap of the income tax credit for donations made to scholarship-granting organizations shall not exceed $25 million annually.
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MEDICAID OVERHAUL SIGNED INTO LAW, COULD SAVE TAXPAYERS MILLIONS AND CREATE BETTER HEALTH OUTCOMES
Governor Robert Bentley signed the Medicaid overhaul bill on May 17, setting the stage for a revamped public health program that could save taxpayers millions of dollars and provide better health outcomes for Medicaid recipients. The House and Senate with only three dissenting votes passed SB 340 sponsored by Sen. Greg Reed, R-Jasper. It became Act #2013-261. Rep. Jim McClendon, R-Springville, introduced the House version. The new law authorizes the Medicaid Agency to create regions where Medicaid providers - doctors and hospitals - would contract to serve the state's 940,000 Medicaid recipients. The regions will have to be in place by Oct. 1 and the new system up and running by Oct. 1, 2016.
The new Medicaid law was the result of Bentley's Medicaid Advisory Commission formed last year and a legislative Medicaid review panel. Lawmakers said Medicaid cannot be sustained financially in its current fee-for-service form so they decided to change the system to one that relies on per-patient funding and more access to health providers. State Health Officer Dr. Don Williamson said a new Medicaid program could save $50 million to $75 million over five years.
The BCA supports reform of the state's Medicaid program to control costs and ensure long-term sustainability by improving efficiency, addressing fraud and abuse, and ensuring access to quality health care for Alabama citizens. Medicaid is the state-federal health insurance program for lower-income residents. Two Medicaid related bills, HBs 562 and 605 by Rep. Steve Clouse, R-Ozark, extended voluntary provider taxes. They became Act #2013-240 and Act #2013-246 respectively.
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PRE-K FUNDING SHOULD INCREASE PARTICIPATION
A bright spot in the 2013-14 Education Trust Fund budget was the increase of $9.4 million for pre-kindergarten funding for the fiscal year beginning Oct. 1. That's an increase to $28.5 million from $19.1 million this fiscal year. Governor Robert Bentley had asked for a $12.5-million increase for voluntary pre-kindergarten children but he went ahead and signed the ETF with the lower amount right before the 2013 legislative session ended. The money will enable an additional 1,500 children to attend high-quality pre-K.
The BCA advocated adequate and equitable funding for all levels of public education, including pre-K, which is a voluntary program for 4-year-olds. Bentley said Alabama's voluntary pre-K program leads the nation in quality. He said Alabama is one of only four states in the country to meet all 10 quality benchmarks established by the National Institute for Early Education Research.
NIEER benchmarks include teacher training, staff-child ratios, and support services. Alabama's voluntary pre-K has met all of the benchmarks for quality seven years in a row. Bentley said pre-K gives children a strong foundation and increases their chances for success. Only 6 percent, or slightly under 4,000 of the state's eligible children, currently attend pre-K.
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PEOPLE'S TRUST ACT AMONG THE FIRST PASSED
One of the first actions in the 2013 session was passage of HB 94 sponsored by Rep. Jay Love, R-Montgomery, enacted as ACT # 2013-6. The People's Trust Act commits the legislature to repay the $437 million that voters approved shifting from the oil and gas royalty Alabama Trust Fund last year to prop up general government spending through 2015. The act establishes an escalating repayment schedule that will pay off the debt by the end of Fiscal Year 2026. In addition, the act requires an automatic annual repayment if in any year the legislature fails to appropriate a scheduled repayment amount.
The BCA supports the effort to repay all funds transferred from the ATF. The BCA supported the Sept. 18 trust fund constitutional amendment with the caveat that elected leaders of the three branches of government would continue to reduce waste and cut down on duplicative state services. The BCA's support was also contingent that no individual segment of the state's economy would bear a disproportionate share of any financial burden. Voters ratified the $437 million transfer, but there was no repayment requirement.
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CAMPAIGN FINANCE REFORM BILL ENDS CORPORATE CONTRIBUTION LIMIT
In the last hour of the legislative session, the Senate and House concurred with a conference committee compromise on SB 445, by Sen. Bryan Taylor, R-Prattville. It made several changes to Alabama's Campaign Finance Law that was initially reformed following the historic 2010 election when Republicans gained control of the legislature. One major change was a provision that removes the corporate contribution limit placed on C-Corporations that contribute to candidates or political action committees. Currently, C-Corporations are limited to $500 per election multiplied by the number of elections in a given year as determined by the Secretary of State. For example, if there are 10 elections in a given year, then the limit would be $5,000. Under current law, however, limited liability partnerships, sole proprietorships, and individuals face no such limits.
"This at least gives everyone a level playing field," Taylor said. The House sponsor, Rep. Mike Ball, R-Madison, has consistently stated that the current limits don't really limit contributions, but instead encourage the proliferation of PACs which makes it harder to determine the original source of campaign contributions. "Money is already in elections, so we want it to be fully transparent," Ball said. While some controversy between Republicans and Democrats surrounded this reform bill, the final version struck a strong bipartisan tone as evidenced by the final vote of 90-3 in the House and 27-4 in the Senate. As reported by the Associated Press, BCA President and CEO William J. Canary said that the U.S. Supreme Court has ruled that businesses can engage in the political process, so the focus should really be on increasing transparency. "I think the key to campaign finance has always been transparency and timely reporting," Canary said. "Those are the issues that should dominate the discussion."
One of the main changes that came out of the conference committee was language that would prohibit the transfer of money among PACs controlled by the same political party. This was allowed in the version of the bill prior to the conference committee, but was taken out in conference to align with the current law which bans PAC-to-PAC transfers, a tactic used by many prior to 2010 to hide the original source of a contribution. Other changes tightening the ban on PAC-to-PAC transfers were included as well. The bill mostly includes technical changes that make the enforcement and reporting of Alabama's campaign finance law more streamlined and common sense. One change sets the reporting threshold at $1,000 for all candidates. Currently, the threshold in which a candidate must begin reporting their contributions varies depending in which race the candidate is running. The bill was sent to Governor Robert Bentley for consideration. If signed, the law is subject to clearance by the United States Department of Justice due to Section 5 of the Voting Rights Act of 1965.
In a related note, campaign finance reporting will be online in 2014 as required by the campaign finance law passed in 2010. Secretary of State Beth Chapman's office has scheduled a series of seminars to educate the public on the new online system. For more information on the seminars visit the Secretary of State's website.
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GOVERNOR SIGNS EFFICIENCY BILLS, ONE MEASURE DIDN'T MAKE IT
Governor Robert Bentley in March signed into law two government-efficiency measures along with an executive order requiring the Department of Transportation to manage the state's motor vehicle fleet. Bentley signed bills to consolidate state police functions and to create an Information Technology cabinet position. He said the efficiency measures were part of his pledge to accomplish $1 billion in taxpayer savings.
Bentley signed SB 108 by Senate President Pro Tem Del Marsh, R-Anniston, on March 19, enacted as Act #2013-67. It will consolidate state law enforcement functions of more than 20 state agencies or departments beginning Jan. 1, 2015. The new law creates the Alabama State Law Enforcement Agency headed by a Secretary of Law Enforcement whom Bentley will appoint. The agency will consist of a Department of Public Safety and a Department of Investigations. Effective immediately the Department of Homeland Security was merged into the State Law Enforcement Agency.
Bentley also signed SB 117 by Sen. Phil Williams, R-Rainbow City, as Act #2013-68, the same day. It creates a cabinet-level Secretary of Information Technology to oversee purchasing, management, and use of information technology in state agencies. Bentley appointed a Secretary of Information Technology whose duty will be to identify ways to save money and improve I.T. network coordination. A legislative oversight committee will review the secretary's performance.
By executive order, Bentley created an Office of Fleet Management and a fleet manager within the Department of Transportation to develop and implement plans to save money through purchasing, maintenance, and fuel efficiency. The BCA's Board of Directors voted to support improved government efficiency and accountability as a requirement for supporting the Sept. 18 constitutional referendum on shifting money from the oil and gas Alabama Trust Fund to the state General Fund.
SB122 by Sen. Jimmy Holley, R-Elba, the legislative reorganization bill, passed the Senate and was on a proposed House special order calendar. But it died in the House basket on the last night of the session. A substitute bill would have created a 16-member Legislative Council consisting of eight members from each house, created House and Senate legislative council subcommittees, and removed tenure for the House Clerk and Senate Secretary. The substitute also would have shifted the cost of special legislative sessions from the legislature to the governor's Finance Department Emergency Fund. The fiscal note said the cost would be about $314,000 per session.
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LEGAL REFORM BILL FOR AIRCRAFT MANUFACTURERS NOW LAW
When the Airbus manufacturing facility in Mobile delivers its first A320 aircraft - expected to be in 2016 - Alabama will be on a level playing field with Washington state, the only other state in the country which builds wide-bodied aircraft, when it comes to legal protections for aircraft manufacturers. SB 238 by Sens. Cam Ward, R-Alabaster, and Vivian Davis Figures, D-Mobile, enacted as Act #2013-73, will limit the legal liability of aircraft manufacturers in Alabama to 12 years after an airline company receives a new airplane. Governor Robert Bentley signed the bipartisan legislation into law on April 4. Because other Southern states have similar statutes of repose, Alabama legislators passed the law knowing that suppliers would locate in our sister states if Alabama didn't have similar protections. The bill passed the Senate 32-0 and the House 102-0.
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BCA-BACKED TAX CREDITS FOR THE RESTORATION OF HISTORIC STRUCTURES BECOMES LAW
With the enactment of HB 140, enacted as Act # 2013-241, by Rep. Victor Gaston, R-Mobile, Alabama joins 31 other states that have established tax credits for the preservation of historic structures. Supporters of this legislation credit it for promoting the restoration of communities and job growth. The act provides a tax credit of 25 percent of the qualified rehabilitation expenditures to improve "certified historic structures." It provides a tax credit of 10 percent of the qualified rehabilitation expenditures made to improve "qualified pre-1936 non-historic structures" against the state income tax or the state's share of the financial institutions' excise tax. The aggregate annual cap of all credits allowed for historic structures cannot exceed $20 million and the credits are not available for the rehabilitation of structures based on plans submitted three years after enactment.
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BILL TO CREATE INDEPENDENT TAX APPEALS COMMISSION AND UPDATE TAXPAYERS' BILL OF RIGHTS DIES ON SENATE CALENDAR, SUPPORTERS HAVE MORE WORK TO DO
Another legislative session ended without passage of long-awaited legislation to create an independent tax appeals commission and to modernize the Alabama Taxpayers' Bill of Rights. The legislation has been a priority of the Business Associations Tax Coalition and the BCA for over a decade. With time at a premium due to the Senate being even more contentious than in recent years, HB 264 by Rep. Paul DeMarco, R-Homewood, needed the solid support of at least 21 senators to gain a spot on a special order calendar, succeed on a cloture vote to end debate, and ultimately to pass, all after a lengthy reading of the 90-plus page bill.
As the session wound down, it became obvious that several otherwise pro-business senators had concerns about adverse but unlikely side-effects of the legislation and could not be counted on to end an almost certain filibuster. Whether based in principle or misinformation, several senators questioned the bill's necessity and whether an independent tax appeals commission would disadvantage small businesses. It was also clear that some interest in the legislation simply waned because of the length and complexity of the bill.
Proponents must reaffirm a commitment to passage of the legislation. Senators need to hear from not only lobbyists and tax practitioners but also local employers large and small who can articulate why the legislation is needed. Creating an independent tax appeals commission and updating the Taxpayers Bill of Rights will remain a top priority for the BCA in the 2014 legislative session.
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WORKERS' COMPENSATION REFORM
STALLS IN COMMITTEE
The Senate Business and Labor Committee kept SB 453, the workers' compensation bill by Senate President Pro Tem Del Marsh, R-Anniston, was in committee the entire session. At Marsh's request last year, business, labor, the plaintiffs' bar, and various associations including the BCA began discussing an update to 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. The estimated saving to businesses across Alabama is in the millions of dollars.
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PROPOSED AMENDMENT TO SHIELD LOCAL BOARDS OF EDUCATION FROM UNFUNDED MANDATES DIES
The local boards of education unfunded mandate constitutional amendment, SB 67 by Sen. Dick Brewbaker, R-Pike Road, died on the House calendar without ever being brought up for a vote. The BCA-supported bill proposed a constitutional amendment that upon ratification would include local boards of education among the public entities that would not be subject to state mandates placed upon them per Amendment 621 of the Constitution of Alabama. To subject the local boards to unfunded mandates, the legislature would either have to provide funding or bypass the ban by a two-thirds vote of each house.
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GOVERNOR SIGNS PUBLIC JOBS TAX
EXEMPTION BILL
Governor Robert Bentley signed HB 419 sponsored by Rep. Paul DeMarco, R-Homewood, enacted as Act #2013-205. It requires the Department of Revenue to exempt licensed contractors and subcontractors from sales and use taxes for material used on a public project if the public agency is tax exempt.
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$50 MILLION BOND ISSUE FOR CAREER-TECHNICAL EDUCATION EQUIPMENT PASSES
HB 102 by Rep. Mac Buttram, R-Cullman, entitled the 21st Century Workforce Act, passed on the final legislative day. It authorizes the state to issue up to $50 million in bonds for career and technical education equipment for the local boards of education. The equipment will be used to upgrade local career and technical education programs in order to meet industry standards. Proceeds from the bonds will be distributed: 1) $10 million allocated pro rata on the basis of the number of CTE teacher units earned in the current school year; 2) $20 million allocated pro rata on the basis of the number of students in CTE programs in the current school year; and 3) $20 million provided to a five-member grant committee to be awarded to reimburse CTE programs for equipment purchases necessary to meet industry standards, as determined by needs assessments.
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ENVIRONMENTAL IMPACT BILLS
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The irrigation equipment tax credit update, SB 204 by Sen. Arthur Orr, R-Decatur, passed. It became Act #2013-66. The law updates the original irrigation bill passed last year. It allows the tax carry forward of the cost of irrigation equipment for five years from date of service. The new law reduces the size of a body of water that qualifies for a tax credit. This revision will open up farm land in portions of the Upper Tombigbee, Warrior and Coosa Rivers to irrigation. In addition, it allows a farmer to spread out the tax credit for irrigation equipment over five years. Language was added to describe how the tax credit is to be distributed among members of a partnership that owns a farm. The end result will be to encourage more irrigation withdrawals from major rivers.
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The General Fund Budget, SB 143 sponsored by Orr that Governor Robert Bentley signed into law as Act #2013-263, addressed two issues that were important to members of the BCA's Environmental and Energy Committee - sufficient funding for the Alabama Department of Environmental Management and a potential statewide water assessment program. BCA supports adequate funding for ADEM. The budget contained $1.008 million for ADEM, a decrease of $2.2 million from this fiscal year's appropriation. ADEM Director Lance LeFleur said he would have to seek permit fee increases to cover the lower appropriation. Another $380,000 was appropriated for Concentrated Animal Feeding Operations within ADEM.
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HB 181, by Rep. A.J. McCampbell, D-Gallion, became Act #2013-174. It reduces the dumping fee at the Emelle hazardous waste landfill in Sumter County from $21.60 a ton to $11. State hazardous waste fees could decrease unless hazardous waste tonnage increases. Everything remaining equal, hazardous waste receipts could decrease by $625,000 annually and local hazardous waste fee receipts for Sumter County could decrease an estimated $160,000 annually. In order to maintain current tax collections, an additional 115,000 tons of hazardous waste will have to be buried.
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The Drought Bill, SB 208 sponsored by Sen. Billy Beasley, D-Clayton, failed to pass, but will likely be part of the state agency working group policy recommendations scheduled to be released later this year. This legislation sought to codify the Alabama Drought Assessment and Planning Team process that has been in place through executive order for over a decade. The bill will also would have required the development of drought plans for water utilities and the State of Alabama. The House version, HB 382 by Rep. Mark Tuggle, R-Alexander City, didn't move from the House committee.
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The following three bills were incorrectly listed as "anti-business" in the previous version of this Capital Briefing. We regret the error.
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The Birmingham Water Board bill, SB 460 by Sen. Jabo Waggoner, R-Vestavia Hills, and its companion, HB 647 by Rep. Paul DeMarco, R-Homewood, would have applied to municipal water boards which serve water customers in two or more counties other than the one where the authorizing municipality is principally located. Board members would be limited to two, 6-year terms.
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The Wind Energy bill, HB 678 by Rep. Randy Davis, R-Daphne, was intended to provide for the effective and efficient use of wind energy conversion systems with the minimum regulation on the location, design, and installation of conversion systems while preserving the public health, safety, and welfare of neighboring property owners or occupants.
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The Alabama Environmental Management Commission bill, HB 49 by Rep. Jack Williams, R-Vestavia Hills would have altered the requirements for the well driller position on the AEMC and limit a commissioner's term to 12 years. This bill was favorably reported by a House committee but did not receive a third reading in the House.
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THE FOLLOWING ANTI-BUSINESS ENVIRONMENTAL LEGISLATION DIED THIS SESSION:
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The House Quarry Bill, HB 230 by Rep. Wayne Johnson, R-Ryland, would have limited new rock quarries in Madison County within five miles of an existing school. A Senate version, SB 457 by Sen. Shad McGill, R-Woodville, died in a Senate committee. McGill's bill would prohibit a new rock quarry, concrete plant or asphalt plant from being established within 2.5 miles of an existing school in unincorporated parts of Madison County.
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HB 374 by Rep. John Rogers, D-Birmingham, would have required expanded public notice of air permitting activities in Class 1 municipalities, such as Birmingham. More public notification would also be required in communities in which a Superfund site is located. The legislation proposed that the costs for this enhanced notification be paid by the industry applying for the permit. This legislation was troubling since the ADEM permitting process already allows for ample public involvement.
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The State Agency Water Management Plan Resolution, HJR 286 by Rep. Chad Fincher, R-Semmes, expresses support for the Alabama Water Agency Working Group and for the development of a comprehensive statewide water management plan. The resolution did recognize the need for further data collection - a position clearly taken by BCA. However, it also did not address that proposed funding for needed data collection would not be available until Fiscal year 2014 when the plan is expected to be delivered on December 1, 2013.
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The Shepherds Bend-Birmingham Water Supply Resolution, HJR 191 by Rep. Juandalynn Givan, D-Birmingham, and the Senate companion, SJR 79 by Sen. Rodger Smitherman, D-Birmingham, were drafted by the Coalition of Alabama Students for the Environment. The resolutions would have created a new 11-member commission responsible for securing the present and future health and economic prosperity of Greater Birmingham by assessing the quantity and quality of area drinking water supply sources. The resolutions also called for a minimum of 10 open public forums and a report to the governor and legislature prior to January 1, 2015. This was a clear effort by environmental activists to create another forum to attack Drummond Coal's Shepherds Bend mine and other industries in the Birmingham area.
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THANK YOU TO OUR TUESDAY MORNING LEGISLATIVE LEADERSHIP COMMITTEE
MEETING SPEAKERS
(2/5/13) Speaker Mike Hubbard - (2/12/13) Pro Tem Del Marsh
(2/19/13) Sen. Vivian Figures - (2/26/13) Rep. Mac McCutcheon
(3/8/13) Sen. Cam Ward - (3/8/13) Rep. Paul DeMarco
(4/2/13) Sen. Greg Reed - (4/2/13) Rep. Jim McClendon
(3/5/13) Sen. Jabo Waggnoner - (4/913) Sen. Trip Pittman
(4/16/13) Josh Blades - (4/16/13) Philip Bryan
(4/23/13) Rep. Ed Henry - (4/23/13) Rep. Jack Williams
(4/30/13) Blaine Galliher
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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 [email protected] |
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