As a reminder, the Business Council of Alabama's Government Affairs Committee will not meet this Tuesday morning due to spring break.

  

GOVERNOR BENTLEY SIGNS TAXPAYER'S BILL OF RIGHTS II

 

Governor Robert Bentley signed the Alabama Taxpayers Bill of Rights II into law on Wednesday as the Taxpayer's Fairness Act. Bentley, joined by legislative and business leaders including Business Council of Alabama board leadership, inked the bill in a ceremony in the Old House Chamber in the Capitol. 

 

"This separates tax adjudication from the tax collector," Bentley said. 

 

HB105 sponsored by Rep. Paul DeMarco, R-Homewood, and handled in the Senate by Sen. Bryan Taylor, R-Prattville, creates an Alabama Tax Tribunal headed by a tax judge independent of the Alabama Department of Revenue. Appeals of state and local taxes will be made to the tribunal, formerly an administrative law division within the DOR. 

 

Bentley's signature on HB105 is a significant step toward tax appeal fairness and a major boost to business, municipalities, and county governments. 

 

"Alabama taxpayers finally can claim victory with passage of TBOR II," said Business Council of Alabama President and CEO William J. Canary. "For years, the Business Council of Alabama has been working on behalf of Alabama taxpayers to pass this commonsense legislation that levels the playing field in the tax appeals process by separating the tax adjudicator from the tax collector." 

 

Passage of TBOR II, as it's called, was a long-time goal of the BCA. The act updates the original TBOR first passed in 1992. An independent tax appeals process was seen as a necessity for industrial recruitment because it provides evidence of fairness in tax appeals. 

 

"Although nobody ever questioned the integrity of the current administration, it has not always been that way," Taylor said. The act - No. 2014-146 - takes effect Oct. 1 but Bentley will appoint a tax tribunal judge on or prior to July 1.

ACCOUNTABILITY ACT IS BEING UPDATED TO EXPAND SCHOLARSHIP PARTICIPATION

 

The House on Wednesday approved a bill that would update the Alabama Accountability Act of 2013 by removing the current dollar limit on contributions to allow more participation in the scholarship program.

 

The House voted 63-39 on HB558 by Rep. Chad Fincher, R-Semmes, sending it to the Senate for consideration. The bill would update the 2013 law by removing the current $7,500 cap on tax credits for individual contributions to scholarship-granting organizations.

 

Fincher, sought to amend 3 portions of the bill in the hopes that more children could receive the scholarship sooner.

 

"We want to make sure year after year, we're providing as many opportunities as possible," Fincher said. He said moving the scholarship release back to May each year will allow families and school districts to plan.

 

The AAA authorized scholarship-granting organizations to raise a maximum of $25 million a year to pay for scholarships to students in families that earn up to 150 percent of the median family income, which is about $62,000 a year.

 

HB558 also would increase the types of businesses that could contribute to scholarship-granting organizations and allow the credit earned by the entity to pass through to and be claimed by its owners. The bill would amend the release date for unaccounted scholarship funds from Sept. 15 to May 15 of each year for students of non-failing schools.

 

AL.com reported Thursday that the scholarship granting organization that raised the most money last year under the Alabama Accountability Act is helping poor, minority families. The Alabama Opportunity Scholarship Fund has awarded 1,038 scholarships since passage of the law and has awarded 83 percent to minority students in families with an annual average income of $22,272.

 

Lesley Searcy, executive director of the Alabama Opportunity Scholarship Fund, said it raised $17.8 million last year. Searcy estimates that would award 3,500 to 5,000 scholarships. All 12 scholarship-granting organizations raised $24.7 million from 866 donors last year, al.com reported. About 90 private schools receive scholarships.

 

Rep. Terri Collins, R-Decatur, added an amendment to change the definition of a failing school. The AAA defines a failing school as one that has been in the bottom 6 percent on test scores three of the previous six years. Collins' amendment would change that to two of the last four years. She believes that the current look-back is too long and can inadvertently hurt schools making progress. The definition of failing schools will change yet again when a grading system being developed by the state Department of Education is in place in 2017.


The bill was been assigned to the Senate Fiscal Responsibility and Accountability Committee.

BCA BOARD OF DIRECTORS MEET, HOST GOVERNOR, LEGISLATORS

 

The Business Council of Alabama's board of directors met Wednesday and hosted Governor Robert Bentley and legislators at a packed reception following the business session at the Renaissance Montgomery Hotel & Spa.

 

BCA Chairman Fred McCallum, president of AT&T Alabama, conducted the meeting that included a report on ProgressPAC and its release of 2014 political endorsements, approval of the federal legislative agenda, a report on the Partnership with the Chamber of Commerce Association of Alabama, and a report by BCA President and CEO William J. Canary.

 

New Alabama Power Co. President and CEO Mark Crosswhite spoke to board members.

 

The two-hour reception was attended by Governor Bentley and legislators.

 

Reception sponsors were Alabama Power Co., Alabama Self-Insured Worker's Compensation Fund, Alabama Trucking Association, BlueCross BlueShield of Alabama, Drummond Company, Inc., Hoar Program Management, McWane, Inc., Regions Financial Corporation, 3M, Alabama Association of Health Plans, Boise Paper, Honda Manufacturing of Alabama, PowerSouth Energy Cooperative, Raytheon Company, Volkert, Inc., Alabama Society of CPAs, Alacare Home Health and Hospice, Chamber of Commerce of West Alabama, Greater Shelby County Chamber of Commerce, Cullman Economic Development Agency, Huntsville Utilities, Protective Life Corporation, Shoals Chamber of Commerce, State Farm Insurance Co., and Vulcan, Inc.

BILL TO RESTORE COUNTY/STATE FEE SPLIT ADVANCES

 

The House on Thursday passed HB568, sponsored by Rep. A.J. McCampbell, D-Gallion, on a vote of 97-1. The bill if it becomes law would restore the fee ratio from the Emelle hazardous waste landfill in Sumter County between the state General Fund and the county. The bill would split the fees between the county and the General Fund, with the first $400,000 in the state's portion earmarked for the Alabama Department of Environmental Management.

EDUCATION BUDGET GOES TO CONFERENCE COMMITTEE

 

House and Senate conferees on Thursday took up the Education Trust Fund budget for 2014-15. The budget would provide extra money to the Public Education Employees' Health Insurance Plan and fund an additional 150 middle school teachers but whether the final product will contain a pay raise or bonus is unknown.

 

The Senate-initiated Education Trust Fund budget, SB184 by Sen. Trip Pittman, R-Montrose, narrowly passed the House by a vote of 51-47 with 13 Republicans voting against it. The debate whether to give teachers a 2 percent pay raise and to fully fund health insurance continued to prove contentious. The House also had stripped the Senate's proposal of a one-time, 1 percent bonus to teachers.

 

The nationally recognized Pre-K program will receive an additional $10 million and the Career-Tech dual enrollment program will receive an additional $6 million, two programs that are supported by the Business Council of Alabama.

 

Rep. Bill Poole, R-Northport, chairman of the House Ways and Means Committee, said applying bonus money, $38 million, to health insurance will be a better use of funding because not only will it benefit education employees and retirees but it also won't be taxed as part of their pay.


House conferees were Poole, Rep. Mary Sue McClurkin, R-Indian Springs, and Rep. Rod Scott, D-Fairfield. Senate conferees were Sens. Pittman, Del Marsh, R-Anniston, and, Quinton Ross, D-Montgomery.

2014 ELECTION SEASON HANDICAPPED FOR BCA GOVERNMENTAL AFFAIRS COMMITTEE

 

A political science professor and pollster on Tuesday briefed Business Council of Alabama Governmental Affairs Committee members on the 2014 election cycle and major fiscal challenges facing the next governor and Legislature.

 

Dr. Thomas Vocino, executive director of the Center for Leadership and Public Policy at Alabama State University, and a retired political science professor at Auburn University Montgomery, discussed Governor Robert Bentley's second-term chances.

 

"I don't expect a great many surprises," Vocino said. "Governor Bentley is likely to win handily in his bid for reelection."

 

Governor Bentley has two opponents in the June 3 Republican primary, Stacy Lee George and Bob Starkey. Two Democrats seek the office, Kevin Bass, and former state Sen. Parker Griffith of Huntsville.

 

Vocino said the interesting race will be for the Sixth Congressional District in the Birmingham area to determine who succeeds 11-term U.S. Rep. Spencer Bachus, R-Vestavia Hills. He decided not to seek a 12th term.

 

Seven Republicans and one Democrat seek their party nominations in June for the privilege of being on the November general election ballot.

 

Vocino said the challenge for Democrats in November will be to reduce Republican legislative numbers and remove their supermajorities in both the House and Senate. "It's going to be hard because Republicans were in charge of redistricting," Vocino said.

 

He said many elections will be determined in the primaries where challengers and even Democrats seek to replace incumbent Republicans and in open seats where Republican incumbents chose not to seek reelection.

 

The new Legislature will take office the day after the Nov. 4 general election but the governor and other constitutional officers will take office in January.

 

Vocino said the governor and the Legislature's challenge will be to find money for General Fund agencies, particularly Medicaid and prisons. Medicaid has a constantly growing financial need and the overcrowded state prison system may be forced by a federal court to spend more money, particularly to eliminate sexual abuse claims at the Tutwiler women's prison.

 

"The challenge in 2015 will be the need to find more money for General Fund agencies," Vocino said. "We're heading for a train wreck if we can't do that."


Weekly BCA Governmental Affairs Committee meetings held during legislative sessions feature legislative and administration leaders, and observers, who discuss topics of interest for committee members and to receive updates on BCA activities. The committee will not meet March 25 during the Legislature's spring break.

PATENT TROLLING BILL SENT TO GOVERNOR  

 

The House on March 13 passed the patent trolling bill, which is supported by the Business Council of Alabama. SB121 sponsored by Sen. Arthur Orr, R-Decatur, previously passed the Senate 20-1. Because the House substituted and amended the bill, it returned to the Senate for consideration. The House version was amended to allow legitimate patent infringement claims and the Senate concurred on Tuesday, sending it to Governor Robert Bentley.

 

SB121 would make it a crime for anyone to assert a claim of patent infringement in bad faith and would authorize the attorney general to investigate claims and to file enforcement actions.

 

The patent-litigation, or patent-trolling, industry, removes significant finances from businesses that often cannot afford to fight a massive legal attack. The patent-trolling industry buys up or acquires broad patents not to use the technology but to extract licensing fees from companies that might accidentally infringe on the patent.

 

Patent litigation has become a significant issue not only to the BCA but also to the Alabama Bankers Association and the Alabama Grocers Association. "We should be doing everything we can to stifle the patent-troll business model and protect American businesses from expensive and meritless legal distractions," according to a position paper by the presidents of three organizations.

 

A Boston University study showed that the direct cost to the system in 2011 was $29 billion.

PERSONAL PROPERTY TAX RULE CHANGE ON SENATE CALENDAR 

 

HB108 passed the House of Representatives, 99-0, and the Senate Job Creation and Economic Development Committee favorably reported the bill 7-0. HB108 sponsored by Rep. Greg Wren, R-Montgomery, would provide an optional, non-itemized short form for filing a business personal property tax return for taxpayers whose original acquisition costs were less than $10,000 prior to Oct. 1.

 

It also would develop, maintain, and administer an online business personal property tax filing system prior to Sept. 30, 2016, that would allow taxpayers to electronically file business personal property tax returns with any county assessing official or applicable agency at no charge to the taxpayer or the local tax jurisdiction.

 

In addition, the bill would require the taxpayer to first file an itemized business personal property tax return before filing a short form tax return, according to the bill. The tax liability for any taxpayer using the short form return will be calculated at $10,000, which could increase business personal property tax receipts to the state and local governments by a small, undetermined amount dependent upon the actual acquisition costs of those taxpayers using the short form.


The act would establish a 10-member State and Local Advisory Committee to review the design and operation of the system and to make recommendations regarding system requirements and functionality.

RULE WITHDRAWAL BILL ADVANCES

 

HB30 by Victor Gaston, R-Mobile, passed the House 89-0 on Jan. 23. The Senate Governmental Affairs Committee, on a 6-0 voice vote, favorably reported the bill on Tuesday, and it went to the regular Senate calendar. Under existing law, the Alabama Administrative Procedure Act requires the Joint Committee on Administrative Regulation Review to meet and approve a state agency's request to withdraw a proposed or certified rule change. HB30 would streamline the process by allowing an agency to withdraw a proposed or certified rule without requiring the joint committee to act on the request.

HOUSE SENDS LEGISLATIVE ADMINISTRATION REORGANIZATION BILL TO CONFERENCE

 

The House on Thursday voting 64-30 approved SB11, the legislative administration reorganization bill by Sen. Jimmy Holley, R-Elba. The Senate non-concurred 29-0 and had appointed conference committee members but then reconsidered and kept the bill in the status of carried over.

 

SB11 would reduce the size of the joint House-Senate Legislative Council from 32 members to 20 members - 10 from each chamber - and replace three standing legislative committees with the new, 20-member Legislative Council. The Legislative Council would include members of the House Legislative Council and the Senate Legislative Council. Its duties would include overseeing House and Senate operations, setting employee pay, and overseeing legislative general administrative services.

 

"It puts more authority in the operation of the Legislature back into the hands of you who answer to voters, instead of staff," said Othni Lathram, director of the Alabama Law Institute, who explained the substitute in the House committee. Lathram said consolidation of several legislative administrative functions could result in savings, but not immediately. Because no new positions are to be created, the reorganization shouldn't increase costs, he said.

LICENSURE FREEDOM BILL PASSES

 

SB22 by Sen. Phil Williams, R-Rainbow City, passed the House 70-14 on Thursday and was sent to Governor Robert Bentley for consideration. The Senate passed the bill 23-8 on Feb. 13. The bill called the Licensure Freedom Act would prohibit the granting of any health care provider's license on the condition of participating in any type of public or private health insurance plan, public health care system, initiative or emergency room coverage.

SMALL BUSINESS TAX RELIEF BILL GOES TO GOVERNOR

 

The Senate on Thursday voting 23-2 gave final passage to HB151 by Rep. Barry Moore, R-Enterprise. HB151, the Small Business Tax Relief Act of 2014, goes to Governor Robert Bentley for consideration.

 

HB151 would raise the average monthly tax liability threshold, from $1,000 to $2,500, for businesses that make advance estimated sales tax payments. By increasing the threshold, an estimated 3,900 businesses would be relieved from making estimated payments, allowing them to redirect those resources to other areas of their businesses.

 

The Senate Finance and Taxation Education Committee had amended the bill in order to delay its implementation until Oct. 1, because lawmakers were concerned that the deferment of the estimated $4.5 million in sales tax receipts would strain the FY2015 Education Trust Fund budget.

 

Sen. Bryan Taylor, who sponsored the Senate version, SB46, motioned to table the amendment on the Senate floor because lawmakers had concluded that the FY2015 ETF budget would remain unaffected by the delayed revenue. If approved, the bill will take effect on Aug. 1.

 

"I want to thank the members of the Senate body for giving immediate tax relief to small businesses," said Sen. Taylor after the vote passed.

 

BCA applauds both chambers for passing the Small Business Tax Relief Act and reducing more red tape on small businesses across the state.

 
The House passed HB151 on a vote of 96-2.
ENVIRONMENTAL IMPACT BILLS

Led by Sen. Cam Ward, R-Alabaster, the Senate on Wednesday voted 26-0 to pass SB355, which was sponsored by Ward. With this action, the Senate made a clear statement in support of businesses and the regulated community to stand up against regulatory overreach from the Environmental Protection Agency and against excessive and duplicative environmental regulations.

 

"Sen. Ward deserves credit for guiding this important bill that protects against government overreach through the Senate," BCA President and CEO William J. Canary said. "It is clear that Alabama is fully capable of administering its stormwater rules." 

 

After passage in the Senate, SB355 received a favorable report from the House Commerce and Small Business Committee. The House effort is being led by Rep. Jim Carns, R-Birmingham. SB355 is in a position to be considered by the full House when it returns from spring break on April 1.

 

SB355 would amend Alabama's stormwater law (11-89c) to expand the current stormwater act to cover the entire state and not just Jefferson and Shelby counties and their respective cities. It was developed through a collaborative effort of municipalities, counties, and the business community in response to an ever-expanding and onerous EPA stormwater program. The primary intent of this legislation is to push back against the EPA and prohibit the EPA from mandating onerous requirements on the state unless the EPA undertakes the appropriate rulemaking process.

 

In addition, as of now, only Jefferson and Shelby counties and their municipalities have been specifically delegated the authority to carry out the MS4 stormwater program. This legislation would fix the issue and as agreed to by businesses and municipalities, this legislation also would address the funding mechanism as well as what municipalities are required to do under the stormwater program.


This legislation is truly unique in that it was developed in a collaborative effort between local governments, the business community and the Alabama Department of Environmental Management. It fends off EPA overreach, and provides a workable solution for the local governments to carry out this federal unfunded mandate while addressing multiple business concerns and meeting Clean Water Act requirements. This legislation goes a long way in remedying many of the issues that both the business community and the MS4s have with this program in its current state. This legislation has a broad range of support from business interests to local units of governments and many others. 


The BCA actively supports this legislation.

SB344 by Sen. Jabo Waggoner, R-Vestavia Hills, passed the Senate 20-9 on March 11 and was favorably reported by the House Judiciary Committee on Tuesday. The legislation would expand the Birmingham Water Works Board to include three non-Birmingham members. Waggoner said the bill maintains a Birmingham majority on the board. The bill is on the regular Senate calendar.

 

The legislation also would: 1) limit the term of all board members to two, four-year terms (except the board member appointed from the surrounding counties, which would be on a rotating, one-year term); 2) limit the compensation and expense allowance of board members; 3) specify that board members would be subject to the State Ethics Law; 4) provide for notice and a public hearing prior to the board adopting any rate increase; 5) provide that the board is subject to the Open Meetings Act; 6) expand the board by adding two additional members; and, 7) provide that one of the existing board members be appointed by the Jefferson County association of mayors.

Rep. Mary Sue McClurkin, R-Indian Springs, on Tuesday introduced HB610, the Safe Dams legislation. It was referred to the House Commerce and Small Business Committee. The bill if it becomes law would establish a comprehensive dam safety regulatory program within the Office of Water Resources. It should be noted that the OWR said it was not involved in the drafting or introduction of the legislation.

The Senate on Thursday voting 30-2 passed a substituted and amended 2014-15 General Fund budget, HB235 sponsored by Rep. Steve Clouse, R-Ozark. Since the Senate version differs from the version passed 80-20 by the House, the bill must return to the House for consideration.

 

There are two areas in the budget that have been of particular interest for the Environmental and Energy Committee: funding for ADEM and the potential statewide water assessment program. ADEM received a general fund appropriation of $1.2 million. 

 

In the area of water resources, BCA has supported agencies collecting the appropriate data needed to assist the state in making informed decisions regarding water policy in Alabama. The budget includes a $1 million appropriation to the Geological Survey of Alabama to be spent in coordination with the Office of Water Resources. These funds are to be used to support the state water assessment program.  Unfortunately, this week the Senate reduced the funding for the water wars litigation by $300,000.

The wind energy bill sponsored by Sen. Phil Williams, R-Rainbow City, is on the House calendar ready for consideration when the Legislature returns April 1 for the final three days of the 2014 regular legislative session. The Senate had passed SB12 on a vote of 24-6 and it was assigned to the House Commerce and Small Business Committee. The committee favorably reported the bill and it was placed on the House calendar on Wednesday.

 

SB12 would require the regulation wind energy conversion systems as well as create a mechanism for the removal of abandoned systems. The bill was introduced in both the Senate and the House. Rep. Becky Nordgren, R-Gadsden, sponsored HB106.

YOUR BCA ADVOCACY TEAM
Dana Beyerle
Manager of Communications
 danab@bcatoday.org
334.240.8768
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
Leah Garner
Director of Governmental
Affairs and Advocacy

  leahg@bcatoday.org
334.240.8726
Drew Harrell
Executive Assistant and Strategic Operations Coordinator
 drewh@bcatoday.org
334.240.8727
Nancy Wall Hewston
Vice President for
Communications, Strategic Information and
Federal Affairs
 nancyh@bcatoday.org
334.240.8725
Nathan Lindsay
Director of
Political Affairs and
Regional Operations
 nathanl@bcatoday.org
334.240.8766
Victor Vernon
Vice President for
Public Policy  
 victorv@bcatoday.org
334.240.8722
Joshua Vaughn
Manager of Visual
Communications and
Strategic Information
 joshv@bcatody.org 
334.240.8740

Pam Ware
Manager of Intergovernmental Affairs, and Advocacy
pamw@bcatoday.org
334.240.8719


For more information on the Business Council of Alabama
contact Elaine Fincannon at elainef@bcatoday.org
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