2014 LEGISLATIVE SESSION PRODUCED SIGNIFICANT PRO-BUSINESS RESULTS

 

The Business Council of Alabama today praised the Alabama House and Senate for passing significant pro-business bills and making the 2014 regular legislative session that ended Thursday one of the most productive in the BCA's 29-year history. 

 

"If the legislative session is like a glass half full or half empty, our glass is nearly filled to the brim with the approval of important measures sought on behalf of the state's businesses," BCA President and CEO William J. Canary said. "That nearly full glass is the appropriate vessel to hoist and toast all the efforts put in by our volunteer leadership, our members, our advocates, House and Senate members, and the BCA staff." 

 

The height of the session occurred March 19 when BCA leadership joined Governor Robert Bentley who ceremoniously signed HB105, the Taxpayers Bill of Rights II, into law as the Taxpayer Fairness Act. It became Act 2014-146 and takes effect Oct. 1. Passage of TBOR II and its presentation to Bentley for his signature moves TBOR II from the unfinished to the finished column. 

 

Governor Bentley early on said he would sign TBOR II into law. "His early support helped moved the bill and for that he deserves credit and our heartfelt thanks," Canary said. 

 

"TBOR II is not only about tax appeal fairness but it's also an economic development tool that shows industrial prospects that Alabama's tax fairness model is second to none," Canary said. 

 

The 2014 legislative session began Jan. 14 and ended Thursday, more than a month earlier than previous sessions due to a speeded-up meeting schedule. Other important pro-business legislation that passed included several boosts to education, small-business tax relief, neutrality in government construction contracts, income tax credits for dual-enrollment students, and a workforce council.

PATENT TROLLING BILL BECOMES LAW

 

Governor Bentley signed SB121, the Patent Trolling bill sponsored by Sen. Arthur Orr, R-Decatur, into law on Tuesday as Act 2014-218. The House on March 13 passed the patent trolling bill, which previously passed the Senate 20-1.

 

Act 2014-218 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 file enforcement actions. Rep. Phil Williams, R-Monrovia, who handled the bill in the House, said patent trolling attorneys file lawsuits in attempts to "shake down" inadvertent patent infringements.

 

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

 

The Business Council of Alabama supported this legislation.

TAX COLLECTION RELIEF BILL PASSES

 

HB97 sponsored by Rep. Jim Patterson, R-Meridianville, passed the Senate 25-1 on Tuesday and was sent to Governor Bentley. If he signs the legislation, it will authorize the Alabama Department of Revenue to administratively suspend collection of a tax or fee if the cost of collecting the tax is greater than the amount to be collected. The ADOR said that some antiquated taxes and fees cost more to collect than any amount that would be collected. 

 

The BCA supported this legislation.

BUSINESS PERSONAL PROPERTY TAX LEGISLATION, RELATED ONLINE TAX FILING LEGISLATION PASS

 

HB108, which received final passage on Thursday, will create an online electronic filing system allowing businesses to file annual business personal property tax returns at no charge to the taxpayer or to the taxing jurisdiction. The Senate passed the bill 29-0 on Thursday but amended it. The House voted 97-0 to approve the Senate-amended bill and sent it to Governor Bentley for consideration.

 

Business will get optional, non-itemized short forms for filing a business personal property tax return if their original acquisition costs were less than $10,000 prior to Oct. 1. The Department of Revenue will develop, maintain, and administer an online business personal property tax filing system before Sept. 30, 2016, allowing 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.

 

The Senate amendment will allow a third party, such as a CPA, authorized by the taxpayer to file a business personal property tax return on behalf of the taxpayer.


The BCA supported HB108.

PROMPT PAYMENT BILL PASSES

 

The House on Thursday voting 97-1 gave final passage to the Senate-amended HB24 sponsored by Rep. Bill Roberts, R-Jasper. The bill previously passed the Senate 27-1. The bill, which goes to Governor Bentley for consideration, would require public agencies to pay contractors working on public jobs within 35 days after the contracting agency approves payment. The current payment deadline is 45 days. HB24 would set time limits for reviewing contracts in excess of $50,000 and paying invoices once they're received by the contracting public agency. There are exclusions including the Department of Transportation, the University of Alabama, Auburn University, professionals such as architects who do not provide construction-related services, and for public health and safety reasons. 

 

The BCA supported the prompt-pay bill.

LEGISLATURE SENDS GOVERNOR EDUCATION BUDGET THAT RETAINS FUNDING INCREASE FOR 1ST CLASS PRE-K, ADDS FUNDING FOR PEEHIP


Following the Senate's passage of the FY 2015 Education Trust Fund budget on Tuesday by a tight margin of 18-16, the Alabama House on Thursday quickly passed the conference committee's version of the $5.931 billion spending plan, 54-45. The total amount appropriated in the budget is equal to the total passed by the House, while it totals $15.7 million less than the amount passed by the Senate. It totals some $60 million less than the amount recommended by Governor Bentley in January.

  

SB184 sponsored by Sen. Trip Pittman, R-Montrose, contains no pay increase for educators despite Governor Bentley's urging. If the governor does not sign the budget into law, his alternative is to pocket veto the budget, which would require a costly special session and would not guarantee a pay increase for educators.

  

The clear top priority for the conferees was to ensure that education personnel would not be forced to pay more out-of-pocket for their PEEHIP health insurance premiums. The upcoming spending plan also will add an estimated 70 additional teachers in the middle-school grades to lower the pupil-teacher ratio in these grades where academic achievement tends to wane.

  

Alabama's 1st Class Pre-K program received an increase in funding of $10 million, as supporters fended off efforts to trim funding for other purposes. That increase will provide for an expansion next year of 100 additional Pre-K classrooms that can educate an estimated 1,950 additional preschoolers.

  

The following table compares ETF funding for selected educational agencies and programs (in millions $):

  

 
Budget



FY 2014
Senate
Pass


FY 2015
House
Pass 

  

FY 2015
As Passed
Legislature
 
  
FY 2015
Dept. of Children's Affairs     
Office of School Readiness - 1st Class Pre-K 28.538.538.5 38.5 
Dept. of Commerce - Operations
& Main 
4.7 4.7 4.7 4.7 
AIDT 5.5 6.446.44 6.44 
Workforce Development -
career center & Existing training
commitments 
41.441.941.941.9 
K-12 Found. Prog. (Includes 
1% bonus in Senate Pass)
3732.33783.43813 3816.3 
Transportation Program304.3308312.9315.8
Two-Year College System
(Total)
 
324331.8333.7333.65
Adult education 13.412.412.412.4
Workforce Development 2.52.92.92.9
AL Technology Network (ATN) 4.6 4.6 4.6 4.6 
Dual Enrollment----465
AL Dept. of Education 186.9181188.3185
AMSTI - Math, Science
Tech Initiative 
28 30.52929
AL Reading Initiative 48.1 48.1 48.1 48.2 
Distance Learning 18.5 18.5 18.5618.56
Advanced Placement 3.774.274,274.27
Liability Insurance 532.252.25
Career Tech Initiative 2.3 3.263.263.26
Colleges and Universities
(Total)
 
102510141038.1 1035.1
Alabama Innovation Fund 3.41076
Repayment to ETF
Rainy Day Account 
295.46227.635
Treasury - PACT Payment---- 23.623.623.6

SMALL BUSINESS TAX RELIEF BILL GOES TO GOVERNOR 

 

The House on Tuesday approved the Senate amendment to HB151 by Rep. Barry Moore, R-Enterprise, the Small Business Tax Relief Act of 2014. The bill goes to Governor Robert Bentley for consideration.

 

HB151 would raise the average monthly tax liability threshold, from $1,000 to $2,500, for businesses to 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.

 

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 had passed HB151 on a vote of 96-2.

LICENSURE FREEDOM BILL SIGNED BY GOVERNOR

 

Governor Bentley on Wednesday signed SB22 into law as Act 2014-273. The law, which takes effect July 1, prohibits the conditioning of licensing certain health care providers on their participation or non-participation in health insurance plans or other activities. The bill by Sen. Phil Williams, R-Rainbow City, affects physicians, chiropractors, optometrists, and dentists and allows their professional licensing to be granted solely on their demonstrated skill and academic competence, not their acceptance of any health insurance plan such as the Affordale Care Act, or other public or private health insurance plan, public health care system, public service initiative, or emergency room coverage.

ALABAMA ACCOUNTABILITY ACT UPDATE DIES IN SENATE

 

The Senate Fiscal Responsibility and Accountability Committee on Tuesday favorably approved a bill that amends the 2013 Accountability Act, which authorized scholarship donations, but the bill died in the Senate on the last day of the session. HB558 sponsored by Rep. Chad Fincher, R-Semmes, would have eliminated the $7,500 annual income tax credit limit for contributions made by individual taxpayers to approved Scholarship Granting Organizations, allowed an Alabama S corporation or Subchapter K entity to contribute to SGOs, allowed the credit to pass through to their owners, and revised the definition of a failing school eligible to receive scholarships, according to the Legislative Fiscal Office.

 
The ACA of 2013 authorized flexibility contracts between the state school board and local school districts, created tax credits for families with students in chronically failing schools to attend a non-public school or a non-failing public school, and created tax credits for donations to nonprofit Scholarship Granting Organizations. 

SENATOR THANKS BCA COMMITTEE MEMBERS FOR TBOR II PASSAGE

 

Speaking at the final Business Council of Alabama Governmental Affairs Committee weekly briefing of the 2014 regular legislative session, state Senator Roger Bedford, D-Russellville, thanked committee members for successful passage of Taxpayers Bill of Rights II legislation and for blocking efforts to repeal Common Core education standards.

 

Bedford, speaking Tuesday, said although the session has been productive, there is "a lot of unfinished business to do," including final passage of both budgets.

 

Hard work by BCA Governmental Affairs Committee members helped pass TBOR II, which creates a Tax Appeals Tribunal independent of the Alabama Department of Revenue. "Congratulations on finally, finally getting TBOR done, it's long overdue," Bedford said. "It's odd that the state says you owe taxes and you appeal it to the same people who say you owe it."

 

Bedford  also thanked committee members for helping kill attempts to repeal Alabama College and Career-Ready Standards, or Common Core, that were adopted by the State Board of Education in 2010 and adapted to reflect Alabama standards. The BCA helped lead the charge to defeat legislation allowing Alabama schools to withdraw from Common Core principles.

 

"Thank you for being advocates, thank you for being involved, thank you for making a difference out there," Bedford said. "We depend on y'all to give us accurate information. You're an important part that makes Alabama work."

 

Bedford noted that another BCA endeavor, Career-Technical education, is "making a difference out there." He said that students should be exposed to post-high school job opportunities and should begin receiving training for those jobs or more technical education to create job skills. 

 

Bedford was first elected to the state Senate in 1982. An attorney and small businessman, he owns a lumber company that employs 30 people and a trucking company.

LEGISLATURE PASSES IMPORTANT STORMWATER REGULATION BILL

SB355, the stormwater rules bill, sponsored by Sen. Cam Ward, R-Alabaster, received final passage in the House, 74-23, on Thursday. The bill made a statement in support of businesses and the regulated community against regulatory overreach from the Environmental Protection Agency and duplicative environmental regulations. Rep. Jim Carns, R-Birmingham, led the discussion in the House. Ward's bill previously passed the Senate 26-0.

 

The BCA actively supported this legislation.

 

SB355 would amend and expand Alabama's stormwater law 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 correct 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.

 

A related bill, SB344 by Sen. Jabo Waggoner, R-Vestavia Hills, did not make it to the House floor for consideration.

DROUGHT BILL CLEARS LEGISLATURE

HB49 by Alan Boothe, R-Troy, passed the Senate 25-0 in amended form and was approved 101-0 by the House on Thursday. HB49 codifies the establishment of the Alabama Drought Assessment and Planning Team that was created by Governor Bentley's June 24, 2011, Executive Order. It would establish a Monitoring and Impacts Group Subcommittee, codify the charge given to the Alabama Office of Water Resources, which is a division of the Alabama Department of Economic and Community Affairs, with the responsibility of developing a State Drought Plan and periodically issuing drought declarations. The bill reaffirms the governor's ability to respond to extreme drought conditions under the powers provided under the Alabama Emergency Management Act of 1955, and allows the Office of Water Resources to promulgate rules.  

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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