HB 120 by sponsored by Rep. Randy Davis, R-Daphne, cleared the full House 60-0 on Tuesday and moved to the Senate where it was given a favorable report by the Senate Transportation and Energy Committee on Thursday. The companion bill, SB 52 by Sen. Cam Ward, R-Alabaster, had passed the Senate prior to spring break and has been assigned to the House Transportation, Utilities and Infrastructure Committee.

These bills, each known as the Energy Security Act, are needed due to a new regulation by the Federal Energy Regulatory Commission, which essentially shifts the jurisdiction of planning, design, and development of new transmission projects from the state to the federal government.

More information can be found in the previous Capital Briefing.

SB 295 sponsored by Sen. Paul Bussman, R-Cullman, and HB 404 sponsored by Rep. Anthony Daniels, D-Huntsville, would prohibit a private insurer and employer-sponsored benefit plans they administer from including cost of services in a quality rating system. HB 404 had 20 co-sponsors, including 13 Republicans. 

SB 296 sponsored by Bussman and HB 397 sponsored by Daniels would prohibit a private insurer from being able to set costs of non-covered services of a dental provider for its contracts with those providers.  

SB 270 sponsored by Sen. Slade Blackwell, R-Birmingham, would prohibit a private insurer from being able to establish costs of non-covered services in an employer's benefit program by a vision provider.

HB 271 sponsored by Rep. Ed Henry, R-Hartselle, and SB 88 sponsored by Sen. Gerald Dial, R-Lineville, would restrict the terms and conditions of how a private insurer reimburses a health care provider for services.

Sen. Cam Ward, R-Alabaster, argued for passage of his prison reform bill, SB 67, on the Senate floor for much of Thursday. After accepting 14 amendments, Ward successfully moved the Senate to pass the bill, which it did, 31-2.

Ward said his bill would reduce the state prison system's capacity from about 190 percent to the 160 percent range in five years. If it becomes law, penalties for some minor crimes would be reduced and greater supervision of inmates would occur. It also would create a Class D felony, a new category, for some nonviolent property and drug offenses.

Prison reform is of vital interest to Alabama as the real threat of a federal takeover of prisons would result in more than $400 million of new taxes to build additional prison capacity.

BCA President and CEO William J. Canary had outlined the bill's impact on business in op-ed pieces that were printed in several Alabama newspapers.

For more information on the Prison Reform legislation, see this previous Capital Briefing.

Episode 4: Justice Reform in Alabama 2 Billy Canary, president and CEO of the Business Council of Alabama, follows up with Andrew Barbee from the Council of State Governments Justice Center and State Senator Cam Ward of Alabaster about Justice reform in Alabama and specifically "Project Justice Reinvestment."

Episode 1: Justice Reform in Alabama A discussion with Sen. Cam Ward and Andrew Barbee from the Council of State Government's Justice Center about the current state of Alabama's prison system. This episode is the first in a continuing series on this topic.

HB 232 sponsored by Rep. Jack "J.D." Williams, R-Vestavia Hills, would increase the eligible amount-in-controversy in small claims court from $3,000 to $6,000. The House passed the bill 54-39 on Tuesday and it was assigned to the Senate Judiciary Committee.

HB 54 sponsored by Rep. Bill Poole, R-Northport, passed the House 95-0 on Tuesday. It would allow LLCs formed under another state's law but operating in Alabama to govern their internal affairs by the laws of the state of formation; it would also clarify liability issues for wrongful distributions by LLC members. This bill, supported by the Alabama Law Institute, was assigned to the Senate Fiscal Responsibility and Economic Development Committee.

On March 11, SB 106 by Sen. Arthur Orr, R-Decatur, was briefly discussed in the Senate Judiciary Committee before being carried over. Since that time, many members of the business community have expressed concerns with a provision in the legislation that would require specified entities, mainly businesses but also government entities and third-party agents, to notify the Attorney General and the individual owners of personal information if a data breach occurs.

Sen. Orr has included a number of recommended changes in subsequent drafts of the legislation, and this week an updated substitute bill was circulated which can be viewed here.

Episode 8: Network Security for Small Businesses Billy Canary, president and CEO of the Business Council of Alabama, speaks with Ron Perkins, the Vice President of Doozer Software about the challenges small business face in securing their networks and some simple steps they can take to accomplish it.

The Business Council of Alabama has joined 25 other trade associations that are a cross-section of Alabama businesses in stating opposition to a mandatory unitary combined income reporting bill that is sponsored by Rep. Mike Hill, R-Columbiana.

Hill sponsored HB 142 on behalf of Governor Robert Bentley is part of Bentley's proposed $541 million tax increase this legislative session.

A letter from the Business Associations' Tax Coalition and signed by the BCA was sent to House Speaker Mike Hubbard, R-Auburn. The BATC letter was signed by 26 business and trade associations representing every major business classification in Alabama.

The BCA is a founding member of the BATC. "Many BATC members have long-standing positions in opposition to unitary combined reporting for basic and obvious reasons," the BATC letter said.

Combined income reporting would hinder economic development, would create confusion rather than consistency in the tax code, and would be costly for business and the state.

Two of three bills in a package of economic incentives that are supported by the Business Council of Alabama have been sent to Governor Robert Bentley for consideration.

The House and Senate previously approved HB 58, the Alabama Jobs Act sponsored by Rep. Alan Baker, R-Brewton, in different versions, sending the bill to a conference committee. The House concurred 101-0 and the Senate followed suit 31-0 on Thursday and sent the bill to Bentley.

HB 58 would allow qualifying companies to receive tax benefits for new jobs and new capital investment. Qualifying companies could receive an annual tax rebate equal to 3 percent of the payroll for new jobs and a tax credit of 1.5 percent of capital investment for up to 10 years. To qualify a company would have to create at least 50 new jobs.

HB 57 sponsored by Rep. Elaine Beech, D-Chatom, passed the House 102-1 on March 10, was favorably reported by the Fiscal Responsibility and Economic Development Committee, and passed the Senate in substituted form 30-0 on Thursday. Since the Senate passed a substitute, the bill must return to the House for consideration.

Her bill would establish the Alabama Veterans and Rural Jobs Act and provide enhanced incentives under provisions of HB 58 to companies in rural counties that employ veterans. The bill also would create the Accelerate Rural Alabama Fund to be used to provide site preparation money in rural areas.

House Ways and Means Education Committee Chairman Rep. Bill Poole, R-Northport, sponsored HB 322 and conducted a hearing on his bill this week. The bill adds to the future amounts of funding support that the Legislature has already committed to fund for the Prepaid Affordable College Tuition (PACT) Program cap.

Poole's bill also would shift excess revenue that would have been deposited into the ETF Budget Stabilization Fund instead to be deposited into the ETF Capital Fund for supplemental appropriations for non-recurring capital outlay purposes.

Sen. Trip Pittman, R-Daphne, chairman of the Senate Committee on Finance and Taxation Education Committee, sponsored SB 248.

The House Technology and Research Committee favorably reported a bill that would provide tax credits for qualifying research conducted in Alabama.

The Alabama Innovation Act, HB 304 sponsored by Rep. Phil Williams, R-Monrovia, could help recruit technology and knowledge-based jobs to Alabama by offering tax credits to businesses that directly incur qualified research expenses or pay Alabama research entities to conduct qualified research for new or improved products or services.

The bill would authorize a 25 percent credit on research expenses incurred by an Alabama research entity, such as a state university or research institute that meets certain criteria. The credit would be capped at $2 million per individual.

A 5 percent tax credit could be taken on research costs incurred by the company itself. This tax credit could be applied to either a company's income tax liability or its financial institution excise tax liability and any unused credits could be carried forward up to 5 years.

If HB 304 becomes law it would not take effect until 2017.

SB 111 by Sen. Arthur Orr, R-Decatur, would establish a Transportation Infrastructure Bank funded by a portion of existing gasoline tax revenues and vehicle registration fees. It would have the authority to issue bonds and provide loans or other financial assistance to government entities for certain qualified infrastructure projects.

The Senate amended it and passed it 29-0, sending it to the House where it was assigned to the House Ways and Means General Fund Committee. The committee gave the bill a favorable report on March 19 and it was placed on the House calendar.