NEXT TUESDAY MORNING BRIEFING


April 14, 2015 - 8:30 a.m. - The Business Center of Alabama
2 North Jackson St. Montgomery, AL 36104



Sen. Quinton Ross, D-Montgomery
Senate Minority Leader

BCA DEFENDS COLLEGE AND CAREER-READY STANDARDS, LAWSUIT LENDING REGULATIONS ADVANCE, JOB-CREDIT PACKAGE REACHES FINAL PASSAGE, BCA COMMENTS ON DEPARTMENT OF REVENUE OVEREACH

 

The fifth week of the 2015 regular legislative session saw the Business Council of Alabama strongly defend student-performance standards, passage of the third bill in an important industrial incentive package, and committee approval of lawsuit lending bills that are important to the business community.

 

On Tuesday, the BCA's Governmental Affairs Committee speaker hinted that Governor Robert Bentley's proposed $541 million tax package may not make it. Senate Majority Leader Greg Reed told committee members that he does not see a lot of support for Bentley's proposed tax package.

 

BCA's Two Minute Tuesday with Sen. Greg Reed, R-Jasper 

 

On Wednesday, Business Council of Alabama President and CEO William J. Canary urged the Senate Education and Youth Affairs Committee to reject the latest attempt to repeal the Alabama College and Career-Ready Standards.

 

The same day, committees advanced lawsuit-lending regulation bills and the BCA advised the Alabama Department of Revenue not to overreach its authority.

 

The following are this week's legislative actions on issues important to the BCA and found in the 2015 State Legislative Agenda.

EDUCATION/WORKFORCE PREPAREDNESS

BCA President and CEO William J. Canary Urges Defeat of Harmful Legislation

 

Canary on Wednesday asked the Senate Education and Youth Affairs Committee to defeat SB 101 that would repeal the Alabama College and Career-Ready Standards and force the state to revert to math and English standards of the 1990s. The BCA supports the standards as crucial to Alabama's educational advancement because they enable students to compete with their national and international counterparts.

 

"The standards are benchmarks of proficiency in mathematics and English language arts that will better prepare Alabama students for success after graduation," Canary said.

 

At a two-hour public hearing, Canary spoke in opposition to SB 101 that is sponsored by Sen. Rusty Glover, R-Semmes.

 

Business Education Alliance Chairman and President Dr. Joe Morton, who served as Alabama Superintendent of Education when the standards were originally adopted in 2010, also defended the standards. He said that the development of these standards was driven by Alabamians, not the federal government. 

 

The committee is expected to vote Wednesday.

 

When it comes to education, the BCA has a long history of supporting policies that put students first and will prepare them to enter college or the workforce.

 

Support for Alabama's standards is broad and far-reaching.  To date, nearly 50 different groups representing everyone from businesses, to parents, to teachers, the military and more have signed on through Alabama GRIT to advocate for these high standards.

 

Read more on the BCA Blog.

 

BCA members are urged to contact members of the Senate Education and Youth Affairs Committee and ask that they oppose SB 101 which would lower expectations for Alabama students and usurp the authority of the Alabama State Board of Education.

 



Use BCA Connect to immediately communicate with a legislator. BCA Connect includes complete listings of the House and Senate members, and catalogs all committees and their membership conveniently on your iPhone or iPad.

Senate President Pro Tem Says Bill Would Preserve Private School Scholarships

 

Senate President Pro Tem Del Marsh told a House committee that some students who now receive private school scholarships could lose them unless his bill that would adjust the program is passed.

 

Marsh, R-Anniston, told the House Ways and Means Education Committee that a lawsuit over the 2013 Alabama Accountability Act is making people reluctant to donate, the Associated Press reported. The committee did not vote.

 

Donations to scholarship-granting organizations are eligible for state income tax credits subject to a cumulative cap. Marsh's bill, SB 71, would increase the cumulative cap from $25 million to $30 million and allow some retroactive donations.


Public school students who attend schools designated as failing have scholarship priority but other families can apply if they meet income restrictions.

Senate Committee Version of Education Budget Reported to Full Senate

 

The Senate Finance and Taxation Education Committee this week reported a substitute version of the FY 2016 education budget that appropriates a total of nearly $6 billion, $5 million less than the total recommended by Governor Robert Bentley but $59 million more than the total budgeted for the current fiscal year.

 

The committee version of SB 179 by Sen. Trip Pittman, R-Daphne, does not move money to the General Fund as the Governor has recommended.

 

The Legislature and its support agencies, the departments of Mental Health, Public Health, Rehabilitation Services, and the detention programs under Youth Services would continue to receive about $142 million from the ETF, per the committee budget.

 

In terms of paying for the education programs and functions cited in the Business Education Alliance of Alabama report, Obstacles Into Opportunities, that are necessary to increase Alabama's high-quality graduation rate, the following amounts are increases over FY 2015: First Class Pre-K, $13.5 million; Student Assessment, $6 million; Postsecondary dual-enrollment, $5.2 million; Distance Learning, $2 million; and Advanced Placement, $500,000.

 

The committee recommended level funding for the programs and functions that were also cited as being critical to academic progress, including AMSTI and the At-Risk student program.


Compared with FY 2015 appropriations, the committee substitute will also increase funding for textbooks by $13 million, transportation by $5 million, the two-year colleges by $9.2 million, and colleges and universities by a total of $3.3 million. 

ENVIRONMENT AND ENERGY

Three bills dealing with environmental issues saw action this week

 

The Senate Finance and Taxation General Fund Committee favorably reported SB 283 by Sen. Bobby Singleton, D-Greensboro. SB 283 would strip funding from the Alabama Department of Environmental Management. At the committee meeting, Sen Singleton committed to work out any issues with ADEM prior to bringing it to the full Senate. The BCA supports adequate funding for ADEM.

 

HB 229 by Rep. Anthony Daniels, D-Huntsville, would create the Office of State Climatologist. Alabama's State Climatologist has long been a rational voice in the national debate regarding climate change. The House Education Policy Committee favorably reported the bill.
 

The Senate on Tuesday voting 31-0 passed SB 250 by Sen. Greg Reed, R-Jasper. The legislation, if it becomes law, would affirm that appeals regarding the Surface Mining Commission must be made in court in the county of the agency.

HEALTH

One of Three Health Care Mandate Bills Advances

 

The Senate Banking and Insurance Committee voting 10-0 favorably reported SB 270 sponsored by Sen. Slade Blackwell, R-Birmingham, and it was placed on the Senate Calendar on Thursday. SB 270 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 private insurers reimburse a health care provider for services. HB 271 was in the House Committee on Insurance and was carried over. SB 88 is on the Senate calendar.


The Health section of BCA's 2015 State Legislative Agenda states that "BCA will actively oppose mandating employer-provided health care benefits or any legislation, resolution or regulation that would increase health plan costs."

JUDICIAL AND LEGAL REFORM

House and Senate Committees Favorably Report Bills to Regulate Consumer Lawsuit Lending

 

On Thursday morning, BCA President and CEO William J. Canary thanked members of the Senate Banking and Insurance Committee and House Financial Services Committee for favorably reporting SB 68 and HB 160, the lawsuit lending bills. 

 

"It was inspiring to see broad bi-partisan support for this legislation that at the end of the day is good for business and good for consumers," Canary said. "We now look forward to bringing this legislation to the full Legislature and creating a 'model' law for all 50 states." 

 

The Senate Banking and Insurance Committee favorably reported SB 68 sponsored by Sen. Cam Ward, R-Alabaster, and the House Financial Services Committee favorably reported HB 160 sponsored by Rep. Chris Pringle, R-Mobile. 

 

Consumer lawsuit lending is the unregulated practice of loaning money at exorbitant interest rates to plaintiffs who might receive large settlements or judgments. This practice targets a vulnerable population, introduces a third-party's interests into the attorney-client relationship, and slows down and increases the cost of litigation for both plaintiffs and defendants. 

 

Last week, Canary and former Georgia Attorney General Thurbert Baker testified at House and Senate public hearings in support of the legislation. Baker spoke on behalf of the U.S. Chamber of Commerce's Institute for Legal Reform. 

 

For more information on why this legislation is needed in Alabama, see this BCA fact sheet

 

Innovator Liability Bills Advance

 

The Senate Judiciary Committee on Wednesday amended and then favorably reported HB 110 sponsored by Rep. Jack "J.D." Williams, R-Vestavia Hills. The bill awaits a third reading in the Senate.

 

This bill and its Senate counterpart, SB 80 sponsored by Sen. Cam Ward, R-Alabaster, would restore Alabama's long-standing product-liability law and put us in line with the majority of states that have rejected the innovator-liability theory. That theory holds that a manufacturer can be held liable for a product that it neither made nor sold.

 

Innovator liability has been important to Alabama manufacturers and economic development since 2013 and 2014 when Alabama Supreme Court rulings potentially opened up product tort actions against businesses that do not make a product.

The House previously voted 88-7 to pass HB 110 and the Senate previously voted 32-0 to pass SB 80.


The BCA supports these bills that are part of its 2015 State Legislative Agenda.
 

 

See this BCA fact sheet for more information.  

LABOR AND EMPLOYMENT

Data Breach Legislation Clears Senate Judiciary Committee

 

On Wednesday, the Senate Judiciary Committee favorably reported a substitute version of SB 106 by Sen. Arthur Orr, R-Decatur. The bill was brought up at the call of the chair and was quickly passed by a unanimous vote.

 

When the bill was originally introduced in March, many members of the business community expressed concerns with certain provisions that would require businesses to notify the Attorney General and individual owners of personal information if a data breach occurs as well as impose certain fines, fees, and penalties on businesses.


Since that time, Sen. Orr has addressed many of the concerns of the business community in the committee substitute. The BCA will continue to work with Sen. Orr and members of the business community to ensure the bill does not have a negative impact on Alabama's job creators.

 



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.

Restrictive Covenant Bill Would Replace Current Law

 

HB 352 sponsored by Rep. Chris England, D-Tuscaloosa, relates to restrictive covenants in contracts between businesses and their employees, among others. This bill would replace the existing statute with a more definite list of protectable interests and reasonable restraints on length-of-time and geographic area.


The House Judiciary Committee amended and favorably reported the bill. Sen. Phil Williams, R-Rainbow City, introduced a version of this bill, SB 367.

TAX AND FISCAL POLICY

Third Economic Incentive Bill Passes

 

The House on Thursday approved the thirdl bill in an economic incentive package that is supported by the Business Council of Alabama.

 

The House voting 94-5 agreed to Senate changes to HB 57 that was sponsored by Rep. Elaine Beech, D-Chatom. The bill, which goes to Governor Robert Bentley for consideration, 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.

 

HB 58, the Alabama Jobs Act sponsored by Rep. Alan Baker, R-Brewton, would allow qualifying companies to receive tax benefits for new jobs and new capital investment. It went to Bentley on April 2.


HB 59, sponsored by Rep. Paul Lee, R-Dothan, was signed by Governor Robert Bentley on March 19. HB 59 creates reinvestment incentives for Alabama-based facilities that are refurbished, upgraded, or placed back into service.

A fourth bill, HB 304 by Rep. Phil Williams, R-Monrovia, the innovation tax credit bill, is in the House Technology and Research Committee.

The BCA Comments on ADOR's Proposed Tax on Streaming Content

 

BCA President and CEO William J. Canary wrote in comments to the Alabama Department of Revenue that a proposed administrative regulation usurps the Legislature's taxing authority. Canary said a DOR proposal to extend a "rental tax" to streaming content is inconsistent with Alabama law.

 

Canary on Wednesday sent his comments that question the department's attempt to amend a current regulation and gain authority to use the existing Alabama Leasing and Rental Tax to tax streaming and on-demand content including movies and music.

 

"In our opinion, the proposed regulation far exceeds the authority of the department by imposing a new tax, thereby intruding into the exclusive province of the Legislature," Canary wrote Department Secretary Michael Gamble. "As you are aware, there is no provision in the Alabama Code that imposes a tax on streaming content."

 

In a legislative session that is increasingly focused on tax and fiscal issues, it would be more appropriate for the Legislature to address this issue than for the Alabama Department of Revenue to unilaterally increase taxes on Alabama taxpayers.

 

The BCA requests that the Department of Revenue withdraw the proposed amended regulation.

LLC Originating-State Control Bill Advances

 

The Senate Fiscal Responsibility and Economic Development Committee on Wednesday favorably reported HB 54 that is sponsored by Rep. Bill Poole, R-Northport. His bill 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 also would clarify liability issues for wrongful distributions by LLC members. The House passed the bill 95-0.

YOUR BCA ADVOCACY TEAM

Dana Beyerle
Director of Communications
334.240.8768
William J. Canary
President and Chief Executive Officer
Mark Colson
Senior Vice President of Government Affairs and
Chief of Staff
334.240.8724
Anna Dobbins
Meetings/Events and Communications Coordinator
334.240.8775
Leah Garner
Director of Government Affairs and Advocacy
334.240.8726
Drew Harrell
Deputy Chief of Staff and Director of Strategic Operations
334.240.8727
Nancy Wall Hewston
Vice President of Communications, Strategic Information and Federal Affairs
334.240.8725
Nathan Lindsay
Vice President for Political Affairs, Regional Operations and Executive Director of ProgressPAC
334.240.8766
Trevor Parrish
Legislative Policy Coordinator
334.240.8773
Joshua Vaughn
Director of Visual Communications and Strategic Information
334.240.8740
Victor Vernon
Vice President for Public Policy
Pam Ware
Manager, Government Affairs and Advocacy
334.240.8719


For more information on the Business Council of Alabama contact