Week five of the 2022 Legislative Session

Capital Briefing

Week five of the 2022 Legislative Session

BCA Governmental Affairs Staff

Senate Pro Tem Greg Reed Discusses Legislative Session’s Progress at BCA Briefing

Senate President Pro Tem Greg Reed (R- Jasper) spoke to BCA’s Government Affairs Committee in Montgomery on Tuesday. He shared the progress that has been made by the Legislature so far in the 2022 session, as well as accomplishments made in the recent special session which dealt with appropriating $772 million in federal ARPA relief funds. Pro Tem Reed discussed several bills that he expects to advance and gave a brief overview of the political landscape heading into election season.

After his presentation to the BCA Government Affairs Committee, Senator Reed sat down with BCA staff to talk about the efforts of the Alabama Innovation Commission. Click here to check out his interview.

Busy Week at the State House as Legislature Concludes a Three-Day Work Week

The Legislature continued its regular session work this week as it gaveled in on Tuesday and concluded its 7^th, 8^th, and 9^th legislative working days. This leaves 21 more legislative working days allowed in this year’s regular session. A number of bills saw movement in both the House and Senate with lawmakers also holding a host of committee meetings on Tuesday and Wednesday of this week.

The Legislature has already filed a large number of bills so far this session; however, they found room for a good many more with a total of 85 bills that were introduced this week. A number of bills advanced out of committee and a handful received House or Senate chamber approval. Included in the advancing legislation was a BCA-supported bill that will provide protections to critical infrastructure assets which passed the House this week and now goes to the Governor’s desk for her signature.

Below is a list of bills that received legislative action this week:

On Thursday, the Senate passed a bill sponsored by Sen. Clay Scofield (R-Guntersville) which proposed a constitutional amendment that would allow a state, county, or municipality to grant federal award funds or any other source of funding designated for broadband infrastructure.
SB 17, a BCA-supported bill, was favorably reported by the House Public Safety and Homeland Security Committee on Wednesday, and then passed the House chamber by a vote of 99-1 on Thursday. SB 17 would provide more protections to critical infrastructure assets by enhancing the criminal penalties associated with the deliberate act of damaging critical infrastructure. Critical infrastructure assets are facilities or structures such as a chemical manufacturing facility, a pipeline, a natural gas storage facility, an electric grid control center, and a water treatment facility.
On Wednesday, the House Public Safety and Homeland Security Committee held a public hearing on HB 272 which would would repeal the state’s law requiring a permit to carry a concealed weapon. The Committee is scheduled to vote on the bill at its meeting next week. Click here to read more about the public hearing on the gun legislation.
The Senate approved unanimously of SB 19 by Sen. Arthur Orr (R-Decatur) that would provide tax relief to low-income earners and retirees. If the bill were to pass through the House and become law, there would be an estimated annual reduction of $17.23 million. Click here for more on this bill.
HB 241 received a favorable report from the House Education Policy Committee that would make it easier for Alabamians to find information about the workforce credentials available to them and the jobs those credentials might help them obtain. A part of this legislation is aimed at preparing students who may not pursue a college degree. This bill would require by the 2023-24 academic year, that students earn one or more college readiness indicators before they graduate. To read more about this bill, click here
The Senate passed SB 124 which would make modifications to the broadband accessibility grant program operated by ADECA such as increasing the minimum service threshold for high-speed broadband services and allowing governmental entities to participate in the program.

A status of BCA-supported bills, as well as other bills the governmental affairs team is tracking, can be found in the policy section of BCA’s Capital Briefing below.

BCA Bills of Interest

HB 82: Small Business Relief and Revitalization Act
Sponsor: Rep. Danny Garrett (R-Trussville)
BCA Position:Support
Status: Pending Approval by the Senate Finance and Taxation Education Committee

HB 82, also known as the Small Business Relief and Revitalization Act, passed the House by a vote of 99-0 on Thursday. This bill would allow businesses to exempt up to $40,000 of the market value of business personal property from ad valorem tax levied by the state. HB 82 would also ensure that any relief funding from the American Rescue Plan Act received by qualifying disadvantaged farmers is exempt from state income tax. This bill would also provide a one-month extension of the due date of tax returns for Alabama financial institution excise taxpayers and corporate income taxpayers in the tax years beginning on or after January 1, 2021, without incurring a late filing penalty. HB 82 would also increase the average monthly state sales tax liability threshold calculation to $5,000 or greater during the preceding calendar year for required estimated payments.

SB 17: Security of Critical Infrastructure
Sponsor: Sen. Garlan Gudger (R-Cullman)
BCA Position: Support
Status: Passed the House – Awaiting the Governor’s Signature

SB 17 passed the House by a vote of 99-1 on Thursday and now goes to the Governor’s desk for her signature. This bill would provide increased protections for critical infrastructure assets through enacting enhanced criminal penalties for the act of damaging critical infrastructure. It also provides penalties for individuals who commit the crime of unauthorized entry of a critical infrastructure asset with a weaponized unmanned aircraft system. Critical infrastructure assets need to be protected for public and environmental safety and economic stability reasons. These include facilities or structures such as a chemical manufacturing facility, a pipeline, a natural gas storage facility, an electric grid control center, and a water treatment facility.

SB 125: Local Government Broadband Grants
Sponsor: Sen. Clay Scofield (R-Guntersville)
BCA Position: Support
Status: Passed the Senate

SB 125 passed the Senate on Thursday by a vote of 28-0. This bill proposes an amendment to the Constitution of Alabama which would authorize the state, a county, or a municipality to grant to public or private entities federal award funds or any other source of funding designated for broadband infrastructure by state law for providing or expanding broadband infrastructure.

SB 152: ARPA Relief Funding Tax Exemption – Child Tax Credit
Sponsor: Sen. Dan Roberts (R-Mountain Brook)
BCA Position: Support
Status: Pending Approval by the House Ways and Means Education Committee

SB 152 would ensure families aren’t penalized on their state income taxes for the increased child tax credit they received through the federal ARPA bill. The tax relief measures included under this bill include increased child tax credit, increased dependent care credit, and increased and modified earned income credit, which totals around $2 billion in additional pandemic relief benefits that were received by Alabama families.

HB 20: Extension of Sale Tax Exemption for Certain Military Aircraft Parts
Sponsor: Rep. Paul Lee (R-Dothan)
BCA Position: Support
Status: Pending Approval by the House of Representatives

HB 20 extends the tax exemption for the gross receipts from the sale of parts, components, and systems that become a part of a fixed or rotary wing military aircraft and that satisfy other criteria from May 30, 2022, to May 30, 2032.

SB 45: Historic Tax Credits
Sponsor: Sen. Clyde Chambliss (R-Prattville)
BCA Position: Support
Status: Pending Approval by the Senate Finance & Taxation Education Committee

SB 45 would provide that a tax allocation reservation granted to certain taxpayers with a certified rehabilitation project shall not be excluded from receiving tax credits already reserved prior to the enactment of Act 2021-431. SB 45 also extends the tax credit to December 31, 2027.

SB 57: Repeal/Sunset of Certain State Tax Credits, Incentives, and Abatements
Sponsor: Sen. Arthur Orr (R-Decatur)
BCA Position: Oppose
Status: Pending Approval by the Senate Finance and Taxation Education Committee

SB 57 would, on December 31, 2023, repeal any tax incentive, credit, or abatement that doesn’t currently have a prescribed sunset or expiration provision unless the Legislature passes an extension. The Alabama tax code contains numerous individual and businesses tax breaks that would fall into this category. It would also establish annual reporting requirements for all tax incentives, credits, and abatements that would be subject for review by the House and Senate Education committees.

HB 16 and HB 29: Private Right of Action Against Employers (COVID Vaccinations)
Sponsor: Rep. Tommy Hanes (R-Bryant)
BCA Position: Oppose
Status: Pending Approval by the House Judiciary Committee

HB 16 and HB 29 would establish a private right of action against employers for any adverse reaction, injury, temporary, permanent disability or death of an employee arising from an employer mandate that the employee receive a COVID-19 vaccine.

HB 31: Civil Cause of Action Against Employers (Immunization Status Discrimination)
Sponsor: Rep. Ritchie Whorton (R-Owens Cross Roads)
BCA Position: Oppose
Status: Pending Approval by the House Judiciary Committee

HB 31 creates a civil cause of action prohibits employers for alleged discrimination against an individual based on their immunization status. HB 31 would allow for an employer, potential employer or place of public accommodation be subject to a civil cause of action. It lists available remedies to include, but not be limited to: injunctive relief; compensatory damages; punitive damages and attorney fees.

HB 272: Firearm Concealed Carry Permits and Constitutional Carry
Sponsor: Rep. Shane Stringer (R-Citronelle)
BCA Position: Monitor
Status: Pending Approval by the House Public Safety and Homeland Security Committee

HB 272 would eliminate the requirement for person(s) to acquire a concealed carry permit in the State of Alabama. This bill would also revise the presumption that an individual that is carrying a pistol without a permit is evidence of intent to commit a crime. The BCA staff will continue to monitor this legislation closely to ensure that it doesn’t infringe upon employers’ rights to provide a safe workplace by restricting unauthorized firearm possession on company property.

HB 1: Pregnant Workers Fairness Act
Sponsor: Rep. Neil Rafferty (D-Birmingham)
BCA Position: Monitor
Status: Pending Approval by the House Judiciary Committee

HB 1 would require that employers provide reasonable accommodations for employees related to pregnancy or childbirth unless the accommodations would cause undue hardship on the employer. If an employee is denied reasonable accommodations, then they may bring a cause of action against their employer.

HB 113: General Fund Budget Appropriations
Sponsor: Rep. Steve Clouse (R-Ozark)
BCA Position: Monitor
Status: Pending Approval by the House Ways and Means General Fund Committee

HB 113 makes the appropriations for the ordinary expenses of the executive, legislative, and judicial agencies of the State. Also included in the appropriations package is for other functions of government, debt service, and for capital outlay for the Fiscal year ending in September 2023.

HB 130: Healthcare Certificate of Need Program
Sponsor: Rep. Andrew Sorrell (R-Muscle Shoals)
BCA Position: Oppose
Status: Pending Approval by the House Health Committee

HB 130 repeals the certificate of need program and abolishes the Certificate of Need Board, the State Health Planning and Development Agency, the Statewide Health Coordinating Council, and the Health Care Information and Data Advisory Council. Under existing law, health care services and facilities are required to apply for and receive a certificate of need before they can build new health care related facilities or offer expanded services.

SB 27: Prescription Drug Compliance Standards
Sponsors: Sen. Tom Butler (R-Madison)
BCA Position: Oppose
Status: Pending Approval by the Senate Banking and Insurance Committee

SB 27 would require a health insurer to communicate to a physician or other health care professional with authority to prescribe drugs, within three business days of receiving a request for insurance coverage of a prescription drug benefit, that the request is approved, denied or requires supplemental documentation. This legislation also requires a health insurer to communicate with a physician or other health care professional with the authority to prescribe drugs, regarding the approval or denial of the request, within three business days of receiving sufficient supplemental documentation.

SB 31: Employer Requirements for Family Leave Related to Adoption
Sponsor: Sen. Andrew Jones (R-Centre)
BCA Position: Monitor
Status: Pending Approval from the House Ways and Means General Fund Committee

SB 31 would require certain employers to offer 12 weeks of family leave to eligible employees for the birth and care of a child during the first year after the birth of the child, and for an adopted child within one year of placement. This bill would also require employers who provide certain additional maternity benefits to female employees to extend those to employees who become adoptive parents. Under current law, employers are not required to provide family leave for adoptive parents, during or after the time of the adoption.

HB 135: Education Trust Fund Budget
Sponsor: Rep. Danny Garrett (R-Trussville)
BCA Position: Monitor
Status: Pending Approval by the House Ways and Means Education Committee

HB 135 makes the appropriations for the support, maintenance and development of public education in Alabama, for debt service, and for capital outlay for the fiscal year ending September 30, 2023.

SB 10: Interactive Computer Service Provider Censorship
Sponsor: Sen. Arthur Orr (R-Decatur)
BCA Position: Monitor
Status: Pending Approval by the Senate Judiciary Committee

SB 10 would prohibit a large interactive computer service provider from taking certain restrictive or suppressive action against a user of its service based on either a viewpoint expressed or shared by the user or true statements of fact expressed by the user. This bill provides for civil liabilities from an effected user against a major interactive computer service provider.

Capital Briefing