Representative Danny Garrett (R-Trussville) joined The Business Council of Alabama (BCA) on Tuesday, April 11, for BCA’s Government Affairs Briefing.
Rep. Garrett is sponsoring two bills that are a part of The Game Plan package of economic incentive legislation, HB241 and HB257. He explained these bills from his perspective, where they are in the legislative process, and how The Game Plan package of legislation will move Alabama’s strong business climate forward. Rep. Garrett also discussed Alabama’s current tax posture, strategically investing, workforce development and the work being done in the weeks to come on those issues in the state legislature.
Every Tuesday during the 2023 legislative session, BCA will hold a briefing at our office at 9 a.m. that will be streamed live on BCA’s Facebook page.
Senator Garlan Gudger (R-Cullman) will join as our guest speaker at the next briefing on Tuesday, April 18th.
BCA’s top priority this session, the economic incentives Game Plan package, began moving through the legislative process this week. The Game Plan includes four bills, all of which are top priorities for BCA this legislative session and critical components in BCA’s four-year plan to “Renew Alabama.”
SB165 and SB151 received a favorable report on Tuesday in the Senate Committee on Fiscal Responsibility and Economic Development (FRED) and were unanimously approved by the Senate on Thursday. On Wednesday, HB241, HB257, HB247, and HB240 were reported favorably out of the House Ways and Means Education Committee and were granted final passage in the House on Thursday.
The Game Plan package received overwhelming bipartisan support in both the House and Senate, with all bills passing unanimously in their respective chambers. The Senate is expected to consider all four House bills next week, while the House will take up SB165 and SB151.
On Tuesday, the House passed one of BCA’s bills of interest and sent it to Governor Kay Ivey’s desk for her signature. SB104, commonly referred to as the “Dram Shop” bill, provides much-needed liquor liability insurance reform, which will lead to higher protection at a lower cost for Alabama businesses.
On Wednesday of this week, BCA interviewed Rep. Cynthia Almond (R-Tuscaloosa) about her bill, HB 240 the Transparency in Incentives Act.
HB273
Sponsor: Rep. Jamie Kiel (R-Russellville)
BCA Position: Support
Status: Pending action in House Ways and Means Education Committee
Additional Information: This bill would expand tax deduction for health insurance premiums paid for employees who report no more than $75,000 of adjusted gross income ($150,000 if filing jointly) on their individual tax returns and work for qualifying employer with fewer than 50 employees. It would allow qualifying employees and employers to deduct 100% of the amount paid for health insurance premiums in connection with an employer provided health insurance plan. Additionally, it would provide support to small businesses and facilitate their provision of health insurance.
HB77
Sponsor: Rep. Danny Garrett (R-Trussville)
BCA Position: Support
Status: Reported favorably out of the House Ways and Means Education Committee
Additional Information: Under current law, every business in Alabama that generates a monthly average of $5,000 or more in sales taxes must make estimated monthly tax payments the following year. This bill would raise that threshold to $20,000, which would reduce “red tape” for more than 3,000 small businesses in the state.
SB164/HB241 Enhancing Alabama’s Economic Progress Act
Sponsor: Sen. Greg Reed (R-Jasper)/Rep. Danny Garrett (R-Trussville)
BCA Position: Support
Status: Passed in house of origin
Additional Information: Play 1 of The Game Plan renews and enhances the Alabama Jobs Act and Growing Alabama program, while extending their sunset dates to 2028. This legislation increases the Job’s Acts incentives cap by $25 million annually for five years, ensuring Alabama remains competitive for mega projects and increases funding for site development to $35 million to encourage development of new shovel-ready sites amid a shortage here in the state.
SB165/HB257 Site Evaluation and Economic Development Strategy (SEEDS) Act
Sponsor: Sen. Arthur Orr (R-Decatur)/Rep. Danny Garrett (R-Trussville)
BCA Position: Support
Status: Passed in house of origin
Additional Information: Play 2 of The Game Plan allows SIDA to facilitate the development of industry-ready sites and expands SIDA’s role in the preparation of industrial sites to accelerate their creation. This legislation also allows SIDA to issue grants to stimulate the creation of sites.
SB152/HB247 Innovation and Small Business Act
Sponsor: Sen. Bobby Singleton (D-Greensboro)/Rep. Anthony Daniels (D-Huntsville)
BCA Position: Support
Status: Passed in house of origin
Additional Information: Play 3 of The Game Plan accelerates growth in Alabama’s innovation economy and supports underrepresented businesses and enterprises in rural areas. This bill establishes the Alabama Small Business Credit with the transfer of tax credits for accelerators and support for underrepresented businesses that operate in innovative industries to Innovate Alabama. It also makes $25 million per year available for the Innovating Alabama Tax Credit to meet increasing demands as new tech accelerators begin operations and programs for small businesses in innovative industries that are developed across the state.
SB151/HB240 Transparency in Incentives Act
Sponsor: Sen. Garlan Gudger (R-Cullman)/ Rep. Cynthia Almond (R-Tuscaloosa)
BCA Position: Support
Status: Passed in house of origin
Additional Information: Play 4 of The Game Plan amends the Jobs Act to require the Alabama Department of Commerce to publish certain incentivized project information on its website. Information for each incentivized project includes the name of the company, the estimated capital investment, the number of jobs being created, an estimated hourly wage, the estimated value of the incentives, and the project’s location.
SB104
Sponsor: Chris Elliott (R-Josephine)/Rep. David Faulkner (R-Birmingham)
BCA Position: Support
Status: Passed the House and Senate; awaiting Governor Kay Ivey’s signature
Additional Information: Existing law provides that any seller or furnisher of alcoholic beverages, such as a bar, restaurant, or retail store, can be held liable for civil damages suffered by an individual who is injured by an intoxicated customer or patron of the seller or furnisher. This bill creates a wider standard, with a server having to knowingly serve a visibly intoxicated person, and for that service to be the proximate cause of injury or death. This is in line with what other states require, brings fairness to restaurant and bar owners, and should help drive down the cost of liquor liability insurance.
HB1 Supplemental Appropriations from the American Rescue Plan Act – Coronavirus State Fiscal Recovery Fund for the fiscal year ending September 30, 2023
Sponsor: Rex Reynolds (R-21)
BCA Position: Support
Status: Signed into law
Additional Information: Introduced by Rep. Rex Reynolds (R-21), HB1 allocates $1.1 billion in federal funding made available to the state through the American Rescue Plan Act (ARPA) passed by Congress in 2021. HB1 includes funding for broadband expansion, water and sewer infrastructure improvements, and support for our healthcare system for communities across the state.
The monetary breakdown for each category in HB1 is as follows:
Up to $339,175,000 to support the delivery of healthcare programs and services.
Up to $660,000,000 for water, sewer, stormwater, and broadband infrastructure investments.
Up to $55,000,000 for eligible programs and services in response to the negative economic impacts of the public health emergency.
Up to $5,000,000 for response and mitigation expenses related to the pandemic.
Up to $1,006,797.72 to reimburse costs for the administration, auditing, and reporting requirements of the state fiscal recovery funds.
SB1 Supplemental Appropriation from the State General Fund to the Alabama Trust Fund (ATF)
Sponsors: Greg Albritton (R-Atmore)
BCA Position: Support
Status: Signed into law
Additional Information: Senator Greg Albritton (R-Atmore), chairman of the Finance and Taxation General Fund Committee, introduced SB1 to approve a $60 million final payment to the Alabama Trust Fund (ATF) – a state fund established by voters. Totaling $59,997,772, this legislation pays off all remaining debts ahead of time to the ATF, which is required by the People’s Trust Act to be repaid in full by 2033. These funds will be made available through state dollars, not federal ARPA funding.
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Capitol Briefing Tuesday Morning Issues Briefing BCA hosted Senator Greg Albritton, the Senate General Fund Budget Committee chairman, this week to provide an overview of Alabama’s fiscal position and offer
