House Speaker Mac McCutcheon (R-Monrovia) spoke to BCA’s Government Affairs Committee in Montgomery on Tuesday. Speaker McCutcheon gave a preview of what he expected as the legislature reconvened in Montgomery to continue the 2022 regular session after concluding a special session on the appropriation of ARPA funds. He anticipated the legislature focusing on healthcare and constitutional carry legislation.
Speaker McCutcheon, who has announced his retirement from the legislature later this year, also took time to look back on his tenure in the legislature and as Speaker of the House and reminisce on his experiences. He read an inspiring excerpt from a speech he gave when he was elected speaker and thanked BCA and its members for always having a spirit of cooperation and working to move our state forward.
After his presentation to the BCA Governmental Affairs Committee, Speaker McCutcheon sat down with BCA staff to talk about the gun legislation currently being discussed by the legislature. Click here to check out his interview.
On Wednesday, Lieutenant Governor Will Ainsworth announced a package of bills for the legislative session that were identified by the Alabama Small Business Commission. The Commission, which falls under the authority of the Lieutenant Governor’s office, is chaired by House Education Budget Chair Danny Garrett. The Commission’s goals include tax deductions, tax credits, paperwork reductions, and other adjustments that affect employers and employees of small businesses in Alabama. Part of the Commission’s agenda included the $79.5 million replenishment of the Unemployment Compensation Trust provided by the American Rescue Plan Act (ARPA) funding which also was supported by the BCA. These funds enabled Alabama employers to avoid a 29 percent tax increase in their unemployment compensation taxes. This boost to the fund was accomplished during the recent special session that focused on distributing federal funds from the American Rescue Plan Act (ARPA). For more details on the Small Business Commission’s legislative package, please click here.
On Tuesday, the Legislature resumed the 2022 regular legislative session after holding a special session to deal with the appropriation of ARPA funding. Lawmakers gaveled in for three legislative working days in their respective chambers. Lawmakers also held a host of committee meetings on Tuesday and Wednesday of this week where they initiated the first stage of debate for many bills that have been filed in the first weeks of the session.
With a large number of bills awaiting legislative action, legislators were eager to get back to work. A total of 169 bills were introduced this week. A number of bills advanced out of committees and a handful of bills received House or Senate chamber approval. Included in the advancing legislation were two BCA-supported bills: One providing protections to critical infrastructure assets which received Senate approval and another which provides a business personal property tax exemption that passed the House.
Below is a list of bills that received legislative action this week:
• The House overwhelmingly passed a BCA-supported bill (HB 82), sponsored by Rep. Danny Garrett, called the Small Business Relief and Revitalization Act. This bill provides an exemption of up to $40,000 in business personal property from state ad valorem tax, beginning October 1, 2023.
• The Senate gave floor approval to another BCA-supported bill (SB 17) that 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.
• The Senate Judiciary Committee voted 6-4 to give approval to legislation that would end the requirement to get a permit to conceal carry a handgun in Alabama. Click here for more on this piece of legislation.
• The Senate gave final approval to HB 76 which would repeal a law passed in 2021 that allowed college athletes to earn money off their name, image, and likeness. This comes in response to the NCAA’s decision last year to allow college athletes to make deals and earn money off their name, image, and likeness (NIL). Legislators say that the law passed in Alabama is more restrictive than the rules put in place by the NCAA.
• The Senate Education Policy Committee gave a favorable report to SB 140, a school choice bill that would provide an annual amount $5,561 for a student to deposit into an education savings account which parents could then use to send their children to alternate schools. Read more on SB 140 here.
• The Senate Judiciary Committee gave a favorable report to a bill that would do away with driver’s license suspensions based on violations such as failure to appear in court for a traffic violation or failure to pay a fine, fee, or court cost as a result of a traffic violation.
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.
HB 82: Small Business Relief and Revitalization Act
Sponsor: Rep. Danny Garrett (R-Trussville)
BCA Position: Support
Status: Passed the House of Representatives
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 Senate
SB 17 passed the Senate by a vote of 32-0 on Wednesday. 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 152: ARPA Relief Funding Tax Exemption – Child Tax Credit
Sponsor: Sen. Dan Roberts (R-Mountain Brook)
BCA Position: Support
Status: Passed the Senate
SB 152 passed the Senate by a vote of 31-0 on Thursday. This bill 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 Ways and Means Education Committee
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 125: Local Government Broadband Grants
Sponsor: Sen. Clay Scofield (R-Guntersville)
BCA Position: Support
Status: Pending Approval by the Senate Fiscal and Economic Development Committee
SB 125 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 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: Received a Favorable Report from the Senate Children, Youth, and Human Services 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.
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