Alabama House Minority Leader Anthony Daniels (D-Huntsville) joined the Business Council of Alabama (BCA) on Tuesday, April 25, for BCA’s Government Affairs Briefing.
Representative Daniels thanked Governor Ivey, the Alabama Legislature leadership, and all stakeholders for their work on The Game Plan. Rep. Daniels sponsored Play 3 – the Innovation and Small Business Act (HB247). He explained how The Game Plan package of economic development incentives will benefit urban and rural communities, ensure Alabama’s workforce remains competitive and diverse, and continue to move the state’s economy forward. Rep. Daniels’ focus has now shifted to HB217, a bill he is carrying and BCA is supporting, which aims to remove the state income tax on overtime pay for Alabama workers. He closed the briefing by discussing the vital role education, childcare, and cost-effective healthcare play in Alabama’s thriving workforce.
Every Tuesday during the 2023 legislative session, BCA will hold a briefing at our office at 9 a.m. All Tuesday morning briefings are streamed live on BCA’s Facebook page. Alabama Senate Majority Leader Clay Scofield will join as our guest speaker at the next briefing on Tuesday, May 2.
This week, the House and Senate began the budget process to allocate state funds for Alabama’s two budgets – the Education Trust Fund (ETF) and General Fund. On Tuesday, the House unanimously passed the General Fund budget for Fiscal Year 2024 (HB124) and Supplemental Appropriations for Fiscal Year 2023 (HB125). Both bills were referred to the Senate Finance and Taxation General Fund Committee. The ETF for Fiscal Year 2024 (SB88) and Supplemental Appropriations for Fiscal Year 2023 (SB87) are pending committee action in the Senate Finance and Taxation Education Committee (F&TE).
Now that BCA’s top priority this session – The Game Plan – cleared the legislature and has been signed into law, the BCA governmental affairs team has pivoted its efforts toward other legislative items of interest. The House and Senate worked on a variety of issues this week, some of which are BCA bills of interest.
The House passed HB273 by Representative Jamie Kiel (R-Russellville), which would revise the qualifications for employees and employers to receive the income tax deduction for health insurance premiums paid. The bill was sent to the Senate and referred to F&TE.
HB217 by Representative Anthony Daniels (D-Huntsville), which would remove the state income tax on overtime pay for Alabama workers, was reported favorably out of the House Ways and Means Education Committee and will now be considered on the House floor.
Thursday was the 15th legislative day, which means the legislature is officially halfway through the 2023 regular session. The House and Senate will return next Tuesday for a two-day work week.
BCA connected with Representative Jamie Kiel (R-Russellville) this week to discuss how his bill, HB273, will benefit employers and employees and provide support for small businesses across Alabama.
HB217
Sponsor: Rep. Anthony Daniels (D-Huntsville)
BCA Position: Support
Status: Pending action on House floor
Additional Information: This bill would remove the state income tax on overtime pay for Alabama workers.
HB378
Sponsor: Rep. Chip Brown (R-Mobile)
BCA Position: Support
Status: Introduced and referred to House Economic Development and Tourism Committee
Additional Information: This bill would provide for the creation of brownfield redevelopment districts to further provide for the remediation and ultimate reuse of brownfields.
SB257
Sponsor: Sen. Andrew Jones (R-Centre)
BCA Position: Monitor
Status: Introduced and referred to Senate Finance and Taxation Education Committee
Additional Information: This bill would gradually cut the state’s 4% sales tax on most grocery items to 2%. The tax reduction would be paused if overall tax revenue growth in the Education Trust Fund fell below 2%.
HB293
Sponsor: Rep. Chip Brown (R-Mobile)
BCA Position: Support
Status: Pending action on House floor
Additional Information: This bill would revise the structure of the amounts of the credits that may be claimed and expand the credit to allow port users to claim a jobs tax credit if the user increases their cargo base volume.
SB261
Sponsor: Sen. Dan Roberts (R-Mountain Brook)
BCA Position: In Review
Status: Introduced and referred to Senate Committee on Fiscal Responsibility & Economic Development
Additional Information: This bill would prohibit a governmental entity from entering into a public contract with certain companies or businesses that engage in the economic boycott of businesses in certain sectors and industries; that fail to meet or commit to meet certain environmental standards; that fail to meet or commit to meet certain corporate governance criteria; or that fail to facilitate certain activities.
HB188
Sponsor: Rep. Chip Brown (R-Mobile)
BCA Position: In Review
Status: Introduced and referred to House State Government Committee
Additional Information: This bill would prohibit the consideration of environmental, social, and governance (ESG) criteria when awarding a public contract and would require a responsible bidder, as a condition of being awarded a public contract, to certify, under penalty of perjury, that its employees will not be subject to a personal ESG rating as a basis of hiring, firing, or evaluation.
HB298
Sponsor: Rep. Chris Sells (R-Greenville)
Status: Pending action in House Commerce and Small Business Committee
BCA Position: In Review
Additional Information: This bill would require all smartphones and tablets sold in Alabama to have an adult content filter enabled upon purchase, with violations constituting a civil penalty of up to $50,000 for the device’s manufacturer.
HB389
Sponsor: Rep. Rex Reynolds (R-Huntsville)
BCA Position: In Review
Status: Introduced and referred to House Ways and Means General Fund Committee
Additional Information: This bill would add a surcharge of 98 cents per month to all mobile communication in the state to fund the 988 Crisis System of Care.
SB220/HB367
Sponsor: Sen. Tom Butler (R-Madison); Rep. Phillip Rigsby (R-Huntsville)
BCA Position: Oppose
Status: Pending action in Senate State Government Committee; pending action in House Insurance Committee
Additional Information: This bill would allow a pharmacist to refuse service to a customer if the pharmacist believes the reimbursement they would receive for a drug is insufficient. It would also permit a pharmacist to recommend a customer switch to a different, more costly drug that the pharmacist would make more profit on — ultimately costing the health plan and customer more money.
HB273
Sponsor: Rep. Jamie Kiel (R-Russellville)
BCA Position: Support
Status: Passed in House; referred to Senate Finance and Taxation 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: Passed in House; referred to Senate Finance and Taxation 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.
HB267/SB245
Sponsor: Rep. Tim Wadsworth (R-Arley)/Sen. Sam Givhan (R-Huntsville)
BCA Position: In Review
Status: Pending action on House floor; pending action in Senate Judiciary Committee
Additional Information: This bill would revise the Alabama Nonprofit Corporation Law. Changes to nonprofit corporation laws, like those proposed in this bill, can impact various aspects of nonprofit organizations, including their formation, governance structure, board responsibilities, financial reporting requirements, and other operational procedures.
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