Representative Steve Clouse spoke to BCA’s Government Affairs Committee in Montgomery on Tuesday to begin the second week of a special session within the regular legislative session. Representative Clouse sponsored the House bill on the distribution of ARPA funds, which was the purpose of the special session called by Governor Kay Ivey last week. His remarks focused on funds going toward broadband, water and sewer projects, and healthcare. A portion of the funds will also be used to replenish the Unemployment Insurance Trust Fund which will reduce business’ taxes by 29%. Representative Clouse is also the Chairman of the House Ways and Means General Fund Committee. He reported that while the state’s budgets are in a very strong position this year, future challenges can create tough budget years down the road and that is why it’s important to make wise decisions in the present in order to plan for those challenges.
After his presentation to the BCA Governmental Affairs Committee, Chairman Clouse sat down with BCA staff to discuss federal relief money and state budgets. Click here to check out his interview.
On Thursday, the Legislature passed to HB 1 (Rep. Steve Clouse, R-Ozark) that dealt with appropriating the federal American Rescue Plan Act (ARPA) funds. The special session began on January 19th and concluded just eight days later. The ARPA funding bill received overwhelming bi-partisan support in both chambers of the legislature and will invest millions of dollars into important programs in our state.
HB 1 passed through the House on Tuesday, January 25th by a vote of 100-1-2. It then went on to pass the Senate on Thursday, January 27th by a vote of 26-0-1.
Listed below is a breakdown on how the funds from the ARPA funds will be allocated. The amounts shown are top limits for the funding in each category.
Appropriated from the ARPA Coronavirus State Fiscal Recovery Fund:
Appropriated from the ARPA Revenue Replacement Funds:
Appropriated from the ARPA Coronavirus Capital Projects Fund:
A key component of the ARPA funding that was approved will be a boost for all Alabama employers is the replenishing of the Alabama Unemployment Trust Fund, which is funded primarily by a tax on all Alabama employers. This bill appropriates $79.5 million to the state’s Unemployment Trust Fund (UTF). This infusion of funding will bring the fund closer to its pre-pandemic level. As a result, employers will see a 29 percent decrease in the “shared costs” tax rate. Due to the depletion to the UTF caused by the COVID pandemic, employers saw a tax increase of 72 percent last year, even after lawmakers allocated about $385 million in federal CARES Act money to the fund. Without the CARES money, that increase would have been around 500%.
Next Tuesday, the legislature will return to Montgomery to resume its regular session activities. A number of bills have been waiting for a vote in committee and we expect for there to be swift movement in both chambers. To date, 294 bills have been introduced in the regular session.
One bill that could likely receive quick attention is legislation that will 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 will an increased child tax credit, increased dependent care credit and increased and modified earned income credit, which total around $2 billion in additional pandemic relief benefits that were received by Alabama families. This bill is being spearheaded by Sen. Dan Roberts (R-Mountain Brook). For more information regarding this legislation, click here.
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 1: ARPA Funding Appropriations
Sponsor: Rep. Steve Clouse (R-Ozark)
BCA Position: Support
Status: Passed the Legislature
HB 1 deals with appropriating the funding the State is receiving through the American Rescue Plan Act. In total, there is $772 million in Federal funds that need to be appropriated for the fiscal year ending September 30, 2022. This bill also creates a 14-member Joint Legislative Oversight Committee on American Rescue Plan Act State Funds.
HB 82: Small Business Relief and Revitalization Act
Sponsor: Rep. Danny Garrett (R-Trussville)
BCA Position: Support
Status: Pending Approval by the House Ways and Means Education Committee
HB 82, also known as the Small Business Relief and Revitalization Act, 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: Received a Favorable Report from the Senate Judiciary Committee
SB 17 received a unanimous favorable report from the Senate Judiciary Committee 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.
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.
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 66: 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 66 would repeal certain existing restrictions regarding the carrying and/or the possession of a firearm on certain property or in a motor vehicle. This bill eliminates the requirement for person(s) to acquire a concealed carry permit in the State of Alabama. HB 66 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 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.
SB 31: Employer Requirements for Family Leave Related to Adoption
Sponsor: Sen. Andrew Jones (R-Centre)
BCA Position: Monitor
Status: Pending Action in the Senate
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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