During this week’s Governmental Affairs Committee Issues Briefing, BCA members heard an update from Sen. Tim Melson (R-Florence) and Rep. Chris Blackshear (R-Phenix City).
The legislators discussed respective hot-button bills each were trying to navigate through the House of Representatives in the final days of the session. Melson outlined his SB 46, which would legalize medical cannabis in Alabama; and Blackshear spoke about a package of gambling bills he is carrying in his chamber.
Melson kicked things off by advising SB 46 represents a “seed-to-sale tracking system” that he has been working on for three years. He emphasized his appreciation for BCA and other members of the business community working closely with him to ensure language was included to protect job creators, especially when it comes to liability for employers. While BCA does not have a position on the legislation legalizing medical marijuana, it supports the inclusion of provisions that provide liability protections to businesses and preserve the state’s worker’s compensation law.
A medical doctor by trade, Melson noted that he does not believe medical cannabis is a “cure all” but instead “a way to help people who have tried everything else… as a last resort.” He subsequently detailed various nuisances of the legislation, including that it requires cannabis to be grown by Alabama farmers. The bill would also not allow the cannabis to be smoked or vaped.
Blackshear then talked through the gaming legislation, which is headlined by SB 319 – a constitutional amendment. He is also carrying SB 309, which is the enabling bill for the lottery portion of the equation, and SB 311, which would ban political contributions to elected officials from gaming stakeholders. SB 310, the enabling bill previously passed by the Senate related to casino gaming, is being left in the basket, meaning the House will not take it up.
He outlined the differences between the Senate-passed version of the gaming legislation and the substituted bills approved by the House Economic Development and Tourism Committee on Tuesday. Key changes pertained to the allocation of lottery and gaming proceeds; enforcement mechanisms in the legislation; and composition of the commission that would oversee gambling in the state.
“We’re just trying to allow the citizens of Alabama to vote,” Blackshear concluded.
The Alabama Legislature concluded its 28th and 29th legislative working days this week. That leaves only one remaining legislative day which is scheduled to take place on May 17th.
The Legislature debated several big issues this week with most of the attention in the State House focused on the legalization of medical marijuana and the establishment of gambling and a statewide lottery. However, other important issues also received action including the reauthorization of tax credits for the rehabilitation of historic structures, an incentive that has contributed significantly to the revitalization of downtown communities across the state. The Legislature also gave final passage to a bill that will create the Alabama Digital Expansion Authority which would be tasked with overseeing the expansion and availability of high-speed broadband services throughout the state.
For more on medical marijuana, gaming and other issues that received legislative action this week, check out the list of bills below:
To see the status of BCA’s legislative priorities, as well as other bills the governmental affairs team is tracking, check out the policy section of BCA’s Capital Briefing below.
SB 30: COVID Civil Liability Protections
Sponsors: Sen. Arthur Orr (R-Decatur) and Rep. David Faulkner (R-Homewood)
BCA Position: Support
Status: Signed into Law
SB 30 was signed into law and provides civil immunity for covered entities operating in Alabama from certain claims and damages claimed by individuals who allege they contracted or were exposed to COVID-19. Exceptions to this immunity would exist if the covered entity acted with wanton, reckless, willful or intentional misconduct when it comes to complying with government issued COVID guidelines. Such misconduct must be proven under a “clear and convincing” evidentiary standard.
HB 192: Reauthorization of Economic Development Incentives
Sponsors: Rep. Bill Poole (R-Tuscaloosa) and Sen. Greg Reed (R-Jasper)
BCA Position: Support
Status: Signed into Law
HB 192 was signed into law and reauthorizes three key economic development incentives: the Alabama Jobs Act, the Growing Alabama Credit, and the Alabama Port Credit. The Growing Alabama Credit will be extended to July 31, 2023, with the annual cap increased to $20 million a year. $5 million will be reserved in the first six months of the year for rural counties and up to $4 million for technology accelerators. The Alabama Jobs Act will be extended to July 31, 2023, and the annual cap will be increased to $325 million in 2021 and to $350 million in 2022. The Jobs Act also includes a provision to provide enhanced incentives to attract new investment and jobs for black-owned and woman-owned businesses, as well as businesses operating as a critical supply chain entity.
HB 170: Alabama Taxpayer Stimulus Freedom and Alabama Business Tax Competitiveness Acts
Sponsors: Rep. Danny Garrett (R-Trussville) and Sen. Dan Roberts (R-Mountain Brook)
BCA Position: Support
Status: Signed into Law
HB 170 was signed into law and ensures that economic stimulus payments, and related recovery rebates or credits, received by Alabamians will not be subject to state income tax. It will also exclude from state income tax any relief received by businesses such as PPP loan amounts that are forgiven, as well as financial assistance provided through federal Emergency EIDL Grants, EIDL Targeted Advances, and Grants to Shuttered Venues. At the state level, the bill would also exempt grants received by small businesses from the Revive Alabama and Revive Plus programs.
HB 170 will also enact revenue neutral measures to benefit companies that elect to invest in both property and personnel in this state, as well as measures to decouple from provisions of the Tax Cut and Jobs Act (TCJA) that would hinder Alabama’s competitiveness in economic development. HB 170 is designed to help level the playing field for companies that elect to headquarter in this State, or make other investments in property and personnel, by allowing them to exclude these investments when calculating their state income tax liabilities. This legislation also eliminates at the state level the limitation on business interest deductions imposed under IRC Section 163(j) for years in which an Alabama corporate taxpayer, or its federal filing group, would not be subject to this limitation at the federal level.
HB 408: Guidance on Classification of Workers
Sponsor: Rep. Wes Kitchens (R-Arab)
BCA Position: Support
Status: Signed into Law
HB 408 was signed into law by the Governor. This new law will require employers and state agencies to use the same specified guidelines to determine whether a worker is to be classified as an employee or independent contractor. This will require state government agencies to use a uniformed set of criteria that will mirror the federal government criteria which will provide businesses with clear and consistent guidelines when classifying employees.
SB 249: Relocation of Call Centers
Sponsor: Sen. Clay Scofield (R-Guntersville)
BCA Position: Support
Status: Signed into Law
SB 249 was signed into law by the Governor. This new law made important changes to a law passed in 2019 which penalizes companies that relocate a call center without giving advanced notice to the State. SB 249 will ensure that only call centers receiving incentives from the state are subject to the law and would define the term “relocate” as physically relocating outside the state of Alabama.
HB 281: Historic Tax Credit Reauthorization
Sponsor: Rep. Victor Gaston (R-Mobile)
BCA Position: Support
Status: Passed the Legislature – Awaiting Governor’s Signature
HB 281 was amended and passed the Senate by a vote of 31-0 on Tuesday. The amended version of HB 281 was then concurred by the House on Thursday. The bill now goes to the Governor for her signature. If signed into law, this bill will extend tax credits for qualified rehabilitation expenditures for the substantial rehabilitation of certified historic structures through 2027. The Alabama Historical Committee will be responsible for the administering of the tax credit program and approving the rehabilitation of qualified structures that qualify for the income tax credit. No tax credit claimed for any certified rehabilitation may exceed $5,000,000 for all allowable property types except a certified historic residential structure, and $50,000 for a certified historic residential structure.
SB 215: Broadband Expansion
Sponsor: Sen. Del Marsh (R-Anniston)
BCA Position: Support
Status: Passed the Legislature – Awaiting Governor’s Signature
SB 215 was substituted by a joint conference committee and then approved by the House and Senate. It now goes to the Governor’s desk for her signature. This bill would create the Alabama Digital Expansion Authority which would be tasked with overseeing the expansion and availability of high-speed broadband services throughout the state. The eventual plan adopted by the authority would be at least partially funded through a gambling expansion bill that is still up for debate in the legislature. Another funding component includes the creation of the Alabama Digital Expansion Finance Corporation that could issue bonds of up to $250 million to finance eligible projects.
SB 46: Legalization of Medical Marijuana
Sponsor: Sen. Tim Melson (R-Florence)
BCA Position: Monitor
Status: Passed the Legislature – Awaiting Governor’s Signature
SB 46 passed the House by a vote of 68-34 on Thursday. The substituted version was then sent to the Senate where it chose to concur with the House changes by a vote of 20-9. This bill, also known as the Compassion Act, would authorize the use of medical marijuana in Alabama by requiring patients to obtain a medical marijuana card from a doctor to treat certain medical conditions included in the legislation. In terms of employee workforce, this legislation includes both business protection provisions and worker’s compensation provisions in order to ensure the potential law does not expose the business community to additional civil liability if the use of medical marijuana is authorized.
HB 473: Alabama Rural, Agribusiness, and Opportunity Zones Jobs Act
Sponsor: Rep. Danny Garrett (R-Trussville)
BCA Position: Support
Status: Passed the Senate
HB 473 was amended and passed by the Senate by a vote of 25-4 on Thursday. This bill would create the Alabama Rural, Agribusiness, and Opportunity Zone Jobs Act which establishes procedures for a growth fund to invest in growth businesses located in growth zones in Alabama, and that are eligible to receive matching loan funds from the State Small Business Credit Initiative (SSBCI) Fund. The SSBCI Fund, established by this bill, would receive money from the federal allocations to the states pursuant to the American Rescue Plan Act of 2021.
HB 609: Innovate Alabama Matching Grant Program
Sponsors: Rep. Jeremy Gray (D-Opelika)
BCA Position: Support
Status: Passed the Legislature – Awaiting Governor’s Signature
HB 609 passed the Senate by a vote of 30-0 on Tuesday and now goes to the Governor for her signature. If signed into law, this bill would create the Innovate Alabama Matching Grant Program, which will provide matching grants to entities that have received either federal Small Business Innovation Research or Small Business Technology Transfer Research grants. The purpose of this bill is to grow Alabama’s economy by encouraging innovative small businesses to engage in research that may have the potential for some technological innovation and commercialization. The Fiscal note of this bill states that the amount of the matching grant awarded will not exceed the lesser of 50% of the SBIR or SBTT award.
SB 373: Unemployment Insurance Program Integrity Act
Sponsor: Rep. Arthur Orr (R-Decatur)
BCA Position: Support
Status: Passed the Legislature – Awaiting Governor’s Signature
SB 373 has passed the legislature and now awaits the Governor’s signature before it becomes law. This bill would create the Unemployment Insurance Program Integrity Act which would require the Alabama Department of Labor to adopt policies to recover improper overpayments of unemployment benefits. It would also allow the Alabama Department of Labor to enter into a cooperative agreement with the U.S. Department of Labor Office of Inspector General to actively detect and investigate cases of unemployment fraud.
HB 210: Hospital Discharge Data Collection
Sponsor: Rep. Paul Lee (R-Dothan)
BCA Position: Support
Status: Signed into Law
HB 210 will require the Alabama Department of Public Health to collect, compile, and analyze certain patient discharge data from certain hospitals. This bill will also require the Department of Public Health to adopt a set of rules pertaining to the protection, collection, and dissemination of hospital discharge data. This bill requires also establishes the Hospital Discharge Data Advisory Council to advise the department on rule making, as well as membership.
HB 340: Sales and Use Tax Exemption on Materials for Road/Bridge Projects
Sponsor: Rep. David Faulkner (R-Homewood)
BCA Position: Support
Status: Passed the Legislature – Awaiting Governor’s Signature
HB 340 has passed the legislature and now awaits the Governor’s signature before it becomes law. This bill would allow for the purchase of construction materials and supplies for highway, road and bridge projects that are contracted with a government entity to be exempted from sales and use taxes. Currently, a licensed contractor that enters into a contract with a government entity to undertake a project does not have to pay sales and use tax on construction materials and supplies for that project. The current law pertains to all construction contracts entered into by government entities, with the exclusion of highway, road and bridge projects. The bill’s fiscal note states that sales and tax receipts to the Education Trust Fund would be reduced by an estimated $11.5 million annually.
HB 165: Certificate of Existence Fee for Businesses
Sponsor: Rep. Reed Ingram (R-Pike Road)
BCA Position: Support
Status: Signed into Law
HB 165 has been signed into law by the Governor. This new law will allow the Secretary of State to waive the $25 Certificate of Existence fee if a state of emergency has been declared in this state or another. The fee can also be waived if the federal government determines substantial compliance with certain provisions of law unreasonable.
SB 11: Airport Authority Sales and Use Tax Exemption
Sponsor: Rep. Rex Reynolds (R-Huntsville) and Sen. Sam Givhan
BCA Position: Support
Status: Signed into Law
SB 11 has been signed into law by the Governor. This new law will exempt airport authorities from paying sales and use taxes. It will also include airport authorities in the list of governmental entities that may be issued a certificate of exemption from sales and use taxes on certain projects and in the list of governmental entities that shall obtain an annual certificate of exemption.
HB 446: Energy and Fuel Choice Protections
Sponsors: Rep. David Faulkner (R-Homewood)
BCA Position: Support
Status: Signed into Law
HB 446 has been signed into law and will provide that no governmental entity may prohibit a person or entity from using utility services from a provider that is capable of providing service and is authorized to do business in Alabama.
HB 516: Security of Critical Infrastructure
Sponsor: Rep. Scott Stadthagen (R-Hartselle)
BCA Position: Support
Status: Pending Approval by the House of Representatives
HB 516 would provide increased protections for critical infrastructure through enacting enhanced criminal penalties for the act of damaging critical infrastructure.
SB 92: Mental Health Program for Students
Sponsors: Sen. Roger Smitherman (D-Birmingham)
BCA Position: Support
Status: Pending Approval by the House of Representatives
SB 92 would require the State Department of Education to develop a program to help address the mental health of students who are considered at-risk for various mental health issues.
SB 319: Establishment of State Lottery and Gaming
Sponsor: Sen. Jim McClendon (R-Springville)
BCA Position: Monitor
Status: Pending Approval by the House of Representatives
SB 319 was substituted and approved by the House Economic Development and Tourism Committee on Tuesday. The bill was placed on the House special order calendar for Thursday; however, it never came up for debate on the House floor. This bill proposes a constitutional amendment, and if approved by the voting public, would establish the Alabama Lottery and the Alabama Lottery Commission, and The Alabama Lottery Corporation. The bill will also allow casino-style games and sports wagering at several various locations in the state. The substitute’s fiscal note estimates that the lottery will bring in an estimated $194 million to $279 million annually. It also states that the gaming component of the bill will collect an estimated $298 million to $422 million annually from the 23% state tax levied by this bill on the net gambling revenues.
SB 227: Regulations on Pharmacy Benefit Managers
Sponsors: Sen. Tom Butler (R-Huntsville)
BCA Position: Monitor
Status: Passed the Legislature – Awaiting Governor’s Signature
SB 227 has passed the legislature and awaits the Governor’s signature before becoming law. This bill would prohibit a PBM from reimbursing a PBM affiliated pharmacy more than a non-affiliated pharmacy for prescriptions for patients who are members of the same health benefit plan. It also prohibits the mandatory use of mail order pharmacy services but does allow for the optional use of mail order services, and it would require a PBM to let a pharmacy participate in a network as long as the pharmacy agrees to all of the terms and conditions of the network contract. This bill would also prohibit the mandatory use of a PBM affiliated pharmacy.
SB 126: Home Alcohol Delivery
Sponsor: Sen. Jabo Waggoner (R-Vestavia Hills)
BCA Position: Monitor
Status: Signed into Law
SB 126 was signed into law by the Governor. This new law will provide for a delivery service license issued by the Alcoholic Beverage Control Board that would allow the licensee to deliver sealed beer, wine, and spirits from certain licensed retail establishments directly to individuals in Alabama who are at least 21 years of age for their personal use.
HB 216: Consumer Data Requirements
Sponsor: Rep. Craig Lipscomb (R-Gadsden)
BCA Position: Oppose
Status: Pending Approval by the House Technology & Research Committee
HB 216 would allow a consumer to request a business to disclose personal information it collects about the consumer and to require a business to make those disclosures under certain conditions. It would also allow a consumer to request the deletion of certain personal information and require a business to delete certain personal information under certain conditions.
HB 214: Coronavirus Vaccine Discrimination
Sponsor: Rep. Chip Brown (R-Hollinger’s Island)
BCA Position: Oppose
Status: Pending Approval by the House Commerce and Small Business Committee
HB 214 would prohibit an employer from taking adverse action against an employee or prospective employee based on the employee’s immunization status. It would also prohibit a ticket issuer for an entertainment event from denying entry to the event based on immunization status.
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