Friday, Feb. 19, 2016

Ask Your Senator
to Vote ‘Yes’ on HB174

Legislation to preempt the city of Birmingham and other Alabama localities from creating a local minimum wage and mandating other benefits for private employees must receive approval by the Alabama Senate to become law.

Nationwide, some 30 cities and counties have established their own minimum wages, mostly in California. HB174 by Rep. David Faulkner, R-Birmingham, Rep. Arnold Mooney, R-Birmingham, and 51 other House co-sponsors would preempt local minimum wages in Alabama such as the one Birmingham City Council adopted last week. The Council moved up the effective date for an $8.50 local minimum wage from July 1 to March 1, giving Birmingham’s businesses just three weeks to prepare for the wage change. The city’s minimum wage would increase to $10.10 on July 1, 2017, with increases afterward tied to inflation. If HB174 becomes law, Alabama would become the eighth state with a minimum wage / paid leave preemption law.

On a vote of 71-31 Tuesday, the Alabama House approved HB174, which guarantees Alabama maintains a uniform minimum wage. The Alabama Retail Association and other major Alabama business organizations support the legislation. Read the letter those groups sent to all lawmakers this week urging them to pass HB174.

A Senate committee and the full Senate must approve HB174 before it can reach the governor’s desk and be signed into law.

Ask your senator to quickly move HB174 and vote ‘Yes’
Email your senator NOW!

Thank Sen. Jabo Waggoner, R-Vestavia Hills, who will carry the bill in the Senate.

“This bill is to maintain jobs for all Alabamians,” Faulkner told House members.

The Alabama Uniform Minimum Wage and Right-to-Work Act prohibits local governments from requiring minimum wages, paid or unpaid leave, vacation time or work schedules. It also prohibits local governments from requiring employers to grant organizing concessions to unions in exchange for assistance with a development project, a practice known as labor peace agreements.

HB174 requires a uniform minimum wage, based on state or federal law. It does not create or set a state minimum wage. Alabama is one of 21 states that use $7.25, the federal minimum, as the lowest possible wage employers can pay employees.

Three state minimum wage bills have been introduced so far in the regular session: HB70, HB71 and SB185. None are set for committee consideration at this time.

LABOR

House Passes Right-to-Work Constitutional Amendment

The Alabama House voted Wednesday to give state voters the opportunity to decide if Alabama’s right-to-work law should be part of the Alabama Constitution. The House voted 69-33 to approve HB37 by Rep. Arnold Mooney, R-Birmingham. The sponsor said the weight of the state constitution needs to be behind the 1953 law, which states Alabamians have the right to work without their membership or lack of membership in a labor union being a condition of employment. Currently, 10 of the 25 states with right-to-work laws have the provision as part of their constitution, according to the National Conference of State Legislatures. Wednesday, the Senate Fiscal Responsibility and Economic Development Committee will consider the House bill and its Senate companion SB111 by Sen. Gerald Dial, R-Lineville.

Senate Panel to Consider Child Labor Enforcement Bill

The Senate Fiscal Responsibility and Economic Development Committee on Wednesday will consider SB264 by Sen. Steve Livingston, R-Scottsboro, which would allow the Alabama Department of Labor to file an action to collect civil penalties against an employer for child labor law violations in the circuit court of the county where the violation occurred.

DATA SECURITY

Data Breach Notification Bill in Committee Next Week

A data breach notification bill, SB238, introduced this week by Sen. Arthur Orr, R-Decatur, will be considered Wednesday by the Senate Fiscal Responsibility and Economic Development Committee. Alabama would become the 48th state to provide consumers with timely notification of data breaches, if Orr’s bill becomes law. New Mexico and South Dakota also have no data breach notification law.

The Alabama Information Protection Act of 2016 requires breached entities to notify Alabama’s attorney general, Alabama residents whose information has been compromised and credit-reporting agencies of breaches involving more than 1,000 that could result in financial harm to the individuals. The notifications are to occur within 60 days of the determination of a breach with a possible 15-day extension if requested before the 60 days end. Law enforcement agencies also can delay a notification.

Compromised information that would qualify as a notifiable breach would be the individual’s first name or initial and last name in combination with any one of these data elements:

  • A Social Security number.
  • Driver’s license or state-issued identification card number.
  • A financial account, credit or debit card number along with a required security code, PIN, access code or password necessary to access the account.

Failure to comply with the act would be considered a deceptive trade practice and not a criminal offense. The legislation also does not establish a new private cause of action for a civil lawsuit. Violators face penalties of up to $50,000 for each breach, not each individual affected.

Data security is a primary concern of all retailers, even though the industry accounted for only 8 percent of the confirmed breaches in 2014, according to the 2015 Verizon Data Breach Investigations Report.

TAX ISSUES

Bill Tweaks Remote Sellers’
Voluntary Collection of Sales Taxes

The House Ways and Means General Fund Committee approved legislation Wednesday that would allow eligible remote sellers to continue to participate in a voluntary program for collecting Alabama sales taxes, under certain circumstances, even if the seller later establishes a physical presence in our state. HB116 by Rep. Rod Scott, D-Fairfield, revises the Simplified Seller Use Tax Remittance Act (Act No. 2015-448), which the Legislature approved in its last regular session. That law allows remote sellers without a physical presence in Alabama to collect a flat 8-percent sales tax from Alabama residents who buy their merchandise. The bill now goes to the full House. Sen. Trip Pittman, R-Daphne, this week introduced the Senate companion, SB233. The Senate Finance and Taxation General Fund Committee will consider it Wednesday.

Senate Passes Tax Credits
for Hiring Certain Workers

The Alabama Senate on Thursday approved tax credits for hiring certain workers:

  • Expansion of Hiring Tax Credit for Out-of-Work Veterans Headed to House: On a unanimous vote, the Senate agreed to remove the requirement from the 2012 Heroes for Hire Act that unemployed veterans hired or starting their own business must have been deployed in the past two years for their employer to claim a $1,000 tax credit. SB75 by Sen. Gerald Dial, R-Lineville, also renames the act, the Veterans Employment Act. The House companion, HB179, awaits action by the House Ways and Means Education Committee.
  • Senate Amends, Approves Apprentice Tax Credit: An amended version of legislation to provide a $1,000 income tax credit to an employer for each qualified apprentice employed is headed to the House. The Alabama Senate on Thursday approved SB90 by Sen. Arthur Orr, R-Decatur. “This bill will get workers trained to bring more jobs to Alabama,” Orr said. The Senate Finance and Taxation Education Committee had the House companion, HB217 by Rep. Ken Johnson, R-Moulton, on its agenda this week, but did not vote on the bill.

A third piece of tax credit legislation, which has already received House approval, will be considered next week in the Senate Fiscal Responsibility and Economic Development Committee. HB36 by Rep. Kyle South, R-Fayette, provides a one-time, $1,500 income tax credit to Alabama businesses with 75 or fewer employees, for each qualified, new, full-time, Alabama resident employee hired. It allows for an additional $1,000 income tax credit (for a total of $2,500) if the new employee hired is a recently returned, unemployed veteran as part of the Heroes for Hire Act passed in 2012. To qualify for the credit, businesses must retain the new employee for a full year, and the employee must make $40,000 or more annually. In addition, businesses must show a net employee growth each year to qualify for the credit.

Senator Proposes Taxing Digital Goods

Sen. Trip Pittman, R-Daphne, introduced legislation this week that would make “digital goods” in Alabama subject to sales or use tax. The bill also amends the definition of “wholesale sale” so fewer sales fit that definition.

SB242 defines “tangible personal property” and “digital goods” and includes digital goods under the definition of personal property, but it does not specify any products, nor does it stipulate exactly what electronically transmitted services would be subject to tax.

The bill also requires that an ingredient or component used to make a finished product be used with the intent to become a part of that product and remain a part of that product to qualify as a wholesale sale that is not subject to tax.

SB242 expands the definition of “capital equipment, machinery, tools, or product” to mean any property that can be depreciated or expensed. Consequently, any “capital equipment, machinery, tools, or product” that can be depreciated or expensed would not qualify as a wholesale sale and would be taxable as a retail sale.

On top of the lack of clarity on exactly what “digital goods” or formerly wholesale sales are suddenly taxable, the bill has an immediate effective date, giving retailers no time to prepare to collect those sales taxes.

The bill awaits action by the Senate Finance and Taxation Education Committee.

Senate Panel to Consider Revision
to Economic Development Tax Abatements

The Senate Fiscal Responsibility and Economic Development Committee next week will consider SB96 by Sen. Dick Brewbaker, R-Montgomery, which would specify that a municipality or public industrial authority may abate county taxes for economic development purposes only if the corresponding municipal tax is abated and the abatement is limited to the same rate of taxation as the corresponding municipal tax.

ELECTIONS

Crawford Fills House Vacancy;
Begins Work Immediately

Rep. Danny Crawford, R-Athens, was elected Tuesday, took the oath of office Wednesday and immediately began his first day on the job as an Alabama legislator. Crawford fills the term of Rep. Dan Williams,who died in July after a battle with leukemia. The Alabama Retail Association supported candidate was elected with 59 percent of the vote. “I feel blessed to represent District 5 following Dan Williams,” Crawford said on the House floor after taking the oath of office.

RIGHT FOR RETAILERS-Crawford

WORKERS’ COMPENSATION

Revisions to Workers’ Comp Disability
and Medical Benefits in Committee Next Week

The Senate Fiscal Responsibility and Economic Development Committee on Wednesday is scheduled to consider a bill revising workers’ compensation benefits. SB122 by Sen. Arthur Orr, R-Decatur, would:

  • end an employer’s liability for permanent total disability benefits after the disabled employee turns 65 or 500 weeks after the injury, whichever is longer; and
  • end the obligation of an employer to pay medical benefits if an employee does not receive medical attention for a claimed work injury for four years. After two years, the employer would be liable for medical treatment only with clear and convincing proof that the treatment is related to a workers’ compensation injury.

ALCOHOL

Panel OKs Limited Retail Sales at Breweries

Rep. Anthony DanielsOn a voice vote after a public hearing, the House Economic Development and Tourism Committee on Wednesday approved HB176 by Rep. Anthony Daniels (pictured), D-Huntsville, which would allow breweries and brewpubs to engage in limited retail sales of their products. The bill now goes to the full House.

The legislation recommended by the Alabama Alcoholic Beverage Study Commission would allow small brewers and brewpubs producing less than 60,000 barrels of beer annually to sell up to 288 ounces of beer per day to a customer for off-premise consumption. The bill also allows brewers to directly deliver up to two kegs per event to charity functions.

The Senate Fiscal Responsibility and Economic Development Committee on Wednesday will consider the Senate companion, SB211 by Sen. Bill Holtzclaw, R-Madison.

Other bills recommended by the commission also are on the Senate committee’s Wednesday agenda:

  • SB132 by Sen. Bobby Singleton, D-Greensboro, which would allow an Alabama distillery to sell a standard-size bottle (up to 750 milliliters) per customer, per day from its premises for off-premise consumption only. The House companion, HB46 by Rep. Alan Boothe, R-Troy, is ready for House consideration.
  • SB166 by Sen. Linda Coleman-Madison, D-Birmingham, which would allow a licensed winery to obtain a permit to operate one additional tasting room outside its on-site tasting room. The House companion, HB83 by Rep. David Faulkner, R-Birmingham, and Rep. Alan Harper, R-Aliceville, is on the House Economic Development and Tourism Committee agenda for Wednesday.

House OKs Lexington Draft Beer Bill

The Alabama House on Wednesday approved HB140 by Rep. Lynn Greer, R-Rogersville, which would allow voters in the town of Lexington to decide if they want six-day draft beer sales. The bill now moves to a Senate local government committee.

Liquor and Wine Tasting Bills
Head to House and Senate

House and Senate committees this week approved companion bills that would allow licensed distilleries or wineries to conduct liquor and wine tastings, at no charge to consumers, in retail and state liquor stores.

Under HB148 by Rep. Becky Nordgren, R-Gadsden, and SB219, by Sen. Billy Beasley, D-Clayton, one-quarter ounce of liquor with no more than two products or one ounce of wine with no more than four products could be served at any tasting. The bills also specify that no more than 10 percent of state liquor stores can have tastings in 2016; no more than 20 percent in 2017 and no more than 28 percent in 2018 and beyond.

Both bills are now ready for consideration by their respective chambers.

Committee Approves Bill Lengthening
Time Between Wet/Dry Elections

The House County and Municipal Government Committee on Wednesday approved HB219 by Rep. Ken Johnson, R-Moulton, which would lengthen the time between wet/dry referendums from 720 days to 1,440 days. The bill now goes to the full House.

House Panel OKs Creation
of Another Community Development District

The House Economic Development and Tourism Committee on Wednesday approved a substitute version of HB69 by Rep. Mark Tuggle, R-Alexander City to create an additional marina community development district that could be authorized for on-premise Sunday alcohol sales. The parameters of the district are a seating capacity of at least 120, adjacent to a 34-or-more-boat-slip marina, with a marina and restaurant under common ownership on a lake that has at least 400 miles of shoreline and contains a hydroelectric facility controlled or operated by the Alabama Power Co. The bill now goes to the full House.

HEALTH

Bill Would Outlaw Sale
of Adjustable Focus Eyewear

Sen. Jim McClendon, R-Springville, introduced legislation this week that would halt the sale of adjustable focus eyewear in Alabama. SB245 sets lens requirements for over-the-counter eyewear that would preclude the sale of glasses with an adjustable magnification, a technology that is being marketed worldwide by Adlens. SB245 defines over-the-counter spectacles as “nonprescription, ready-to-wear magnifying spectacles or glasses that contain spherical convex lenses, uniform in each meridian, which are encased in eyeglass frames and intended to ameliorate the symptoms of presbyopia. The lenses in over-the-counter spectacles may not have a minus power (-) and may not exceed plus three diopters (+3.00).”

The bill makes failure to conform to that definition a violation enforceable by the Alabama Board of Optometry, a district attorney or the attorney general. The Senate Health and Human Services Committee will consider it Wednesday.

LEGAL

Bill Would Lower Age of Majority

Rep. Bill Poole, R-Tuscaloosa, this week introduced HB256, which would lower the age of majority to 18 years with several exceptions. For instance, selling or providing cigarettes to anyone under the age of 19 would still be illegal, and those under 19 still will be unable to take out a loan. The bill has been assigned to the House Judiciary Committee.

NEXT LEGISLATIVE DAY

The Alabama House of Representatives will convene at 1:30 p.m. Tuesday, Feb. 23, for the eighth legislative day of the Alabama Legislature’s 2016 regular session. The Alabama Senate will convene at 2 p.m.