Friday, March 4, 2016
Focus on Budgets Next Week;
After Tuesday’s Election, Session Slows
After the excitement of Tuesday’s primary and its results, the Alabama Legislature slowed its pace a bit this week and appears ready to begin evaluating the state’s budgets in earnest next week. In the primary, all of the Alabama Retail Association endorsed candidates won their party’s nomination with 60 percent of the vote or more (See ELECTIONS).
The House education budget committee this week approved a $6.3 billion education spending plan for 2017 (HB117) as well as a 4 percent raise for many education employees and the hiring of 475 new teachers for middle and high schools. The package is expected to reach the full House on Tuesday of next week. Meanwhile, the speaker’s chief of staff said a House committee could begin consideration of the Senate’s $1.8 billion General Fund budget next week as well. “The House is going to be all about the budgets for the next couple of weeks,” House Speaker Mike Hubbard’s chief of staff, Jim Entrekin, said. “There’s a chance we’ll have both budgets out by the end of the month,” he added.
After two, three-meeting-day weeks, the Legislature had a traditional two-day week and is expected to continue that tradition for the remainder of the session. The Legislature has completed 12 of the allotted 30 days for a regular session. It is expected to complete the current session by mid-May.
TAX ISSUES
House and Senate Vote to Require Counties to Hire
Outside Counsel for Property Tax Assessment Appeals
In unanimous votes this week, the Alabama House and Senate passed companion bills that would require county commissions to hire outside legal counsel for both the state and counties when property tax assessments are appealed to a circuit court. Right now, the district attorney represents the state and counties in property tax assessment appeals.
HB50 by Rep. Paul Lee, R-Dothan, and SB128 by Sen. Phil Williams, R-Rainbow City, now go the County and Municipal Government committees for the opposite chamber.
Tax Credit for Hiring Apprentices Ready for Final OK
The House Ways and Means Education Committee on Wednesday approved SB90 by Sen. Arthur Orr, R-Decatur, which provides a $1,000 income tax credit to an employer for each qualified apprentice employed. The bill now goes to the full House for final approval. The House companion, HB217 by Rep. Ken Johnson, R-Moulton, awaits action by the Senate Finance and Taxation Education Committee.
Companion Bills Link State Income
Tax Returns to Federal Due Dates
House and Senate committees this week approved companion bills that require the due dates for state income tax returns to correspond to the due dates for federal returns. It also mandates payment to be made on the return’s due date. The federal government last year moved the due date for partnership returns from April 15 to March 15 and C corporation returns from March 15 to April 15. SB263 by Sen. Quinton T. Ross Jr., D-Montgomery, now goes to the full Senate, and HB251 by Rep. Anthony Daniels, D-Huntsville, now goes to the full House.
Revision to Remote Sellers’ Voluntary Collection
of Sales Taxes in Committee Next Week
Companion bills that would revise the 2015 Simplified Seller Use Tax Remittance Act are in committee next week. The Senate Finance and Taxation General Fund Committee will consider HB116 by Rep. Rod Scott, D-Fairfield; while the House Ways and Means General Fund Committee will consider SB233 by Sen. Trip Pittman, R-Daphne.
Bill Would Exempt Video Programming
Services From Rental, Sales and Use Taxes
Rep. Ed Henry, R-Hartselle, this week introduced legislation that would exempt video programming services (such as streaming) — including subscription services, video-on-demand television services and broadcasting services — from rental, sales and use taxes. It does not exempt software that is purchased and downloaded onto a computer for permanent use. HB349 has been assigned to the House State Government Committee.
LABOR
Right-to-Work Constitutional Amendment
Ready for Senate Consideration
If Alabama voters agree, the state could become the 11th in the nation to include its right-to-work law as a part of its constitution, Sen. Gerald Dial, R-Lineville, told the Senate Fiscal Responsibility and Economic Development Committee on Tuesday. The committee on a vote of 9-1 approved HB37 by Rep. Arnold Mooney, R-Birmingham, which seeks to put the weight of the state constitution behind Alabama’s 1953 right-to-work law. That law states Alabamians have the right to work without their membership or lack of membership in a labor union being a condition of employment. The House bill now goes to the full Senate for approval. Dial asked that the committee indefinitely postpone consideration of SB111, the Senate companion, which Dial sponsored.
Senate Panel OKs Allowing Labor Dept.
to File Civil Action to Collect Child Labor Penalties
The Senate Fiscal Responsibility and Economic Development Committee on Wednesday approved 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. The bill now goes to the full Senate.
LEGAL
Bill Clarifies Only DA or AG Can File Class Action
Under State’s Deceptive Trade Practices Act
The Senate Judiciary Committee on Wednesday amended and approved SB270 by Sen. Phil Williams, R-Rainbow City, which clarifies that the Alabama Deceptive Trade Practices Act only allows the attorney general or a district attorney to file a class action under the act. “That was the Legislature’s intent all along,” Williams told the committee. The bill now goes to the full Senate for consideration.
A 2015 ruling by the 11th U.S. Circuit Court of Appeals considered the class-action provision of the Alabama law as “procedural and not substantive,” Williams said, adding that his bill makes it clear that “this law is substantive.” Private causes of the action would still exist, Williams said. He said the bill simply makes the state’s law what it was before the court ruling.
Learn more about the court ruling here: Federal ruling opens door for Alabama class actions
Limited Partnership Reform Could Be
Considered by Senate or House
The Senate Judiciary Committee approved legislation that modifies the state’s Alabama Limited Partnership law to reflect current case law, the bill’s sponsor Sen. Cam Ward, R-Alabaster, told the committee Wednesday. SB151 was written by the Alabama Law Institute, Ward said. The House Judiciary Committee has approved the companion bill, HB202 by Rep. Bill Poole, R-Tuscaloosa. Both bills await consideration by their respective chambers.
ALCOHOL
House OKs Limited Retail Sales for Small Breweries
On a vote of 68-17 Tuesday, the Alabama House approved HB176 by Rep. Anthony Daniels, D-Huntsville, which would allow breweries and brewpubs to engage in limited retail sales of their products. 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. Currently, breweries can only sell beer for off-premises consumption through a licensed wholesaler. The Senate companion is SB211 by Sen. Bill Holtzclaw, R-Madison, awaits action by the full Senate.
Shelby County Sunday Sales Approved
About 70 percent of Shelby County voters approved a constitutional amendment Tuesday allowing alcoholic beverage sales after noon on Sundays in that county. The Sunday sales legalization was effective immediately, according to the Secretary of State's general counsel.
Ashland and Lineville Approve Alcohol Sales
Ashland and Lineville voters in Tuesday’s election legalized alcohol sales for those cities. Retailers wishing to sell alcohol there must apply for licenses from both the Alabama Alcoholic Beverage Control Board and each city government. The city councils are developing ordinances to regulate the cities’ alcohol sales, including determining at what types of businesses those sales can take place. Alcohol sales remain illegal in Clay County outside those two cities.
Montgomery Delegation to Consider
5% Liquor Tax to Benefit DA
Monday, the House Montgomery legislative delegation will consider HB281 by Rep. Dimitri Polizos, R-Montgomery, which would level an additional five percent sales tax on the retail and wholesale price of all spirituous or vinous liquors sold in Montgomery County with proceeds going to the district attorney’s office.
HEALTH
Committees to Consider Granting
Anti-Trust Liability Immunity to Pharmacy Board
Companion bills are in committee next week that would give the Alabama Board of Pharmacy and its members immunity from liability under state and federal anti-trust laws for adopting pharmarcy rules that prioritize “patient safety and wellness but may be anti-competitive.”
The House Health Committee will conduct a public hearing Wednesday on HB320 by Rep. Ron Johnson, R-Sylacauga, while the Senate Health and Human Services Committee will consider SB310 by Sen. Billy Beasley, D-Clayton.
House Panel to Consider Outlawing
Sale of Adjustable Focus Eyewear
The House Health Committee on Wednesday will consider HB336 by Rep. April Weaver, R-Brierfield, which would halt the sale of adjustable focus eyewear in Alabama. The Senate companion, SB245 by Sen. Jim McClendon, R-Springville, is ready for consideration by the full Senate.
Pharmacy Tech Training Bill in Senate Committee
The Senate Health and Human Services Committee next week will consider SB299 by Sen. Billy Beasley, D-Clayton, under which the Alabama Pharmacy Board would “adopt rules concerning the training of pharmacy technicians.” The House companion, HB304 by Rep. Elaine Beech, D-Chatom, awaits action by the House Boards, Agencies and Commissions Committee.
INTRODUCTIONS
RCO Administrative Costs, Exclusions
for What Counts as an Employee
for Workers’ Comp Among Introductions
HB361 by Rep. John F. Knight Jr., D-Montgomery, limits the administrative costs that may be paid to regional care organizations, the community-based managed care structure that will administer the state’s Medicaid program, beginning Oct. 1. The bill specifies that administrative costs cannot exceed the average administrative cost of the Alabama Medicaid Agency over the last five fiscal years. Knight’s bill has been assigned to the House Ways and Means General Fund Committee.
HB359 by Rep. Barry Moore, R-Enterprise, excludes anyone owning 50 percent or more of a business in determining the number of employees a business has in regard to workers’ compensation requirements. Currently, employers are not required to provide workers’ compensation insurance if they employ fewer than five employees. Moore’s bill would exclude owners from counting as an employee. The bill has been assigned to the House Commerce and Small Business Committee.
ELECTIONS
All Alabama Retail Candidates
Nominated in Record Turnout
Alabamians cast almost 1.3 million votes Tuesday with overall turnout at 41.4 percent, a record for a primary election.
All six of the candidates endorsed by the Alabama Retail Association won their party’s nomination. Several were elected outright as they have no challengers in the November General Election.
Senate
Even with four challengers, U.S. Sen. Richard Shelby, R-Tuscaloosa, won the party nomination with 65 percent of the vote. He faces a Democratic challenger in November.
Congressional
- District 1: U.S. Rep. Bradley Byrne, R-Fairhope, was elected with 60 percent of the vote. He has no Democratic challenger.
- District 2: U.S. Rep. Martha Roby, R-Montgomery, won the nomination with 66 percent of the vote. She has a Democratic challenger.
- District 3: U.S. Rep. Mike Rogers, R-Saks, was nominated with 76 percent of the vote but has a challenger in November.
- District 4: U.S. Rep. Robert Aderholt, R-Haleyville, won with 81 percent of the vote and faces no challenger in November.
Alabama Supreme Court
Place 3 Alabama Supreme Court Justice Tom Parker won with 73 percent of the vote. He has no challenger in November.
NEXT LEGISLATIVE DAY
The Alabama House of Representatives will convene at 1 p.m. Tuesday, March 8, for the 13th legislative day of the Alabama Legislature’s 2016 regular session. The Alabama Senate convenes at 2 p.m.
