Contributed by Beth Marietta Lyons
Lyons Law Firm
The Alabama Legislature convened for day 3 of the annual Regular Session on Tuesday, January 16. Committee meetings originally scheduled for Wednesday were cancelled due to weather conditions. Some of the meetings were rescheduled for Thursday while others were postponed until next week. Both Houses convened briefly on Thursday, January 18 but recessed so that members could attend committee meetings.
There have been 461 bills introduced to date. Thirteen committees met to consider multiple bills.
The Legislature will return to Montgomery on Tuesday, January 23 for day 5 of the Session with the Senate convening at 2:00 p.m. and the House at 3:00 p.m. Twenty-three committees have scheduled meetings as of the time of this report.
SIGNIFICANT INTRODUCTIONS THIS WEEK
A bill was introduced in the House that would provide for all candidates to be on one ballot for the primary election; the two candidates who receive the highest number of votes, regardless of party affiliation, would be placed on the general election ballot. The bill is pending in the House Constitution, Campaigns and Elections Committee [HB214 by Representative Mike Ball].
A bill was introduced in the House that would provide for the redistribution of in-lieu-of-taxes payments made by the Tennessee Valley Authority. The bill is pending in the House Ways and Means General Fund Committee [HB215 by Representative Chris Pringle].
A proposed Constitutional Amendment was introduced in the House that would provide that the people may propose the enactment of general laws and constitutional amendments by an initiative measure and ratify or reject statutes and resolutions by referendum subject to the same limitations imposed on the Legislature. The bill is pending in the House Constitution, Campaigns and Elections Committee [HB235 by Representative Isaac Whorton].
A bill was introduced in the House that would exempt the sale of food from sales and use taxes beginning September 1, 2018. The bill is pending in the House Ways and Means Education Committee [HB238 by Representative John Knight].
A bill was introduced in the House that would allow public schools, as a portion of instruction regarding the scientific origins of man and earth, to include the Biblical theory of creation as long as evolution is also taught. The bill is pending in the House Education Policy Committee [HB258 by Representative Steve Hurst].
A bill was introduced in the House that would clarify that an agricultural trade or business that purchases and installs irrigation equipment or a reservoir may claim one tax credit during tax years 2011 through 2017 and one tax credit during tax years 2018 through 2022. The bill is pending in the House Ways and Means Education Committee [HB260 by Representative Donnie Chesteen].
A bill was introduced in the Senate that would require an entity entering into a public-private agreement of $50,000 or more to occur on public property or public right-of-way to be subjected to certain requirements public works contracts. The bill is pending in the Senate Governmental Affairs Committee [SB184 by Senator Arthur Orr].
A proposed Constitutional Amendment was introduced in the Senate that would require any tax credit, exemption, deduction of preferential tax rate enacted in 2019 or later to expire within seven years of the effective date unless extended by the Legislature. The bill is pending in the Senate Fiscal Responsibility and Economic Development Committee [SB187 by Senator Bill Hightower].
SIGNIFICANT COMMITTEE ACTION THIS WEEK
The Senate Finance and Taxation General Fund Committee held a public hearing, but did not vote, on a bill that would amend the Simplified Sellers Use Tax Program. This would allow online sellers, even when they have a retail sales facility in the state, to participate in the program and pay a lower sales tax rate [SB130 by Senator Trip Pittman].
The Senate Finance and Taxation General Fund Committee held a public hearing, but did not vote, on a bill that would remove or amend the distribution of some state tax revenues [SB131 by Senator Trip Pittman].
The Senate Tourism and Marketing Committee gave a favorable report, with the understanding that a substitute bill was being negotiated, to a bill that would prohibit municipalities from regulating transportation network companies (Uber, Lyft) and provide for permitting and licensing by the Public Service Commission. The bill now goes to the full Senate [SB143 by Senator Bobby Singleton].
The Senate Judiciary Committee gave a favorable report to a bill that would provide for the voluntary transfer of a case from municipal court to the county district or circuit court when the defendant qualifies for a pretrial diversion program, mental health court, veteran court or similar program. The bill now goes to the full Senate [SB37 by Senator Cam Ward].
The Senate Governmental Affairs Committee gave a favorable report to a bill that would revise some of the procedures related to the Alabama Disaster Recovery Program. The bill now goes to the full Senate [SB43 by Senator Greg Albritton].
The Senate Judiciary Committee gave a favorable report to a bill that would give the Poarch Band of Creek Indians the power and authority to employ police officers for the protection of the reservation and the tribe. The bill now goes to the full Senate [SB170 by Senator Greg Albritton].
The House Transportation, Utilities and Infrastructure Committee gave a favorable report to a bill that would create the State Transportation Commission. The bill now goes to the full House [HB25 by Representative Chris Pringle].
The House Judiciary Committee gave a favorable report to a bill that would provide for the termination of parental rights of any person who commits the crime of rape in the first degree if the rape results in the conception of the child. The bill now goes to the full House [HB38 by Representative Jack (JD) Williams].
SIGNIFICANT FLOOR ACTION THIS WEEK
The Senate carried over a bill that would extend the State Pilotage Commission [SB74 by Senator
The Senate amended and passed a bill that would require county and municipal police departments and the Alabama Law Enforcement Agency to adopt written policies to prohibit racial profiling, compile statistic on traffic stops and file reports with the Attorney General’s Office. The bill is now pending in the House Judiciary Committee [SB84 by Senator Rodger Smitherman].
The Senate passed a bill that would abolish the requirement that a marriage license be issued by the judge of probate; instead the marriage would be entered into by contract which would be recorded with the judge of probate following execution. The bill is now pending in the House Economic Development and Tourism Committee [SB13 by Senator Greg Albritton].
The Senate passed a bill that would give counties the authority to abate rollback ad valorem taxes for certain projects that qualify for the incentives under the Alabama Jobs Act. The bill is now pending in the House Economic Development and Tourism Committee [SB98 by Senator Arthur Orr].
The House passed a bill that would offer active and retired military personnel free admission to all Alabama State Parks on state and federal holidays. The bill is now pending in the Senate Veterans and Military Affairs Committee [HB58 by Representative Dickie Drake].
The House passed a bill that would allow certain small businesses to qualify for a tax credit for hiring an unemployed veteran regardless of when the veteran was discharged from active service. The bill is now pending in the Senate Veterans and Military Affairs Committee [HB83 by Representative Connie Rowe].
The House passed a bill that would require a right-of-redemption claim be exercised no later than one year after the date of foreclosure. The bill is now pending in the Senate Banking and Insurance Committee [HB90 by Representative Kerry Rich].
The House passed a bill that would substantially revise the provisions governing the operation of the Department of Examiners of Public Accounts. The bill is now pending in the Senate Governmental Affairs Committee [HB131 by Representative Chris Pringle].
The State General Fund Budget, HB 156 by Rep. Clouse and SB 178 by Sen. Pittman, are pending in the House Ways and Means General Fund Committee and the Senate Finance and Taxation General Fund Committee, respectively.
The Education Trust Fund Budget, HB175 by Rep. Poole and SB165 by Sen. Orr, is pending in the House Ways and Means Education Committee and the Senate Finance and Taxation Education Committee
- Bills introduced: 461
- Bills that have passed chamber of origin: 30
- Bills that have passed both houses: 0
- Bills waiting for governor’s signature: 0
House passes General Fund Budget
By Brandon Moseley
Alabama Political Reporter
The Alabama House of Representatives passed the state General Fund Budget on Tuesday.
The General Fund Budget for the 2019 fiscal year is Senate Bill 178. It is sponsored by Sen. Trip Pittman, R-Montrose. State Rep. Steve Clouse, R-Ozark, carried the budget on the House floor. Clouse chairs the House Ways and Means General Fund Committee.
Clouse said, “Last year we monetized the BP settlement money and held over $97 million to this year.”
Clouse said that the state is still trying to come up with a solution to the federal lawsuit over the state prisons. The Governor’s Office has made some progress after she took over from Gov. Robert Bentley. The supplemental we just passed added $30 million to prisons.
The budget adds $50 million to the Department of Corrections.
Clouse said that the budget increased the money for prisons by $55,680,000 and includes $4.8 million to buy the privately-owned prison facility in Perry County.
Clouse said that the budget raises funding for the judicial system and raises the appropriation for the Forensic Sciences to $11.7 million.
The House passed a committee substitute so the Senate is either going to have to concur with the changes made by the House or a conference committee will have to be appointed. Clouse told reporters that he hoped that it did not have to go to conference.
Clouse said that the budget had added $860,000 to hire more Juvenile Probation Officers. After talking to officials with the court system that was cut in half in the amendment. The amendment also includes some wording the arbiters in the court lawsuit think we need.
The state General Fund Budget, SB178, passed 98-1.
Both budgets have now passed the Alabama House of Representatives.
The 2019 fiscal year begins on Oct. 1, 2018.
In addition to the SGF, the House also passed a supplemental appropriation for the current 2018 budget year. SB175 is also sponsored by Pittman and was carried by Clouse on the floor of the House.
SB175 includes $30 million in additional 2018 money for the Department of Corrections. The Departmental Emergency Fund, the Examiners of Public Accounts, the Insurance Department and Forensic Sciences received additional money.
Clouse said, “We knew dealing with the federal lawsuit was going to be expensive. We are adding $80 million to the Department of Corrections.”
State Representative Johnny Mack Morrow, R-Red Bay, said that state Department of Forensics was cut from $14 million to $9 million. “Why are we adding money for DA and courts if we don’t have money for forensics to provide evidence? if there is any agency in law enforcement or the court system that should be funded it is Forensics.”
The supplemental 2018 appropriation passed 80 to 1.
The House also passed SB203. It was sponsored by Pittman and was carried in the House by State Rep. Ken Johnson, R-Moulton. It raises securities and registration fees for agents and investment advisors. It increases the filing fees for certain management investment companies. Johnson said that those fees had not been adjusted since 2009.
The House also passed SB176, which is an annual appropriation for the Coalition Against Domestic Violence. The bill requires that the agency have an operations plan, audited financial statement, and quarterly and end of year reports. SB176 is sponsored by Pittman and was carried on the House floor by State Rep. Elaine Beech, D-Chatham.
The House passed Senate Bill 185 which gives state employees a cost of living increase in the 2019 budget beginning on October 1. It was sponsored by Sen. Clyde Chambliss, R-Prattville and was being carried on the House floor by state Rep. Dimitri Polizos, R-Montgomery.
Polizos said that this was the first raise for non-education state employees in nine years. It is a 3 percent raise.
SB185 passed 101-0.
Senate Bill 215 gives retired state employees a one time bonus check. SB215 is sponsored by Senator Gerald Dial, R-Lineville, and was carried on the House floor by state Rep. Kerry Rich, R-Guntersville.
Rich said that retired employees will get a bonus $1 for every month that they worked for the state. For employees who retired with 25 years of service that will be a $300 one time bonus. A 20-year retiree would get $240 and a 35-year employee would get $420.
SB215 passed the House 87-0.
The House passed Senate Bill 231, which is the appropriation bill increase amount to the Emergency Forest Fire and Insect and Disease Fund. SB231 is sponsored by Sen. Steve Livingston, R-Scottsboro, and was carried on the House floor by state Rep. Kyle South, R-Fayette.
State Rep. Elaine Beech, D-Chathom, said, “Thank you for bringing this bill my district is full of trees and you never know when a forest fire will hit.
SB231 passed 87-2.
The state of Alabama is unique among the states in that most of the money is earmarked for specific purposes allowing the Legislature little year-to-year flexibility in moving funds around.
The SGF includes appropriations for the Alabama Medicaid Agency, the courts, the Alabama Law Enforcement Agency, the Alabama Department of Corrections, mental health, and most state agencies that are no education related. The Alabama Department of Transportation gets their funding mostly from state fuel taxes.
The Legislature also gives ALEA a portion of the gas taxes. K-12 education, the two year college system, and all the universities get their state support from the education trust fund (ETF) budget. There are also billions of dollars in revenue that are earmarked for a variety of purposes that does not show up in the SGF or ETF budgets.
Examples of that include the Public Service Commission, which collects utility taxes from the industries that it regulates. The PSC is supported entirely by its own revenue streams and contributes $13 million to the SGF. The Secretary of State’s Office is entirely funded by its corporate filing and other fees and gets no SGF appropriation.
Clouse warned reporters that part of the reason this budget had so much money was due to the BP oil spill settlement that provided money for the 2018 budget and $97 million for the 2019 budget. Clouse said they elected to make a $13 million repayment to the Alabama Trust fund that was not due until 2020 but that is all that was held over for 2020.
Clouse predicted that the Legislature will have to make some hard decisions about revenue in next year’s session.
Day Care bill delayed for second time on Senate floor, may be back Thursday
By Samuel Mattison
Alabama Political Reporter
The day care bill, which would license certain day care centers in Alabama, was once again delayed on the state Senate floor after one lawmaker requested more information.
Its brief appearance Tuesday ended with state Sen. Gerald Dial, R-Lineville, saying a compromise had not yet been worked out with the bill’s detractors.
Alabama’s Senate has been hesitant to act on the legislation because of complaints of state Sen. Shay Shelnutt, R-Trussville, who has been an opponent of the bill since its introduction last year. The bill’s delay on Tuesday marks the second time its been taken off the Senate’s agenda.
The bill has had a rocky time in this year’s session, but the bill’s sponsor state Rep. Pebblin Warren, D-Tuskegee, said she is still confident about its passage out of the Legislature.
Warren, D-Tuskegee, filed the bill this session with the support of influential lawmakers including Gov. Kay Ivey, who told reporters last year that she though all day cares should be licensed.
Mainly sparked by the death of 5-year-old boy in the care of a unlicensed day care worker, the bill had great momentum coming into this year’ session.
Despite the growing support from lawmakers, Religious groups had concerns that the bill would increase state-sponsored reach into religious day cares in churches and non-profit groups.
Spearheading the dissenters was Alabama Citizens Action Program, a conservative religious-based PAC.
Warren, proponents, and ALCAP announced a compromise to the bill while it was still in the Alabama House.
Announced by ALCAP originally, the new bill was a weaker version in that it did not require that all day cares in the state be regulated. Instead, religious-based day cares would only need to be registered if they received federal funds. At a Senate committee meeting in February, Warren said a similar requirement was about to come from federal law in Congress.
The bill moved through the House in a overwhelming vote in favor of the proposal and passed unanimously out of a Senate committee a few weeks ago.
Warren, speaking to reporters after its passage from the House, said she was unsure if the bill would encounter resistance in the upper chamber.
It was the Senate that killed the daycare bill last year amid a cramped last day where senators took the bill off the floor. The bill may face similar complications this year, as lawmakers seem to be preparing to adjourn within a few weeks.
Fantasy sports bill fails on Senate floor
By Samuel Mattison
Alabama Political Reporter
Would-be Fantasy Sports players in Alabama will have to wait to legally play in the state following a Senate vote on Tuesday.
The Alabama Senate decisively killed a bill to exempt fantasy sports from the state’s prohibition on gambling.
Not even entertaining a debate on the Senate floor, the proposal was killed during a vote for the Budget Isolation Resolution, which is usually a formality vote preluding a debate.
Fantasy sports are contests where participants select players from real teams to compete on fantasy teams using the real-world players’ stats.
Since 2016, the practice has been illegal in Alabama following a legal decision by the Attorney General’s Office that categorized it as gambling.
The bill’s sponsor, state Sen. Paul Sanford, R-Huntsville, predicted the bill’s failure during a committee meeting two weeks ago, where the bill passed unanimously.
- Sen. Paul Sanford speaks to reporters after a Senate Committee meeting on Feb. 28, 2018. (Samuel Mattison/APR)
Speaking to reporter’s after the committee meeting, Sanford said the decision to file the bill was mainly a philosophical belief that the practice shouldn’t be illegal.
Sanford, a fantasy sports player before its ban, said that fantasy sports are a way to bring people closer together and not a means to win money. The Huntsville senator is not seeking re-election.
The bill’s failure in the Senate follows its trajectory last year too. A similar version of the bill, also sponsored by Sanford, failed in the Senate during the final days of the 2017 Legislative Session.
Since Sanford is retiring, it is unclear if the bill will even come back next session, or if it will even have a Senate sponsor.
House OKs bill to clarify consulting contracts by state legislators
By Brandon Moseley
Alabama Political Reporter
Tuesday, the Alabama House of Representatives passed a bill to try to clarify how legislators accept consulting contracts under Alabama’s 2010 ethics law. Some pundits have suggested that House Bill 387 is actually designed to weaken the existing ethics law.
Sponsor state Rep. Rich Wingo, R-Tuscaloosa, argues that the legislation is merely a clarification and is intended to prevent legislators from inadvertently crossing the line into illegality.
Wingo said that his bill would require legislators to notify the Alabama Ethics Commission that they have entered into a consulting agreement in an area outside of their normal scope of work.
State Rep. Paul Beckman, R-Prattville, said, “I have never understood why members of this body were allowed to take contracts as consultants or counselors.”
Wingo said, “Never do I use the word counselor in my bill; it is consulting.”
Beckman asked, “Are we going to be getting into an area where every time we turn around we create a bureaucratic nightmare where we have to go get an opinion. These opinions whether it is orally or written don’t hold up in a court of law.” Beckman said, “We are serving the people here but we get this admonition that we can still be a consultant if we get an opinion.”
Wingo said, “This does not apply to professions where a member is currently licensed.”
Beckman said, “I would like to see more opinions coming out of the Ethics Commission. Right now we have the Ethics Commission competing with the Attorney General’s office over who has more authority.”
State Rep. John Rogers, D-Birmingham, said,”This happened to a friend of mine. He just got out of prison. He was a state senator and had a written letter from the Ethics Commission which his lawyer read at trial and the jury convicted him anyway.”
Rogers never named his friend, but reporters think he was talking about former state Sen. Edward Browning ‘E. B.’ McClain who spent over 22 years in the legislature until he was convicted on 47 counts of conspiracy, mail fraud, bribery, and money laundry in 2009.
A federal jury found that McClain and the Rev. Samuel Pettagrue were guilty in a scheme where McClain would secure public funds for Pettagrue’s community programs and then receive a kickback once the funds were in hand. McClain was sentenced to five years and ten months in prison. McClain was not prosecuted under the Alabama ethics law as the state has a much weaker ethics statute then. The current ethics law was passed in 2010.
Rogers said, “If they offer me a consulting contract for a field like aerospace engineering that I know nothing about they are trying to pay me off. If you can already be a consultant for something you know about why would you seek a consulting contract for something you don’t know about.
Rogers this is how they can pay you off for your vote.”
State Rep. Artis “A.J.” McCampbell said, “I don’t like making changes to things like this because we get into things called unintended consequences.”
McCampbell was reading from the bill and Wingo said, “You are reading from the original version it has completely changed.” “We worked tirelessly on this bill with the Ethics Commission this is not a fly by night bill.”
“If a member of the legislature enters into a contract to do a consulting contract outside of their normal field of work this bill requires that they consult with the Ethics Commission first,” Wingo said. “It is up to the member to notify the Ethics Commission not to the company or person offering them the money.”
State Representative Pebblin Warren, D-Tuskegee, said, “Everybody but legislators are allowed to do contract work up to $30,000.”
Rep. Wingo said, “This is not intended to be a roadblock.”
State Representative Arnold Mooney, R-Indian Springs, said, “The whole purpose of this is not to prevent members from doing work in your field.” “What you are doing is offering to protect me.”
State Representative John Knight, D-Montgomery, asked Wingo what the Alabama Attorney General said about this legislation.
Wingo replied, “I have not contacted the Attorney General.”
Knight responded, “Something from the Ethics Commission does not carry a lot of protection from the Attorney General. We have seen that in the past. I think the Attorney General and the Ethics Commission should be in agreement in the working on this.”
Wingo answered, “Maybe this is a first step.”
Rep. Laura Hall, D-Huntsville, asked, “Do we have anybody doing work outside of their regular scope of work?”
Wingo answered, “Yes I think so.”
Wingo said, “If we had had this bill four or five years ago maybe we could have been spared the embarrassment that this body experienced with the former Speaker.”
Wingo was referring to former Speaker of the House Mike Hubbard who was convicted of 12 counts of felony ethics violations in June 2016. Ironically, Hubbard is largely responsible for creating the ethics law that he was found guilty of violating 11 times in his relentless pursuit of outside contracts and personal wealth.
Unlike McClain, however, Hubbard has not yet served any of this sentence.
House Bill 387 passed 67-0 with 26 legislators abstaining.
The bill now moves to the Senate for its consideration.
(Original reporting by the Alabama Media Group’s Lisa Osborn in 2009 was consulted in this report.)