June 2016 Group Watch: News & Views from the State House

If you thought summer meant a slow-down in business and political news, think again. In the month since the 2016 regular session ended, we’ve seen several positive economic development announcements and the trial and subsequent conviction of the Alabama Speaker of the House. Read on for more details.

Mercedes-Benz Supplier Adding 200 Jobs
German supplier Eissmann Automotive will build a new 130,000-square-foot facility for production in Pell City. The St. Clair County facility currently has 650 employees, and the expansion will add 200. Eissmann makes car interiors, shifter modules and other parts for auto makers like Mercedes-Benz, Audi, Jeep and Volkswagen. The $14.5 million expansion is the most recent of several since the facility located in Pell City. A $2.3 million expansion completed in 2015 added 80 new jobs. Eissmann North America is one of the largest private employers in Pell City.

Auto Supplier to Invest $530 Million in Birmingham
Auto supplier Kamtek will break ground in coming weeks on an $80 million, 148,000-square-foot manufacturing facility in the City of Birmingham. The project will include an investment of $530 million and create 354 jobs through 2020. The facility will produce aluminum automotive casting parts for major auto manufacturers in the United States. Mayor William Bell said the company is valuable to the community in terms of economic development and employment. Of the more than 900 employees, 37 percent live in the City of Birmingham and 78 percent live in Jefferson County. The company could expand further, with the potential to increase to 400,000 square feet by 2025.
In other news…

On June 10, Speaker of the House Mike Hubbard was convicted on 12 counts of using his office for personal gain. The guilty verdicts cost him his seat in the legislature, his position as Speaker and could lead to jail time (sentencing is scheduled for July 8). He maintains that he is innocent and has promised to appeal. In the meantime, the process of replacing Hubbard as Speaker has already begun. A vote of the full House will elect the new Speaker at the start of the 2017 session or during a special session later this year, if the governor calls one. Current contenders include:

  • Rep. Bill Poole, R-Tuscaloosa
  • Rep. Victor Gaston, R-Mobile
  • Rep, Phil Williams, R-Huntsville
  • Rep. Ed Henry, R-Hartselle
  • Rep. Mac McCutcheon, R-Capshaw
  • Rep. Mike Jones, R-Andalusia

Several other representatives have also expressed interest.

June 2016 Group Watch: Will Alabama House Illegal Immigrant Children?

Federal agencies will decide. Officials from the Department of Defense (DOD) and Health and Human Services (HHS) are scheduled to come to the state and visit facilities in Baldwin County. They will be looking at two Naval Outlying Fields in Foley and Summerdale to determine whether unaccompanied minors, who entered the country illegally, could be temporarily resettled at the sites. The site assessment will determine the feasibility of utilizing the property for semi-permanent shelters should the number of children referred by HHS exceed the shelter capacity currently available. While DOD officials will be present for the tour, HHS officials will make the final determination about whether the site is appropriate. Alabama Governor Robert Bentley and United States Senator Richard Shelby say the proposal is inappropriate. Governor Bentley says the states should play a more active role in the determination process and describes the effort as usurping the authority of the State of Alabama.

June 2016 Group Watch: No More Common Law Marriage in AL

On January 1, 2017, Alabama will join 40 other states no longer recognizing common law marriage. Governor Bentley signed into law legislation abolishing common law marriages. Common law marriage is when a couple decides to live together without a license or a ceremonial marriage. This arrangement often leads to certain legal issues when couples break up, or one of them dies or if children are involved. There is no provision for division of marital property and no division of marital debts. Common law arrangements before the law goes into effect will still be recognized.

May 9, 2016 Group Watch: News & Views from the State House

The 2016 regular session of the Alabama Legislature ended last week with two major bills that had shown promise “dying” in Wednesday’s final hours, leaving the door open for a possible special session later this year to address the issues the bills would have remedied, namely prison problems and Medicaid funding (see articles below). On the positive front, both state budgets were passed and signed into law, and plenty of other good and important work got done.

On Tuesday, May 3 (29th day of the session):

  • The House gave final approval to bills to authorize municipalities in Jefferson County to retroactively retain issuance fees for license plates; to further provide for camera enforcement of traffic speed and red light violations in Bessemer; and to prohibit municipal governing bodies from contracting with private auditing firms regarding the regulation of sales and use tax.
  • The Senate gave final approval to bills to reduce the cost for copies from the Secretary of State for certain entities; to delete the requirement that county superintendents of education maintain an office at the county seat; and to authorize the continued participation in the Local Government Insurance Program for Children’s Advocacy Centers.
  • The Senate also gave final approval to bills to extend the assessment and Medicaid funding through 2019, using 2014 as a base year and clarifying the uses of certified public expenditures by publicly and state-owned hospitals; to permit physicians to indicate electronically if generic drugs are allowed as a substitute; to authorize fire and rescue personnel to administer opioid antagonists and provide for their immunity; and to authorize the mayor of a municipality where a water board is located and provides service to other counties to appoint additional board members.

On Wednesday, May 4 (30th and final day of the session):

  • The House gave final approval to bills to prohibit municipalities and governing bodies from contracting with private audit firms regarding the regulation of sales and use taxes and to require counties and municipalities to levy business license tax for home health and hospice only where the headquarters or branch office is located.
  • The House also gave final approval to bills to require individual and corporate income tax returns at the state level correspond with the filing date for federal returns, and to require municipalities to have an affirmative vote of the municipal council before extending police jurisdiction.
  • The Senate gave final approval to bills to create the Office of Minority Affairs as a cabinet level position; to require courts to provide interpreters for non-English speaking and deaf individuals in the juvenile court intake process; to require economic development tax abatement correspond between the county and municipal entities; and to require instruction in cursive handwriting by end of the third grade in public schools.
  • Learn more about what the Senate got done (and didn’t get done) on this, the final day of the session, on the“Senate Minute” video, here.)

In other news…

Leni’s Law was signed into law by Governor Bentley last week (and becomes effective on June 1) and allows and expands access to a marijuana derivative called cannabidiol that has shown success in helping those who suffer from certain debilitating diseases, including seizure disorders. The legislation, sponsored by Rep. Mike Ball, R-Madison, decriminalizes possession of CBD for those with conditions such as those that produce seizures and strokes. For some, the effects are so dramatic that the outcome is considered to be lifesaving. The law is named for Leni Young, a young woman whose family moved to Oregon so she could have access to cannabidiol to treat her seizure disorder. Her parents stayed active in Alabama, pushing and garnering support for the law.

The bill from the House that proposed splitting up BP settlement money and therefore freeing up additional funds for Medicaid died in the Senate on the 29th day of the session after Senators became embroiled in debate over the allocation of road money, and the committee adjourned without voting the bill out of committee. Medicaid officials say the budget shortfall will result in changes to the state program that will include cuts to physician reimbursement as well as cuts to the adult pharmacy and outpatient dialysis for patients.

Lt. Gov. Kay Ivey was recently named one of the “50 Most Influential Female Republicans” by Newsmax, which stated that every woman on the list would “play a key role in shaping America’s future.” Ivey tweeted that she was humbled by the recognition. Read more here.

5/9/16 Group Watch: Prison Bill Dies

The Senate voted 23-12 late Wednesday for a compromise on the governor’s prison construction project, which originally had a price tag of $800 million. The compromise plan cut the bond offer to $550 million for two new prisons in addition to a new women’s prison. The House did not vote on the compromise before midnight due to an inability to muster enough votes to shut off debate, and the bill died.

5/9/2016 Group Watch: Stay Tuned…

Group Watch will go back to its regular monthly publishing schedule now that the 2016 regular session is over, but we’ll send out weekly GW issues if a special session is called. Governor Bentley made it clear he was “disappointed” by the death of his prison bill and that he will not give up on it. He mentioned the possibility of a special session, but said it would not be “anytime soon,” saying everyone’s “got to rest a little bit.”

May 2, 2016 Group Watch: News & Views from the State House

Last week was a busy one: the Education Budget for FY 2107 has been signed into law and marks the first time school systems in the state have been fully funded since 2008; the governor’s prison plan made more progress; and a temporary solution for Medicaid cuts made it through the House (see article below).

On Tuesday, April 26 (26th day of the session):

  • The House Judiciary Committee approved a bill authorizing courts to order deferred payments to pay traffic fines and court costs and to prohibit the suspension or revocation of driving privileges if payments are being made.
  • The House Ethics and Campaign Finance Committee approved a bill requiring that advisors to the executive branch of government be paid by public funds.
  • The Senate Education and Youth Affairs Committee approved a bill to require the State Board of Education to report to the legislature on the development of a model evaluation system for teachers, principals and assistant principals.
  • The Senate passed bills to clarify periods of confinement as part of prison reform and to create the position of Office of Minority Affairs as a cabinet level position.
  • The House Health Committee approved a Senate-passed bill to allow a county or municipality to collect business license tax for home health and hospice only where the headquarters or branch office is located.
  • The House passed bills to cap the penalty of juvenile offenders convicted of capital offenses to life in prison and to create the position of Office of Minority Affairs as a cabinet level position.

On Wednesday, April 27 (27th day of the session):

  • The House passed a Senate-passed bill to give certain authority to the Department of Transportation to award contracts for maintenance of road and public improvement projects, and a bill to authorize universities that operate medical schools to incorporate authorities to own and operate healthcare facilities.
  • The Senate passed bills to give preferred vendor status to businesses owned by veterans who were deployed for Operation Enduring Freedom (Afghanistan) or Operation Iraqi Freedom (Iraq) and to prohibit municipal governing bodies from using private firms in the collection and regulation of sales and use taxes.
  • Learn about “Leni’s Law” and what the Senate got done on this day on the“Senate Minute” video, here.)

On Thursday, April 28 (28th day of the session):

  • The Senate approved House-passed bills to provide tax exempt status for LifeSouth Community Blood Centers; to provide a process for special elections in municipalities with a commission form of government; and a local gasoline tax for Tuscaloosa County for road improvements.
  • The House passed Senate-passed bills to establish a Dental Scholarship Awards Program within the Board of Dentistry to be funded by the Education Trust Fund; to authorize universities that operate medical schools to incorporate authorities to own and operate healthcare facilities; and to further authorize for the licensure of Social Workers in Alabama.

In other news…
After seven hours of debate, the Alabama House approved an $800 million plan to build new prisons in the state and close all but a handful of existing ones. This proposal was the centerpiece of Governor Robert Bentley’s agenda and now goes back to the Senate for concurrence. The House added an amendment requiring a second vote on the prison bill after plans are completed.

The House and Senate reconvene on Tuesday, May 3, at 1 p.m.  Find a link to live audio of both chambers here.

5/2/16 Group Watch: Split of BP Settlement $$

The Alabama House of Representativesapproved a bill to split settlement money from BP under a plan that could stave off Medicaid cuts for 2017. Instead of $1 billion over 18 years, the state general fund would receive an estimated $639 million up from a bond issue. The state would use $450 million for debt payment and $191 million for road projects in coastal counties. The Senate will have to approve the measure next week in the two remaining days of the session.

5/2/16 Group Watch: Alabama & Israel

In the April newsletter put out by Lt. Governor Kay Ivey, she outlined Alabama’s longstanding support of Israel and stressed its continuance. She also mentioned the April 7 visit to the Alabama Legislature from Deputy Speaker of the Israeli Knesset, Hilik Bar, noting that on the same day that the high-ranking official addressed Alabama lawmakers, SB81 was passed by the Senate. The bill requires all government entities to include a provision in certain purchasing contracts assuring that the business providing the good or service is not engaged in and will not engage in the boycott of an entity doing business with a jurisdiction with which the state can enjoy free trade. The bill has not yet been passed by the House.

April 25, 2016 Group Watch: News & Views from the State House

The largest Education Budget since the recent recession passed both chambers easily last week, with two unanimous votes. Plus, the governor’s prison plan made it out of committee, a RCO bill made progress, and lots of local business got done.

On Tuesday, April 19 (23rd day of the session):

  • The House County and Municipal Government Committee approved a Senate-passed bill to prohibit police jurisdiction from extending into additional territories after the effective date of the act without an affirmative vote of the city council.
  • The House Commerce and Small Business Committee approved a Senate-passed bill to authorize universities that operate medical schools to incorporate authorities to own and operate healthcare facilities.
  • The Senate Jefferson County Local Legislation Committee approved House-passed bills to revise the composition of the county Retirement System Pension Board; to allow municipalities to retain issuance fees relating to license plates; and to further provide for camera enforcement of traffic speed and red light violations in the City of Bessemer.
  • The House passed bills to provide interpreters for non-English speaking and deaf persons and juvenile court intake; to require that salary and expense increases of municipal bodies be introduced at least 30 days prior to adoption; and to prohibit the use of sky lanterns and novelty lighters in certain settings.
  • The Senate passed bills to prohibit racial profiling by law enforcement officers and to require the reporting of certain statistical information to the Attorney General.
  • The Senate also passed bills to provide income tax credits for rural physicians and dentists; to revise and strengthen the penalties for violations of restrictions on new, young drivers, and to revise the notification requirements by local governments regarding tax levies; and to authorize certain collection services at no cost.
  • Learn more about what the Senate got done on this day on the“Senate Minute” video, here.)

On Wednesday, April 20 (24th day of the session):

  • The House Ways and Means General Fund Committee approved a Senate-passed bill to provide bonds for up to $800 million for construction of new prisons and the repair of existing prisons.
  • The House State Government Committee approved a bill amending the statute prohibiting municipalities from using private auditing or collecting firms relating to sales and use tax.
  • The Senate Finance and Taxation General Fund Committee approved House passe-bills to prohibit the use of sky lanterns and novelty lighters in certain circumstances; to exempt prescription drugs from business license tax based on gross receipts; and to extend the hospital assessment and Medicaid funding through 2019 using 2014 as a tax base.
  • The Senate Health and Human Services Committee approved a bill to extend the time period for achieving certification as a Regional Care Organization (RCO).
  • The House passed bills to require that municipal tax abatements correspond to county abatements; to revise the membership of the Jefferson County Pension Board, and to prohibit city council members in Birmingham from serving on other city boards.
  • The Senate passed bills to further provide for penalties for driving under the influence and to further provide for camera enforcement of traffic speed and red light violations in the city of Bessemer.
  • Learn more about what the Senate got done on this day on the“Senate Minute” video, here.)

On Thursday, April 21 (25th day of the session):

  • The House passed bills to extend the time period for certification of Regional Care Organizations (RCO) and to provide enhanced penalties violations against law enforcement officers, firefighters and other specified persons.

In other news…
While it has barely made any headlines in the last few months, the idea of a state lottery entered the discussion again last week. A bill calling for a statewide referendum on a lottery made it out of the Senate Tourism and Marketing Committee. But with the session nearing its end, many think the chance of getting a lottery bill passed is small. Even proponents of a lottery cite issues with the current bill, mainly its lack of specifics about distribution, as reasons to put the issue on hold, while the bill’s sponsor, Senator Jim McClendon (R-Springville), believes he has enough time to work on the bill and add the details many legislators are seeking.

On Thursday, the $6.3 billion Education Budget made it through the legislature and is expected to be singed into law by Governor Bentley. A bill authorizing pay raises for educators also passed and is also expected to get the governor’s signature. The budget is the biggest since 2008, and the pay raise is the first in three years.

The House and Senate reconvene on Tuesday, April 26, at 1 p.m. and 2 p.m. respectively. Find a link to live audio of both chambers here.

The Bloom Group, Inc.

401 Adams Avenue, Suite 710
Montgomery, Alabama 36104
Telephone: (334) 244-8948
Fax: (334) 213-0688

Live Audio Feed

Listen to your senators and representatives at work. Click here to find links to live audio of the House and audio plus video of the Senate.

Alabama Civil Justice Reform Committee

Alabama Civil Justice Reform Committee

The News You Need

Find the latest information on all things Alabama politics on Alabama Today.