The Foundation for Progress 2012

T H E F O U N DAT I O N for P RO G R E S S• 2012 •

BCA I N T H E F I G H T F O R T H E PR I V A T E S E C T O R

Contributors: Anita L. Archie, William J. Canary, Mark Colson, Claire Haynes, Nancy Wall Hewston,

Nathan Lindsay, Victor Vernon, Lenore R. Vickrey, Pam Ware

© 2012 Business Council of AlabamaAll Rights Reserved

Published for the Business Council of Alabama by:

Beers and Associates, LLC8650 Minnie Brown Road, Suite 120Montgomery, AL

Publisher: Ronald P. Beers

Production Sta! for !e Foundation for Progress • 2012Editor: Jennifer S Kornegay Managing Editor: Erin Mohajerin Designer: Scott Fuller Printer: Wells Printing Co.

Published 2012Printed in U.S.A.First EditionISBN Number: 978-0-9796601-8-4

Every e!ort has been made to ensure the accuracy of the information herein.However, the Business Council of Alabama and Beers and Associates are not responsible for any errors or omissions that might have occurred.

ii

Dedication"is book is dedicated to the volunteer leaders who have led the Busi-

ness Council of Alabama for more than a quarter-century, with grateful-ness for their vision, courage, integrity and commitment.

BCA Chairmen2012 Terry Kellogg Blue Cross Blue Shield of Alabama

2011 William W. BrookeVenture Capital – Harbert

Management Corporation

2010 Sandy StimpsonScotch Gulf Lumber Company, LLC

2009 Phil DottsPublic FA Inc.

2008 David MuhlendorfPaper and Chemical Supply Company

2007 Carol GordyNatural Decorations, Inc.

2006 Tom HambyBellsouth – Alabama

2005 Johnny JohnsProtective Life Corporation

2004 C. Charles Nailen, Jr.BBG Specialty Foods, Inc./Taco Bell

2003 Mike "ompson"ompson Tractor Company, Inc.

2002 Mike WarrenEnergen Corporation

2001 T. Keith KingVolkert & Associates, Inc.

2000 Roland VaughanSherlock, Smith & Adams, Inc.

1999 J. Ab ConnerConner Brothers Construction

Company, Inc.

1998 D. Paul JonesCompass Banchares Inc.

1997 Van L. RicheyAmerican Cast Iron Pipe Company

1996 Robert “Bubba” LeeVulcan, Inc.

1995 Rex J. LysingerEnergen Corporation

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iv THE FOUNDATION FOR PROGRESS • 2012

1994 Frank McRightMcRight, Jackson, Dorman, Myrick

& Moore

1993 Elmer B. Harris Alabama Power Company

1992 Robert W. Hager"e Boeing Company

1991 Dr. Peter MannsfeldDegussa Corporation

1990 Harry B. Brock, Jr.Central Bank of the South

1989 Winton M. Blount IIIBlount Strange Holdings, LLC

1988 James MillerMacMillian Bloedel, Inc.

1987 Frank MasonMason Corporation

1986 Dick DicksonRussell Corporation

v

Table of ContentsPrologue: Choice, not Chance, Determines Destiny • 2012 . . . . . . . . . . viiChapter 1: Governor Robert Bentley’s State of the State Address . . . . . 1Chapter 2: Putting the Private Sector First: Job Creation Kicks

O! Legislative Session . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Chapter 3: February 13

BCA-Supported Job Creation and Retention Act Passes House . . . . 19Chapter 4: February 20

Finally a Plan to Fix the Gross Income Problem . . . . . . . . . . . . . . . . 31Chapter 5: February 27

Senate Begins Debate on Economic Development Bills . . . . . . . . . . 39Chapter 6: March 5

Sizing up the Pseudoephedrine Bill . . . . . . . . . . . . . . . . . . . . . . . . . . 51"e Business Advocate: "e BCA’s 2012 State Legislative Agenda . . . . 55Chapter 7: March 12

Challenging the Status Quo: Education Options Act of 2012 Announced . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

Chapter 8: March 19 Options and Flexibility for Parents and Teachers . . . . . . . . . . . . . . . . 85

Chapter 9: April 2 After Months of Work, Changes Introduced to Immigration Law . . 105

Chapter 10: April 9 BCA Reiterates Support at Public Hearing on Immigration Revisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117

Chapter 11: April 16 House Approves Changes to BCA-Backed Immigration Law . . . . . 125

"e Business Advocate: "e BCA’s 2012 Federal Legislative Agenda . . . 135Chapter 12: April 23

Senate Approves Changes to BCA-Backed Immigration Law . . . . . 149Chapter 13: April 30

Status Quo Senators Pass Bill Making Charter Schools all but Impossible . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161

Chapter 14: May 7 Drawing a Line in the Sand, House Refuses Watered-Down Senate Charter Bill. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171

vi THE FOUNDATION FOR PROGRESS • 2012

Epilogue: 2012 Session Yields Positive Legislation for Business . . . . . . . 183Acknowledgements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197APPENDIX ProgressPAC Launches Carrying the Flag for Business Campaign . . . . 199 Business Council of Alabama Federal Advocacy: 2011-2012 . . . . . . . 200 BCA/ProgressPAC 2012 Endorsed Candidates . . . . . . . . . . . . . . . . . 206 "e Partnership: BCA, CCAA Working Together on Behalf of Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207 "e Partnership: Jeremy Arthur to Head Chamber of Commerce Association of Alabama . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209 Changes to Alabama’s Immigration Law by Edward A. “Ted” Hosp . . 211 "e Truth About Charter School Funding . . . . . . . . . . . . . . . . . . . . . 214 BCA Takes First Step Toward Finalizing 2012 Legislative Agenda . . 218 U.S. Chamber Honors BCA with the 2011 Outstanding Organization Award . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220 BCA Advocating for Job Creation, Education Reform in 2012 Session 222 BCA Statement on Pseudoephedrine Bill (HB 88) . . . . . . . . . . . . . . . 224 BCA Statement in Support of Educations Options Act of 2012 . . . . . . . 225 BCA Issues Statement on Proposed Changes to Immigration Law . . 226 BCA Applauds Governor for Signing Immigration Bill . . . . . . . . . . . 227 Coalition Aims to Scrap Metal "eft by William J. Canary . . . . . . . . 228 "e Business Advocate: BCA Chairman Looks Beyond Himself to Serve Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 231 "e Business Advocate: Nation’s 43rd President Headlines Annual BCA Chairman’s Dinner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 235 "e Manufacturing Advocate: BCA’s Manufacturing Advocacy Council Visits the NAM, Briefs Congressional Delegation . . . . . . 239 "e Business Advocate: Outgoing Chairman Challenges BCA to Honor the ‘Privilege of Leadership’ . . . . . . . . . . . . . . . . . . . . . . 243 "e Business Advocate: Business Council Hosts Capital Leadership Day . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249 "e Business Advocate: 2012 Session Yields Positive Legislation for Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 253 "e Manufacturing Advocate: BCA, ATN Honor Alabama’s 2012 Manufacturers of the Year . . . . . . . . . . . . . . . . . . . . . . . . . . . 255Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 263

vii

PRO L O G U E

“Excellence is never an accident. It is always the result of high intention, sincere e!ort, and intelligent execution; it represents the wise choice of many alternatives – choice, not chance, determines your destiny.”

AR I S T O T L E

Our nation has always admired and revered great builders — individuals like Andrew Carnegie, Robert Moses, Frank Lloyd Wright and countless others who left behind impressive

structures and legacies that remain for generations. Becoming a successful builder requires an investment, commitment and passion far greater than the average person is willing to make and the assumption of more risk than most are comfortable shouldering. "ese legends understood that choice, not chance, is essential to building the foundation for excellence.

"e foundation of the Business Council of Alabama is our member companies that employ more than 750,000 working Alabamians. Helping cement this foundation is "e Partnership with the Chamber of Commerce Association of Alabama uniting the BCA with the 120-plus local chambers of commerce throughout the state; it is a one-of-a-kind model in America that was formalized in 2004. In addition, both the United States Chamber of Commerce and the National Association of Manufacturers look to the BCA as their state a#liate organization, completing a solid and lasting foundation that ensures the voice of business and industry in Alabama is heard.

Since helping elect Alabama’s $rst truly pro-business legislature in decades, the Business Council of Alabama has embarked upon a massive construction project, and it, too, demands we dedicate unprecedented resources, time and attention to its completion. Unlike the builders who work with mortar and stone, the BCA is working to build an economic structure that allows business owners across the state to operate without needless government regulation, unnecessary health care mandates and punitive, job-killing taxes. Quite simply, our mission is to make it easier

viii THE FOUNDATION FOR PROGRESS • 2012

for business owners to sign the front of a paycheck, so that others can sign the back.

In 2010, the BCA ignited a true clash of ideas detailed in our book What If No One Were Watching? that drew a line in the sand between pro-business and anti-business forces. In our follow-up book, A Blueprint for Progress: 2011, we sharpened the vision of the business community into a blueprint for putting the private sector $rst. "is year, using this blueprint, we have now begun building !e Foundation for Business.

Expanding existing industry, preserving Alabama’s status as a right-to-work state and improving Alabama’s public education system are the cornerstones of this foundation.

Conservative estimates indicate that 8 out of 10 newly created jobs will come from existing business and industry in Alabama. "e BCA has long advocated for signi$cant incentives to expand existing industry in the state. In the 2012 legislative session, a series of BCA-endorsed incentives for existing industry were adopted and have already resulted in job expansions. In April, an existing Alabama business announced it will invest $1.2 billion in a coal production facility that will employ more than 500 workers.

Most importantly, Alabama’s status as a right-to-work state sends a clear signal that Alabama is open for business. During an interview following the announcement of a $600 billion project that will create 1,000 new jobs, Alabama Governor Robert Bentley summed it up well when asked why the company chose to locate in Alabama: “We are a right-to-work state,” he said. Fighting assaults on Alabama’s right-to-work laws remains a top priority for the BCA.

As the state’s number one source of tax revenue — providing more than $5 billion annually to state and local governments — as well as the largest consumer of the product called education, Alabama’s business community has a vested interest in ensuring that our public education system is achieving its stated goal: educating children. Today’s students are tomorrow’s workforce. "e BCA is fully committed to uniting the business and education communities for the simple purpose of educating Alabama’s schoolchildren. We will never be able to fully compete for the jobs of the future unless we prepare the students of today.

In the pages that follow, you will read about BCA’s direct advocacy in the legislative process throughout the 2012 session. You will be privy to behind-the-scenes stories of how bills were passed or defeated.

PROLOGUE ix

You will see that in Alabama, we now are allowed to begin the debate on important issues that face our state; we often forget that less than two years ago merely having a conversation about critical reforms was not even possible. "ere has been a seismic shift in the status quo.

You will learn how we built upon the blueprint and began laying a foundation upon which businesses in our state may continue to grow and expand. Like any construction e!ort, this project will take time (Patience and time often con%ict with one another.) but because of the BCA’s direct advocacy e!orts within the governmental process, we are well on the way toward building a better Alabama.

Just as Carnegie, Moses, Wright and other great builders heeded the words of Aristotle, our state leaders must remember that choice, not chance, determines our destiny. It is imperative for business to know the choices made in the 2012 legislative session.

C H A P T E R 1February 7, 2012

GA VE L E D TO ORD E R : GO VE R N O R RO B E R T BE N T L E Y ’S S T A T E OF T H E S T A T E AD D RE S S

Lieutenant Governor Ivey, Speaker Hubbard, President Pro Tem Marsh, distinguished guests, members of the Legislature and my fellow Alabamians:

It is in indeed an honor to join you in this Chamber as we re%ect on a year of historic events and cast a bold vision for the future of our state.

To members of my Cabinet, thank you for your service and for meeting the challenges we face as a state with courage and the hearts of servant leaders. It is a privilege to work with each of you.

Chief Justice Malone, distinguished members of the Alabama Supreme Court — thank you for your leadership and your service to our state.

As we re%ect on the $rst year of my administration and chart a course for the future, I want us all to remember, state government belongs to the people of this state. As public servants chosen to lead this state, we must begin every day with a commitment to give Alabamians every opportunity to make their lives better.&

"e people of this state expect us to make tough decisions in tough times. "ey expect us to come together, to work together to create jobs, to give our children the best education and to improve our quality of life.

As we face the days ahead, we must have the courage to make di#cult decisions, we must have compassion for the people we serve, and we must work together to improve the lives of all Alabamians.&

"e $rst time we met together, right here in this historic chamber, I pledged to do all I could to put Alabamians back to work.&

As I stand before you tonight, I’m pleased to report that since we took o#ce, 41,000 more Alabamians are working. "at’s 41,000 more

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2 THE FOUNDATION FOR PROGRESS • 2012

Alabamians earning a paycheck today than a year ago. And more jobs are on the way.

We have recruited over 13,000 new, future jobs to Alabama. International companies from India, Germany and Japan and right here in the United States are investing more that $3.2 billion dollars in our state and in our people.&

And just today there was more good news. A Chinese company will bring up to 500 new jobs to Wilcox County where we have the highest unemployment rate in the state.

In the last four months Alabama’s unemployment rate has dropped faster than any other state in the nation.&

We’ve done this despite facing tough competition from other states and with limited ability to o!er incentives to businesses.

So why are national and international business leaders choosing to invest in Alabama?& "ey recognize that Alabama has the strongest business climate, best work force training, and the hardest working people they will $nd anywhere.

"ey also know that our leaders at every level of government and our local economic developers take a team approach to putting Alabamians back to work.&

"ere is no better example of that than what we did to help the town of Hackleburg. We all remember what happened in April. "is community of 1,400 people in Northwest Alabama was devastated by the storms. Twenty-$ve people were killed. "e schools were demolished. One hundred $fty homes were lost. And the Wrangler Distribution Center, the town’s largest employer, was destroyed.

We knew if those critical jobs at Wrangler were not restored, there was little hope for saving this community.

"e mayor, the county commissioners, local legislators and our Alabama Development O#ce helped me with one common goal — saving the community.

And our teamwork paid o!. Wrangler executives heard our message and agreed to not only rebuild in Hackleburg, but to expand from 150 jobs to 250 jobs for the community. I want to thank everyone for a job well done.

When I took o#ce, I learned that despite our previous success in recruiting new industry to our state, we did not have a comprehensive, statewide economic development plan to guide our e!orts. "at’s why I

CHAPTER 1 3

created the Alabama Economic Alliance made up of economic development leaders from communities across Alabama.&

Working together the Alliance has delivered a blueprint to drive our future e!orts in the creation of jobs in 11 business sectors of the state.

"e report recommended that we increase the number of prospect-ready sites across Alabama and it called for strengthening our workforce development programs.

All are worthy goals that we will implement this year. We will also present an aggressive jobs agenda as a top priority in this legislative session and that will give our economic recruiters new tools to grow jobs in Alabama.

Our workers must continue to have the training they need to succeed in the jobs of the 21st century. "at’s why I am proposing new investment in our workforce development and career tech programs.

And we will make sure any rule or regulation that stands in the way of economic development is eliminated. We will free our businesses from unnecessary, bureaucratic road blocks so that they can make better bottom-line decisions that create jobs and economic opportunity.

I have been fortunate this year to spend time in communities across our state. A concern I have heard over and over is the need for better roads and bridges to lead to greater economic opportunities and to improve their quality of life for all our citizens.

Trucks, school buses, farm equipment must now be diverted in parts of our rural areas due to bridges that need repair. We have an obligation to preserve the roads we now have and $x our bridges.

We have the ability to $nance a major infrastructure program. We will work with local leaders to identify what roads need repair and we will get them $xed as soon as possible. With the use of GARVEE Bonds we can achieve this without raising taxes or taking money from our state savings account. "ese can be issued as needs are identi$ed.

If we are going to continue to grow jobs in Alabama, we must manage our money wisely. "at will require us to make di#cult decisions in our state budgets. We face a major funding shortfall in our General Fund. We have 25 percent less money to provide basic services. We know what the federal government would do. "ey would print more money, borrow against our children’s future and drive up our national debt. "at won’t ever happen in Alabama.


Early this morning at 4:30 there was a single mother who got up and went to work. She works hard everyday at her job serving the people in her community. On April 15 we expect her to send her taxes to Montgomery. And we’re expected to be good stewards of that money.

"at’s exactly what we are going to do. And we are not going to raise her taxes. I promised the people of this state that I would not raise taxes on the people of Alabama, and I am going to keep my word.

I will oppose any e!ort to raise taxes on Alabama families, and I will veto any tax increase. "e people of this state expect us to live within our means, and that’s exactly what we’re going to do.

Now, that means that we must prioritize the people’s money. We must $rst use that money to support critical state services that have a proven track record.

Passing balanced budgets that protect programs and fully funding critical state services will require the same kind of self-sacri$ce and spirit that we saw in the wake of the April tornadoes.

In our General Fund, we will protect the Alabama Department of Public Safety. Nothing is more important than ensuring the safety of our citizens.

Our most vulnerable seniors and children depend on critical services from the Department of Human Resources. I want them to know we will protect them at every turn.

And in the budget I am recommending, we will not cut one penny from the Department of Corrections. Not one single prisoner will be set free due to a lack of funds.&

Unfortunately, government always expands to meet the amount of money we have. We must make sure the opposite occurs.

We must reduce the size and scope of government and we have already begun this process.

I will propose legislation that consolidates a number of state agencies.We will modernize outdated systems within state government by taking

advantage of the latest technology to save $100 million over 10 years.&We will streamline our licensing procedures which will produce greater

e#ciency and signi$cant savings for taxpayers.And that’s just the beginning.I am committed, together with Lt. Governor Ivey, Speaker Hubbard

and Senator Marsh and our legislature to making sure we reduce the size of government and make government more e#cient. "e people of this state

CHAPTER 1 5

deserve this. And the process of cutting, reducing and saving taxpayers money will never stop as long as I’m Governor.

In my education budget, the Alabama Reading Initiative, ACCESS Distance Learning, the Alabama Math Science and Technology Initiative, Advance Placement and our highly successful Pre-K programs will all be protected. "ese are all proven programs that have helped our children achieve better results.&

We know that the health care of our children is critical to their learning process. "at is why I am proposing that we invest more of our education dollars in the well-being of our children. We will make sure children are ready to compete and learn, knowing that they have access to the health care services they need and deserve.

In education, we provide transportation to and from school for our children. If children aren’t in school, they can’t learn. "at’s why we will protect funds that provide transportation.

We also provide meals to our children who need them — sometimes twice a day. And everyone knows you cannot learn on an empty stomach. In the budget we are presenting, we will ensure no child goes hungry.&

We also know a child cannot learn if they are sick. By investing more of our education dollars in the health of our children, we will make sure that they are healthy and successful.

"is year we are proposing an aggressive education agenda. In this global economy, our competitors aren’t just Georgia, Tennessee and Mississippi. "ey are from all over the world. If we’re going to continue to recruit the jobs our people deserve, our workers cannot be just the best in the Southeast, or the best in the country. "ey have to be the best in the world. And that’s why, as a state, we have to constantly be looking for ways to improve how we educate our children.&

We must begin by giving our existing public schools more %exibility. I will propose "e School Flexibility Act of 2012, which will allow more decision-making at the local level. Working with the Legislative leadership, we will give local school systems the ability to develop their own innovative strategies, free from state or federal bureaucracy.

We must also allow parents a choice in how and where their child receives an education. Every parent, regardless of how much money they have or where they live, should be given the chance for their child to attend an excellent school. We must give children every opportunity to live up to their full potential. Every child, and every parent, deserves nothing less.&


No doubt you’ve heard a lot recently about charter schools, and you will hear a lot more in this legislative session. Charter schools are public schools.

"e legislation we will propose would create a limited number of public charter schools to give parents a choice.

And we are going to pass public charter school legislation in Alabama because our children and parents, and yes, teachers deserve a choice.

It’s time for all of us to stop pointing $ngers and placing blame for the problems we face in education. It’s time we come together and lend a hand to $nd real solutions, because there is nothing we cannot solve by working together.&

Working with State Superintendent Dr. Tommy Bice and his team, we will ensure that every child’s classroom and school is led by a highly e!ective, professional educator free to use their talents to create a stimulating and innovative learning environment in their own classroom.

I know that, many times, our teachers spend hundreds of dollars of their own money on their classrooms. Today, I propose a dollar-for-dollar tax credit for every teacher in this state who spends their money on their classroom.

"e most important people in a child’s life are the ones who kiss them goodbye in the morning and the one who spends the day with them in the classroom. We know that, other than their parents, nothing matters more to a child’s education than the e!ectiveness of his or her teacher. We cannot become the world’s best public education system without listening to our teachers and principals. We cannot reform education by ignoring educators.

"at’s why I will form a “Teacher Cabinet” made up of teachers, administrators, school board members and parents. "ese leaders will provide my administration with un$ltered feedback on the needs of our public schools.&

I want to hear directly from Muscle Shoals and Monroeville, Fort Payne and Fairhope, Decatur and Dothan, and all places in between, without the $lter and spin of Montgomery lobbyists.

And as we’re talking about our teachers, I want to recognize two of the very best of the profession and the $rst two members of our Teacher Cabinet.

Dr. Gay Barnes teaches $rst grade at Horizon Elementary School in Madison. She is Alabama’s Teacher of the Year and a $nalist for National Teacher of the Year.

CHAPTER 1 7

Jeremy Raper teaches Advanced Engineering and Honors Physics at Bob Jones High School. He is one of only 40 teachers in the country to receive the prestigious Milken Educator Award last year.

Both of these teachers represent the best among our educators in Alabama and are great examples of the teachers we now have leading our students and the type of teachers we want to continue to have leading in the classroom.

Dr. Barnes, Mr. Raper will you both please stand.To improve the quality of life for all Alabamians, we have to improve

our overall health. In every report detailing the health of our state — the news is not good. Alabama consistently is at the bottom of almost every health ranking including rates of obesity, diabetes, heart disease and infant mortality.

"at is not acceptable.I know we can do better. In Alabama there are countless organizations,

agencies and programs all dedicated to improving the health of our people and we are thankful for their e!orts. But it’s time we start producing real results that improve the lives of our people.

I will create a Health Alliance bringing all of these entities together at one table. Each one will have a clear mission and we will set goals for our state to reach.

When we all work together to improve the lives of Alabamians, we produce real results. We saw how well this works with the Tornado Recovery Action Council, where a group of private citizens came together, listened to the people and produced 20 common-sense recommendations to better prepare our state for future disasters.

We’re facing some adversity right now. It’s a time that demands courageous leadership and sacri$ce. "ose of us who serve in government learned during the spring of 2011 that there is no di#culty that the people of Alabama cannot overcome when we work together and put aside personal agendas for the greater good.&

"at is what we saw in the wave of generosity that swept across our state in the aftermath of April 27. Volunteers came from far and wide to help from Franklin to DeKalb County, Calhoun to Winston County. Generous and caring groups from Auburn came to the aid of those in Tuscaloosa. "at’s just the kind of spirit we need in our state to help solve all our problems.


We also see it in Carson Tinker. By now you may have heard Carson’s story. One of the 62 tornadoes that tore across Alabama last spring ripped Carson’s house and his life apart. Carson was injured after being thrown 100 yards. He lost his home. And more importantly, like so many people across this state he lost someone he dearly loved.

What you may not realize is that Carson has the most thankless job in football. He snaps the ball on punts and $eld goals. He’s a long snapper. No one will notice if he’s perfect. "ey’ll only notice if he’s made a mistake.&

Despite his injuries, despite his personal tragedies, Carson didn’t make a single bad snap in his career. He did his job to perfection, and he helped his team achieve the ultimate goal.

Carson, would you please stand?In these tough times, let’s follow the example of people like Carson Tinker.&

Let’s pull together in the face of adversity, do our jobs to the best of our ability, and let’s serve the people who sent us here.&

Last year the people of Alabama showed all of us how it should be done. "ey came together, worked hard, were unsel$sh and it didn’t matter who got credit.

"e people didn’t elect us to be caretakers of state government. We are not here to protect the status quo.

We need to do everything we can to give people the opportunity to make their lives better, whether it’s in helping them get a good job, a good education or just being healthier. By working together we can make that happen.

When we leave our time in o#ce, we want to leave Alabama a better place than when we arrived. "at should be our purpose — and it should be the vision of everyone in this room.

God bless you. And may God bless the Great State of Alabama.

9


PU T T I N G T H E PR I V A T E S E C T O R F I R S T: JO B CRE A T I O N KI C K S OF F L E G I S L A T I VE S E S S I O N

“Excellence is to do a common thing in an uncommon way.”BO OK E R T. WA S H I N G T O N

The Alabama House began its first full workday on Tuesday debating a package of BCA-supported bills intended to ignite job creation. Four of the bills passed the House, but&HB 159 and HB

160 together known as the Alabama Job Creation and Retention Act still await House action when it returns on Tuesday.

"e Act, the cornerstone of Gov. Robert Bentley’s job creation package, consists of a proposed constitutional amendment and an enabling bill that would give wide discretion to the governor to o!er tax incentives for companies that locate, expand or retain their operations in Alabama. "e two bills,&by Rep. Barry Mask, R-Wetumpka, would provide that a percentage of state income tax withholdings from the additional employees may be retained and used by the company to o!set the costs of acquiring the facility, but not more than the cost of the facility.

Bill proponents point out that the state’s success in landing world-class companies like Mercedes, Honda, Hyundai and "yssenKrupp already prove how e!ective tax incentives can be for bringing jobs to the state. HB 159 would allow voters to give the governor and the Alabama Development O#ce more %exibility to o!er tax incentives to land major economic development projects and retain companies that might otherwise relocate outside Alabama, without having to call a special session of the legislature.

Some lawmakers questioned the lack of speci$cs and the wide authority the legislation would convey upon the governor. "ey said the legislation lacks minimum thresholds for the amount of investment and the number of additional jobs that must be created to receive the incentives. However,


Rep. Mask pointed out that the cost-bene$t analysis and terms of any agreements would be made public. Mask also stressed that industrial recruiters need more %exibility to quickly match creative o!ers made by other states, without having to amend legislation. HB 160, the enabling bill, sets strict parameters for how incentives can be used to ensure return on investment.

All of the bills in the governor’s job creation package are supported by the BCA. BCA President and CEO William Canary commended the House for acting quickly on four of the bills and urged lawmakers to follow suit and approve HB 159 and HB 160. “We are pleased the House is keeping the momentum going with this jobs-creation legislation,” he said. “When new and existing businesses are successful and hire more people, the Education Trust Fund grows, and we are able to provide more opportunities to our students and teachers. BCA will continue to lead the e!ort in $nding solutions to improve Alabama’s economy.”

"e other bills that passed the House "ursday: HB 151, by Rep. Alan Baker, R-Brewton, changes the name of the

Alabama Development O#ce to the Alabama Department of Commerce. "is name change would help Alabama’s industrial recruiters relate better to prospects, especially international prospects, who are conditioned to being recruited by state agencies called, departments of “Commerce.” "e House passed this bill 94 – 1.

HB 144, by Rep. Bill Roberts, R-Jasper, amends existing statutes that provide for tax incentives to add that companies engaged in the coal mining industry be included among industries eligible to receive the incentives. HB 144 passed the House 80 – 3.

HB 39, by Rep. Paul Lee, R-Dothan, provides an exemption from sales and use taxes on parts and systems that are incorporated into a refurbishment of certi$ed military, governmental or commercial transport aircraft or rotary wing aircraft. Committee testimony revealed that Alabama companies that refurbish aircraft are at a competitive disadvantage versus their counterparts in other states, where the parts used in such conversions are tax-exempt. "e vote for passage was 80 – 8.

HB 154, by Rep. Dan Williams, R-Athens, enhances the current economic incentives available to data processing centers. Data processing centers create a large number of direct and indirect jobs and have a signi$cant economic impact in the communities in which they locate. "e bill was approved on a vote of 72 – 18.

CHAPTER 2 11

House bills 151, 144, 39 and 154 now move to the Senate for consideration.

Speaker Hubbard gives preview of 2012 legislative session

In his $nal public appearance just hours before gaveling the Alabama House of Representatives into its regular 2012 session, House Speaker Mike Hubbard set the stage for the BCA Governmental A!airs Committee by outlining several bills and initiatives on tap for the next several months.

Hubbard discussed a number of incentive measures and other bills designed to attract new jobs and retain those that already exist. "e package of economic stimulus bills received favorable reports Wednesday from House committees and had been endorsed by the House and Senate Majority Caucuses earlier.

"ese bills include:A constitutional amendment that would give the Alabama Development O#ce and the governor more %exibility in o!ering tax incentives to land major economic development projects and retain those companies that might otherwise relocate outside Alabama. "e “Heroes for Hire” Act that would o!er Alabama businesses a tax credit&for hiring a veteran recently returned from war. Newly returned veterans starting their own small businesses also qualify for a tax credit under this bill’s provisions."e Alabama Regulatory Flexibility Act that would require each state agency to conduct an economic impact analysis as well as a regulatory %exibility analysis prior to the adoption of any proposed regulation that may have an adverse impact on small businesses.

House Speaker Mike Hubbard


“Right out of the chute, our focus is going to be jobs and stimulating the economy because that is of paramount importance and the most important issue we will deal with,” Hubbard said. “We will do nothing else until we get our jobs package through the House and through the Senate so we can encourage the private sector to grow.”

Hubbard noted that electing a “very conservative, pro-business legislature during the 2010 cycle” is beginning to pay dividends and has already shown signs that Alabama’s economy is beginning to improve at a pace faster than other Southeastern states.

Education reform is another high priority, according to the Speaker, and will also take center stage at some point early in the legislative proceedings. He said the e!ort actually began last year with the successful passage of a teacher tenure reform statute and credited the support and endorsement of BCA and other business groups as a major factor in the accomplishment.

“Under the previous legislative leadership, I don’t think there is anybody in this room who would have said we had a prayer of passing tenure reform, but we did,” Hubbard said. “Tenure reform is a direct result of the new mindset of the legislature, and I believe it is going to have a profound positive impact on education in this state for years to come.”

He compared the new employment rules promulgated by the tenure reform law to those that are used in the private sector: “Employees who do a good job are rewarded, and those who do a poor job are dismissed.”

Charter schools important component of reformAllowing the creation of charter schools in Alabama is another important

component of education reform in spite of the spirited opposition of the union, the Alabama Education Association.

Charter schools are public schools operated with taxpayer dollars and open to any student who wishes to attend despite their economic standing, school district or any other factor. "ey do not charge tuition and, in states where charter schools operate, have proven so popular that waiting lists for openings often exist.

Accountability and results are the top priorities in such schools, and the charters under which they operate speci$cally spell out the goals and student achievements they are expected to produce. Failing to meet these benchmarks, or unsuccessfully maintaining rigorous management and $scal accountability, results in the school’s closure.

CHAPTER 2 13

In return for operating under these heightened standards, educators in charter schools are allowed leeway in the education processes they employ so long as they produce expected results. Such freedom encourages innovation and experimentation in addition to the tried and true methods of teaching.

“We want to make sure that every taxpayer with children is not forced to send them to a failing school — that is not acceptable,” Hubbard said. “We have a great ally with State School Superintendent Tommy Bice, who understands this is simply a tool we want to give our education community.”

Hubbard conceded that charter schools are not needed in sections of the state where schools are operating up to par but emphasized that they would bring needed change to other areas, especially in the inner city, where evidence indicates schools are failing. He said he recently took a group of African-American legislators to Memphis, Tenn., to demonstrate how charter schools there have made a di!erence in the lives of minority students. Proponents point out that charter schools are not a panacea to $x education but simply another tool in our arsenal of education reforms.

"e four-term lawmaker encouraged attendees to view the public education system through an economic model with the student being a product, business serving as the customer, and schools $lling the role of manufacturer. A business that manufactured a product without consulting its customers would not remain viable for long, he noted, and that is the way public education has operated in Alabama for decades.

Another innovative bill traveling with the charter school measure will allow school systems to petition the state school superintendent for similar regulation %exibility enjoyed by charter schools while also requiring increased accountability.

Government e#ciency provides the third bullet on the legislature’s priority list this session, Hubbard said. A $400 million shortfall in the state’s $1.8 billion General Fund budget, which funds all of Alabama’s non-education government agencies, will force the legislature to consolidate agencies and prioritize state services. Hubbard said a study group from Auburn University has been designing a model that combines or abolishes state agencies, reduces duplication and eliminates needless government bureaucracy in an attempt to save scarce tax dollars. &&

“We have to make sure that every dime of taxpayers’ money is spent wisely and that services are not duplicative,” Hubbard said. “We want to


have a quality state government, but we don’t want to have an excessive state government. Remember, our job is to create private sector jobs, not state government jobs.”

He highlighted the Taxpayer Bill of Rights II bill and the reintroduction of the Made in Alabama Act that o!sets tari!s paid by foreign companies making investments in the state as other important priorities for legislators this session.

House panel OKs unemployment compensation fraud bill !Under current law, a person who fraudulently misrepresents that he

is unemployed for the purpose of receiving unemployment compensation bene$ts cannot be disquali$ed from receiving bene$ts. HB 72 by Rep. Paul DeMarco, R-Homewood, seeks to change that.

For a $rst o!ense, the bill would require up to a 52-week disquali$cation of bene$ts or until the amount that was awarded fraudulently is repaid in cash. For subsequent violations, the disquali$cation of bene$ts would be for a minimum 52 weeks, and the fraud overpayment must be repaid. Any federal or state funds due to the claimant could be intercepted by the Department of Industrial Relations (DIR) to repay the debt.

"e bill also further strengthens the penalties associated with fraudulent misrepresentation. Fraudulent bene$ts exceeding $2,500 would constitute a Class B felony, bene$ts between $500-$2,500 a Class C felony, and those under $500 a Class A misdemeanor. In lieu of $nes, the guilty person would pay restitution to DIR of at least the amount of bene$ts obtained. In committee, Rep. DeMarco told members the new penalties would allow the state to prosecute this type of fraud in the same manner as it prosecutes persons accused of theft.

HB 72 received a favorable report from the House State Government Committee with only one dissent. It now awaits debate from the full House.

BCA supports this bill.

Texting while driving could soon be illegal in Alabama!HB 2, by&Rep. Jim McClendon, R-Springville, passed on a unanimous

vote by the House Public Safety and Homeland Security committee this week. If passed, persons found operating a motor vehicle on an Alabama

CHAPTER 2 15

public road, street or highway while using a wireless telecommunication device to write, send or read a text-based communication would be subject to a $25 $ne upon a $rst violation, $50 $ne upon a second violation and $75 $ne upon a third violation.

"e bill makes texting while driving a primary o!ense, and individuals would be charged with a two-point violation on their driving record if found to have violated the law. "e bill now goes to the Senate.

BCA is monitoring this legislation.

House panel passes prescription requirement for common cold meds!

Employees may soon be forced to obtain a prescription for products containing pseudoephedrine, ephedrine and phenylpropamine.&

HB 88 by Rep. Mike Millican, R-Hamilton, which would classify these drugs as Class III controlled substances, passed the House Health Committee on a voice vote with only one dissenting vote.& If passed, products containing these drugs would no longer be available over the counter.&Proponents of the bill, which is modeled after a Mississippi statute, claim the law would cramp down on the manufacture of methamphetamine.

"e BCA is opposed to HB 88 in its current form.!While the BCA recognizes the need to eliminate meth labs in Alabama,&requiring employees to take time o! work to visit their physician to obtain a prescription for common cold and allergy medications would increase health care costs and reduce worker productivity.

BCA board member appointed to State Personnel BoardJoanne Randolph of Huntsville, a member of the BCA Board of

Directors, has been appointed to the Alabama State Personnel Board for a term of six years by Alabama Lt. Gov. Kay Ivey.

Randolph is president and CEO of the Women’s Business Center of North Alabama and is the former president and CEO of BizTech, which she founded in 1997. She&has more than 35 years of experience in entrepreneurship, small business incubator management, marketing and public relations, business management, property management, information technology and telecommunications consulting.&


From 1997 to 2002, Randolph was director of BizTech, Huntsville’s business incubator. After that project, she helped launch the Women’s Business Center of North Alabama and in 2005, became its $rst executive director.&

Washington BriefingSessions, Roby Address BCA Federal A"airs Committee

U.S. Sen. Je! Sessions and U.S. Rep. Martha Roby were special guests of the BCA Federal A!airs Committee this week. "e committee, which is in the process of $nalizing BCA’s Federal Legislative Agenda for the second session of the 112th Congress, met by conference call this morning.

Also joining the call were members of the Chamber of Commerce Association of Alabama as well as BCA’s Manufacturing Advocacy Council.

Sessions and Roby are both sponsors of the Honest Budget Act, S. 1651 and H.R. 3844, which targets accounting techniques in the federal budget process. Among other provisions, the Honest Budget Act would make it harder for Congress to pass spending bills without $rst passing a budget, would reveal the real cost and commitment of federal government spending, and would prevent Congress from claiming savings unless those savings are real and genuine.

Sessions, the top Republican on the Senate Budget Committee, shared with the committee that President Barack Obama will be releasing his budget on Monday. It has been more than 1,000 days since Congress passed a budget, and Sessions said that Senate Majority Leader Harry Reid has indicated this budget will not be brought to the Senate %oor for a vote.

Roby discussed the 27 bills passed by the House that are now stalled in the Senate, and during this election year, she does not foresee any of that legislation moving forward. Roby also indicated that the multi-year transportation reauthorization bill, the American Energy and Infrastructure Jobs Act of 2012 (H.R. 7), is expected to be brought up for a vote in the House next week.

Sessions are Roby are strong advocates for Alabama’s business community, and we appreciate the time they spent with us today.

CHAPTER 2 17

House Passes Insider Trading Bill"e House on "ursday voted 417-2 to approve an ethics reform

package that would prohibit insider trading by members of Congress and their sta!, as well as executive branch o#cials.

"e bill largely remains intact from the bill passed by the Senate last week, applying insider-trading laws to members of Congress and their aides as well as senior advisors in the executive branch. However, the House-passed version of the Stop Trading on Congressional Knowledge Act (STOCK Act) does not contain several provisions that the Senate included and, therefore, will head to a House-Senate conference to reconcile the di!erences.

"e House-passed version does not include the Senate-approved amendment that would require “political intelligence” practitioners to adhere to the same requirements as lobbyists. "ese consultants provide inside information to Wall Street — hedge funds and other information houses — which use the information to make money. "e House version replaces this provision with a mandated federal study of the industry to recommend legislative action next year.

"e House version also includes a provision that would restrict members of Congress from receiving access to initial public o!erings of stock.

FAA Reauthorization Bill Sent to President"e Senate on Monday passed a four-year, $63 billion compromise bill

to renew and extend federal aviation programs through 2015. "e Senate voted 75-20 to pass the measure.

"e House approved the measure last Friday by a vote of 248-169. President Obama is expected to sign it into law.

"e Federal Aviation Administration’s authorization expired in 2007. Since then, there have been 23 stopgap measures as lawmakers worked on an agreement toward a multi-year bill.

House Committee Approves Pipeline Bill"e House Energy and Commerce Committee on Tuesday voted 33-

20 to pass the North American Energy Access Act (H.R. 3548), which would require the Federal Energy Regulatory Commission to approve


TransCanada Corp.’s proposed Keystone XL pipeline thus removing the authority from President Barack Obama. "e bill would give FERC the authority to approve the project in 30 days.

"e legislation now heads to the full House where it will be attached to the $260 billion transportation bill. "e bill’s chances in the Democratic-controlled Senate remain unclear.

19


BCA-S U P P O R T E D J O B C R E A T I O N A N D R E T E N T I O N A C T PA S S E S H O U S E

“We need to be concerned about young people . . . if we don’t protect them, how are we going to protect this country?”

HA N K A A RO N

AEA fails in e"ort to kill job-creation bill

In the true spirit of bipartisanship,& HB 159, by Rep. Barry Mask, R-Wetumpka, garnered 65 votes to pass the House on "ursday afternoon. It was a minor break from tradition, in that HB 159, the

proposed constitutional amendment, passed after the enabling bill, HB 160, also by Rep. Mask, passed the House on Tuesday.

Together, both bills comprise the Alabama Job Creation and Retention Act of 2012 that was proposed by Gov. Robert Bentley and is supported by the BCA. It is intended to ensure that Alabama o#cials have the authority and %exibility to match the creative incentives o!ered by our sister states when recruiting industry and jobs to Alabama. Gov. Bentley was present on the House %oor during the debate, which speaks to the importance of the bill.

“"is legislation will give us an important new&tool to recruit&private-sector jobs our people need and deserve,”&Bentley said.& “"is will also encourage existing companies to expand their operations here.&As those companies make a greater investment in Alabama, we will be able to keep high-quality jobs in our communities.”& &

If passed and rati$ed by the voters, the legislation would convey broad authority on the governor to o!er tax incentives for companies that locate, expand or retain their operations in Alabama. "e provision that attracted


most of the criticism from the opponents would allow a percentage of the additional employees’ state income tax withholdings to be retained and used by the company to o!set the cost of acquiring the facility, but not more than the cost of the facility. Opponents, fueled by a misinformation campaign from the Alabama Education Association, continued to argue that education funding would be diminished further by the incentives, with no guarantee that the new jobs or retained jobs would generate enough revenue to pay for the incentives. However, these e!orts by AEA to pit job creation and education against each other were unsuccessful. It is interesting to note that an almost identical measure to HB 159, which contained even fewer safeguards than the current version, was approved by the House last year with a 99-0 vote and 82 co-sponsors.&

“We’re trying to give our state and local economic developers more tools to help grow existing businesses and land new industry, both of which result in more jobs for Alabamians,” Mask said. Mask is the economic development director for Elmore County.

On Tuesday, House members adopted amendments to HB 160 that incorporated more accountability into the incentive approval process. For retention projects, employers must undergo a $nancial review and guarantee that speci$c percentages of their employees will remain on the job as conditions for receiving the incentives. With the passage of HB 159 and the other jobs bills that were passed by the House, the Senate will begin considering job creation legislation next week.

House members voting for HB 159 were:Alan Baker, R-Brewton; Mike Ball, R-Madison; Jim Barton,

R-Mobile;& Richard Baughn, R-Lynn; Paul Beckman, R-Prattville; Elaine Beech, D-Chatom; Duwayne Bridges, R-Valley; K.L. Brown, R-Jacksonville; Mac Buttram, R-Cullman; Jim Carns, R-Birmingham; Donnie Chesteen, R-Geneva; Steve Clouse, R-Ozark; Terri Collins, R-Decatur; Randy Davis, R-Daphne; Paul DeMarco, R-Homewood; Dickie Drake, R-Leeds;&Allen Farley, R-McCalla; Joe Faust, R-Fairhope; Chad Fincher, R-Semmes; Craig Ford, D-Gadsden; Blaine Galliher, R-Gadsden;&Victor Gaston, R-Mobile; Lynn Greer, R-Rogersville; Micky Hammon, R-Decatur; Alan Harper, R-Aliceville; Ed Henry, R-Hartselle; Mike Hill, R-Columbiana; Joe Hubbard, D-Montgomery; Mike Hubbard, R-Auburn;& Jamie Ison, R-Mobile; Ken Johnson, R-Moulton; Ron Johnson, R-Sylacauga; Wayne Johnson, R-Huntsville; Mike Jones, R-Andalusia;& Paul Lee, R-Dothan; Wes Long, R-Guntersville; Jay

CHAPTER 3 21

Love, R-Montgomery;& Barry Mask, R-Wetumpka; Jim McClendon, R-Springville; Mary Sue McClurkin, R-Pelham; Mac McCutcheon, R-Capshaw; Steve McMillan, R-Bay Minette; John Merrill,& R-Tuscaloosa; Barry Moore, R-Enterprise;&Becky Nordgren, R-Gadsden; Jeremy Oden, R-Vinemont; Jim Patterson, R-Meridianville; Bill Poole, R-Northport; Kerry Rich, R-Albertville; Bill Roberts, R-Jasper; Oliver Robinson, D-Birmingham; John Rogers, D-Birmingham; Rod Scott, D-Fair$eld; David Sessions, R-Grand Bay; Harry Shiver, R-Bay Minette; Allen Treadaway, R-Morris; Mark Tuggle, R-Alexander City; Lesley Vance, R-Phenix City; Kurt Wallace, R-Maplesville; April Weaver, R-Brier$eld; Dan Williams, R-Athens;&Jack Williams, R-Birmingham; Phil Williams, R-Huntsville; Randy Wood, R-Anniston; Greg Wren, R-Montgomery.

‘Reg-Flex’ bill gets House panel OK"e House Committee on Commerce and Small Business approved

HB 150, by Rep. April Weaver, R-Brier$eld, the Small Business Flexibility Act of 2012, legislation that BCA has supported for several years.

"e bill de$nes the term “small business” as one being independently owned and operated and that employs less than 250 employees or has less than $25 million in sales. "e bill further requires state agencies to

Rep. April Weaver speaks on the bill with Rep. Barry Moore at right


analyze the impact(s) and to estimate the costs that their rules place on small businesses. "e bill also provides that agencies periodically review their new and existing rules to ensure that they are still needed and to ensure that the agency has not overlooked less intrusive and less costly alternatives.

"e bill now moves to the full House. &

Love, Marsh give session perspective"e BCA Governmental A!airs Committee, gathering this week at

its new Monday afternoon meeting time, heard remarks from two of the legislature’s most in%uential members—Senate President Pro Tempore Del Marsh, R-Anniston, and House Ways and Means Education Committee Chairman Jay Love, R-Montgomery.

Love outlined what he termed the three main priorities of the 2012 legislative session: jobs, education reform and crafting workable budgets, given the current tenuous state of government $nances.

“Other states around us have adjusted to what Alabama has been doing very e!ectively over the past 15 or 20 years starting with Mercedes, Hyundai, Honda and "yssenKrupp,” Love said, referring to proposed job creation legislation approved later this week by the House. “We have had a great run in terms of economic development coming to this state, but the other states are catching up, and we want to give those who negotiate these deals every tool they can have to bring those prospects and jobs to Alabama.”

Love noted that a healthy job market brings more revenue into the state’s co!ers and cited $gures that show for every 1 percent drop in Alabama’s unemployment rate, the Education Trust Fund budget receives an additional $160 million in new revenue.

Alabama’s economic recovery over the next few years will be fragile, Love predicted, and could be a!ected by events and turmoil in places as far away as Europe.

Economic turnaround predicated on education reform!Love said part of the state’s economic turnaround will also be predicated

upon education reform, and he highlighted two bills that will play an important role in that process. One provides local school systems with

CHAPTER 3 23

more %exibility in the regulations they must follow and another allows for the creation of charter schools as a pilot program in Alabama. Love added that the two bills may be combined into one before session’s end.

“I am very committed to charter schools, and I think, if you look at the public school system here, in Montgomery, we would be a poster child for why we need charter schools in this state,” Love said. “What ultimately comes out in terms of legislation is still to be determined, however.”

"e budget committee chairman said a suggestion by the Bentley administration that revenue earmarked for public education could be used to buoy programs within the anemic General Fund budget was not well received by members of the legislature and will not be implemented.

"e ETF, he said, is su!ering its own shortfall of roughly $140 million compared to FY2012 due largely to the Rolling Reserve Budget Act, which was passed by the legislature last year and requires revenue estimates to be based on a several year rolling average rather than unreliable economic predictions. Because of its almost $6 billion size, Love said the ETF can better absorb a shortfall than the much smaller General Fund.

“While the Rolling Reserve is di#cult medicine to take right now, eventually we are going to have to take it,” Love said. “We are going to be able to manage the cuts fairly e!ectively with only minimal impact on the classroom level.”

Marsh followed by saying the level of reform instituted thus far in the quadrennium has left him optimistic, and he feels certain that future positive changes are soon to follow. He referenced an E#ciency Division located on the third %oor of the Alabama State House that is looking into reducing duplication of state services and possible consolidation of several state agencies over time.

“We have met with the governor, and some of these e#ciencies can be implemented simply by executive order while other changes and consolidations will have to take place by statute,” Marsh said. “It will probably take a $ve-year process to get to a fully e#cient state government because we want to do it in a way that the state can absorb these changes over time.”

He said that predictions of his caucus losing unity after a $rst year “honeymoon period” during the quadrennium have proven wrong and added that some senators from across the aisle have indicated a desire to work in a more bi-partisan and friendly manner than in years past.


“"e body as a whole — Republicans, Democrats and our Independent — seem to understand we’ve got to work together during these tough times for the good of the state,” Marsh said. “I feel very con$dent that having the jobs bills up early will set a good mood for the state and help us, as leaders, provide hope to our citizens that things are going to get better.”

Metal theft bills advance in committeesTwo bills designed to combat metal theft passed House and Senate

committees this week. SB 35, sponsored by Sen. Ben Brooks, R-Mobile, passed the Senate

Judiciary Committee on Wednesday by a vote of 9-0. HB 278, sponsored by Rep. Bill Poole, R-Northport, passed the House Judiciary Committee on "ursday by a voice vote.

Following approval of the bills, BCA President and CEO William Canary said, “From churches and schools to hospitals, cemeteries and farms and even our own homes, metal theft a!ects all of us.&At the same time, I commend the sponsors of these bills for recognizing that the scrap recycling industry is a critical component of our economy, a key link in

Rep. Bill Poole explains bill to House Judiciary Committee

CHAPTER 3 25

the manufacturing supply chain and a leader in job creation. We urge the Alabama Legislature to approve these bills.”

House approves unemployment compensation fraud law changes !Changes to Alabama’s unemployment compensation fraud law are one

step closer to becoming law. HB 72, by Rep. Paul DeMarco, R-Homewood, passed the House of Representatives by a vote of 74-15.

Under current law, a person who fraudulently misrepresents that he is unemployed for the purpose of receiving unemployment compensation bene$ts cannot be disquali$ed from receiving bene$ts. HB 72 changes that.

For a $rst o!ense, the bill would institute a 52-week disquali$cation of bene$ts, beginning from when the fraud is determined, or until the amount that was awarded fraudulently is repaid in cash. For subsequent violations, the disquali$cation of bene$ts would be for 52 weeks until the fraud overpayment is repaid. Any federal or state funds due to the claimant could be intercepted by the Department of Industrial Relations (DIR) to repay the debt.

"e bill also further strengthens the penalties associated with fraudulent misrepresentation. Fraudulent bene$ts exceeding $2,500 would constitute a Class B felony, bene$ts between $500-$2,500 a Class C felony, and those under $500 a Class A misdemeanor. In lieu of $nes, the guilty person would pay restitution to DIR of at least the amount of bene$ts obtained.

Currently, unemployment fraud cases are prosecuted the same as theft of property cases, but the penalties have been inconsistent with the crime. Rep. DeMarco told members of the House that new penalties created in HB 72 would remedy the disparate prosecution of unemployment compensation fraud because it will strengthen penalties to mirror existing theft of property statutes.


House committee approves changes in unemployment compensation law

"e House Commerce and Small Business Committee gave a favorable report to HB 285, by Rep. Jack Williams, R-Birmingham. "e bill would establish a one-week waiting period during the $rst compensable week of unemployment compensation bene$ts for individuals seeking


unemployment compensation bene$ts. "e bill would amend current law that applies a one-week waiting period after the 13th compensable week of paid unemployment bene$ts. Individuals would be eligible to receive bene$ts for 26 consecutive weeks beginning with the second compensable week.

"e new waiting period would save the Unemployment Compensation Trust Fund $14.5 million dollars in the $rst year of implementation, according to the Alabama Department of Industrial Relations. Bill opponents dispute this claim, saying that because the average person is back to work within 12 weeks of being unemployed, he or she typically does not encounter the waiting period.

"e bill now goes to the full House.

Senate committee OKs options for employment veri#cationSB 195, by Sen. Paul Sanford, R-Huntsville, would provide Alabama

business entities and employers with options to verify the employment eligibility and immigration status of their workers. In addition to the federal E-Verify program, businesses would also be allowed to utilize the AL Verify program developed by the Center for Advanced Public Safety at the University of Alabama, the E-Verify employer agent service established by the Alabama Department of Homeland Security or a valid, unexpired Alabama driver’s license or nondriver identi$cation card to verify the employment eligibility status of workers. "e bill would also give the same options to subcontractors who are awarded state contracts, grants or incentives.

Under existing law, an individual conducting a “business transaction” with the state is required to verify his or her citizenship when applying for or renewing a vehicle license plate, a driver’s license, nondriver identi$cation card or a business license. SB 195 substitutes a “license transaction” for a “business transaction” and speci$es that a license transaction would not include the renewal of any of those transactions or any other license required by the state; rather, the proof of citizenship would only apply to the initial application submitted.&

SB 195 received a favorable report from the Senate Job Creation and Economic Development Committee by a vote of 6-2. "e bill now goes to the full Senate.

CHAPTER 3 27

House committee gives favorable report to impairment evidence bill

Under existing law, a failed drug test in the workplace is conclusive evidence of impairment in workers’ compensation cases. However, the burden is on the employer to prove that the impairment from drugs or alcohol actually caused the accident. HB 104, by Rep. Paul DeMarco, R-Homewood, seeks to change that.

If passed, neither medical or indemnity bene$ts would be awarded to an employee if the employee’s injury was a direct result of an impairment or intoxication. Also, the burden would be on the employee to prove that the impairment did not cause the accident when a positive drug test or blood alcohol content level of .08 percent is present. "e bill further allows the employer to request a hearing within 60 days of the failed drug or alcohol test and for a judge’s ruling within 15 days of the hearing. "e employer must continue to pay medical bene$ts until the medical provider is noti$ed by the judge that the employer is no longer responsible for payment of the employee’s medical treatment.

HB 104 passed the House Judiciary Committee on a voice vote. It now awaits consideration by the full House.&


Committees approve bills expanding incentives for state’s #lm industry

HB 243, by Rep. Terri Collins, R-Decatur, and its companion SB 290, by Sen. Gerald Dial, R-Lineville, received favorable reports from their respective committees, despite opposing testimony by the Alabama Education Association.

"e bill doubles the aggregate annual amount of taxes that production companies in the entertainment industry may recoup via rebate, from $10 to $20 million. It also doubles the cap on the size of each eligible entertainment project, to allow more and larger $lm projects to be eligible for incentives in the future.

Before $lm incentive legislation was enacted in 2009, with a few exceptions, Alabama had been frequently passed over as a location for major $lm projects. "e incentives have made Alabama competitive for $lm projects. However, according to proponents of the bill, Alabama is


just receiving a small portion of its potential share of $lm projects because of the limitations in place under current law. "e bills now move on to the House and Senate.

Committees approve some election bills, stop others!"e House Constitution, Campaign and Elections Committee on

Wednesday approved a handful of election bills that will require only minor changes to state law.

"e bill that received the most attention and opposition at a public hearing was HB 44, by Rep. Jack Williams, R-Birmingham.&Under this legislation, campaign volunteers would be required to remain 150 feet away from the door of any polling place on election day.&Current law only requires individuals handing out political information to remain 30 feet away from the door of any polling place.&"e committee approved the measure after representatives from AEA, the Alabama Democratic Conference and the Probate Judges Association spoke out against it.

Also on Wednesday, the House Ethics and Campaign Finance Committee took up three election bills, two of which were immediately sent to a subcommittee, which e!ectively kills the legislation. HB 200, by Rep. Chris England, D-Tuscaloosa, would prevent a corporation from contributing to a political action committee. HB 207, by Rep. Merika Coleman, D-Birmingham, would limit contributions made to candidates from individuals, corporations, business groups and political parties to $500 per election that the candidate’s name is on the ballot.

One bill approved by the House Ethics and Campaign Finance Committee was HB 246,& by Rep. Marcel Black, D-Tuscumbia.& "is legislation would provide that a candidate who does not $le a timely report of contributions and expenditures to the Secretary of State’s o#ce would be subject to a $ne of $100 for each day past the deadline that the report is due.&"is bill now goes to the full House.

Washington Briefing Congress Reaches Deal on Payroll Tax Cut Extension

House and Senate negotiators came to a bipartisan agreement this week on extending the payroll tax cut and unemployment bene$ts through the end of the year. "e current reduction of two percentage points in the

CHAPTER 3 29

6.2-percent Social Security payroll tax would continue through the end of the year.

"e turning point in the negotiations came when Republican leaders decided that the payroll tax package will not require o!setting costs for the tax holiday, which costs an estimated $100 billion.

In addition, the agreement would prevent a 27 percent cut in Medicare reimbursements paid to physicians treating Medicare patients. "is so-called “doc-$x” and the extension of unemployment bene$ts tacked on about $50 billion to the agreement. Finding new revenue and spending cuts to o!set the $50 billion cost became the sticking point in reaching an agreement.

Negotiators agreed to require new federal employees, beginning next year, to contribute 2.3 percent more of their salaries to their pension plans than current federal employees. Negotiators also reduced the current maximum of unemployment bene$ts from 99 weeks to 73 weeks in states with the highest unemployment and reduced bene$ts to 63 weeks in states that have been moderately a!ected by the recession.

An additional $15 billion would be achieved by selling radio spectrum to telecommunications companies.

Both chambers are expected to pass H.R. 3630 later today.

President Obama Delivers Budget to CongressPresident Barack Obama on Monday delivered to Congress his budget

proposal for $scal year 2013. "e president’s budget proposal normally serves as a starting point for Congress to consider; however, this year, everyone seems to agree the president’s $3.8 trillion budget stands no chance of passing.

"e president’s budget proposes ending the Bush-era tax cuts for families who earn more than $250,000, restoring the estate tax to its 2009 level, limiting subsidies for oil and gas companies and raising the tax rate on dividends from 15 percent to as much as 39.6 percent for families making more than $250,000.

"e budget also suggested that the alternative-minimum tax (AMT) should one day be replaced with the so-called Bu!ett Rule, which would require those earning more than $1 million to pay a tax rate of at least 30 percent.


"e president’s $3.8 trillion budget includes some $1.6 trillion in tax increases and would result in a $1.33 trillion de$cit in 2012 and a $900 billion shortfall in $scal year 2013.

Sen. Je! Sessions, ranking member of the Senate Budget Committee, called the president’s budget, “one of the most spectacular $scal cover-ups in American history.”

In a statement following the submission of the budget Sessions said, “"e White House claims they have introduced a plan to achieve $4 trillion in de$cit reduction... But these assertions rely on a calculated series of budget gimmicks. An honest analysis proves that the president’s plan achieves only $273 billion in total de$cit reduction over 10 years... Under this plan, we will accumulate $11 trillion in new gross debt... "e vision the president has laid out today leads to a bigger government, a smaller middle class and a painful debt crisis.”

House Begins Debate on Transportation and Energy BillsOn Wednesday, the House began consideration of the American

Energy and Infrastructure Jobs Act of 2012 (H.R. 7). "e bill is a long-term surface transportation reauthorization that maintains current funding levels and would streamline the permitting process to reduce bureaucratic delays. "e bill also would expand domestic energy production and approve the Keystone XL pipeline.

"e House is expected to complete debate on the energy provisions this week and take up the transportation infrastructure provisions during the week of February 27.

Last month, the Business Council of Alabama joined the U.S. Chamber-led coalition, Americans for Transportation Mobility Coalition, in calling for passage of a multi-year highway and transit bill this spring.

"e Americans for Transportation Mobility Coalition is a nationwide e!ort by business, labor, transportation organizations and concerned citizens to advocate for improved and increased federal investment in the nation’s aging and overburdened transportation system. Visit www.fasterbettersafer.org for more information.

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F I N A L L Y A P L A N TO F I X T H E G R O S S I N C O M E PR O B L E M

“"e probability that we may fail in the struggle ought not to deter us from the support of a cause we believe to be just.”

AB R A H A M LI N C O L N

The House Ways and Means-Education Committee gave a favorable report to HB 286, by

Rep. Jay Love, R-Montgomery, sending the bill to the House. "is bill would $x, once and for all, the Department of Revenue’s problems with the “Gross Income” issue. As committee members struggled to re-learn the history behind the issue, an AEA spokesperson attempted to convince the members to defeat the legislation.

For years, the department has been caught in the middle of a con%ict between the state income tax statutes and the department’s own regulation. Readers will remember that the statute directed Alabama resident owners/partners of “pass-through” entities that do business in multiple states to report their shares of the entity’s income from all sources. A departmental regulation, however, instructed the taxpayers to report their shares of the entity’s income earned in Alabama.

BCA Tax and Fiscal Policy Chairman Marty Abroms tells committee HB 286 is needed


A taxpayer who followed the regulation and applied all of his/her federal income tax deduction could then reduce or eliminate all of his state income tax liability.&

In the last regular session, however, the BCA, the Business Association Tax Coalition (BATC) and the Bentley administration negotiated compromise legislation, which passed the House overwhelmingly, but died, along with other bills, on the last night of the session when a $libuster blocked it from coming before the Senate. Following the session, all parties that had agreed to the compromise bill agreed that all would work for the bill’s passage when the legislature reconvened.&

"e compromise bill would require the taxpayer to recognize his/her share of income from all sources, and the taxpayer would receive credits for entity-level, income-like taxes paid to other states and receive a 50-percent credit for income taxes paid to foreign countries.

BCA Tax and Fiscal Policy Committee Chairman Marty Abroms, a certi$ed public accountant from Florence, traveled to Montgomery to speak to the committee on behalf of the bill, stressing that if the 50-percent foreign tax credit is not passed it would result in double taxation.

For years, the BCA o!ered in vain to work in good faith with the key parties to resolve this issue. "e BCA worked in good faith last year to come up with a mutually equitable solution outlined in HB 286 and is still working diligently to ful$ll its promises to enact the compromise legislation.

Senate passes metal theft bill"e Senate on "ursday passed the substitute to SB 35, sponsored by

Sen. Ben Brooks, R-Mobile, by a vote of 28-2-1. "e bill would impose more stringent requirements on those in the

scrap metal recycling industry. "ese businesses would be required to maintain for one year additional records relating to the purchase of scrap metal, including both a copy of the personal identi$cation card of the person delivering the metal to be sold, a digital photograph or video recording of that same person, and the vehicle license tag number and state of issue of the person delivering the metal property, among other items. Businesses that fail to obtain and maintain these records would face criminal penalties.

SB 35 also would classify as a felony the theft of certain metal property, including telephone, cable and power lines and poles; railroad materials;

CHAPTER 4 33

manhole covers; grave markers; and any metal property taken from a school or church.

Cash transactions would be limited to no more than $50 for copper, air conditioning coils and catalytic convertors. Persons younger than 18 years old would not be allowed to sell metal property, and metal property would only be purchased between 6 a.m. and 9 p.m.

A similar bill, HB 278, sponsored by Rep. Bill Poole, R-Northport, passed the House Judiciary Committee last week.

BCA supports this legislation.

Committee approves $650 million bond issue for rural roads and bridges

"e Senate Committee on Agriculture, Conservation and Forestry discussed and gave a favorable report to SB 339, by Sen. Paul Bussman, R-Cullman, which provides for the issuance of up to $650 million in bonds for construction and improvements of rural roads and bridges.

"e bill creates the Public Road and Bridge Construction Council, whose members will be the director of the department of transportation, the lieutenant governor, the commissioner of agriculture, the president pro tem of the Senate and the speaker of the House. "e council would review project proposals submitted by the counties and authorize funding, giving priority to rural economic development and rural education projects.

As an alternative to SB 339, Gov. Robert Bentley, in remarks "ursday to the 55th Annual Alabama Transportation Conference, outlined the use of&GARVEE (Grant Anticipation Revenue Vehicles) bonds as a way to $nance highway and transit infrastructure and help the state recruit jobs.&

“In this time when state dollars are limited, GARVEE bonds will allow us to pave today’s roads with tomorrow’s federal dollars,” Bentley said. “"rough the use of these bonds, we can fund much-needed road projects now, rather than wait for federal funding years from now.”

BCA is monitoring this legislation, which now moves to the full Senate, and the governor’s plans.

Panel approves bill providing for state ‘New Market Development Program’

"e House Economic Development and Tourism Committee favorably reported a substitute version of HB 257, by Rep. Jamie Ison, R-Mobile,


that would provide tax credits for investments in quali$ed community businesses in low-income communities.

If enacted, Alabama will join states such as Florida, Mississippi and Illinois that already have state New Market Development Programs that are modeled after the New Market Tax Credit Program established by Congress in 2000. "e federal program promotes investments in businesses and real estate projects located in low-income communities. When state incentives are coupled with federal incentives, community leaders have a potent tool to revitalize low-income census tracts in downtown core areas and central business districts. "e bill caps the credit at $5 million per transaction over a seven-year period, sets an aggregate cap of $20 million annually and limits the taxpayer’s credit to not more than the taxpayer’s state tax liability.

BCA supports this bill, which now will be considered by the full House

Coal mining incentives cut by 50 percent in Senate-passed billHB 144, by Rep. Bill Roberts, R-Jasper, provides that projects in the coal

mining industry would be eligible for the state’s capital credits and other abatements under the state’s “Mercedes” incentive law, but the incentives would be limited to 50 percent of the amount otherwise available to other industries.

"e Senate adopted an amendment o!ered by Sen. Trip Pittman, R-Daphne, that cut the credits and abatements in half for coal mining companies and excludes the coal company’s costs of acquiring land and the related preliminary engineering, architectural and environmental costs from the “capital costs,” which are otherwise recoverable for other qualifying industries.

"is bill will now return to the House, where the Senate’s changes to the bill will be considered.

Bills to extend the term of state’s capital credits make progressSB 48, by Sen. Arthur Orr, R-Decatur, and its companion HB 140, by

Rep. Mickey Hammon, R-Decatur, provide that businesses that qualify for the state’s income tax capital credits may carry forward the credits for up to four additional years. A Revenue Department report on the actual utilization of capital credits shows that signi$cant portions of credits are not taken because many companies are not pro$table in their early years of operation. &

CHAPTER 4 35

Qualifying companies that create at least 100 jobs and make investments of at least $100 million may have up to an additional four years to take the credits.


Senate committee OKs ‘Reg-Flex’ bill"e Senate Business and Labor Committee approved SB 222, by Sen.

Bill Holtzclaw, R-Madison, the Jobs Impact Act of 2012 legislation that BCA has supported for several years.

"e bill de$nes the term “small business” as one being independently owned and operated and which employs less than 250 employees or has less than $25 million in sales.

"e bill further requires state agencies to analyze the impact(s) and to estimate the costs that their rules place on small businesses. "e bill also provides that agencies periodically review their new and existing rules to ensure that they are still needed and to ensure that the agency has not overlooked less intrusive and less costly alternatives.

"e bill now moves to the full Senate. "e companion bill, HB 150, by Rep. April Weaver, R-Brier$eld, passed the House Commerce and Small Business committee last week, and now awaits consideration by the full House.&


Bill would promote Alabama artists by establishing cultural districts

"e House Committee on Economic Development and Tourism favorably reported a bill to give Alabama’s art industry a boost. HB 142, by Rep. Terri Collins, R-Decatur, authorizes the governing bodies of Alabama municipalities to designate cultural districts that are hubs of cultural activity and have a!ordable artist housing and workspace within their corporate limits.

"e bill further provides sales tax exemptions on sales of “one-of-a-kind limited” pieces of art created by an artist living in the cultural district. "e bill designates the Alabama Council on the Arts to develop the standard criteria for the establishment of cultural districts.

BCA is monitoring this bill, which now will be placed on the House calendar for consideration.


In Other NewsMore work needed on unemployment compensation fraud bill

Under current law, a person who fraudulently misrepresents that he is unemployed for the purpose of receiving unemployment compensation bene$ts&cannot be disquali$ed from receiving bene$ts. SB 137, by Sen. Paul Bussman, R-Cullman, changes that by instituting a three-year disquali$cation of bene$ts,&beginning from the date when the fraud is determined and until the amount that was awarded fraudulently is repaid in cash. Any federal or state funds due to the claimant could be intercepted by the Department of Industrial Relations (DIR) to repay the debt.

A similar bill, HB 72 by Rep. Paul DeMarco, R-Homewood, passed the House last week by a vote of 74-15.

BCA supports this bill.SB 137, which would set up a three-year disqualification of

unemployment compensation bene$ts, received a public hearing in the Senate Business and Labor Committee, but the committee delayed voting until more work could be completed on the bill.

Senate committee approves waiting period change"e Senate Job Creation and Economic Development Committee gave

a favorable report to SB 300, by Sen. Trip Pittman, R-Daphne. "e bill would establish a one-week waiting period during the $rst compensable week of unemployment& compensation bene$ts for individuals seeking unemployment compensation&bene$ts. "e bill would amend current law that applies a one-week waiting&period after the 13th compensable week of paid unemployment bene$ts.&Individuals would be eligible to receive bene$ts for 26 consecutive weeks&beginning with the second compensable week.

"e new waiting period would save the Unemployment Compensation Trust Fund $14.5 million dollars in the $rst year of implementation, according to the Alabama Department of Industrial Relations. Bill opponents dispute this claim, saying that because the average person is back to work within 12 weeks of being unemployed, he or she typically does not encounter the waiting period.

"e bill now goes to the full Senate.

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"e companion bill, HB 285, by Rep. Jack Williams, R-Birmingham, passed the House Commerce and Small Business committee last week and is awaiting approval from the full House.

Senate bill would make more changes in unemployment compensation law

SB 77, by Sen. Arthur Orr, R-Decatur, seeks to revise portions of the workers’ compensation law. After hearing testimony on the proposed changes, the Senate Business and Labor Committee gave the bill a favorable report with the agreement from Sen. Orr that he would work to resolve the concerns that were presented.

SB 77 would make $ve changes to the 37-year-old law. It would:Require an employee to provide to the trial court more evidence than simply his or her pain complaints in order for the employee to receive more compensation than what is allowed under the law for the total loss or loss of use of the speci$c body part.Terminate bene$ts for permanent total disability (PTD) when the employee reaches age 65 or 500 weeks after the date of the injury, whichever is longer.Increase the maximum weekly compensation for permanent partial disability (PPD) to $240. Currently the maximum amount is $220 per week.Relieve the employer from paying for an injured employee’s treatment if the employee does not receive medical treatment related to the claimed injury for a period of two years unless the employee can provide “clear and convincing proof ” that the treatment is related to the workers’ compensation injury. If the employee doesn’t seek medical treatment for four years after the injury, the employer is fully absolved from payment of medical bene$ts.Provide an “evidentiary standard of appeal.”

"e BCA will continue to work with Sen. Orr on comprehensive workers’ compensation reform.


S E N A T E B E G I N S D E B A T E O N E C O N O M I C D E V E L O P M E N T B I L L S

“Insanity: doing the same thing over and over again and expecting di!erent results.”

AL B E R T EI N S T E I N

The Senate Finance and Taxation-Education Committee heard testimony from both proponents and opponents of HB 160, the enabling bill, which — with the proposed constitutional amend-

ment HB 159 — comprises the Alabama Job Creation and Retention Act. Sponsored by Rep. Barry Mask, R-Wetumpka, the bills would allow a new or existing business to retain a percentage of its employees’ state income tax withholdings to o!set the cost of acquiring or expanding its facility, but not more than the cost of the facility.

Supporters of the legislation pointed out that the concept may be new to Alabama, but it is being used by 19 other states that are now winning projects that Alabama once competed for, until the state no longer provided direct $nancial incentives. Alabama Development O#ce Director Greg Can$eld emphasized that the legislation provides continuity, protections and safeguards, including the public disclosure of cost-bene$t analyses when negotiations are $nalized. Can$eld also stressed that for retention projects, the employer must agree to remain in the state at least $ve years and make an investment of at least $1 million in non-favored geographic areas and at least $500,000 in favored geographic areas.&

Sen. Phil Williams, R-Rainbow City, who is handling the bill in the Senate, described the competition among the states for industrial prospects as analogous to a soldier in a war zone who needs access to the best weapons available.

39


Proponents also circulated a handout by the Alabama Development O#ce that showed that for three real-world projects, the new revenue to the state would have far exceeded the cost of incentives, had the incentives provided for in this legislation been available.

Opponents continued to lament that the bill puts too much discretion under the governor and provides too few assurances that su#cient jobs would be created to justify the cost of incentives. Again, it was asserted that the legislation would move Alabama down to 50th in per-student funding. It also was asserted that the powers it gives to the governor to grant incentives could be abused for political purposes, to leverage campaign contributions.

Also speaking in opposition to the bill was Dr. Craig Pouncey, deputy superintendent for Finance and Administration at the State Department of Education, who urged committee members to be wary of the volume of incentive legislation, some of which he believes to be not well reasoned, as funding for public education has endured several lean years.&

"e committee delayed voting on HB 160 until its meeting next week.BCA supports the Job Creation and Retention Act.

Galliher, Surtees stress importance of economic incentives billsRep. Blaine Galliher, R-Gadsden, chairman of the powerful, agenda-

setting House Rules Committee, and Tom Surtees, who pulls double duty as the cabinet-level director of the Alabama Department of Industrial Relations and is also legislative director for Gov. Robert Bentley, were the featured speakers during this week’s meeting of the BCA Governmental A!airs Committee.

Galliher, now serving his $fth term in the legislature, highlighted the importance of incentive legislation like House Bills 159 and 160, which were recently approved by the House and sent to the upper chamber for consideration (see previous story). HB 159, a constitutional amendment that will go before voters in November if approved by the Senate, would allow the governor and the state’s economic recruiting arm more authority to o!er incentives to potential large employers and mega-projects when competing against other states. "e bill also provides them the ability to encourage existing large employers to remain in Alabama when they are tempted to relocate.

CHAPTER 5 41

He noted that both HB 159 and its enabling legislation HB 160, are strongly opposed by the Alabama Education Association, which argued both had the potential to drain resources from the state’s Education Trust Fund.

“I have argued with [AEA] for years on the need for incentives for industry, and not only for new industries, but for existing industries, as well,” Galliher said. “About three years ago, I brought executives with Goodyear Corporation [which has a major manufacturing facility located in Galliher’s district] to meet with BCA and discuss the very real possibility that its Gadsden plant was going to leave Alabama. At that time, I proposed a capital reinvestment act, similar to the one contained in HB 159, that the state needed in order to convince existing industries to maintain roots within Alabama.”

According to Galliher, the Gadsden Goodyear plant employs roughly 1,600 people with an average salary of about $40,000 to $50,000 a year and provides each with what he termed a “gold-plated bene$ts package” through Blue Cross/Blue Shield. "e loss of those jobs, he said, would devastate the community, a fact he has shared with the local hospital administrator and other area leaders.

But successful passage of the HB 159 constitutional amendment will help preserve the Goodyear jobs and others like them around the state, Galliher said.

“We were able to pass HB 159 and HB 160 out of the House only with the help of the Business Council of Alabama, the Alabama Power Company and various other groups,” Galliher said. “Now it is in the bosoms of our good brethren in the Senate, and I hope they will hold $rm because it is the right thing to do.”

Galliher implored those in attendance to get involved in the referendum election, should HB 159 go to the public for rati$cation, and work to counter the e!orts of interest groups who oppose it.

“"ere are people who believe what the opposition is saying just because it is in print,” Galliher said. “Now it’s our job to rebut that, change their minds and show them what the real story is because we are not only working for today’s jobs, we are also deciding whether our grandchildren will have jobs for decades to come.”

Surtees, who was introduced as a long-time BCA member and former committee chair, outlined the priorities assigned to him by the governor in


his new role as the Bentley administration’s director of legislative a!airs: jobs, education, health and transportation.

Funding for groundbreaking education programs like the Alabama Reading Initiative; the Alabama Math, Science and Technology Initiative; ACCESS Distance Learning; and pre-kindergarten are protected in the budget Bentley submitted to the legislature, according to Surtees.

“We have essentially doubled funding for access to advanced placement programs for students in the Black Belt,” Surtees said. “And we have included funding for a $300 tax credit - not a deduction but a dollar-for-dollar tax credit - for public school teachers who purchase work supplies.”

He predicted that the upcoming debate over charter schools, which are public schools that are allowed leeway in the education processes they employ so long as they produce expected results, will become as contentious as the discussion over HB 159 and will likely include some of the same type of misinformation being spread by opponents.

“I read one piece opposing HB 159 that said if 200 employers hire 1,000 people each, it will cost the Education Trust Fund several hundred million dollars,” Surtees said. “"e truth is, if 200 employers hired that many workers, it would create 200,000 new jobs, and since we only have 165,000 people unemployed in Alabama, we’d have to import workers from other states.”

In addition to allowing public charter schools to enjoy freedom from Education Department regulations, Surtees said another Bentley-supported bill would allow entire school systems to apply for waivers from rules and regulations they $nd cumbersome and obstructive to meeting their goals.

He told the group that a federal program o!ering low-interest road-building bonds, known as GARVEE Bonds, has provided the state an opportunity to make needed road and bridge improvements while saving money on future costs.

“We can borrow money using GARVEE bonds on a 1.5 percent interest rate as opposed to the in%ation rate on future road projects going up 4 to 6 percent, so it just makes sense to start projects now instead of waiting until later,” Surtees said. “We can let these GARVEE bonds at $250 million increments, but we aren’t looking to four-lane every two-lane road in the state. We are looking to maintain our roads and certainly upgrade our posted bridges that do not allow trucks or school buses to pass over them.”

CHAPTER 5 43

A variety of incentives for manufacturers, the coal industry, the $lm and television industries and others make up the cornerstone of Bentley’s job creation package, Surtees said.

Streamlining state government is yet another Bentley priority, and Surtees said legislation that would combine the Children’s A!airs agency and the O#ce of Multiple Needs Child into the Department of Human Resources will soon be $led, along with a bill to combine the Department of Labor and the Department of Industrial Relations into one Department of Labor.

Measures to make it easier for Alabama-based businesses to bid on projects with the state, an unemployment compensation fraud crackdown bill, a Taxpayers’ Bill of Rights and other pro-business measures round out the executive agenda, he said.

House passes metal theft bill"e House on "ursday passed the HB 278, sponsored by Rep. Bill

Poole, R-Northport, by a vote of 83-8. A similar bill, SB 35, sponsored by Sen. Ben Brooks, R-Mobile, passed

the Senate last week. Both bills would impose more stringent requirements on those in the scrap metal recycling industry, requiring these businesses to maintain for one year additional records relating to the purchase of scrap metal, including both a copy of the personal identi$cation card of the person delivering the metal to be sold, a digital photograph or video recording of that same person, the vehicle license tag number and state of issue of the person delivering the metal property. "ose businesses that fail to obtain and maintain these records would face criminal penalties.

HB 278 would classify as a felony the theft of certain metal property, including telephone, cable and power lines and poles; railroad materials; manhole covers; grave markers; and any metal property taken from a school or church. It also raises the crime to a felony if the theft or destruction of these items causes imminent danger to the health and safety of the public.

Cash transactions would be limited to no more than $50 for copper, air conditioning coils or catalytic convertors. Persons younger than 18 years old would not be allowed to sell metal property, and metal property would only be purchased between 6 a.m. and 9 p.m.

HB 278 would also require scrap metal recyclers to register with the Alabama Criminal Justice Information Center (ACJIC) or other


responsible state agency and transmit electronically all of their business transactions to the database each day. An amendment was o!ered and accepted that allows only properly authorized law enforcement agencies to access this data.

BCA has been a part of the broad coalition of business and manufacturing leaders, energy providers, law enforcement, municipalities, churches, scrap recyclers and lawmakers working together for months to develop this legislation to address this growing epidemic.


Bill to provide incentives for coal industry transmitted to governor

HB 144, by Rep. Bill Roberts, R-Jasper, is the $rst of the job creation bills to pass the Alabama Legislature this session. "e bill provides that projects in the coal mining industry will be eligible for the state’s capital credits and other abatements under the state’s “Mercedes” incentive law, but the incentives will be limited to 50 percent of the amount otherwise available to other industries.&

Both the House and the Senate agreed to a conference committee report that also excludes the coal company’s costs of acquiring land and the related preliminary engineering, architectural and environmental costs from being included as “capital costs,” which are otherwise recoverable for other qualifying industries.

"e governor may sign the bill or return it to the legislature with an executive amendment.

Bills seek an erosion of employer constitutional property rights and would destroy jobs in Alabama

Once again, companion bills have been introduced in the Alabama Legislature that would erode the constitutional property rights of individuals and businesses. SB 331, by Sen. Paul Sanford, R-Huntsville, and HB 471, by Rep. Craig Ford, D-Gadsden, violate the rights of property owners by making it illegal for businesses and individual property owners to establish a policy that prohibits anyone from bringing a gun onto that person’s property. Although the bills speci$cally target businesses and employers, they also authorize new lawsuits against anyone in Alabama

CHAPTER 5 45

who owns property and denies a person with a gun access to carry the gun on that property.&In fact, the bills violate both the Alabama and U.S. Constitution-guaranteed property rights.

As stated in the Alabama Constitution: “the sole object and only legitimate end of government is to protect the citizens in the enjoyment of life, liberty, and property and when the government assumes other functions it is usurpation and oppression.”" Alabama Const. of 1901, Section 35.

Private companies in Alabama are already struggling with excessive rules and regulations that burden their operation and increase their costs.&"e inescapable result of this legislation would be to increase employer costs — including insurance costs — and the loss of jobs.&Particularly in the current economic environment, government should not intrude on private property rights in a manner that results in more Alabamians $nding themselves out of work.

More egregiously, these bills are essentially a dream come true for trial lawyers. While Alabama businesses are already plagued with countless frivolous lawsuits, this proposal would add fuel to the $re.&HB 471 and SB 331 would authorize an individual injured on property where there existed a no-guns policy to sue the property owner for his injuries.&"e creation of another cause of action against which property owners would be required to defend themselves is simply bad public policy.

Public hearing held on bill allowing ‘open carry’ of weapons"e Senate Judiciary Committee held a public hearing on SB 337, by

Sen. Scott Beason, R-Gardendale. "e bill would authorize a person to carry a pistol in his or her vehicle without a concealed pistol permit and to carry a concealed pistol on another’s property.

Proponents contend that persons should be allowed to carry weapons anywhere, including in their vehicles, and that law-abiding citizens must be able to defend themselves from any potential threats.

Opponents in law enforcement argue that while they support a person’s right to carry a weapon, it is a safety issue, and if permits are no longer required, o#cers would not have any way to determine if a person is a convicted felon or if they could present some other form of danger.&

"e committee is expected to vote on the bill next week. BCA’s 2012 Legislative Agenda states: We will oppose any legislation that allows persons to openly carry loaded or unloaded handguns in public or in the workplace.


Committee to preview substitute version of Taxpayers’ Bill of Rights/Alabama Tax Appeals Commission !!

Rep. Paul DeMarco, R-Homewood, chair of the House Judiciary Committee and sponsor of HB 105, will circulate among his committee members a substitute version of a bill that provides for an independent tax appeals tribunal and updates several provisions of the Alabama Taxpayers’ Bill of Rights. "e BCA and other business associations under the auspices of the Business Associations Tax Coalition have supported this legislation for several years. "e committee will consider HB 105 at its meeting next week.


House passes bill to expand incentives for #lm industryAmid the accolades for the state’s second Academy Award winner,

Octavia Spencer, the Alabama House overwhelmingly passed HB 243, by Rep. Terri Collins, R-Decatur, on Tuesday by a vote of 101–0. "e bill doubles the aggregate annual amount of taxes that production companies in the entertainment industry may recoup via rebate from $10 to $20 million, and it doubles the cap on the size of each eligible entertainment project, to allow more and larger $lm projects to be eligible for the incentives in the future.

"e entertainment incentives clearly have made Alabama competitive for $lm projects, as more than 60 percent of the current $scal year’s allotment of $lm incentives has been awarded in the $rst four months of the year. Still, according to proponents of the bill, Alabama is receiving just a small portion of its potential share of $lm projects because of the limitations in place under current law. "e bill now moves to the Senate.

Senate Committee cuts incentives for data centers, denies incentives for warehousing operations

"e House-passed version of HB 154, by Rep. Dan Williams, R-Athens, would extend the maximum term that abatements may be granted for data centers from 10 to 30 years and reduce the minimum number of new jobs from 50 to 20 that must be added to receive abatements or capital credits. "e House-passed version also would broaden the de$nition of “industrial and research enterprise” to include warehouse and storage operations.

CHAPTER 5 47

HB 154 was favorably reported from the Senate Finance and Taxation-Education Committee to the full Senate but with provisions that are markedly di!erent from the House-passed version. An amendment by committee Chairman Sen. Trip Pittman, R-Daphne,&would:

1) Disallow purchases of computer software used in the data center’s operations to be tax exempt as a “construction related transaction tax.” &

2) Double the capital investment thresholds necessary to receive abatements of 20 and 30 years. &

3) Exclude the warehousing industry from qualifying for abatements and capital credits as “industrial or research enterprises.” &

4) Add a sunset provision e!ective 12/31/2018 to the abatements and capital credits, unless the legislation is reauthorized every $ve years.

5) Deny the incentives in years when the state unemployment rate is less than 6 percent.

Several members expressed concerns that the denial of incentives to the warehousing industry might inadvertently exclude distribution centers, agricultural warehouses and auto equipment/parts warehouses. Sen. Pittman promised that before the bill is considered by the Senate, he would make sure that those businesses would be eligible for the incentives.&

In Other News !Business would bear the brunt of costs from PBM licensure bill

HB 254, by Rep. Ron Johnson, R-Sylacauga, would require the licensing and regulation of pharmacy bene$t managers by the Alabama State Board of Pharmacy.

Commonly known as PBMs, these companies contract with prescription drug companies and pharmacies to provide discounts and rebates to health insurance companies and self-insured employers who provide prescription drug coverage to their employees. PBMs simply manage prescription drug bene$ts for health insurance companies and large, self-insured employers that contract directly with them. "ey are not pharmacies, and should not be regulated or licensed by the Board of Pharmacy. Current law requires health insurance companies to regulate PBMs, so additional oversight would only increase costs for consumers because the Board of Pharmacy could require


the PBMs to cover more expensive drugs, reimburse pharmacists at higher rates for dispensing the medications and pay licensing fees to the Board of Pharmacy, all of which would be passed on to the consumer — Alabama businesses.

After much discussion, HB 254 was given a favorable report by the House Health Committee on a voice vote.

BCA is opposed to any legislation or regulation that would increase health care bene$t costs, in this case prescription drug costs, to Alabama consumers.

Judiciary committee approves constitutional amendment raising judicial retirement age

"e Senate Judiciary Committee on Wednesday approved SB 256, a constitutional amendment by Sen. Tom Whatley, R-Auburn, which will increase the retirement age of judges to 75. Under current law, no person may be elected or appointed to a judicial o#ce after reaching the age of 70 years.&

Under the proposed amendment, a judge may be appointed to the o#ce of supernumerary judge so long as he is not eligible to receive state judicial retirement bene$ts.

Washington BriefingBCA Urges Passage of Fair Interstate Corporate Taxation Bill

On Wednesday, the Business Council of Alabama joined more than 150 businesses, trade associations and taxpayer groups from across the country in sending a letter to House Speaker John Boehner and Democratic Leader Nancy Pelosi urging them to pass H.R. 1439, the Business Activity Tax Simpli$cation Act (BATSA).

H.R. 1439 would set a uniform standard for state taxation of the income of non-resident companies, ending unfair, confusing and costly state corporate income taxation.

If passed, H.R. 1439 would permit states to impose income-based taxes only on companies that have a physical presence in the taxing state. States would be prohibited from taxing the income of companies that solicit sales in the state. H.R. 1439 would not a!ect sales tax.

CHAPTER 5 49

"e letter explains why H.R. 1439 should be approved. Among other things, the bill would create a “bright line” standard for business activity taxation, eliminate confusion for state tax administrators and businesses, and reduce audits, lawsuits and guess work. It would also encourage economic development and job growth.

“Enactment of BATSA would lead to greater investment in U.S. business growth and jobs by clarifying the standards for imposition of business activity taxes by states and localities on multi-state businesses by resolving widespread uncertainty... If the bill were to become law, businesses would not be avoiding taxes. "ey would simply be paying taxes in the proper jurisdictions,” the letter said.

"e House Judiciary Committee approved BATSA by voice vote and reported it to the full House last summer.

House Passes Resolution Commemorating the 1965 Selma to Montgomery Marches

"e House on "ursday voted to pass a resolution, H.Res. 562, sponsored by U.S. Reps. Terri Sewell and Martha Roby, that directs the House historian to compile oral histories from current and former Members of Congress involved in the historic and annual Selma to Montgomery marches, as well as the civil rights movement. "ese documents will be used to expand and augment the historic record for public dissemination and education.

“As a Selma, Alabama, native, I am proud and humbled to introduce this bi-partisan congressional resolution acknowledging the historical signi$cance of the Selma to Montgomery marches, which led to the passage of the Voting Rights Act of 1965,” said Sewell. “"is resolution ensures the preservation of the historical recollections of countless freedom $ghters who served as members of Congress, such as my esteemed colleague Rep. John Lewis.”

Roby said, “What took place during three historic marches in Alabama over a three-week period in 1965 proved to be a powerful transformation in American history. "e courageous actions of so many moved our country out of an era of misguided actions. Participants marched towards a uni$ed goal — to provide equal voting rights for all Americans.”

"e resolution passed the House by a vote of 418-0.


Senate Tables ‘Conscience Exemption’ Health Care Amendment"e Senate on "ursday voted 51-48 to table an amendment that would

have allowed employers and insurers to opt out of parts of last year’s health care law on moral or religious grounds.

"e measure was an attempt to broaden the Obama administration’s controversial birth control health coverage rule, which only fully exempts explicitly religious organizations from requirements that worker health plans include contraceptive coverage with no out-of-pocket expenses.

Under this amendment, any non-religious employer with a moral objection would have quali$ed. "e measure was o!ered as an amendment to the highway funding bill.

C H A P T E R 6March 5, 2012

S I Z I N G U P T H E PS E U D O E P H E D R I N E B I L L

“"ose who can, build.”RO B E R T MO S E S

The Business Council of Alabama welcomed new members to its Board of Directors on Tuesday as part of its annual Capital Lead-ership Day. "e members were briefed by BCA sta! on BCA’s leg-

islative agendas, policies and upcoming events as well as their responsibili-ties as board members at a luncheon.&"e new members received special pins from First Vice Chairman Carl Jamison, then attended their $rst full board meeting and a business-education alliance policy forum presented by BCA and the Alabama School Readiness Alliance.

When a state doesn’t invest adequately in educating its youngest children in high-quality pre-kindergarten programs, the long-term e!ects can result in widening achievement gaps, increased healthcare costs and additional burdens on business, according to W. Steven Barnett, director of the National Institute for Early Education Research (NIEER) at Rutgers University.

Barnett spoke to the board and invited guests from the education community and state government about the proven economic return of funding pre-K programs.

Alabama has an advantage, Barnett said, because its First Class voluntary pre-K program is in place and is “very high quality. It just needs to be available to more kids, and the business community understands that,” he said. "e next step is to secure political support to drive up the enrollment without cutting the quality. “"at will be the key to success,” he said.

New members of the BCA board are:Pamela Burnham, Saraland Area Chamber of Commerce, Saraland

51


Je! Coleman, Coleman World Group, Midland CityJ. Danny Cooper, Alabama Association of REALTORS, Montgomery Edward Crowell, VT Miltope Corporation, Hope HullRon Davis, ZF Lemforder Corporation, Tuscaloosa Ashley Eiland, Andalusia Area Chamber of Commerce, Andalusia Al Garrett, Robertson Banking Company, Demopolis Keith Granger, Trinity Medical Center, Birmingham Perry Hand, Volkert, Inc., Mobile Bill Lyons, Lyons HR, Inc., Florence Sid McAnnally, Energen Corporation, Birmingham Mark Nix, In$rmary Health, Mobile Marty Parker, Boise Paper, Jackson Joanne Randolph, Women’s Business Center of North Alabama, Huntsville John Turner, Regions Financial Corporation, Mobile Phil Webb, Webb Concrete & Building Materials, Inc., He%in Barry Whatley, Craftmaster Printers, Inc., Auburn Lisa Williams, System Dynamics International, Huntsville

BCA First Vice Chairman Carl Jamison presents BCA pin to new board member Lisa Williams

CHAPTER 6 53

Robert Vaughan, Alabama Self-Insured Worker’s Compensation Fund, Birmingham Morri Yancy, Lake Guntersville Chamber of Commerce, Guntersville Ronald Yarbrough, America Apparel, Inc., Selma &

Following the board meeting and forum, BCA hosted its annual Salute to State Leaders reception at the Montgomery Renaissance Hotel. More than 500 persons attended.&

Cybercrime law update, jobs bills priorities for judicial panel chairs"

"e chairmen of the Senate and House Judiciary committees — Sen. Cam Ward, R-Alabaster, and Rep. Paul DeMarco, R-Homewood, respectively — addressed this week’s meeting of the BCA Governmental A!airs Committee and outlined the bills and initiatives they consider priorities for their panels to address.

Ward said that updating Alabama’s antiquated cybercrime law is fundamental to protecting citizens from one of the fastest-growing forms of larceny in the United States and noted that our state ranks 12th in the nation in the number of identity theft victims.

BCA President and CEO William Canary, NIEER Director Steven Barnett and Chairman Terry Kellogg


“When our cybercrime laws were last updated in 1985, Ronald Reagan was president, New Coke was an idea being discussed, and Atari game systems were the closest thing to computers that families had in their homes,” Ward said. “Today, our iPhones have more technology, memory and ability to display information than all of the computers had at the time when our laws were last updated.”

Laws currently on the books, Ward said, are insu#cient to $ght those who spread malicious viruses and steal digital information from businesses and individuals. He added that his bill, SB 356, which has already passed the Senate Committee, addresses serious technology issues and makes it easier to prosecute those who engage in phishing, the sowing of Trojan viruses and network hacking. "e companion bill is HB 400 by Rep. DeMarco.

Several tax incentive bills, which would give the governor and the state’s chief job recruitment agency more discretion in the incentives they may o!er to attract or retain industrial megaprojects, were recently approved by the House but remained bogged down in the Senate due to philosophical di!erences over their contents, he said.

HB 154, for example, was designed to attract warehouse and distribution centers for major retailers to the state, but Ward said the removal of an important provision threatens its e!ectiveness and could result in Alabama losing a major Hibbett Sporting Goods facility, along with the jobs it carries. He concluded by encouraging the group to lobby to have the bill returned to its original version.

DeMarco highlighted the fact that the House and Senate Judiciary committees have worked together more closely than in quadrenniums past and pointed to a series of statewide joint hearings on issues such as digital crime and synthetic drugs as evidence of the new cooperative relationship.

“Having the committees work together is more e#cient and makes it easier for the public and various groups to keep track of what we are doing together rather than having a guessing game about what each is doing separately,” DeMarco said. “All the business community asks for is certainty and a level playing $eld, and I think many of the bills you see our committees handling bring just that.”

DeMarco said he continues to work on a Taxpayer Bill of Rights measure, which he has sponsored for the past several sessions, and has pushed sweeping, and much needed, workers’ compensation fraud legislation that continues to work its way through the process.

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/ 1

Business Council of AlabamaVolume 3 | Issue 2

ADVOCATET h e B u s i n e s s

EDUCATION / WORKFORCE PREPAREDNESS

Adopted by the BCA Board of Directors on December 2, 2011

The Business Council of Alabama’s

2012 STATE LEGISLATIVE AGENDA

House Speaker Mike Hubbard and Senate Presi-dent Pro Tem Del Marsh thanked the BCA for its hard work during the past session


2 /

The Agenda

T h e B u s i n e s s A d v o c a t e

BCA Education Committee members listen to legislative updates.

57

/ 3


ENVIRONMENT & ENERGY

The Agenda

The BCA will oppose:

Rep. Mary Sue Mc-Clurkin speaks to

BCA committee about bills a!ecting

business

Sen. Arthur Orr updates BCA commit-tee on legislative actions


4 /


The Agenda


HEALTH Sen.. Greg Reed tells the BCA Health Committee about chal-

lenges in the coming year.

59

/ 5


JUDICIAL & LEGAL REFORM

The Agenda:

The BCA will oppose:Senate President Pro Tem Del Marsh visits with

Judicial Committee Chairman Debbie Long and BCA member Denson Henry


6 /


SMALL BUSINESS

Lt. Gov. Kay Ivey talks with BCA small business mem-bers Greg Powell, Ron Perkins and Mack Ferguson of

the Talladega Chamber of Commerce

The Agenda:

2011 BCA Chairman Will Brooke and 2nd Vice Chairman Carl Jamison

Rep. Phil Williams and BCA Small Business Chairman Ron Perkins listen to report by

House Speaker Mike Hubbard

61

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TAX & FISCAL POLICY

The Agenda:


Sen. Trip Pittman addresses the Tax and Fiscal Policy Com-mittee; below, Committee Chairman Marty Abroms discusses

the agenda as BCA sta! member Victor Vernon looks on.


8 /


The Agenda:

LABOR AND EMPLOYMENT

Education Committee Chairman Bob Powers talks with Dr. Amy Bishop of the Workforce Development O!ce

and Rep. Pebblin Warren.

Anita L. ArchieSenior Vice President for Intergovernmental Affairs, Advocacy and Communications and Legal Advisor334-240-8775 | Fax [email protected]

William J. CanaryPresident and Chief Executive Officer334-240-8714 | Fax: [email protected]

Mark ColsonChief of Staff and Executive Director for ProgressPAC334-240-8724 Fax: [email protected]

Claire HaynesDirector, Legislative Advocacy and Intergovernmental Affairs334-240-8726 | Fax: [email protected]

Nancy Wall HewstonDirector, Federal Governmental Affairs and Strategic Communications

334-240-8725 | Fax: [email protected]

Nathan LindsayDirector of Political Affairs and Regional Operations334-240-8766 Fax: [email protected]

Victor VernonDirector, Legislative Policy and Intergovernmental Affairs334-240-8725 | Fax: [email protected]

Lenore Reese VickreyDirector, Strategic Affairs and Advocacy Communications334-240-8740 | Fax: [email protected]

Pam WareManager, Intergovernmental Affairs, Advocacy and Communications334-240-8719 | Fax: [email protected]

Business Council of Alabama Intergovernmental Affairs, Advocacy and

Communications Team

CHAPTER 6 63

“Currently in Alabama, you can be intoxicated or impaired due to drugs and still receive lifetime medical bene$ts because the burden is on the employer to prove the impairment, and my bill bars lifetime bene$ts and shifts the burden from the employer to the employee,” DeMarco said. “We want existing businesses and prospective businesses alike to look at Alabama and know that we have fair workers’ compensation laws on the books so they will be comfortable operating here.”

Also touching upon the incentive bill Ward discussed, DeMarco said its passage is vital to Je!erson County and the Birmingham area due to the number of projects it a!ects. He said he is working with a group of north Alabama legislators to pass legislation that is acceptable and e!ective.

House Health Committee OKs revised pseudoephedrine bill!HB 363, by Rep. Blaine Galliher, R-Gadsden, seeks to cramp down

on the manufacture of methamphetamine in Alabama while still allowing persons to purchase over-the-counter products containing ephedrine and pseudoephedrine (PSE), such as common cold and allergy medications.

As a result of a law passed in 2010, products containing these medications can be sold at any retail establishment so long as the medications are kept either behind the counter or in a locked box, a photo-government ID is presented by the person purchasing the products, and the retailer is registered with the electronic tracking system known as NPLEX. "e NPLEX system is an electronic database used by more than 20 states to help law enforcement o#cers track sales of PSE and ephedrine products. Persons who purchase these products are entered into the electronic tracking system, which will block the sale of these products when a person has exceeded the monthly allowance allowable under the law. Although the NPLEX system blocked almost 100,000 attempted sales of PSE and ephedrine products in 2011, some law enforcement groups and legislators questioned the success of the system and the 2010 law at reducing the manufacture of meth in Alabama and introduced legislation this session requiring a prescription for products containing these medications.

While the BCA recognizes the necessity of taking steps to decrease the manufacture of methamphetamine, requiring a prescription for a common cold or allergy product otherwise considered to be safe and e!ective would greatly increase employers’ health care costs and decrease employee productivity by requiring employees to take time o! work to be

8 /


The Agenda:

LABOR AND EMPLOYMENT

Education Committee Chairman Bob Powers talks with Dr. Amy Bishop of the Workforce Development O!ce

and Rep. Pebblin Warren.

Anita L. ArchieSenior Vice President for Intergovernmental Affairs, Advocacy and Communications and Legal Advisor334-240-8775 | Fax [email protected]

William J. CanaryPresident and Chief Executive Officer334-240-8714 | Fax: [email protected]

Mark ColsonChief of Staff and Executive Director for ProgressPAC334-240-8724 Fax: [email protected]

Claire HaynesDirector, Legislative Advocacy and Intergovernmental Affairs334-240-8726 | Fax: [email protected]

Nancy Wall HewstonDirector, Federal Governmental Affairs and Strategic Communications

334-240-8725 | Fax: [email protected]

Nathan LindsayDirector of Political Affairs and Regional Operations334-240-8766 Fax: [email protected]

Victor VernonDirector, Legislative Policy and Intergovernmental Affairs334-240-8725 | Fax: [email protected]

Lenore Reese VickreyDirector, Strategic Affairs and Advocacy Communications334-240-8740 | Fax: [email protected]

Pam WareManager, Intergovernmental Affairs, Advocacy and Communications334-240-8719 | Fax: [email protected]

Business Council of Alabama Intergovernmental Affairs, Advocacy and

Communications Team


treated by a physician for a common cold. As a result, the BCA worked with Rep. Galliher, several business groups and law enforcement, including the District Attorney’s Association, to make changes to the existing law that would not penalize consumers who purchased the products for lawful reasons and would also provide tracking mechanisms bene$cial to law enforcement that would help crack down on those who purchase these products to manufacture meth.

HB 363 makes the following changes:1) Requires products containing PSE and ephedrine to be sold behind

the counter and only in a pharmacy.2) Broadens the de$nition of the crime of “smur$ng” and makes it

a Class B Felony. “Smur$ng” is when a person purchases; attempts to purchase; solicits; or conspires to purchase, possess, sell, transfer or furnish the essential items used in the manufacture of methamphetamine.&

3) Strengthens the ID requirement for purchasing ephedrine and PSE products. Only a valid, non-suspended driver’s license, non-driver ID, valid military ID or valid passport will be acceptable forms of ID. Current law allows for simply a photo, government-issued ID.

4) Reduces the amount of ephedrine allowed to be purchased within a 30-day period from 9 grams to 7.5 grams. "is amount would be the equivalent of a 30-day supply of Claritin D.

Rep. Blaine Galliher explains bill to House Health Committee

CHAPTER 6 65

5) Requires persons living in states where a prescription is required to purchase ephedrine and PSE products to obtain a prescription in Alabama before being allowed to purchase these products. Persons who obtain a prescription illegally would be guilty of a Class C felony.

6) Prohibits persons convicted of drug-related crimes from being able to purchase ephedrine and PSE products for seven years if convicted of a crime of possession and 10 years if convicted of a crime of distribution.

7) Increases the penalty for drug paraphernalia to a Class C felony when the intent for manufacturing meth is evident. Currently, if the ephedrine, PSE or $nished drug is not present in a meth lab at the time of a meth lab bust, no crime has been committed. "is would allow law enforcement to pursue prosecution if all other drug paraphernalia used in the manufacture of meth is present.

8) Provides restitution to law enforcement and prosecutors for the cost of an investigation and/or prosecution of drug o!enses. Currently, the only way restitution can be awarded is when the restitution is negotiated as part of plea agreement. "is would allow a judge to award restitution whenever he deems it necessary.

9) Requires the subcommittee of the Drug Abuse Task Force to report to the legislature by the 10th legislative day of each session its $ndings on the state of illegal drugs: trends in use, distribution and manufacture of illegal or synthetic drugs, and the use and misuse of legal products used to manufacture illegal drugs.

HB 363 received a favorable report from the House Health Committee and now awaits consideration by the full House.


Business Coalition for Property Rights and Workplace Safety opposes bills seeking to erode property rights and destroy jobs

Once again, companion bills have been introduced in the legislature that would erode the constitutional property rights of individuals and businesses. SB 331 by Sen. Paul Sanford, R-Huntsville and HB 471, by Rep. Craig Ford, D-Gadsden, violate the rights of property owners by making it illegal for businesses and individual property owners to establish a policy that prohibits anyone from bringing a gun onto that person’s property.&Although the bills speci$cally target businesses and employers, they also authorize new lawsuits against anyone in Alabama who owns


property and denies a person with a gun access to carry the gun on that property.

Private companies in Alabama are already struggling with excessive rules and regulations that burden their operations and increase their costs. "e inescapable result of this legislation would be to increase employer costs — including insurance costs — and the loss of jobs. Particularly in the current economic environment, government should not intrude on private property rights in a manner that results in more Alabamians $nding themselves out of work.&

More egregiously, these bills are essentially a dream come true for trial lawyers. While Alabama businesses are already plagued with countless frivolous lawsuits, this proposal would add fuel to the $re.&HB 471 and SB 331 would authorize an individual injured on property where there existed a no-guns policy to sue the property owner for his injuries.&"e creation of another cause of action against which property owners would be required to defend themselves is simply bad public policy.&

Members of the coalition are:& & Alabama Railway Association Alabama Trucking Association Alabama Society of Certi$ed Public Accountants Alabama Cable Telecommunications Association Business Council of Alabama "e BCA Manufacturing Advocacy Council "e Alabama Retail Association

Bill would de#ne pharmacy services and retain jobs in Shoals areaHB 393, by Rep. Lynn Greer, R-Rogersville, further de$nes the term

“pharmacy services.” "e bill is intended to satisfy recent requirements imposed by the Alabama Board of Pharmacy on a Northwest Alabama call center and would allow it to retain 220 jobs.

"e bill as amended would also prevent additional regulation of Pharmacy Bene$t Managers (PBMs) that are used by employers of all sizes, as well as by state public employee and educator bene$t programs like the Retirement Systems of Alabama and the State Employee Insurance Board, to administer prescription drug bene$t programs and restrain rising costs. PBMs are currently regulated by the Alabama Board of Pharmacy as well as the Alabama Department of Insurance and the Federal Drug Administration.

CHAPTER 6 67

HB 393 will be at the top of the House of Representatives’ special order calendar on Wednesday. "e bill as amended would provide a “win-win” situation by helping to retain existing jobs in Muscle Shoals and by protecting the ability of employers and state government to continue to o!er a!ordable prescription drug bene$ts to their employees through the use of PBMs.

BCA supports e!orts that help contain health care costs for employers.

House passes “New Market Development” programBy a vote of 75–22, the Alabama House passed HB 257, by Rep.

Jamie Ison, R-Mobile, known as the New Market Development Act. "e act would provide tax credits for investments in quali$ed community businesses in low-income communities.

If enacted, Alabama will join states such as Florida, Mississippi and Illinois that already have state New Market Development Programs modeled after the New Market Tax Credit Program established by Congress in 2000. "e federal program promotes investments in businesses and real estate projects located in low-income census tracts. When the state incentives are coupled with the federal incentives, community leaders have a potent tool to revitalize low-income census tracts in downtown core areas and central business districts.

"e House-passed version caps the credit at $10 million per transaction over a seven-year period, in which the credit totals 0 percent the $rst year and 8.33 percent for the following six years. "e bill further sets an aggregate cap of $20 million annually, and limits the taxpayer’s credit to not more than the taxpayer’s state tax liability.

BCA supports this bill, which now advances to the Senate.

Bill exempting aircraft parts, components approved by committee

"e Senate Finance & Taxation-Education Committee favorably reported HB 39, by Rep. Paul Lee, R-Dothan, that provides an exemption from sales and use taxes on parts, components and systems that are incorporated into the refurbishment of certi$ed military, governmental or commercial transport aircraft or rotary wing aircraft.

Committee testimony revealed that Alabama companies that refurbish aircraft are at a competitive disadvantage compared to their competitors in


other states, where the parts used in such conversions are tax-exempt. "e committee adopted an amendment o!ered by the chair, Sen. Trip Pittman, R-Daphne, that would end the exemption on May 30, 2020, unless the exemption is extended by a joint resolution of the legislature.

BCA supports this legislation, which now moves to the full Senate.

Committee increases UC fraud bill’s disquali#cation periodUnemployment compensation fraud law changes are one step closer

to becoming law. Under current law, a person who fraudulently represents that he is unemployed for the purpose of receiving unemployment compensation bene$ts cannot be disquali$ed from receiving bene$ts.

In its original form, HB 72 by Rep. Paul DeMarco, R-Homewood, would institute a 52-week disquali$cation of bene$ts if a person is found to be fraudulently claiming he is unemployed so that he can receive unemployment compensation bene$ts. "e disquali$cation would begin from the date the fraud is determined or until the amount that was awarded fraudulently is repaid in cash. Any federal or state funds due to the person could be intercepted by the Department of Industrial Relations (DIR) to repay the debt.

"e Senate Banking and Insurance Committee amended the bill to increase the bene$t disquali$cation period to 104 weeks and until the amount fraudulently awarded is repaid in cash.

"e companion bill, SB 137, by Sen. Paul Bussman, R-Cullman, received a public hearing a few weeks ago by the Senate Banking & Insurance Committee, but the vote was delayed to give time for HB 72 to travel to the Senate.


In Legal Reform NewsSB 342, by Sen. Phil Williams, R-Rainbow City, seeks to codify case

law relating to the duty of care an owner of real property owes to certain trespassers on his property. Under existing law, a land possessor owes no duty of care to a trespasser, except in very narrow and well-de$ned circumstances. "e legislation seeks to preempt courts from adopting a more liberal provision that would expand trespassers’ rights to sue land possessors by imposing a broad new duty on land possessors to exercise reasonable

CHAPTER 6 69

care for all entrants on their land, including unwanted trespassers. "is bill received a favorable report of 7-0 in the Senate Agriculture, Conservation and Forestry Committee.

"e Senate passed SB 139, by Sen. Clay Sco$eld, R-Guntersville, on "ursday. "e bill would limit the civil liability of a contractor for work performed on a highway, road, bridge or street, including repairs, construction or maintenance on behalf of the Alabama Department of Transportation (ALDOT), the county or local government, unless it is shown by a preponderance of evidence that physical injury, property damage or death is caused by the contractor’s performance or inability of the contractor to recognize a dangerous condition.

Washington BriefingSenate Passes RESTORE Act

"e Senate on "ursday voted 76-22 to pass the Resources and Ecosystems Sustainability, Tourism Opportunities and Revived Economy (RESTORE) the Gulf Coast Act of 2012, originally sponsored by nine of the 10 Gulf state senators, including Sens. Richard Shelby (R-AL).

Passed as an amendment to the highway reauthorization bill, the RESTORE Act would dedicate 80 percent of the Clean Water Act penalties issued in the wake of the BP Deepwater Horizon oil spill to Gulf Coast states to aid in their economic and environmental restoration.

If enacted, 65 percent of the funds will be spent by state and local task forces, 30 percent of the funds will be spent by a federal-state task force and 5 percent will be for Gulf Coast $sheries and ecosystem research and monitoring.

Without congressional action, between $5.4 billion and $21.1 billion in expected $nes would go into a fund to pay for the cleanup of future oil spills as well as to the federal treasury.

Last month, the House voted to attach a RESTORE amendment to the House’s transportation reauthorization bill.

Senate Transportation Bill Moves ForwardAfter much debate and negotiations, Senate leaders reached an

agreement late Wednesday to move its transportation bill, Moving Ahead Progress for the 21st Century (S. 1813). Majority Leader Harry Reid

(D-NV) and Minority Leader Mitch McConnell (R-KY) agreed to the consideration of a package of 30 non-germane amendments, including the RESTORE Act (see previous article). All amendments require a $libuster-proof 60 votes for passage.

Two amendments dealing with the controversial Keystone XL oil pipeline were rejected. "e $rst, o!ered by Sen. John Hoeven (R-ND), would have given congressional approval to the pipeline, thus removing it from the executive branch. "e amendment failed 56-42. "e second, sponsored by Sen. Ron Wyden (D-OR), would have required the pipeline permit application be approved or denied within 90 days of the completion of all analyses required by law. It also would have required all construction materials be made in the United States and would have banned the export of Keystone oil. It failed by a vote of 33-65.

Another amendment, o!ered by Sen. Susan Collins (R-ME), would have provided the Environmental Protection Agency additional time to redraft achievable Boiler MACT rules as well as extend the compliance time frame from three years to $ve years. It failed by a vote of 52-46.

An amendment, sponsored by Sen. David Vitter (R-LA), to provide more domestic energy production by allowing the sale of leases throughout the Outer Continental Shelf (OCS), failed by vote of 44-54.

Final passage of the Senate transportation bill could be concluded next week.

With the deadline of March 31 looming, the day the government runs out of authority to release federal transportation money, the House is working through di!erent versions of its highway bill.

House Passes JOBS Act"e House on "ursday voted 390-23 to pass the Jumpstart Our

Business Startups ( JOBS) Act, H.R. 3606. "e JOBS Act is a package of bills designed to remove the barriers preventing small businesses and start ups from accessing capital they need to grow. "e JOBS Act includes:

A measure that would give small businesses a reprieve from costly SEC regulations by phasing in certain regulations over a 5-year period, or until the company reaches $1 billion in revenue. A measure, H.R. 2940, that would repeal the solicitation ban on companies trying to raise capital.


CHAPTER 6 71

A measure, H.R. 2930, that would remove the ban on “crowdfunding,” enabling entrepreneurs to pool investments from smaller investors.A measure, H.R. 2167, that would raise the shareholder threshold regulations from 500 to 1,000 shareholders. A measure, H.R. 4088, that would revise an outdated requirement that banks with 500 or more shareholders register with the Securities and Exchange Commission by raising the threshold to 2,000.

Several of these measures have already passed the House as stand-alone bills with more than 400 votes each; however, none has been considered in the Senate. Senate Majority Leader Harry Reid said "ursday he would introduce similar legislation next week and “move as quickly as we can” to pass it.

"e House package received the endorsement of the White House this week with the White House O#ce of Management and Budget issuing a statement saying that President Barack Obama is “encouraged to see that there is common ground” between the bill and policies he mentioned in his State of the Union speech earlier this year.

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C H A L L E N G I N G T H E S T A T U S Q U O : E D U C A T I O N O P T I O N S A C T O F 2012 A N N O U N C E D

“Leadership is doing what is right when no one is watching.”GE O R G E VA N VA L K E N B U R G

School $exibility and charter schools top priorities; BCA fully supports legislation

Gov. Robert Bentley and legislative leaders on Wednesday announced their education initiative for this session, the Edu-cation Options Act of 2012. Standing outside the old Clover-

dale School in Montgomery, Gov. Bentley was joined by Speaker of the House Mike Hubbard; Senate President Pro Tem Del Marsh; Sen. Dick Brewbaker, R-Pike Road; Rep. Phil Williams, R-Huntsville; Montgom-ery Mayor Todd Strange; and Rev. David Craig, pastor of Mount Pilgrim Missionary Baptist Church in Fair$eld.

HB 541 is the $rst step in an e!ort to allow new opportunities for parents to educate their children when they attend consistently failing schools. "e law will allow for the creation of a limited number of charter schools around the state. Charter schools are public schools that are allowed freedom to teach in innovative ways with strict accountability for higher standards and achievement. While charter schools are not the single solution to all of Alabama’s education problems, it is another tool in the education reform arsenal that will help reduce the dropout rate and prepare students to enter the workforce. Local school boards will serve as the authorizing agent for charter schools, and should they deny an application, the applicant may appeal to the Charter School Application Review Council, which will be also created under this legislation.


"e legislation also allows for local school systems to seek %exibility from burdensome state regulations and bureaucratic red tape. In exchange for %exibility, schools must pledge to increase their accountability for student achievement and school system performance. "e State Superintendent of Education would approve waivers for school systems seeking %exibility, and they would be conditional for $ve years to ensure accountability.

“Education options and %exibility equal more success for our children. "e Business Council of Alabama is proud to support this historic education package that $nally will provide parents more options to improving the education of their children while at the same time allow teachers more %exibility for classroom instruction,” BCA President and CEO William J. Canary said. “Businesses are the number one consumer of the product education, and when Alabama adopts this legislation, the dropout rate will decline, more students will be prepared to enter the workforce, and our economy will grow.”

A third aspect of the legislation would allow local communities to convert existing schools into charter schools. "e process begins with the local superintendent submitting a proposal to the local school board for approval but only after a majority of parents at the existing school have approved. A conversion of an existing school to a charter school is not appealable to the Charter School Application Review Council if the local school board denies the proposal. Only nonpro$t and non-religious entities may apply for a charter, regardless of whether applying as a new charter school or through conversion of an existing school.&

“In America, we don’t tell you where to go to church or what to do for a living, but we do tell you where you have to send your kids to school,” said Sen. Brewbaker, the Senate sponsor of the bill. “"is bill is a great step forward because it provides options to parents in failing school districts and maintains local control of the school system.”

Rep. Williams, sponsor of the House bill, also spoke at the press conference on the importance of this legislation. “I’m an advocate for innovative education reforms because I believe no parent should be forced to send their child to a failing school with no option to seek a better education,” Rep. Williams said. “It doesn’t have to be that way. We can have excellent teachers in every classroom preparing the next generation of Alabamians to be our greatest yet. "is bill is a big step in that direction.”


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Senate Committee OKs guns to work bill despite opposition from business

On a 3-1 vote, SB 331, by Sen. Paul Sanford, R-Huntsville — a bill that would prohibit a public or private employer, property owner or business from establishing a policy against transporting or possessing a $rearm or ammunition if the person is in compliance with other laws — was given a favorable report by the Senate Business & Labor committee. BCA strongly opposes this bill and its House companion, HB 471, by Rep. Craig Ford, D-Gadsden, as these bills would trample on the constitutional rights of individual property owners and businesses.&

Sen. Cam Ward, R-Alabaster, made the motion to give the bill a favorable report. Sen. Shadrack McGill, R-Scottsboro, seconded the motion. Voting in favor of SB 331 were Sen. Ward, Sen. McGill and Sen. Rusty Glover, R-Semmes. "e only senator voting against SB 331 was Sen. Priscilla Dunn, D-Bessemer.& Sen. Slade Blackwell, R-Mountain Brook, left the meeting before the vote.&

"e bill makes it illegal for an employer or private property owner to establish a policy prohibiting anyone from bringing a gun onto that person’s property. Anyone denied the opportunity to transport or store a $rearm or ammunition or who is $red for violating a company policy can sue a business, property owner or public or private employer for violating the act.

Sen. Sanford told committee members that the bill doesn’t infringe on an employer’s rights to make his own policies banning guns on his property because not only does it require employees to leave their weapons in their vehicle out of sight, but, he said, employers should trust their employees to be “law-abiding citizens” and not violate the law by bringing their guns inside the workplace. "erefore, having a no-$rearms policy in place would no longer be necessary.

Employers would be immune from civil liability for any misuse of a $rearm if a person violates the law by removing the weapon from his vehicle unless the employer “intentionally solicits or procures” the employee to do so. When asked to give an example Sanford said, “If an employer says to an employee, ‘Why don’t you just go get your gun, bring it in here and start shooting people.’” &

Sen. Dunn expressed her opposition to the committee members and the bill’s sponsor by saying it was bad policy to simply trust that employees


would be law-abiding citizens who would leave their guns in their cars. She contended that it’s much easier for a person to use a weapon when it’s within close proximity. She compared the situation to two friends riding in a car where a weapon is present: An argument ensues over a sporting event, and one person shoots the other person. Had the gun owner not been allowed to transport the weapon, the injury or death could have been prevented.

It is interesting to note that visitors to the Alabama State House must be searched before entering the building for weapons, and if a weapon is found, it is removed from that person. Elected state leaders, sta! of elected leaders and certain other individuals may enter the Alabama State House without being subject to security and searches.

A letter authored by the Business Coalition for Property Rights and Workplace Safety was circulated on Wednesday urging members of the Senate and Labor Committee to vote no on SB 331. "e Coalition and the Business Council of Alabama will continue to oppose this legislation.

Members of the coalition are:& &ALFA Companies&Alabama Railway AssociationAlabama Trucking AssociationAlabama Society of Certi$ed Public AccountantsAlabama Cable Telecommunications AssociationBusiness Council of Alabama"e BCA Manufacturing Advocacy Council"e Alabama Retail Association

Senate Panel conducts second round of hearings on “Job Creation & Retention Act”State Department of Education speaks in opposition

O#cially, the Senate Finance & Taxation Committee held a public hearing but did not vote on HB 159, the proposed constitutional amendment; however,& remarks by both proponents and opponents also pertained to HB 160, the enabling bill. Together, the two bills comprise the Alabama Job Creation & Retention Act. Both bills are sponsored by Rep. Barry Mask, R-Wetumpka, and both will be handled in the Senate by Sen. Phil Williams, R-Rainbow City. If enacted and rati$ed by the voters of Alabama, the legislation would allow a new or existing employer

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to retain a percentage of its employees’ state income tax withholdings to o!set the costs of acquiring or expanding its facility, but not more than the cost of the facility.

Sen. Williams again told the committee that local economic developers need the %exibility provided by the bill to match the creative packages of incentives that other states are using to land industrial projects for which Alabama can no longer compete because the state can no longer o!er direct incentives. He assured the committee that the legislation would be used to create jobs in every senate district, not just to save jobs in his own district.

Alabama Development O#ce Director Greg Can$eld mentioned that his team has been working to address many of the concerns raised by the AEA. He stated that he would circulate a substitute version of HB 160 and expressed a willingness by the Bentley Administration to: 1) void the constitutional amendment by a simple majority vote of the legislature at any time it is determined that the legislation is no longer needed; 2) cap the amount of incentives available for retention projects; 3) allow the authority for retention projects to expire, unless reauthorized by the legislature.

Can$eld also spoke of being amenable to including local governing bodies in the approval process for retention projects and adding legislative representation to the State Industrial Development Authority to evaluate retention projects. He further asked that the committee weigh job creation, capital investment and revenue growth against the loss of potential revenue.

An AEA spokesperson charged that the legislation could divert an “unlimited” amount of revenue from public education at a time when school funding is being statutorily held in check to avoid another mid-year budget cut.

Dr. Craig Pouncey of the State Department of Education again spoke in opposition to the legislation by questioning whether any group can

Sen. Phil Williams explains job incentives bill to Sen-ate F&TE Committee a second time


properly evaluate an application for a retention project and correctly conclude that it is cost e!ective. He also advocated that the state’s economic developers should put more emphasis on the state’s strengths, such as low property taxes and the absence of combined reporting, rather than seeking legislative approval for more incentives.

BCA supports the Alabama Job Creation and Retention Act, which is expected to be acted upon when the committee meets again next week.

Committee holds hearing on #lm industry incentivesProponents and opponents of a bill that would expand the incentives

o!ered for $lm productions to shoot projects in Alabama testi$ed before the Senate Finance & Taxation Committee on Wednesday.&HB 243, Rep. Terri Collins, R-Decatur, has already passed the Alabama House by a vote of 101-0, but the AEA now is working to defeat the $lm incentive bill in the Senate.

"e AEA spokesperson distributed a January 2010 report by the Tax Foundation that was very critical of $lm incentives o!ered by the State of Louisiana and concluded that such incentives are costly and fail to deliver all that is promised.

Rep. Collins pointed out that beyond the overall positive impact that the incentives have on economic activity and revenue growth, there are other

tangible bene$ts of a community hosting $lm productions. She spoke to the positive image that the production brings to a community, resulting in a spike in tourism. Often, production companies will establish a permanent presence in the area in anticipation of future productions.

BCA supports this legisla-tion, which will be voted on by the committee at the next meeting.

Rep. Terri Collins speaks to $lm incentive bill

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House passes pseudophedrine billBy a vote of 100-1, the House of Representatives passed HB 363,

by Rep. Blaine Galliher, R-Gadsden, which seeks to crack down on the manufacture of methamphetamine in Alabama while still allowing persons to purchase over-the-counter products containing ephedrine and pseudoephedrine (PSE), such as common cold and allergy medications.

As reported last week, the bill was a collaborative e!ort by legislators, business groups, law enforcement and the District Attorneys Association to make changes to the existing law that would not penalize consumers who purchased these products for lawful reasons and also would provide tracking mechanisms bene$cial to law enforcement to help crack down on those who purchase products containing PSE to manufacture meth.

HB 363 now heads to the Senate. "e companion bill, SB 344, by Sen. Bill Holtzclaw, R-Madison, passed the Senate Health Committee with only one dissenting vote. SB 344 could be debated by the full Senate as early as next week.

BCA supports this bill.Bill to de#ne pharmacy services and retain jobs in Shoals area passes House

HB 393, by Rep. Lynn Greer, R-Rogersville, which further de$nes the term “pharmacy services,” unanimously passed the House this week. "e bill is intended to satisfy recent requirements imposed by the Alabama Board of Pharmacy on a Northwest Alabama call center and would allow it to retain 220 jobs.

If enacted, the bill would also prevent additional regulation of Pharmacy Bene$t Managers (PBMs) that are used by employers of all sizes, as well as by state public employee and educator bene$t programs such as the Retirement Systems of Alabama and the State Employee Insurance Board to administer prescription drug bene$t programs and restrain rising costs. PBMs save the state more than $300 million annually on prescription drugs for teachers and state employees. PBMs are currently regulated by the Alabama Board of Pharmacy, as well as the Alabama Department of Insurance and the Federal Drug Administration.

HB 393 would provide a “win-win” situation by helping to retain existing jobs in Muscle Shoals and protecting the ability of employers and


state government to continue to o!er a!ordable prescription drug bene$ts to their employees through the use of PBMs.

"e bill now heads to the Senate Health Committee. Its companion bill, SB 350, by Sen. Tammy Irons, D-Florence, received a favorable report from the Senate Health Committee and awaits consideration by the full Senate.


BCA members recognized for trade excellenceFour BCA member companies were recognized Wednesday for

excellence in trade activities. Gov. Robert Bentley presented the seventh annual Governor’s Trade Excellence Awards during a ceremony at the Capitol.

BCA members honored were MCM Custom Vehicles of Trussville, AZ Technology of Huntsville, Henderson Sewing Machine Co., Inc., of Andalusia and Kappler Inc. of Guntersville.

"e Governor’s Trade Excellence Awards program was established in 2005 to recognize Alabama manufacturers and service companies for excelling in global competition. "e program seeks to identify Alabama’s successful exporters, promote exporters as role models to the Alabama business community to encourage greater involvement in the global marketplace, and increase awareness of the impact of exporting on Alabama’s economy.

"e awards program is coordinated by ADO and the Export Alabama Alliance. "e program includes large, medium and small businesses as well as new-to-export companies.

“"e companies honored today are an important part of the state’s engine for growth, retention and job creation,” said ADO Director Greg Can$eld. “"at is why exports are an important part of Accelerate Alabama, the state’s economic development strategic plan.”&

Alabama exports reached an all-time high of $17.9 billion in goods shipped globally last year, a 15.4 percent increase over last year.

Governor declares 10.6 percent proration in General Fund budgetOn Friday, Gov. Robert Bentley declared 10.6 percent proration on the

state’s General Fund Budget for the remainder of $scal year 2012, which ends September 30.

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According to a press release from the governor’s o#ce, the General Fund has been impacted by several major factors that make proration necessary, including tens of millions of dollars in state funding required for tornado recovery. Also, stock market conditions during the fourth quarter of $scal 2011 were among the worst in the last 60 years, directly a!ecting revenues to the General Fund, the press release said.

“We have pursued every possible option in order to avoid proration; however, this step must be taken,” said State Finance Director Dr. Marquita Davis. “While proration is di#cult, it is necessary to balance the budget, which is constitutionally required in Alabama.”

Upon the declaration of proration, state agencies that are $nanced by the General Fund must reduce expenses through the current $scal year.

"e proration declaration does not a!ect public school funding.

BCA and ProgressPAC-endorsed candidates successful in 2012 Primary Election

All candidates endorsed by the BCA and ProgressPac were successful in Tuesday’s primary elections.Federal Elections - BCA-EndorsedU.S. House*District 1&& Jo Bonner - won 56 percent*District 5&& Mo Brooks - won 71 percent*District 6&& Spencer Bachus - won 59 percent*Contested raceState Elections - ProgressPAC-EndorsedSupreme Court*Tommy Bryan, Place 1 - won 65 percentLyn Stuart, Place 2Glenn Murdock, Place 3Jim Main, Place 4Court of Civil AppealsCraig Pittman, Place 1Terri W. "omas, Place 2Terry Moore, Place 3


Court of Criminal AppealsLiles Burke, Place 2Michael Joiner, Place 3Alabama Board of Education*Tracy Roberts, District 1 - won 63 percent*Je! Newman, District 7 - won 51 percent*Contested race

Washington BriefingBCA-endorsed candidates successful in Tuesday’s primary election

All three candidates endorsed by the Board of Directors of the Business Council of Alabama were successful in their primary elections this Tuesday. Congratulations to U.S. Reps. Spencer Bachus (AL-06), Jo Bonner (AL-01) and Mo Brooks (AL-05), the BCA-endorsed candidates who faced primary opponents.

Senate Looks to Reauthorize Ex-Im BankFollowing passage of the transportation bill, the Senate on "ursday

began consideration of the House-passed job-creation package, H.R. 3606.While H.R. 3606 sailed through the House last week on a 390-23

vote, Sen. Majority Leader Harry Reid (R-NV) announced his intention to attach a four-year renewal of the U.S. Export-Import (Ex-Im) Bank’s mandate.

Failure to reauthorize Ex-Im’s operations at an internationally competitive level would seriously disadvantage U.S. companies, small and large, in foreign markets, threatening thousands of American jobs that depend on its crucial export $nancing.

Ex-Im has a proven record of success, supporting thousands of large and small U.S. exporters across the nation. Last year, the Bank supported more than $40 billion in U.S. exports that helped create or sustain 290,000 jobs at more than 3,600 companies. "e Bank has provided signi$cant support to many Alabama companies. Over the last $ve years, 53 Alabama companies used Ex-Im to help $nance the export of more than $500 million in products and services around the world.

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"e Bank is particularly important in supporting the exports of smaller $rms. More than 85 percent of Ex-Im’s transactions last year directly supported small businesses, and in Alabama, the Ex-Im provided assistance to 19 small or minority-owned businesses. Alabama products exported include plastic and paint products, coal, wood products, food products, transportation equipment, manufacturing equipment and many others. Many of these small businesses have found alternative $nancing drying up because of the global $nancial situation. Smaller exporters account for fully one-third of all American exports, and it is vital they receive the support they need.

"e Export-Import Bank is self-$nanced, paying for itself out of the fees it collects. In fact, the nonpartisan Congressional Budget O#ce concluded that a reauthorization of the Bank would reduce the de$cit by $900 million over $ve years. "e U.S. Treasury has made more than $3 billion from Ex-Im’s activities since 2005.

U.S. Sen. Richard Shelby (R-AL), ranking Republican on the Senate Banking Committee, along with U.S. Sens. Maria Cantwell (D-WA), Banking Committee Chairman Tim Johnson (D-SD) and Lindsey Graham (R-SC) introduced an amendment "ursday night that would increase the bank’s lending limit to $140 billion from $100 billion and extend the life of the bank through 2015; however, House leaders have indicated they will take a di!erent approach. House Majority Leader Eric Cantor’s (R-VA) plan would cap the bank’s $nancing at $113 billion and reauthorize it until June 1, 2013.

Reauthorization of the U.S. Export-Import Bank prior to its charter expiring on May 31, 2012, is a BCA federal legislative priority.

Senate Passes Transportation BillReauthorization is a BCA Legislative Priority

After weeks of debate and negotiations, the Senate on Wednesday passed its transportation and infrastructure bill, Moving Ahead Progress for the 21st Century (S. 1813), by a vote of 74-22.

"e transportation and infrastructure reauthorization bill establishes the funding mechanism through which the federal government pays its share of the cost of transportation repair and construction projects carried out by state and local governments.


"e $109 billion Senate bill is a two-year blueprint approved less than three weeks before the March 31 expiration of the current transportation funding as well as the expiration of the authority to collect the federal gas tax that supports the funding. "e Senate bill consolidates 196 federal transportation programs to about a dozen and gives states more %exibility in determining their transportation priorities.

"e Senate-passed transportation bill includes the RESTORE Act, which would dedicate 80 percent of the Clean Water Act penalties issued in the wake of the BP Deepwater Horizon oil spill to be split among the $ve Gulf Coast states, including Alabama. "e RESTORE Act was added last week to the transportation bill by a rare bipartisan vote of 76-22.

"e Business Council of Alabama has been part of the U.S. Chamber-led coalition, the Americans for Transportation Mobility Coalition, supporting passage of an adequately funded multi-year surface transportation bill. "is nationwide e!ort, Make Transportation Job #1, included a letter to every member of Congress signed by the BCA, the U.S. Chamber of Commerce and more than 1,000 groups and associations from across the country.

With the House in recess this week, it remains unclear what path House leaders will take. Some have indicated the House will consider health care and budget legislation $rst, pushing the transportation bill to next month, after the March 31 deadline. Next week will mark the two-year anniversary of the health care reform legislation, and oral arguments are scheduled in the Supreme Court the following week. House Republican leaders are expected to seize this timing and bring legislation repealing the Independent Payment Advisory Board.

"ere are also technical barriers to the House considering the Senate bill next week. "e Senate bill includes revenue provisions, which must originate in the House. "e House, therefore, would have to “clone” the Senate bill. "e House’s three-day rule would delay bringing it to the %oor that much longer, assuming House leaders move forward with the Senate bill.

To no avail, House Speaker John Boehner spent last week trying to persuade House Republicans to support a $ve-year House bill. Another alternative is passage of a short-term extension that keeps funding at current levels.

Passage of a multi-year federal transportation reauthorization is a BCA federal legislative priority.

85


O P T I O N S A N D F L E X I B I L I T Y FO R PA R E N T S A N D TE A C H E R S

“Yesterday’s home runs don’t win today’s games.”BA B E RU T H

The House Ways & Means Education Committee on Wednesday held the $rst public hearing on the Education Options Act of 2012. Before a standing-room-only crowd, committee members

heard from Rep. Phil Williams, R-Huntsville, the House sponsor of HB 541. Williams told the committee that in charter schools, local school o#-cials and teachers would be given more %exibility from bureaucratic red tape to address problems and teach in ways that would be more bene$cial. Charter schools are just one option for parents looking to do whatever it takes to get their children the education they deserve in the lowest-performing schools in the state, he said.

“Look at this as a cafeteria plan,” Williams said. “You have a wide variety of options to choose from that will help local school systems deal with their individual problems. A problem facing Limestone County may not be a problem facing Baldwin County.”

Following Williams’ remarks, committee Chairman Jay Love, R-Montgomery, opened the public hearing to proponents and opponents. Opponents consisted of superintendents, school board members and the Alabama Education Association, while proponents who testi$ed represented the BCA, the Birmingham Business Alliance, parents and teachers with charter school experience. Testifying on behalf of BCA, Senior Vice President for Intergovernmental A!airs, Advocacy and Communications and Legal Advisor Anita L. Archie discussed the importance of education reform to the business community by relaying that “for very sel$sh reasons, we want everyone that comes through the educational system to get a


quality education, to get quality jobs in this state.”

After speaking on the busi-ness community’s need for an educated workforce, Archie spoke passionately as the parent of two children in the Mont-gomery public school system. “My husband and I had op-tions on where we would send our children to school, whether it is public, private or a mag-net school,” Archie said. “But hard-working families in low-income communities with fail-ing schools generally do not have that personal choice. "ey

are trapped in under-performing schools, praying their children will get whatever education they can.”

Shilheim Lee, a teacher at B.C. Rain High School in Mobile, urged members to approve the package and testi$ed that while he served as

a teacher in Houston, New Orleans and even as far away as Indonesia, he witnessed the most growth in all of his students while teaching at the Houston charter school.

"e committee also heard the testimony of Ashley Welch, a young mother who traveled to the hearing from Tuscaloosa. "e parent of a six-year-old and the legal guardian of her younger sister, Welch told the committee she was, “looking for an education system that works and provides options to me as a parent.” She went on to tell a

Rep. Phil Williams, R-Huntsville: Charter schools are a needed option

BCA Senior VP Anita L. Archie says business needs an educated workforce

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television reporter after the hearing that the school system she was raised in “failed me and everyone I know.”

Opposition did not come from anyone in the room on the %exibility portion of the legislation. Most who spoke in opposition to the bill said they were supportive of more %exibility for superintendents, school boards and teachers, but they just did not want to have a charter school law passed in Alabama. Huntsville City Schools Superintendent Dr. Casey Wardynski, speaking on behalf of the School Superintendents Association, expressed his concern at how long it would take boards to properly review complex charter school applications in the time frame laid out in the legislation. He also said his association opposed the legislation because they wanted all schools to be successful, not just a handful of charter schools around the state.

“"is bill will maximize risk and increase uncertainty in planning for school districts,” said Wardynski. “I see no certain reward to compensate for that.”

Some of the most telling opposition to the legislation came from Dr. Henry Mabry of the Alabama Education Association who told the panel that Alabama gets a “pretty darn good value” and a “pretty good deal” when it comes to education in Alabama. In an email to AEA members after the meeting, Mabry said opening up Alabama to a charter school law would allow such schools to avoid many laws already on the books and would create a dual system of education.

While the committee did not take a vote after the public hearing, Love asked members of the committee who had questions or concerns to work with Rep. Williams this week or over the legislative spring break. "e committee will likely vote on the measure the $rst week of April.

Brewbaker: Local superintendents would have more $exibility if Education Options Act is adopted

Sen. Dick Brewbaker, R-Pike Road, who is carrying the BCA-endorsed Education Options Act of 2012 in the upper chamber, used Monday’s meeting of the Governmental A!airs Committee to outline his bill, which would bring charter schools to Alabama and provide more %exibility from State Board of Education regulations to public educators.

Brewbaker, who served on Gov. Fob James’ sta! as his education policy advisor from 1995-1997, said providing local school superintendents more


ability to operate autonomously from over-burdensome regulations that are set in Montgomery is a primary goal of his measure.

“In Alabama, we have what we like to call local control in public schools, but we really don’t,” Brewbaker said. “Between the state legislature, the State Department of Education and the administrative code, we have bound local school boards and superintendents very tightly to the system we want them to use.”

He noted that most state dollars %owing into the Education Trust Fund are constitutionally or statutorily earmarked for speci$c purposes, and added that most local dollars are similarly assigned. As a result, Montgomery’s earmarking and its top-to-bottom pattern of regulation have largely removed decision-making powers from local school o#cials.

Under the provisions of his legislation, Brewbaker said any local superintendent, with local board approval, could apply for a waiver from almost any state-mandated public education regulation if the %exibility could be tied to a speci$c and expected outcome. Scheduling school day start times and adjournments and allowing around-the-year schools with regular breaks between semesters are two examples he o!ered of waiver possibilities. "e only administrative areas prohibited from being waived are retirement and health insurance bene$ts for teachers and support sta! and rules governing fair dismissal.

While the state superintendent is not mandated to grant waiver requests, they will likely be awarded when cases for stricter e#ciency or improved student performance can be made, he said. Brewbaker added that granted waivers would be reviewed annually and revoked if predicted results are not achieved.

“What we are trying to do is get some real local innovation not only in failing school systems but, more importantly, in successful systems as well,” Brewbaker said. “School superintendents often accuse those of us in Montgomery as acting like Moses handing down the Commandments from Mt. Sinai, but with this bill, they will $nally get the %exibility and local control they have been requesting for so many years.”

As a trade-o! for the measure of autonomy, Brewbaker said superintendents are being asked to open the door to charter schools in areas of the state in which public schools routinely underperform. A persistently underperforming school, he said, is de$ned as one that ranks in the bottom 5 percent in the state in reading and math pro$ciency for

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three years in a row, and Alabama currently has 67 such schools that fall below those metrics.

"e Education Options Act of 2012 creates a new state appeals panel that could allow charter schools to open in areas with poorly performing schools. Local school boards, however, would decide whether to allow charters in systems that consistently meet minimum expectations.

Charter schools are public schools operated with taxpayer dollars and open to any student within the district who wishes to attend. "ey do not charge tuition and, in states where charter schools operate, have proven so popular that waiting lists for openings often exist.

Accountability and results are the top priorities in such schools, and the charters under which they operate speci$cally spell out the goals and student achievements they are expected to produce. Failing to meet these benchmarks, or unsuccessfully maintaining rigorous management and $scal accountability, results in the school’s closure.

In return for operating under these heightened standards, educators in charter schools are allowed leeway in the education processes they employ so long as they produce expected results. Most schools operate autonomous of the school board and, instead, use parents to constitute a speci$c board of trustees. Such freedom encourages innovation and experimentation in addition to the tried and true methods of teaching.

Brewbaker said charter schools are targeted primarily toward underserved student populations, not high-achieving, college-bound students. English as second language students and those with learning disabilities also seem to thrive better in a charter school environment rather than a by-the-book, run-of-the-mill public school setting, he added.

“Charter schools are aimed at children who will never see the inside of a magnet school,” Brewbaker said. “"e di!erence between the charter schools that serve these underserved students and the regular public schools serving them now is that if the charter schools don’t demonstrate real, measurable gains, they will be closed. "e regular schools serving them now have been failing, in most cases, for more than a decade and have never su!ered any sanctions for low performance.”

He noted that associations representing both local school boards and school superintendents currently oppose the charter school portion of the Education Options Act but covet the %exibility options it also carries. Brewbaker said he hopes the bill’s evolution throughout the legislative


process, along with the strong support of the business community, will convince the associations to eventually jump on board with the legislation.

“I’m hoping we can get them on board by educating them about what the bill does do, but, more importantly, also educating about the things it does not do, but they think it does,” Brewbaker said.

"e fact that Alabama is among the last states in the nation to approve charter school legislation may prove to be a bonus, Brewbaker concluded, because it gives our state a chance to look at what has and has not worked elsewhere.

Senate approves aircraft incentives to promote job growth in aerospace industry

By a vote of 28–0, the Alabama Senate passed HB 39, by Rep. Paul Lee, R-Dothan, which provides an exemption from sales and use taxes on parts, components and systems incorporated into a refurbishment of certi$ed military, governmental or commercial transport aircraft or rotary wing aircraft.

"e incentive legislation is designed to assist in-state aerospace companies that refurbish aircraft. "ese companies are currently at a competitive disadvantage versus their competitors in other states, where the parts used in such conversions are exempt from taxes. "e Senate added an amendment to the bill that would terminate the incentive on May 30, 2020, unless the exemption is extended by a joint resolution of the legislature, causing the bill to be returned to the House.


House panel favorably OKs tax reform bill for independent tax appeals commission

With very little discussion, the House Judiciary Committee voted to favorably report HB 105, by committee Chairman Rep. Paul DeMarco, R-Homewood, a testament to e!orts by Rep. DeMarco to clearly explain the lengthy bill and answer members’ questions.

"e bill has been introduced in several previous legislative sessions. "e concept of an independent tax appeals tribunal is the model used in 22 states, while other sections of the bill that pertain to the Taxpayers’ Bill of Rights update the procedures and provisions of federal law that the

CHAPTER 8 91

state will use to equitably deal with taxpayers. Under the auspices of the Business Associations Tax Coalition (BATC), the BCA is among some 27 business and trade associations that have endorsed this bill. HB 105 now moves on to be considered by the full House.

Senate Committee approves #lm production tax incentives"e Senate Finance & Taxation-Education Committee approved

a substitute version of HB 243, by Rep. Terri Collins, R-Decatur, that further expands tax incentives available for $lm productions in Alabama.

As in previous versions, the cap on the size of speci$c projects would double from $10 million to $20 million, but the substitute version would not increase the aggregate cap for such incentives by as much as originally passed by the House. "e committee substitute to HB 243 raises the aggregate annual cap for $lm incentives from $10 million to $15 million, whereas the House-passed version phases-in increases in the aggregate cap from $10 million to $25 million by 2015.

"e BCA supports HB 243, which now moves to the Senate calendar and will be debated by the full Senate after the legislature returns from its break.Pharmacy bill that would save jobs close to becoming law

"e Senate Health Committee has approved HB 393, by Rep. Lynn Greer, R- Rogersville, which further de$nes the term “pharmacy services.” "e bill is intended to satisfy recent requirements imposed by the Alabama Board of Pharmacy on a northwest Alabama call center, allowing it to retain 220 jobs.

"e bill, as amended, would prevent additional regulation of Pharmacy Bene$t Managers (PBMs) that are used by employers of all sizes, as well as by state public employee and educator bene$t programs, such as the Retirement Systems of Alabama and the State Employee Insurance Board, to administer prescription drug bene$t programs and restrain rising costs. PBMs are currently regulated by the Alabama Board of Pharmacy as well as the Alabama Department of Insurance and the Federal Drug Administration.

"e bill will be considered Tuesday, April 3, by the full Senate. "e bill as amended would provide a “win-win” situation by helping to retain existing jobs in Muscle Shoals and protecting the ability of employers and


state government to continue to o!er a!ordable prescription drug bene$ts to their employees through the use of PBMs.


House Committee approves bill to extend capital credits"e House Economic Development and Tourism Committee approved

SB 48, by Sen. Arthur Orr, R-Decatur, which provides that businesses that qualify for the state’s income tax capital credits may carry forward the credits for up to four additional years.

A Revenue Department report on the actual utilization of capital credits shows that signi$cant portions of credits are not taken because many of the companies are not pro$table in their early years of operation.& If enacted, qualifying companies that create at least 100 jobs and make capital investments of at least $100 million may have up to an additional four years to take the capital credits.

Committee OKs ADEM term limit billHB 506, by Rep. Jack Williams, R-Birmingham, received a favorable

report from the House Commerce and Small Business Committee. &"e bill would limit to two the number of terms for members of the

Alabama Environmental Management Commission and expands the quali$cations for one of its members to include not only a person who has been certi$ed by the National Water Well Association Program but also a person who is a hydro-geologist or geologist or a person certi$ed by the National Ground Water Association.

Speaker pleased with productivity as session reaches halfway point!

As lawmakers reached the halfway point of the 2012 Regular Session, House Speaker Mike Hubbard said "ursday he was pleased with the productivity of the session so far.

"e House has passed a signi$cant portion of its priority legislation, including a slate of job-growth bills. Other important bills are moving through committee, including proposals that would reform the state’s retirement systems, o!er more %exibility and choice for parents whose

CHAPTER 8 93

children are in public schools, and repeal the 2007 legislative pay raise and allow voters to set legislative pay at median income.

“Our top priority was passing job-growth legislation, and we’ve accomplished that,” Hubbard said. “Other signi$cant items are successfully moving through committee and are poised to come before the full House in the second half of the session. Our members have worked hard representing the needs of their constituents and moving Alabama forward.”

Bills of interest to business include: "e Alabama Data Processing Center Economic Incentive Enhancement Act, HB 154, by Rep. Dan Williams, R-Athens, passed by House, passed by Senate Committee, pending action by the full Senate.

Data processing centers are key components of the 21st century economy.&"ese centers employ a skilled workforce, provide high-paying jobs, and have a low environmental footprint.&Alabama is uniquely positioned to compete for jobs in this growing industry.

"is proposal would expand the scope of certain tax incentives in order to focus on recruiting more data processing centers to Alabama. "e Alabama Job Creation & Retention Act, House Bills 159 & 160, by Rep. Barry Mask, R-Wetumpka, passed by the House, pending committee action in the Senate.

"is constitutional amendment (HB 159) would allow voters to give the governor and the Alabama Development O#ce more %exibility in o!ering tax incentives to land major economic development projects and retain companies that might otherwise relocate outside Alabama without having to call a special session of the legislature.

"e corresponding enabling bill (HB 160) sets strict parameters for how incentives can be used to ensure return on investment. Spurring Investment in Struggling Communities, HB 257, by Rep. Jamie Ison, R-Mobile, passed by the House, pending committee action in the Senate.

"is bill would encourage economic investment and job growth in low-income areas by leveraging available federal tax incentives with new state tax incentive o!erings.


In exchange for their investments in quali$ed businesses and projects located in low-income downtown areas throughout Alabama, the state will o!er investors a future tax credit. Investors could claim a 50-percent graduated tax credit over the course of seven years for investments up to $240 million. "e credit would be zero for the $rst year, 8 percent for each of the next $ve years, and 10 percent the seventh year.&

BCA members honored at AAMA eventBCA member ZF Axle Systems of Tuscaloosa was named Supplier

of the Year by the Alabama Automotive Manufacturers Association this week.&Plant manager Ron Davis, PE, is a member of the BCA Board of Directors.

Several other BCA members were $nalists for the award: Aluminum Technology Schmid-North America, Inc., Eissmann Automotive North America, Inc., Hwashin America Corporation and Navistar Diesel of Alabama, LLC.

Washington BriefingSenate Rejects Ex-Im Bank Reauthorization

"e Senate on Tuesday voted 55-44 not to reauthorize the U.S. Export-Import (Ex-Im) Bank.

"e measure, o!ered as an amendment to the unrelated House-passed job creation package H.R. 3606, needed 60 votes to proceed. Just before the vote, Senate Minority Leader Mitch McConnell (R-KY) urged his colleagues to vote no on the cloture motion, not because of opposition to reauthorization but because of parliamentary objections. Attaching the provision would send the bill back to the House and slow progress on the overall bill.

"e reauthorization amendment o!ered by U.S. Sen. Richard Shelby (R-AL), ranking Republican on the Senate Banking Committee, along with U.S. Sens. Maria Cantwell (D-WA), Lindsey Graham (R-SC) and Banking Committee Chairman Tim Johnson (D-SD) would increase the bank’s lending limit to $140 billion from $100 billion and extend the life of the bank through 2015.

95

"e CCAA Board of Directors: 1st row, left to right: Ronnie Acker, Bessemer Chamber of Commerce; Jan Wood Wells, Chair of the Chamber of Commerce Association of Alabama; Kirk Mancer, Cullman Area Chamber of Commerce; 2nd Row, left to right: Mary Patchunka Smith, Clay County Chamber of Commerce; Lolly Steiner, Auburn Chamber of Commerce; Pamela Burnham, Saraland Chamber of Commerce; Morri Yancy, Lake Guntersville Chamber of Commerce; Jeremy Arthur, executive director of the Chamber of Commerce Association of Alabama; Marvin Waggoner, Alexander City Chamber of Commerce; Jim Page, West Alabama Chamber of Commerce&

2011 A N N U A L M E E T I N G

BCA Chairman Will Brooke gives $nal remarks before handing over the gavel to incoming BCA Chairman Terry Kellogg

Major Garrett, Congressional correspondent for National Journal, talks with former BCA Chair Carol Gordy


New members of the BCA Board of Directors listen to BCA President and CEO William J. Canary during an orientation luncheon in Montgomery

Members of the BCA Board of Directors listen during their meeting in Montgomery

B O A R D O F D I R E C T O R S

97

C H A I R M A N’S D I N N E R

2011 BCA Chairman Will Brooke presents former Governor Bob Riley with the annual “Chairman’s Award”

C O M M I T T E E L E A D E R S H I P D A Y S

BCA Chairman Will Brooke presents Sen. Arthur Orr with an Advocate for Progress Leadership Award. "ese awards were presented to legislators at the 2011 Governmental A!airs Conference

"e BCA Judicial and Legal Reform Committee discusses changes to the 2012 State Legislative Agenda

Speaker of the House Mike Hubbard addresses attendees during the 2011 Committee Leadership Days


Rep. AJ McCampbell speaks to Ron Buford of Alabama Power Company at the opening reception of the Governmental A!airs Conference"

G O V E R N M E N T A L A F F A I R S C O N F E R E N C E

Attendees at the Governmental A!airs Conference listen

to retired General Stanley McChrystal give the keynote address on Saturday morning

"Governor Robert Bentley

greets Chester Vrocher and his wife Nancy upon his arrival at the Governmental A!airs

Conference"

99

G O V E R N M E N T A L A F F A I R S M E E T I N G S

A standing-room only crowd listened to House Speaker Mike Hubbard at the $rst meeting of the Governmental A!airs Committee of the legislative session

"Governor Robert Bentley sits with BCA 2nd Vice Chairman

Carl Jamison during a speech by former Secretary of Education

Margaret Spellings

Rep. Pebblin Warren and her husband, Macon County

Sheri! David Warren, visit with Fred and Laurel Blackwell

at the opening reception for the Governmental A!airs

Conference

100 THE FOUNDATION FOR PROGRESS • 2012H E A L T H FO R U M S

Denson Henry of Henry Brick

Company speaks to particpants at the

Selma Health Care Forum

Above, from left to right: BCA President and CEO William J. Canary; BCA Senior Vice President Anita L. Archie, Rep. Paul Lee and former BCA Chairman and current Treasurer Charles Nailen attend the Dothan health care forum&Owen Bailey, chairman of BCA’s Health Committee and administrator of USA Children’s and Women’s Hospital in Mobile, speaks to the press about the importance of the health care forums for businesses across Alabama.&

101R E C E P T I O N S A L U T I N G L E A D E R S O F S T A T E G O V E R N M E N T

A N D C E L E B R A T I N G BCA’S 25 T H A N N I V E R S A R Y

Sen. Jabo Waggoner, R-Vestavia Hills; Sen. Greg Reed, R-Jasper; Sen. Phil Williams, R-Rainbow City are among the attendees at the 2011 Reception Saluting Leaders of State Government

Left to right: Harris Morrissette of China Doll Rice and Beans; David Perry, chief of sta! to Governor Robert Bentley; Sandy Stimpson of Scotch and Gulf Lumber; Erik Johnsen of International Shipholding


2 012 A L A B A M A M A N U F A C T U R E R O F T H E YE A R A W A R D S

BCA President and CEO William J. Canary welcomes guests to the 2012 Alabama

Manufacturer of the Year Awards ceremony in Montgomery

Attorney General Luther Strange visits with Dick Anderson and Don Hopper of Huron Valley Steel, and Jeremy Nails of the Morgan County Economic Development Association prior to the Manufacturer of the Year Award ceremony

BCA and ATN o#cials pose with the winners of the Manufacturer of the Year Awards.& "e 2012 winners were Austal USA (large category), Daikin America Inc. (medium category), and Cascades Sonoco (small category)

CHAPTER 8 103

"e Ex-Im’s authority expires in May, and failure to reauthorize Ex-Im’s operations at an internationally competitive level would seriously disadvantage U.S. companies, small and large, in foreign markets, threatening thousands of American jobs that depend on its crucial export $nancing. "e Ex-Im Bank provides loan guarantees to foreign companies that buy U.S. exports. Most industrialized nations have some sort of similar entity.

Reauthorization of the U.S. Export-Import Bank prior to its charter expiring on May 31, 2012, is a BCA federal legislative priority.

House to Consider Short-Term Transportation Extension"e House next week will consider a short-term extension of the

transportation and infrastructure reauthorization bill. By not taking up the two-year highway funding bill, S. 1813, approved by the Senate last week, $nal passage of a long-term bill will be prolonged.

"e transportation bill is critical because it establishes the funding mechanism through which the federal government pays its share of the cost of transportation repair and construction projects carried out by state and local governments.

House leaders have indicated they will put forward an extension of 45 or 60 days that keeps funding at current levels.

Senate Majority Leader Harry Reid (D-NV), however, said this week that he does not plan to schedule a Senate vote on a short-term extension, setting up a stando! between the two chambers.


Senate Approves Insider Trading Bill"e Senate on "ursday voted 96-3 to give $nal congressional approval

to the Stop Insider Trading on Congressional Knowledge Act, the STOCK Act. "e bill, S. 2038, is intended to apply insider trading laws to Capitol Hill to ensure lawmakers and their sta! do not pro$t from nonpublic information.

Originally passed by the Senate in February, the House-passed version did not include some of the more forceful provisions, forcing the Senate to reconsider.

"e bill now heads to the White House where President Barack Obama is expected to sign it.

105

C H A P T E R 9April 2, 2012

A F T E R M O N T H S O F WO R K , C H A N G E S I N T R O D U C E D TO I M M I G R A T I O N L A W

“To be successful, you have to have your heart in your business, and your business in your heart.”

T H O M A S WA T S O N, S R.

C ooper Shattuck, legal advisor to Gov. Robert Bentley, outlined several proposed legislative changes to Alabama’s illegal immi-gration statute for BCA’s Governmental A!airs Committee on

Monday, three days before HB 658, by Rep. Mickey Hammon, R-Decatur, was introduced. BCA supports the legislation.

“"e intent of the immigration law was never to make it di#cult for businesses to comply and burden businesses with unnecessary red tape,” said BCA President and CEO William Canary. “"ese changes, while not perfect, are a much-needed step in the right direction and will allow businesses to clearly comply with both federal and state immigration law. We will work actively for the passage of HB 658, urging our member companies to voice support for these necessary changes in the law.”& &

Shattuck told the group that the changes were meant to “make [the statute] more enforceable, more clearly understood and more e!ective in accomplishing the genuine goals it should have rather than some of the other goals others have attributed to it.”

While promulgating the suggested changes, the Bentley administration met with several stakeholder groups, Shattuck said, including the BCA and other similar associations in an attempt to address some lingering concerns.

Calling the immigration statute one of the “most misunderstood and misrepresented” pieces of legislation in recent history, Shattuck walked attendees through several proposed adjustments. Among them:


Section 3, which provides de$nitions for certain words and phrases in the bill. A “business entity,” for example, will be rede$ned to include only those entities employing one or more persons in Alabama. "e change will prevent those who contract with out-of-state companies that do not employ Alabamians from having to comply with e-verify requirements on the out-of-state business.

Similarly, the term “employee” will be rede$ned to include only those employed within the state of Alabama, which exempts out-of-state employees from e-verify requirements.

A “state-funded entity” would be rede$ned to one that “receives more than 50 percent of its total revenue in any one of the three preceding $scal years from a state, county or political subdivision.”

Section 5 and Section 6 currently allow citizens to $le suit for failure to enforce portions of the statute. "us, attorneys, fearing claims $led against their clients, have interpreted the statute’s provisions in the broadest terms possible. Shattuck said the proposed change would allow citizens to petition the state attorney general to initiate a lawsuit, which would provide an added level of review and lessen the possibility of actions being $led.

Section 7, which addresses public bene$ts, would require only those agencies that fund public bene$ts to verify citizenship of recipients. A current interpretation has led even those agencies that administer bene$ts funded by another to comply with veri$cation requirements, which simply adds to paperwork, confusion and redundancy.

Because public bene$ts include obtaining licenses and professional certi$cations, Shattuck said the change will be important to many within the business community. He added that license renewals would not be subject to veri$cation of immigration status, only initial applications.

Section 9 governing the awarding of grants, contracts or incentives by a public entity would see the requirement that contractors and subcontractors submit a#davits attesting to the legal status of their employees removed and, instead, would simply require them to participate in the e-verify process for their workers. In addition, a contractor could not be held liable if a subcontractor employs those here illegally unless it can be proven they had clear and convincing previous knowledge of the violation.

Section 9 and Section 15 would see the requirement that violators lose their business licenses replaced with a progressive punishment system that is up to the discretion of the courts.

CHAPTER 9 107

Section 12 would see its provisions changed to allow law enforcement to verify citizenship status only when a tra#c citation has been issued or an arrest has been made. If those conditions have been met, anyone in the car can be asked to provide proof of citizenship or legal status.

Section 13 deals with those caught “concealing, harboring or shielding” illegal immigrants. A proposed change would make the statute apply only to those shielding an illegal immigrant “from detection,” so simply having an illegal immigrant in a vehicle would no longer automatically trigger the provision. Religious groups would be exempt from the provision.

Section 14 currently makes it illegal to copy a false identi$cation document, which creates a con%ict for employers who must copy documents in order to verify employees’ status. "at con%ict would be excised with the proposed changes.

Section 17 allows lawsuits to be $led when an illegal immigrant is hired by an employer in place of a lawful citizen who also applied for the position. A proposed change would require the plainti! to prove actual discrimination led to the hiring and provides an exemption for employers who hire for a legitimate business reason. A new criminal charge for $ling a false or frivolous lawsuit under this section would also be created.

Section 18 currently requires law enforcement personnel to bring someone before a magistrate if he cannot produce a drivers’ license and is suspected of having illegal citizenship status. Because not every area of Alabama has a magistrate available 24 hours a day, Shattuck said this provision could lead to embarrassment for the state if someone with legal status is jailed while awaiting a judge. "e proposed change would provide law enforcement the discretion of allowing someone to go free in these cases.

Section 28 would still allow the State Department of Education to determine the cost of educating illegal immigrants enrolled in the public school system but would not allow educators to question students or parents about their legal status.

Section 30 would be changed to de$ne business transactions with the government to include obtaining motor vehicle license plates, drivers’ licenses and business licenses. In only these cases would citizens be asked to prove their legal status, and only upon $rst application, not renewals.

Shattuck said the laundry list of amendments does not address every concern that was expressed about the statute but goes far toward providing relief from its most cumbersome provisions.


He noted that the changes should not have a signi$cant impact on the pending federal court litigation involving the immigration statute. "ough some plainti! concerns will likely be addressed by the proposed changes, other provisions with which they strongly disagree would remain intact. Shattuck noted that much of the litigation remains in limbo while the U.S. Supreme Court’s ruling on a similar Arizona immigration statute is anxiously awaited.

HB 541 on way to full House after committee gives favorable report

After a sometimes contentious three days of meetings, the House Ways and Means Education Committee gave a favorable report to HB 541, the Education Options Act, which would&allow Alabama to join the majority of other states and o!er public charter schools, as well as o!er existing schools more %exibility from burdensome state laws and regulations.

"e committee voted 9-6 to approve the bill, with the $ve Democrats and one Republican, Rep. Jeremy Oden, R-Vinemont, voting against the measure.&

Sponsored by Rep. Phil Williams, R-Huntsville, the legislation would help educators customize schools for the needs of their students by allowing school systems to develop innovation plans that seek %exibility from burdensome state laws and regulations in exchange for greater accountability for performance and establish public charter schools in districts with persistently low-performing schools.&

“We are pleased that the House Ways and Means Education Committee has given a favorable report today to the Education Options Act of 2012,” said BCA President and CEO William Canary, who was present for the 9-6 vote, along with Anita L. Archie, senior vice president for Intergovernmental Relations, Advocacy and Communication s and Legal Advisor.

Canary reiterated the BCA’s support of the bill: “Education options and %exibility equal more success for our children. "e Business Council of Alabama is proud to support this historic education package that $nally will provide parents more options to improving the education of their children while at the same time allow teachers more %exibility for classroom instruction.&Businesses are the number one consumer of the product education, and when Alabama adopts this legislation, the dropout

CHAPTER 9 109

rate will decline, more students will be prepared to enter the workforce, and our economy will grow.”

Rep. Williams said the committee vote was a big step forward for education reform in Alabama.

“Today was a victory for students and parents who have never been given an option of a quality school,” Rep. Williams said. “Public charter schools will bring a new dynamic to Alabama education that can breathe new life into areas that have fallen dreadfully behind. "e great thing about this bill is that it o!ers every school district in Alabama many of the same %exibilities that are given to charter schools. If our administrators take advantage of this proposal, every school in Alabama could bene$t from the Education Options Act.”

State School Superintendent Tommy Bice had said he was pleased with the revised version of the bill, but under questioning "ursday from committee member Rep. Craig Ford, D-Gadsden, Bice said he could not support the bill as amended because some state school board members still had concerns about resources and the review process for applications.

"e committee deliberated the proposal for more than two weeks, eventually altering the plan to tighten the focus of charter schools to areas with struggling schools and limiting the total number of charter schools to 20 statewide. House Speaker Mike Hubbard said support for the bill was growing among House members.

“"e more people learn about the opportunities charter schools can o!er the more they support the idea of $nally allowing them in Alabama,” Hubbard said. “Too often our system puts the needs of the education& bureaucracy above the needs of students. We saddle schools with&burdensome rules and regulations instead of getting out of the way and letting teachers teach. While we work to improve our overall education system from the ground up, we must also allow parents, educators and community leaders %exibility from one-size-$ts-all regulations so they can $x local problems with local solutions.”

House approves bill for independent tax appeals commissionBy a vote of 89-0, the Alabama House passed HB 105, by Rep. Paul

DeMarco, R-Homewood, which provides for an independent Alabama Tax Appeals Commission and updates provisions related to the Alabama Taxpayers’ Bill of Rights. "e bill has been introduced in several previous


legislative sessions, and the concept of an independent tax appeals tribunal is the model used in more than half of the states, with Georgia being the latest to adopt the model.

"e remaining Taxpayers’ Bill of Rights section of the bill aligns and updates procedures and provisions with federal law that the state will use to deal equitably with taxpayers. Under the auspices of the Business Associations Tax Coalition (BATC), the BCA is among some 27 business and trade associations that have endorsed this bill.

HB 105 now moves on to be considered by the Senate.

House committee amends bill to create ‘single-point’ of #ling for sales/use taxes to also include rental/lease taxes

Businesses that now pay state-local sales/use and rental/lease taxes to multiple jurisdictions will soon have a central site to electronically $le and pay their tax obligations. Up to now, Alabama’s patchwork of local sales/use tax rates, along with local tax administration conducted by state or local o#cials as well as third parties, have combined to make tax compliance a costly ordeal for businesses.

"e House Commerce & Small Business Committee gave a favorable report to HB 597, by Rep. Jack Williams, R-Birmingham, which creates the “One-Spot” system under the Alabama Department of Revenue for $ling and paying sales/use and rental taxes to all Alabama governmental bodies. "e bill sets up an eight-member Advisory Commission, composed of three members from county government, three members from municipal government, a representative from the BCA and a representative from the Alabama Retail Association, to advise the commissioner of revenue on the development and operation of the system. "e bill further requires local governments to provide tax rate information and to provide updates to that information as changes occur.

"e BCA supports this legislation.

Senate passes tax incentives for data processing centers and extends tax incentives to distribution centers

Late "ursday afternoon, the Alabama Senate passed HB 154, by Rep. Dan Williams, R-Athens, which reduces the minimum number of new jobs that must be created for a data processing center to qualify for tax abatements and capital credits from 50 to 20 jobs. "e bill also provides

CHAPTER 9 111

that the term of abatements for data processing centers may be extended, based on several capital investment thresholds, from a maximum of 10 years to up to 30 years.

Heeding concerns expressed by several senators that the exclusion of warehousing and storage operations would hamper the state’s chances of luring distribution centers, Sen. Trip Pittman, R-Daphne, o!ered a %oor amendment that restored the capital credits to certain warehousing and storage activities that provide at least 50 new jobs and have a capital investment of at least $5 million in non-favored geographic areas or at least $1 million in favored (economically distressed) areas of the state. "at amendment will keep the state in play for several distribution center projects. HB 154 will now be returned to the House for its members to consider the changes made by the Senate.


Bill exempting aircraft parts, components being transmitted to the governor

"e Alabama Senate took most of the day on "ursday to end a $libuster and bring to a vote the conference committee report for HB 39, by Rep. Paul Lee, R-Dothan. "at bill provides for the exemption of state sales/use taxes on parts, components and systems that are incorporated into the refurbishment of certi$ed military, government or commercial transport $xed-wing or rotary wing aircraft.

"e bill is intended to remove a competitive disadvantage experienced by Alabama companies that refurbish aircraft relative to their competitors in other states, where the parts used in such conversions are tax exempt. "e bill includes a provision that will terminate the tax exemption on May 30, 2022.


Senate OKs plan to change unemployment bene#t payments"e Alabama Senate approved SB 300, by Sen. Trip Pittman, R-Daphne,

that would reduce unemployment compensation payments by some $11.4 million annually. Currently, weekly unemployment bene$ts are interrupted for one week after 13 weeks of payments and then resume. "e bill would delay the $rst unemployment payment a week, but the interruption after


13 weeks would not happen.&According to published reports, the state’s unemployment compensation fund would save $11.4 million a year under the bill because unemployed persons collecting bene$ts who found a job before the waiting period after the 13th week would lose a week’s bene$ts compared to the current law.

Pharmacy bill that would save jobs awaits governor’s signatureHB 393, by Rep. Lynn Greer, R-Rogersville, that aims to retain 220

jobs in the Shoals area passed the Senate unanimously and now awaits the governor’s signature. "e bill further de$nes the term “pharmacy services” and protects the ability of employers and state government to continue to o!er a!ordable prescription drug bene$ts to their employees through the use of pharmacy bene$t managers (PBMs). PBMs are used by employers of all sizes, as well as by state public employee and educator bene$t programs such as the Retirement Systems of Alabama and the State Employee Insurance Board, to administer prescription drug bene$t programs and are a tool to prevent rising prescription costs.


Senate committee OKs bill to curb manufacture of methamphetamine!

HB 363, by Rep. Blaine Galliher, R-Gadsden, seeks to clamp down on the manufacture of methamphetamine in Alabama while still allowing persons to purchase over-the-counter products containing ephedrine and pseudoephedrine (PSE), such as common cold and allergy medications. It is one step closer to becoming law. "e bill was reported favorably by the Senate Health Committee and now heads to the full Senate.&

"e bill was a collaborative e!ort by legislators, business groups, law enforcement and the District Attorneys Association to make changes to the existing law that would not penalize consumers who purchased these products for lawful reasons and would also provide mechanisms bene$cial to law enforcement to track those who purchase products containing PSE to manufacture meth.

"e companion bill, SB 344, by Sen. Bill Holtzclaw, R-Madison, previously passed the Senate Health Committee with only one dissenting vote.


CHAPTER 9 113

Governor signs “Heroes for Hire” jobs billGov. Robert Bentley has signed into law HB 152, by Rep. Duwayne

Bridges, R-Valley. "e bill provides an additional $1,000 tax credit to employers who hire unemployed military veterans who were recently deployed and are now discharged from military service. "e bill further provides that unemployed veterans will be allowed a nonrefundable credit of up to $2,000 for expenses related to a start-up business in which he or she owns at least a 50-percent interest.


Jeremy Arthur to Head Chamber of Commerce Association of Alabama

"e Board of Directors of the Chamber of Commerce Association of Alabama has named Jeremy Arthur, current president of the Prattville Chamber of Commerce, as its new executive director. Arthur will assume the position in mid-May.

“We are extremely pleased and fortunate to have a person with the unique blend of experience and professional ability that Jeremy Arthur brings to& the executive directorship of the Chamber of Commerce Association of Alabama (CCAA),” said CCAA board member William J. Canary, president and CEO of the Business Council of Alabama.

"e BCA and the CCAA, through a unique relationship known as "e Partnership, together represent the interests of some one million working Alabamians through BCA’s member companies and more than 120 local chambers of commerce. “We have known and enjoyed working with Jeremy for the past eight years at the Prattville Chamber,” said Canary, “and we look forward to working even closer in our new partnership on all matters important to our state in his new capacity at CCAA.”

Arthur brings several years of experience in chamber of commerce work to the CCAA job. In 2004, he was named executive vice president of the Prattville Chamber, and subsequently was named president of the organization that has more than 875 members in one of the fastest-growing areas of Alabama.

Before joining the chamber, he was an outreach research assistant for the Economic Development Institute at Auburn University. He holds a bachelor’s degree in political science, a master’s degree in public


administration and is a doctoral candidate in public administration and public policy, all from Auburn.

“I am excited about the new opportunity that awaits me,” said Arthur. “Under the leadership of CCAA Board Chairman Jan Wood and the entire CCAA Board of Directors, I look forward to helping achieve the CCAA’s goal of ‘building a better Alabama through strong chambers of commerce.’”

Arthur is a member of several national organizations, including the board of directors of the Auburn Alumni Association, the American Society for Public Administration and the American Chamber of Commerce Executives. He was also elected vice-chairman to the U.S. Chamber of Commerce Board of Regents representing the Southeast Institute for Organization Management (IOM). He is an active member of numerous statewide organizations, including the board of directors of the CCAA and the Economic Development Association of Alabama, where he is currently serving on its Conference Committee.

Washington BriefingCongress Passes Transportation Extension

On March 29, both the House and the Senate passed a 90-day extension of H.R. 4281, of the federal highway and transit programs. "e extension now goes to President Barack Obama for signature.

"e current extension was set to expire March 31. Without an extension, transportation programs, along with the gas tax, which funds these programs, would have expired.


JOBS Act Sent to President’s Desk"e House last week gave $nal approval to a package of bills, H.R. 3606,

designed to remove the barriers preventing small businesses and start-ups from accessing capital they need to grow. "e bipartisan legislation now goes to President Barack Obama, who has said he will sign it.

"e 380-41 House vote came after the House overwhelmingly passed it in early March and the Senate passed it on March 22. Because the Senate

CHAPTER 9 115

amended the House version to add investor protections, the House had to vote on it again before sending it to the White House.

Under the JOBS bill, small businesses would have a reprieve from costly SEC regulations by phasing in certain regulations over a $ve-year period or until the company reaches $1 billion in revenue. "e bill also would repeal the solicitation ban on companies trying to raise capital.

"e Senate added some investor protections, including a provision to ensure that any company using crowdfunding methods must still $le basic information with the securities commission. "is information would include the names of directors, o#cers and holders of more than 20 percent of the company’s shares, plus a description of the business and its $nancial condition.

Companies seeking to raise $100,000 or less also would be required to provide tax returns and a $nancial statement certi$ed by a company principal; those raising up to $500,000 must provide $nancial statements that are reviewed by an independent public accountant.

"e Senate also included requirements that intermediaries seeking to help companies raise money through crowdfunding register with the commission, ensure investors are advised of the risks and take measures to prevent fraud.

BCA Joins Industry Letter on Ex-Im Bank"e Business Council of Alabama joined more than 300 companies and

associations in signing a letter, spearheaded by the National Association of Manufacturers, to congressional leadership urging the House and Senate to bring Ex-Im Bank reauthorization to a vote.

Ex-Im Bank is a vital tool to help grow U.S. exports and boost American jobs. "e Bank’s authorization expired at the end of September 2011, and the bank is currently operating under a short-term extension that ends on May 31.

Passage of a long-term reauthorization of Ex-Im Bank is a federal legislative priority of the BCA.

116

Panel hears testimony in House chamber on immigration law


BCA R E I T E R A T E S S U P P O R T A T P U B L I C H E A R I N G O N I M M I G R A T I O N R E V I S I O N S

“Success seems to be connected with action. Successful people keep moving. "ey make mistakes, but they don’t quit.”

CO N R A D HI L T O N

The Business Council of Alabama reiterated its support for legisla-tion that makes revisions to the state’s immigration law as a public hearing on HB 658 got under way Wednesday.

“"e intent of the immigration law was never to make it di#cult for businesses to comply and burden businesses with unnecessary red tape,” said BCA President and CEO William Canary. “"ese changes, while not perfect, are a much-needed step in the right direction and will allow businesses to clearly comply with both federal and state immigration law. We will work actively for the passage of HB 658, urging our member companies to voice support for these necessary changes in the law.” & &

"e two-hour hearing before the House Public Safety and Homeland Security Committee was held in the House chamber. "e committee heard from opponents and proponents but did not vote on the bill. Bill sponsor Rep. Micky Hammon, R-Decatur, said he felt the original bill worked and accomplished what lawmakers intended, but the proposed changes to HB 658 would improve it. &

"e Senate Judiciary Committee held a public hearing Wednesday afternoon on SB 41 by Sen. Billy Beasley, D-Clayton, which would repeal the original legislation, HB 56. Proponents, including students, businessmen and Sen. Hank Sanders, D-Selma, spoke passionately about the need to repeal the law, which they said hurts families as well as the state’s economy. Sen. Ben Brooks, R-Mobile, thanked those who testi$ed

117


and said the committee would “approach the issue with great compassion and great sensitivity” before making a decision.

House Committee approves!‘single point of #ling’ bill"e House Commerce & Small Business Committee gave a favorable

report to SB 459, by Sen. Slade Blackwell, R-Mountain Brook, which creates the “One-Spot” system under the Alabama Department of Revenue for $ling and paying sales/use and rental taxes to all Alabama governmental bodies that levy such taxes.

"e bill directs the Department of Revenue to provide up to $1 million for three years to assist local governments in interfacing with the system. "e bill further sets up an eight-member Advisory Commission, composed of three members from county government, three members from municipal government, a representative from the BCA and a representative from the Alabama Retail Association, to advise the commissioner of revenue on the development and operation of the system.

"e bill requires local governments to provide tax rate information and to provide updates to that information as changes occur.

Gov. Robert Bentley praised the Senate approval of the bill. “We owe it to the taxpayers to be good stewards of the money they send to Montgomery,” he said, “and with this system, we can o!er businesses an e#cient process that meets their administrative needs. We have heard from some companies that a hindrance to doing business in this state is the complexity of the tax $ling system. By streamlining the system, we are making Alabama even more open for business and future economic development.”&

"e bill now moves to be considered by the full House."e BCA supports this legislation.

‘Clean’ version of Education Options Act gets House committee approval !

"e&House Ways and Means Education Committee gave a favorable report to HB 650, a “clean” version of the Education Options Act of 2012, which would& allow Alabama to o!er public charter schools, as well as o!er existing schools more %exibility from burdensome state laws and regulations, in exchange for more accountability. "e committee had

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already approved a similar measure last week but Chairman Jay Love, R-Montgomery, said sponsors wanted a “clean bill” incorporating several rewrites and changes approved last week. "e new bill, Love said, would make it easier to follow on ALISON, the legislative online service.

"e new version now has the approval of the Alabama Association of School Boards. AASB President Steve Foster said the bill is now aligned with its position on %exibility for all public schools. "e group had been concerned the bill did not require schools to locate in the zones of failing schools. &

Several proponents spoke at the public hearing Wednesday, including Barbara Rountree, director of "e Capitol School, a private school in Tuscaloosa, who welcomed the chance to have a charter school in that city where her teachers help tutor students from a failing public school. &

"e committee voted 9-4 to approve the bill. Voting for the bill were Committee Chairman Rep. Jay Love, R-Montgomery; Rep. Terri Collins, R-Decatur;& Rep. Jamie Ison, R-Mobile;&Rep. Barry Mask, R-Wetumpka; Rep. Mary Sue McClurkin, R-Pelham; Rep. Steve McMillan, R-Bay Minette; Rep. Bill Poole, R-Northport; Rep. Phil Williams, R-Huntsville; and Rep. Mark Tuggle, R-Alexander City.

Voting against the bill were Rep. James Buskey, D-Mobile; Rep. Jeremy Oden, R-Vinemont; Rep. Patricia Todd, D-Birmingham; and Rep. Rod Scott, D-Fair$eld. Two members, Rep. Craig Ford, D-Gadsden, and Rep. John Rogers, D-Birmingham, voted against the bill last week but were not present to vote on HB 650.

BCA supports this legislation.&

Finance chief briefs BCA on state’s economic situationJust hours before the House of Representatives debated and approved

a Fiscal Year 2013 General Fund budget that reduced spending by $340 million compared to the current year, State Finance Director Dr. Marquita Davis addressed the BCA Governmental A!airs Committee to brief members on the status of Alabama’s economic situation.

Noting that Alabama is one of three states in the nation that has two budgets divided between education and government operations, Davis said this is the $rst year that the Rolling Reserve Budget Act, passed by the legislature in 2011 and designed to prevent proration declarations in public schools, will be in e!ect.


Under provisions of the law, state revenue estimates in the Education Trust Fund are required to be based upon a rolling 15-year average rather than undependable income projections, and any leftover monies are placed in a reserve that can be used to replenish the Rainy Day Fund. Because of the newly implemented budgeting cap, proposed spending in the almost $6 billion Education Trust Fund lags behind current year expenditures by more than $100 million.

Davis said the funding issues in the ETF are minor when compared to the General Fund. Original estimates for the spending plan that covers most non-education related agencies indicated a shortage of $469 million in a budget of just $1.3 billion — a shortfall of almost 47 percent.

"e $nance director said Gov. Robert Bentley’s administration $rst considered across-the-board cuts of 25 percent in state agencies as a means of combating the shortfall, but circumstances and constitutional mandates made that scenario impossible.

“You can’t cut prisons by 25 percent, for example, because their constitutional duties are protected,” Davis said. “Cutting 25 percent from Corrections would mean allowing 11,000 prisoners to go free, and that’s not a threat — It’s a reality.”

Davis said that two days after the legislature convened, Bentley took a new tack with the budgets and proposed paying for approximately $185 million in General Fund programs related to children, such as health care services administered by the Medicaid Agency, using proceeds from the newly created ETF reserve fund.

"e governor also proposed capping revenues from the Use Tax, which is earmarked for the ETF, at $180 million and dividing any collected overage between the Education and General Fund budgets on a 50-50 basis.

Even with these accounting maneuvers, Davis said Bentley was forced to propose cutting the budgets of about 49 agencies between 20 and 25 percent in the suggested spending plan submitted to the legislature. Lawmakers on both sides of the aisle, however, reacted adversely to the diversion of earmarked education dollars and announced that new versions of the budgets would be drafted from scratch.

"e alternative General Fund budget o!ered by House Ways and Means General Fund Chairman Jim Barton, R-Mobile, had serious issues of its own, according to Davis, including a $6.5 million funding increase for the legislature at a time when other agency budgets are being slashed to the bone.

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Negotiations between the governor’s o#ce and the legislature continue regarding what form the General Fund will take, Davis said, and she plans to work with Senate Finance and Taxation General Fund Committee Chairman Arthur Orr, R-Decatur, on a revised government spending plan that di!ers from the House-passed version.

Conversely, she expects the FY2013 ETF budget to be introduced in the Senate next week by Finance and Taxation Education Committee Chairman Trip Pittman, R-Daphne, and in a form very similar to the version that Bentley originally proposed when the session convened.

While traveling to various cities to outline the budget issues facing Alabama, Davis said she is often asked why the governor will not propose new taxes as a means of shoring up state $nances, and she noted Bentley’s strong opposition to broad-based revenue enhancements as one of the reasons.

Broader role of government must be considered!“Gov. Bentley signed a pledge that he would not raise taxes on Alabama

families, and he is very committed to that,” Davis said. “"e other point of contention is who would see their taxes raised. It’s always easy to propose a cigarette tax or a tax on someone else, when you’re not the one a!ected by it. Non-smokers don’t mind supporting a cigarette tax, but if a tax is proposed on something everybody uses, the response is simply not the same.”

She added that an opinion survey recently conducted by the Public A!airs Research Council of Alabama showed that roughly 57 percent of Alabamians believe that state government has adequate funding to carry out the services it provides, and a majority of respondents also voiced opposition to tax increases of any kind.

“I will say that every year we have the same conversations, discuss the same ideas and do the same thing over and over and over again. Seemingly, someone needs to $gure out how to resolve this issue for the long term,” Davis said. “If you are in opposition to one uni$ed budget, you need to $gure out how we avoid the same problems we continue to experience by having two. We need strong suggestions about how to improve government in the long run.”

Davis said an even broader issue to decide is what exact role government should play in the lives of its citizens and which services should be de$ned as “essential functions of government.”


“Should we fund non-pro$ts? Should we funnel money to local communities? Should workforce development be the priority of the state?” Davis asked. “What exactly should we be doing? "ose are the questions that we have to begin asking if we are going to be honest with ourselves.”

House passes general fund budget 20 percent less than current year

Alabama’s General Fund budget for FY2012 was recently reduced by 10.6 percent at the direction of Governor Bentley, and this week, the Alabama House passed a FY2013 General Fund budget that will total $1.39 billion, which is $345 million — or nearly 20 percent — less than the year before.

Years of supplementing the General Fund revenues with one-time funds have hidden the true funding shortfall in general government, but the magnitude of those problems is becoming increasingly clear, as state agency consolidations/closures, reduced state services and state employee layo!s edge closer to reality. &

"e more state agencies depend on the General Fund for their funding, the greater the agency will be negatively a!ected by funding cuts.&"e negative funding impacts are even more pronounced for agencies that use their General Fund appropriations to match federal funds.

"e following table compares selected agencies’ FY2013 state General Fund appropriations to FY2012 prorated:

1) Judicial Branch (Courts) ($ 28.6 million) (22.8%) 2) Public Health ($ 16.2 million) (32.1%)3) Human Resources ($ 19.4 million) (24.9%)4) Corrections ($ 38.8 million) (10.2%)

Film incentives bill goes to governorA conference committee report to HB 243, by Rep. Terri Collins,

R-Decatur, has re-passed both the House and Senate and is now awaiting the governor’s signature. "e bill expands the incentives that are o!ered for $lm productions shot in Alabama, by increasing the cap on the size of $lm projects that may be recouped by rebates from $10 million to $20 million and by increasing the aggregate annual cap on incentives from $10 million to $20 million in FY2015. According to proponents of the bill, Alabama is

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receiving only a small portion of its potential share of $lm projects because of the limitations currently in e!ect.

In Other NewsCoal and severance tax extended, proceeds redistributed

HB 145, by Rep. Bill Roberts, R-Jasper, passed the House on "ursday.&A similar bill to extend the collection of coal and severance tax died in last year’s regular session, causing the tax to expire October 1, 2011. "e bill provides for the retroactive collection of the tax for the months preceding the passage of the bill and extends the collection of the tax until October 1, 2016. "e bill also alters the distribution of the proceeds from the tax to certain entities.

Bill limiting immunity to road builders in line to be signed by the governor

"e Alabama House gave $nal approval to SB 139, by Sen. Clay Sco$eld, R-Guntersville, that limits the liability of a contractor for physical injury, property damage or death for work performed on a highway, road, bridge or street on behalf of the Department of Transportation (DOT), a county governing body or a governing body of any other local government unless certain factors are present. "e bill further provides that a contractor must notify DOT if he discovers before or during construction that the plans and speci$cations could result in a potentially dangerous condition. BCA supports this legislation.


H O U S E A P P R O V E S C H A N G E S TO BCA -B A C K E D I M M I G R A T I O N L A W

“E#ciency is doing things right; e!ectiveness is doing the right things.”PE T E R DR U C K E R

HB 658, by Rep. Micky Hammon, R-Decatur, which makes sev-eral much-needed revisions to the state’s immigration law, HB 56, passed the Alabama House after a prolonged $libuster by

opponents who advocated for the law’s repeal. "e House spent the major-ity of "ursday on the bill, spending nearly seven hours in debate before invoking cloture to end the debate. "e bill received bipartisan support with a vote of 64-34.

"e BCA was one of 12 business associations that worked vigorously to garner “yes” votes for the legislation, which would provide some relief from burdens placed on the business community by the original HB 56. In a joint statement this week, the business associations urged support for the bill which, while not perfect, “would nevertheless bring some needed clarity and relief to our members.” "e bill now moves to the Alabama Senate where the members are heavily divided.

In related legislation, a public hearing was held on SB 140, by Sen. Gerald Dial, R-Lineville, that incorporated many of the law enforcement changes suggested by Attorney General Luther Strange. A hearing was held last week on SB 41 by Sen. Billy Beasley, D-Clayton, that advocates for the repeal of HB 56. Another bill, SB 541, by Sen. Scott Beason, R-Gardendale, proposes changes to the immigration law but fails to address many of the concerns of the business community.

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Senate Education Committee approves Sen. Brewbaker’s Education Options Act

"e Senate Education Committee on Tuesday held the $rst public hearing for SB 513,&by Sen. Dick Brewbaker, R-Pike Road. "e bill by Brewbaker, chairman of the Education Committee, is slightly di!erent from the version the House Ways and Means Education Committee passed last week, which is sponsored by Rep. Phil Williams, R-Huntsville.&

Under Brewbaker’s bill, charter schools could only be started in already existing failing schools, otherwise known as “conversion-only” charter schools. Under Williams’ bill, a charter school would not have to start from an already existing school, meaning a “startup” charter school would be permissible.

It became evident during the public hearing that the tide had turned in favor of the %exibility and charter school legislation. "e $rst to testify, and the only opponent who spoke out against the legislation, was AEA Executive Secretary Henry Mabry. Mabry continues to approach the issue from the school-funding angle, contending that public charter schools take money from traditional public schools.

Following Mabry’s testimony, speaker after speaker told committee members of the need for more parental choice and more options for students

Attendees listen to the Senate Education Committee discuss the Education Options Act

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in Alabama. Parents and business owners pleaded with the committee to give their children an option when it came to failing schools. Former senator and two-year college chancellor Bradley Byrne passionately spoke on where Alabama could be with true education reform. Montgomery County School Superintendent Barbara "ompson expressed a desire to open a charter school to focus on young men in the school system — those who she says are consistently dropping out and committing crimes in Montgomery. "e Alabama School Board Association and the Alabama Superintendents Association reiterated their support for the legislation after having initially opposed the bill.

Chairman Brewbaker adjourned the meeting after everyone spoke who wanted to speak. No vote was taken until the committee met again on Wednesday morning.

At the Wednesday morning meeting of the Education Policy Committee, Chairman Brewbaker accepted several amendments to the bill that require charter schools to submit detailed reports of student transfers, withdrawals and expulsions, and he allowed committee members to speak out on the bill once again. After some objections by Democratic members of the committee, mostly lead by Sen. Quinton Ross, D-Montgomery, who continued to express his belief that no one could tell him what the “silver bullet” was about charter schools that made them so great, Brewbaker informed committee members that he would incorporate all amendments into a substitute bill in hopes of making the bill more palatable by the time the full Senate took it up. "e Education Committee approved the bill on a 5-4-1 vote.

Education Committee Members voting in favor of the bill:Sen. Dick Brewbaker, R-Pike Road; Sen. Bill Holtzclaw, R-Madison;

Sen. Slade Blackwell, R-Mountain Brook; Sen. Trip Pittman, R-Daphne; Sen. Del Marsh, R-Anniston.

Education Committee Members voting against the bill:Sen. Gerald Allen, R-Tuscaloosa; Sen. Quinton Ross, D-Montgomery;

Sen. Vivian Figures, D-Mobile; Sen. Hank Sanders, D-Selma.Education Committee members present but not voting:Sen. Shadrack McGill, R-Scottsboro. &


Senate Health Committee chair gives health care exchange update

Senate Health Committee Greg Reed, R-Jasper, addressed the BCA Governmental A!airs meeting on Tuesday to discuss the impact of the federal Patient Protection and A!ordable Care Act on Alabama and other concerns facing the state.

Reed said he was honored by BCA at the end of the last legislative session for sponsoring a law allowing small business owners to deduct 200 percent of the amount they pay for employee health insurance costs while also allowing employees to deduct the same amount for the portion they pay for coverage.

He said the Senate Health panel that he leads routinely handles a wide variety of issues ranging from the spaying and neutering of pets to scope-of-practice issues to insurance regulation and other matters, many of which are important to the business community at large.

Reed said his committee is currently dealing with the creation of Alabama’s health care exchange, which is mandated by the A!ordable Care Act passed through Congress and signed by President Barack Obama.&He voiced his hope that the U.S. Supreme Court will soon rule the federal health care program unconstitutional as the result of lawsuits $led against its existence on behalf of several states, including Alabama.

“I think there are several issues keeping our economy from growing as fast as it can, and among those is a fear of what the federal government will require from businesses in terms of health care moving forward,” Reed said. “One question is who will pay for the $30 to $50 million in estimated costs to set up Alabama’s exchange? Will it be a surcharge on insurance rates or will those who use the exchange be required to pay for it themselves and leave everyone else alone?”

To comply with provisions of the federal health care mandate, Gov. Robert Bentley formed a commission chaired by Reed and House Health Committee Chairman Jim McClendon, R-Springville, and tasked them with making recommendations on how to best set up a state health care exchange.&"e resulting legislation by Rep. Greg Wren, R-Montgomery, could soon be voted upon in the Alabama House, according to Reed. (See related story below.)

"e senator said he hopes the bill empanelling Alabama’s exchange would meet only the minimum requirements of the federal law and contain

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a self-destruct stipulation that automatically rules the measure moot if the Supreme Court $nds the A!ordable Care Act or any of its provisions unconstitutional.

“Recognizing that the A!ordable Care Act may continue to be the law of the land and that the exchange is a requirement thereof, it would be irresponsible for us to not have the elements in place needed to comply on our terms rather than the federal government’s terms,” Reed said. “We can’t just ignore this issue and hope it goes away only to later $nd the federal government on top of us putting together its own exchange that we have to then pay for.&I want Alabama to control its own destiny rather than the federal government.”

Reed said he often must juggle the interests of competing groups while keeping business and insurance and the coverage each must provide balanced.&Scope-of-practice issues a!ecting midwives, nurse practitioners, physical therapists and similar groups are among the debates Reed said he must referee.

Finding a solution to funding woes in the state’s perpetually anemic General Fund budget must also be a legislative priority, Reed said.&"e General Fund budget approved by the House after an hours-long debate has several issues that need to be recti$ed, he noted, and added that he expects Senate Finance and Taxation General Fund Chairman Arthur Orr, R-Decatur, to lead that e!ort.

“"e governor has repeatedly stated that Alabama needs to live within its means, and, recognizing the economic downturn, that means there are going to be cuts many will $nd di#cult,” Reed said.&“But, at the same time, taxing our businesses and our citizens at a higher rate than they currently are is not an acceptable option either.”

Reed, who represents four of the state’s $ve largest coal-producing counties in Walker, Je!erson, Tuscaloosa and Winston, held up the coal industry for special recognition because its members agreed to continue paying a coal severance tax despite no law requiring it of them.&He said he is pushing legislation to bring clarity to the issue because proceeds from the tax are used on the local level for road-building and repair projects.

Responding to a question about constitutionally mandated legislative redistricting, Reed said redrawing district lines is always a controversial issue, but he feels the Reapportionment Committee will be “fair and equitable” to all involved.&He added that the issue may be tackled during


a special legislative session called within the regular session, or, perhaps, a stand-alone session convened after sine die adjournment in late May.

House Committee OK’s bill establishing Alabama Health Insurance Exchange

"e House Health Committee granted a favorable report to a substitute version of HB 245, by Rep. Greg Wren, R-Montgomery, that would create and set operating guidelines for the Alabama Health Insurance Marketplace as mandated by the Patient Protection and A!ordable Care Act of 2010.

Commonly referred to as “the exchange,” it would provide a centralized location where individuals may obtain comparative information on available health insurance plans and would facilitate the purchase and sale of those plans.&

"e bill also creates a Small Employer Insurance Marketplace where small employers with 50 or fewer full- and part-time employees could access health insurance coverage for their employees beginning in 2014. In 2016, employers with 100 or fewer employees would be eligible to o!er coverage via the small employer exchange.

HB 245 further mandates the Alabama exchange be self-sustainable by 2015. Funding to operate the estimated $30-50 million per year exchange would come from fees or assessments to policies sold to individuals and employers who purchase coverage through the exchange.

"e 2012 BCA Health Legislative Agenda states that BCA will “ensure legislation that creates and sets operating guidelines for an Alabama Healthcare Insurance Exchange will: focus on providing small businesses and individuals an option for purchasing healthcare insurance; base operation on free market principles; encourage competition within the market; provide transparency to consumers; include business representation within the administrative oversight structure; avoid duplication of current regulatory authority; ensure the stability and reliability of the state’s healthcare insurance market.”

Latest version of ‘Job Creation Act’ denies tax incentives for job!retention projects

Members of the Senate Finance & Taxation-Education Committee approved a substitute version HB 160, the Bentley administration’s key

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job creation incentive proposal that now will not apply to job retention projects.

HB 159 and HB 160, by Rep. Barry Mask, R-Wetumpka, are a proposed constitutional amendment and enabling bill that, if passed and rati$ed by voters, would give wide discretion to the governor to o!er tax incentives for companies that locate or expand their operations in Alabama. "e two bills in tandem would provide that a percentage of state income tax withholdings from the additional employees may be retained and used by the company to o!set the costs of acquiring and equipping the facility.

"e concept of having tax incentives apply to job retention projects is where opponents have directed their harshest criticisms. Several members of the legislature have publicly questioned whether state o#cials could properly evaluate or discern the legitimacy of a retention project or whether representatives from the company are working with them in good faith.&

To ensure that decisions concerning whether companies will be allowed to retain withheld income taxes, Sen. Phil Williams, R-Rainbow City, explained that for purposes of approving income tax withholding incentives, the State Industrial Development Authority, consisting of the commissioner of revenue, the director of $nance and the secretary of the Department of Commerce, will be expanded to include the Senate President Pro Tempore and the Speaker of the House.

HB 160 now goes before the full Senate, where several Senate Democrats have pledged to oppose it because they believe the incentives will reduce funding for public schools.


FY2013 Education Budget will total $151 million less than FY2012

As education budget writers experience the initial impact of the “Rolling Reserve” act, the Senate committee version of the budget will total $5.5 billion, or $38 million more than the amount recommended by Gov. Robert Bentley, but it is some $151 million less than the current year’s total. A recalculation of the budget cap accounts for the $38 million increase above the governor’s total.

"e committee elected not to include $185 million in funding for Children’s Health Insurance as recommended by the governor and historically funded from the State General Fund. "e committee version


also provides an increase of $242.8 million more than the governor’s recommendation to K-12 classrooms, but it is still $46 million less than the amount budgeted for FY2012. State education o#cials anticipate that 600 to 800 fewer teaching positions will be funded next school year, but expect attrition to account for the reductions, not forced layo!s.

"e following table shows selected public education appropriations in millions.

Budgeted Gov Rec F&T-E Sub 2012 2013K-12 Reading Initiative $58.1 $58.1 $58.1Career/Tech O&M ----- $4.0 $5.0AMSTI (Math/Science) $26 $28 $28Distance Learning $18.5 $18.5 $18.5 Advanced Placement $1.3 $2.3 $2.3Virtual Library $3.0 $2.8 $2.8 Career Tech Initiative $2.4 $2.2 $2.2 O!. School Readiness $19.1 $17.8 $17.8TWO-YEAR SYSTEM Adult Education $15.7 $12.6 $12.4 Indus. Dev. Training $5.5 $5.5 $5.5 W’force Dev. Projects $25 $25 $27.9 ALTech Network $4.7 $4.6 $4.6TOTAL UNIVS $1042.5 $1001.4 $992.9&

State agencies expresses concerns over proposed change to administrative rules !

"e House State Government Committee held a public hearing to a standing room-only crowd that expressed serious concerns over SB 190, by Sen. Jimmy Holley, R-Elba. "e bill would, among other things, add an extra layer of approval by the governor for rules promulgated by state agencies pursuant to the Alabama Administrative Procedures Act.&

Under existing law, the AAPA governs the process by which state agencies adopt rules. "e process includes a requirement that before any rule other than an emergency rule can become e!ective, it must be certi$ed to the Legislative Reference Service. "e process also allows an administrative agency to withdraw a certi$ed rule with the approval of the

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Joint Committee on Administrative Regulation Review. However, under the proposed amended statute, this authority would rest solely with the chair of the Joint Committee on Administrative Regulation Review.

Personnel from many state agencies, including the governor’s legislative director, expressed the importance of keeping the current process as is. Some of the concerns raised include an increase in the workload of the governor’s sta! and the potential impediment to needed rule changes. More importantly, the governor and the legislature are working to streamline and make government more e!ective, and the bill appears opposite of that intent.

"e agencies’ concerns also have been raised by BCA members."e committee is set to vote on the bill next week.

Senate Committee approves bill allowing!‘open carry’ of weapons

"e Senate Judiciary Committee gave a favorable report to SB 337 by Sen. Scott Beason, R-Gardendale, by a vote of 5-1. "e bill would authorize a person to carry a pistol in his or her vehicle without a concealed pistol permit and to carry a concealed pistol on another’s property.

Sen. Tom Whatley, R-Auburn, was the lone senator voting with business and against the bill.

Proponents contend that persons should be allowed to carry weapons anywhere, including their vehicles, and that law-abiding citizens must be able to defend themselves against any potential threats. Law enforcement opponents argue that while they support a person’s right to carry a weapon, it is a safety issue, and if permits are no longer required, o#cers would have no way to determine whether a person is a convicted felon or if they present another form of danger.&

BCA’s 2012 Legislative Agenda states BCA “will oppose any legislation that allows persons to openly carry loaded or unloaded handguns in public or in the workplace,” and “infringing on employers’ right to provide a safe workplace for employees by restricting $rearm possession on company property when appropriate and/or creating any new causes of action against employers because of such policies.”


In Other NewsBill to curb manufacture of methamphetamine heads to governor

!HB 363, by Rep. Blaine Galliher, R-Gadsden, which seeks to clamp

down on& the manufacture of methamphetamine in Alabama while still allowing persons to purchase over-the-counter products containing ephedrine and pseudoephedrine (PSE) such as common cold and allergy medications, is on&its way to the governor. "e bill received $nal passage from the Senate by a vote of 27-4.

"e bill was a collaborative e!ort by legislators, business groups, law enforcement and the District Attorneys Association to make changes to the existing law that would not penalize consumers who purchased these products for lawful reasons and would also provide mechanisms bene$cial& to law enforcement to track those who purchase products containing PSE&to manufacture meth.

"e BCA sta! would like to thank Rep. Galliher and Sen. Bill Holtzclaw, R-Madison, for working with the business community to address this issue.

BCA supports this bill.House Committee passes toxic waste bill

After numerous questions by committee members, HB 447 by Rep. Ron Johnson, R-Sylacauga, received a favorable report by the House Commerce and Small Business Committee. "e bill authorizes the Alabama Department of Environmental Management to require certain centralized waste treatment facilities to post a performance bond or other form of $nancial assurance in an amount su#cient to close the facility if it becomes necessary. "e bill also authorizes permit holders for non-hazardous industrial waste treatment plants to impose a user fee equal to 5 percent of the costs of the facility to treat industrial waste. "e fee is to be remitted to ADEM.

"e bill also creates the Centralized Waste Treatment Facility Rehabilitation Fund managed by ADEM for the collection of the user fees established under the bill. When the fund reaches a threshold amount of $10 million, ADEM may suspend the posting of bonds or other $nancial assurance requirements. If the fund falls below the threshold amount at the end of any $scal year, $nancial assurance requirements of the permit

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139


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holders may resume until ADEM determines the threshold amount is restored to the fund. "e bill further provides that funds authorized in the bill are for the exclusive use of closing a facility if the owner or operator ceases proper operation or abandons or fails to properly maintain a facility to ensure compliance with environmental regulations.

Joint Committee discusses water management plan"e Permanent Joint Legislative Committee on Water Policy and

Management, led by Sen. Arthur Orr, R-Decatur, and Rep. Alan Boothe, R-Troy, met on Wednesday to discuss a comprehensive water management plan for the state.

"e committee is tasked with “developing the Alabama Water Management Plan to recommend... courses of action to address the state’s long-term and short-term water resources challenges.”

A key piece of this plan, HB 674, the Alabama Water Sustainability and Security Act, sponsored by Rep. Chad Fincher, R-Semmes, was introduced in the House last week. "is bill would direct the Alabama O#ce of Water Resources to work with other relevant state agencies and interest groups to develop the long-needed water-management plan.

Mitchell Reid, program director for the Alabama River Alliance, and J. Brian Atkins, P.E., division chief for the O#ce of Water Resources, were on hand to discuss with the committee members the need for statewide policies and procedures as well as to answer questions. Upon adjournment of the meeting, the committee indicated its next meeting would be late this summer.

Alabama’s unemployment rate falls again, March’s rate is 7.3 percent

Gov. Robert Bentley on Friday announced that Alabama’s March preliminary unemployment rate dropped to 7.3 percent, down from February’s revised rate of 7.5 percent.

"e last time Alabama’s unemployment rate was at 7.3 percent was December 2008. March’s rate represents 157,378 unemployed persons, down from&161,795 last month, and signi$cantly down from last year’s count of&203,799.

Alabama’s online jobs database, www.joblink.alabama.gov& registered more& job postings in March than at any time since 2008 (with the


exception of&spikes due to temporary jobs following the Gulf Oil Spill and the 2011&April tornadoes). In March, 12,788 jobs were posted.

“Additionally, we continue to see our initial weekly claims for unemployment compensation drop to pre-recession levels,” Tom Surtees, director of the Alabama Department of Industrial Relations said. “"is means fewer people are losing their jobs. Of those that are receiving bene$ts, the average duration is getting shorter — Most are receiving bene$ts for about 17 weeks, meaning that people are going back to work faster.”

Wage and salary employment increased 12,200 over the month, with increases in the trade, transportation and utilities industry; the leisure and hospitality industry; the manufacturing industry; and the professional and business services industry, among others.

"e counties with the lowest unemployment rates were: Shelby County at 5.1 percent, Co!ee County at 6 percent and Lee County at 6.2 percent. "e counties with&the highest unemployment rates were Wilcox County at 16 percent, Lowndes&County at 15.3 percent and Dallas County at 13.4 percent.

Washington BriefingAderholt addresses BCA Federal A"airs Committee

U.S. Rep. Robert Aderholt was the special guest of the Business Council of Alabama’s Federal A!airs Committee last week.

Currently in his eighth term representing Alabama’s Fourth Congressional District, Congressman Aderholt is a member of the House Appropriations Committee. With the annual budget and appropriations process now under way, he discussed his role as chairman of the Subcommittee on Homeland Security, which has an annual budget of $40 billion, as well as his e!orts to bring $scal discipline and oversight to securing the nation.

"e congressman also talked with BCA members about his own e!orts to rein in the Environmental Protection Agency and their harmful regulations. He shared the story of Cullman-based RollSeal, Inc., which has developed energy-e#cient commercial freezer doors. However, because their doors are not manufactured with foam and the current ratings only apply to foam-made doors, this company cannot manufacture their innovative product.

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Instead of sti%ing innovation, the Congress should be focused on boosting our nation’s competitiveness and encouraging entrepreneurship, he said. “Jobs are not a Republican or Democrat issue; they are a red, white and blue issue.”

Congressman Aderholt is a strong voice for Alabama’s business community, and we appreciate the time he spent with us.

Brooks receives Spirit of Enterprise Award

U.S. Rep. Mo Brooks was the featured speaker at the Huntsville/Madison County Chamber of Commerce’s Washington Update luncheon earlier this month. He discussed our nation’s growing debt and its threat to our future.

"e Business Council of Alabama was on hand as our partner, the U.S. Chamber of Commerce, used the opportunity to present Congressman Brooks with the coveted “Spirit of Enterprise” award for his pro-business voting record in 2011.

During the second session of the 111th Congress, the Chamber key-voted 11 Senate and 9 House votes, including passage of a tax cut extension, health care reform, $nancial services legislation, campaign $nance reform and legislation to improve science and math education.

U.S. Sens. Richard Shelby and Je! Sessions and U.S. Reps. Jo Bonner, Mike Rogers, Robert Aderholt and Spencer Bachus all earned the “Spirit of Enterprise” award for the second session of the 111th Congress.


Sessions Addresses Montgomery LeadersU.S. Sen. Je! Sessions, ranking Republican on the Senate Budget

Committee, addressed business leaders and o#cials at the Montgomery Area Chamber of Commerce’s Eggs and Issues breakfast.

BCA joins U.S. Chamber-led coalition to prevent investment income tax hike

"e Business Council of Alabama joined more than 87 trade associations and chambers of commerce in signing a letter, spearheaded by the U.S. Chamber of Commerce, sent to every member of Congress calling for their support of S. 1647 and H.R. 3091, “"e Tax Hike Prevention and Business Certainty Act,” introduced by Sen. Michael Crapo (R-ID) and Rep. Peter Roskam (R-IL), respectively.

"ese bills would maintain the top capital gains and dividends tax rates at 15 percent and prevent a massive tax increase that would have detrimental impacts on investment and jobs in the United States. Unless Congress acts by the end of 2012, the tax rate for capital gains will increase from 15 percent to 20 percent and the dividend tax rate will more than double from 15 percent to 39.6 percent. In addition, beginning in 2013,

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investment income will be subject to an additional Medicare Hospital Insurance tax of 3.8 percent, raising the top rate on capital gains to 23.8 percent and on dividend income to 43.4 percent, resulting in one of the largest tax increases in U.S. history.

House passes tax cut for small businesses"e House on "ursday voted 235-173 to pass the Small Business Tax

Cut Act, H.R. 9, sponsored by House Majority Leader Eric Cantor (R-VA), which would provide new tax cuts for businesses that employ fewer than 500.

H.R. 9 would provide businesses with fewer than 500 employees, which is the de$nition of a small business used by the Small Business Administration, with tax deductions of up to 20 percent of their business income.

"e Democrat-controlled Senate has no plan to consider this Republican measure, and President Barack Obama has said that he would veto it if is passed.

‘Bu"ett Rule’ blocked in SenateOn a largely partisan vote, the Senate on Monday rejected consideration

of the so-called “Bu!ett Rule,” a key component in the philosophical debate over taxes in this election year. "e procedural vote was 51-45, falling short of the 60 votes needed to break a $libuster.

"e Bu!ett Rule, named after hedge fund manager Warren Bu!ett, who famously disclosed that he was paying a lower tax rate than his secretary, was designed to ensure that those earning more than $1 million per year pay the same tax rate as those earning less.

"e Paying a Fair Share Act of 2012, S. 2230, sponsored by Sen. Sheldon Whitehouse (D-RI), would impose a minimum 30 percent income tax on people making more than $2 million yearly and phase in higher taxes for those earning at least $1 million.

According to the nonpartisan Tax Policy Center, a Washington-based group that studies taxes, those who earn $1 million or more annually paid an average e!ective rate of 25 percent last year in federal income and payroll taxes. "ose earning $50,000 to $75,000 paid an average e!ective rate of 12 percent, the group said.


Rep. Micky Hammon explains bill amendments as BCA President and CEO William Canary, Senior Vice President and Legal Advisor Anita L. Archie and Legislative Advocacy and Intergovernmental A!airs Director Claire Haynes listen


S E N A T E A P P R O V E S C H A N G E S TO BCA -B A C K E D I M M I G R A T I O N L A W C H A N G E S

“A pessimist sees the di#culty in every opportunity; an optimist sees the opportunity in every di#culty.”

W I N S T O N C H U RC H I L L

The Senate Judiciary Committee approved the latest version of HB 658 by Rep. Mickey Hammon, R-Decatur, which seeks to revise HB 56, the state’s immigration law that was passed last year. "e

bill will likely go to the Senate %oor next week for a vote."e committee approved the legislation by a 7-3 vote, following testi-

mony from opponents and debate among committee members. "e panel approved amendments that would modify the “reasonable suspicion” pro-vision in the bill, added language that would prohibit school o#cials from collecting from schoolchildren information on the status of their parents, and provide that the bill would go into e!ect 60 days after being signed.

Other changes would remove language to ban undocumented aliens from attending public colleges and a section that prohibited state and local agencies from doing business with undocumented aliens would limit that ban to business licenses and motor vehicle transactions.

Published and broadcast reports quoted Senate President Pro Tem Del Marsh, R-Anniston, as saying he expects a vote on Tuesday.

Voting YES on the bill were Sen. Phil Williams, R-Rainbow City; Sen. Bryan Taylor, R-Prattville; Sen. Arthur Orr, R-Decatur; Sen. Tom Whatley, R-Auburn; Sen. Cam Ward, R-Alabaster; Sen. Jerry Fielding, D-Sylacauga; and Sen. Del Marsh, R-Anniston.

Voting NO on the bill were Sen. Marc Keahey, D-Grove Hill; Sen. Rodger Smitherman, D-Birmingham; and Sen. Linda Coleman, D-Birmingham.

149


Redrawn lines for districts to be subject of likely special sessionState Rep. Jim McClendon, R-Springville, House chairman of the

Permanent Legislative Committee on Reapportionment, addressed the BCA Governmental A!airs Committee on Tuesday and outlined plans to approve redrawn House and Senate district lines before the end of the 2012 regular legislative session.

McClendon said his committee, which is chaired in the Senate by Sen. Gerald Dial, R-Lineville, is tasked with drawing districts that accurately re%ect the population of Alabama as captured by the most recent census data, which he termed “a snapshot in time.” In this case, the panel will use the results of the 2010 census.

“"ere is no need for deception in the process, no need to push plans that are borderline fair, and no need to target any individuals or any regions,” McClendon said. “All that needs to be done is to create fair districts.”

BCA Senior VP Anita L. Archie listens as Rep. McClendon addresses committee

He noted that redistricting is not a “haphazard” process in Alabama, especially given the extreme spotlight on the state as a result of its past history. In addition to the Voting Rights Act of 1965, McClendon said his committee must take into account various court cases, the “one man, one vote” concept and the examination of the newly drawn maps by the U.S. Justice Department Civil Rights Division, a process known commonly as “Section 5 review.”

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Calling it the “most politically charged process the legislature encounters,” McClendon said the recurring, decade-long results of redistricting can often lead to bitterness and ill will among legislators.

“I still hear tales from the redistricting process conducted 10 years ago, and it is still the lingering hard feelings that survive the times,” McClendon said. “Redistricting animosity can, and does, spill over into subsequent legislative sessions.”

In order to prevent the redistricting battle from disrupting the current legislative session, McClendon said the issue will be tackled during an extraordinary session expected to be held May 14-18. "e $ve-day special session is also scheduled to take place between the 29th and 30th legislative days of the on-going regular session, just prior to its sine die adjournment.

“Sen. Dial and I have been working with members for many months, both majority and minority members,” McClendon said. “It is my hope that the special session garners no headlines, and my expectation is that for the $rst time in a century, the composition of the legislature will be an accurate re%ection of Alabama.”

"e three-term lawmaker said the Reapportionment Committee is composed of 11 House members and 11 Senate members with seven from each body representing each of Alabama’s seven congressional districts and another four from both houses serving at-large. "e committee operates under a set of self-imposed guidelines, which, for example, includes making e!orts to prevent two incumbents from opposing each other and, when possible, attempting to make new districts somewhat resemble their old versions.

Splitting cities and counties among several legislative districts is also undesirable by committee members, McClendon said, but population clusters and disbursement often make it unavoidable. Target numbers require roughly 45,000 citizens to reside in each of Alabama’s 105 House districts and about 135,000 to reside within each of the 35 State Senate districts.

McClendon said his committee engaged in a transparent redistricting process that “set new standards for openness.”

Noting that the Democratic majority tasked sta! members with holding 18 public hearings across the state when it last handled redistricting a decade ago, McClendon said his panel invited public input during visits to 21 cities, and both committee chairmen participated in each session. A


court reporter recorded testimony at the meetings, and transcripts of the discussions are available for public review online.

"ough new maps for congressional and State Board of Education districts were successfully redrawn, approved by the legislature and scrutinized by the Justice Department last year with no lawsuits apparently forthcoming, McClendon said he is prepared for the reapportioned House and Senate lines to be challenged in court, no matter how fairly they are drawn.

House passes ‘agreed-upon’ bill to #x gross income problem"e Alabama House debated for three hours Tuesday before passing

HB 286, by Rep. Jay Love, R-Montgomery, on a vote of 54-32, sending the bill to the Senate. "is bill would $x, once and for all, the Department of Revenue’s problems with the “Gross Income” issue. During the %oor debate, several members asked legitimate questions in hopes of gaining an understanding of the complex issue, but the bulk of the time was consumed by rhetoric and appeals by opponents to defeat the legislation.

For years, the department has been caught in the middle of a con%ict between the state income tax statutes and the department’s own regulation. Readers will remember that the statute directed Alabama resident owners/partners of “pass-through” entities that do business inside and outside of Alabama to report their shares of the entity’s income from all sources. A departmental regulation, however, instructed taxpayers to report their shares of the entity’s income earned in Alabama. A taxpayer who followed the regulation and applied his/her full federal income tax deduction (representing the entity’s worldwide operations) could then reduce or eliminate all of his/her state income tax liability.&

In the last regular session, the BCA, the Business Association Tax Coalition (BATC) and the Bentley administration negotiated compromise legislation that passed the House overwhelmingly, but died, along with other bills, on the last night of the session when a $libuster blocked it from coming before the Senate. Following the session, all parties that had agreed to the compromise bill agreed 1) to allow the department’s latest version of the regulation concerning “gross income” to take e!ect and 2) that all would work to enact the bill when the legislature reconvened this year.&

"e compromise bill would require the taxpayer to recognize his/her share of income from all sources worldwide, and the taxpayer would receive

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credits for 100 percent of entity-level, income-like taxes paid to other states and receive a 50-percent credit for income taxes paid to foreign countries to avoid double taxation. Opponents advocate defeating the bill and prefer to have taxpayers rely on the departmental regulation rather than lawfully enacted legislation. "eir reason for preferring the regulation is to deny the 50-percent foreign tax credit and thereby collect more tax revenue.

For years, the BCA has worked in good faith with the key parties to resolve this issue. "ose e!orts last year led to a mutually equitable solution outlined in HB 286, and the BCA remains committed to ful$lling its promises to enact the compromise legislation.&


Senate panel OKs companion bill for independent tax appeals commission

"e Senate Judiciary Committee voted to favorably report SB 549, by Sen. Ben Brooks, R-Mobile, with very little discussion.

"is Senate version of the bill is a companion to HB 105, by Rep. Paul DeMarco, R-Homewood. HB 105 has not been placed on the agenda of the&Senate Job Creation & Economic Development Committee, where it was assigned on April 10.&

Similar versions of the bill have been introduced in several previous legislative sessions, and the concept of an independent tax appeals tribunal is the model used by more than half of the states, with Georgia being the latest to adopt it. Other sections of the bill that pertain to the Alabama Taxpayers Bill of Rights update and conform state law to the procedures and provisions used by the federal government to equitably deal with taxpayers. Under the auspices of the Business Associations Tax Coalition (BATC), the BCA is among some 27 business and trade associations that have endorsed this bill. SB 549 now moves on to be considered by the full Senate.

BCA supports this legislation.&

House passes bill to extend capital credits"e Alabama House passed HB 140, by Rep. Mickey Hammon,

R-Decatur, which provides that businesses that qualify for the state’s income tax capital credits may carry forward the credits from one year


up to four additional years, depending on the amount of the capital investment, but not to exceed the original total of 20 years. An Alabama Department of Revenue report on the actual use of capital credits shows that signi$cant portions of the credits are not taken because the companies are not pro$table in their early years of operation.

BCA supports this legislation, which now moves to the Alabama Senate.

Senate committee approves unitary combined reporting bill !"e Senate Finance & Taxation-Education Committee, on a vote of

8-3, gave a favorable report to SB 333, by Sen. Marc Keahey, D-Grove Hill. In addition to mandating combined reporting, which is estimated to raise $30 million annually, the bill reduces the domestic production activities deduction, to raise an estimated $20 million annually, and it further reduces the deduction for bonus depreciation by 50 percent, to raise an estimated $13 million annually.

"e BCA continues to oppose any legislation mandating unitary combined reporting.

‘Single point of #ling’ bill awaits governor’s signatureBusinesses that now pay state-local sales/use and rental/lease taxes

to multiple jurisdictions will soon have a central site to electronically $le and pay their tax obligations. Alabama’s patchwork of local sales/use tax rates along with various forms of local tax administration (state, self-administered local and third party) have all combined to make tax compliance a costly ordeal for businesses.

"e House and Senate agreed to the conference committee report on SB 459, by Sen. Slade Blackwell, R-Mountain Brook, which creates the “One-Spot” system under the Alabama Department of Revenue for $ling and paying sales/use and rental/lease taxes to all Alabama governmental bodies. "e bill sets up an eight-member Advisory Commission, composed of three members from county government, three members from municipal government, a representative from the BCA and a representative from the Alabama Retail Association, to advise the Commissioner of Revenue on the development and operation of the system. "e bill further requires local governments to provide tax rate information and to provide updates to that information as changes occur.

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House approves changes to Unemployment Compensation Law"e House has passed HB 285, by Rep. Jack Williams, R-Birmingham,

that would establish a one-week waiting period during the $rst compensable week of bene$ts for individuals seeking unemployment compensation bene$ts. "e bill now heads to the Senate.

If enacted, the bill would amend current law that applies a one-week waiting period after the 13th compensable week of paid unemployment bene$ts. "e new waiting period would save the Unemployment Compensation Trust Fund $14.5 million in the $rst year of implementation, according to the Alabama Department of Industrial Relations.

Unemployment Compensation Fraud changes get Senate approval!

Changes to the state’s unemployment compensation fraud law are one step closer to becoming law. Under current law, a person who fraudulently misrepresents that he is unemployed for the purpose of receiving unemployment compensation bene$ts cannot be disquali$ed from receiving bene$ts. HB 72, by Rep. Paul DeMarco, R-Homewood, changes that.

"e Senate-amended version would institute a 104-week disquali$cation of bene$ts if a person is found to be fraudulently claiming he is unemployed simply to receive unemployment compensation bene$ts and until the amount fraudulently awarded is repaid in cash. Any federal or state funds due to the person could be intercepted by the Department of Industrial Relations (DIR) to repay the debt.

HB 72 unanimously passed the full Senate, but it must go back to the House to concur with the changes made. If the House approves the changes, the bill will then go to the governor.


Limited direct access for physical therapists goes to the governor !On a unanimous vote, the Senate granted $nal passage to a substitute

version of HB 163, by Rep. Ed Henry, R-Hartselle, that would allow


physical therapists in speci$c situations to evaluate and treat patients without a referral from a health care provider. "e bill further allows physician assistants, nurse practitioners and chiropractors to refer patients to physical therapists.

HB 163 allows a physical therapist to perform an initial evaluation to determine the need for physical therapy and perform therapy without a referral in $ve limited areas:

To a child with a diagnosed developmental disability pursuant to the plan of care for the child.To a home health care patient pursuant to the plan of care for the patient.To a nursing home patient pursuant to the plan of care for the patient.Related to conditioning or to providing education or activities in a wellness setting for the purpose of injury prevention, reduction of stress or promotion of $tness. To an individual who has received physical therapy for a previously diagnosed condition within 90 days of the diagnosis. "e physical therapy would be limited to 15 days before the patient must return to the health care provider.

HB 163 now awaits the governor’s signature.

House passes bill establishing an Alabama Health Insurance Exchange !

By a vote of 92-0, the House of Representatives granted a favorable report to a substitute version of HB 245, by Rep. Greg Wren, R-Montgomery, that would create and set operating guidelines for the Alabama Health Insurance Marketplace as mandated by the Patient Protection and A!ordable Care Act of 2010. "e bill now goes to the Senate.

Commonly referred to as “the exchange,” it would provide a centralized location where individuals may obtain comparative information on available health insurance plans and would facilitate the purchase and sale of those plans. "e bill also creates a Small Employer Insurance Marketplace where small employers with 50 or fewer full- and part-time employees could access health insurance coverage for their employees beginning in 2014. In 2016, employers with 100 or fewer employees would be eligible to o!er coverage to their employees via the small employer exchange.

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HB 245 further mandates the Alabama exchange be self-sustainable by 2015. Funding to operate the estimated $30 million to $50 million per year exchange would come from fees or assessments to policies sold to individuals and from employers who purchase coverage through the exchange.

HB 245 also includes language that if the PPACA is upheld,&lawmakers must enact legislation by December of this year to establish a framework for an Alabama-led and managed health insurance exchange. If the legislature fails to act, the exchange will be managed by the federal government.&"e U.S. Supreme Court is expected to rule in early summer on the constitutionality of the act.&

"e 2012 BCA Legislative Agenda states that BCA will: “ensure legislation that creates and sets operating guidelines for an Alabama Healthcare Insurance Exchange will: focus on providing small businesses and individuals an option for purchasing health care insurance; base operation on free market principles; encourage competition within the market; provide transparency to consumers; include business representation within the administrative oversight structure; avoid duplication of current regulatory authority; ensure the stability and reliability of the state’s healthcare insurance market.”

In Other NewsBill would require oversight and fees for PACs and candidates

SB 551, by Sen. Bryan Taylor, R-Prattville, received a favorable report from the Senate Constitution, Campaign Finance, Ethics and Elections Committee on "ursday.

"e bill would require the Alabama Ethics Commission to create a division to monitor registered candidates and political action committees (PACs) in accordance with the Fair Campaign Practices Act. Annual registration fees would be established and required by the Ethics Commission, and the following penalties would be instituted for failing to timely $le reports: $500 for the $rst o!ense; $1,000 for the second o!ense; and the third o!ense will be referred to the attorney general for further action. "e fees and $nes collected would go to the Ethics Commission to cover the operational cost of the new division.

"e bill would also require that each PAC and campaign committee designate a registered agent to be legally responsible for the actions of the


committee. Candidates and the registered agents would be responsible for any $nes and criminal actions; however, campaign funds would be allowed to pay $nes. SB 551 now goes to the full Senate for consideration.

House OKs bill creating Small Business Financing Authority!"e House on "ursday approved HB 600, by Rep. Barry Moore,

R-Enterprise, that would set up an independent entity to help companies with a variety of credit needs. "e Alabama Small Business Financing Act, operating under the Alabama Department of Economic and Community A!airs (ADECA), would allow the state to strengthen and streamline ADECA’s existing business loan and grant programs.&

Establishing a small business financing authority was a key recommendation of the Speaker’s Commission on Job Creation. “Job creation has been and continues to be our top priority this session,” said Speaker Mike Hubbard. “One of the top inhibitors to small business growth is access to capital. Assisting viable companies in attaining loans is a real-world way to promote job growth.”

In August, Alabama was awarded a $31.3 million grant through the U.S. Treasury’s State Small Business Credit Initiative to promote small business lending through three programs: the Alabama Capital Access Program, the Alabama Loan Guaranty Program and the Alabama Loan Participation Program, all administered within ADECA. "e Alabama Small Business Financing Act would codify the current SSBCI programs into law under the Alabama Small Business Financing Authority.

Washington BriefingSen. Shelby named to transportation conference committee

"e House and Senate this week appointed 47 conferees, including U.S. Sen. Richard Shelby, to the conference committee that will craft the $nal version of the surface transportation authorization. Of the 47 conferees, there are 14 senators and 62 members of the House.

"e Senate-passed transportation bill includes the RESTORE Act, which would dedicate 80 percent of the Clean Water Act penalties issued in the wake of the BP Deepwater Horizon oil spill to be split among the $ve Gulf Coast states, including Alabama.

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Another key provision of importance would prevent the Environmental Protection Agency from regulating coal ash as a hazardous material.

In addition to Shelby, other senators on the committee include Barbara Boxer (D-CA); Max Baucus (D-MT); Jay Rockefeller (D-WV); Dick Durbin (D-IL); Tim Johnson (D-SD); Chuck Schumer (D-NY); Bill Nelson (D-FL); Bob Menendez (D-NJ); James Inhofe (R-OK); David Vitter (R-LA); Orrin Hatch (R-UT); Kay Bailey Hutchison (R-TX); and John Hoeven, (R-ND).

House members on the committee include John L. Mica (R-FL); Don Young (R-AK); John Duncan (R-TN); Bill Shuster (R-PA); Shelley Moore Capito (R-WV); Rick Crawford (R-AR); Jaime Herrara Beutler (R-WA); Larry Buchson (R-IN); Richard Hanna (R-NY); Steve Southerland (R-FL); James Lankford (R-OK); Reid Ribble (R-WI); Dave Camp (R-MI); Pat Tiberi (R-OH); Doc Hastings (R-WA); Rob Bishop (R-UT); Ralph Hall (R-TX); Chip Cravaack (R-MN); Fred Upton (R-MI); and Ed Whit$eld (R-KY).

BCA joins multi-industry coalition urging House to keep politics out of federal contracting

"e Business Council of Alabama joined a multi-industry coalition of 154 associations and chambers of commerce, led by the U.S. Chamber of Commerce, in writing a letter in support of H.R. 2008, the Keeping Politics Out of Federal Contracting Act of 2011.

"e bill was introduced April 26 at a hearing of the House Committee on Oversight and Government Reform.

As stated in the letter, “H.R. 2008 is o!ered in response to a draft Executive Order under consideration by the Obama Administration and, if enacted, would preclude the White House from forcing federal agencies to require entities to disclose their political spending — as well as that of their o#cers and directors — as a condition of participating in the federal procurement process.

“"e legislation would help ensure that political spending — or the lack thereof — continues to play no role in federal contracting decisions. "e legislation rea#rms the principle, currently embodied in federal procurement laws, that the Executive Branch has an obligation to procure goods and services based on the best value for the American taxpayer,

and not on political considerations. It also rea#rms the principle that the Administration cannot enact through executive $at legislation that Congress has considered and explicitly rejected.”


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S T A T U S Q U O S E N A T O R S PA S S B I L L M A K I N G C H A R T E R S C H O O L S A L L B U T I M P O S S I B L E

“Standing in the middle of the road is very dangerous; you get knocked down by the tra#c from both sides.”

MA R G A RE T T H A T C H E R

The Senate on Wednesday night passed the Education Options Act of 2012 that would authorize charter schools in Alabama and give teachers and local schools systems more %exibility when it comes

to Montgomery bureaucratic red tape.&SB 513, by Sen. Dick Brewbaker, R-Pike Road, passed just before 8 p.m. by a vote of 23-12.

Facing sti! opposition from the Alabama Education Association and Democratic senators, the message at the State House all week was that opponents would $libuster the bill in an attempt to kill it. When it became clear the votes were there to pass the bill, AEA and Sen. Quinton Ross, D-Montgomery, worked out several compromises that would prevent a $libuster and allow the bill to pass. Under the compromises, charter schools would be limited to only class-3 municipalities, which are the four most populous cities in the state: Huntsville, Birmingham, Montgomery and Mobile.

Another signi$cant change to the legislation was a provision that Sen. Ross introduced, and the Senate agreed to, that would require unanimous consent of the local legislative delegation before a charter school could open in one of the four cities. Much of the debate has also centered on the idea that only non-pro$ts could operate a charter school. Sen. Brewbaker added language to the bill that would prohibit non-pro$ts with poor performance records from running a charter school. Previous changes to the bill limited the number of charter schools to no more than 20. "at provision was kept in place during %oor debate Wednesday night.


BCA President and CEO William Canary remains particularly pleased with the %exibility provisions in the bill. “It’s a great step toward beginning to break the cycle of status quo in education,” he said. “It is historic in that less than 20 months ago, this body was unable to even entertain a discussion or debate on charter schools in Alabama.”&

"e bill now goes to the House of Representatives where members are expected to make changes to the Senate version before passage.

Senators voting for SB 513:Sen. Gerald Allen, R-Tuscaloosa; Sen. Scott Beason, R-Gardendale;

Sen. Slade Blackwell, R-Mountain Brook; Sen. Dick Brewbaker, R-Pike Road; Sen. Ben Brooks, R-Mobile; Sen. Linda Coleman, D-Birmingham; Sen. Gerald Dial, R-Lineville; Sen. Jerry Fielding, D-Sylacauga; Sen. Rusty Glover, R-Semmes; Sen. Jimmy Holley, R-Elba; Sen. Bill Holtzclaw, R-Madison; Sen. Del Marsh, R-Anniston; Sen. Arthur Orr, R-Decatur; Sen. Trip Pittman, R-Daphne; Sen. Greg Reed, R-Jasper; Sen. Paul Sanford, R-Huntsville; Sen. Clay Sco$eld, R-Guntersville; Sen. Harri Anne Smith, I-Slocomb; Sen. Bryan Taylor, R-Prattville; Sen. Jabo Waggoner, R-Vestavia Hills; Sen. Cam Ward, R-Alabaster; Sen. Tom Whatley, R-Auburn; Sen. Phil Williams, R-Rainbow City.

Senators voting against SB 513:Sen. Shad McGill, R-Scottsboro; Sen. Paul Bussman, R-Cullman;

Sen. Billy Beasley, D-Clayton; Sen. Roger Bedford, D-Rogersville; Sen. Priscilla Dunn, D-Bessemer; Sen. Vivian Figures, D-Mobile; Sen. Tammy Irons, D-Florence; Sen. Marc Keahey, D-Grove Hill; Sen. Quinton Ross, D-Montgomery; Sen. Hank Sanders, D-Selma; Sen. Bobby Singleton, D-Greensboro; Sen. Rodger Smitherman, D-Birmingham.

‘Agreed-upon’ bill to #x gross income problem continues to advance

"e Senate Commerce Transportation and Utilities Committee approved HB 286, by Rep. Jay Love, R-Montgomery, putting the bill in position to pass the Senate during the remaining four days of the current session. "e bill is compromise legislation that resolves a longstanding con%ict between a tax statute and a Department of Revenue regulation governing the tax treatment of income earned by resident owners/partners/members of Sub-S corporations, partnerships and LLCs that do business in multiple states.

CHAPTER 13 163

Voting for the bill were Sen. Gerald Allen, R-Tuscaloosa; Sen. Greg Reed, R-Jasper; and Sen. Del Marsh, R-Anniston. Sen. Shadrack McGill, R-Scottsboro abstained.&

Readers will remember that the bill would put into statute a Department of Revenue regulation directing Alabama resident owners and partners of such pass-through entities to 1) report their respective shares of the entity’s income earned worldwide, 2) provide an income tax credit for their shares of entity-level income-like taxes paid to other states, and 3) add a provision that provides a 50-percent credit for taxes paid to foreign countries.

"e BCA, through its a#liation with the Business Associations Tax Coalition, continues to work for passage of this legislation that is long overdue.

Senate passes companion bill for independent tax commission"e Senate passed SB 549, by Sen. Ben Brooks, R-Mobile, which is

the companion bill to, but di!ers from, HB 105, by Rep. Paul DeMarco, R-Homewood. HB 105 passed the House April 5, but was not in position "ursday to pass the Senate. With four working days remaining in the current legislative session, one of the bills must pass both the House and Senate,&and di!erences between the House and Senate versions must be resolved.

On Wednesday, the Senate Job Creation & Economic Development Committee gave a favorable report to a substitute version of HB 105 by chairman Sen. Paul Sanford, R-Huntsville. Its contents are the same as those in SB 549 that passed the Senate.

Some of the primary changes made by the Sanford substitute are:"e governor will nominate, subject to Senate approval, successor judges to the Commission, rather than the governor selecting from names submitted by a nominating committee.After a $nal assessment has been rendered, the burden of proof falls on the Department of Revenue rather than the taxpayer."e substitute provides 45 days to appeal an assessment. "e current time for appeal is 30 days; the House-passed version provides 60 days to appeal.

"e concept of an independent tax appeals tribunal is the model used by more than half of the states, with Georgia being the latest to adopt it.


Other sections of the bill that pertain to the Alabama Taxpayers Bill of Rights update and conform state law to the procedures and provisions used by the federal government to deal equitably with taxpayers. Under the auspices of the Business Associations Tax Coalition (BATC), the BCA is among some 27 business and trade associations that have endorsed this bill. SB 549 now moves on to be considered by the House.

Blackwell proud of legislation to streamline tax #ling for business!State Sen. Slade Blackwell, R-Mountain Brook, chairman of the upper

chamber’s Banking and Insurance Committee, appeared before the weekly meeting of BCA’s Governmental A!airs Committee on Tuesday to outline several bills he has recently sponsored and share his thoughts on how the $nal days of the 2012 regular session might proceed.

Blackwell said he and his family operate a small real estate development company in Birmingham, so his priority as a legislator has been to provide small business owners with the tools and economic environment necessary to build, grow and expand the companies they operate. "us, his legislative package is composed primarily of economic and incentive measures rather than the social issue concerns that many lawmakers in his party often promote.

BCA Senior VP Anita L. Archie listens as Sen. Slade Blackwell addresses BCA Governmental Af-fairs Committee

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“You won’t see me pushing a lot of social issues because there are enough members who are hitting those,” Blackwell said. “What I want to do is focus on getting rid of red tape, streamlining government and making it easier for business owners to operate.”

"e lawmaker, who also sits on the Business and Labor and the Job Creation and Economic Development committees, among others, pointed to the recent passage of important legislation to streamline tax $lings as an example of his e!orts. Known as ONE SPOT, an acronym for Optional Network Election for Single Point Online Transactions, Blackwell’s bill sets up a single, electronic system that businesses may use to $le or pay state and local sales taxes, use taxes and rental and lease levies.

Currently, businesses operating in multiple counties and cities must $le separate tax returns with each local entity, along with the Alabama Department of Revenue. According to the Alabama Retail Association, some retailers in the state must $le 150 separate returns and write 150 separate checks to 150 taxing entities each month. Once Blackwell’s bill goes into e!ect, mandated to occur by the start of FY2014, those same retailers will have the convenience of one-stop, electronic $ling. He noted that the legislation passed both houses without opposition. Gov. Robert Bentley signed the bill into law this week.&

Among other bills he has continued to push, but not yet passed, are those allowing businesses to carry forward their capital losses not o!set by income to the next year on state taxes. Federal law allows businesses to carry forward up to $3,000 in capital losses, but Alabama demands that they be used only in the current year.

Blackwell said his New Market Tax Credit legislation is an important incentive bill that allows Alabama to mirror a tax credit being o!ered to businesses on the federal level, which has spurred roughly $30 billion in private investment in businesses across the country over the past decade.

In exchange for their investments in quali$ed businesses and projects located in low-income and underdeveloped areas throughout Alabama, the state would o!er private investors an income or premium tax credit over the next seven years.

"e program would make a total of $240 million available for investment with participating venture capitalists able to claim 50 percent of the amount in tax credits. For investments in urban downtown areas, the credit is zero for the $rst year and 8.33 percent for each of the next six years. "e cap on state tax credits that can be made available is $20 million


a year, or $120 million over a span of six years, as tax credits are uncollected in the $rst year.

Louisiana was the $rst state to supplement the program with a state tax credit in 2005 with Mississippi following in 2007. Because of its state incentive complement, Louisiana has bene$ted from more than $1.5 billion in New Market-based investments, and Mississippi has reaped almost $500 million in direct capital while Alabama has seen only $77 million %ow into the state through the federal incentive program. Since passing its New Market state tax credit in 2010, Florida has seen its investments quadruple.

Economic impact studies have shown that for every $1 in tax incentives Alabama would o!er through the program, roughly $4 in investment would %ow into the state.

Another measure he hopes to push strongly next year is a research and development incentive that provides tax credits of between 6 and 13 percent to quali$ed companies and $nancial institutions.

He predicted the remaining days of the 2012 regular session could be dominated by a debate over proposed changes and adjustments to Alabama’s illegal immigration statute that was originally passed and enacted last year. "e state Senate, Blackwell said, is divided into three competing Republican factions on the subject.

One group wants to pass a House-approved bill sponsored by State Rep. Micky Hammon, R- Decatur, that includes many changes long requested by the business community as a whole. Another faction supports an alternative being o!ered by Sen. Scott Beason, R-Gardendale, that makes minor adjustments to the immigration law but fails to address most of the issues raised by the business community. A third bloc seeks to do nothing until the Supreme Court rules on a similar Arizona law this summer and o!ers precedence and guidance on how to best proceed. A majority of Senate Democrats advocate for repeal.

“I think we need to move Hammon’s bill because I’m more interested in having a law we can enforce, but without putting a burden on business owners and the business community,” Blackwell said. “Getting those three factions on the same page is going to take a lot of moving parts. If we can’t get a consensus, I’m going to have both hands raised in an e!ort to slow down the Senate until we get the concerns of the business folks taken care of.”

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Bill to strip away rights of property owners stayed by senator but battle not over

Once again, a bill that sought to shackle businesses and property owners with yet another regulation and another new cause of action was defeated, but it is not technically dead. SB 331, by Sen. Paul Sanford, R-Huntsville, would make it illegal for businesses and individual property owners to establish a policy prohibiting anyone from bringing a gun onto their property. "e bill would also authorize new lawsuits against property owners who would deny anyone with a gun access to carry the gun onto the owner’s property.

"ursday was the 26th legislative day, the last day to pass a Senate bill without unanimous consent. "e senators agreed to work through all Senate bills on the special order calendar, and agreed to carry the bill over if a senator opposed a bill and a long debate ensued.

"e BCA sent an electronic copy of its opposition to SB 331 to each senator when the bill came up for debate "ursday evening. In the statement, BCA President and CEO William Canary said, “"is bill erodes the constitutional property rights of individuals and businesses.&Alabama businesses are already struggling with burdensome regulations that impact productivity and increase costs.&"e inescapable result of this legislation would be to increase employer costs, including insurance costs, which would result in the loss of jobs.&BCA has consistently opposed this type of legislation for nearly a decade.”

Sen. Slade Blackwell, R-Mountain Brook, was the lone senator to support property owners and immediately began a $libuster on SB 331 to protect private companies in Alabama from being further burdened by the bill’s passage.

When it appeared Sen. Blackwell would not waiver from his $libuster, Senate President Pro Tem Del Marsh, R-Anniston, moved for adjournment of the Senate. "e motion failed. However, shortly thereafter, Sen. Sanford asked for SB 331 to be carried over at the call of the chair, and the Senate subsequently adjourned.

SB 331 may come before the Senate on Tuesday if it has any chance of passing during the remaining days of this session. BCA opposes this legislation.


In Other NewsMinimum school age bill on way to governor!

"e House passed SB 28, by Sen. Priscillla Dunn, D-Bessemer, that would change the mandatory minimum age required for children to be enrolled in school from seven to six years of age. However, the bill allows a parent, legal custodian or guardian of a child who is six to opt out of enrolling their child by notifying the local board of education in writing that the child will not be enrolled in school until the child turns seven. "e bill now goes to the governor for his signature. BCA supports this bill.

Bill would transfer Forever Wild Trust funds if amendment failsA public hearing was held this week on a proposed constitutional

amendment, SB 516, by Sen. Shadrack McGill, R-Scottsboro. If it is approved by the voters in November, and the Forever Wild Amendment fails to be rati$ed, the legislation would authorize the transfer of monies from the Forever Wild Land Trust to the Alabama Department of Child Abuse & Neglect Prevention and to the Education Trust Fund for vocational and technical education in high schools. "e transfer of funds could also be authorized in the event that the Forever Wild amendment is approved but receives fewer “yes” votes than the McGill amendment.

BCA’s 2012 Legislative Agenda supports reauthorization of the Forever Wild Program. BCA opposes SB 516.

House OKs expansion of bene#ts for autism disorder! !"e House on "ursday passed SB 283, by Sen. Cam Ward, R-Alabaster,

that expands coverage of certain health bene$ts for children up to the age of nine with autism spectrum disorder. "e bill, which was agreed to by health bene$t plan providers and the bill sponsor, would increase the number of occupational, physical or speech therapy visits for children under the age of nine and increase the number of o#ce visits to 100 per year. Health bene$t plans “o!er” coverage for behavioral therapy bene$ts for children diagnosed with autism disorder to employers with 50 or more employees for $35,000 per year. Employers will have the option to choose this coverage. "is bill will not impact small employers.

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BCA’s Vernon con#rmed as UWA trustee!"e Senate has con$rmed the nomination by Gov. Robert Bentley of

Victor Vernon, BCA’s director of legislative policy, to the board of trustees of the University of West Alabama.

Vernon represents the interests of the Alabama business community before the legislature and state and local governmental agencies on tax, public education and workforce training issues.

“We are very proud and pleased that Victor’s abilities and expertise have been recognized by the governor and con$rmed by the Senate,” said BCA President and CEO William Canary. “We are con$dent he will be a valuable asset to the University of West Alabama’s board of trustees.”& &

Before joining the BCA in 1998, Vernon was the Senate $scal o#cer for the Alabama Legislative Fiscal O#ce for 18 years. He directed preparation of the Senate’s versions of state education and general government budget bills and directed the work of sta! analysts on all tax, budget and other $scal issues pending before the Senate.

He holds a master of arts in $nance from the University of Alabama and a bachelor’s in economics from the University of Alabama in Birmingham.

Located in Livingston, the University of West Alabama has more than 5,000 students and o!ers more than 60 undergraduate programs and 10 graduate programs.

Walter Energy mine project to bring 500 new jobs BCA President and CEO William J. Canary& joined BCA board

member Walter Scheller, CEO of Walter Energy, at the announcement that his company will bring 500 new jobs to Alabama. "e company will open a metallurgical coal mine in Tuscaloosa County, and the project will provide jobs in Fayette and Walker counties as well as at the Port of Mobile.

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C H A P T E R 14May 7, 2012

D R A W I N G A L I N E I N T H E S A N D , H O U S E R E F U S E S WA T E R E D -D O W N S E N A T E C H A R T E R B I L L

“"ere are no great limits to growth because there are no limits of human intelligence, imagination, and wonder.”

RO N A L D RE A G A N

Many observers this week had expected the Senate to devote a majority of its time making changes to HB 56, the state’s ille-gal immigration law, but that was not to be. Word came late

"ursday that HB 658, by Rep. Micky Hammon, R-Decatur, would not be brought up for debate until the last day of the session, Wednesday, May 16.

"e business community as well as immigration advocates had geared up for a presumed debate on Tuesday, but the day passed without any action. Wednesday’s special order calendar included SB 41, by Sen. Billy Beasley, D-Clayton, that would repeal HB 56, and also included HB 658, which included many changes advocated by the business community. After a lengthy debate, senators rejected the repeal measure by a vote of 20-14.

When the proposed substitute to HB 658, by Sen. Scott Beason, R-Gardendale, was brought up, many senators objected to taking any action on the bill because it contained several changes that they had not been given the opportunity to review.

“"e intent of the immigration law was never to make it di#cult for businesses to comply and burden businesses with unnecessary red tape,” BCA President and CEO William Canary said when the original HB 658 was $rst introduced. “"ese changes, while not perfect, are a much-needed step in the right direction and will allow businesses to clearly comply with both federal and state immigration law.”

BCA supports HB 658.!


Charter school bill dead for this session, but history is made for education reform

"e House Ways & Means Education Committee met on "ursday morning to hold a $nal public hearing on SB 513. Rep. Phil Williams, R-Huntsville, who sponsored the House version and is a passionate supporter of education reform, recognized the fallacies of the amended legislation and asked that the bill be carried over, which stopped it from reaching the House %oor for the one remaining day of the 2012 session. Sen. Dick Brewbaker, R-Pike Road, who sponsored SB 513, spoke at the public hearing and told the committee the version that passed the Senate last week had been diluted, but it was the only way it would have passed in the Senate.

“Believe me, if in your wisdom you decide to scrap SB 513, you won’t hurt my feelings at all. We will all come back and try again next year,” Brewbaker said.&

Williams then explained to the committee that because of changes the Senate made to the bill, they had essentially made it impossible to open a charter school in Alabama. Echoing Brewbaker, Williams concluded by saying, “We will be back.”

Readers will remember that several changes were made to the bill in the Senate last week that included limiting charters to the state’s four most populous cities and requiring unanimous consent from the local legislative delegation. Under those conditions, it would have been an uphill $ght to get even one charter school open.

House Speaker Mike Hubbard, R-Auburn, said House leadership decided to let the bill die in committee because, as reported in the Montgomery Advertiser, “What the Senate sent to us was totally unacceptable. When you get down to it, it was a bill that provided no opportunity for charter schools, (and) no competition. At this late date, it didn’t make any sense for us in the House... to have come through to try to $x a very, very %awed bill” that had little chance of passage.&

Following the meeting, BCA President and CEO William J. Canary noted the historical signi$cance of what had just occurred. “Twenty months ago, we would not have even been able to have this conversation about any education reforms. "e bill may not have passed, but we $nally have a legislature that is willing to spend a signi$cant amount time discussing

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reforms to our education system. "e BCA looks forward to this discussion in the 2013 legislative session.”

‘Agreed-upon’ bill to #x gross income problem awaits governor’s signature

HB 286, by Rep. Jay Love, R-Montgomery, completed its journey through the Alabama Legislature in virtually the same form that it began, despite several early e!orts to derail the measure. "e measure now goes to Gov. Robert Bentley for his signature.

"e compromise legislation eliminates the uncertainty and resolves a longstanding con%ict between a tax statute and a Department of Revenue regulation governing the tax treatment of income earned by resident owners/partners/members of Sub-S corporations, partnerships and LLCs that do business in multiple states.&

"e bill puts into statute a Department of Revenue regulation directing Alabama resident owners and partners of such pass-through entities to report their respective shares of the entity’s income earned worldwide. It also provides an income tax credit for their shares of entity-level income-like taxes paid to other states and adds a provision that provides a 50-percent credit for taxes paid to foreign countries.

“"is issue has always been about tax fairness and tax consistency for Alabama residents to address inequities in the Alabama tax law,” said BCA President and CEO William Canary. “"at is why a broad-based coalition of business organizations, including BATC, BCA and ASCPA, strongly believes that any attempt to change tax law should be through a legislative solution and not by bureaucratic regulations and rule changes. For over a year, we have worked with the administration and legislative leadership in both houses to secure passage of this legislation, and we are pleased that it is $nally going to the governor for his signature.”

Failure to pass HB 286 would have doubled taxes for many businesses in Alabama.&

Reapportionment hearings set to begin!As the House and Senate wrap up the 2012 session next Wednesday,

lawmakers will remain in town as Gov. Robert Bentley is expected to call the legislature into special session to take up the issue of redistricting


state House and Senate seats next week. Maps of proposed districts were released this week for the $rst time and with some interesting changes.

Rep. Jim McClendon, R-Springville, who co-chairs the Reapportionment Committee with Sen. Gerald Dial, R-Lineville, introduced the House version, while Dial introduced the Senate version. Constitutionally, the process of redistricting must take place every 10 years following the census. Based on Alabama’s population, the 105 seats in the House of Representatives must be redrawn so that each member represents roughly 46,000 people. "e 35 Senate seats must also be redrawn so that each senator represents&approximately 137,000 people. Last year the legislature redrew lines for congressional districts and State Board of Education districts.

Proposed changes to House districts include Montgomery County losing one seat, currently held by Rep. Joe Hubbard, D-Montgomery, to Shelby County, while Madison County, which has seen a population boom over the last decade, would gain an additional seat at the expense of Rep. Demetrius Newton, D-Birmingham.

Proposed changes to Senate districts also would add an additional Senate district in Madison County. Sen. Tammy Irons, D-Florence, would see her district expand from Florence all the way to Huntsville. In southwest Alabama, the district of Sen. Marc Keahey, D-Grove Hill has been expanded from the Mississippi line, down through Baldwin County and over to the Florida line.

Bills providing for independent tax appeals commission in position to pass on #nal legislative day

Both HB 105, by Rep. Paul DeMarco, R-Homewood, and SB 549, By Sen. Ben Brooks, R-Mobile, are poised to pass the opposite chambers when the legislature returns for its $nal day of the session Wednesday. If either bill passes, each must be returned to its house of origin for concurrence or for the di!erences between the versions to be resolved by a conference committee.

"e concept of an independent tax appeals tribunal is the model used by more than half of the states, with Georgia being the latest to adopt it. Other sections of the bill that pertain to the Alabama Taxpayers’ Bill of Rights would update and conform state law to the procedures and

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provisions used by the federal government to equitably deal with taxpayers.Under the auspices of the Business Associations Tax Coalition (BATC),

the BCA is among some 27 business and trade associations that have endorsed this bill.

"e House Judiciary committee adopted an amendment o!ered by Rep. DeMarco that changed several provisions in the Senate-passed version of SB 549 as follows:

Restored the concept of a nominating committee to submit names to the governor for successor judges.Re-shifted the burden of proof to the taxpayer after a $nal assessment.Restores a period of 60 days to appeal an assessment, where currently one must appeal within 30 days and the Senate-passed version provided 45 days to appeal.


Senate denies $oor vote on key job creation billOn a procedural vote, the Alabama Senate failed to muster su#cient

support for bringing HB 160, by Rep. Barry Mask, R-Wetumpka, before the full Senate for $nal passage. "at vote means that the cornerstone of the governor’s and the legislative leadership’s concept for job creation is likely dead for this session.&

HB 160, the enabling bill, in conjunction with proposed constitutional amendment HB 159, were intended to provide the state’s industrial recruiting o#cials %exibility and a variety of incentives that could be used to match creative inducements that our competitor states o!er industrial prospects. "e legislation would have provided that a percentage of state income tax withholdings from the additional employees be retained and used by the company to o!set the costs of acquiring and equipping the facility.&

"e Senate Finance and Taxation-Education Committee had earlier removed all references that mentioned using the incentives for job retention projects, which had attracted the most criticism.


Governor signs bills relating to unemployment compensationGov. Robert Bentley signed into law this week SB 300 and HB 72, both

of which relate to uemployment compensation.HB 72, by Rep. Paul DeMarco, R-Homewood, increases penalties for

individuals who commit unemployment compensation fraud.Under the new law, Act 2012-292, violators will be subject to criminal

penalties, disquali$cation for future bene$ts and repayment of fraudulently received bene$ts.

"e bill makes unemployment compensation fraud just as punishable as theft of property. Individuals who receive fraudulent bene$ts in amounts of $2,500 or greater will be guilty of a Class “B” felony. Fraud in amounts less than $2,500 will be prosecuted as Class “C” felonies, and fraud amounts less than $500 will be Class “A” misdemeanors.

Violators will also be subject to disquali$cation of future unemployment bene$ts. A $rst o!ense will result in 52 weeks of disquali$cation. Subsequent o!enses will prevent violators from receiving unemployment compensation for 104 weeks. Violators will also be required to repay the fraudulently received bene$ts, plus interest, and will not be eligible for future bene$ts until the debt is paid.

"e Alabama Department of Industrial Relations estimates that there were more than 12,000 cases of unemployment compensation fraud in $scal year 2011, equaling more than $15 million.

"e second bill, SB 300, by Sen. Trip Pittman, R-Daphne, imposes a one-week waiting period after $ling for unemployment bene$ts. Currently, individuals have a one-week waiting period after 13 weeks of unemployment payments.

Under the new law, Act 2012-299, the $rst week waiting period will save the Unemployment Compensation Trust Fund an estimated $11.4 million.

Metal theft bill heads to governor"e Alabama Legislature this week gave $nal approval to the metal

theft bill, which now awaits the governor’s signature.HB 278, by Rep. Bill Poole, R-Northport, would impose more stringent

requirements on those in the scrap metal recycling industry, requiring these businesses to maintain for one year additional records relating to the purchase of scrap metal, including both a copy of the personal

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identi$cation card of the person delivering the metal to be sold, a digital photograph or video recording of that same person and the vehicle license tag number and state of issue of the person delivering the metal property. "ose businesses that fail to obtain and maintain these records would face criminal penalties.

"e legislation also would classify as a felony the theft of certain metal property, including telephone, cable and power lines and poles; railroad materials; manhole covers; grave markers; and any metal property taken from a school or church. It raises the crime to a felony if the theft or destruction of these items causes imminent danger to the health and safety of the public.

Cash transactions would be limited to no more than $50 for copper, air conditioning coils or catalytic convertors. Persons younger than 18 years old would not be allowed to sell metal property, and metal property could only be purchased between 6 a.m. and 9 p.m.

HB 278 would also require scrap metal recyclers to register with the Alabama Criminal Justice Information Center (ACJIC), or other responsible state agency, and transmit electronically all of their business transactions to the database each day. Only properly authorized law enforcement agencies investigating thefts of metal property would be able to access this data.

BCA has been a part of the broad coalition of business and manufacturing leaders, energy providers, law enforcement, municipalities, churches, scrap recyclers and lawmakers working together for months to develop this legislation to address this growing epidemic.


‘New Market Development Program’ bill transmitted to BentleyGov. Robert Bentley is expected to sign HB 257, by Rep. Jamie Ison,

R-Mobile, which authorizes tax credits on the state’s share of certain taxes for investments in quali$ed community businesses in low-income communities.&

If enacted, Alabama will join states such as Florida, Mississippi and Illinois that already have state New Market Development programs modeled after the New Market Tax Credit Program established by Congress in 2000. "e federal program promotes investments in businesses and real estate projects in low-income communities. Coupling the state incentives


with the federal incentives provides community leaders an e!ective tool for revitalizing low-income census tracts in downtown core areas and central business districts. "e bill caps the credit at $10 million per each quali$ed active low-income community business, sets an aggregate cap of $20 million annually, and limits the taxpayer’s credit to not more than the taxpayer’s state tax liability.


Insurance fraud bill with BCA-authored language goes to governor!

HB 323, by Rep. Steve McMillan, R-Bay Minette, would allow the Department of Insurance to investigate suspected insurance fraud when the attorney general neglects or refuses to prosecute an alleged violation. "e Senate passed the bill this week, and it now awaits the governor’s signature.

"e bill creates a fraud unit within the Department of Insurance to investigate suspected insurance fraud. Funding for the fraud unit would come from a $200 annual assessment of insurers doing business in the state. "e new law also creates civil and criminal penalties for those found guilty of committing insurance fraud and would allow for restitution to the aggrieved party.

Because HB 323 de$nes self-insured health bene$t plans (ERISA plans) as insurers, BCA was concerned employers would be subjected to unnecessary audits by the Department of Insurance. As a result, BCA sta! was successful in having the bill amended to exempt ERISA plans from the bill.

UA intern helping BCA sta"Caty Cameron, a senior at the University of Alabama, is spending three

weeks at the Business Council of Alabama as part of “"e Montgomery Experience” program that provides UA students with the opportunity to learn and work in the state’s capital. She is assisting in the Intergovernmental A!airs, Advocacy and Communications department.

Cameron, who is from Demopolis, maintains a 3.8 GPA while majoring in political science and minoring in communication studies. A member of the Pre-Law Student Association, she is also a justice on the College

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of Arts and Sciences Academic Honor Council. She plans to attend law school after graduation.

Washington BriefingHouse Passes Ex-Im Reauthorization

"e House on Wednesday voted 330-93 to pass a bipartisan agreement, H.R. 2072, reauthorizing the Export-Import Bank. "e legislation went to the House %oor under suspension of the rules, which requires support of two-thirds of the House for passage. All seven members of Alabama’s House delegation voted in support of the measure.

"e legislation would allow the bank’s lending limit to be lifted grad-ually, reaching $140 billion in 2014. For the current $scal year, the cap would increase from $100 billion to $120 billion, and then in $scal years 2013 and 2014, it would grow in two successive $10 billion increments. "e bank’s mandate would be extended for three years.

Without this agreement, the bank’s authority would expire at the end of the month. Failure to reauthorize Ex-Im’s opera-tions at an internationally com-petitive level would seriously disadvantage U.S. companies, small and large, in foreign mar-kets, threatening thousands of American jobs that depend on its crucial export $nancing.

"e bill now heads to the Senate where Majority Leader Harry Reid has indicated that the Senate will quickly take up the House bill and try to pass it unchanged.

Reauthorization of the U.S. Export-Import Bank, prior to its charter expiring on May 31, 2012, is a BCA federal legislative priority.

"is week, the Business Council of Alabama and more than 180 chambers of commerce signed a letter spearheaded by the U.S. Chamber


of Commerce urging the reauthorization of the Ex-Im Bank. "e letter was delivered to every member of Congress.

Also this week, the BCA, along with associations and manufacturers from across the country, joined the National Association of Manufacturers in a print ad urging reauthorization of the bank. "e ad appeared this week in Politico, National Journal, CQ Today and Human Events.

Sessions Receives Coveted U.S. Chamber Award "e Mobile Area Chamber of Commerce hosted U.S. Sen. Je! Sessions

during a Forum Alabama breakfast held last week in Mobile. "e Business Council of Alabama was on hand as our partner, the U.S. Chamber of Commerce, used the opportunity to present the senator with the coveted “Spirit of Enterprise” award for his pro-business voting record in 2011.

During the second session of the 111th Congress, the Chamber key-voted 11 Senate and 9 House votes, including passage of a tax cut extension, health care reform, $nancial services legislation, campaign $nance reform and legislation to improve science and math education.

U.S. Sen. Richard Shelby, U.S. Reps. Jo Bonner, Mike Rogers, Robert Aderholt, Mo Brooks and Spencer Bachus all earned the “Spirit of Enterprise” award for the second session of the 111th Congress.

BCA, Gulf Coast coalition urge Congress to pass RESTORE Act"e Business Council of Alabama as part of a coalition of 115 leaders of

Gulf Coast cities, municipalities, economic development organizations and chambers of commerce sent a joint letter to Congress urging passage of the RESTORE Act in conjunction with the $nalization of the transportation reauthorization bill now pending.

"e RESTORE Act would establish the Gulf Coast Restoration Trust Fund, which would receive 80 percent of all administrative, civil and criminal penalties paid by responsible parties in connection with the Deepwater Horizon oil spill, together with any other appropriated funds. In addition, the legislation would:

Allocate Clean Water Act oil spill program penalties to the Gulf Coast States according to a formula:

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35 percent of the total would be allocated in equal shares to the $ve Gulf Coast States 60 percent of the total would be allocated to the Gulf Coast Ecosystem Restoration Council 5 percent would be allocated to a Gulf Coast research, science and technology program

Authorize the governor of each of the $ve states to support projects and programs that restore, protect and use the resources of the state Establish the Gulf Coast Centers of Excellence for Ecosystem Restoration Science, Monitoring and Technology

"e letter states, “"e economic and ecological restoration called for under the RESTORE Act will create needed private sector jobs while reclaiming vital natural and commercial assets that are unique to the Gulf Coast and critically important to the economic and environmental health of the nation.”

Both the House and Senate have approved versions of the RESTORE Act, which will now be $nalized by the conference committee on the transportation reauthorization bill.

President Signs Ex-Im ReauthorizationPresident Barack Obama on Wednesday signed legislation reauthorizing

the Export-Import Bank, which makes it easier for U.S. companies to sell their goods overseas by providing $nancing for exports.

"e legislation gradually raises the bank’s lending limit, reaching $140 billion in 2014. For the current $scal year, the cap increases from $100 billion to $120 billion, and then in $scal years 2013 and 2014, it will grow in two successive $10 billion increments.

At the bill signing ceremony, the president said, “We’re helping thousands of businesses sell more of their products and services overseas, and in the process, we’re helping them create jobs here at home. And we’re doing it at no extra cost to the taxpayer.”

"e Ex-Im Bank, which dates back to the Roosevelt administration, provides loans and other support for both large and small businesses to sell their products outside of the United States. "ese loans are generally


considered to be more risky due to the volatility of the overseas marketplace.Without this legislation, the bank’s authority would have expired

on "ursday, and U.S. companies, small and large, would face a serious disadvantage in foreign markets, threatening thousands of American jobs that depend on its crucial export $nancing.

Reauthorization of the U.S. Export-Import Bank was a BCA federal legislative priority.

EP I L O G U E

2012 S E S S I O N Y I E L D S PO S I T I V E L E G I S L A T I O N FO R B U S I N E S S

Alabama businesses will reap the bene$ts of much positive legisla-tion from the recently concluded regular session of the state leg-islature, as bills were passed to streamline the $ling of business

taxes; provide incentives for job creation in the coal-mining, data process-ing and aerospace industries; sti!en penalties for metal theft; and make strides toward improvement in public education, among others.

“We are pleased that the Alabama Legislature has built upon the progress begun in the 2011 session,” said BCA President and CEO William Canary. “"e businesses that we represent every day will bene$t from the pro-growth policies re%ected in the legislation passed and signed into law by Gov. Bentley.”

House Speaker Mike Hubbard called the session a “major success,” and added, “"e days of the ‘do-nothing’ legislature in Alabama are over.”

A number of bills on BCA’ s Legislative Agenda were passed and enacted into law, and once again, no anti-business, job-killing legislation was approved.

A summary of major bills BCA monitored throughout the regular and special session follows speci$c legislation supported or opposed in BCA’s 2012 Legislative Agenda listed in the $rst portion of the brie$ng.

Revisions to immigration law make compliance less burdensome for businesses, but penalties harsher

Gov. Bentley signed HB 658, enacted as&Act #2012-491, which makes several changes to the state’s immigration law (HB56/Act 2011-535) passed just one year ago. A few changes make compliance with the law less burdensome on businesses and employers; however, others make the penalties for noncompliance harsher.

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BCA’s 2012 Legislative Agenda supported clari$cation of the immigration law “to ensure that immigration laws impacting Alabama businesses do not impose additional burdens on, or penalize, Alabama employers.”

‘Guns to work’ bills die on Senate $oorSB 331, by Sen. Paul Sanford, R-Huntsville, would have prohibited a

public or private employer, property owner or business from establishing a policy against transporting or possessing a $rearm or ammunition if the person was in compliance with other laws.

"e bill would have made it illegal for an employer or private property owner to establish a policy prohibiting anyone from bringing a gun onto that person’s property. Anyone denied the opportunity to transport or store a $rearm or ammunition or who is $red for violating a company policy would have been able to sue a business, property owner or public or private employer, for violating the act.

Late in the session SB 331 was debated by the full Senate, but a vote was never taken.

SB 337, by Sen. Scott Beason, R-Gardendale, would have authorized a person to carry a pistol in his or her vehicle or private property without a concealed pistol permit.

While the Constitution protects a person’s right to bear arms, eliminating the need for a permit is a safety issue. If permits are no longer required, o#cers would have no way to determine whether a person is a convicted felon or presents another form of danger. "e bill came up for debate on the Senate %oor late in the session, but the bill sponsor agreed to carry it over when several senators expressed concern.

Unemployment compensation!fraud law strengthenedHB 72, by Rep. Paul DeMarco, R-Homewood, enacted as Act #2012-

292, provides that a person who fraudulently receives unemployment compensation bene$ts will be subject to disquali$cation of future bene$ts. A $rst o!ense will result in 52 weeks of disquali$cation. Subsequent o!enses will prevent violators from receiving unemployment compensation for 104 weeks. Violators will also be required to repay the fraudulently received bene$ts, plus interest, and will not be eligible for future bene$ts until the

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debt is paid. "e new law makes unemployment compensation fraud just as punishable as theft of property.

Change in unemployment compensation law expected to save state money

SB 300, by Sen. Trip Pittman, R-Daphne and companion bill HB 285, by Rep. Jack Williams, R-Birmingham, enacted as Act #2012-299, establish a one-week waiting period during the $rst compensable week of unemployment compensation bene$ts for individuals seeking unemployment bene$ts. "e bill amends current law that applies a one-week waiting period after the 13th compensable week of paid unemployment bene$ts. Individuals will be able to receive bene$ts for 26 consecutive weeks beginning with the second compensable week.

"e new waiting period will save the Unemployment Compensation Trust Fund between $11 million and $14.5 million in the $rst year, according to the Alabama Department of Industrial Relations.

BCA’s 2012 Legislative Agenda supports legislation to decrease fraud in unemployment compensation workers’ claims, and opposes expanding unemployment compensation bene$ts that would incur increased taxes on Alabama business.!

Charter school legislation will return next yearSB 513, by Sen. Dick Brewbaker, R-Pike Road, was the school %exibility

and charter school bill introduced this year. It was the $rst step in an e!ort to allow new opportunities for parents when their children attend consistently failing schools. "e law as originally intended would have allowed for the creation of a limited number of charter schools around the state. Charter schools are public schools allowed freedom to teach in innovative ways while being held accountable for higher standards and achievement. Charter schools are not the single solution to all of Alabama’s education problems; however, they are another tool in the education reform arsenal that will help reduce the dropout rate and prepare students to enter the workforce.

After the bill made it through the Senate Education Committee and the full Senate, it was a watered-down piece of legislation that would have


made it virtually impossible to open a charter school in Alabama. Not only did it restrict charter schools to the state’s four most populous counties, it required the unanimous consent of every legislator in the county’s delegation. After passing the Senate late in the session in this watered-down form, it went to the House Ways & Means Education Committee where Rep. Phil Williams, R-Huntsville, sponsor of the House version, asked that it be carried over, essentially killing the bill for the remainder of the session. Williams did make it clear he wanted a better charter school bill, and he would be back in 2013 to push for it again.

Following the committee meeting, BCA President and CEO William J. Canary spoke passionately of Alabama’s advances in the education reform movement and said BCA would support the charter school bill next year. “Twenty months ago, we would not have even been able to have a conversation about any education reforms,” Canary said. “"e bill may not have passed, but we $nally have a legislature that is willing to spend a signi$cant amount of time discussing reforms to our education system. "e BCA looks forward to this discussion in the 2013 legislative session.”

BCA’s 2012 Legislative Agenda supported enacting legislation allowing public charter schools in Alabama.!

‘Agreed-upon’ gross income #x is lawA longstanding issue involving the Alabama Department of Revenue

and resident owners/members/partners of “pass-through” entities that do business in and outside of Alabama has been resolved with the passage of HB 286, by Rep. Jay Love, R-Montgomery, enacted as Act # 2012-27. "is compromise legislation, which originally died on the last night of the 2011 regular session, requires the taxpayer to recognize his/her share of the entity’s income from all sources worldwide, with the taxpayer receiving credits for 100 percent of entity-level, income-like taxes paid to other states and receiving a 50-percent credit for income taxes paid to foreign countries, to avoid double taxation on the same income.

For years, the BCA, along with the other members of the Business Associations Tax Coalition (BATC), has advocated for this legislation as an equitable solution that provides these taxpayers more certainty in tax planning.

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Single-point of #ling: Common-sense application of!technology to promote tax compliance

SB 549, by Sen. Slade Blackwell, R-Mountain Brook, enacted as Act #2012-279, establishes the ONE-SPOT system, an electronic single-point $ling system administered by the Alabama Department of Revenue for taxpayers to $le state and local sales/use and rental/lease tax payments.

"e bill sets up an eight-member Advisory Commission, comprised of three members from county government, three members from municipal government, a representative from the BCA and a representative from the Alabama Retail Association, to advise the commissioner of revenue on the development and operation of the system. "e bill further requires local governments to provide tax rate information and to provide updates as needed.

BCA’s 2012 Legislative Agenda supports streamlining and simplifying our sales/use tax system to provide a single point of $ling for state and all local sales and use tax returns.&

Drafting errors lead to pocket veto of tax appeals commission bill; Bentley pledges support in future session

After working for several years to enact legislation to provide for an independent tax appeals tribunal, Alabama business associations will have to try once more, as Gov. Robert Bentley opted not to sign SB 549, by Sen. Ben Brooks, R-Mobile. On the $nal day of the 2012 regular session, the bill was referred to a conference committee to resolve di!erences between the versions passed by the two chambers, but in the last-minute rush, the wrong version of the bill was used to draft the compromise bill. "e drafting errors were unintentional but were deemed to be too signi$cant for the governor to sign into law.

Both SB 549 and its companion, HB 105, by Rep. Paul DeMarco, R-Homewood, were in position to pass the opposite chamber on the $nal day. "e bills provided for an independent tax appeals tribunal that is the model used by more than 30 states, with Georgia being the latest to adopt this concept. Other sections pertaining to the Alabama Taxpayers Bill of Rights update and conform state law to the procedures and provisions used by the federal government to equitably deal with taxpayers. Under the auspices of the Business Associations Tax Coalition


(BATC), the BCA is among some 27 business and trade associations that have endorsed this bill.

"e governor pledged to include the legislation in any special session that he might call before the regular session in February 2013 and assured the interested parties that he would support its passage.

We thank Sen. Brooks and Rep. DeMarco for working tirelessly to shepherd the bills through the entire process. Supporters are urged to maintain their resolve and continue to advocate for this legislation that provides a sound statutory framework for independent and equitable state-local tax administration.

BCA’s 2012 Legislative Agenda supports both creation of the Alabama Tax Appeals Commission and the Alabama Taxpayers’ Bill of Rights.&

Metal theft now a felony!HB 278, by Rep. Bill Poole, R-Northport, enacted as&Act #2012-426,

classi$es the theft of certain metal property as a felony, including telephone, cable and power lines and poles; railroad materials; manhole covers; grave markers; and any other metal property taken from a school or church.

Cash transactions will be limited to no more than $50 for copper, air conditioning coils and catalytic convertors. Persons younger than 18 will not be allowed to sell metal property, and metal property can only be purchased between 6 a.m. and 9 p.m. "e new law will also require scrap metal recyclers to register with the Alabama Criminal Justice Information Center (ACJIC) and transmit electronically all of their business transactions to the database each day. Only properly authorized law enforcement agencies will be able to access this data.

BCA’s 2012 Legislative Agenda supports e!orts to address the problem of metal theft crimes. !

Law aims to curb meth manufacturingHB 363, by Rep. Blaine Galliher, R-Gadsden, enacted as Act #2012-

237, seeks to clamp down on the manufacture of methamphetamine in Alabama while still allowing persons to purchase over-the-counter products containing ephedrine and pseudoephedrine such as common cold and allergy medications.

HB 363 is an alternative to requiring these products to be available by prescription only. Requiring employees to take time o! work to obtain a

EPILOGUE 189

prescription from a physician for these medications would lead to higher health insurance costs for employers and a loss of employee productivity. "e BCA worked with legislators, law enforcement and the District Attorneys Association to make changes to the existing law that would not penalize consumers who purchased these products for lawful reasons while also providing tracking mechanisms bene$cial to law enforcement seeking out those who purchase products containing pseudoephedrine to manufacture meth.

BCA’s 2012 Legislative Agenda opposes making pseudoephedrine available to Alabama residents by prescription only because it would increase health care costs and lessen employee productivity.

Law gives more liability protection for road buildersSB 139, by Sen. Clay Sco$eld, R-Guntersville, enacted as Act #2012-

225 and actively supported by the Alabama Roadbuilders Association, provides additional liability protection for road builders without shifting responsibility to counties. "e new law limits the liability of a road contractor for physical injury, property damage or death for work performed on a highway, road, bridge or street on behalf of the Alabama Department of Transportation, the county or local government unless evidence shows that an incident was caused by the contractor’s performance or inability to recognize a dangerous condition. "e new law also provides that a contractor must notify the Department of Transportation if he discovers before or during construction that the plans and speci$cations could result in a potentially dangerous condition.&

BCA’s 2012 Legislative Agenda supports legislation providing additional liability protection for Alabama businesses.

Other bills of interestHB 140, by Rep. Micky Hammon, R-Decatur, enacted as Act #2012-

385, allows businesses that qualify for the state’s income tax capital credits to carry forward the credits from one year up to four additional years, depending on the amount of the capital investment, but not to exceed the original total of 20 years. An Alabama Department of Revenue report on the actual utilization of the capital credits shows that signi$cant portions of the credits are not taken because many companies are not pro$table in their early years of operation.


New Market Development Act to promote investments in low-income communities

HB 257, by Rep. Jamie Ison, R-Mobile, enacted as Act #2012-483, authorizes tax credits on the state’s share of certain taxes for investments made in quali$ed community businesses in low income communities. Alabama joins states such as Florida, Mississippi and Illinois that have state New Market Development Programs, which are modeled after the New Market Tax Credit Program established by Congress in 2000. "e federal program promotes investments in businesses and real estate projects located in low-income communities. Adding the state tax incentives to the federal incentives provides community leaders an e!ective tool for revitalizing low income census tracts in downtown core areas and central business districts. "e bill caps the credit at $10 million per each quali$ed active low-income community business, sets an aggregate cap of $20 million annually and limits the taxpayer’s credit to not more than the taxpayer’s state tax liability.

Incentives expanded for the entertainment industryHB 243, by Rep. Terri Collins, R-Decatur, enacted as Act #2012-212,

expands the incentives o!ered for $lm productions shot in Alabama. "e law increases the cap on the size of $lm projects that may be recouped by rebates from $10 million to $20 million and increases the aggregate annual cap on $lm incentives from $10 million to $20 million in FY2015. According to proponents of the bill, Alabama received only a small portion of its potential share of $lm projects because of limitations under prior state law.

Incentives enacted for aerospace industryHB 39, by Rep. Paul Lee, R-Dothan, enacted as Act #2012-185,

provides an exemption from state sales/use taxes on parts, components and systems incorporated into the refurbishment of certi$ed military, government or commercial transport $xed-wing or rotary wing aircraft. "e bill is intended to remove a competitive disadvantage experienced by Alabama companies that refurbish aircraft relative to their competitors in other states, where the parts used in such conversions are tax-exempt. "e bill includes a provision that will terminate the tax exemption on May 30, 2022.

EPILOGUE 191

‘Heroes for Hire’ jobs bill salutes veteransHB 152, by Rep. Duwayne Bridges, R-Valley, enacted as&Act #2012-168,

provides an additional $1,000 tax credit to employers that hire unemployed military veterans who were recently deployed and are now discharged from military service. "e bill further provides that the unemployed veteran will be allowed a nonrefundable credit of up to $2,000 for expenses related to a start-up business in which he or she owns at least a 50-percent interest.

Incentives expanded to attract data processing centers; distribution centers must add at least 50 jobs

HB 154, by Rep. Dan Williams, R-Athens, enacted as Act #2012-210, reduces from 50 to 20 the minimum number of new jobs that must be created for a data processing center to qualify for tax abatements and capital credits. "e bill also provides that the term of abatements for data processing centers may be extended, based on several capital investment thresholds, from the current maximum of 10 years, to up to 30 years. "is bill also extends the capital credits to certain warehousing and storage activities that provide at least 50 new jobs and have a capital investment of at least $5 million in non-favored geographic areas or at least $1 million in favored (economically distressed) areas of the state. "is provision will keep the state in play for attracting several prospective distribution center projects.

Incentives for coal industry scaled back but still expected to be e"ective

HB 144, by Rep. Bill Roberts, R-Jasper, enacted as Act #2012-54, provides that job creation projects in the coal mining industry will be eligible for the state’s capital credits and other abatements under the state’s “Mercedes” incentive law, but the incentives will be limited to 50 percent of the amount otherwise available to other industries. "e bill also excludes the coal company’s costs of acquiring land and the related preliminary engineering, architectural and environmental costs from being included as “capital costs,” which are otherwise recoverable for other qualifying industries.


Voters to decide whether to fund economic development incentives for job creation

HB 12, by Rep. Jay Love, R-Montgomery, proposes a constitutional amendment which, if rati$ed, would authorize a bond commission for the Alabama Capital Improvement Trust Fund to re$nance certain existing debt by issuing refunding bonds, not to exceed $750 million when added to the outstanding general obligation bonds. "is re$nancing would free up an estimated $126.7 million in bonding authority that the state would then use for economic development incentives to attract new jobs to the state. Voters will decide whether to approve the amendment on the November general election ballot.

School performance grading system will provide comprehensive view!

HB 588, by Rep. Terri Collins, R-Decatur, enacted as Act #2012-402, requires the State Superintendent of Education to 1) develop a school grading system that re%ects overall school and school district performance for the 2013-14 school year; 2) post the grades on the Department of Education’s website; and 3) annually provide the grade information to the parent or guardian of each school student. Schools and school systems would receive grades ranging from “A” to “F” to allow parents to make comparisons.

Mandatory minimum school age lowered to sixSB 28, by Sen. Priscilla Dunn, D-Bessemer, enacted as Act #2012-295,

lowers the minimum mandatory age of school attendance from seven to six years. "e Department of Education reports that annually there are a few dozen children who enroll for their $rst school-based learning experience at age seven. "ese children are often far less school-ready than many of their younger classmates who have attended pre-school and kindergarten. Public schools are expected to have about 50 additional students enroll statewide due to the new minimum age.

EPILOGUE 193

Pharmacy bene#t manager bill saves Shoals jobsHB 393, by Rep. Lynn Greer, R-Rogersville, enacted as Act #2012-213,

is intended to satisfy recent requirements imposed by the Alabama Board of Pharmacy on a northwest Alabama call center, allowing it to retain 220 jobs.

"e new law will also prevent the additional regulation of Pharmacy Bene$t Managers (PBMs) that are used by employers of all sizes, as well as by the state public employee and educator bene$t programs such as the Retirement Systems of Alabama and the State Employee Insurance Board, to administer prescription drug bene$t programs and restrain rising costs. PBMs are currently regulated by the Alabama Board of Pharmacy as well as the Alabama Department of Insurance and the Federal Drug Administration, making additional oversight and regulation by the Board of Pharmacy unnecessary.

"e law creates a “win-win” situation by helping to retain existing jobs in Muscle Shoals and protecting the ability of employers and state government to continue to o!er a!ordable prescription drug bene$ts to their employees through the use of PBMs.

Autism bene#ts expanded !SB 283 by Sen. Cam Ward, R-Alabaster, enacted as Act #2012-298,

expands coverage of certain health bene$ts for children up to the age of nine with autism spectrum disorder. "e bill, which was agreed to by health bene$t plan providers and the bill sponsor, will increase the number of occupational, physical or speech therapy visits for children under the age of nine from 35 visits per calendar year to 100 visits.

Bene$t plans also will be required to o!er coverage for behavioral therapy bene$ts for children diagnosed with autism disorder to employers with 50 or more employees. Employers will have the option to purchase this coverage, and the bene$t amount will be capped at $35,000 per year.

"is law does not impact small employers.

Campaign #nance law changedPoliticians and political action committees will be a!ected by at least

two pieces of legislation that passed in the recent session.


SB 497, by Sen. Arthur Orr, R-Decatur, enacted as Act #2012-477, eliminates duplicate and multiple $lings for certain time periods that were previously reported. "e new law also speci$es that daily reports must include all activity occurring since the most recent prior report, and that weekly and monthly $ling requirements cover the entire preceding week or month. Monetary balances of each report now must begin at the same monetary balance reported in the previous report.

Committee to look at changes to Fair Campaign Practices ActSJR 97, sponsored by Sen. Jabo Waggoner, R-Vestavia Hills, enacted

as Act #2012-358, sets up an interim legislative study committee on campaign $nance reform. It also sets up an Alabama Bar Association study group to recommend changes to the Fair Campaign Practices Act to make it more e!ective.

Since the act was enacted in 1988, several changes have been made to provide more transparency and accountability, such as the ban on PAC-to-PAC transfers, the addition of $ling requirements and requiring a searchable internet database that must be up and running by 2014. "e study committee will report its $ndings to the legislature and the governor by the 5th legislative day of the 2013 session.

Solid waste land#ll moratorium extendedHB 556, by Rep. Alan Baker, R-Brewton, enacted as Act #2012-434,

gives a one-year extension to the existing 24-month moratorium on the issuance of any new permits by the Alabama Department of Environmental Management for public solid waste land$ll facilities that receive or are intended to receive wastes not generated by the permittee. "e moratorium was set to expire May 31, 2014.

Digital Crime Act goes after cyber criminalsUnder HB 400, enacted as Act #2012-432, by Rep. Paul DeMarco,

R-Homewood, and Sen. Cam Ward, R-Alabaster, persons guilty of committing a computer crime, including cyberstalking, electronic harassment, phishing, data fraud and computer tampering, are subject to criminal penalties, prosecution and forfeiture of equipment. "is law makes online threats punishable and outlaws acts such as “phishing” and

EPILOGUE 195

“cyberstalking.” "e law also allows law enforcement o#cials to obtain search warrants to secure information held by out-of-state providers such as Twitter and Facebook. It requires Alabama companies to honor the same warrants from out-of-state law enforcement agencies.

Law outlines basis for honoring!foreign money judgmentsSB 348, by Sen. Phil Williams, R-Rainbow City, enacted as Act #2012-

470, sets up a framework outlining when foreign money judgments will and will not be honored by Alabama courts. "e new law states that a foreign money judgment will be honored in Alabama as long as the issuing court was competent, had jurisdiction and gave the parties an opportunity to defend themselves. "e law provides Alabamians and persons with assets in Alabama with a safeguard that did not previously exist. "e law provides a simple court procedure for enforcing foreign-country money judgments, addresses burdens of proof of the parties not covered by current law, establishes grounds for denying recognition of foreign-country money judgments, and establishes a statute of limitations for recognition actions.&

De#nition of de minimis clari#ed in ethics lawHB 466, by Rep. Jay Love, R-Montgomery, enacted as Act #2012-433,

clari$es the de$nition of the legal term, “de minimis,” under the state ethics statute. After the enactment of the 2010 ethics reform package, the term was strictly construed and prevented the giving of gifts that provided little or no value but served merely as a token of appreciation. "e term is now de$ned as a gift of $25 or less per occasion and an aggregate of $50 or less in a calendar year from any single provider. However, the act allows the Ethics Commission to adjust this amount to re%ect any increase in the cost of living as indicated by the United States Department of Labor Consumer Price Index.

Insurance fraud bill with BCA-authored!language becomes lawHB 323, by Rep. Steve McMillan, R-Bay Minette, enacted as Act

#2012-429, will allow the Department of Insurance to investigate suspected insurance fraud when the attorney general neglects or refuses to prosecute an alleged violation.


HB 323 creates a fraud unit within the Department of Insurance to investigate suspected insurance fraud. Funding would come from a $200 annual assessment of insurers doing business in the state. "e law also creates civil and criminal penalties for those found guilty of committing insurance fraud and would allow for restitution to the aggrieved party.

Because HB 323 de$nes self-insured health bene$t plans (ERISA plans) as insurers, BCA was concerned employers would be subjected to unnecessary audits by the Department of Insurance. As a result, BCA sta! successfully amended the bill to exempt ERISA plans.

Texting while driving now banned

HB 2, by Rep. Jim McClendon, R-Springville, enacted as Act #2012-291, prohibits a person from writing, sending or reading a text-based communication while operating a motor vehicle on a public road, street or highway. However, there are exceptions relating to communication for emergency services, idling on the shoulder of a highway, road or street, and for using the device to receive driving directions.

197

AC K N OW LED G EM EN T S"e Business Council of Alabama would like to acknowledge the

valuable contributions of the volunteer chairs and co-chairs of our BCA committees, several of whom made numerous trips to the Alabama State House during the 2012 session to testify before legislative committees on behalf of pro-business legislation.

GOVERNMENTAL AFFAIRSChair: Fred Blackwell,

Fred Blackwell Roo$ngCo-Chair: Chester Vrocher, Alabama Technology Network

EDUCATION AND WORKFORCE PREPAREDNESS

Chair: Bob Powers, "e Eufaula Agency

Co-Chair: Ronnie Boles, General & Automotive Machine Shop

ENVIRONMENT AND ENERGYChair: Tim McCartney,

McCartney Construction Co.Co-Chair: David Roberson,

"e Drummond Company

FEDERAL AFFAIRSChair: Suzanne Respess,

Children’s Health Systems

HEALTH Chair: Owen Bailey,

USA Children’s and Women’s Hospital

JUDICIAL AND LEGAL REFORMChair: Debbie Long,

Protective Life CorporationCo-Chair: Greg Butrus,

Balch & Bingham LLP

SMALL BUSINESSChair: Rick Roden, Greater Jackson

County Chamber of CommerceCo-Chair: Ron Perkins,

Doozer Software, Inc.

TAX AND FISCAL POLICYChair: Marty Abroms,

Abroms & Associates, P.C. Co-Chair: Jim O’Brien

Vulcan Materials Company

LABOR, WORKER AND UNEMPLOYMENT COMPENSATION & HUMAN RESOURCES

Chair: Freda Bacon, Alabama Self-Insured Workers’ Compensation Fund

Co-Chair: Paige Goldman, Energen

199

PRO G RE S SPAC LA U N C H E S CA R R Y I N G T H E F L A G F O R BU S I N E S S CA M P A I G N

The Business Council of Alabama’s politi-cal action committee, ProgressPAC, has

served as the rallying point when the business community and its interests have come under attack time and time again. ProgressPAC has led the charge for business in state elections for nearly three decades with the goal of creating a pro-business legislature and a fair and equitable judiciary.

Because so many courageous business leaders joined together under Progress-PAC’s battle #ag leading up to the 2010 election cycle, Alabama now has an unprec-edented number of legislators and government o$cials who understand what it means to sign the front of a paycheck so others can sign the back.

ProgressPAC’s non-partisan engagement in the 2012 and 2014 campaign cycles will prove critical to determining whether the business community continues to advance the positive gains made over the last several years. Our mission is to ensure that private sector interests remain ahead of increased taxes and su!ocating govern-ment guidelines. Important reforms in the areas of job creation, education, stream-lining government and removing unnecessary regulations must remain top priorities for state leaders.

For these reasons, in 2012, ProgressPAC launched its new political advocacy and grassroots mobilization campaign named Carrying the Flag for Business. With the goal of raising $750,000 annually through 2014, the campaign will focus on combating anti-business special interests that routinely collect millions for political purposes, such as actively assaulting Alabama’s status as a right-to-work state, and supporting those elected o$cials who understand what it means to be pro-business.

ProgressPAC’s Carrying the Flag for Business campaign is supported in part by contributions to BCA’s annual Chairman’s Dinner, which in 2012 featured national political strategists Karl Rove and James Carville as guest speakers.

Carrying the Flag for Business is a 24/7/365 endeavor that will establish Pro-gressPAC’s fundraising and political resolve as never before, but be assured that the BCA Team is up to the task. ProgressPAC will continue to serve as the rallying point of the business community through the 2012 and 2014 election cycles.

APPENDIX


BCA FE D E R A L AD VO C AC Y 2011-2012

While much of this book is dedicated to our work at the State House in Mont-gomery, BCA is the state’s most powerful and e!ective advocate for business

and industry in the halls of Congress. Some of BCA’s federal advocacy during the past year is listed below:

Reauthorization of the Export-Import Bank• %e Ex-Im Bank, which dates back to the Roosevelt administration, provides

loans and other support for both large and small businesses to sell their products outside of the United States. %ese loans are generally considered to be more risky due to the volatility of the overseas marketplace.

• Without this legislation, the bank’s authority would have expired at the end of May, and U.S. companies, small and large, would have faced a serious disadvantage in foreign markets, threatening thousands of American jobs that depend on its crucial export &nancing.

• March 6, 2012 – %e Business Council of Alabama sent a letter to each member of Alabama’s congressional delegation urging their support for reauthorizing the Ex-Im prior to its charter expiring.

• March 28, 2012 - %e Business Council of Alabama joined more than 300 companies and associations in signing a letter, spearheaded by the National Association of Manufacturers, to congressional leadership urging the House and Senate to bring Ex-Im Bank reauthorization to a vote.

• May 7, 2012 - %e Business Council of Alabama and more than 180 chambers of commerce signed a letter spearheaded by the U.S. Chamber of Commerce urging the reauthorization of the Ex-Im Bank. %e letter was delivered to every member of Congress.

• May 11, 2012 - %e BCA, along with associations and manufacturers from across the country, joined the National Association of Manufacturers in a national print ad urging Congress to reauthorize the Ex-Im Bank. %e ad appeared in Politico, National Journal, CQ Today and Human Events.

• President Obama signed the reauthorizing legislation on May 30, 2012.

APPENDIX 201

Blocking EPA’s Utility MACT rule• %e Utility MACT rule would impose — by regulation — the most stringent

and costly clean air regulation that electric generation cooperatives and investor-owned utilities have ever faced, resulting in higher energy prices and forcing manufacturers to shed approximately 200,000 jobs.

• Under the EPA’s Utility MACT rule, the Mercury and Air Toxics Standards, coal- and oil-&red generating units must install and operate “maximum achievable control technology,” or MACT, by 2015 to prevent 90 percent of the sector’s mercury emissions.

• September 6, 2011 - %e Business Council of Alabama joined nearly 300 companies and associations, including the National Association of Manufacturers, in sending a letter to House and Senate leadership outlining broad support for the EPA Regulatory Relief Act of 2011 (H.R. 2250 and S. 1392). %is bipartisan legislation addresses business and manufacturers’ serious concerns regarding the Environmental Protection Agency’s (EPA) Boiler MACT rules, which place hundreds of thousands of jobs at risk, by providing facilities additional time to comply with the complex requirements of the rules and also providing direction and support for the EPA to use its discretion to add #exibility and make the rules achievable.

• December 9, 2011 - %e Business Council of Alabama joined more than 130 organizations from across the country in writing President Obama regarding the Utility MACT regulation. %e letter states that the Utility MACT rule “could cause signi&cant electricity reliability constraints that would have a ripple e!ect through our fragile economy, hurting businesses of all sizes.”

• June 8, 2012 – %e Business Council of Alabama signed a letter, spearheaded by the National Association of Manufacturers, along with 258 companies and associations from across the country, urging senators to support S.J. Res. 37, Resolution of Disapproval on the EPA’s Utility MACT (Maximum Achievable Control Technology) rule. S.J. Res. 37 would repeal the rule and allow the EPA to propose a more reasonable mercury regulation for power plants.

Passage of a multi-year transportation reauthorization bill• %e transportation and infrastructure reauthorization bill establishes the funding

mechanism through which the federal government pays its share of the cost of transportation repair and construction projects carried out by state and local governments.


• January 25, 2012 - In an open letter to Congress, the Business Council of Alabama joined more than 1,000 companies, organizations and chambers of commerce from all 50 states in calling for passage of a multi-year highway and transit bill this spring.

• January 2012 – %e Business Council of Alabama joined the Americans for Transportation Mobility Coalition, spearheaded by the U.S. Chamber of Commerce. %e coalition is a nationwide e!ort by business, labor, transportation organizations and concerned citizens to advocate for improved and increased federal investment in the nation’s aging and overburdened transportation system.

• June 29, 2012 - Following a four-month stalemate, congressional negotiators reached an agreement to extend federal highway funding for two years. President Obama signed the reauthorizing legislation on July 6, 2012.

Passage of the RESTORE Act• %e RESTORE Act would establish the Gulf Coast Restoration Trust Fund,

which would receive 80 percent of all administrative, civil and criminal penalties paid by responsible parties in connection with the Deepwater Horizon oil spill, together with any other appropriated funds.

• May 29, 2012 - %e Business Council of Alabama as part of a coalition of 115 leaders of Gulf Coast cities, municipalities, economic development organizations and chambers of commerce sent a joint letter to Congress urging passage of the RESTORE Act in conjunction with the &nalization of the transportation reauthorization bill now pending.

• %e letter stated, “%e economic and ecological restoration called for under the RESTORE Act will create needed private sector jobs while reclaiming vital natural and commercial assets that are unique to the Gulf Coast and critically important to the economic and environmental health of the nation.”

• Both the House and Senate approved versions of the RESTORE Act, and the conference committee on the transportation reauthorization bill included it in the &nal transportation reauthorization law signed into law by the president on July 6, 2012.

Passage of Fair Interstate Corporate Taxation Bill• %e Business Activity Tax Simpli&cation Act, H.R. 1439, would set a uniform

standard for state taxation of the income of non-resident companies, ending unfair, confusing and costly state corporate income taxation. If passed, the

APPENDIX 203

legislation would permit states to impose income-based taxes only on companies that have a physical presence in the taxing state. States would be prohibited from taxing the income of companies that solicit sales in the state. H.R. 1439 would not a!ect sales tax.

• February 29, 2012 – %e Business Council of Alabama joined more than 150 businesses, trade associations and taxpayer groups from across the country in sending a letter to House Speaker John Boehner and Democratic Leader Nancy Pelosi urging them to pass the Business Activity Tax Simpli&cation Act.

Passage of the Mobile Workforce State Income Tax Simplification Act• November 16, 2011 - %e Business Council of Alabama joined business

and associations from across the country in writing a letter in support of the Mobile Workforce State Income Tax Fairness and Simpli&cation Act, H.R. 1864. %e letter, spearheaded by the Council on State Taxation (COST), was sent to the chairman of the House Judiciary Committee, Lamar Smith, as well as to Howard Coble, the chairman of the House Subcommittee on Courts, Commercial and Administrative Law.

• As stated in the letter, “Every work day in our country, thousands of Americans travel outside their home state on business trips for temporary periods. Each state has its own set of requirements for &ling non-resident individual income tax returns and commensurate rules for employer withholding on those employees. Most individuals are not aware of the patchwork of non-resident state income tax &ling rules, and many employers are required to incur extraordinary expenses to comply with withholding requirements. …%e Mobile Workforce State Income Tax Simpli&cation Act of 2011 would establish fair, administrable and uniform rules to help ensure that the appropriate amount of tax is paid to state and local jurisdictions without placing undue burdens on employees and their employers.”

• HR 1864 passed the House on May 15, 2012 and awaits consideration in the Senate.

Reauthorization of the Workforce Investment Act• %e workforce skills gap has become an increasingly pressing issue for

manufacturers, who cannot &nd quali&ed workers to &ll positions.• %e bill includes industry-recognized credentials as a common performance

measure. • June 7, 2012 - %e House Committee on Education and the Workforce marked

up and passed H.R. 4297 by a vote of 23-15.


Continuation of Gulf oil exploration• %e Bureau of Ocean Energy Management (BOEM) recently approved Shell’s

exploration plan, one of the &rst approved following the lifting of the o!shore drilling moratorium in October 2010; however, some environmental groups sued to halt the permit. %e case is Defenders of Wildlife, et al. v. Bureau of Ocean Energy Management, et al. and Shell Gulf of Mexico, et al.

• December 2011 - %e Business Council of Alabama joined the U.S. Chamber of Commerce, the National Association of Manufacturers and 34 other industry groups in an amicus brief in support of an oil exploration permit for the Outer Continental Shelf (OCS) in the Gulf of Mexico. According to the brief, there is no legal basis for rejecting Shell’s exploration plan, which includes newly implemented safety measures, much less imposing a de facto moratorium on all further deepwater exploration and production by stopping or signi&cantly delaying new approvals for deepwater exploration in the Gulf.

Prevention of a Tax Hike on investment income • April 9, 2012 – %e Business Council of Alabama joined more than 87 trade

associations and chambers of commerce in signing a letter, spearheaded by the U.S. Chamber of Commerce, sent to every member of Congress calling for their support of S. 1647 and H.R. 3091, “%e Tax Hike Prevention and Business Certainty Act,” introduced by Sen. Michael Crapo (R-ID) and Rep. Peter Roskam (R-IL), respectively.

• %ese bills would maintain the top capital gains and dividends tax rates at 15 percent and prevent a massive tax increase that would have detrimental impacts on investment and jobs in the United States. Unless Congress acts by the end of 2012, the tax rate for capital gains will increase from 15 percent to 20 percent and the dividend tax rate will more than double from 15 percent to 39.6 percent. In addition, beginning in 2013, investment income will be subject to an additional Medicare Hospital Insurance tax of 3.8 percent, raising the top rate on capital gains to 23.8 percent and on dividend income to 43.4 percent, resulting in one of the largest tax increases in U.S. history.

Leaving politics out of federal contracting• April 25, 2012 - %e Business Council of Alabama joined a multi-industry

coalition of 154 associations and chambers of commerce, led by the U.S. Chamber of Commerce, in writing a letter in support of H.R. 2008, the Keeping Politics Out of Federal Contracting Act of 2011.

APPENDIX 205

• As stated in the letter, “H.R. 2008 is o!ered in response to a draft Executive Order under consideration by the Obama Administration and, if enacted, would preclude the White House from forcing federal agencies to require entities to disclose their political spending — as well as that of their o$cers and directors — as a condition of participating in the federal procurement process. … %e legislation would help ensure that political spending — or the lack thereof — continues to play no role in federal contracting decisions. %e legislation rea$rms the principle, currently embodied in federal procurement laws, that the Executive Branch has an obligation to procure goods and services based on the best value for the American taxpayer, and not on political considerations. “


BCA/PRO G RE S SPAC 2012 EN D O R S E D CA N D I D A T E S

In 2012, the board of directors of ProgressPAC announced the endorsements of the following state candidates:

Alabama Supreme CourtJudge Tommy Bryan - Place 1 Justice Lyn Stuart - Place 2 Justice Glenn Murdock - Place 3 Justice Jim Main - Place 4

Alabama Court of Civil Appeals Judge Craig Pittman - Place 1Judge Terri W. %omas - Place 2Judge Terry Moore - Place 3

Alabama Court of Criminal Appeals Judge Liles Burke - Place 2 Judge Michael Joiner - Place 3

Alabama Board of Education Tracy Roberts - District 1 Je! Newman - District 7

In 2012, the board of directors of the Business Council of Alabama announced endorsements of the following federal candidates:

United States House of Representatives Rep. Jo Bonner - District 1 Rep. Martha Roby - District 2 Rep. Mike Rogers - District 3Rep. Robert Aderholt - District 4Rep. Mo Brooks - District 5Rep. Spencer Bachus - District 6 Rep. Terri Sewell – District 7

APPENDIX 207

T H E PA R T N E R S H I P: BCA, CCAA WO R K I N G TO GE T H E R O N BE H A L F O F BU S I N E S S

In 1937, as Alabama teetered on the brink of recovery from the Great Depression, representatives of the chambers of commerce from the leading cities of Alabama

— Huntsville, Mobile, Dothan, Tuscaloosa, Anniston, Alexander City and Selma, along with utility and media representatives — met in Mobile to found what was originally known as %e Alabama Association of Commercial Organizations. %e intent of this group, as originally stated, was to “foster the commercial, industrial, and recreational welfare of the state…”

%is group of like-minded business and civic leaders maintained a loose associa-tion through the years, and in 1997, adopted the name Chamber of Commerce Association of Alabama (CCAA). In 1999, the volunteer leadership of CCAA saw the need to take CCAA from a volunteer-led organization to a professionally sta!ed group that would allow it to become more involved in events that would shape the future of Alabama’s business community. Ralph Stacy, former executive director of the Greenville Area Chamber of Commerce and past Chairman of CCAA, was named the CCAA’s &rst president and CEO and set about the task of bringing more than 120 local chambers across the state together to help form a true grassroots business network.

In 2003, William J. Canary accepted the post of president and CEO of the Busi-ness Council of Alabama (BCA). Since its formation in 1985 by the merger of the Alabama Chamber of Commerce and the Associated Industries of Alabama, BCA had always maintained contact with CCAA and supported the e!orts of local cham-bers. Canary saw the great potential that the more than 60,000 members of local chambers o!ered to the e!orts of BCA in the halls of government and set in motion a plan to formalize the relationship of the two organizations. In October 2003, an historic agreement was signed linking the two through %e Partnership.

In the nine years following the formation of %e Partnership, both groups have been able to &nd common ground on business issues that a!ect the men and women who make up Alabama’s business community. In addition to bringing local business leaders of all types together in the Leadership Exchange format, %e Partnership maintains contact during the legislative session through a series of conference calls with key BCA sta!, elected leaders and others involved in the political process to keep local chambers and their leadership up to date on business issues. %rough the Capital Brie!ng publication, members of %e Partnership receive a weekly update on the goings-on in Montgomery and Washington in a format that allows quick


distribution to their local members if so desired. %e Partnership has also coordi-nated trips to the State House for several chambers who wanted to visit with their local legislators.

%e mission of CCAA is “to build a better Alabama…through strong Chambers of Commerce.” %e Partnership, anchored by BCA’s unwavering support, helps bring that mission to reality. %at same spirit set forth in 1937 is still alive and well today in the form of %e Partnership.

APPENDIX 209

T H E PA R T N E R S H I P: JE RE M Y AR T H U R T O HE A D C H A M B E R O F CO M M E R C E

AS S O C I A T I O N O F AL A B A M A

April 9, 2012

The Board of Directors of the Chamber of Commerce Association of Alabama has named Jeremy Arthur, current president of the Prattville Chamber of

Commerce, as its new executive director. Arthur will assume the position in mid-May.

“We are extremely pleased and fortunate to have a person with the unique blend of experience and professional ability that Jeremy Arthur brings to the executive directorship of the Chamber of Commerce Association of Alabama (CCAA),” said William J. Canary, CCAA board member, and president and CEO of the Business Council of Alabama. %e BCA and the CCAA, through a unique relationship known as %e Partnership, together represent the interests of some one million working Alabamians through BCA’s member companies and over 120 local chambers of commerce. “We have known and enjoyed working with Jeremy for the past eight years at the Prattville Chamber,” said Canary, “and we look forward to working even closer in our new partnership on all matters important to our state in his new capacity at CCAA.”

Arthur brings several years of experience in chamber of commerce work to the CCAA job. In 2004, he was named executive vice president of the Prattville"Chamber, and subsequently was named president of the organization that has more than 875 members in one of the fastest-growing areas of Alabama. Before joining the chamber, he was an outreach research assistant for the Economic Development Institute at Auburn University. He holds a bachelor’s degree in political science, a master’s degree in public administration, and is a doctoral candidate in public administration and public policy, all from Auburn.

“I am excited about the new opportunity that awaits me,” said Arthur. “Under the leadership of CCAA Board Chairman Jan Wood and the entire CCAA Board of Directors, I look forward to helping achieve the CCAA’s goal of ‘building a better Alabama through strong chambers of commerce.’”

Arthur is a member of several national organizations, including the board of directors of the Auburn Alumni Association, the American Society for Public Administration and the American Chamber of Commerce Executives. He was also elected vice-chairman to the U.S. Chamber of Commerce Board of Regents


representing the Southeast Institute for Organization Management (IOM). He is an active member of numerous statewide organizations, including the board of directors of the CCAA and the Economic Development Association of Alabama, where he is currently serving on its Conference Committee."

APPENDIX 211

UPDATE: C H A N GE S T O AL A B A M A’S IM M I G R A T I O N LA W

On Friday, May 18, 2012, Governor Bentley signed HB658, which became Act 2012-491. %is Act makes signi&cant changes to Alabama’s immigration law

(HB56/Act 2011-535), which passed just one year ago. Several changes make com-pliance with the law less burdensome on businesses and employers, however, other changes make the penalties for noncompliance more harsh. %e following changes are now in e!ect:• Sworn a$davits from contractors and subcontractors are no longer required as a

condition for the award of any contract, grant or incentive by the state, county or municipal governments in Alabama.

• Section 9 (doing business with the state or any political subdivision) is modi&ed, and the prohibition on hiring any “unauthorized alien” is limited to employees “within the State of Alabama.”

• Contractors with state, county or municipal governments are no longer required to obtain proof of enrollment in E-Verify by subcontractors, however, prime contractors will still be required to provide documentation of their enrollment in E-Verify as a condition for the award of a contract, grant or incentive as de&ned in Section 9.

• %e following clause must be in all state, county and municipal contracts: • “By signing this contract, the contracting parties a$rm, for the duration

of the agreement, that they will not violate federal immigration law or knowingly employ, hire for employment, or continue to employ an unauthorized alien within the state of Alabama. Furthermore, a contracting party found to be in violation of this provision shall be deemed in breach of the agreement and shall be responsible for all damages resulting therefrom.”

• %e de&nition of a contract in Section 9 has been modi&ed: “a contract awarded by the state, any political subdivision thereof, or any state-funded entity that was competitively bid or would, if entered into by the state or an agency thereof, be required to be submitted to the Contract Review Permanent Legislative Oversight Committee.”• %is language is intended to describe a category or type of contract — and

not to only apply to contracts that are actually submitted to the State Legislature’s Contract Review Committee.


• %e type of contracts that must be submitted to the State Legislature’s Contract Review Committee are personal and professional services contracts (whether they are employment agreements or independent contractor agreements), unless the contracts are for insurance, are competitively bid, are entered into by a public corporation or authority, or are for less than $1,500.

• %e de&nition of BUSINESS ENTITY is modi&ed to include only those “employing one or more persons.” One of the practical impacts of this change is that a sole proprietorship, which has no employees, is no longer required to enroll in E-verify.

• STATE-FUNDED ENTITY is rede&ned to provide that “an entity that merely provides a service or a product to any governmental entity of the state or a political subdivision thereof, and receives compensation for the same, shall not be considered a state-funded entity.” %is eliminated confusing language that may have rendered a private party that was paid pursuant to a government contract a “state-funded entity.”

• SUBCONTRACTOR is rede&ned: “A person, business entity, or employer who is awarded a portion of an existing contract by a contractor, regardless of its tier.” %is language is designed to eliminate “collateral” companies (for example, the company that provides co!ee and soft drinks at the business’s headquarters) employed by a business from the de&nition of a “subcontractor.”

• %e right of a citizen or an alien lawfully present to bring a private action against an o$cial or head of an agency to enforce federal IS SOME TEXT OR WORD MISSING HERE? of Alabama immigration law has been eliminated. Instead, a person must &le a petition with the Attorney General (or appropriate local district attorney) requesting that he or she bring an action.

• In the section that prohibits courts from enforcing contracts between a party and an alien unlawfully present, an exemption has been provided. %is prohibition does not apply to contracts entered into prior to the e!ective date of the law, nor to contracts for legal services.

• %e de&nition of “public records transaction” has been modi&ed and limited to applying for or renewing a motor vehicle license plate, a driver’s license or nondriver identi&cation card, a business license, a commercial license or a professional license.

• Proof of citizenship is only required for initial public records transaction for United States citizens and lawful permanent residents. Veri&cation is not required for renewals.

APPENDIX 213

If you have any questions or would like more information regarding this legisla-tion, please contact:

Edward A. “Ted” HospMaynard, Cooper & Gale, P.C.


APPENDIX 215


APPENDIX 217


FOR IMMEDIATE RELEASE: TUESDAY, AUGUST 23, 2011

BCA TA K E S F I R S T S T E P TO W A RD F I N A L I Z I N G 2012 L E G I S L A T I VE A GE N D A

MONTGOMERY—%e Business Council of Alabama took its &rst step toward &nalizing its 2012 state legislative agenda with BCA committee members and legis-lative leaders during a two-day conference in Prattville last week. Known as “Com-mittee Leadership Days,” the two-day event consisted of meetings with the members of BCA’s seven policy committees to discuss the previous legislative session and submit a draft agenda for the 2012 legislative session. BCA’s &nal legislative agenda will be submitted to the BCA governmental a!airs committee in mid-October and is subject to approval later this year by the BCA board of directors.

“%e BCA has long worked toward accomplishing one stated goal — to provide Alabama’s business community an equal opportunity to make a case and seek sup-port for legislation we support and programs we believe are important,” said Wil-liam W. Brooke, chairman of the BCA Board of Directors and managing partner of Venture Capital for the Harbert Management Corporation.

%is year’s Committee Leadership Days coincided with the summer meeting of the Chamber of Commerce Association of Alabama, which allowed local chamber executives the opportunity to receive updates on issues the BCA will support in the next legislative session. Leaders from both the state House of Representatives and state Senate were also in attendance to provide an insider’s look at legislation passed last year and hear ideas for new pro-business legislation in 2012.

House Speaker Mike Hubbard and Senate President Pro Tem Del Marsh addressed the group at breakfast on %ursday, while Lt. Gov. Kay Ivey and Alabama Development O$ce Director Greg Can&eld delivered an update during a luncheon.

“%is is a great opportunity for legislative leaders to hear directly from BCA members about the job-creating policies we will be &ghting for in 2012,” said Carl Jamison, second vice chairman of the BCA board of directors and shareholder in the &rm Jamsion Money Farmer, P.C. “%is was the &rst year we invited legislators to attend our committee meetings, and it provided a great opportunity to have an open dialogue on how to grow jobs in Alabama.”

In addition to BCA’s Governmental A!airs Committee, the seven policy com-mittees that met in Prattville were: Education and Workforce Preparedness, Envi-ronment and Energy, Health, Judicial and Legal Reform, Small Business, Tax and Fiscal Policy and Labor and Employment.

APPENDIX 219


FOR IMMEDIATE RELEASE: FRIDAY, OCTOBER 28, 2011

U.S. C H A M B E R HO N O R S BCA W I T H T H E 2011 O U T S T A N D I N G OR G A N I Z A T I O N AW A RD

MONTGOMERY—%e Business Council of Alabama received the 2011 Out-standing Organization Award by the U.S. Chamber Institute for Legal Reform for its continuing contributions to the legal reform movement in Alabama.

“We’re thrilled to honor the Business Council of Alabama with our Outstand-ing Organization Award,” said Lisa Rickard, president of ILR. “%e BCA has been a partner to ILR in our legal reform e!orts for many years, and its work this year was instrumental to passage of important legislation that will make Alabama more competitive for businesses and job growth.”

BCA Chairman William Brooke, managing partner for Harbert Management Corporation, was on hand to accept the award. “%e legal reform movement in Alabama has been a decades long quest to strengthen the economy and help create jobs,” Brooke said following the award presentation. “%is recognition is due to the support of the entire business community and most importantly those elected o$-cials in Alabama who had the courage to support legal reform.”

%ose principally responsible for the passage of the legal reform bills in the 2011 legislative session were: Governor Robert Bentley, who signed the bills into law; Speaker of the House Mike Hubbard and Senate President Pro-Tempore Del Marsh; Judiciary Committee Chairs Sen. Cam Ward, Sen. Ben Brooks and Rep. Paul Demarco; and bill sponsors Sen. Clay Sco&eld, Rep. Wes Long, Rep. Greg Can&eld, Rep. Ron Johnson and Rep. Steve McMillan.

For almost two decades, tort reform was a priority of the BCA; however, it was not until the 2010 election of a pro-business legislature that tort reform became a reality.

%e annual Legal Reform Awards honor individuals and organizations whose work has contributed to the e!orts to make America’s civil justice system simpler, fairer and faster for everyone. %e BCA is the exclusive a$liate for the U.S. Cham-ber of Commerce in Alabama.

%e Business Council of Alabama is Alabama’s foremost voice for business. %e BCA is a non-partisan statewide business association representing the interests and concerns of nearly one million working Alabamians through its member companies and its partnership with the Chamber of Commerce Association of Alabama. BCA is Alabama’s exclusive a$liate to the U.S. Chamber of Commerce and the National Association of Manufacturers.

APPENDIX 221


FOR IMMEDIATE RELEASE: MONDAY, FEBRUARY 6, 2012

BCA AD VO C A T I N G F O R JO B CRE A T I O N, ED U C A T I O N RE F O R M I N 2012 S E S S I O N

MONTGOMERY—As the Alabama Legislature convenes in Montgomery this week for the 2012 session, the Business Council of Alabama is prepared to move for-ward in supporting legislation that will help existing industries hire, reduce regula-tory burdens on business, and fundamentally reform education. Following approval of the 2012 BCA State Legislative Agenda by the board of directors last December, the BCA presented a clear message: Support policies that will boost private sector job growth and create a world-class education system.

“When existing businesses are successful and hire more people, the education trust fund grows, and we are able to provide more opportunities for our students,” said BCA President and CEO William J. Canary. “We must also support education policies that allow for new and innovative ways to teach our children. %e status quo is no longer an option. Our children and teachers deserve better.”

Legislative leaders last November presented an ambitious job creation agenda that would allow the governor and the Alabama Development O$ce to use new incentives not only to recruit new companies to Alabama, but to continue to help those already doing business in the state. Another proposal, the Regulatory Reform Act, will require state agencies to prepare an economic impact analysis as well as a regulatory #exibility analysis before the adoption of any regulation that may adversely impact small businesses.

As businesses are the number one consumer of the product of education, the BCA will aggressively advocate for much needed education reforms. Providing local school districts with increased #exibility and giving parents more options to educate their children will be top priorities. %e BCA will support initiatives to give parents more education options when a school is under-performing or operating in under-served areas of the state.

Since Alabama’s new immigration law was introduced in the 2011 legislative ses-sion, BCA has worked to lead the e!ort to clarify the law so that Alabama employ-ers, who employ legal and documented workers, can fully comply without being

overburdened with the bureaucratic process and without fear of unintentionally violating the law. In setting up an Alabama business roundtable, the BCA brought together business leaders from across the state to meet with legislative leaders to address any unnecessary penalties for those businesses that have always been com-mitted to following the law.

“During the last legislative session, many pro-business items that have been a part of our legislative agenda for several years were enacted,” said Anita L. Archie, BCA senior vice president for intergovernmental a!airs.

“We are excited that Governor Bentley and the legislative leadership will keep the momentum this session by promoting job creation and education reform issues. BCA will continue to lead the e!ort in &nding solutions to improve Alabama’s econ-omy.”


APPENDIX 223


FOR IMMEDIATE RELEASE: TUESDAY, FEBRUARY 21, 2012

BCA S T A T E M E N T O N PS E U D O E P H E D R I N E BI L L (HB 88)

MONTGOMERY— BCA President and CEO William J. Canary released the fol-lowing statement today regarding HB 88, more commonly referred to as the Pseu-doephedrine Bill:

“%e proposed legislation (HB 88) would require individuals to obtain a pre-scription for products containing common cold and allergy remedies such as pseu-doephedrine, ephedrine and phenylpropamine, in an e!ort to combat the manufac-turing of methamphetamine. While the BCA recognizes the critical need to elimi-nate meth labs in Alabama,"requiring all employees to take time o! work to visit their physician to obtain a prescription for common cold and allergy medications would result in increased employee health care costs and reduced worker productiv-ity. We look forward to supporting legislation being proposed and introduced by Sen. Holtzclaw and Rep. Galliher that will contain health care costs while ensuring we all engage in the &ght against meth production in Alabama.”


APPENDIX 225

FOR IMMEDIATE RELEASE: WEDNESDAY, MARCH 14, 2012

BCA S T A T E M E N T I N S U P P O R T O F ED U C A T I O N OP T I O N S AC T O F 2012

MONTGOMERY—In keeping with the Business Council of Alabama’s commit-ment to establishing and working with an Alabama business-education alliance, BCA President and CEO William J. Canary released the following statement this morning after Gov. Robert Bentley, Speaker of the House Mike Hubbard and Senate President Pro Tem Del Marsh announced their education initiative, the Education Options Act of 2012:

“Education options and #exibility equal more success for our children. %e Busi-ness Council of Alabama is proud to support this historic education package that &nally will provide parents more options to improving the education of their chil-dren while at the same time allow teachers more #exibility for classroom instruc-tion. Businesses are the number one consumer of the product education, and when Alabama adopts this legislation, the dropout rate will decline, more students will be prepared to enter the workforce, and our economy will grow.”



FOR IMMEDIATE RELEASE: WEDNESDAY, APRIL 11, 2012

BCA IS S U E S S T A T E M E N T O N PRO P O S E D C H A N GE S T O IM M I G R A T I O N LA W

MONTGOMERY—%e Business Council of Alabama, along with other business groups and chambers of commerce, has continued to stress that Alabama’s immigra-tion law needs to be clear and unambiguous so that businesses can easily comply with the law and focus on what they do best: creating jobs. BCA President and CEO William J. Canary released the following statement today after the start of a public hearing on HB 658, which would change Alabama’s immigration law previously known as HB 56:

“%e intent of the immigration law was never to make it di$cult for businesses to comply and burden businesses with unnecessary red tape. %ese changes, while not perfect, are a much-needed step in the right direction and will allow businesses to clearly comply with both federal and state immigration law. We will work actively for the passage of HB 658, urging our member companies to voice support for these necessary changes in the law.”


APPENDIX 227

FOR IMMEDIATE RELEASE: FRIDAY, MAY 18, 2012

BCA AP P L A U D S GO VE R N O R F O R S I G N I N G IM M I G R A T I O N BI L L

“We are grateful Gov. Bentley has signed HB 658. %e intent of the immigration law was never to make it di$cult for businesses to comply and burden businesses with unnecessary red tape. %ese changes, while not perfect, are a much-needed step in the right direction and will allow businesses to clearly comply with both federal and state immigration law. We actively worked for passage of HB 658 in its &nal form, urging our member companies to voice support for these necessary changes in the law,” said BCA President and CEO William J. Canary.



CO A L I T I O N AI M S T O S C R A P ME T A L T H E F TBy William Canary

When most people hear of metal theft, images of ransacked air conditioner units typically come to mind. However, with the price of scrap metal sky-

rocketing and the economy still fragile, criminals are becoming increasingly creative — and daring — in their attempts to steal metal and make quick money by selling the items to scrap yards.

Across the country, incidents of copper wire being stripped from utility poles, interrupting phone and Internet service and rendering tra$c signals and lights dark, are all too common. Here in Alabama, copper thieves burned down the city of Bir-mingham’s Christmas tree in 2010. Students across Alabama have endured swelter-ing classrooms after copper was stripped from air conditioning equipment at their schools. Last summer, more than 165 pounds of copper AT&T telephone wiring in Birmingham was stolen in one week, helping Alabama to earn the dubious distinc-tion as the nation’s leader in the theft of copper telephone cable.

From churches and schools to hospitals, cemeteries, farms and even our own homes, metal theft a!ects all of us. It is a growing threat to public safety, our quality of life and electricity delivery and reliability.

Over the past several years, theft of metals such as steel, copper and aluminum has grown at an alarming rate, costing the national economy $1 billion per year. According to the Department of Energy, scrap copper in 2011 sold for &ve times the amount it went for in 2002, making it an attractive target, especially during these di$cult economic times.

To combat this growing epidemic, the Business Council of Alabama’s Manufac-turing Advocacy Council, a select group of BCA members representing Alabama’s manufacturing industry, has made passage of a stronger metal theft law in Alabama a priority.

%e BCA’s Manufacturing Advocacy Council is proud to be part of a broad coalition of business and manufacturing leaders, energy providers, law enforce-ment, municipalities, churches, scrap recyclers and lawmakers who have come together over the last several months to put forward tough new legislation to further strengthen Alabama’s current metal theft laws.

%e proposed bill would tightly restrict the purchase of scrap metal in Alabama by reducing the amounts of cash purchases to less than $50 for most metals. %e legislation would limit the hours for scrap buyers to make purchases, require recy-clers to submit an electronic record of each purchase on the day of the transaction

APPENDIX 229

and establish proof of ownership to purchase certain metal property. In addition, the bill would increase penalties if the crime puts the health and safety of the public, property owners’ employees, &rst responders, law enforcement or utility workers in imminent danger.

%e scrap recycling industry is a critical component of the U.S. economy, a key link in the manufacturing supply chain and a leader in job creation.

%e simple truth is this: Metal theft is not a problem exclusive to the scrap recy-cling industry or law enforcement. It is a threat to all Alabamians. We are encour-aged that in the upcoming session the Alabama Legislature this package of tougher restrictions and penalties for metal theft will be considered.

William J. Canary is president and CEO of the Business Council of Alabama. "e BCA is a non-partisan statewide business association representing the interests and con-cerns of nearly one million working Alabamians through its member companies and its partnership with the Chamber of Commerce Association of Alabama. BCA is Alabama’s exclusive a#liate to the U.S. Chamber of Commerce and the National Association of Manufacturers.

231

The Business Advocate / 1

A publication of the Business Council of Alabama

Volume 2 | Issue 6


BCA Chairman Looks Beyond Himself to

Serve Others

William W. BrookeEducation:

Professional:

Civic:

By Lenore Reese Vickrey


2 / The Business Advocate


Will and Maggie Brooke often travel overseas to countries such as Cambodia to work in cross-cultural ministry opportunities

233

The Business Advocate / 3


Will Brooke has always dreamed of a better Alabama. At BCA he has led a movement that has awakened our entire state. When I think about Will Brooke’s leadership, I am reminded of something I once heard about another great leader of our time: ‘Excellence is never an accident; it is the result of high intention, sincere effort, intelligent direction, skillful execution and the vision to see obstacles as opportunities.’

— William Canary, BCA President and CEO


4 / The Business Advocate


BCA honors officials and spotlights business-education allianceRetired general inspires with “plywood leadership”

remarks at Governmental Affairs Conference

BCA honored Gov. Robert Bentley, below, with its2011 Spirit of Leadership Award at its Governmental Affairs Conference in Pt. Clear. Senate President Pro Tem Del Marsh and House Speaker Mike Hubbard, left, were given the Advocate for Progress Leadership Award, and several legislators, top, were named Advocates for Progress for their pro-business stance during the 2011 legislative session. Former U.S. Secretary of State Margaret Spellings, right, commended BCA for beginning a business-education alliance, telling the audience of nearly 400 persons, “The folks who are moving the needle and making a difference are the ones who have such an alliance.” BCA Senior Vice President Anita Archie, below right, spoke at the Sunday morning inspirational service. Keynote speaker, bottom left, was retired Army General Stan McChrystal, who inspired the audience with his remarks on “plywood leadership”. See more conference photos and coverage at www.bcatoday.org.

235

November 2011 Business Alabama / 49


Volume 2 | Issue 7


Nation’s 43rd President Headlines Annual BCA Chairman’s Dinner


Former President George W. Bush talks about the principles

that guided his presidency at BCA’s Chairman’s Dinner.


50 / Business Alabama November 2011

Former President George W. Bush speaks before a packed house at the Sheraton

Birmingham, site of BCA’s annual Chairman’s Dinner, in September.


Chairman Challenges BCA to Honor the Privilege of Leadership

237

November 2011 Business Alabama / 51


BCA o!cers and select members chat with the former President

in a private roundtable meeting before the evening’s festivities.

BCA Chairman Will Brooke asks the former president

questions following his address to the crowd. “It’s

no sacrifice to serve a nation you love,” he said.

“It’s an honor.”

BCA Senior Vice President Anita Archie recognizes elected o!cials.

BCA President and CEO William Canary welcomes guests.




Former Governor Bob Riley Receives 2011 BCA Chairman’s Award

239



Former Governor Bob Riley Receives 2011 BCA Chairman’s Award

The Manufacturing Advocate / 1Published in Business Alabama Published in Business Alabama


Volume 1 | Issue 2

A D V O C AT EThe manufacturing

BCA’s Manufacturing Advocacy Council Visits the NAM, Briefs Congressional Delegation

By Nancy Wall Hewston

The NAM’s President and CEO Jay Timmons speaks to BCA’s

Manufacturing Advocacy Council members after receiv-

ing the BCA’s 2011 “Building a Better Alabama” award,

which was presented by House Speaker Mike Hubbard. BCA 2nd Vice Chair Carl Jamison,

BCA Federal A!airs Commit-tee Chair Suzanne Respess and

MAC member Denson Henry look on.

BCA’s Manufacturing Advocacy Council Visits the NAM, Briefs Congressional Delegation

By Nancy Wall Hewston


2 / The Manufacturing Advocate Published in Business AlabamaPublished in Business Alabama

By Jay Timmons, president and CEO, National Association of Manufacturers

Leading the Charge for Manufacturing in Alabama

T h e M a n u f a c t u r i n g A d v o c a t e

After he was presented the 2011 Gov. Bob Riley “Building a Better Alabama” award, the NAM’s president and CEO Jay Timmons (center) was joined by (from left) BCA 2nd Vice Chairman Carl Jamison, BCA 1st Vice Chairman Terry Kellogg, House Speaker Mike Hubbard, and BCA President and CEO William J. Canary.

241

Published in Business Alabama The Manufacturing Advocate / 3Published in Business Alabama Published in Business Alabama

U.S. Rep. Terri Sewell met with members of the MAC in the U.S. Capitol. Pictured (l to r) are: Congresswoman Sewell, MAC co-chair Ronnie Boles, Sewell’s chief of sta!, Nichole Reynolds, and BCA Senior Vice President for Intergovernmental A!airs, Advocacy and Communications/Legal Advisor Anita L. Archie.

(From left) Ronnie Boles, Ray Perez, Carl Jamison, Speaker Mike Hubbard and Denson Henry visit with U.S. Rep. Martha Roby in the U.S. Capitol.

Jim Proctor, Speaker Mike Hubbard, Terry Kellogg, Carl Jamison, Suzanne Respess, Dick Anderson, and U.S. Reps. Robert Aderholt and Martha Roby listen as U.S. Rep. Jo Bonner updates MAC members on what is happening in Congress.

BCA President and CEO William J. Canary and MAC member Denson Henry listen as U.S. Sen. Je! Sessions visits with BCA’s MAC members in the U.S. Capitol.

U.S. Reps. Mike Rogers and Jo Bonner briefed the MAC delegation. Also pictured from left: Mike Sharp, legislative director for Bonner, Stephen Davis, National Security Advisor for U.S. Rep. Mo Brooks, and Suzanne Respess, chair of BCA’s Federal A!airs Committee.



4 / The Manufacturing Advocate Published in Business Alabama

TOP LEFT: MAC co-chair Doug Mannion of Rheem Water Heat-ing in Montgomery chats with BCA Senior Vice President for Intergovernmental A!airs, Advo-cacy and Communications/Legal Advisor Anita L. Archie.TOP RIGHT: BCA President and CEO William J. Canary visits with Jay Timmons, president and CEO of the NAM in Washington.RIGHT: Right: U.S. Reps. Robert Aderholt and Martha Roby as well as U.S. Sen. Je! Sessions visit with members of the MAC in the U.S. Capitol.BOTTOM LEFT: BCA 2nd Vice Chair Carl Jamison (left) and MAC member Dick Anderson listen to policy briefings by several NAM experts at their headquarters in Washington D.C.MIDDLE LEFT: Jay Timmons, president and CEO of the NAM, talks with Ronnie Boles, MAC co-chair and board member of the NAM.

Ronnie Boles, co-chairman

Doug Mannion, co-chairman

Dick Anderson

George Flowers

Denson Henry

Greg Leikvold

Mac McBride

Joe Pampinto

Ray Perez

James Proctor II

Joe Rella

Ken Tucker

Barry Whatley

W. Michael BaileyPresident

Mark Brazeal, President

Jim Byard, Director

Ed Castile, Director

Freida Hill, Chancellor

Jeff ThompsonExecutive Director

BCA’s Manufacturing Advocacy Council


243

January 2012 Business Alabama / 59


Volume 3 | Issue 1



BCA Elects 2012 Officers, Board; Outgoing Chairman Cautions Group to Stay on Its Toes

2011 BCA Chairman Will Brooke and BCA President and CEO William Canary chat with Major Garrett. Above: Garrett brings political

insights to the BCA Annual Meeting.


60 / Business Alabama January 2012

Mobile/Baldwin District:Cathy Anderson-Giles, Owen Bailey, Joseph Busta, Carol Gordy, Winthrop Hallett, Sheila Hodges, Erik Johnsen, Robert “Bubba” Lee, Harris Morrissette, Joe Rella, Sandy Stimpson, Charlie Story, Donna Watts, J.M. “Margie” Wilcox, Cheryl Smiley Williams.

Selma/Southwest Alabama District: Denson Henry, Frances Turner.

Montgomery Area District: Bill Barranco, Fred Blackwell, Steve Cawood, Frank Filgo, Randall George, Jack Hawkins, Mark Hope, Horace Horn, Doug Mannion, Cameron Martindale, Caroline Novak, Russ Tyner, J. Cameron West, Jan Wood, Alan Worrell.

Auburn/East Alabama District: Paul Cocker, Ab Conner, Susan Foy, Eddy Kilman, Robert Powers, Lolly Steiner, John Russell Thomas.

Dothan/Southeast Alabama District: Bill Brunson, George Flowers, Charles Nailen, Steve Roy.

Tuscaloosa/Jasper District: Carl Jamison, Bryan Kindred, Greg Leikvold, Linda Lewis, Tim Parker, Markus Schaefer.

Birmingham Area District: Freda Bacon, Eason Balch, William Brooke, Terrance Brown, Robert Campbell, Karen Carter, Shane Clanton, William Dow, Garry Neil Drummond, Fournier Gale, Brian Hilson, Terry Kellogg, Debbie Long, Douglas Markham, Fred McCallum, Mary Sue McClurkin, Charles McCrary, Jeff Miller, Bill Morton, Ron Perkins, Greg Powell, James Proctor, Suzanne Respess, Van Richey, Walter Scheller, Stephen Still, Michael Thompson, Donta Wilson.

Anniston/Gadsden District: Dick Anderson, Gregory Brown, Patricia King, Tim McCartney, Ray Perez.

Huntsville Area District: Ronnie Boles, Jim Bolte, Philip Dotts, Ken Tucker, Rick Roden.

Decatur/Cullman District: Jim Fincher, Kirk Mancer, Donald Morgan, John Seymour.

Shoals/Northwest Alabama District: Martin Abroms, Steve Holt, David Muhlendorf.


BCA Adds 21 New Members to Board of Directors

245

January 2012 Business Alabama / 61

BCA Chairman Will Brooke asks the former president

questions following his address to the crowd. “It’s

no sacrifice to serve a nation you love,” he said.

“It’s an honor.”


Magic Moments recipient of BCA holiday gift

Pam Jones of Magic Moments accepts check from BCA Chairman Will Brooke

Boys and Girls Clubs of Central Alabama President and CEO Tom Cleckler and Development Director Kim Turner accept a check from BCA Chairman Will Brooke. BCA annually makes a donation to its outgoing chairman’s favorite charity. Brooke’s wife, Maggie, has on the Boys and Girls Club board of director for several years and he commended the group for its work in providing positive adult relationships and scholarships to young people who “would have probably fallen through the cracks.”

John Seymour, Rick Roden and Susan Foy visit before BCA-CCAA joint meeting; Mark Wnuk and Lynn Cox of the Montgomery Regional Airport and Jeremy Arthur, president of the Prattville Area Chamber of Commerce.


62 / Business Alabama January 2012


Harris Morrissette, China Doll Rice and Beans; Steve Still, Maynard, Cooper & Gale P.C.; Ron Perkins, Doozer Software; Greg Powell, fi-Plan Partners; Charles Nailen, BBG Specialty Foods/Taco Bell; Dick Anderson, Huron Valley Steel; Owen Bailey, USA Children’s and Women’s Hospital; Denson Henry, Henry Brick Company; Sandy Stimpson, Scotch & Gulf LumberThose not pictured: Doug Mannion, Rheem Water Heating; Bob Powers, Eufaula Agency Inc.

Board members taking BCA to “Next Level”

247


249


251

253

2 /

Business Council of AlabamaVolume 3 | Issue 4


2012 Session Yields Positive Legislation for Business

Immigration

House Speaker Mike Hubbard and legislators discuss key legislation that passed during the 2012 session,

which he termed a “major success.”


/ 3

2012 Session Yields Positive Legislation for Business


Unemployment Compensation Law Changes

Metal Theft

Single Point of Filing

Charter School Legislation to Return Next Year

Marty Abroms, chairman of BCA’s Tax and Fiscal Policy Committee, addresses legislative committee

255

/ 1

Volume 2 | Issue 1

BCA, ATN Honor Alabama’s 2012 Manufacturers of the Year

Alabama Attorney General Luther Strange delivered this year’s keynote address.

Celebrating Alabama’s 2012 Manufacturers of the Year are (from left): William Canary, BCA president and CEO; Michael Bailey, ATN president; Anita Archie, BCA senior vice president of intergovernmental a!airs, advocacy and communications/legal advisor; Dee Dee Bonner, Aus-tal manager of state legislative a!airs, events and protocol; Donald Keeler, Austal vice presi-dent of human resources; David Hendrixson, Daikin America vice president and plant manager; Emmanuel Boullay, plant manager for Cascades Sonoco’s Birmingham operations; Steven Marimberga, quality manager for Cascades Sonoco; and Carl Jamison, BCA 1st vice chairman.


A D V O C AT EThe manufacturing


2 /


Governor Bob Riley “Building a Better Alabama” Award U.S. Rep. Jo Bonner, R-Mobile

2012 Partnership Award Rheem Manufacturing, Montgomery

The BCA Centennial Award Alabama Steel Supply, Birmingham

Best of the BEST Award Davidson High School, Mobile

2012 Sustainability in Manufacturing AwardZF Industries, Tuscaloosa

Thank you to our sponsors

257

/ 3


1. More than 225 people attended this year’s Manu-facturer of the Year Awards luncheon.

2. The 2012 Governor Bob Riley “Building a Better Alabama” Award recipient is U.S. Rep. Jo Bonner (R-Mobile). Due to scheduled votes in Washing-ton, Congressman Bonner accepted the award via video from the U.S. Capitol. Pictured: Carl Jamison, BCA 1st vice chair, Anita Archie, BCA senior vice president, and William Canary, BCA president and CEO, present Eliska Morgan, Congressman Bonner’s deputy chief of sta!, with the award.

3. The Business Council of Alabama acknowledged BCA member company, Alabama Steel Supply, on its 100th year. The Centennial Award recog-nizes those companies that have achieved this great milestone of creating and sustaining jobs for generations of Alabama families. BCA’s Anita Archie and William Canary present Alabama Steel Supply’s Marc Labovitz and Jerald Labovitz with the 2012 Centennial Award.

4. BCA’s 1st Vice Chair Carl Jamison presented Rheem Manufacturing’s Peter Reynolds with the 2012 Partnership Award, which recognizes excel-lence in manufacturing, exemplary leadership in service to community, job creation and being an outstanding example of a corporate steward throughout Alabama. With three facilities in Montgomery, Rheem is one of the region’s largest manufacturers.

5. Students from Mobile’s Davidson High School were recognized for achieving the highest in the 2011 Alabama BEST Robotics competitions. The BEST Robotics Inc. is designed to excite and inspire students about engineering, science and technol-ogy careers through participation in a sports-like competition. Pictured are (l to r): Michael Bailey, ATN president; William Canary, BCA president and CEO, George Blanks, executive director of BEST Robotics, Inc.; Anita Archie, BCA senior vice president of intergovernmental a!airs, advocacy and communications/legal advisor; Justin Poiroux, BEST student; Lucas Donivan, BEST student; Rohan Palanki, BEST student; Zack Brewer, DHS teacher; Mike Fletcher, DHS teacher; Delaney Thull, BEST student; Carl Jamison, BCA 1st vice chair; Jenny Parker, DHS teacher; and Robin Fenton, Jubilee BEST Robotics hub director.

1

2

3 4

5


4 /


Ronnie Boles, co-chairmanGeneral & Automotive Machine ShopHuntsville

Doug MannionRheem Water HeatingMontgomery

Dick AndersonHuron Valley Steel CorporationAnniston

George FlowersCox Swimming PoolsDothan

Denson HenryHenry Brick CompanySelma

Greg LeikvoldBF Goodrich Tire ManufacturingTuscaloosa

Mac McBrideSteris CorporationMontgomery

Joe PampintoWise Alloys, LLCMuscle Shoals

Ray PerezHonda Manufacturing of Alabama, LLCLincoln

James Proctor IIMcWane, Inc.Birmingham

Ken TuckerThe Boeing CompanyHuntsville

Barry WhatleyCraftmaster Printers, Inc.Auburn

Ex Officio MembersW. Michael BaileyPresidentAlabama Technology Network

Mark BrazealPresidentAlabama Automotive Manufacturers Association

Jim ByardDirectorAlabama Department of Economic and Community Affairs

Ed CastileDirectorAlabama Industrial Development Training Institute

Susan PriceInterim Chancellor Alabama Community College System

Jeff ThompsonExecutive DirectorAlabama Aerospace Industry Association

BCA’s Manufacturing Advocacy Council

Left: BEST Robotics students Justin Poiroux and Lucas Donivan demon-strate Davidson High School’s winning robot from the 2011 BEST Robotics competitions as their teacher Mike Fletcher discusses the program with the BCA’s Manufacturing Advocacy Council at the June meeting.

Above: MAC members Ken Tucker of The Boeing Company, Barry What-ley of Craftmaster Printers, Inc., Ray Perez of Honda Manufacturing of Alabama, LLC, Ed Castile, director of the Alabama Industrial Development Training Institute, Michael Bailey, ATN president, Dick Anderson of Huron Valley Steel Corp., and Mark Brazeal, president of the Alabama Automo-tive Manufacturers Association, were in attendance at the June 2012 meet-ing of BCA’s Manufacturing Advocacy Council.

259

/ 5


Above: Donald Keeler, Austal USA vice president of human resources, accepted the 2012 Large Manufacturer of the Year Award on behalf of Austal USA. Alabama Attor-ney General Luther Strange, ATN President Michael Bailey, representing the 2011 Large Manufacturer of the Year Hyundai Motor Manufacturing Alabama, Hyundai’s Vice President of Production Ashley Frye, and BCA President and CEO William Canary presented the award.

Large Manufacturer of the Year

2012 Large Manufacturer of the Year


6 /


Medium Manufacturer of the Year

Daikin America’s David Hendrixson, vice president and plant manager (center with award) accepted the 2012 Medium Manufac-turer of the Year on behalf of Daikin America. Also pictured (l to r) are: William Canary, BCA president and CEO; Michael Bailey, ATN president; Val Ray, Dakin America director of operations, Forrest Keith, Daikin America community relations and general a!airs man-ager; Anita Archie, BCA senior vice president of intergovernmental a!airs, advocacy and communications/legal advisor; and Carl Jamison, BCA 1st vice chair.

2012 Medium Manufacturer of the Year

261

/ 7


Sen. Trip Pittman addresses the Tax and Fiscal Policy Com-mittee; below, Committee Chairman Marty Abroms discusses

the agenda as BCA sta! member Victor Vernon looks on.

Steven Marimberga (second from right), quality manager for Cascades Sonoco, and Emmanuel Boullay (far right), plant manager for Cascades Sonoco’s Birmingham opera-tions, accepted the 2012 Small Manufacturer of the Year Award on behalf of Cascades Sonoco. BCA President and CEO William Canary, Curtis Lewey of Applied Chemical Technology, the 2011 Small Manufacturer of the Year, ATN President Michael Bailey and Alabama Attorney General Luther Strange presented the award.

Small Manufacturer of the Year

2012 Small Manufacturer of the Year


8 /


263

I NDEXAA.J. McCampbell 98Ab Conner 244Advocate for progress

Leadership award 97A!ordable Care Act (ACA)

128, 129,130,156,Aircraft 10, 67, 90, 111, 190,

255Alabama Administrative

Procedures Act 132Alabama Automotive

Manufacturers Association (also AAMA) 258

Alabama Cable Telecommunications Association 66, 76

Alabama Community College System 242, 258

Alabama Council on the Arts 35

Alabama Criminal Justice Information Center 43, 177, 188

Alabama Data Processing Center Economic Incentive Enhancement Act 93

Alabama Democratic Conference 28

Alabama Department of Commerce 10

Alabama Department of Economic and Community A!airs (also ADECA) 158

Alabama Department of Environmental Management (also ADEM) 57

Alabama Department of Homeland Security 26

Alabama Department of Postsecondary Education 56

Alabama Department of Public Safety 4

Alabama Department of Revenue 61, 110, 118, 154, 165, 186-7, 189

Alabama Department of Transportation (ALDOT) 69

Alabama Development O#ce 2, 9-11, 39-40, 77, 93, 218, 222

Alabama Economic Alliance 3

Alabama Education Association 12, 27, 41, 85, 87, 232

Alabama Environmental Management Commission 92

Alabama Ethics Commission 157

Alabama Health Insurance Exchange 156

Alabama Industrial Development Training Institute (also AIDT) 242, 258

Alabama Job Creation and Retention Act 9, 19, 39, 78

Alabama Math, Science and Technology Initiative (AMSTI) 42

Alabama Power iv, 41, 98Alabama Railway Association

66, 76Alabama Reading Initiative

(ARI) 5, 42, 56Alabama Retail Association

61, 66, 76, 110, 118, 154, 165, 187

Alabama River Alliance 143Alabama Roadbuilders

Association 189Alabama School Board

Association 127

Alabama School Readiness Alliance 51

Alabama School Superintendents Association 87

Alabama Society of Certi$ed Public Accountants 66, 76

Alabama State Board of Education 56,87,152,174,

Alabama State Board of Pharmacy 47

Alabama Steel Supply 256-7Alabama Tax Appeals

Commission (also ATAC) 46, 61

Alabama Taxpayers’ Bill of Rights II 61

Alabama Technology Network (also ATN) 255

Alabama Trucking Association 66, 76

Alan Baker 10, 20, 194Alan Boothe 143Alan Harper 20Alan Worrell 244Albert Garrett 244Allen Farley 20Allen Treadaway 21Alternative-minimum tax

(AMT) 29American Energy and

Infrastructure and Jobs Act 16,30

Americans for Transportation Mobility Coalition 30, 84, 202

Amy Bishop 62Andrew Carnegie viiAnita Archie 234, 237, 253,

255, 257, 260Annual Meeting 243Applied Chemical Technology

261April Weaver 21, 35


Arthur Orr 34, 37, 57, 92, 97, 121, 129, 143, 149, 162, 194

Ashley Eiland 52, 244Ashley Frye 259AT&T Alabama 243Attorney General 102, 106,

125, 157, 178, 195, 212, 255, 259, 261

Auburn University 13, 113, 209, 256

Austal USA 102, 242, 255, 259

Autism 168, 193

BBarbara Boxer 159Barbara "ompson 127Barry Mask 9, 19, 21, 39, 76,

93, 119, 131, 175Barry Moore 21, 158Barry Whatley 52, 242, 244,

258BCA vii-ix, 14-16, 31-7,

55-68, 78-87, 94-7, 110-15, 133-42, 152-5, 167-9, 177-81, 183-9, 218-29, 231-46, 253-62

BCA Education and Workforce Preparedness Committee 197, 219

BCA Environment and Energy Committee 197, 219

BCA Federal A!airs Committee 16, 144, 239

BCA Governmental A!airs Committee 11, 22, 40, 53, 119, 150, 164, 218

BCA Health Committee 58BCA Judicial and Legal

Reform Committee 97BCA Education and

Workforce Preparedness Committee 197, 219

BCA Environment and Energy Committee 197, 219

BCA Tax and Fiscal Policy Committee 32

Becky Nordgren 21Ben Brooks 24, 32, 43, 117,

153, 162-3, 174, 187, 220

Best of the BEST Award 256

BEST Robotics, Inc. 257Bill Barranco 244Bill Brunson 244Bill Holtzclaw 35, 79, 112,

127, 134, 162Bill Lyons 52, 244Bill Morton 244Bill Nelson 159Bill Poole 21, 24, 33, 43, 119,

176, 188, 254Bill Roberts 10, 21, 34, 44,

123, 191Bill Shuster 159Billy Beasley 117, 125, 162,

171Birmingham Business

Alliance 85Blaine Galliher 20, 40, 63-4,

79, 112, 134, 188Blue Cross and Blue Shield of

Alabama 243Blue Cross/Blue Shield 41Board of Directors 15, 51,

55, 82, 94-6, 113-14, 206, 209-10, 218, 222, 232, 239, 244, 246

Bob Menendez 159Bob Riley 97, 238-40, 256-7Bobby Singleton 162Boiler MACT 70, 201Boys and Girls Club 245Bradley Byrne 127Brian Hilson 244Bryan Kindred 244Bryan Taylor 149, 157, 162Bu!ett Rule 29Business Activity Tax

Simpli$cation Act (also BATSA) 48

Business Associations Tax Coalition (BATC) 91, 110, 153, 164, 175, 186-7

Business Coalition for Property Rights and Workplace Safety 65, 76

Business Council of Alabama ii-iii, vi-vii, 55, 58-62, 76, 144-5, 178-80, 199-204, 206-7, 220-9, 231, 234-6, 238-40, 243, 253-5

Business Education Alliance (also BEA) 51, 225, 234

CCam Ward 53, 75, 149, 162,

168, 193-4, 220Cameron Martindale 244Capital Leadership Day vi,

51Carl Jamison 51-2, 60, 99,

218, 239-44, 255-7, 260Carol Gordy iii, 95, 244Caroline Novak 244Carrying the Flag for

Business Campaign vi, 199

Cascades Sonoco 102, 255, 261

Casey Wardynski 87Cathy Anderson-Giles 244Centennial Award 256-7Chad Fincher 20, 143Chairman’s Dinner vi, 199,

235-6, 238Chamber of Commerce

Association vii, 16, 95, 113, 207, 209, 218, 221, 223-7, 229, 243, 255

Chamber of Commerce Association of Alabama (also CCAA) 113, 207, 209

Chamber of Commerce of Huntsville/Madison County 145

Charles McCrary 244Charles Nailen iii, 100, 243-

4, 246Charlie Story 244Charter School Legislation

6, 90, 126, 185, 254Charter schools v, 6, 12-13,

23, 42, 56, 73-4, 85-9, 108-9, 118, 126-7, 161-2, 172, 185-6, 254

Cheryl Smiley Williams 244Chester Vrocher 98, 197Chip Cravaack 159Chris England 28Chuck Schumer 159Cigarette tax 121Clay Sco$eld 69, 123, 162,

189, 220

INDEX 265

Clean Air Act 201Clean Water Act 69, 84,

158, 180Coal mining 10, 34,44,191Committee Leadership Days

97, 218Congress 16-17, 28-9, 34,

49, 67, 84, 114, 128, 145-6, 160, 177, 179-80, 200, 202, 204

Constitutional amendment 9, 11, 19, 39-41, 48, 56, 76-7, 93, 131, 168, 175, 192

Cooper Shattuck 105, 106, 107, 108

Council on State Taxation (COST) 203

Court of Civil Appeals 81, 206

Court of Criminal Appeals 82, 206

CQ Today 179, 200Craig Ford 20, 44, 65, 75,

109, 119Craig Pittman 81, 206Craig Pouncey 40, 77Curtis Lewey 261Cybercrime 53-4

DDaikin America 102, 255,

260Dan Williams 10, 21, 46, 93,

110, 191Data processing centers 10,

93, 110, 191Dave Camp 159David Craig 73David Hendrixson 255, 260David Muhlendorf iii, 244David Sessions 21David Vitter 70, 159Davidson High School (also

DHS) 256, 257, 258Debbie Long 59, 197, 244Dee Dee Bonner 255Deepwater Horizon oil spill

69, 84, 158, 180, 202Del Marsh 22, 55, 59, 73,

127, 149, 162-3, 167, 218, 220, 225, 234, 237

Demetrius Newton 174

Denson Henry 59, 100, 239, 241-2, 244, 246, 258

Department of Corrections 4Department of Human

Resources 4, 43Department of Industrial

Relations (DIR) 14, 25, 36, 68, 155

Department of Insurance 66, 79, 91, 178, 193, 195-6

Department of Labor 43, 195

Department of Transportation 33, 69, 123, 189

Dick Anderson 102, 228-9, 241-2, 244, 246, 258

Dick Brewbaker 73, 87, 126-7, 161-2, 172, 185, 254

Dick Durbin 159Dickie Drake 20Distance Learning, ACCESS

5, 42District Attorneys Association

79, 112, 134, 189Doc Hastings 159Don Young 159Donald Keeler 255, 259Donald Morgan 244Donna Watts 244Donnie Chesteen 20Donta Wilson 244Doug Mannion 242, 244,

246, 258Douglas Markham 244Duwayne Bridges 113, 191

EE-verify 26, 106, 211-12Eason Balch 244Economic Development

Association of Alabama 114, 210

Economic impact analysis 11, 222

Ed Castile 242, 258Ed Crowell 244Ed Henry 20, 155Ed Whit$eld 159Eddy Kilman 244Education Options Act v,

73, 85, 87, 89, 108-9, 118, 126, 161, 225

Education Policy Committee 127

Education reform vi, 12, 22, 73, 85, 109, 127, 172, 185-6, 223, 254

Education Trust Fund 10, 22, 41-2, 88, 120, 168, 222

E#ciency Division 23Elaine Beech 20Eliska Morgan 257Emmanuel Boullay 255, 261Employment veri$cation 26Environmental Protection

Agency (also EPA) 70, 144, 159, 201

Ephedrine 15, 63-5, 79, 112, 134, 188, 224

Eric Cantor 83, 146Erik Johnsen 101, 244Estate Tax 29ETF 23, 120-1Ex-Im Bank 82, 94, 103,

115, 179, 181, 200 Export-Import Bank (also Ex-Im) 83, 103, 179, 181, 182, 200

FFAA 17Fair Campaign Practices Act

157, 194Federal Advocacy vi, 200Federal Legislative Agenda

vi, 16Film incentives 46, 78, 91,

122, 190First Class pre-k 51First class voluntary pre-k 51Forever Wild 57, 168Forever Wild Program 57,

168Forrest Keith 260Fourner J. “Boots” Gale III

243Fox News 243Frances Turner 244Frank Filgo 244Frank Lloyd Wright viiFred Blackwell 197, 244Fred McCallum 243-4Fred Upton 159Freda Bacon 197, 244Freida Hill 242


GGarry Neil Drummond 244GARVEE Bonds 3, 33, 42General Fund Budget 13, 23,

80, 119-20, 122, 129George Blanks 257George Flowers 242, 244,

258George W. Bush 235-6Gerald Allen 127, 162-3Gerald Dial 27, 125, 150,

162, 174Glenn Murdock 81, 206Goodyear 41, 255Governmental A!airs

Conference 97-8, 231, 234

Governor Bob Riley “Building a Better Alabama” Award 256-7

Governor’s Trade Excellence Awards 80

Greg Butrus 197Greg Can$eld 39, 77, 80,

218, 220Greg Leikvold 242, 244, 258Greg Powell 60, 244, 246Greg Reed 58, 101, 128,

162-3Greg Wren 21, 128, 130, 156Gregory Brown 244Gross Income Regulation 61Gulf Coast 69, 84, 158, 180-

1, 202Gulf Coast Restoration Trust

Fund 180, 202Gun 44-5, 65-6, 75-6, 167,

184Guns-to-work 59,

60,62,75,184

HHank Sanders 117, 127, 162,

174Harbert Management

Corporation 218, 220, 231, 233, 243

Harri Anne Smith 162Harris Morrissette 101, 244,

246Harry Reid 16, 69, 71, 82,

103, 179

Harry Shiver 21Health Alliance 7Health care vii, 5, 15, 48, 50,

58, 63, 67, 80, 84, 92, 100, 128, 156-7, 224

Health care exchange 128Henry Mabry 87, 126Hibbett Sporting Goods 54Highway Trust Fund 50, 103,

202Honda 9, 22, 242, 258Honest Budget Act 16Horace Horn 244House Committee on

Commerce and Small Business 21

House Committee on Oversight and Government Reform 159

House Constitution, Campaign and Elections Committee 28

House Economic Development and Tourism Committee 33, 92

House Energy and Commerce Committee 17

House Ethics and Campaign Finance Committee 28

House Health Committee 15, 48, 63-5, 128, 130

House Judiciary Committee 24, 27, 33, 46, 49, 90, 175, 203

House Public Safety and Homeland Security Committee 14, 117

House Rules Committee 40House State Government

Committee 14, 132House Ways and Means

Education Committee 108, 118, 126

Human Events 179, 200Hyundai 9, 22, 259Hyundai Motor

Manufacturing Alabama 259

IImmigration v-vi, 26, 56, 59-

60, 62, 105-6, 108, 116-17, 125, 166, 171, 183-4, 211-12, 226-7, 253

Innovation 13, 88-9, 108, 145, 231, 260

JJ. Cameron West 244J. Danny Cooper 244Jabo Waggoner 101, 162, 194Jack Hawkins 244Jack Williams 21, 25, 28, 37,

92, 110, 155, 185, 254Jaime Beutler 159James Buskey 119James Inhofe 159James Lankford 159James Proctor 242, 244, 258Jamie Ison 20, 33, 67, 93,

119, 177, 190JamisonMoneyFarmer PC

243Jan Wood 114, 209, 244Jay Love 22, 31, 85, 119, 152,

162, 173, 186, 192, 195Jay Rockefeller 159Jay Timmons 239-40, 242,

256Je! Coleman 52, 244Je! Miller 244Je! Newman 82, 206Je! Sessions 16, 30, 145, 180,

241-2Je! "ompson 242, 258Je!erson County 63Jenny Parker 257Jerald Labovitz 257Jeremy Arthur vi, 95, 113,

209, 245Jeremy Oden 21, 108, 119Jerry Fielding 149, 162Jim Barton 20, 120Jim Bolte 244Jim Byard 242, 258Jim Carns 20Jim Fincher 244Jim Main 81, 206Jim McClendon 14, 21, 128,

150, 174, 196Jim O’Brien 197

INDEX 267

Jim Patterson 21Jimmy Holley 132, 162J.M. “Margie” Wilcox 244Jo Bonner 81-2, 145, 180,

206, 241, 256-7Joanne Randolph 15, 52, 244Job creation v-vi, 9-10, 19-

20, 22, 25-6, 39-40, 43-4, 76-8, 93-4, 130-1, 158, 175, 191-2, 222-3, 256-7

JOBS Act 16, 30, 70, 114Jobs package 12Joe Faust 20Joe Hubbard 20, 174Joe Pampinto 242, 258Joe Rella 242, 244John Boehner 48, 84, 203John Duncan 159John Hoeven 70, 159John Merrill 21 John Mica 159

John Rogers 21, 119John Russell "omas 244John Seymour 244-5John Turner 52, 244Joint Committee on

Administrative Regulation Review 133

Joseph Busta 244Jubilee BEST Robotics 257

KKaren Carter 244Kay Bailey Hutchison 159Kay Ivey 15, 60, 218Keeping Politics Out of

Federal Contracting Act of 2011 159, 204

Keith Granger 52, 244Ken Johnson 20Ken Tucker 242, 244, 258Kerry Rich 21Kim Turner 245Kirk Mancer 95, 244K.L. Brown 20Kurt Wallace 21

LLarry Buchson 159Legislative Fiscal O#ce 169Legislative Reference Service

132

Lesley Vance 21Liles Burke 82, 206Linda Coleman 149, 162Linda Lewis 244Lindsey Graham 83, 94Lisa Williams 52, 244Lolly Steiner 95, 244Luther Strange 102, 125,

255, 259, 261Lyn Stuart 81, 206Lynn Cox 245Lynn Greer 20, 66, 79, 91,

112, 193

MMAC 20-1, 239, 241-2, 258Mac Buttram 20Mac McBride 242, 258Mac McCutcheon 21Mack Ferguson 60Made in Alabama Act 14Maggie Brooke (also

Margaret Brooke) 232Magic Moments 245Major Garrett 95, 243Manufacturer of the Year

(also MAC) 102, 255-7, 259-61

Manufacturing Advocacy Council vi, 16, 66, 76, 228-9, 239-40, 242, 258

Marc Keahey 149, 154, 162, 174

Marc Labovitz 257Marcel Black 28Margaret Spellings 99, 234Maria Cantwell 83, 94Mark Brazeal 242, 258Mark Hope 244Mark Nix 52, 244Mark Tuggle 21, 119Mark Wnuk 245Markus Schaefer 244Marquita Davis 81, 119Martha Roby 16, 49, 206,

241-2Martin Abroms 244Marty Abroms 31-2, 61, 197,

254, 261Marty Parker 52, 244Mary Sue McClurkin 21,

119, 244Max Baucus 159

Memphis 13Mercedes 9, 22, 34, 44, 191Merika Coleman 28Metal "eft (also scrap metal)

vi, 24, 32, 43, 57, 176, 183, 188, 228-9, 253-4

Michael Bailey 242, 255, 257-61

Michael Joiner 82, 206Michael "ompson 244Micky Hammon 20, 117,

125, 148, 166, 171, 189Mike Ball 20Mike Fletcher 257-8Mike Hill 20Mike Hubbard 11, 20, 55,

60, 73, 92, 97, 99, 109, 158, 172, 183, 218, 239-41, 253

Mike Jones 20Mike Millican 15Mike Rogers 145, 180, 206,

241Mississippi 5, 15, 34, 67, 166,

174, 177, 190Mitch McConnell 70, 94Mo Brooks 81-2, 145, 180,

206, 241Mobile Area Chamber of

Commerce 180Mobile Workforce State

Income Tax Fairness and Simpli$cation Act 203

Montgomery Advertiser 172Montgomery Area Chamber

of Commerce 145Morri Yancy 53, 95, 244

NNAM 240Nancy Pelosi 48, 203National Association of

Manufacturers (also NAM) vii, 62, 115, 179, 200-1, 204, 221, 223-7, 229, 234, 238-40, 246, 254-6

National Institute for Early Education Research (also NIEER) 51

National Journal 95, 179, 200, 243


New Market Development Act 67, 190

Nichole Reynolds 241NIEER 51, 53North American Energy

Access Act 17

OOctavia Spencer 46O#ce of Water Resources

143O!shore Drilling 204Oliver Robinson 21ONE SPOT 165, 254Orrin Hatch 159Outer Continental Shelf 70,

204Owen Bailey 100, 197, 244,

246

PPaige Goldman 197Pam Jones 245Pamela Burnham 51, 244"e Partnership vi-vii, 113,

207-9Partnership Award 256-7Pat Tiberi 159Patient Protection and

A!ordable Care Act (also PPACE, ACA, health care reform law) 128, 130, 156

Patricia King 244Patricia Todd 119Paul Beckman 20Paul Bussman 33, 36, 68, 162Paul Cocker 244Paul DeMarco 14, 20, 25,

27, 36, 46, 53, 68, 90, 109, 153, 155, 163, 174, 176

Paul Lee 10, 20, 67, 90, 100, 111, 190

Paul Sanford 26, 44, 65, 75, 162-3, 167, 184

Paying a Fair Share Act 147Payroll Tax Cut 28PBM 47Pebblin Warren 62, 99Permanent Joint Legislative

Committee on Water Policy and Management 143

Permanent Legislative Committee on Reapportionment 150

Perry Hand 52, 244Peter Reynolds 257Pharmacy 47-8, 64, 66, 79,

91, 112, 193Pharmacy bene$t managers

(PBM) 66, 79, 91, 112, 193

Phenylpropamine 15, 224Phil Dotts iiiPhil Webb 52, 244Phil Williams 21, 39, 60,

68, 73, 76-7, 85-6, 101, 108, 119, 126, 131, 149, 162, 172

Philip Dotts 243-4Physical therapists 129,

155-6Pocket veto 187Politico 179, 200Prattville Chamber of

Commerce 113, 209Pre-k 5, 51, 55Pre-kindergarten 42, 51, 56Pre-Kindergarten programs

(also pre-k) 51President Barack Obama 16,

18, 29, 71, 103, 114, 128, 146, 181

Priscilla Dunn 75, 162, 192Private sector v, viii, 12, 14,

181, 199, 202, 222Pro-business vii-viii, 12, 43,

145, 180, 197, 199, 218, 220, 223, 231-2, 234, 236-7, 239, 243

Probate Judges Association 28

ProgessPAC vi, 62, 81, 199, 206, 232, 235,237

Property rights 44-5, 65-6, 76, 167

Proration 80-1, 119Pseudoephedrine v-vi, 15,

58, 63, 79, 112, 134, 188-9, 224

Public A!airs Research Council of Alabama 121

Public Road and Bridge Construction Council 33

QQuinton Ross 127, 161-2

RRalph Hall 159Randall George 244Randy Davis 20Randy Wood 21Ray Perez 241-2, 244, 258Reapportionment Committee

129, 151, 174Reception Saluting State

Leaders 53Redistricting 129, 150-1,

173-4Reg-Flex 21, 35Regulatory Flexibility Act 11Regulatory Relief Act of 2011

201Reid Ribble 159RESTORE Act 69-70, 84,

158, 180-1, 202Revenue Department 34,

61, 92Rheem Manufacturing 256Richard Baughn 20Richard Hanna 159Richard Shelby 69, 83, 94,

145, 158, 180Rick Crawford 159Rick Roden 197, 244-5Right-to-work viii, 199Right-to-work Statutes viii,

62, 199Rob Bishop 159Robert Aderholt 144-5, 180,

206, 241Robert Bentley v, viii, 9, 19,

33, 40, 73, 80, 98-9, 101, 105, 113, 118, 173, 176-7

Robert “Bubba” Lee iii, 244Robert Campbell 244Robert Moses viiRobert Powers 244Robert Vaughn 244Robin Fenton 257Rod Scott 21, 119Rodger Smitherman 149,

162Roger Bedford 162, 232Rolling Reserve 23, 119, 131Rolling Reserve Budget Act

23, 119

INDEX 269

Ron Davis 52, 94, 244Ron Johnson 20, 47, 134,

220Ron Perkins 60, 197, 244,

246Ron Wyden 70Ronald Yarbrough 53, 244Ronnie Boles 197, 241-2,

244, 258Russ Tyner 244Rusty Glover 75, 162

SSales/Use tax 61, 187Sandy Stimpson iii, 101,

244, 246School Flexibility Act 5School grading system 192Scott Beason 45, 125, 133,

162, 166, 171, 184Scrap metal 254Secretary of State 28, 234Senate Agriculture,

Conservation and Forestry Committee 69

Senate Banking and Insurance Committee 68

Senate Budget Committee 16, 30, 145

Senate Commerce Transportation and Utilities Committee 162

Senate Constitution, Campaign Finance, Ethics and Elections Committee 157

Senate Finance and Taxation-Education Committee 39, 47, 175

Senate Job Creation and Economic Development Committee 26, 36

Senate Judiciary Committee 24, 45, 48, 117, 133, 149, 153

Shadrack McGill (also Shad) 75, 127,162,163,168

Shane Clanton 244Sheila Hodges 244Sheldon Whitehouse 147Shelley Moore Capito 159Sid McAnnally 52, 244

Single Point of Filing 61, 118, 154, 187, 254

Slade Blackwell 75, 118, 127, 154, 162, 164, 167, 187, 254

Small Business 15, 21, 25, 35, 37, 60, 92, 110, 118, 128, 134, 146, 158, 164, 197

Small Business Administration 146

Small Business Financing Authority 158

Small Business Flexibility Act 21

Small Business Tax Cut Act 146

Speaker Mike Hubbard 11, 55, 60, 92, 99, 109, 158, 172, 183, 218, 234, 236, 239-41, 253

Speaker of the House 33, 73, 97, 131, 220, 225

Speaker’s Commission on Job Creation 158, 239

Special session 9, 93, 150-1, 173, 183, 188, 253Spencer Bachus 81-2, 145, 180, 206

Spurring Investment in Struggling Communities 93

Stan McChrystal 234State Board of Education 56,

87, 152, 174State Department of

Education 40, 76-7, 88, 107

State Employee Insurance Board 66, 79, 91, 112, 193

State Industrial Development Authority 77, 131

State of the State Address v, 1

State Personnel Board 15State school superintendent

13, 109Stephen Still 244Steve Cawood 244Steve Clouse 20Steve Holt 244Steve McMillan 21, 119,

178, 195, 220

Steve Roy 244Steve Southerland 159Steven Marimberga 255, 261STOCK Act 17, 103Students viii, 7, 10, 13, 42,

56, 73-4, 86, 89, 107-9, 117, 119, 126, 169, 256-8

Sub-S Corporations 162, 173

Supreme Court 1, 81, 84, 108, 128-9, 157, 166, 206

Susan Collins 70Susan Foy 244-5Susan Price 258Sustainability in

Manufacturing Award 256

Suzanne Respess 197, 239, 241, 244

TTalladega Chamber of

Commerce 60Tammy Irons 80, 162, 174Tax credit 6, 11, 32, 34, 42,

61, 67, 94, 113, 153, 163, 165-6, 173, 177, 190-1

Tax-exempt 10, 68, 190Tax Hike Prevention and

Business Certainty Act 146, 204

Tax incentives 9-11, 19, 91, 93, 110, 130-1, 166, 190

Taxpayer Bill of Rights 14, 46, 54

Teachers v, 6-7, 10, 42, 56, 74, 79, 85, 87-8, 108-9, 119, 161, 222, 225

Terrance Brown 244Terri Collins 27, 35, 46, 78,

91, 119, 122, 190, 192Terri Sewell 49, 206, 241Terri "omas 206Terry Kellogg iii, 53, 95,

240-1, 243-4Terry Moore 81, 206Texting 14-15, 196"yssenKrupp 9, 22Tim Johnson 83, 94, 159Tim McCartney 197, 244Tim Parker 244Todd Strange 73Tom Cleckler 245


Tom Surtees 40, 144Tom Whatley 48, 133, 149,

162Tommy Bice 6, 13, 109Tommy Bryan 81, 206Tornado Recovery Action

Council 7Tracy Roberts 82, 206Transportation Bill 18, 69-

70, 82-4, 103, 158Transportation

Reauthorization Bill (also Multi-year highway bill) 16,69,180,181,201,202

Trip Pittman 34, 36, 47, 61, 68, 111, 121, 127, 162, 176, 185, 254, 261

UUnemployment

Compensation 14, 25-6, 36-7, 43, 62, 68, 111-12, 144, 155, 176, 184-5, 254

Unemployment compensation trust fund 26, 36, 155, 176, 185, 254

Unitary combined reporting 61, 154

University of Alabama 26, 169, 178, 231-2

University of West Alabama 169

U.S. Chamber vi, 30, 84, 114, 145, 159, 179-80, 200, 202, 204, 209, 220-1, 223-7, 229, 240

U.S. Chamber of Commerce 84, 114, 145, 159, 179-80, 200, 202, 204, 209, 220-1, 223-7, 229, 240

U.S. Justice Department 150U.S. Supreme Court 108,

128, 157Utility MACT 201

VVal Ray 260Van Richey 244Victor Gaston 20Victor Vernon i, 61-2, 169,

261Vivian Davis Figures 127, 162Voting Rights Act of 1965

49, 150

WW. Steven Barnett 51Walter Scheller 169, 244Wayne Johnson 20Wes Long 20, 220

Will Brooke (also William Brooke) 60, 95, 97, 231, 233, 236-7, 243, 245

William Canary 10, 24, 53, 105, 108, 117, 148, 162, 167, 169, 171, 173, 243, 257, 259-61

William J. Canary i, vi, 62, 96, 100, 102, 113, 169, 172, 207, 209, 222, 224-7, 229, 240-2

Winthrop Hallett 244Women’s Business Center of

North Alabama 15-16, 52, 244

Workers’ Compensation 27, 37, 54, 62-3

Workforce Development O#ce 62

Workforce Investment Act 203

ZZack Brewer 257ZF Industries 256

The Foundation for Progress 2012

Documents

e foundation

t e s e c t o rcontributors

e bcas

t h e f o u n dat i

p ro g r e s s

business council of

job creation kicks o

jennifer s kornegay