ACCA's Danger Bills for 2008 Session

Several bills that have been identified as dangerous to county government have already been introduced in this Legislative Session. Most of these bills would negatively impact the financial resources available to counties through tax exemptions or changes in collection methods. However, there are other program-related issues that must be carefully monitored to ensure that there are no bills passed that unduly burden counties or create an unfunded mandate. A list of “Danger Bills” introduced thus far is set out below. It is important that county officials and employees review these items and discuss with your legislators how passage of these bills would harm the effective operation of county government.

TAXATION BILLS

HB6 by Rep. Greeson
HB140 by Rep. Allen
HB406 by Rep. Allen
SB40 by Sen. Means
SB79 by Sen. French
SB103 by Sen. Beason
SB259 by Sen. Marsh

As has been the practice for the last several years, there have been a number of bills introduced that would require a return to four-year reappraisal of real property in all counties in Alabama. There are different versions of the proposal, but all would result in the same outcome. The Association and other organizations dependent upon ad valorem tax revenues have filed for public hearings on these bills and will monitor closely to ensure that none of these bills begins to move through the legislative process.
STATUS: The House bills are all assigned to the House Government Appropriations Committee and the Senate bills are assigned to the Senate Finance and Taxation Education Committee.

There are several other Danger Bills aimed at reducing ad valorem taxes on certain kinds of property. All of these bills are still in committee, and the Association has requested public hearing. Those bills are:

HB155 by Rep. Williams
This bill would allow home construction to qualify as residential property for ad valorem tax purposes during construction, thereby taxed at 10% of the assessed value. Currently construction property is classified as Class II property and taxed at 20% of the assessed value.
STATUS: This bill is currently pending in the House Government Appropriations Committee.

HB188 and HB189 by Rep. Gipson
These bills propose to classify privately owned noncommercial aircrafts as Class IV property for ad valorem taxation purposes. This would mean that this property would be taxed at 15% of its assessed value, rather than the current 20% of assessed value.
STATUS: These bills are currently pending in the House Government Appropriations Committee.

HB461 and HB462 by Rep. Ball
These bills propose a constitutional amendment and enabling legislation providing that RVs, campers and motorcycles would be assessed for ad valorem taxes at the rate of 15% of assessed value. Currently, these items are taxed at the 20% rate.
STATUS: These bills are currently pending in the House Government Appropriations Committee.

There are also many bills proposing to grant sales and use tax exemptions for various products or organizations, and several bills granting a partial or complete exemption from tag and registration fees required to be paid for certain special organization tags. There are also bills that would significantly hamper local government’s ability to pass measures raising revenue. Not all of these bills are listed in this report, but are being monitored by the ACCA staff. A few of the bills of particular interest are listed below:

HB134 by Rep. Fite
SB26 by Sen. Coleman
These bills authorize the operation and licensing of native wine farms in the State of Alabama. They would be regulated by the Alcohol Beverage Control Board. The bills provide for a state license tax and excise tax, but specifically prohibit the levy of any local taxes on these operations.
STATUS: HB134 has been assigned to the House Tourism and Travel Committee, and SB26 has been assigned to the Senate Tourism and Marketing Committee.

HB244 by Rep. Wren
SB307 by Sen. Benefield
These bills would include certain energy efficient products in the annual sales tax holiday intended to allow for the purchase of school supplies without taxation during one weekend in August.
STATUS: HB244 is awaiting action in the House Education Appropriations Committee, and SB307 is in the Senate Energy and Natural Resources Committee.

HB287 by Rep. Gipson
This bill would provide a state and local sales and use tax exemption for all over-the-counter medications.
STATUS: The bill is awaiting action in the House Education Appropriations Committee.

HB342 by Rep. Ford
This bill would grant a sales and use tax exemption for all purchases of hearing aids.
STATUS: This bill is awaiting action in the House Education Appropriations Committee.

HB397 by Rep. Ford
This bill provides that movie theaters would only pay a business license tax for the building in which the theaters are housed. Currently, the tax is paid for each screen within the theater.
STATUS: This bill is pending action in the House Government Appropriations Committee.

SB97 and SB297 by Sen. French
These bills propose a constitutional amendment that would prohibit the enactment of any legislation raising state or local revenue through new or increased taxation unless first approved by referendum.
STATUS: SB97 is pending action in the Senate Finace and Taxation Education Committee, and SB297 is pending action in the Senate Finance and Taxation General Fund Committee.

SB286 by Sen. Bedford
SB419 by Sen. Poole
These bills would exempt all college textbooks from the payment of state, county, and municipal sales and use taxes.
STATUS: These bills are currently pending in the Senate Finance and Taxation Education Committee.

ILLEGAL IMMIGRANTS

As was the case last year, there are several bills introduced aimed at addressing many of the problems related to illegal immigrants. While this is a serious problem, the solution must be a well-thought out and comprehensive plan to effectively address the concerns of Alabama’s citizens. Unfortunately, many of the bills introduced place an undue burden on governmental entities to identify whether persons are legally in the country and include expensive unfunded mandates. A few of the bills with particular concerns are listed here:

HB298 by Rep. Hammon
This bill would prohibit agencies from issuing or renewing licenses unless they could verify that the individual is lawfully in the country.
STATUS: This bill is pending in the House Judiciary Committee.

HB667 by Rep. Fields
This bill would require jailors or other persons having custody of a person charged with a felony or DUI to determine the citizenship and lawful status of the defendant, and notify the Department of Homeland Security if such status cannot be determined. Additionally, the bill provides that there shall be a rebuttable presumption against granting bond to a defendant whose lawful status cannot be determined.
STATUS: This bill has been assigned to the House Judiciary Committee.

HB720 by Rep. Treadaway
This bill, which is a companion to Senate bills reported earlier, would set requirements for government and private employers to provide identification for all employees verifying their legal status, and creates crimes and penalties for hiring or concealing persons not lawfully in the country. As stated earlier, there are several serious concerns with the way these bills are written, and they would create enormous administrative and financial burdens on local governments and public and private employers.
STATUS: This bill has been assigned to the House Judiciary Committee.

HB725 by Rep. Keahey
This bill would grant to the presiding circuit judge full control and discretion over the expenditure of funds distributed to the county law library, including purposes not directly related to the operation of the library. Additionally, the bill would grant the presiding circuit judge full control over the purchase, sale or exchange of all property assigned to the county law library.
STATUS: This bill is currently pending in the House County and Municipal Government Committee.

SB77 by Sen. Means
SB426 by Sen. Beason

These bills set requirements for government and private employers to provide identification for all employees verifying their legal status, and creates crimes and penalties for hiring or concealing persons not lawfully in the country. There are several serious concerns with the way these bills are written, and both would create enormous administrative and financial burdens on local governments and public and private employers.
STATUS: SB77 is pending action in the Senate Judiciary Committee, and SB426 is pending action in the Senate Fiscal Responsibility and Accountability Committee.

SB448 by Sen. Figures
This bill would amend current law related to procedures for "specialty" license tags by requiring the sponsoring organization to obtain a minimum of 1,000 commitments to purchase prior to the tags being manufactured. While this could be a positive change in the law, ACCA staff is currently concerned about payment and distribution of tag fees as the bill is written, and is carefully monitoring the bill to determine whether it will have a negative impact on fees currently distributed to local government.
STATUS: This bill is currently pending action by the Senate Governmental Affairs Committee.

VOLUNTEER FIRE AND RESCUE SQUADS

HB618 and HB685 by Rep. Faust
These bills, similar to one introduced in 2007, would establish taxes and fees to be paid on boat trailers, with 50 percent of the proceeds paid to the Alabama Association of Rescue Squads, for distribution by that non-governmental association to the various rescue squads that are members of that association. ACCA vehemently opposes the diversion of public funds to a private organization to make decisions regarding distribution of such funds. Additionally, counties traditionally share in the proceeds of registration and tag taxes and fees, but would not receive any portion of the fees proposed in this bill.
STATUS: These bills are currently pending in the House Agriculture and Forestry Committee.

HB682 by Rep. Payne
This bill would grant all vehicles used by volunteer fire departments and fire protection districts an exemption from motor fuel tax and motor vehicle tax and license fees. As written, this exemption would apply to all such vehicle and uses, meaning that vehicles used for personal or non-emergency purposes would be entitled to exemption from these taxes.
STATUS: The bill is currently pending in the House Government Appropriations Committee.

OTHER DANGEROUS BILLS

HB201 by Rep. Martin
SB290 by Sen. Little (Z)

This legislation would allow members of the military and their families serving overseas to vote an absentee ballot via the Internet. ACCA believes it is important that any process for voting via the Internet have proven safeguards protecting the integrity of the casting of votes. There are also concerns about authorizing some, but not all absentee ballots to be cast via the Internet.
STATUS: HB201 is pending in the House Constitution and Elections Committee, and SB290 is pending in the Senate Constitution and Elections Committee.

HB438 by Rep. Wood
SB86 by Sen. Holley
SB119 by Sen. Butler

Three bills that would provide exemptions from the costs of automobile tags for various groups. If passed, the bills would reduce county, municipal and state revenue for road and bridge construction.
STATUS: All three bills have been approved by committees in the House and Senate.

HB442 by Rep. Oden
SB364 by Sen. Griffith

This legislation would increase the bid law limit for all local governments (including counties) to $15,000 and would allow consideration of “life cycle” in determining the lowest bidder. The legislation does not include specifics explaining how to determine a product’s “life cycle” and could lead to many adverse audits by the Department of Examiners.
STATUS: HB442 was passed by the House. The Association will continue to express its concerns in the Senate. SB364 is pending in Senate Fiscal Responsibility and Accountability.

HB477 by Rep. Ward
This bill would grant immunity to a contractor for governmental road work unless the contractor or his or her employees are guilty of willful misconduct. The bill does not provide similar protection for the governmental entity.
STATUS: This bill is pending in the House Judiciary Committee.

HB493 by Rep. Collier
SB327 by Sen. Means
This bill would require all law enforcement agencies, including the sheriff’s office, to develop and publish written rules and procedures on internal investigations.
STATUS: HB493 is pending in the House Governmental Operations Committee. SB327 is pending in the Senate Governmental Affairs Committee.

HB502 by Rep. Gordon
This bill would allow an employee to select a doctor in the event of a worker’s compensation case. Although the bill provides that the doctor would be paid the same fee as paid to the employer’s doctor, this legislation would adversely impact the workers’ compensation program and potentially increase costs for all employers.
STATUS: This bill is pending in the House Commerce Committee.

HB542 by Rep. Irons
SB382 by Sen. Griffith
These bills would require any entity (including county agencies) to notify all affected persons in the event of a security breach that potentially involves the release of personal information. The mandated requirements of this bill as written would be nearly impossible to comply with and the administrative costs in attempting to comply would be enormous.
STATUS: HB542 is pending in the House Government Operations Committee, and SB382 is pending in Senate Governmental Affairs.

HB555 by Rep. Randy Wood
This bill would require employers to meet with law enforcement employees and representatives on any variety of issues related to employment.
STATUS: HB555 has been assigned to the House Governmental Operations Committee.

HB572 by Rep. Ball
This bill would eliminate TVA payments in any dry county where there is a wet municipality or a community development district.
STATUS: HB572 was approved by the House County and Municipal Government Committee but is not yet scheduled for a floor vote.

HB573 by Rep. McLaughlin
This bill would reduce TVA payments made to dry counties by 1 percent each year for five years at which time dry counties would receive no additional TVA payments.
STATUS: HB573 was approved by the House County and Municipal Government Committee but is not yet scheduled for a floor vote.

HB574 by Rep. McDaniel
This bill would "freeze" TVA payments made to dry counties at the amount paid in 2008. These counties would continue to receive payments at "level funding," but would not receive any growth. The growth would be redistributed to TVA counties.
STATUS: HB574 was approved by the House County and Municipal Government Committee but is not yet scheduled for a floor vote.

HB578 by Rep. Mitchell
This bill would remove the "cap" on partial disability payments made pursuant to the state's worker's compensation laws.
STATUS: HB578 has been assigned to the House Commerce Committee.

HB701 by Rep. Collier
Current law provides that law enforcement officers employed by the Department of Public Safety are entitled to be paid annually for up to 10 days of unused accrued annual leave days in excess of 60 days. This bill would grant this benefit to all law enforcement officers, and grant the department head sole discretion regarding whether to grant the benefit in any year. The bill, as currently written, would apply to deputies and grant the sheriff the authority to determine annually whether the benefit would be granted. Obviously, this would be very costly for counties and would directly conflict with the county commission's authority and control over the county budget. Additionally, granting this benefit to deputies only would likely generate resentment from other county employees.
STATUS: This bill is pending in the House Government Appropriations Committee.

HB800 by Rep. Joseph Mitchell
This bill calls for the unionization of county employees and is very dangerous legislation requiring cities and counties to enter into collective bargaining agreements with their employees. If passed, this legislation would impact all counties, generating increased employee costs and litigation.
STATUS: The bill has been assigned to the House County and Municipal Government Committee.

SB83 by Sen. Mitchell
This bill would require counties and municipalities to consent to the abandonment of cemeteries and would allow for the use of public funds for the rehabilitation or maintenance of
such cemeteries under certain circumstances. This bill conflicts directly with ACCA policy regarding this issue.
STATUS: This bill is currently pending in the Senate Governmental Affairs Committee.

SB102 by Sen. Singleton
This bill would mandate counties to pay all sheriffs an additional $10 a day for “hazard duty pay” and pay all deputies an additional $5 per day. Obviously, the cost for this unfunded mandate would be significant.
STATUS: A public hearing was held in the Senate Finance and Taxation General Fund Committee during the first week of the session. No vote was taken at that meeting and the bill is still pending committee action.

SB131 by Sen. Butler
This bill would prohibit ADEM from issuing a permit for a rock quarry unless the operation has been granted host government approval by the county commission.
STATUS: This bill is pending action by the Senate Governmental Affairs Committee.

SB242 by Sen. French
This bill would authorize the sheriff to expend any monies in his budget without regard to the specific line items established by the county commission for that office in its approved budget for a particular fiscal year. This bill would, in effect, undo the provision in the County Modernization Act requiring officials and agency heads to spend within the budget established by the county commission.
STATUS: Senate Governmental Affairs Committee approved this legislation. However, this legislation cannot reach the Senate floor unless it is placed on the Special Order Calendar. This legislation is one of the most dangerous bills to county government introduced in the Alabama Legislature in many years, and stopping this legislation has become ACCA's top priority for the remainder of the session. Members should contacts their Senators and ask them to OPPOSE this legislation.

SB254 by Sen. Barron
This bill would provide that all elections in Alabama be held on Saturday. The bill does not make provision for the additional cost of county personnel who would be required to work on the Saturdays on which elections are held, and as such is an unfunded mandate. Under these circumstances, passage of this bill will require a two-thirds vote by the Legislature pursuant to Amendment 621 of Alabama's Constitution. Additionally, ACCA staff will attempt to amend this legislation to require the state to pay the additional county personnel costs passage of this bill would require.
STATUS: This bill is out of committee and waiting for floor action in the Senate.

HB425 by Rep. Keahey
SB322 by Sen. Mitchell
These bills would authorize a volunteer fire department to assess fees for services against homeowners and business, regardless of whether the department is receiving any tax revenue or appropriation from any governmental entity. The bills as written include no regulation or safeguards against setting excessive fees or implementation of assessments.
STATUS: HB425 is pending in the House Government Appropriations Committee. SB322 is pending in the Senate Governmental Affairs Committee.

SB367 by Sen. French
This bill would eliminate the Office of Examiners of Public Accounts and the Chief Examiner and would replace this agency with a new agency operated by a Board and Office of Standards and Accountability. All staff and duties of the current agency would be transferred to the new agency, which would appoint a director. The Office of Examiners of Public Accounts works diligently and very effectively to protect public funds at the state and local levels, and provides an extremely important function not only to the people of this state, but to county government. ACCA opposes any effort to abolish this agency.
STATUS: The bill is currently pending action in the Senate Fiscal Responsibility and Accountability Committee.

SB403 by Sen. Smitherman
This bill would make substantial changes to the worker’s compensation law, including alterations to the process for lump sum payments and amending definitions to, among other things, provide special provisions allowing first responders to make claims based upon mental illness. ACCA staff is continuing to review this bill to determine its full impact on the worker’s compensation program, and will provide additional details in the coming weeks.
STATUS: This bill is pending in the Senate Judiciary Committee.

 

 


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