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This Week in the Alabama Legislature…April 18, 2008
Download a printer friendly version of the April 18 Weekly Report.
A fifth ACCA-sponsored bill passed the House of Representatives this week as the 2008 regular session has entered the final stage. And in the Senate, delaying tactics continued and consumed all of three work days this week. Only eight session days remain in this year’s regular session with both state budgets and dozens of other bills still awaiting final action.
On Tuesday the House also passed a proposed constitutional amendment that would exempt most unprepared food from the state portion of the sales tax. The lost state revenue from the legislation would be replaced by an increase in income tax. Details on this legislation are contained below.
More than 200 county officials and employees took part in this week’s County Day @ the Legislature. This traditional event is part of the Association’s yearly legislative lobbying schedule and always plays an important role in the county government’s success. Special appreciation is expressed to all those who were in Montgomery for the two-day event.
Sales Tax on Food — HB274 by Rep. John Knight, which removes the state sales tax from most unprepared food, was approved by the House of Representatives by a razor-thin margin. The bill authorizes, but does not require, counties to remove the local portion of the sales tax on the same products. The legislation is expected to be considered by the Senate Finance and Taxation Education Committee on Wednesday.
The legislation raises concern for county governments because it will almost certainly result in local pressure to remove the local sales tax. County commissions, however, do not possess the authority to impose any other taxes to replace the lost revenue. The Association will continue to monitor this legislation, but county officials are encouraged to contact their Senators to express any concerns they have about the possible loss of revenue.
The members of the Senate Finance and Taxation Education Committee are: Chairman Sen. Hank Sanders, Sens. Phil Poole, Bobby Denton, Quinton Ross, Roger Bedford, Tom Butler, Linda Coleman, Larry Dixon, Vivian Figures, Jimmy Holley, Ted Little, Del Marsh, Harri Anne Smith, Rodger Smitherman, Wendell Mitchell, Zeb Little and Jabo Waggoner.
Refinancing Regulations — Both House and Senate committees this week delayed action on legislation to establish a legislative-dominated commission that would approve all bond issue refinancing and defaults by county and municipal governments. The legislation represents a major effort at oversight of the financial operation of local government and is written in response to the difficulties faced by the Jefferson County sewer system.
Appreciation is expressed to those House and Senate members who opposed SB583 and SB591 by Sen. Steve French and HB837 and HB838 by Rep. Rod Scott in three separate committee members. Among those supporting the Association’s position were Sens. Rodger Smitherman, Jabo Waggoner and Larry Means and Reps. Arthur Payne, Cam Ward, Todd Greeson, Ronald Johnson, Blaine Galliher, Jack Page, James Fields, Mike Hill, Mike Hubbard, John Letson, Pat Moore, Harry Shiver and Butch Taylor.
Trust Fund Bill Passes House — On Wednesday the House approved the bill allowing counties to establish trust funds to finance the cost of providing benefits to retirees (HB481 by Rep. Bill Dukes). This bill would enhance county ability to provide benefits to retired employees and will help counties comply with the so-called GASB 45 rules. This bill now goes to the Senate for consideration, and county officials are encouraged to ask their Senate members to SUPPORT this bill.
Administrative Fee for Educational Taxes — The constitutional amendment that requires all school districts to provide 10-mils of ad valorem taxes for local schools has a technical flaw that will increase the administrative costs for the state, counties, cities and all other local entities. HB349 by Rep. Charles Newton corrects the problem and assures that all entities continue to contribute, at the current level, toward the costs of collecting the taxes. The bill is out of committee and ready for final passage on the Senate floor. The Senate sponsor is Sen. Lowell Barron.
Amendments to Sex Offender Notification Act — Currently, many convicted sex offenders who are being released from state prison are re-arrested at the prison gates because their reported place of residence violates Alabama law. HB332 by Rep. Blaine Galliher has been assigned to the Senate Judiciary Committee, which has approved the Senate version of this legislation. ACCA staff has requested this bill for the committee agenda. The Senate sponsor is Sen. Myron Penn.
County Modernization — The House-passed version of the 2008 County Modernization Act, HB110 by Rep. Richard Lindsey, is also ready for final passage on the Senate floor. This legislation continues the ACCA effort to make technical changes in the code sections relating to county government. The bill also updates the performance bonds for county officials and reworks an outdated and seldom-used procedure for moving county seats. The Senate sponsor is Sen. Hank Sanders.
Bid Law Amendments — The ACCA bill that expands the local bid preference to 5 percent, allows counties to enter contracts with the second low bidder should the low bidder fail to complete the contract and makes the bid bond discretionary is also ready for final passage in the Senate. This bill, HB100 by Rep. Pebblin Warren, is sponsored by Sen. Bobby Denton.
Tax at the Rack — Talks continued this week on the legislation to shift the collection point for motor fuels and gasoline tax, HB518 by Rep. Johnny Mac Morrow. A number of major points of conflict remain on this issue, including efforts by the state’s convenience store association to allow its members to keep an administrative fee usually reserved for those businesses that actually remit the gasoline and diesel fuel taxes.
ACCA is also talking with legislative leaders about an alternative method to enhance the collection of gasoline and diesel fuel taxes by increasing the penalties for those businesses that report inaccurately or that sell untaxed fuel.
TVA in Lieu of Tax Payments — A new bill addressing the TVA payments to dry counties (HB858 by Rep. Jeff McLaughlin) is expected to be considered by the House County and Municipal Government Committee on Tuesday. This version of the legislation gradually transfers the growth in the state’s liquor taxes to dry counties and an equal amount of TVA payments is transferred from the dry counties to those served by the TVA.
While this approach would protect the monies paid to the dry counties, and hopefully put an end to the battle over the last few years, it would result in level funding for dry counties. The counties would not receive any growth from either funding source in future years.
County officials from dry counties are encouraged to contact their House members, or the members of the County and Municipal Government Committee, to express their opinions. The members are: Chairman Rep. Bill Dukes, Reps. Randy Wood, Steve McMillan, Mike Curtis, Owen Drake, Chris England, Earl Hilliard, Richard Laird, Jim McClendon, Frank McDaniel, Jeff McLaughlin, Jeremy Oden, Rod Scott, Butch Taylor, Pebblin Warren and Jack Williams.
Administrative Fee for Collection of Gasoline and Diesel — During debate on the State General Fund Budget this week, Rep. John Knight offered an amendment that adjusted the fee retained by the Alabama Department of Revenue as its reimbursement for collecting the taxes. The change, which fairly allocated the costs between the diesel and gasoline taxes, increased by $1 million the tax proceeds to be received by counties. Special appreciation is expressed to Rep. Knight for his leadership in making this adjustment.
The real-time status of all ACCA, Danger and local bills can be found by going to acca-online.org and following the steps under Legislative News. Please make copies of this report for all county officials and employees. And remember, the ACCA staff will update the Association's web site with the latest information on the activities in Montgomery.
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