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This Week in the Alabama Legislature…April 25, 2008
Download a printer friendly version of the April 25 Weekly Report.
With the end of this year’s legislation session screaming toward Montgomery like a runaway train, the Alabama Legislature recessed Thursday with both chambers deadlocked on issues critical to salvaging the state’s budgets. Only six work days remain in the 2008 regular session. The activities of next week will clarify whether the state spending bills and other legislation has a reasonable chance of gaining final passage before the midnight on May 19 – the session’s final work day.
The House spent both of its work session days this week on changes in the state’s business income tax code. The changes, opposed by the business community, are critical to balancing the education budget. For at least the 10th straight work session the Senate was handcuffed by a back-and-forth filibuster preventing the consideration of even the most non-controversial of legislation.
On the positive side, the delays have all-but-killed the controversial bills opposed by ACCA, including the legislation allowing sheriffs to jump over the county budget and the proposed repeal of the annual reappraisal process. ACCA staff continues to monitor all bills that would have a negative impact on county governments and will advise counties if any specific action is necessary.
Sales Tax on Food — HB274 by Rep. John Knight, which removes the state sales tax from most unprepared food, has been approved by a Senate committee and is ready for floor action – if the filibuster can be broken. It is very important that county officials make contacts on this legislation because corrective action is going to require a very unusual approach.
Because the vote on the legislation was so close (and controversial) on the House floor, it will be almost impossible to amend HB274 in the Senate. However, the bill contains a VERY serious problem for counties in the wording of an unexpected floor amendment adopted by the House. Unless corrected, the problem could require county commissions to take affirmative votes in order to reinstate the LOCAL sales tax on food. Obviously, this is a very serious matter.
Rather than amending HB274, corrective language can be added in County Modernization Act (HB110 by Rep. Richard Lindsey). This language would ensure that the local sales tax on food would continue to be collected unless removed by vote of the county commission. It is important that county officials contact their Senators BEFORE TUESDAY with a very clear message:
County Governments do not oppose the bill that removes the sales tax collected on food, but it is critical that HB 110 be considered on the Senate floor at the same time. It is also critical that the ACCA-amendment to HB110 be added on the Senate floor — otherwise HB274 will have a significantly-negative impact on counties.
County officials or employees who have questions about this legislation are encouraged to contact ACCA staff.
Issues Contained in the State General Fund Budget — The House-passed version of the State General Fund Budget (HB328 by Rep. John Knight) contains two issues that need attention from county government. The bill is now pending final passage in the Senate, so contacts should be made with SENATORS.
First, a House-passed amendment that adjusted the fee retained by the Alabama Department of Revenue as its reimbursement for collecting gasoline and motor fuel taxes would provide additional road and bridge revenue for counties. 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. It is important that Senators be asked to retain the House-passed language on this issue.
Second, two traditionally-routine line items were omitted in the House-passed version of the budget for the state Emergency Management Agency. Without the specific line items, it is uncertain whether counties will continue to receive the annual allocation for the operation of local EMA departments (some $311,000 statewide) or the salary supplements for local EMA directors established by a 2007 act of the legislation (expected to be about $200,000 in next year’s budget).
Senators should be asked to support reinstating the two line items for local governments when HB 328 reaches the Senate floor.
ACCA BILLS
Five ACCA bills have passed the House and are ready for final approval in the Senate, should the filibuster be broken in the coming days. Below is a brief overview of the five bills that have been detailed in several earlier reports.
If the filibuster is removed, there will be a mad rush by almost every organization in Montgomery. In order for county legislation to be considered in the small amount of time that remains, county officials should make contacts on these bills IMMEDIATELY.
Trust Fund Bill — This week a Senate committee 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. The Senate sponsor is Sen. Myron Penn.
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 awaits action in the Senate Judiciary Committee. The 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 and is critical to correcting a problem related to the collection of sales tax fro food purchases. The Senate sponsor is Sen. Hank Sanders.
Bid Law Amendments — The ACCA bill (HB100 by Rep. Pebblin Warren) 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 Senate sponsor is Sen. Bobby Denton.
In the House, there is at least one bill scheduled for action in the House Government Operations Committee next week with very dangerous implications for counties as introduced. HB838 by Rep. Rod Scott, as introduced, would establish a legislative-dominated commission that would approve all bond issue refinancing and defaults by county and municipal governments. Following the public hearing held a few weeks ago, the sponsor agreed to work on changes to remove counties’ objections, and it is hoped that a substitute will be offered in committee. Counties should contact committee members prior to Wednesday asking that they support the ACCA’s position on this bill. Committee members are: Chairman Rep. Oliver Robinson, Reps. Lea Fite, Arthur Payne, Barbara Boyd, Merika Coleman, James Fields, Victor Gaston, Mike Hill, Ralph Howard, Mike Hubbard, John Letson, Pat Moore, Johnny Morrow, Harry Shiver and Butch Taylor.
Funding for Road and Bridge Activities — It is now clear all four bills introduced by the ACCA in an effort to increase road and bridge funding are dead for this session. Several factors contributed to the inability to secure broad-based support for this important legislation – perhaps the most significant being the recent spike in gasoline prices at the retail level.
Other factors also had a negative impact on the bills, including the legislation to change the collection point for motor fuels and the bill to enact a second County Bridge Bond Issue. ACCA staff will be working with the county officials and employees as well as other organizations to develop a package for the 2009 session. Revisions to the bills will be necessary as result of negotiations held during this session. In the coming weeks, ACCA staff will provide details on the issues raised during the session.
Special appreciation is expressed to all those who worked to generate support for this issue prior to and during the session. Simply put, the work has laid the foundation for the passage of legislation in the coming year, and the ACCA remains confident the Alabama Legislature will address this important issue.
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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