JUNE 3, 2019 POLITICAL UPDATE

Alabama Legislature: 2019 Special PROTECTING SMALL Legislative DEDICATED TO THE PROTECTING THE & MIDSIZE GC’S, PRESERVATION OF COMPETITIVE BID Session SUBCONTRACTORS, FREE ENTERPRISE LAW

ALABAMA CONTRACTORS ASSOCIATION

2019 Legislative Session Update

(June 3, 2019) On Friday, the adjourned sine die, concluding the 2019 Regular Legislative Session.

After a four-day legislative week the Legislature ended this session on Friday afternoon (May 31). Both budgets were finally approved.

Education Trust Fund Budget has been provide increase funding for various workforce development items. The Department of Commerce received a nearly $6 million increase for workforce development programs; the Alabama

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Community College System received a nearly $35 million increase; and several other education related programs received increases for STEM, workforce development and career readiness programs.

The Legislature also passed legislation to establish the Alabama Industry-Recognized and Registered Apprenticeship Program (AIRRAP) and the Alabama Office of Apprenticeship. This will allow Alabama employers to offer registered apprenticeships without USDOL approval. Also passed was legislation to allow apprentices to obtain occupational licenses and allow high school-age youths to participate in apprenticeship programs.

One of the last bills to gain final legislative approval this week is a constitutional amendment proposal that, if ratified by the Alabama electorate, would replace the elected state Board of Education with the Alabama Commission on Elementary and Secondary Education, which would be comprised of appointed commissioners. This would be a drastic deviation from the current system of education governance, and proponents of the bill believe that it will greatly improve Alabama's education system.

Finally, there were two notable complementary bills that Governor Ivey signed into law to expand high-speed broadband internet access across Alabama. HB400 will allow electric providers to deploy broadband infrastructure on existing electric easements, and SB90 will provide for certain broadband infrastructure project grants.

The Alabama Legislature has now completed one Special Session, which focused on infrastructure, and the Regular Session. It is almost certain that at least one more Special Session will be called later in the year to address Alabama's prison system.

____ECONOMIC DEVELOPMENT______

HB289 introduced by Representative (R-66, Brewton) o Description: HB289 would provide that certain economic development professionals are not required to register as a lobbyist. o Status:Enacted by the Governor

HB475 introduced by Representative (R-44, Trussville) o Description: HB475 is known as the the Alabama Rural and Agribusiness Jobs Act, and would create tax- related incentivizes for certain contributions made in qualifying areas of the state. o Status: did not receive final passage

HB540 introduced by Representative (R-63, Tuscaloosa) o Description: HB475 would create the “Alabama Incentives Modernization Act” to enhance existing economic development incentives for rural Alabama and add incentives for high-tech companies throughout the state. o Status: Enrolled, sent to Governor for enactment (5/30/19)

___EDUCATION & WORKFORCE DEVELOPMENT______

HB108 introduced by Representatives Alan Baker (R-66, Brewton) & (R-8, Decatur) o Description: HB108 would establish the Alabama Industry-Recognized and Registered Apprenticeship Program (AIRRAP); establish the Alabama Office of Apprenticeship to certify registered and industry- recognized apprenticeship programs; enhance the Apprenticeship Alabama tax credit; and incentivize employers to hire in-school youth apprentices. o Status: did not receive final passage

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SB119 introduced by Senator (R-12, Anniston) & others o Description: SB119 would terminate the adoption and implementation of "Common Core" standards. o Status: Did not pass to the provision to eliminate common was amended into SB397

SB295 introduced by Senator (R-3, Decatur) & others o Description: SB295 would establish the Alabama Industry-Recognized and Registered Apprenticeship Program (AIRRAP); establish the Alabama Office of Apprenticeship to certify registered and industry- recognized apprenticeship programs; enhance the Apprenticeship Alabama tax credit; and incentivize employers to hire in-school youth apprentices. o Status: Amended, passed House by vote of 97-0-4, third reading, Senate concurrence, sent to Governor for enactment (5/30/19)

HB462 introduced by Representatives Brett Easterbrook (R-65, Fruitdale) & Thomas Jackson (D-68, Thomasville) o Description: HB462 would expand the types of facilities available for use by public career technical classes. o Status: Enrolled (5/30/19)

SB358 introduced by Senators Clay Scofield (R-9, Guntersville) & (R-8, Scottsboro) o Description: SB358 would change the requirements for apprentices to obtain an occupational license and would allow individuals from 14-17 years of age to participate in apprenticeship programs certified by the Alabama Office of Apprenticeship. o Status: Did not receive final passage o Companion Bill: HB570 introduced by Representative Terri Collins (R-8, Decatur)

HB570 introduced by Representative Terri Collins (R-8, Decatur) o Description: HB570 would change the requirements for apprentices to obtain an occupational license and would allow individuals from 14-17 years of age to participate in apprenticeship programs certified by the Alabama Office of Apprenticeship. o Status: Sent to Governor for enactment (5/31/19) o Companion Bill: SB358 introduced by Senators Clay Scofield (R-9, Guntersville) & Steve Livingston (R-8, Scottsboro)

SB397 introduced by Senator Del Marsh (R-12, Anniston) & others o Description: SB397 would propose a constitutional amendment to, among other things, eliminate the state public school board, and replace it with a commission of appointed members. o Status: Constitutional Amendment: will be voting on by the people in the next election. o ___FIREARMS______

SB4 introduced by Senator Gerald Allen (R-21, Tuscaloosa) o Description: SB4 would repeal criminal statutes relating to the possession of firearms on certain properties and would require companies to go to extreme lengths to prohibit the possession of firearms on site by detection. o Status: Did not receive final passage

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___HEALTHCARE______

SB73 introduced by Senator Arthur Orr (R-13, Decatur) o Description: SB73 would prohibit pharmacy benefit managers from restricting pharmacies and pharmacists from disclosing costs information to patients on alternative drugs or other services. This legislation may have had negative consequences for benefit providers, but these concerns were addressed in subsequent versions of the bill. o Status: Sent to the Governor for signature

___LABOR & EMPLOYMENT ______

SB71 introduced by Senator Arthur Orr (R-13, Decatur) & others o Description: SB71 would require businesses with five or more employees to prove enrollment in E-Verify prior to the issuance of a county or municipal business license or permit, and would provide related penalties. o Status: Did not receive final passage

HB225 introduced by Representative (D-97, Mobile) & others o Description: HB225 would, among other things, prohibit employers from paying an employee less than other employees of another sex or race for substantially similar work; would require employers to affirmatively demonstrate specific factors in wage differentials; and would establish legal rights for employees while establishing legal limitations for employers. o Status: Sent to Governor for enactment, executive amendment offered and accepted by both chambers, returned to Governor for enactment (5/30/19)

SB193 introduced by Senator Arthur Orr (R-13, Decatur) o Description: SB193 would, among other things, increase individual unemployment benefits by an amount of $10.00 per week, and would decrease the number of eligible weeks for an individual to receive unemployment benefits from 26 weeks to 14 weeks. o Status: Sent to Governor for Signature o Companion Bill: HB364 introduced by Representative Danny Garrett (R-44, Trussville)

HB364 introduced by Representative Danny Garrett (R-44, Trussville) o Description: HB364 would, among other things, increase individual unemployment benefits by an amount of $10.00 per week, and would decrease the number of eligible weeks for an individual to receive unemployment benefits from 26 weeks to 14 weeks. o Status: The companion bill passed o Companion Bill: SB193 introduced by Senator Arthur Orr (R-13, Decatur)

HB479 introduced by Representative (D-85, Newville) & others o Description: HB479 would reduced the legal age of Class A CDL recipients from 21 years old to 18 years old for the purposes of intrastate commerce. o Status: Signed into law (5/23/19) o Companion Bill: SB318 introduced by Senator Donnie Chesteen (R-29, Geneva) & others

SB318 introduced by Senator Donnie Chesteen (R-29, Geneva) & others

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o Description: SB318 would reduced the legal age of Class A CDL recipients from 21 years old to 18 years old for the purposes of intrastate commerce. o Status: The companion bill passed o Companion Bill: HB479 introduced by Dexter Grimsley (D-85, Newville) & others

HB516 introduced by Representative Arnold Mooney (R-43, Birmingham) & others • Description: HB516 would prohibit the sale or distribution of human or synthetic urine or other substances intended to create deceptive drug screening results. • Status: this bill did not pass • Companion Bill: SB345 introduced by Senator Cam Ward (R-14, Alabaster)

SB345 introduced by Senator Cam Ward (R-14, Alabaster) • Description: SB345 would prohibit the sale or distribution of human or synthetic urine or other substances intended to create deceptive drug screening results. • Status: this bill did not pass • Companion Bill: HB516 introduced by Representative Arnold Mooney (R-43, Birmingham) & others

HB541 introduced by Representative Wes Kitchens (R-27, Arab) • Description: HB541 would require an employer to utilize specified guidelines in order to determine whether a worker is engaged in employment for purposes of employment benefits and tax liabilities. This is intended to make uniform Alabama and IRS guidelines. • Status: This bill did not pass

SB399 introduced by Senator Vivian Figures (D-33, Mobile) & others • Description: SB399 would prohibit an employer from paying any of its employees at wage rates less than those paid to employees of another sex or race for equal work. • Status: ITHis bill did not pass

___MEDICAL MARIJUANA______

HB243 introduced by Representative (R-10, Madison) & others • Description: HB243 would allow for medical marijuana use. This legislation presents serious employer protection concerns. • Status: Introduced, referred to House Health Committee (3/20/19) • Companion Bill: SB236 introduced by Senator (R-1, Florence)

SB236 introduced by Senator Tim Melson (R-1, Florence) o Description: SB236 would allow for medical marijuana use. This legislation presents serious employer protection concerns. o Status: Substituted, amended, passed House by vote of 81-17-4, third reading, Senate concurrence (5/31/19) o The Substitute Bill establishes a study committee and does not legalize medical marijuana. o Companion Bill: HB243 introduced by Representative Mike Ball (R-10, Madison) & others

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___MISCELLANEOUS______

HB66 introduced by Representative Wes Allen (R-89, Troy) o Description: HB66 would require legislative approval of agency-promulgated rules that would have a $1 million economic impact on businesses. o Status: This bill did not pass o Second reading, placed on calendar (4/25/19) o Companion Bill: SB361 introduced by Senator Jabo Waggoner (R-16, Birmingham)

HB160 introduced by Representative Joe Lovvorn (R-79, Auburn) o Description: HB160 would authorize autonomous vehicles operated by an automated driving system. o Status: The companion bill of this bill passed o Companion Bill: SB47 introduced by Senator Gerald Allen (R-21, Tuscaloosa)

SB47 introduced by Senator Gerald Allen (R-21, Tuscaloosa) o Description: SB47 would authorize autonomous vehicles operated by an automated driving system. o Status: Approved by committee, second reading, placed on calendar (5/23/19) o Amended in the House, Senate concurred with House version (5/29/19) o To the Governor for signature o Companion Bill: HB160 introduced by Representative Joe Lovvorn (R-79, Auburn)

HB329 introduced by Representative (R-86, Dothan) o Description: HB329 would clarify that delivery licenses, which are required for deliveries made within municipalities in which a business has no physical presence, apply to an entire business, and not just a single delivery vehicle. o Status: Introduced, referred to House Commerce and Small Business Committee (4/3/19) o Approved by committee (4/10/19) o Second reading; placed on House calendar (4/11/19) o Third reading; Amended; passed House by vote of 100-0; first Senate reading; referred to Senate Fiscal Responsibility & Economic Development Committee (4/16/19) o Approved by committee (4/17/19) o Second Senate reading (4/18/19) o Third reading, passed Senate by vote of 28-0 (5/21/19) o Sent to Governor for Signature

SB361 introduced by Senator Jabo Waggoner (R-16, Birmingham) • Description: SB361 would require legislative approval of agency-promulgated rules that would have a $1 million economic impact on businesses. • Status: This bill did not pass. • Companion Bill: HB66 introduced by Representative Wes Allen (R-89, Troy)

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___TAXES______

HB14 introduced by Representative (R-23, Scottsboro) • Description: HB14 would set certain eligibility requirements for various public welfare/benefit program recipients. There is concern that this legislation would take Alabama out of conformity with federal law, ultimately resulting in a higher employer tax burden. • Status: This bill did not pass

SB78 introduced by Senator Arthur Orr (R-13, Decatur) & others o Description: SB78 would establish the Alabama Innovation Act to provide for research and development enhancement grants to certain Alabama companies. o Status: Substituted, amended, approved by committee, second reading (5/22/19) o Substituted, passed House by vote of 103-0, third reading, Senate concurrence (5/31/19) o Sent to the Governor for Signature

SB143 introduced by Senators Dan Roberts (R-15, Birmingham) & (R-13, Opelika) o Description: SB143 would streamline registration of vehicle fleets by allowing fleet owners to register fleets through the Department of Revenue rather than through local licensing offices. o Status: Companion bill passes o Companion Bill: HB278 introduced by Representative AJ McCampbell (3/21/19)

HB278 introduced by Representative AJ McCampbell (D-71, Livingston) o Description: HB278 would streamline registration of vehicle fleets by allowing fleet owners to register fleets through the Department of Revenue rather than through local licensing offices. o Status: Enacted by the Governor o Companion Bill: SB143 introduced by Senators Dan Roberts (R-15, Birmingham) & Randy Price (R-13, Opelika) (3/19/19) o HB424 introduced by Joe Lovvorn (R-79, Auburn) & others o Description: HB424 would establish the Alabama Innovation Act to provide tax credits for certain research and development activities. o Status: This bill did not pass

SB307 introduced by Senator Gerald Allen (R-21, Tuscaloosa) o Description: SB307 would allow businesses that pay a municipal business license based on gross receipts to deduct from gross receipts any excise tax imposed by the federal, state, and local governments. o Status: This bill did not pass

___TRANSPORTATION & INFRASTRUCTURE______

SB90 introduced by Senator Clay Scofield (R-9, Guntersville) & others o Description: SB90 would expand the definition of an “unserved area” in regards to broadband. o Status: Signed into law by Governor (5/30/19)

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HB71 introduced by Representative April Weaver (R-49, Alabaster) o Description: HB71 would set safety and cleanliness requirements for the design, construction, permitting, and operation of certain water distribution facilities. o Status: This bill did not pass o Companion Bill: SB53 introduced by Senator Cam Ward (R-14, Alabaster)

SB53 introduced by Senator Cam Ward (R-14, Alabaster) o Description: HB71 would set safety and cleanliness requirements for the design, construction, permitting, and operation of certain water distribution facilities. o Status: This bill did not pass o Companion Bill: HB71 introduced by Representative April Weaver (R-49, Alabaster)

HB149 introduced by Representative Danny Garrett (R-44, Trussville) • Description: HB149 would amend the recently enacted Rebuild Alabama Act (fuel tax) to sunset the automatic indexing after 20 years. • Status: This bill did not pass

SB268 introduced by Senator Arthur Orr (R-13, Decatur) & others o Description: SB268 would transfer $10 million of fuel tax revenue to ADECA for the purpose of inland port development and management. o Status: THIs bill did not pass

HB400 introduced by Randall Shed (R-11, Cullman) & Nathaniel Ledbetter (R-24, Rainsville) o Description: HB400 would authorize electric providers to deploy broadband systems. o Status: Signed into law by Governor (5/30/19) o SB315 introduced by Senator Dan Roberts (R-15, Birmingham) & others o Description: SB315 would reform the procedures and requirements regarding the "One-Call Notification System" used by excavators and underground facility operators. o Status: Awaiting Governor’s signature

ACA Specific Information

Prison reform is still a very hot topic. There will be a Special Session of the Alabama legislature it address prison reform and construction. One bill of the 5 prison bills that will be addressed in the Special Session will deal with prison construction. The administration is pushing for Design-Build as the method of construction. I have had multiple meetings with legislators and the Governor’s Chief of staff regarding this issue. I have been quite clear that if the state is the owner of this project and/ or if state dollars are used in this construction project they must follow the competitive bid law. Additionally, if they choose to introduce legislative to circumvent or change the competitive bid law I will be fighting them on this issue.

The Special Session is expected to take place in September or October.

SB315 – One Call System- This bill would require all operators of underground facilities to join the "One-Call Notification System." Under existing law, a person conducting excavation on property, or demolition near property,

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where a public easement exists, or where an underground facility operator such as a utility has an easement, is required to notify the underground facility operator so that the underground facility operator can mark the location of its underground facilities. To facilitate notification, the law has authorized the formation of a "One-Call Notification System" which receives and processes the notices. Enrolled. Awaits Governor’s Signature

SB295 by Orr would create establish the Alabama Industry Recognized and Registered Apprenticeship Program Act. This bill would create the Alabama Office of Apprenticeship to register apprenticeship programs and to certify industry recognized apprenticeship programs in the state in lieu of the federal office of apprenticeship that currently administers state registered apprenticeship programs. It would also authorize the Alabama Office 19 Apprenticeship to provide a federally recognized state apprenticeship completion credential for registered and industry recognized apprenticeships. It would provide tax credits for apprenticeships and would allow for on the job training. Just introduced. Ready to Enroll

HB108 - Would establish the Alabama Industry and Registered Apprenticeship Program Act and would establish the Alabama Office of Apprenticeship created to administer state programs in lieu of a federal office, provide for an apprenticeship tax credit and aggregate apprenticeship tax credit increases. Out of Committee in the House

SB168 Under existing law, an individual who makes plans and specifications for or administers the erection, enlargement, or alteration of any single-family residence is not required to register as an architect with the State Board for Registration of Architects. This bill would expand the exemption to include townhomes, duplexes, and other buildings containing single family residence units, regardless of size, so long as the structures are built according to certain codes. No movement on this bill.

HB 27 – Competitive Bid Law: This bill would add “minority-owned business” to the exemption for lowest bid requreiment. Under existing law if the lowest bid for an item of personal property or services is received from a foreign entity, where the county, a municipality is the awarding authority, the awarding authority may award the contract to a responsible bidder whose bid is no more than 10 percent greater than the foreign entity if the bidder has a place of business within the local preference zone or is a responsible bidder from a business within the state that is a woman-owned enterprise, an enterprise of small business, as defined in Section 25-10-3, a veteran-owned business enterprise, or a disadvantaged-owned business enterprise. Minority-owned business would be added to this list. No movement on this bill.

SB71 - would require businesses with five or more employees to prove enrollment in E-Verify prior to the issuance of a county or municipal business license or permit, and would provide related penalties. Approved by committee; placed on calendar.

HB 127 SB 62 -Faulkner and Garrett & Smitherman: Under existing law, a person who has entered into a written contract with a residential roofing contractor to provide goods or services to be paid from the proceeds of a property and casualty insurance policy is allowed to cancel the contract within business days after the contract has been 14 entered into if the insured has received written notice from the insurer that all or part of the 16 claim is not a covered loss under the insurance policy. This bill would allow a person to cancel a roofing contract within five days of receiving written notice from the insurer that all or any part of the claim or contract is not a covered loss under the insurance policy or that the covered claim will not be sufficient to cover the amount of the contract. HB127 was indefinitely postponed and SB62 was Enacted

SB167 - Under existing law, the Board of Heating, Air Conditioning, and Refrigeration Contractors defines an apprentice as a person other than a certified heating, air conditioning, or refrigeration contractor, who is engaged in learning and assisting in the installation, service, or repair of a heating, air conditioning, or refrigeration system and working under the direct supervision of a certified heating, air conditioning, or refrigeration contractor, and who has successfully fulfilled the voluntary registration requirements of the board, and has been registered by the board as an apprentice for the current year. This bill would allow the board to replace the definition, qualifications, and registration requirements for the positions of an apprentice with definitions, qualifications, and registration requirements for the positions of Technician I and Technician II. SB167 was indefinitely postponed

SB242 – Strictly relating to home builders. This bill would create the Alabama Construction Trade Academy Fund in the State Treasury. The fund would be comprised of federal, state, and private funds through direct budgetary funding

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and grants, and would be used for the expansion of construction trade education. This bill would require the Alabama Energy and Residential Codes Board to develop a statewide program to increase the availability of construction trade education by providing educational grants for public and private construction trade schools. This bill would require the Energy Division of the Alabama Department of Economic and Community Affairs to administer the program. Enrolled

ACA www.alabamacontractors.org PO Box 2354 Montgomery, AL 36101 phone: 334-868-3139

If you would like to join ACA please visit our website at www.alabmacontractors.org

If you have any quesons about this or any piece of legislaon please contact Heather Coleman Davis at 334-868-339 or by email at [email protected]

For more informaon about other legislaon you may visit www.heathercolemandavis.com

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