Alabama Municipal Electric Authority Power Supply Conference Point Clear, Alabama | 4.17.15

Jonathan Hand| Electric Cities of Alabama

2015 General Session Update What is Electric Cities of Alabama?

 Based in Montgomery, Alabama

 36 cities across the state representing over 1 million consumers

 Government Relations

 Disaster Assistance ECA’s 36 Member Cities

• Albertville • Huntsville • Alexander City • LaFayette • Andalusia • Lanett • Athens • Luverne • Bessemer • Muscle Shoals • Brundidge • Opelika • Courtland • Opp • Cullman • Piedmont • Decatur • Robertsdale • Dothan • Russellville • Elba • Scottsboro • Evergreen • Sheffield • Fairhope • Sylacauga • Florence • Tarrant • Foley • Troy • Fort Payne • Tuscumbia • Guntersville • Tuskegee • Hartford • Hartselle 2015 General Session Update

30 Legislative Days

14 Days into Session

Expected adjournment early to mid June

Special Session ECA’s Highest Priority

 Oppose HB 276 – Municipal Utility License Tax  Introduced by Oppose Representative Chris House Bill 276 England (D-Tuscaloosa)  HB 276 would require any public, private or municipal utility corporation to pay the 2.2% license tax A closer look at the actual legislation

 “Each person, firm, or corporation, including any corporations or municipalities operating an electric or hydroelectric public or private utility; or a gas public or private utility; or any privately owned and operated wastewater system…or any other public, private or municipal utility, whether now paying or not paying the 2.2% shall be subject to the provisions of this section…” Does this include Municipal Water & Sewer?

 The Alabama Department of Revenue confirmed to ECA that this language did include municipal water and sewer  Confirmed this was a tax on ALL municipal utilities Where does this money go?

64.3% would go to 35.7% 64.3% the Special Mental General Special Health Fund Fund Mental 35.7% would go to Health the General Fund Fund Current Situation:

 HB 276 is before the House Committee on Ken Johnson Napoleon Bracy Ways and Means General Chairman Vice Chairman Fund  Pending public hearing

Victor Gaston John Knight

Mike Millican Arnold Mooney What action ECA has taken:

 Met with House and  Provided clarification of Senate leadership legislation text for members of the House  Focused on the House Committee on Ways and  Requested a public hearing Means General Fund  Weekly updates to association  Member cities activated  Has stayed in touch with Committee members Response has been positive

 Not voting for a tax…especially this one  Impacts my constituents negatively  This is dead – not to worry HB 276 Talking Points

Government taxing government

Tax on basic necessity of life

Not like purchasing a cigarette or an automobile

Raises rates on gas, water and wastewater in addition to electricity

Could raise garbage rates

Would increase utility rates for everyone – new business – existing business – and especially those on fixed or low incomes Governor’s talking points:

 “This is a fair tax.”

 “There is nothing more conservative than paying your debts and getting your financial house in order.”

 “We will pass a tax hike, even if it takes 10 special sessions.” Questions regarding HB 276?

Contact Information

Jonathan Hand| 334.954.3221 [email protected]