May 23, 2017 Political Update Alabama Contractors Association PO Box 2354 Montgomery, AL 36101 www.alabamacontractors.org Alabama Contractors Association An Independent Association of Concerned Contractors and Subcontractors Fighting to Preserve Our Competitive Bid Laws The Alabama Legislature 2017 Regular Session The 2017 Regular Session ended last Friday after what seemed like the longest legislative session ever. Thursday, the Statehouse resembled a ghost town while much of the day was spent reading the reapportionment bills in both chambers. Things then took a turn to the negative when racial tensions exploded over an email forwarded by Rep. Lynn Greer (R-Rogersville) that upset black House members. In the end, the e-mail was explained, there was much discussion in caucuses, apologies were made and the House members came together and finished its business, passing several significant pieces of legislation before adjourning Sine Die. LEGISLATION Passed Bid Bond Legislation ACT # 2017-279 SB72 by Sen. Allen. Our Bid Bond bill corrects the necessary language in §39-2-4. This will revert back to the original language in the Code of Alabama for all construction except ALDOT construction. The bid guarantee for construction on public works jobs will go back to five percent of the estimated cost but not more than $10,000, except for ALDO where the bid guarantee will be five percent but not more than $50,000. Historical Tax Credit: HB345 by Rep. Victor Gaston (R-Mobile), which expired in 2016, for the rehabilitation, preservation or development of certified historic structures passed. This bill will extend the tax credit for historic building renovations through 2022 while applying caps on the total tax credits to be claimed. HB 345 includes language that would require a historic structure to be at least 60 years of age to qualify for the credit, with 40 percent of credits being reserved for rural counties during the first six months of each year. www.alabamacontractors.org "1 May 23, 2017 Political Update Historic Monuments: Legislation known as the "Alabama Memorial Preservation Act of 2017," SB60 sponsored by Sen. Gerald Allen (R-Tuscaloosa), makes it tougher to alter in any way monuments and historically significant structures on public property. The version that was ultimately passed prohibits "the relocation, removal, alteration, renaming, or other disturbance of monuments located on public property which have been in place for 20 or more years." # The bill that came out of conference committee at the last hour impacts all property owned or leased by the state, county, or municipal government or by any other entity created by the legislature and a monument is defined as a statue, portrait, or marker intended at the time of dedication to be a permanent memorial to an event, a person, a group, a movement, or military service that is part of the history of the people or geography now comprising the State of Alabama.” An Architecturally Significant Building is defined as a building located on public property that by its very nature, inherent design, or structure constitutes a monument.” ! Under the final bill monuments and architecturally significant buildings in place more than 40 years are prohibited from any relocation, removal, alteration, or renaming without exception. ! Those in place more than 20 years but less than 40 years require waiver by a state committee. ! I seems as if little consideration was given to the preservation of these buildings as there was no definition of alternation in the legislation. I worked with the administration to see that schools were amended out of this legislation by an executive amendment. Workers' Compensation Regulations: HB 242 by Rep. Danny Garrett, R-Trussville, authorizes a corporate o$cer to remove himself or herself from workers' compensation requirements by submitting a written workman's compensation exemption request to the Alabama Department of Labor. Redistricting: Legislation required by a federal court order to redraw legislative districts passed, but not without controversy. HB571 is 584 pages long and SB403 is 273 pages long. Both bills were read at length before the final vote in both the House and Senate. Lawmakers will submit the plan to the panel of federal judges, and we will wait to see if it is approved. Alabama Senate votes 21 to 8 to approve House redistricting map.! Education Budget: The House vote was 98 to 0 to approve this year's budget increases spending from last year by $90 million—a 1.4 percent increase. Governor Ivey signed the education budget on Friday morning. ! The bill contains an increase in the appropriation to the Alabama Community College System for dual enrollment by $1 million, by $2.75 million for workforce development, an additional $200,000 to Advanced Placement and $200,000 to National Board Certification, $42,000 to agribusiness education, and, $1 million for teacher professional development.! Right-To-Life: Alabama voters next year will vote on a proposal to write into the Alabama! Constitution that Alabama is a "right to life" state. The measure is largely symbolic unless the U.S. Supreme Court overturns the Roe v. Wade decision legalizing abortion nationwide.! Autism: A House bill by Rep. Jim Patterson (R-Meridianville) and the Senate version by Sen. Tom Whatley (R- Auburn) mandating insurance companies cover autism therapies for some insurance plans passed. The bill requires coverage from companies with 51 or more employees to o%er autism coverage to their employees of as much as $580,000 in cumulative costs per www.alabamacontractors.org "2 May 23, 2017 Political Update child needing treatment through age 18. This would cover therapies for children up to age 18, and states that the mandate for public insurance plans wouldn't go into e%ect until December 31, 2018. Alabama is one of just a few states that do not require insurance to coverage therapies. The autism mandate forces private businesses of 51 to 100 employees to o%er! Judicial Override: In a bipartisan e%ort, Rep. Chris England (D-Tuscaloosa) and Sen. Dick Brewbaker (R-Pike Road) saw success in passing SB16, judicial override bill, which ends the practice of allowing judges to override a jury’s sentencing recommendation in death penalty cases.! Adoptions: Rep. Rich Wingo (R-Tuscaloosa) sponsored HB24 allowing faith-based adoption agencies to discriminate when placing children with families. Gov. Ivey has signed the legislation into law.! Alabama Jobs Act: The bill revises the existing Alabama Jobs Act that provides certain incentives and credits to qualifying economic development projects. The law caps the annual balance of outstanding incentives at $300 million, unless the Legislature by joint resolution or action of both houses votes to allow additional jobs act incentives. The law it replaces capped outstanding incentives at a total of $850 million over 10 years.! ! Governor Ivey signed the extension of the Alabama Jobs Act on Thursday during a ceremony in the Old House Chamber. HB 574 by Rep. Alan Baker, R-Brewton, will extend eligibility for project incentives until Dec. 31, 2020.! After House passage by a vote of 100-1-1, the Senate voted 31-0 on Tuesday to send HB 574 to Governor Ivey. She said with the help of the Alabama Jobs Act the state is pursuing projects which could result in as many as 11,728 new jobs and $13.4 billion in capital investment. This capital investment equals new construction. Criminal Record Expungement: HB 279 by Rep. Alan Baker, R-Brewton, expands the law governing the expungement of criminal records to include all felony charges including violent o%enses under certain conditions including malicious prosecution. The bill authorizes a person who has been charged with any felony o%ense to file a petition in the criminal division of the circuit court in the county in which the charges were filed to expunge records relating to the charge if the person has been found not guilty of the charge.! But a similar Senate criminal history expungement bill, SB 119 by Sen. Tom Whatley, R- Auburn, did not pass. It would have allowed for a youthful o%ender to have his or her criminal record expunged as currently allowed for adults under certain circumstances.! Crossover Voting: Alabama doesn't have political party registration for voting purposes but now has a limited version with SB 108 by Sen. Tom Whatley, R-Auburn. The bill will prohibit crossover voting in party primary runo%s, ensuring that only those who choose to vote in either the Democratic or Republican primary can vote in the respective runo%. The bill requires the Alabama Secretary of State's O$ce to create rules and procedures to prohibit crossover voting.! www.alabamacontractors.org "3 May 23, 2017 Political Update LEGISLATION Died Prison Construction: One of the most heated issues of the last two legislative sessions has been prison construction. The proposal, which saw multiple amendments and revisions throughout the session, would have built up to four new mega-prisons (three new prisons and replace Julia Tutwiler Prison for Women). In the final substitute the state would accomplish the construction by borrowing $845 million. ACA was successful in amending the legislation to remove all alternative delivery methods and require that any construction follow the competitive bid law for public works. Every revision and amendment to this bill ultimately held fast to our agreed amendment. Ultimately, the bill failed as lawmakers raised concerns about the price tag of construction, contract issues and the loss of jobs when existing prisons close. Many referred to our white paper from last year citing issues with the whole idea of constructing these mega prisons. Gov. Ivey, who was in favor of the final version of the bill, has not ruled out the possibility in calling a special session to deal exclusively with Prisons.