Document ypJQvbbB8VYw0x1pdXLqzkM66

A regular session publication April 18,1997 Issue Eleven House, Senate continue work on budgets The House passed the $949 million general fund budget on Tuesday while the Senate worked on the education budget. The Senate took no action on the education budget due to a filibuster by Sen. Phil Poole. On Thursday, the House passed the Governor's $700 million road bond issue. The Senate approved a $3.6 billion education budget for 1997-98. The biggest difference between the House and the Senate version is the funding for universities. The Senate version would give universities a 2 percent increase while the House version provides slightly more than 1 percent. The education budget now goes to conference, and the general fund budget goes to the Senate. The House on Thursday wasted no time in dealing with the welfare reform package which has already passed the Senate. Four of the five bills were discussed, voted on, and passed within about two hours. With few exceptions, the legislation is aimed at meeting the demands of the new federal welfare reform mandates. SB 457, the Personal Responsibility and Work Opportunity Reconciliation Act, was held over until the House reconvenes next Tuesday. Led by Rep. John Knight, a group of lawmakers raised several questions about this rather detailed piece of legislation. Among other things, SB457 outlines plans by which the state will put welfare recipients to work. It is also the bill containing a variety of tax incentives for businesses hiring welfare recipients in counties with chronically high unemployment. Tort reform update Attention continues to be focused on the Senate in the debate over tort reform. Governor James called a press conference on Wednesday to challenge the Senate to take action on his civil justice reform package. Three of his four bills have passed the House and are pending in the Senate Judiciary Committee, where they have been held without action since Feb. 25. Lt. Governor Siegelman was quoted this week as saying that the Senate would take up the education budget and the general fund budget before it would consider tort reform. The Senate passed the education budget this week and could consider the general fund budget at anytime now that it has passed the House. continued on page two Tax bills clear committee SB 598 by Sen. Dewayne Freeman (DHuntsville) and Rep. Ralph Burke (DRainsville) was passed by the House Ways & Means Committee on Wednesday. SB 598 is the Income Tax Conformity Act which makes changes in several areas of state law to conform to federal tax laws. BCA proposed the bill which became necessary when Congress passed the Small Business Job Protection Act of 1996. SB 598 was substituted by the Committee in order to make a number of changes requested by the Depart ment of Revenue and other interested parties. This bill is now ready to be considered by the full House. HB 917 by Rep. Ralph Burke (D- Rainsville) also passed the House The Alabama Legislature has only nine Ways & Means Committee on meeting days left in its current session Wednesday. HB 917 clarifies the which means only nine days remain to definition of "ingredient or compo- solve Alabama's lawsuit abuse prob- nent" for purposes of the sales and uselem. The package of tort reform bills taxes. For a number of years, the that have been endorsed by the Gover- definition under the sales tax and the nor, Attorney General and Speaker of use tax were different which creates a the House and approved by an over problem for businesses and the whelming majority of the House of Department of Revenue. This legisla- Representatives is currently in the tion, proposed by BCA and other Senate Judiciary Committee. Please associations, provides for the same contact your State Senator and ask definition under both taxes. him or her to do everything possible to bring the Governor's bills to the floor for full and open debate. Time is running out. Business Council of Alabama Post Office Box 76 Montgomery, Alabama 36101-0076 (334) 834-6000 OSW 133122 STLCOPCB4033080 1997 Regular Session/97-11 Business Council ofAlabama Tort reform update continuedfrom page one The Senate Judiciary Committee met Thursday morning and had the tort reform bills as part of the agenda, but the bills were carried over until the following week. Chairman Roger Bedford noted that he is still trying to work out a compromise between all sides and that the bills would probably be considered next week. It is extremely importantforyou to contact your Senators now to let them know that you support the Governor's package ofbills and that Alabama's lawsuit abuse problem needs to be resolved. As long as we continue to have lawsuit abuse problems in Alabama, we are at a competitive disadvantage with our neighboring states. The Legislature has only nine more meeting days to solve this problem - time is running out. Please see the box on this page tofind out how to contact your Senator. ACJRC has worked to keep this issue at the forefront for legislators. The ad on page four ran Wednesday in most of the major dailies. Other ads are also being created. We will keep you updated on our media efforts as they progress. Unemployment benefit increase moving SB 324 (Denton, D-Florence), a compromise bill supported by both business and labor, was reported from the House Business and Labor Com mittee Wednesday. This legislation would increase the maximum weekly unemployment benefit by $10 and would raise the threshold required to qualify for unemployment benefits by raising the minimum benefit by $23. The bill also would allow the Depart ment of Industrial Relations (DIR) to use income tax refund setoff to collect overpayments ofunemployment benefits. The bill is expected to move to the floor of the House for final passage in the next few weeks. Broad-based coalition fights mandated chiropractic benefits legislation he BCA is part of a large coalition of associations, local governments and workers' compensation funds that has formed to fight legislation that seeks to change workers' compensation law that is just beginning to produce positive results for Alabama's employers. In 1992 when Alabama's workers' comp rates were among the highest in the nation, the Business Council led a successful fight to reduce rates and increase the availability of coverage for employers. Now, legislation introduced in the state legislature (HB 189 and SB 127) attempts to tamper with the very system that is helping to reduce costs by legislating greater market share for chiropractors in workers' comp claims. These bills would grant chiropractors preferred status among workers' compensation physicians by mandat ing that upon the request of an injured employee the initial treating physician in workplace injuries shall be a chiropractor. The bill goes on to dictate that ifthe employee is not satisfied with the initial treating physician, a chiropractor shall be included on the current panel of four physicians from which the employee may select treatment-at the employer's expense. This legislation will impair an employer's ability to manage WC claims, increase costs and set the stage to enact other costly mandated benefits. No other health care provider has a legislated mandate to handle WC claims. Why should chiropractors be singled out to receive special treat ment? This bill is an attempt to legislate market share for chiroprac tors. If chiropractors are successful, be assured that other health care providers will line up to demand their "fair share." Chiropractors currently have the same access to WC claims as other medical specialties but they want more. The chiropractors are the only beneficia ries of this legislation. Employers and employees stand to lose through the enactment of costly mandates and the infringement on employer's ability to select and approve the appropriate medical providers for injured employ ees. Recommended Action: Contact your local legislators with a phone call, fax or letter and request that they oppose this legislation. You may fax a letter, addressed to your legislator, to Ben Patterson at BCA's toll free fax 1-800 221-8185 to be hand delivered. BCA Governmental Affairs staff workingforyou Toll Free Toll Free Fax 800/221-8184 800/221-8185 How to contact your legislators House Alabama State House 11 South Union Street Montgomery, AL 36130 334-242-7600 Senate Alabama State House 11 South Union Street Montgomery, AL 36130 334-242-7800 DSIni 133123 Legislative Bulletin STLCOPCB4033081 'Business Council ofAlabama 1997 Regular Session/97-11 Federal Issues For more information please call Riley Sikes at 334/240-8759 AIR QUALITY STANDARDS Two House Small Business Subcommittees held a joint hearing this week-to examine the Environmental Protection Agency's compliance with the Small Business Regulatory Enforcement Fairness Act (SBREFA) which requires federal agencies to review the impacts of new regulations on small business. In accordance with SBREFA, EPA must prepare a regulatory flexibility analysis and convene a Small Business Advocacy Review Panel to allow small firms to give their perspective. Although the Small Busi ness Administration is one ofmany federal agencies concerned with the proposed air quality standards, EPA maintains that the rules are mandates on states rather than business and are, therefore, not subject to SBREFA. Please contact each member of the Alabama delegation thanking them for their continued attention to this issue and urging Congressional oversight of EPA on the proposals. If you would like information on how these proposed regula tions could impact your business, please contact Riley Sikes at 334-240-8759. Administration's FY 1998 budget proposes eliminating the capital gains tax on most principal home sales, the Presi dent has indicated he could accept broader cuts in the context of a balanced budget plan. LABOR DEPARTMENT A full Senate vote on Mobile native Alexis Herman as Secretary of Labor was poslponed until Republican Leader ship receives clarification of two executive orders President Clinton is preparing to issue. On Monday, Vice President Gore reiterated the Administration's commitment to change federal contracting rules allowing contracts only to companies with "satisfac tory" labor and employment practices and the Administration's encouragement of federal agencies to consider labor agreements for government-funded projects. The BCA stands ready to fight any attempt to politicize the contracting process. CAPITAL GAINS TAXES Senate Majority Leader Trent Lott (R-Mississippi) pre dicted that President Clinton would sign into law this year a reduction in the capital gains tax. Although he favors complete elimination of the LINE ITEM VETO A federal court ruled in Byrd v. Raines that the line item veto law (Public Law 104-130) is an unconstitutional transfer of law-making power to the executive branch. The case will likely go to the tax, Lott believes lowering the rate to 19.8 percent is an How to Contact Your U.S. Representatives Supreme Court. acceptable proposal to both U.S. SENATE (202)224-3121 Unless the Supreme Court Congress and the White U.S. HOUSE (202)225-3121 stays the ruling, the law House. Although the remains void. Environmental Issues SB 683 by Sen. Bedford (D-Russellville) and companion bill HB 1028 by Rep. Millican (D-Hamilton) would establish State Parks and other state-owned land as the "Alabama Wilderness System." The legislation would place restrictions on the Dept, of Conservation and Natural Resources and the Dept, of Environmental Management in management of land and waters within and adjacent to any area designated as a wilderness area. BCA opposes this legislation. SB 574 by Sen. Mitchell (D-Luveme) and companion bill HB 838 by Rep. Guin (D-Carbon Hill) would set up a legislative oversight committee to monitor ADEM in the establishment of a State Implementation Plan for ozone. ADEM has written an amendment, which BCA supports. BCA has a neutral position on the overall legislation. Neither bill moved this week in either house. The River Basin Compacts legislation which BCA sup ported early in the session has also passed the Florida legislature. The legislation has passed in Alabama, Georgia and Florida and now goes to Congress. The legislation has to go through the process in Congress and appears to be heading to the Judiciary Committee of each body. Please let your Senator and Congressman know of your support for this legislation. DSW 133124 Legislative Bulletin 3 STLCOPCB4033082 '997 nebular Session/97-11 Business Council ofAlabama Campaign & election reform Rep. Mike Box (D-Mobile) offered a substitute to his bill creating the non partisan election ofjudges in the House Constitution & Elections Committee this week. The substitute, as adopted, limits the non partisan races to circuit and district court elections. With only a few minutes of meeting time available before the full House convened, Republican members of the committee successfully used proce dural tactics to stall, pre venting a vote on the bill by the Committee. As a result, Chairman Jack Venable (DTallassee) adjourned the committee meeting without having acted on any legisla tion on the committee agenda. THOSE WHO FEED OFSFAUY WTHSEUY TDOABNU'TSE SEETHE PR06IENI Introductions of note HB 1012 by Rep. Nelson Starkey (D-Florence) clarifies that current law exempts from use tax only that property sold at retail in Alabama on which sales tax was paid. A recent court decision necessitated this legislation and could have the effect of decreasing use tax revenue by as much as 100%, which would mainly impact our schools. HB 1018 by Rep. Frank McDaniel (D-Albertville) reaffirms the powers of the courts and the Legislature under the separation of powers doctrine and the constitution and statutes of the state. THE REST OF US DO. $8.46 Million I $8.84 Million $2.12 Million Mississippi Tennessee Georgia Alabama "Punitive damages offtmed, 1989-1996. George L Priest, Professor oi lew, Yale tuwSdiool TheTrial lawyers would have you believe that lawsuit abuse is not a problem in Alabama. . They say that the "business community" is making the whole thing up. The truth is, since 1989, Alabama has been hitfor s80 million by those living off lawsuit abuse. Thafs ten times more than our sister states! Thafs a real problem that needs fixing. Because lawsuit abuse costs each ofus every time we buy essentials like food and medicine. TheAlabama Senate now has a chance to end lawsuit abuse in our state. TheAlabama House has sent the Senate the Governor's package oflawsuit reform bills thatwill putus in linewifti our aster states. Thafs a reasonable solution to a real problem. So the next timeyou hear someone that lawsuit abuse is not a problem ' iama, show them this ad. LAWSUIT ABUSE ABUSES All OF US. BrwiforbyAld]amaGviJusticeRefbmiCo(nriltee,JohnMcMian,CtniiiavBoxl1594,Montgoniery,AL36111 DSW 133125 legislative Bulletin STLCOPCB4033083