MONTGOMERY, Ala., February 12, 2021 — The Alabama Legislature met for a second consecutive three-day week, meaning even though the 2021 session began just last week, it is now one-fifth complete. Week 2 saw the quick passage of three major pro-business priorities, the introduction of the most comprehensive gaming legislation in many years, and the advancement of the association’s top legislative priority, the Elderly and Vulnerable Adult Financial Protection Act of 2021.
In Alabama, it takes a minimum of five legislative days to pass a piece of legislation. This short time frame is normally reserved, if at all, for mundane non-controversial bills introduced late in a session. Thanks to a strong, bipartisan push from the House, Senate, and governor’s office, two important pro-business bills passed this week on the fifth legislative day, while a third was passed a day later.
- SB30 by Arthur Orr (R-Decatur) provides businesses, healthcare providers, churches, and other entities with civil immunity from COVID-related lawsuits, so long as the covered entities followed proper federal and state health protocols. This agreed-upon legislation was introduced late in the COVID-shortened 2020 session, and much of the language in the bill was included in an Executive Order issued last May. The legislation was at the top of everyone’s “must pass” list and was the first bill to pass the Senate this session.
- HB170 by Danny Garrett (R-Trussville) makes clear that tax credits and stimulus payments provided by the federal CARES Act are excluded from state income taxation. The legislation also includes several other important tax provisions related to business income apportionment, business expense deductibility, and pass-through taxation. It passed the House unanimously on the third legislative day.
- HB192 by Bill Poole (R-Tuscaloosa) renews and expands three important economic development incentive programs used by the state to lure companies to Alabama.
- Credits available under the Alabama Jobs Act, which expired in 2020, would be extended to 2023, with the amount of credits increasing from $300 million to $325 million in 2021 and $350 million in 2022.
- Credits available under the Growing Alabama Act, which also expired in 2020, would be extended to 2023, with the amount of credits increasing from $10 million to $20 million annually.
- Credits available under the Alabama Port Credit program would be expanded to include more creditable opportunities for automotive companies.
To illustrate the bi-partisan support of these bills, the combined vote count was 357-6.
Sen. Del Marsh (R-Anniston) brought his gaming legislation, Senate Bill 214, to the Senate floor on Thursday before carrying it over until at least Feb. 23, when the Legislature returns after a planned one-week break. The bill, which would not become effective unless approved by Alabama voters, touches on nearly every part of the gaming spectrum: lottery, casino games, and online sports betting. Lottery proceeds would be dedicated for college or workforce development scholarships, while revenues generated at the five casinos sanctioned by the bill would be split between a Gaming Trust Fund and the State General Fund. No doubt this legislation will be a hot topic in the State House for the foreseeable future.
Finally, Senate Bill 181, the Elderly and Vulnerable Adult Financial Protection Act of 2021, was unanimously approved by a Senate committee on Wednesday and by the full Senate on Thursday. This bill, sponsored by Senate Banking and Insurance Committee Chairman Sen. Shay Shelnutt (R-Trussville), is the association’s top legislative priority and now goes to the House, where it will be managed by House Financial Services Committee Chairman Rep. Chris Blackshear (R-Phenix City). The bill is expected to be heard in committee on Feb. 24.
Bills of importance to the banking industry include the following:
- HB147 by House Financial Services Committee Chairman Chris Blackshear (R-Phenix City) and SB181 by Senate Banking and Insurance Committee Chairman Shay Shelnutt (R-Trussville) is the Elderly and Vulnerable Adult Financial Protection Act of 2021. These bills give financial institutions full discretion to refuse or delay a financial transaction whenever financial abuse of an elderly or vulnerable adult customer is reasonably expected. Introduced last year, these bills garnered unanimous support in both chambers, but were unable to pass into law after the session abruptly ended because of COVID-19. The Senate bill was unanimously approved by the Senate Banking and Insurance Committee on Wednesday and by the full Senate on Thursday. Both the Senate and House bill are slated to be considered by the House Financial Services Committee on Feb. 24.
- HB196 by Rep. Matt Simpson (R-Daphne) and SB35 by Sen. Greg Albritton (R-Atmore) makes technical changes to the Alabama Uniform Trust Decanting Act, a law passed in 2019 that provides a method for reforming or modernizing an irrevocable trust. The Senate bill was unanimously approved by the Senate this week and is expected to be heard by the House Financial Services Committee on Feb. 24.
- HB216 by Rep. Craig Lipscomb (R-Gadsden) is the Alabama Consumer Privacy Act, a law giving consumers various rights related to the collection of personal information by businesses. Modeled after a California law, the legislation imposes onerous burdens on businesses of all types, including financial institutions. The association had a meeting with the sponsor earlier this week outlining concerns about the bill, and the sponsor assured us that he did not plan to pursue the legislation.
- HB293 by Rep. David Faulkner (R-Mountain Brook) is the Qualified Dispositions in Trust Act, which would authorize the creation of self-settled trusts in Alabama. Drafted by the Alabama Law Institute, this bill could theoretically expand opportunities for financial institutions providing trust-related services. On the other hand, however, this bill could provide debtors with an additional option of shielding assets from creditors. The association is working with the sponsor and the Alabama Law Institute to modify the legislation in a way that satisfies our concerns.
Through three legislative days, Representatives and Senators have introduced 646 bills – 413 in the House and 233 in the Senate – and 81 resolutions. The regular session can include no more than 30 legislative days and must end on or before May 17.
After a planned one-week break to sanitize the State House and reassess the building’s COVID protocols, the House and Senate will return to Montgomery for the seventh legislative day on Feb. 23.
Capitol Notes will be published each week during the regular legislative session and at other times as necessary. Capitol Notes is written by Jason Isbell, an attorney in the Governmental Solutions practice group at Maynard Cooper & Gale, Alabama’s largest law firm. Along with his colleagues at the firm, Jason is a governmental affairs consultant for the association. He can be reached at jisbell@maynardcooper.com or by calling (334) 782-1219.
