by Rep. Danny Garrett
Commentary
MONTGOMERY — The Alabama Legislature has completed the first week of the 2021 legislative session. COVID precautions have limited legislators’ access to one another, to the legislative chamber, and to the public. To adhere to COVID safety standards, committees are rotating schedules, which means fewer meetings each week. All session activities are being streamed live over the legislative website and are accessible for public viewing. We will meet again next week and then take a break for a week to determine if current protocols are working or need to be adjusted.
This first week was primarily focused on three priority bills. The first was House Bill 170—which I sponsored—that will exempt all federal CARES Act dollars and other COVID relief received by individuals, businesses and non-profit organizations in 2020 or 2021 from state tax liability. The bill also provides tax decreases for businesses and business owners who are located and conduct operations in Alabama. The bill also includes revisions to the Alabama Tax Code that will remove competitive barriers for businesses that locate in Alabama. HB170 passed the House by a vote of 94-0 and will now be taken up by the Senate.
The second priority bill, HB192, extends and revises the Alabama Jobs Act and Growing Alabama Act, which provides economic incentives to help bring new businesses and jobs to Alabama. There were changes made to the previous program that will add more accountability, such as requiring businesses to achieve minimum benchmarks and confirming the number of jobs created before their incentives go into effect. HB192 passed the House by a vote of 94-1 and now moves to the Senate for consideration.
The third priority bill, SB30, protects businesses and other groups from lawsuits related to COVID-19. The bill is designed to provide “safe harbor” to entities that took proper steps and followed CDC and Alabama Department of Public Health recommended protocols to mitigate the spread of COVID-19. Businesses and other groups that failed to mandate and maintain social distancing or take other basic precautions would not fall under the bill’s umbrella. Groups covered by the legislation include businesses and nonprofit groups, health care providers, educational institutions, churches, governmental bodies, and cultural institutions. The liability protections are important, especially for small businesses. The Senate passed this bill on Thursday and the House will take up the bill next week.
The state Constitution mandates that the Legislature pass balanced Education Trust Fund ($7.5 billion) and General Fund ($2.5 billion) budgets each session. Because of sound budget practices over the past several years, Alabama is actually in the top ten among all states in terms of financial soundness after the COVID pandemic. Also, Alabama is number seven among all states in terms of job recovery during the pandemic. As Vice Chair of the Education Ways and Means Committee, I am working with the Governor and my colleagues on the 2022 budget. At this point, we expect to pass a slightly higher budget than last year.
I look forward to keeping you informed as the session progresses.
It is an honor to serve House District 44. Please feel free to contact me at dannygarrett44@gmail.com or call me at 205-410-4637 if there is anything you wish to discuss.