Heavy debate of the gaming bill is expected in the House this week, and of the medical cannabis bill which is also expected to be considered by the House before they adjourn sine die on the 17th.
A summary of last week’s highlights are below.
Education Budget
The Senate concurred Thursday with the House-passed Education Trust Fund budget, sending the proposal to Governor Ivey. The $7.6 billion plan represents a $451 million increase from the current year’s budget and includes:
- $5.3 billion overall for K-12
- $2 billion overall for higher education
- $206 million for K-12 Advancement and Technology Fund
- $76 million for higher education Advancement and Technology Fund
- $56 million increase for State Education Department
- $29 million increase for Department of Early Childhood Education
- $12 million increase for special education pre-school program
- $10.9 million increase for career tech initiative
The House also approved a bill to create a program offering increased pay to middle and high school math and science teachers who meet certain qualifications. Additionally, the House approved a 2% COLA increase for K-12/community college employees, estimated at $30 million.
General Fund Budget
The Senate took up the General Fund budget Thursday and returned the bill to the House with minor changes, teeing up a conference committee to reconcile the differences. The Senate’s $2.4 billion proposal increased the House-passed plan by $6.8 million and represents an $80 million increase from the current year’s budget. While the allocations are very similar to those in FY21, some changes between the House and Senate versions include:
- $4 million more Alabama Tourism Department
- $1.25 million more for Department of Veterans’ Affairs
- $1.2 million more for Department of Commerce for one-time economic development projects
- Increased reporting requirements on how funds are spent
Pharmacy Benefit Managers
The House amended and passed a bill on Thursday to further regulate pharmacy benefit managers (“PBMs”). The final version of SB227 is based on lengthy negotiations and significant concessions by both opponents and proponents of the original bill. The bill adopts many of the provisions that pharmacists sought in the original bill, but no longer contains the elements that would have resulted in the greatest cost increases to health plans and plan members. The House amended the Senate-passed version of the bill to clarify that certain provisions of the bill do not apply to self-funded health plans.
The major components of the bill include:
- Prohibits the mandatory use of mail order pharmacy, but allows optional mail order;
- Prohibits the mandatory use of a PBM affiliated pharmacy;
- Allows PBMs to use incentives to encourage people to use lower cost options like mail order;
- Requires a PBM to let a pharmacy participate in a network as long as the pharmacy agrees to all of the terms and conditions of the network contract;
- Prohibits a PBM from reimbursing a PBM affiliated pharmacy more than a non-affiliated pharmacy for prescriptions for patients who are members of the same health benefit plan;
- Allows a pharmacy to inform a patient about lower cost alternative medications;
- Requires PBMs to prepare and make available an annual report for its clients setting forth the amount of the rebates received and amount retained by the PBM;
- Adds significant regulatory oversight of PBMs by the Department of Insurance.
Wine Shipments
The Senate unanimously passed HB437 Thursday. The compromise bill allows wineries to ship limited quantities of wine directly to Alabama residents 21 and older by obtaining a direct wine shipper license from the ABC Board. Retailers, however, would not be allowed to do so. The bill now goes to the Governor.
State Parks Bond
The Senate passed HB565 Thursday, a proposed constitutional amendment authorizing the state to issue $85 million in bonds to improve state parks. Alabama voters will ultimately decide the issue by voting on the proposed constitutional amendment in the 2022 election.
Mental Health Liability
The House unanimously passed SB289 Thursday, which provides regional mental health entities and their employees who work under the Department of Mental Health the same protections from legal liability given to state entities and employees. Liability protection would not extend to facility subcontractors or independent contractors. The bill now goes to the Governor.
Unemployment Overpayments
The House overwhelmingly passed a bill Thursday that requires the Department of Labor to adopt policies to recover unemployment overpayments. Requirements under SB373 include weekly examinations of the recipient list against the Department of Corrections incarcerated individuals list to verify eligibility of payments. The bill now goes to the Governor.
Broadband Expansion
SB215 passed both the House and Senate and will be sent to conference committee to work out the details. The bill would significantly expand high speed broadband internet service and create a state plan in Alabama. The bill could receive final passage as early as today.
School Construction
HB220 would remove the state Division of Construction Management’s authority to manage construction and renovation projects at schools and colleges and instead gives it to the Alabama State Department of Education or the managing boards of colleges and universities. It would also reduce current fees on capital projects less than $500,000 and roof and HVAC repairs and maintenance. An amendment added to the bill late in the process would allow the same change in regulation for projects at state parks and historical sites. The bill received final passage and is headed to the Governor's desk.
Additional Bills the Chamber is monitoring in the 2021 Session:
HB609 | Innovation Matching Grants
Innovate Alabama Matching Grant Program, matching grants to entities receiving Small Business Innovation Research or Small Business Technology grants, Secs. 41-10-820 to 41-10-823, inclusive, added.
Apr 29, 2021 - Pending third reading on day 28 Favorable from Fiscal Responsibility and Economic Development
SB387 | Charter School Funding
Public charter schools, methods of providing operational funding to revised, Alabama School Choice and Student Opportunity Act, Sec. 16-6F-10 am'd.
Apr 08, 2021 - Read for the first time and referred to the Senate committee on Finance and Taxation Education
HB591 | Pike Road Ad Valorem Tax Increase
Pike Road, ad valorem tax, add'l tax authorized to be levied by Montgomery County Commission for Pike Rd. School District
Apr 27, 2021 - Read for the first time and referred to the Senate committee on Local Legislation
HB572 | Work Based Learning
Education, local board of education, required to post information relating to work-based learning on the website of the local board and any school under the jurisdiction of the local board
Apr 07, 2021 - Pending third reading on day 21 Favorable from Education Policy
SB339 | Create AL Innovation Corporation
Alabama Innovation Corporation; incorporation; legislative findings, implementation of Small Business Innovation Research or Small Business Technology grants, board of directors, powers, contracts, investments, Sec. 41-10-800 to 41-10-810, inclusive, added
Mar 16, 2021 - Read for the first time and referred to the Senate committee on Fiscal Responsibility and Economic Development
SB338 | Innovation Matching Grants
Innovate Alabama Matching Grant Program, matching grants to entities receiving Small Business Innovation Research or Small Business Technology grants, Secs. 41-10-820 to 41-10-823, inclusive, added.
Mar 16, 2021 - Read for the first time and referred to the Senate committee on Fiscal Responsibility and Economic Development
HB541 | Innovation Matching Grants
Innovate Alabama Matching Grant Program, matching grants to entities receiving Small Business Innovation Research or Small Business Technology grants, Secs. 41-10-820 to 41-10-823, inclusive, added.
Mar 11, 2021 - Read for the first time and referred to the House of Representatives committee on Boards, Agencies and Commissions
HB540 | Create AL Innovation Corporation
Alabama Innovation Corporation; incorporation; legislative findings, implementation of Small Business Innovation Research or Small Business Technology grants, board of directors, powers, contracts, investments, Sec. 41-10-800 to 41-10-810, inclusive, added
Apr 29, 2021 - Pending third reading on day 28 Favorable from Fiscal Responsibility and Economic Development
HB498 | Online Credential / Competency Database
Alabama Credential Quality and Transparency Act and Workforce Council Committee on Credential Quality and Transparency created, legislative findings, free database of searchable online info re educational and occupational credentials and competencies provided, Secs. 41-29-350 to 41-29-357 added.
Apr 15, 2021 - Pending third reading on day 24 Favorable from Education Policy
HB486 | Extended Learning Opportunities
Extended Learning Opportunities Act, established, learning opportunities outside of typical public K-12 classroom for credit, approval and enrollment process provided, Secs. 16-46C-1 to 16-46C-7, inclusive, added.
Apr 06, 2021 - Pending third reading on day 20 Favorable from Education Policy
