AUGUST 23, 2016 – The first special session of 2016 began last Monday. Legislators met for five days last week and adjourned late last Friday evening. The session will resume later this afternoon. Upon adjournment today, the session will be at least halfway over. Legislators will have met for six legislative days and – because it’s a special session – can meet for up to six more.
Without question, two bills have generated the most attention so far this session. The first is Senate Bill 3. Sponsored by Sen. Jim McClendon (R-Springville), the bill gives Alabamians the chance to vote to establish a lottery, with proceeds being distributed to the State General Fund. The bill passed the Senate last Friday and will be debated in the House as early as tomorrow. At least 63 representatives must approve the bill for it to pass. Another lottery bill that would have also allowed virtual lottery terminals to be placed, and taxed, at six sites around the state failed on a procedural vote last Thursday and is effectively dead for the session.
The second bill garnering attention is House Bill 36. Sponsored by Rep. Steve Clouse (R-Ozark), the bill would allocate funds the state is scheduled to receive from its settlement with BP over the oil spill in the Gulf of Mexico. Under the version approved by the House last Wednesday, BP funds would be used to repay two state rainy day accounts, fund several major south Alabama transportation projects, and fully fund the state’s Medicaid program next year. The bill will be on the Senate floor this week. If the bill does not pass, then the state will receive approximately $50 million annually from BP over the next 18 years.
On the banking front, Rep. Ken Johnson (R-Moulton), the chair of the House Financial Services Committee, introduced House Bill 22 at the request of the State Banking Department. In short, the bill would allow the department to access $1.1 million in bank assessment fees that have been collected by, but technically not appropriated to, the department. Publicly and privately, department officials have stated that the funds would be used to upgrade a critical IT database housed at the department (note: this is not being used on the recently-created database to track payday lending transactions). Most important is that officials testified publicly that passage of the bill would not increase bank assessments. Because of that assurance, the association has not and does not oppose the legislation. The bill is being carried in the Senate by Sen. Cam Ward (R-Alabaster) and could receive final passage as early as today. Because the governor’s proclamation calling legislators into special session does not encompass the subject of this bill, it can only become law if approved by two-thirds, rather than a simple majority, of the Senate.
Three other banking-related bills were introduced. First, Rep. Randall Shedd (R-Cullman) introduced House Bill 14, the Revised Uniform Fiduciary Access to Digital Assets Act. Enacted in 19 states this year, the act extends the traditional power of a fiduciary to manage tangible property to include management of a person’s digital assets. Second, Rep. Connie Rowe (R-Jasper) introduced House Bill 37, the Alabama Information Protection Act of 2017. Generally speaking, the bill provides for the protection of sensitive personally identifying information and notice to individuals whose personal information has been breached. Supported by the attorney general’s office, the bill completely exempts financial institutions from the provisions of the act so as to avoid any conflicts with federal data breach and notification laws imposed on financial institutions. Neither of these bills has moved through the process, meaning enactment is highly unlikely. Third, Rep. Steve McMillan (R-Bay Minette) introduced House Bill 2, which simply allows the Baldwin County Sherriff’s Office to make purchases with debit or credit cards. This bill passed the House unanimously, and is in position to pass the Senate as early as today.
Even as things wind down, and even though there are very few items that impact the banking industry, the association will certainly remain involved and engaged in the legislative process for the duration of the special session. If you have any questions, please don’t hesitate to contact Jason Isbell, the association’s vice-president of legal and governmental affairs, at jisbell@alabamabankers.com.
