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Alabama Municipal Electric Authority Power Supply Conference
Point Clear, Alabama | 4.17.15
Jonathan Hand| Electric Cities of Alabama
2015 General Session Update
What is Electric Cities of Alabama?
Based in Montgomery, Alabama 36 cities across the state representing over 1 million
consumers Government Relations Disaster Assistance
ECA’s 36 Member Cities• Albertville• Alexander City• Andalusia• Athens• Bessemer• Brundidge• Courtland• Cullman• Decatur• Dothan• Elba• Evergreen• Fairhope• Florence• Foley• Fort Payne• Guntersville• Hartford• Hartselle
• Huntsville• LaFayette• Lanett• Luverne• Muscle Shoals• Opelika• Opp• Piedmont• Robertsdale• Russellville• Scottsboro• Sheffield• Sylacauga• Tarrant• Troy• Tuscumbia• Tuskegee
2015 General Session Update
30 Legislative Days
14 Days into Session
Expected adjournment early to mid June
Special Session
ECA’s Highest Priority
Oppose House Bill 276
Oppose HB 276 – Municipal Utility License Tax
Introduced by Representative Chris England (D-Tuscaloosa)
HB 276 would require any public, private or municipal utility corporation to pay the 2.2% license tax
A closer look at the actual legislation “Each person, firm, or corporation, including any corporations or municipalities operating an electric or hydroelectric public or private utility; or a gas public or private utility; or any privately owned and operated wastewater system…or any other public, private or municipal utility, whether now paying or not paying the 2.2% shall be subject to the provisions of this section…”
Does this include Municipal Water & Sewer?
The Alabama Department of Revenue confirmed to ECA that this language did include municipal water and sewer
Confirmed this was a tax on ALL municipal utilities
Where does this money go?
64.3% would go tothe Special MentalHealth Fund35.7% would go tothe General Fund
64.3% Special Mental Health Fund
35.7% General Fund
Current Situation:
HB 276 is before the House Committee on Ways and Means General Fund
Pending public hearing
Steve ClouseChairman
Ken JohnsonVice Chairman
Laura Hall Elaine Beech Napoleon Bracy
Victor Gaston Lynn Greer Mike Holmes John Knight
Chris Sells
Paul Lee
Mike Millican Arnold Mooney Pebblin Warren Rich Wingo
What action ECA has taken:
Met with House and Senate leadership
Focused on the House Committee on Ways and Means General Fund
Member cities activated
Provided clarification of legislation text for members of the House
Requested a public hearing Weekly updates to
association Has stayed in touch with
Committee members
Response has been positive
Not voting for a tax…especially this one
Impacts my constituents negatively
This is dead – not to worry
HB 276 Talking Points
Government taxing government
Tax on basic necessity of life
Not like purchasing a cigarette or an automobile
Raises rates on gas, water and wastewater in addition to electricity
Could raise garbage rates
Would increase utility rates for everyone – new business – existing business – and especially those on fixed or low incomes
Governor’s talking points:
“This is a fair tax.” “There is nothing more
conservative than paying your debts and getting your financial house in order.”
“We will pass a tax hike, even if it takes 10 special sessions.”
