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House approves General Fund Budget
Final payment for Boll Weevil Eradication Program authorized The Alabama House of Representatives passed a $1.12 billion General Fund Budget on Tuesday that included $1.1 million for the final installment of the Boll Weevil Eradication Program.
Since the program began in 1987, boll weevils have been eradicated from 563,000 acres in Alabama. The program has reduced pesticide applications by 50-60 percent and has increased yields by 100 pounds or more per acre.
“Local economies and the cotton industry have benefited from the program by creating new jobs in production, ginning, warehousing, seed crushing and manufacturing,” said Federation lobbyist Freddie Patterson. “It was extremely important to have this last installment funded and now we can concentrate our efforts and resources on controlling fire ants.”
This year’s budget includes $150,000 for fire ant control research. It also includes $350,000 for implementing the state’s new Concentrated Animal Feeding Operation (CAFO) regulations; $2.9 million for the Soil and Water Conservation Committee which provides cost-share funding for farmers to implement conservation practices; and $25,000 for the Southeast Dairy Compact.
“The Boll Weevil Eradication Program is the reason cotton has made a major comeback in Alabama and the Southeast,” said Buddy Adamson, director of the Federation’s Cotton Commodity Division. “On behalf of cotton farmers statewide, I want to thank the Alabama House members for supporting this very successful program.”
House passes Cotton Module Bill
Members of the Alabama House of Representatives approved House Bill 603, commonly called the Cotton Module Bill, by a vote of 85 to 1 on April 4 and is awaiting action in the Senate Governmental Affairs Committee. The House version of the bill was sponsored by Rep. Richard Lindsey, D-Centre. The Senate version is sponsored by Sen. Bobby Denton, D-Muscle Shoals. Work is under way to get the bill on the senate calendar. The bill allows transportation of modules on Interstates at night and allows for transportation of modules and wagons at night on secondary roads.
Producers seek help in pollination of crops
Alabama honeybee producers have called for a public hearing on HB 844 sponsored by Sen. Joe Carothers, D-Dothan. The public hearing will be Wednesday (April 19) at 1:30 p.m. at the State House. Honeybee producers are concerned that crops – primarily cucumbers and watermelons – are being pollinated by Florida honeybee hives which could transfer pests and diseases to Alabama bees. Current state law prohibits the interstate travel of bees in an effort to control pests and diseases that may infect bees or otherwise contaminate Alabama hives. That bill would allow farmers who have crops in both Alabama and Florida to use Florida hives to pollinate their crops, providing the hives pass inspection by the Florida and Alabama departments of agriculture.
Hearing set to discuss premium tax credits
An April 19 hearing has been scheduled to discuss SB 465 sponsored by Sen. E.B. McClain, D-Jefferson, that would repeal premium tax credits for insurance companies with physical investments in the state. A second portion of the bill would remove the privilege tax assigned to farmers with limited liability partnerships.
“We’ve been successful in delaying this bill for several weeks, and we will continue to oppose it,” said Ryan deGraffenried lobbyist for Alfa Insurance Co. “We believe that the two issues are very separate and should not be attached.”
The Alabama Farmers Federation also opposes the bill. Research indicates only a small number of farm operations would be eligible for the proposed exemption. If the privilege tax is repealed, it should not be attached in any way to insurance legislation, said Federation lobbyist Paul Pinyan.
Senate committee to consider constitutional revisi
Several bills have been introduced this session concerning revision of the state’s constitution. However, only two bills are still considered viable. House bills 191 and 192, sponsored by Rep. Jack Venable, D-Tallassee, addresses changes in Article 1 and Article 2. Both are supported by House Speaker Seth Hammett, D-Andalusia. Neither of the articles address home rule or taxes. The House passed both bills which now await action in the Senate committee.
Bill Status
Disaster Relief Bill - HB 805 has been introduced by Rep. Terry Spicer, D-Elba. Under existing law, a net operating loss for state income tax purposes may be carried back two taxable years beginning in tax years after Dec. 31, 1997. This bill will expand the net operating loss carry back provision for certain presidentially-declared disaster areas to a period of three years in conformity with federal law and provides for retroactive effective dates. This bill could be very beneficial for Alabama farmers who suffer a natural disaster. Ratite Amendment - HB 882 has been introduced by Rep. Jeremy H. Oden, D-Vinemont. It has been assigned to the House Agriculture, Forestry and Natural Resources Committee. The bill will allow ratite producers to hold a referendum for a state checkoff program. The ratite amendment was defeated by a narrow margin in 1998. More emphasis will be placed on educating voters about the amendment, said Raleigh Wilkerson, director of the Federation’s Ratite Division. Hunting Fee Increase - HB 790 has been introduced by Rep. J.E. Turner, R-Citronelle, that would increase out-of-state hunting fees, and would increase Wildlife Management Area fees. The bill also would create two new licenses; a small game license and a sportsman’s license. Catfish Anti-Poaching Bill - HB 422 passed the House on Feb. 24 and is waiting action in the Senate (SB 279). This bill prohibits fishing from rights of way within 100 yards of commercial catfish operations. Ag Utilities Exemption Bill - HB 624 and SB 388, sponsored by Sen. Zeb Little, D-Cullman, and Rep. Frank McDaniel, D-Albertville, is waiting for a public hearing date to be set. The bill has drawn opposition from the Alabama Education Association. The bill exempts agriculture operations from gross receipt taxes on water, electricity and natural gas. Mandatory Insurance Bill - HB 134 is sponsored by Rep. Mike Hubbard, R-Auburn and passed the House Feb. 10. It is awaiting final action in the Senate. The bill is patterned after a system used in Illinois that has reduced the state’s uninsured motorist rate in that state from 25 percent to 7 percent without increasing insurance premiums. If approved, the law would go into effect Jan. 1, 2001. Food Safety Bill - SB 337, passed the Senate and awaits action in the House. The bill, sponsored by Sen. Jimmy Holley, D-Elba, is backed by Agriculture Commissioner Charles Bishop. The bill gives authority to the Department of Agriculture and Industries to issue permits ($50) to stores that sell prepackaged food. It also gives the department authority to fine those stores that sell outdated food.
Repeal of current use squelched in Senate
State Sen. Vivian Figures, D-Mobile, has agreed to review proposed current use tax legislation after meeting with lobbyists for the Alabama Farmers Federation. While there are abuses of the current tax structure, she said she also understands the plight of farmers and agreed to study the issue further before seeking a repeal of the current-use tax provision.
Sen. Roger Bedford, D-Russellville, chairman of the Senate Finance and Taxation General Fund Committee, and other committee members discussed excluding land inside city limits from claiming current use status as a way to stop the abuse.
“We couldn’t support that idea because a lot of farmers have land inside city limits,” said Federation lobbyist Freddie Patterson. “That would allow current use to be voided through annexation efforts by municipalities. We appreciate Sen. Figures willingness to discuss the legislation with us, and we appreciate her open-mindedness in considering the effects it could have on Alabama farmers.”
The Federation opposes valuing farmland at its “highest and best use rate” when the value of the land reflects speculative or inflationary factors, which do not have any relationship to its productive capacity. To prevent abuse, the current law provides for back collection of property taxes at a higher rate if farmland is developed.
Property taxes, as a source of revenue to support government, will continue to be studied by lawmakers as the demand for more money at all levels of government develops.
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