>> FROM OUR STATE HOUSE STUDIO IN MONTGOMERY, I'M TODD STACY.

WELCOME TO "CAPITOL JOURNAL."

THE ALABAMA LEGISLATURE IS BACK IN SESSION.

THE HOUSE AND SENATE CONVENED TODAY FOR THE FOURTH LEGISLATIVE DAY.

THE HOUSE WAS IN AND OUT IN QUICK ORDER, ONLY DEALING WITH PROCEDURAL BUSINESS AND NOT PASSING ANY BILLS.

THE SENATE HAD A FULL DAY, TAKING UP A SLATE OF BILLS DEALING WITH AUTO DEALER WARRANTIES, RULES FOR THE PACT BOARD AND PHARMACY BOARD, AND ARTIFICIAL INTELLIGENCE REGULATIONS.

THE ARTIFICIAL INTELLIGENCE BILL IS FROM SENATOR ARTHUR ORR OF DECATUR.

THE BILL REQUIRES LAW ENFORCEMENT TO HAVE ADDITIONAL CORROBORATING EVIDENCE WHEN USING ARTIFICIAL INTELLIGENCE TO IDENTIFY A CRIME SUSPECT.

UNDER SENATE BILL 56, THE RESULTS OF A FACIAL RECOGNITION SERVICE MAY BE USED ONLY IN CONJUNCTION WITH OTHER LAWFULLY OBTAINED EVIDENCE.

>> IF I GO IN AND STICK UP A LIQUOR STORE AND SO THE CAMERA GETS ME AT THE CASH WRECK CENTER, GETS MY IMAGE, THEN LAW ENFORCEMENT GETS THAT FILM FROM THE LIQUOR STORE AND THEY RUN IT ACROSS OR COMPARE IT TO ALL OF THE DRIVER'S LICENSES AND THEIR DATABASE, AND THEN IT COULD POP UP THAT THAT WAS ME IN THE LIQUOR STORE WHEN THEY FIND MY DRIVER'S LICENSE AND USE ARTIFICIAL INTELLIGENCE TO DO THE COMPARISON BETWEEN THE LIQUOR STORE FILM AND MY DRIVER'S LICENSE PHOTO, AND WHAT HAPPENS IS THERE ARE A LOT OF FALSE POSITIVES.

>> THE BILL PASSED UNANIMOUSLY.

AND NOW GOES TO THE HOUSE.

>> SPEAKING OF LAW ENFORCEMENT DOZENS OF POLICE OFFICERS AND SHERIFFS DESCENDED UPON THE STATE HOUSE TODAY TO VOICE THEIR OPPOSITION TO A PROPOSAL THAT WOULD DO AWAY WITH THE STATE'S CONCEALED CARRY PISTOL PERMITTING REQUIREMENT.

MULTIPLE BILLS ALLOWING SO CALLED CONSENSUAL CARRY OR PERMIT-LESS CARRY HAVE BEEN FILED THIS SESSION.

SUPPORTERS SAY THERE SHOULD BE NO PERMIT REQUIREMENT UNDER THE SECOND AMENDMENT, BUT LAW ENFORCEMENT SAYS THE PERMITTING SYSTEM IS ESSENTIAL TO PROTECTING OFFICERS.

>> LAW ENFORCEMENT THROUGHOUT THIS STATE HAS USED THIS TOOL, THIS LAW, FOR MANY YEARS TO REMOVE CRIMINALS FROM THE STREETS OF OUR COMMUNITIES.

WE'RE NOT HERE TO CREATE A PROBLEM.

WE'RE NOT HERE BECAUSE WE ENJOY GETTING IN FRONT OF THE MEDIA.

WE'RE HERE BECAUSE WE'RE CONCERNED THAT ONE OF THE TOOLS THAT WE USE EVERY DAY TO REMOVE STOLEN WEAPONS FROM THE STREET, TO REMOVE INDIVIDUALS WHO SHOULD NOT BE ON THE STREET WITH WEAPONS AND INDIVIDUALS THAT ARE COMMITTING CRIME THAT HAVE EVIL INTENT IN OUR COMMUNITIES, WE'RE HERE TO KEEP IT FROM BEING EASIER FOR THEM TO DO JUST THAT.

>> NO ONE UP HERE IS ANTI SECOND AMENDMENT: THAT'S ABSOLUTELY NOT THE CASE.

SOME HAVE SAID THAT THAT CAN'T BE FURTHER FROM THE TRUTH.

BUT THIS BILL DOESN'T COMPLY WITH COMMON SENSE.

>> ANOTHER BIG ISSUE AT THE STATE HOUSE IS SCHOOL CHOICE.

SENATOR DEL MARSH AND REPRESENTATIVE MEADOWS ARE FILING LEGISLATION THAT WOULD AUTHORIZE EDUCATION SAVINGS ACCOUNTS, ALLOWING PARENTS TO USE A PORTION OF THEIR STATE TAXES TO SEND CHILDREN TO A SCHOOL OF THEIR CHOICE.

THEY COULD CHOOSE OTHER PUBLIC SCHOOLS, PRIVATE SCHOOLS OR HOMESCHOOL.

MARSH SAYS HE FEELS GOOD ABOUT THE PROSPECTS IN THE SENATE, BUT THE HOUSE HAS BEEN LESS HOSPITABLE TO SCHOOL CHOICE BILLS IN RECENT YEARS.

HOUSE SPEAKER MAC MCCUTCHEON SAID IT IS TOO EARLY TO SAY WHETHER THE LEGISLATION WILL HAVE A CHANCE DOWNSTAIRS.

>> SEVERAL YEARS AGO WHEN WE DEALT WITH THE PRIVATE PUBLIC SCHOOL ISSUE, YOU KNOW THAT DISCUSSION CAME UP, AND WE HAVE PARENT WHOSE ARE SENDING THEIR CHILDREN TO PRIVATE SCHOOLS OR EITHER HOMESCHOOLING AND THE DISCUSSION CAME UP ABOUT THEM SPENDING THEIR TAX DOLLARS FOR PUBLIC EDUCATION WHEN THEIR CHILDREN WERE NOT A PRODUCT OF THAT.

AND SO BECAUSE OF THAT I MEAN YOU KNOW, I THINK THE DISCUSSION IS STILL OUT THERE.

SO I'M ANXIOUS TO SEE, YOU KNOW, HOW THE BILL MOVES IN THE SENATE, AS TO MY KNOWLEDGE AS OF TODAY WE DO NOT HAVE A HOUSE BILL THAT'S DEALING WITH THAT.

SO LET'S SEE WHAT'S IN THE BILL.

>> I'LL SPEAK IN MORE DETAIL WITH SENATOR MARSH ABOUT HIS BILL HERE IN A BIT.

BIG NEWS ON THE ECONOMIC DEVELOPMENT FRONT: AIRBUS IS PARTNERING WITH LOCKHEED MARTIN TO BID ON A CONTRACT TO BUILD THE NEXT GENERATION OF REFUELING TANKERS FOR THE AIR FORCE.

AIRBUS WOULD ASSEMBLE THE JETS AT ITS MOBILE FACILITY AND LOCKHEED WOULD CONVERT THEM FOR MILITARY USE AT ITS PLANT IN GEORGIA.

IF SUCCESSFUL, THE DEAL WOULD MEAN ANOTHER PRODUCTION LINE AT THE AIRBUS PLANT AND AN ADDITIONAL 400 DIRECT JOBS.

GOVERNOR KAY IVEY AND SENATORS RICHARD SHELBY AND TOMMY TUBERVILLE WERE ON HAND CELEBRATING THE ANNOUNCEMENT.

OFFICIALS HAVE EXPRESSED CONFIDENCE IN THE PARTNERSHIP'S CHANCES TO LAND THE DEAL.

WE'LL BE RIGHT BACK.

NEXT ON THE PROGRAM, I'M JOINED BY STATED SENATOR DELL MARSH OF ANNISTON.

SENATOR, THANK YOU FOR COMING ON "CAPITOL JOURNAL."

>> IT'S A PLEASURE TO BE HERE.

>> I ALMOST CALLED YOU PRESIDENT PRO TEM DELL MARSH.

IT'S STILL A LITTLE WEIRD NOT CALL YOU THAT BUT I APPRECIATE YOU COMING ON.

YOU MADE A LOT OF WAVES THIS WEEK.

YOU'RE GOING TO INTRODUCE WHAT YOU CALLED THE MOTHER OF ALL SCHOOL CHOICE BILLS.

WHAT DOES THIS BILL DO?

IT'S A PARENT'S CHOICE BILL, TODD.

WHAT THIS BILL DOES IS BASICALLY TAKE MONEY AWAY FROM THE BUREAUCRATS AND HANDS IT TO THE PARENTS TO USE THAT MONEY TO EDUCATE THEIR CHILDREN THE WAY THEY SEE FIT.

AND RIGHT NOW, THE STATE DOLLARS EQUATE TO ABOUT $6,800 OF STATE TAX DOLLARS -- WE FEDERAL TAX DOLLARS ADDED TO THAT.

THIS BILL WOULD ALLOW PERCENTAGE OF THOSE STATE DOLLARS, ABOUT $5,500 WORTH TO MOVE WITH THE PARENTS THEY CHOOSE TO MOVE THEM THROUGH THE PARENT'S CHOICE BOARD.

AND IT GETS A FLEXIBILITY TO THE PARENTS TO CREATE THE EDUCATION THEY FEEL IS BEST FOR THEIR CHILD, WHETHER IT BE PUBLIC SCHOOL, PRIVATE SCHOOL, VOCATIONAL SCHOOL, HOMESCHOOL, WHATEVER CHOICE IT MAY BE IT PUTS THAT CHOICE IN THE PARENT'S HANDS.

>> IF I'M A PARENT WITH A CHILD RIGHT NOW IN PUBLIC SCHOOL I COULD TAKE MY PORTION OF THIS TAX DOLLARS AND WALK ACROSS TOWN TO A PRIVATE SCHOOL AND ENROLL THERE.

>> THESE ARE STUDENT SAVINGS ACCOUNTS.

BASICALLY LET THE BOAR NOW AS A PARENT YOUR INTENTION SO TO MOVE YOUR CHILD TO ANOTHER SCHOOL OR CURRICULUM AND THE BOARD WOULD APPROVE THAT.

THEN THE BOARD WOULD SET ASIDE THOSE DOLLARS AND YOU AS A PARENTS WOULD DIRECT THOSE DOLLARS BASED TO WHERE YOU'RE GOING.

IT'S IN THE TOTAL CONTROL OF PARENTS INSTEAD OF BUREAUCRATS.

>> WHAT IF I CURRENTLY HAVE A CHILD IN PRIVATE SCHOOL OR HOMESCHOOL?

I DO STILL QUALIFY TORE THAT SAVINGS ACCOUNT CHECK?

>> IT'S A PHASE IN PROJECT.

IN YEAR ONE IF YOU'RE CURRENTLY IN PUBLIC SCHOOL YOU CAN MAKE THE TRANSFER OR IF YOU'RE HOMESCHOOLING, EITHER ONE COULD USE THEM.

YEAR TWO, IF YOU'RE UP TO 200 PERCENT OF THE FEDERAL POVERTY LEVEL YOU CAN USE THOSE DOLLARS TO GO TO ANOTHER PUBLIC SCHOOL, PRIVATE SCHOOL, PAROCHIAL SCHOOL, HOMESCHOOL AND IN YEAR THREE ANYONE CAN USE THE DOLLARS IN THE EDUCATIONAL SYSTEM OF THE STATE.

>> SO AFTER YEAR THREE, THE POVERTY LINE THING GOES AWAY.

>> THAT'S RIGHT.

FULL IMPLEMENTATION IN YEAR THROUGH.

IT CAN BE -- THE ARGUMENT YOU'RE GOING TO HEAR THAT IT'S A COST OF $420 MILLION.

WE'RE NOT TAKING A SINGLE DOLLAR OUT OF EDUCATION.

EVERY BEST IT IS THERE.

THE BUREAUCRATS DON'T REALLY EVERY BIT OF IT.

THE PARENTS CONTROL A PORTION OF IT.

WHEN YOU LOOK AT THE STATE OF ALABAMA TODAY, WE'RE LOST IN THE COUNTRY IN EDUCATION.

MATHEMATICS, 50TH, READING 48 -- WE'RE DOING SOMETHING AROUND.

WE'RE PUTTING A RECORD AMOUNT OF MONEY IN THE STATE AND HERE IS ANOTHER ISSUE.

YOU TAKE THAT MONEY AWAY FROM PUBLIC EDUCATION IF PUT IT IN THE HANDS OF THE PARENTS.

PUBLIC EDUCATION IN ALABAMA TODAY RANKS 3RD IN THE SOUTHEAST IN FUNDING.

AFTER THIS FULLY IMPLEMENTED WE'RE STILL 3RD IN THE SOUTHEAST IN FUNDING.

WE HAVE NOT LOST THE POSITION IN WHAT WE IF YOU SAID OUR PUBLIC SCHOOL SYSTEM.

>> YOU MENTIONED GOING FROM ONE PUBLIC SCHOOL SYSTEM TO ANOTHER AND I CAN SEE THE APPEAL OF THAT BECAUSE SOME SYSTEMS PERFORM BETTER AND I KNOW YOU HAD AN OPEN ENROLLMENT PLAN FOR A LITTLE WHILE.

IS THERE AN OPEN ENROLLMENT PLAN TO THIS?

IS THAT LEGAL IF I WAS IN MONTGOMERY COUNTY AND I WANT I WANTED TO TAKE THIS MONEY AND GO TO ELMORE COUNTY CAN I DO THAT LEGAL I HAD?

>> ANOTHER BEAUTIFUL THING IS NO ONE IS FORCED TO PARTICIPATE.

ANY SCHOOL SYSTEM THAT DOESN'T WANTED TO -- IF THEY DO WANT TO THEY CAN SET THEIR OWN CONDITIONS AND SAY YES, WE TAKE THE $5,500 BUT OUR LOCAL CITIZENS PAY ANOTHER 2 HUH THOUSAND IN TAXES AND YOU HAVE TO CONFORM WITH THAT.

NO ONE IS TIED INTO THIS.

BUT IT ALLOWS THE PARENT TO SHOP AND FIND THE BEST EDUCATION FOR THEIR CHILD TO REACH THE GOALS OF THAT PARENT.

>> I REMEMBER BACK DURING THE CHARTER SCHOOL FIGHT, I MEAN IT WAS YEARS LONG AND FINALLY GOT PAST.

BUT ONE OF THE MOST EFFECTIVE ARGUMENTS THAT FOLKS HAD TO FIGHT BACK AGAINST WAS YOU'RE TAKING MONEY FROM PUBLIC SCHOOLS AND GIVING THEM SOMETHING ELSE.

AND IT'S NOT TRUE BECAUSE CHARTER SCHOOLS ARE PUBLIC SCHOOLS BUT IN THIS CASE THAT ARGUMENT RINGS MORE TREE, THAT YOU COULD BE TAKING MONEY FROM THE PUBLIC SCHOOLS AND EFFECTIVELY GIVING THEM TO PRIVATE SCHOOLS OR HOME SCHOOLS?

>> 1ST IT'S NOT ABOUT THE MONEY.

ALABAMA RECEIVES 3RD HIGHEST IN THE SOUTHEAST IN FUNDING PER STUDENT AND YET WE'RE LAST IN THE COUNTRY IN EDUCATION.

FLORIDA, TENNESSEE, GEORGIA, ALL SPENDING LESS THAN ALABAMA.

SO IT'S NOT ABOUT THE MONEY.

BUT THE MONEY STAYS IN EDUCATION.

THE DIFFERENCE IS, THE BUREAUCRATS ARE SPENDING ALL OF IT NOW.

WITH THIS BILL THE PARENTS HAVE CONTROL OVER A PORTION OF THAT MONEY, AND I THINK PARENTS AT THE END OF THE DAY ARE THE ONES TO MAKE THE BEST DECISIONS FOR THEIR KIDS AND THEY SHOULD HAVE THAT ABILITY TO DO SO.

>> DO YOU THINK THAT THE PANDEMIC IS GOING TO AFFECT THIS AT ALL?

YOU HAVE HEARD A LOT ABOUT SCHOOL CHOICE OPTIONS STEMMING FROM THE PANDEMIC.

VIRGINIA THEY HAD A HUGE DEBATE OUT THERE THE POLICIES ON CLOSINGS AND MASKS -- DO YOU SEE THAT PLAYING A ROLE.

>> I DO SEE IT PLAYING A ROLE IN THE DEBATE.

RIGHT NOW, YOU CURRENTLY HAVE PROBABLY A RECORD HIGH NUMBER OF PEOPLE HOMESCHOOLING BECAUSE OF THE PANDEMIC.

MANY FAMILIES ARE FORCED BECAUSE OF SCHOOLS CLOSING AND TWO WORKING FAMILIES -- AND SOMEBODY HAD TO QUIT THE JOB TO GO HOME AND HOMESCHOOL.

THAT'S WHY I PUT HOMESCHOOL IN AS YEAR ONE THAT THOSE PEOPLE WOULD RECEIVE COMPENSATION BECAUSE THEY HAD NO CHOICE.

AND I THINK YOU'RE GOING TO SEE DOWN THE ROAD, IF A SYSTEM WANTS TO FOCUS ON CRITICAL RAILS THEORY, FORCE MASK MANDATES, CLOSE AND MAKE THE STUDENT GO VIRTUAL, A PARENT NOW CAN SAY, WELL, THAT'S FINE.

OR THE PARENT CAN SAY, LISTEN, YOU DO WHAT YOU WANT BUT I'M GOING TO TAKE MY STATE DOLLARS AND MOVE MY CHILD TO A DIFFERENT LEARNING INSTITUTION THAT I THINK IS BETTER SUITED FOR OUR NEEDS.

THAT GIVES THAT POWER TO THE PARENT THAT THE PARENT HAS NEVER HAD BEFORE.

AND I THINK IT'S GOING TO MAKE EDUCATION BETTER.

IF YOU LOOK AT SCHOOL CHOICE, PARENT CHOICE ACROSS THIS COUNTRY, PUBLIC SCHOOLS IMPROVE WITH COMPETITION!

I WAS GOING TO ASK YOU ABOUT THAT.

BECAUSE SCHOOL CHOICE AS A MOVEMENT, THAT'S KIND OF BEEN A CORE COMPONENT.

IT'S NOT JUST CHANGING WHERE PEOPLE GO TO SCHOOL.

THE POINT IS TO LIFT ALL BOATS BY PROVIDING COMPETITION.

IS THAT AN ELEMENT?

PEOPLE CAN SAY YOU'RE TAKING RESOURCES AWAY -- >> BUT YOU'RE LEAVING RESOURCE ELVES.

AS I SAID ABOUT $5,500 OF THE STATE DOLLARS WILL FOLLOW THE STUDENT 25 PERCENT STAY WITH THE SYSTEM WHETHER THAT CHILD IS THERE OR NOT.

SO THAT SYSTEM HAS MORE PER CHILD TO SPEND BECAUSE THOSE DOLLARS HAD THE ARE LEFT BEHIND.

IT HELPS AND THEY CAN FOCUS MORE ON PROBLEM CHILDREN, PROBLEM SITUATIONS.

LISTEN, I KNOW IT'S DIFFICULT IN THE PUBLIC SYSTEM.

THERE ARE A LOT OF CHALLENGES THERE: BUT I BELIEVE THIS.

COMPETITION IS GOOD.

IT MAKES PEOPLE ACCOUNTABLE AND GET BETTER.

AND I THINK THIS COMPETITION IN ALLOWING STUDENTS THAT HAVE POWER OF CHOICE WILL MAKE THE PUBLIC SYSTEM BETTER.

>> YOU'RE PROBABLY GOING TO SEE A LOT OF OPPOSITION, RIGHT, FROM EDUCATION STABILITY GROUPS, AEA SUPERINTENDENTS, GO DOWN THE LIST -- ARE YOU CONCERNED ABOUT THAT MOVING THROUGH THE LEGISLATURE?

>> LISTEN, I WILL SAY I'M CONCERNED BECAUSE I THINK THIS IS AN IMPORTANT PEELS OF LEGISLATION.

WE'RE IN A CRITICAL STATE.

PEOPLE OUTSIDE ARE LOOKING IN AND SAY DO THEY REALLY CARE ABOUT EDUCATION?

WE HAVE BEEN 50TH AND LOW RANKING FOR SOME TIME NOW.

IF IT'S NOT PERCEIVED THAT WE'RE DOING SOMETHING ABOUT IT WE'VE GOT A PROBLEM.

YOU KNOW THE EDUCATORS WANT TO CONTROL EVERYTHING, THE PUBLIC EDUCATION DO.

AND THEIR ONLY ARGUMENT IS OH, YOU'RE TAKING MONEY OUT OF EDUCATION.

AND MY ARGUMENT IS THE MONEY IS STAYING IN EDUCATION.

YOU JUST DON'T CONTROL ALL OF IT.

AND, BY THE WAY, PARENTS DESERVE CHOICE.

PARENTS AT THE END OF THE DAY WILL HAVE SOMETHING THAT I HAVE NEVER HAD IN THE PAST AND ALABAMA WILL REMAIN 3RD BEST FUNDED EDUCATIONAL SYSTEM IN THE SOUTHEAST.

>> YOU HEAR A LOT OF COMPLAINTS FROM EDUCATORS THEMSELVES ABOUT ALL OF THE RED TAPE, ALL OF THE PAPERWORK, WHETHER IT'S FEDERAL OR STATE, TEACHERS WILL SAY IT JUST KEEPS THEM FROM DOING THEIR JOB.

DO YOU THINK THIS BILL AND THIS CONVERSATION MIGHT BE AN INCENTIVE FOR THE STATE TO REDUCE THAT PAPERWORK LOAD AND LET TEACHERS TEACH MORE?

>> I'M ALL FOR REDUCING PAPERWORK.

TELL US WHAT YOU WANT AND BRING IT TO THE LEGISLATURE AND IF WE CAN HELP YOU, WE WILL.

A LOT OF THAT IS POLICY SET BY THE DEPARTMENT OF EDUCATION.

IN TERMS OF THE FED SIDE -- LISTEN, EVERYTHING COMES WITH A PRICE.

IF YOU'RE GOING TAKE THE FEDERAL DOLLARS -- I'M NOT SAYING YOU SHOULDN'T BUT IF YOU TAKE THE FEDERAL DOLLARS YOU HAVE TO PLAY BY THEIR RULES.

SO DON'T COMPLAIN ABOUT THE PAPER ON THE FEDERAL SIDE IF YOU TAKE THEIR MONEY.

>> THIS IS GOING TO BE YOUR LAST SESSION AS A STATE SENATOR.

WELL, LAST REGULAR SESSION.

THERE COULD BE SOME SPECIALS AHEAD.

IN REGRETS ON NOT RUNNING AGAIN?

ARE YOU PLEASED WITH YOUR DECISION?

>> NOT AT ALL.

YOU HAVE ENJOYED BY TIME IN THE LEGISLATURE AND IT'S BEEN A PRIVILEGE SERVING THE PEOPLE OF DISTRICT 12.

GREAT COLLEAGUES HERE.

WE GOT SOME BIG THINGS DONE.

SINCE WE TOOK CONTROL IN 2010 AS REPUBLICANS, NO PRORATION HAS TAKEN PLACE.

FISCALLY THE STATE IS IN GREAT SHAPE.

AND PAST THIS LEGISLATION I CAN ASSURE THE PEOPLE OF THE STATE OF ALABAMA OUR EDUCATION WILL STILL BE IN GOOD SHAPE FINANCIALLY BUT WE WILL BE PUTTING PRESSURE TO IMPROVE THIS STATE AND GIVE THE PARENTS AN ABILITY TO PARTICIPATE IN THAT AND I THINK THAT'S POWERFUL.

>> WE WILL BE WATCHING.

THANK YOU FOR COMING ON.

>> THANK YOU.

>> WE WILL BE RIGHT BACK.

>> JOINING ME NEXT IS ROSEMARY ELEBASH, ALABAMA DIRECTOR OF THE NFIB THANK YOU FOR COMING ON "CAPITOL JOURNAL."

>> THANK YOU TODD FOR HAVING ME TODAY.

>> I WANTED TO HAVE YOU ON BECAUSE IT HAS BEEN A ROUGH TWO YEARS FOR SMALL BUSINESSES.

NOT JUST IN ALABAMA BUT THROUGHOUT THE COUNTRY.

BECAUSE OF THE PANDEMIC.

I WANT TO GET AN UPDATE.

HOW ARE BUSINESSES FAIRING?

TODD, THE ONES THAT HAVE MADE IT THROUGH SO FAR ARE STRUGGLING AND THE BIGGEST STRUCTURE IS THE WORKER SHORTAGE.

AND IT'S NOT JUST FOR SKILLED WORKERS BUT UNSKILLED WORKERS.

AND YOU COUPLE THAT WITH THE NEW INFLATION THAT THEY'RE DEALING WITH AND THEN SUPPLY CHAIN AND INVENTORY ISSUES SO THEY HAVE STILL A LOT ON THEIR SHOULDERS.

AND THEY -- THEY CONTINUE TO JUST PLOW FORWARD LIKE SMALL BUSINESS OWNERS DO LEVEL.

>> THE WORKER SHORTAGE HAS BEEN KIND OF VEXING.

ORIGINALLY WE WANTED TO PIN IT ON EXTRA BENEFITS FROM THE FEDERAL GOVERNMENT AND THOSE GO AWAY AND THERE'S STILL A SHORTAGE ACROSS INDUSTRIES.

IS THERE ANYTHING THAT EXPLAINS IT?

>> YOU KNOW, I DON'T KNOW THAT THERE'S REALLY ANY ONE THING THAT EXPLAINS IT I THINK PEOPLE ARE STILL FEARFUL OF COVID.

SO I THINK THAT IS PART OF IT.

AND THEN YOU KNOW WHEN YOU'VE GOT SCHOOLS IN ONE WEEK AND SCHOOLS OUT THE NEXT WEEK, THEN THOSE PARENTS ARE REALLY HAVING TO JUGGLE ABOUT GOING TO WORK AND MANY OF THEM CANNOT WORK REMOTELY.

SO THAT'S BEEN A REAL CHALLENGE, NOT ONLY FOR THE EMPLOYEE BUT FOR THE EMPLOYER.

BECAUSE I KNOW EMPLOYERS HAVE REALLY ADAPT THEIR HOURS TO TRY TO MEET THE NEEDS OF WORKING PARENTS BECAUSE THEY'RE SKILLED AND THEY DON'T WANT TO LOSE THEM AS ONE OF THEIR EMPLOYEES.

>> LAST WEEK DURING THE SPECIAL SESSION THE LEGISLATURE ALLOCATED ALL OF THIS ARPA MONEY.

$80 MILLION OF WHICH WENT TO THE UNEMPLOYMENT TRUST FUND TO SHORE IT UP TO AVOID A TAX INCREASE ON BUSINESSES.

CAN YOU WALK ME THROUGH HOW THAT WORKS?

>> SURE.

WHEN THE PANDEMIC HIT OR WHEN IT WAS DECLARED THE UNEMPLOYMENT TRUST FUND WAS MOVING IN THE RIGHT DIRECTION.

IN ALABAMA WE HAVE FOUR SCHEDULES, WE HAVE A THROUGH D. D IS THE HIGHEST TAX RATE THAT EMPLOYERS PAY AND WE HAVE BEEN IN D SINCE 2009.

SO WE WERE REALLY ON THE PATH TO GET TO THAT MAGIC 800 MILLION WHERE EMPLOYERS COULD MOVE BACK TO SCHEDULE C AND GET A TAX BREAK.

THEN COVID HIT.

THEN SO MANY BUSINESSES WERE EITHER SHUDDERED BY AN ORDER OF THE GOVERNMENT OR THEY JUST LOST THEIR BUSINESS.

SO THERE WERE MANY EMPLOYEES THAT WERE DRAWING DOWN FROM THE UNEMPLOYMENT TRUST FUND, SO YOU KNOW THE BALANCE GOT VERY LOW.

AND THEN IT SLOWLY STARTED BUILDING BACK UP.

SO WHEN THESE FUNDS CAME DOWN FROM THE FEDS, I VISITED WITH MANY LEGISLATORS, THE GOVERNOR, THE LT.

GOVERNOR AND ASKED IF THEY WOULD CONSIDER JUST ENOUGH OF A DEPOSIT TO BRING IT BACK TO THE PRE-PANDEMIC LEVELS SO THAT $79.5 MILLION THAT THEY PASSED LAST WEEK, THAT GETS US BACK TO THE PRE-PANDEMIC LEVEL.

BUT IN ADDITION TO THAT FOR THE SHARED COST, THEN EMPLOYERS SHOULD GET A 29 PERCENT DECREASE IN THEIR TAXES FOR THIS YEAR.

AND SHARED COSTS ARE ONE OF THOSE INSIDER GAME WORDS.

WHAT THAT MEANS IS ALL EMPLOYERS SHARE IN THE COST WHEN EMPLOYEES ARE LET GO.

IT'S NOT JUST THAT BUSINESS.

SO THOSE SHARED COSTS ARE REALLY IMPORTANT.

SO THIS WAS A BIG WIN FOR BUSINESS IN ALABAMA, AND ESPECIALLY A BIG ONE FOR SMALL BUSINESS OWNERS.

>> WELL, LOOKING FORWARD AS THE SESSION CONTINUES THIS WEEK IS THERE ANY LEGISLATION CONCERNING SMALL BUSINESS THAT YOU'RE TRACKING?

>> YES.

WE ACTUALLY HAVE TWO BILLS THIS WEEK THAT ARE IN COMMITTEE TOMORROW.

ONE IS A SEASONAL WORKER.

AND WE DON'T HAVE A DESIGNATION IN ALABAMA FOR A SEASONAL WORKER.

AND THIS WOULD ALLOW EMPLOYERS IF THEY HAVE A 20 PERCENT INCREASE IN THEIR BUSINESS OPERATIONS THAT THEY CAN APPLY TO THE ALABAMA DEPARTMENT OF LABOR TO BE A SEASONAL BUSINESS, AND THEY CAN HIRE SEASONAL EMPLOYEES BUT AVOID PAYING UNEMPLOYMENT TAXES ON THESE PEOPLE.

AND I WILL GIVE YOU A COUPLE OF EXAMPLES.

IF YOU'RE A LIFEGUARD THEN YOU KNOW YOU'RE GOING TO GO TO WORK MEMORIAL DAY AND YOU KNOW YOUR LAST DAY IS LABOR DAY.

YOU'RE A SEASONAL WORKER.

IF HAVE YOU A RETAIL STORE, THEN AT CHRISTMASTIME YOU KNOW YOU'RE GOING TO GET A 20 PERCENT INCREASE IN YOUR BILLS SO YOU CAN APPLY TO THE ALABAMA DEPARTMENT OF LABEL FOR THAT SEASONAL STATUS.

SO WE'RE GRATEFUL TO CHRIS ELLIOT WHO IS GOING TO CARRY THIS BILL AND HIS DISTRICT, BALDWIN COUNTY, HAS A LOT OF SEASONAL MOTION DOWN THERE.

SO THIS IS IMPORTANT.

INTERESTING.

ANYTHING ELSE ON THE SLATE FOR BUSINESS?

>> THE OTHER THING THAT WILL BE IN COMMITTEE TOMORROW IS HOUSE BILL 82, AND IT HAS MANY DIFFERENT PORTIONS TO THIS BUT THE ONE SMALL BUSINESS OWNERS ARE REALLY PLEASED ABOUT IS THE BUSINESS PERSONAL PROPERTY TAX.

AND THIS BILL WILL ALLOW AN EXEMPTION UP TO $40,000 WHERE YOU WOULD NOT PAY ON BUSINESS PERSONAL PROPERTY TAX EVERY YEAR.

THIS IS AN ANNUAL TAX ON EQUIPMENT AND SUPPLIES THAT BUSINESSES HAVE.

AND IT'S REALLY BEEN AWKWARD THE ENTIRE TIME BECAUSE BUSINESS OWNERS WOULD SAY TO ME -- I HAVE ALREADY PAID SALES TAX.

WHY DO I HAVE TO PAY ON IT EVERY YEAR.

SO THIS FIRST STEP OF THE $40,000 EXEMPTION IS GOING TO BE A BIG, BIG HOPE SMALL BUSINESS OWNERS!

I KNOW LAST YEAR THERE WAS A LOT OF CONVERSATION AND LEGISLATION ABOUT ESSENTIAL BUSINESSES AND NONESSENTIAL BUSINESSES AND TRYING TO END THAT DISTINCTION.

WHY IS THAT SUMP AN IMPORTANT ISSUE?

WHEN YOU THINK ABOUT SMALL BUSINESS OWNERS AND YOU SHOP AT SMALL BUSINESS OWNERS, THIS IS THEIR PASSION.

THIS IS THEIR LIFEBLOOD.

AND WHEN YOU HAVE SOMEONE THAT SAYS THE YOU'RE NOT ESSENTIAL AND HAVE YOU BILLS TO PAY AND YOU HAVE EMPLOYEES AND YOU'RE A BIG PART OF YOUR COMMUNITY, THEN WE NEVER WANTED THAT DISTINCTION TO HAPPEN AGAIN SO WE WERE VERY GRATEFUL TO REPRESENTATIVE JAMIE KEEL WHO PASSED THAT BILL.

>> IS THAT ONE OF THE LESSONS THAT WE HAVE LEARNED FROM THE PANDEMIC?

IT'S BEEN ALMOST TWO YEARS TO THE DATE WITH SOME OF THESE PUBLIC HEALTH ORDERS WOULD CLOSE CERTAIN BUSINESSES FOR NONESSENTIAL BUSINESS ELVES.

DO YOU THINK THAT'S ONE OF THE LESSONS THAT WE HAVE LEARNED IN TERM OF -- IN TERMS OF WE WOULDN'T DO THAT OXYGEN.

>> FROM ALL I HAVE HEARD FROM ELECT OFFICIALS THEY DON'T INTEND TO MAKE THAT DISTINCTION AGAIN THAT ALL BUSINESSES ARE ESSENTIAL.

AND YOU THINK ABOUT RURAL BUSINESSES WHERE THOSE BUSINESSES WERE CLOSED, THE SALES TAXES IN THAT AREA TOOK A DEEP PLUMMET FROM AND IT AFFECTING IN THE COMMUNITY BECAUSE SMALL BUSINESS OWNERS ARE REALLY BIG VOLUNTEERS AND THEY GIVE TO CHARITABLE CAUSES SO YOU HAVE THE FOOTBALL TEAM AND THE SOFTBALL TEAM AND THE VOLLEYBALL TEAM AND THEY'RE USED TO THOSE CONTRIBUTIONS COMING FROM SMALL BUSINESS OWNERS.

AND IF YOU'RE CLOSED YOU'RE NOT MAKING ANY MONEY.

>> WELL, WE REALLY APPRECIATE YOU COMING IN TO SHARE THE PERSPECTIVE OF SMALL BUSINESS INCLUDING THE LEGISLATIVE AGENDA.

>> THANK YOU.

>> WE WILL BE RIGHT BACK.

>> AND THAT'S OUR SHOW FOR TONIGHT.

THANK YOU FOR WATCHING.

WE WILL BE BACK TOMORROW AT 10:30:00 P.M.

RIGHT HERE ON APT, WITH CONTINUED COVERAGE OF THE LEGISLATIVE SESSION.

FOR OUR "CAPITOL JOURNAL" TEAM, I'M TODD STACY.

WE WILL SEE YOU NEXT TIME!

♪