Proposals Would Give Preferential Treatment & Hurt Local Citizens

Mar 20th, 2017

Posted in: General News

The legislative effort to exempt prescription drug sales from the calculation of gross receipts from business license fees across the state would give preferential treatment to the pharmaceutical industry and hurt local citizens. For these reasons, Mobile City Leaders have joined together to oppose House Bill 58 sponsored by Representative Johnson and Senate Bill 31 sponsored by Senator Beasley.

At last week’s meeting, the City Council unanimously passed a resolution condemning the legislation. Mayor Stimpson joined the resolution and expressed his concerns about the legislation.

"This legislation would cost the City of Mobile more than $465,000 a year to benefit a special interest group," said Mayor Stimpson. "We urge our Representatives in the House to do everything they can to stop this effort."

“The proposal would take away the city’s ability to regulate all business licenses equally and instead give this one industry preferential treatment,” said Council President Gina Gregory. “It would also cut significant revenue to the city’s budget that this industry is obligated to pay, hurting local citizens.”

The legislation also creates a slippery slope encouraging other businesses and industries to seek similar legislative limitations on municipal license authority.

“While this bill will not reduce the cost of citizen’s prescriptions, it will rob the city out of a half million dollars needed for important infrastructure projects like resurfacing streets and addressing drainage issues,” said Council Vice President Fred Richardson. “At the same time it will provide extra funding to big box pharmacies by allowing that to not count pharmacy transactions with their gross receipts.”

SB31 has already passed out of the Senate and HB58 is expected to be taken up by the House when they return from Spring Break in early April.