Business Council of Alabama: What is BCA? Who is Bill Canary? Why does Alabama Power exit matter?

Bill Canary answers questions on the witness stand during Alabama House Speaker Mike Hubbard's trial on Friday, June 3, 2016, in Opelika, Ala. Canary's leadership of the Business Council of Alabama has come under fire after Alabama Power exited the powerful group. (Todd J. Van Emst/Opelika-Auburn News via AP) MANDATORY CREDIT

Alabama Power's dramatic exit from the Business Council of Alabama has brought the organization - and its President and CEO Bill Canary - into the spotlight.

Here's more on BCA, its leadership, purpose and the current controversy:

What is the BCA?

The Business Council of Alabama was founded in 1985 when the Alabama Chamber of Commerce merged with the Associated Industries of Alabama. Through its members, BCA says it represents more than 1 million Alabamians.

A non-profit 501(c)6, the BCA represents the business community before the Alabama Legislature and the U.S. Congress. The organization's agenda includes education, infrastructure, small business, manufacturing, judicial and legal reform, environment and energy, health care, tax and fiscal policy, and labor and employment.

BCA membership

BCA's membership has traditionally included the largest industries in the state - Regions Bank, Alabama Power, Blue Cross Blue Shield, each of which pump large sums of money into the organization.

Currently, BCA's membership directory is not operational online.

Progress PAC

The BCA also operates ProgressPAC, which seeks to help elect pro-business candidates. Its most recent filings with the Alabama Secretary of State's Office shows the PAC has a balance of $743,019. Canary is listed as a registered lobbyist with the Alabama Ethics Commission.

BCA develops agendas for both the Alabama Legislature and Congress.

Endorsements

BCA issues political endorsements each year, most recently backing Gov. Kay Ivey; Lt. Gov. hopeful Twinkle Andress Cavanaugh, who is in the Republican runoff against Rep. Will Ainsworth; and Attorney General Steve Marshall, who faces former state AG Troy King in the July runoff. All the statewide candidates backed by the BCA are Republicans.

BCA & money

According to its most recently filed 990 filing, BCA reported net assets of $5.95 million but with expenditures topping revenue by $633,695 with a total of $2.53 million going toward salaries. BCA's website currently lists 17 staff members, including Canary.

Nancy Wall Hewston, senior VP of communications for BCA, told AL.com Tuesday the 990 form is a "snapshot at the time of reporting."

"It has no bearing on an organization's ongoing financial health," Hewston said. "The BCA finished 2016 with a balanced operating budget and a surplus. The BCA has zero debt and currently has more than one-year's operating budget in reserves."

Leadership

Canary has led the BCA since March 2003 after coming to Alabama after serving as president and CEO of the American Trucking Association in Washington, D.C., according to his online bio. His previous experience included serving as special assistant to the president for intergovernmental affairs under President George H. W. Bush and as chief of staff for the Republican National Committee.
Canary was also a close aide of former Republican Gov. Bob Riley.

BCA & Siegelman

Cananry's wife is Leura Canary, a former U.S. Attorney in Montgomery who was involved in the prosecution of former Alabama Gov. Don Siegelman. Siegelman claims she stayed involved in the case after recusing herself because of her husband's involvement with Republican campaigns. Courts rejected those claims during Siegelman's appeals.

Canary & Hubbard

Canary was close with former Alabama House Speaker Mike Hubbard. During Hubbard's trial on a host of felony ethics violations, Canary said he and other lobbyists close to BCA served as a "kitchen cabinet" to help shape the state's legislative agenda. The admission drew questions about BCA and Canary's power and its role after Hubbard was convicted.

BCA & AEA

The BCA and the Alabama Education Association - onetime the major force in Alabama politics - often found themselves at odds on a range of issues. In 2013, BCA took on AEA head on, forming the Business and Education Alliance. Led by former state superintendent Joe Morton, BEA counts among its partners Alfa Insurance, AT&T, Blue Cross, Regions, Honda and Alabama Power.

Tensions at BCA

Tension with the BCA heated up in 2017 following a particularly difficult legislative session. The organization had three main legislative agendas: kill a bill requiring insurance companies to cover autism treatments; revamping the Alabama Accountability Act; and raising the state gas tax. All three efforts failed and BCA's relationship with lawmakers, especially former Republican backers, soured. Shortly after that, Alabama Power pulled out of BCA's annual conference.

With the heat on, 14 former BCA chairs and vice chairs signed a letter of support for the CEO but discussions reportedly began related to Canary's exit.

Alabama Power's exit

Founding BCA member Alabama Power announced Monday it was withdrawing from the BCA "effective immediately."

In a letter to BCA Chairman Perry Hand, Alabama Power CEO Mark Crosswhite said the organization had "needlessly alienated federal and state officials, failed to communicate with its own members, squandered our collective corporate goodwill, allowed its financial health to decline, and become a divisive force in our state."

BCA response

For its part, BCA said Alabama Power has not been a member since April because of nonpayment of dues.

In his response, BCA Chairman Perry Hand said the executive committee would not "in good conscience" be able to meet "deadline dates (Alabama Power had) prescribed to our Executive Committee," regarding Canary's exit.

Alabama Power asked that Canary be removed by May 1 or June 1; the executive committee said it is working on a transition plan aimed at having a "a new CEO installed no later than Jan. 1, 2019."

What does Alabama Power's exit mean?

From Sen. Cam Ward, R-Alabaster, who battled BCA over its opposition to the autism bill:

"That's a big seismic shift there. I think the question is now, where does the Power Company go? Do they create a whole new organization? Do they maybe join another organization out there?"

Updated June 19 at 12:14 p.m. to include comments from BCA.

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