Lawmakers met this week and reconvened the 2023 Regular Session. Below is a recap of the proceedings. Next week legislators will take spring break.
Budgets Released
Gov. Kay Ivey transmitted her budget proposals to the Legislature this week as the Regular Session reconvened after the conclusion of its Special Session.
The General Fund proposal, filed as HB124 by Rep. Rex Reynolds, requests $2.97 billion in total spending, or about $230 million more than Fiscal Year 2023. It would be the largest General Fund budget ever and includes a 2% pay raise for state employees. Much of the increase in spending would flow to the Alabama Medicaid Agency, as extra federal payments are being eliminated due to the Covid-19 emergency proclamation’s expiration in May, and the Alabama Department of Corrections as the state continues to try to recruit more correctional officers and satisfy federal court orders. The initial proposal also includes $50 million to the General Fund budget reserve fund to be used during lean times. HB125, which is the General Fund supplemental appropriation from the current Fiscal Year due to higher-than-expected revenues, provides approximately $190 million across a variety of agencies and includes $40 million to accelerate the retirement of state debt. The supplemental appropriation also provides $43 million to the Department of Mental Health primarily for the construction costs of expanding Taylor Hardin Medical Facility in Tuscaloosa. Both General Fund bills will begin in the House as the Senate will be the first chamber to move the Education Trust Fund bills.
The Education Trust Fund proposal, filed as SB88 by Sen. Arthur Orr, requests $8.8 billion in spending. This would also be the largest Education Trust Fund budget in Alabama’s history. The proposal includes a 2% pay increase for all education employees and increases the amount of classroom materials funding to $1,000 per teaching unit. New initiatives, such as the Alabama Numeracy Act, which was passed by the Legislature to address Alabama’s lagging math scores on standardized tests, has a proposed increase of $25 million to $40 million total. A total of $15 million in new funding is also proposed to support the Alabama State School Board’s new policy that students must earn a college and career readiness indicator to graduate.
The Education Trust Fund supplemental bill, filed as SB87, is likely to be heavily modified by the legislature primarily due to the nearly $1 billion in proposed tax rebates for Alabama income tax filers. Gov. Ivey proposed rebates of $400 for individuals and $800 for families. The Legislature has indicated they may be more inclined to consider smaller rebates and other types of tax relief, including permanent tax cuts. The supplemental also includes $10 million for existing charter schools, $24 million for summer math camps, and $4.1 million for new classrooms to facilitate the growth in Alabama’s First-Class Pre-K program. Sen. Orr has stated he expects movement on the Education Trust Fund proposals by the end of April as the Legislature begins its review of Gov. Ivey’s proposed budgets.
Priority Bills on the Move
The Legislature began passing bills out of their originating chambers this week, almost all of which were passed unanimously. In the Senate, notable bills that passed were SB113 by Sen. Gudger which requires health care facilities and nursing homes to allow in-person visits in certain situations, including end-of-life scenarios or during childbirth. SB104 by Sen. Chris Elliott reforms Dram Shop liability law. Current law provides that any establishment that serves a person alcohol over the course of the night can be held liable if that person later causes harm. SB104 clarifies that an establishment would have to knowingly provide alcohol to someone over the age of 21 who is visibly intoxicated to be held liable. Supporters say the bill could help lower business insurance ratings. SB56 by Sen. Orr would require cameras in classrooms in which at least 50% of the students receive special education services. Due to recent allegations of abuse or neglect in special education settings, the cameras would record audio and video during school hours and at any time a student is present and would be available for review by law enforcement, the student’s parents, school administrators, and legal counsel. The school would be required to keep the recordings for at least three months.
In the House, notable bills that passed included HB1 by Rep. Matt Simpson, which adds mandatory minimum sentences for fentanyl possession and trafficking. HB101 by Rep. Ginny Shaver streamlines the adoption process in Alabama. It would reduce the number of in-person court procedures, allow for electronic communication throughout the process, and update and simplify the law to be clearer. Both bills are expected to pass the Senate in upcoming weeks.
The Legislature has adjourned for its spring break and will reconvene on April 4 for its fifth legislative day out of a potential 30.
Bills our legislative team are tracking include:
| Bill | Sponsors | Title | Last Action | Latest Version |
| AL 2023rs SB 136 |
Sam Givhan
|
Relating to building codes; to amend Section 27-2-39, Code of Alabama 1975, to provide for a portion of fees and taxes collected by the Department of Insurance to the Alabama Residential Building Code Fund; to designate Sections 34-14A-1 through 34-14A-20 as Article 1 of Chapter 14A of Title 34, Code of Alabama 1975; to amend Sections 34-14A-1, 34-14A-2, 34-14A-7, 34-14A-12, 34-14A-20, Code of Alabama 1975, to provide for the establishment of the Alabama Residential Building Code and its authority; to further provide for the practice of residential home building; to further provide for the duties of the Home Builders Licensure Board; to add Article 2, commencing with Section 34-14A-41, to Chapter 14A of Title 34, Code of Alabama 1975, to establish the Alabama Residential Building Code Division within the Home Builders Licensure Board and provide for its duties; to establish the Alabama Residential Building Code Fund in the State Treasury and provide for its administration; to add Article 6A, commencing of Section 41-9-175, to Chapter 9 of Title 41, Code of Alabama 1975, to establish the Alabama Residential Building Code Advisory Council and provide for its membership and duties; to amend Sections 41-23-80, 41-23-81, 41-23-82, 41-23-84, 41-23-85, Code of Alabama 1975, to provide for the change of the name of the Alabama Energy and Residential Codes Board to the Alabama Commercial Energy Code Board and further provide for the membership of the board; and to provide requirements for certain local building codes adopted or amended after a date certain. (Banking and Insurance) | Senate • Mar 23, 2023: Introduced and Referred | Introduced |
| AL 2023rs HB 214 |
Chip Brown
|
Relating to building codes; to amend Section 27-2-39, Code of Alabama 1975, to provide for a portion of fees and taxes collected by the Department of Insurance to the Alabama Residential Building Code Fund; to designate Sections 34-14A-1 through 34-14A-20 as Article 1 of Chapter 14A of Title 34, Code of Alabama 1975; to amend Sections 34-14A-1, 34-14A-2, 34-14A-7, 34-14A-12, 34-14A-20, Code of Alabama 1975, to provide for the establishment of the Alabama Residential Building Code and its authority; to further provide for the practice of residential home building; to further provide for the duties of the Home Builders Licensure Board; to add Article 2, commencing with Section 34-14A-41, to Chapter 14A of Title 34, Code of Alabama 1975, to establish the Alabama Residential Building Code Division within the Home Builders Licensure Board and provide for its duties; to establish the Alabama Residential Building Code Fund in the State Treasury and provide for its administration; to add Article 6A, commencing of Section 41-9-175, to Chapter 9 of Title 41, Code of Alabama 1975, to establish the Alabama Residential Building Code Advisory Council and provide for its membership and duties; to amend Sections 41-23-80, 41-23-81, 41-23-82, 41-23-84, 41-23-85, Code of Alabama 1975, to provide for the change of the name of the Alabama Energy and Residential Codes Board to the Alabama Commercial Energy Code Board and further provide for the membership of the board; and to provide requirements for certain local building codes adopted or amended after a date certain. (Insurance) | House • Mar 23, 2023: Introduced and Referred | Introduced |
| AL 2023rs HB 49 |
Reed Ingram
|
Relating to the State Treasurer; to create the Alabama Local Government Investment Pool Program within the Office of the State Treasurer to allow state and local public entities to deposit monies in an investment pool administered by the treasurer; to provide parameters for investments; to authorize the treasurer to take certain actions to administer the program; to establish the Alabama Local Government Investment Advisory Board and provide for its membership and duties; and to provide further for the Office of the State Treasurer’s travel expenses. | House • Mar 22, 2023: Read Second Time in House of Origin | Introduced |
| AL 2023rs SB 125 |
Merika Coleman
|
Relating to credit and debit card fees; to provide that the calculation of any credit or debit card swipe fee may not include taxes and fees added on to the price of the goods or services purchased by the credit or debit card. (Banking and Insurance) | Senate • Mar 22, 2023: Introduced and Referred | Introduced |
| AL 2023rs HB 188 |
Chip Brown
|
Relating to public contracts; to prohibit the consideration of environmental, social, and governance (ESG) criteria when awarding a public contract; and to require a responsible bidder, as a condition of being awarded a public contract, to certify, under penalty of perjury, that its employees will not be subject to a personal ESG rating as a basis of hiring, firing, or evaluation. (State Government) | House • Mar 22, 2023: Introduced and Referred | Introduced |
| AL 2023rs HB 181 |
Mack Butler
|
Relating to financial institutions; to amend Section 5-5A-43, Code of Alabama 1975, to prohibit financial institutions from disclosing certain customer financial records of firearms transactions with certain exceptions; to allow the Department of Finance to disqualify a financial institution from any selection process for state contracts for violation of this prohibition; and to provide civil penalties and criminal penalties for violation of the act. (Financial Services) | House • Mar 22, 2023: Introduced and Referred | Introduced |
| AL 2023rs HB 164 |
Andy Whitt
|
Relating to public high schools; to require students to complete a personal financial literacy and money management course before graduation; to provide for the creation and administration of a financial literacy examination; and to require the reporting of a summary of examination results to the State Department of Education. (Education Policy) | House • Mar 21, 2023: Introduced and Referred | Introduced |
| AL 2023rs HB 58 |
Corley Ellis
|
Relating to insurance; to define lender-placed insurance on real property and provide a framework for regulating lender-placed insurance; to require separation between lenders and insurers and define unfair competitive practices in the sale, placement, solicitation, and negotiation of lender-placed insurance; to further provide for the term of the lender-placed insurance on real property and for the calculation of coverage and payment of premium; to provide for prohibited practices in the issuance of lender-placed insurance on real property; to require certain details of the insurance to be set forth in the policy or certificate of insurance; to require for the filing and approval by the Department of Insurance of the forms and rates to be charged for the insurance; to provide for the enforcement of the act and penalties for violations of the act; and to provide for judicial review of orders of the Commissioner of Insurance. (Insurance) | House • Mar 06, 2023: Introduced and Referred | Introduced |
| AL 2023rs HB 47 |
Cynthia Almond
|
Relating to the Alabama Uniform Trust Code; to amend Section 19-3B-414, Code of Alabama 1975, to further provide for the modification or termination of an uneconomic trust. (Financial Services)
On the agenda • House Financial Services standing meeting Apr 05, 2023 09:00am Room 617 |
House • Mar 06, 2023: Introduced and Referred | Introduced |
| AL 2023rs SB 11 |
Will Barfoot
|
Relating to the Alabama Uniform Trust Code; to amend Section 19-3B-414, Code of Alabama 1975, to further provide for the modification or termination of an uneconomic trust. (Judiciary) | House • Mar 01, 2023: Pending | Introduced |
