The Alabama Legislature completed its 15th legislative day yesterday, which marks the halfway point of the 2023 Regular Session. Legislative activity is heating up at the Alabama Statehouse as budgets begin to move, and a number of high-profile bills begin to work their way through the process. The Legislature will reconvene on Tuesday and will likely meet for three days next week.
General Fund Budget Passes House
The House passed the State General Fund budget this week, along with its companion bills, sending the largest General Fund budget in state history to the Senate for consideration. The $3.024 billion budget marks a substantial about face for a budget that was often pinching pennies since the Great Recession. High tax receipts coupled with unprecedented federal funding has allowed the legislature to invest significantly in chronically strapped agencies such as the Alabama Medicaid Agency ($70 million increase) and the Department of Corrections ($60 million increase). The budget also provides a 2% cost of living wage increase for state employees. Alabama’s Department of Environmental Management’s (“ADEM”) budget nearly doubled, from $12.3 million to $24.4 million in part due to the State having to provide matching funds for clean water and infrastructure grant programs provided by federal law.
Grocery Tax Cut and Education Budget Next Up
Generally, both chambers will be working on supplemental and regular budgets in the coming weeks. The Senate has not yet acted on the Education Trust Fund budget as leadership has continued to discuss the possibility of tax rebates, tax cuts, and other proposals to spend the unprecedented budget surplus. One proposal that seems to be gaining traction is SB257 by Sen. Andrew Jones. The bill proposes to cut the State’s 4% tax on groceries by 0.5% a year beginning this fall and then every fall thereafter until the new sales tax rate reaches 2%. The bill provides that the annual tax reduction will only be implemented if sales tax receipts grow by 2% or more a year. The bill, when fully implemented, would save grocery shoppers approximately $304 million per year and use the SNAP definition of food, which includes most products in a grocery store except for hot foods, alcohol, tobacco, pet food, and cleaning supplies. As written, the bill does not propose to replace the lost revenue with a new source.
School Choice Bills
The PRICE Act, filed by Senator Larry Stutts, had a public hearing conducted this week in the Senate Education Policy Committee where supporters and critics debated the bill. The legislation establishes education savings accounts that would provide just under $7,000 for parents to spend on behalf of their child for educational-related expenses, including home school, private school, virtual school, and tutoring. No vote was taken as Education Policy Committee Chair, Sen.Chesteen, moved for the bill to be re-referred to the Senate Finance and Taxation Budget Committee.
Rep. Terri Collins’ bill to update Alabama’s charter school law also failed to make it out of the House Education Policy Committee this week due to absent members. She vowed to make corrections to the bill prior to bringing it back for consideration next week. The bill would clarify funding language for conversion charter schools, which are public schools currently in operation that convert to a charter, remove the State School Board’s ability to appoint members to the Alabama Public Charter School Commission and make other technical changes. Gov. Kay Ivey indicated her support for the charter school bill along with strengthening the Alabama Accountability Act in previous months, including in her State of the State address. Legislation to improve and expand the Alabama Accountability Act was filed yesterday by Sen. Chesteen. His bill proposes to increase the tax credit cap available to taxpayers who receive a dollar-for-dollar credit against their income tax (up to 100%) from $30 million to $40 million. The bill would also raise the cap up to $60 million over time if the cap is met, among other things.
ESG Bill Filed
Sen. Dan Roberts filed a bill (SB261) related to ESG (environmental, social, and governance) yesterday. ESG is a framework that is used to assess the business practices and performance of an organization on sustainability and social issues. SB261 would prohibit governmental entities from entering into any public contract for goods or services with companies that engage in economic boycotts of certain businesses and industries, including natural resources and firearms. Critics allege that ESG scoring is being used to harm fossil fuel and energy companies, gun makers, mining and timber ventures, and other similar companies. The bill requires companies to provide written verification prior to executing a contract with the state that it does not engage in economic boycotts or do business with those engaged in economic boycotts. As written, the legislation is very broad, which has many concerned about the unintended consequences of the proposal. The bill is scheduled to be in committee next week.
The association’s governmental relations team is tracking the following bills:
| Bill | Sponsors | Title | Last Action | Latest Version |
| 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. | Senate • Apr 27, 2023: Read Second Time in Second House | Introduced |
| AL 2023rs SB 261 |
Dan Roberts
|
Relating to public contracts; to prohibit governmental entities from entering into certain contracts with companies that boycott businesses because the business engages in certain sectors or does not meet certain environmental or corporate governance standards or does not facilitate certain activities; to provide that no company in the state shall be required, nor penalized for declining to engage in economic boycotts or other actions that further social, political, or ideological interests; to require the Attorney General to take actions to prevent federal laws or actions from penalizing, inflicting harm on, limiting commercial relations with, or changing or limiting the activities of companies or residents of the state based on the furtherance of economic boycott criteria; and to authorize the Attorney General to investigate and enforce this act; and to provide definitions. (Fiscal Responsibility and Economic Development)
On the agenda • Senate Fiscal Responsibility and Economic Development standing meeting May 03, 2023 03:00pm Finance and Taxation |
Senate • Apr 27, 2023: Introduced and Referred (Fiscal Responsibility and Economic Development) | Introduced |
| AL 2023rs SB 231 |
Rodger M. Smitherman
|
Relating to the Uniform Commercial Code; to add Article 12 to the Uniform Commercial Code to govern the property rights of certain intangible digital assets (controllable electronic records), including electronic rights to payment, to provide for a manner to establish the transfer and control of those assets, to provide a mechanism for evidencing certain rights of payment, and to adopt special rules with regard to the payment obligations and conditions of discharge of account debtors on controllable accounts and controllable payment intangibles; to amend Sections 7-1-201, 7-1-204, 7-1-301, 7-1-306, 7-2-102, 7-2-106, 7-2-201, 7-2-202, 7-2-203, 7-2-205, 7-2-209, 7-2A-102, 7-2A-103, 7-2A-107, 7-2A-201, 7-2A-202, 7-2A-203, 7-2A-205, 7-2A-208, 7-3-104, 7-3-105, 7-3-401, 7-3-604, 7-4A-103, 7-4A-201, 7-4A-202, 7-4A-203, 7-4A-207, 7-4A-208, 7-4A-210, 7-4A-211, 7-4A-305, 7-5-104, 7-5-116, 7-7-102, 7-7-106, 7-8-102, 7-8-103, 7-8-106, 7-8-110, 7-8-303, 7-9A-102, 7-9A-104, 7-9A-105, 7-9A-203, 7-9A-204, 7-9A-207, 7-9A-208, 7-9A-209, 7-9A-210, 7-9A-301, 7-9A-304, 7-9A-305, 7-9A-310, 7-9A-312, 7-9A-313, 7-9A-314, 7-9A-316, 7-9A-317, 7-9A-323, 7-9A-324, 7-9A-330, 7-9A-331, 7-9A-332, 7-9A-334, 7-9A-341, 7-9A-404, 7-9A-406, 7-9A-408, 7-9A-509, 7-9A-513, 7-9A-601, 7-9A-605, 7-9A-608, 7-9A-611, 7-9A-613, 7-9A-614, 7-9A-615, 7-9A-616, 7-9A-619, 7-9A-620, 7-9A-621, 7-9A-624, and 7-9A-628, Code of Alabama 1975, and to add Sections 7-9A-107A, 7-9A-107B, 7-9A-306A, 7-9A-306B, 7-9A-314A, and 7-9A-326A to the Code of Alabama 1975, to provide a substantial revision to the Uniform Commercial Code in conformity with a substantial portion of the Uniform Commercial Code Amendments (2022), to clarify the meaning of the term chattel paper and other definitions, to define and provide for hybrid transactions, and to provide extensive amendments to the Uniform Commercial Code providing for the perfection of security interests in controllable electronic records, documents of title, chattel paper, and other assets; and to add Article 12A to the Uniform Commercial Code to provide transitional provisions for the Uniform Commercial Code Amendments (2022).Relating to the Uniform Commercial Code; to add Article 12 to the Uniform Commercial Code to govern the property rights of certain intangible digital assets (controllable electronic records), including electronic rights to payment, to provide for a manner to establish the transfer and control of those assets, to provide a mechanism for evidencing certain rights of payment, and to adopt special rules with regard to the payment obligations and conditions of discharge of account debtors on controllable accounts and controllable payment intangibles; to amend Sections 7-1-201, 7-1-204, 7-1-301, 7-1-306, 7-2-102, 7-2-106, 7-2-201, 7-2-202, 7-2-203, 7-2-205, 7-2-209, 7-2A-102, 7-2A-103, 7-2A-107, 7-2A-201, 7-2A-202, 7-2A-203, 7-2A-205, 7-2A-208, 7-3-104, 7-3-105, 7-3-401, 7-3-604, 7-4A-103, 7-4A-201, 7-4A-202, 7-4A-203, 7-4A-207, 7-4A-208, 7-4A-210, 7-4A-211, 7-4A-305, 7-5-104, 7-5-116, 7-7-102, 7-7-106, 7-8-102, 7-8-103, 7-8-106, 7-8-110, 7-8-303, 7-9A-102, 7-9A-104, 7-9A-105, 7-9A-203, 7-9A-204, 7-9A-207, 7-9A-208, 7-9A-209, 7-9A-210, 7-9A-301, 7-9A-304, 7-9A-305, 7-9A-310, 7-9A-312, 7-9A-313, 7-9A-314, 7-9A-316, 7-9A-317, 7-9A-323, 7-9A-324, 7-9A-330, 7-9A-331, 7-9A-332, 7-9A-334, 7-9A-341, 7-9A-404, 7-9A-406, 7-9A-408, 7-9A-509, 7-9A-513, 7-9A-601, 7-9A-605, 7-9A-608, 7-9A-611, 7-9A-613, 7-9A-614, 7-9A-615, 7-9A-616, 7-9A-619, 7-9A-620, 7-9A-621, 7-9A-624, and 7-9A-628, Code of Alabama 1975, and to add Sections 7-9A-107A, 7-9A-107B, 7-9A-306A, 7-9A-306B, 7-9A-314A, and 7-9A-326A to the Code of Alabama 1975, to provide a substantial revision to the Uniform Commercial Code in conformity with a substantial portion of the Uniform Commercial Code Amendments (2022), to clarify the meaning of the term chattel paper and other definitions, to define and provide for hybrid transactions, and to provide extensive amendments to the Uniform Commercial Code providing for the perfection of security interests in controllable electronic records, documents of title, chattel paper, and other assets; and to add Article 12A to the Uniform Commercial Code to provide transitional provisions for the Uniform Commercial Code Amendments (2022). (Judiciary) | Senate • Apr 20, 2023: Introduced and Referred (Judiciary) | Introduced |
| AL 2023rs HB 348 |
David Faulkner
|
Relating to the Uniform Commercial Code; to add Article 12 to the Uniform Commercial Code to govern the property rights of certain intangible digital assets (controllable electronic records), including electronic rights to payment, to provide for a manner to establish the transfer and control of those assets, to provide a mechanism for evidencing certain rights of payment, and to adopt special rules with regard to the payment obligations and conditions of discharge of account debtors on controllable accounts and controllable payment intangibles; to amend Sections 7-1-201, 7-1-204, 7-1-301, 7-1-306, 7-2-102, 7-2-106, 7-2-201, 7-2-202, 7-2-203, 7-2-205, 7-2-209, 7-2A-102, 7-2A-103, 7-2A-107, 7-2A-201, 7-2A-202, 7-2A-203, 7-2A-205, 7-2A-208, 7-3-104, 7-3-105, 7-3-401, 7-3-604, 7-4A-103, 7-4A-201, 7-4A-202, 7-4A-203, 7-4A-207, 7-4A-208, 7-4A-210, 7-4A-211, 7-4A-305, 7-5-104, 7-5-116, 7-7-102, 7-7-106, 7-8-102, 7-8-103, 7-8-106, 7-8-110, 7-8-303, 7-9A-102, 7-9A-104, 7-9A-105, 7-9A-203, 7-9A-204, 7-9A-207, 7-9A-208, 7-9A-209, 7-9A-210, 7-9A-301, 7-9A-304, 7-9A-305, 7-9A-310, 7-9A-312, 7-9A-313, 7-9A-314, 7-9A-316, 7-9A-317, 7-9A-323, 7-9A-324, 7-9A-330, 7-9A-331, 7-9A-332, 7-9A-334, 7-9A-341, 7-9A-404, 7-9A-406, 7-9A-408, 7-9A-509, 7-9A-513, 7-9A-601, 7-9A-605, 7-9A-608, 7-9A-611, 7-9A-613, 7-9A-614, 7-9A-615, 7-9A-616, 7-9A-619, 7-9A-620, 7-9A-621, 7-9A-624, and 7-9A-628, Code of Alabama 1975, and to add Sections 7-9A-107A, 7-9A-107B, 7-9A-306A, 7-9A-306B, 7-9A-314A, and 7-9A-326A to the Code of Alabama 1975, to provide a substantial revision to the Uniform Commercial Code in conformity with a substantial portion of the Uniform Commercial Code Amendments (2022), to clarify the meaning of the term chattel paper and other definitions, to define and provide for hybrid transactions, and to provide extensive amendments to the Uniform Commercial Code providing for the perfection of security interests in controllable electronic records, documents of title, chattel paper, and other assets; and to add Article 12A to the Uniform Commercial Code to provide transitional provisions for the Uniform Commercial Code Amendments (2022). (Judiciary) | House • Apr 20, 2023: Introduced and Referred (Judiciary) | Introduced |
| AL 2023rs SB 156 |
Chris Elliott
|
To add Chapter 9B to Title 41, Code of Alabama 1975, to establish the Occupational Licensing Boards Division in the office of the Secretary of State; to provide that the division is responsible for the oversight and regulation of certain occupational licensing boards; to provide for the appointment of an executive director, deputy directors, and the employment of staff, including investigators; to provide standards for determining fees; to provide for the appointment of members and the reimbursement of their expenses; to provide uniformity in the collection of fees and the deposit of monies received into the State General Fund. | Senate • Apr 13, 2023: Read Second Time in House of Origin | 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. | House • Apr 12, 2023: Read Second Time in Second House | 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. (Banking and Insurance) | Senate • Apr 12, 2023: Referred to Committee (Banking and Insurance) | 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 • Apr 05, 2023: Carry Over (Insurance) | Introduced |
| AL 2023rs SB 173 |
Sam Givhan
|
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. (State Governmental Affairs) | Senate • Apr 05, 2023: Introduced and Referred (State Governmental Affairs) | Introduced |
| 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 (Banking and Insurance) | 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 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 22, 2023: Carry Over (Insurance) | 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 (Banking and Insurance) | 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. (Commerce and Small Business) | House • Mar 22, 2023: Introduced and Referred (State Government) | 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 (Financial Services) | Introduced |
