Capitol Notes: Senate Passes Education Trust Fund Budget

Thursday marked the end of another grueling three-day week in the Statehouse as lawmakers moved a number of key bills through the legislative process. The Legislature has completed 18 days of the 30-day Regular Session, which must end by mid-June.

Education Budget and Supplemental

The Senate passed an $8.8 billion Education Trust Fund budget and a $2.8 billion supplemental spending bill on Thursday, the largest education spending plan in Alabama history.  The plan includes $5.9 billion for K-12, $2.4 billion for higher education, $195 million for early childhood education, and a 2% pay raise for K-12 and community college teachers.  The proposals have changed since Gov. Kay Ivey’s initial recommendations in March, and they now move to the House, where even more changes could be made.

Notably, the supplemental bill that appropriates the $2.8 billion in surplus funds has changed since the initial filing. The supplemental appropriates the following:

  • $512 million to the Alabama Community College System, including $100 million for Prison Education;
  • $500 million to the Educational Opportunities Reserve Fund;
  • $471 million to the State Department of Education to be appropriated in the following manner:
    • $360 million on top of the 2020 bond funds to offset inflation;
    • $24 million for summer math camps
    • $15 million for the Saban Discovery Center to help children be educated in STEAM-related fields;
    • $10 million to existing charter schools;
    • $10 million for College and Career Readiness grants;
    • $7 million for capital expenditures at American Village
    • $5 million for Junior Achievement
    • $200,000 to the Alabama Holocaust Commission
  • $275 million in income tax rebates, which will total $100 per filer, down from the $400 per filer in Ivey’s initial plan;
  • $185 million to the Lt. Governor for a new K-12 Capital Grant Program that is established under separate legislation to provide grants to eligible school systems to assist with capital projects, deferred maintenance, and technology needs;
  • $111.5 million to the Department of Commerce for a workforce and innovation center for rural workforce preparation, a hydroelectric workforce training center in Lauderdale County, $30 million for an AIDT electric vehicle workforce training center, $8.5 million for the Challenger Learning Center, and $40 million to create the Alabama Site Development Fund, which is controlled by SIDA to help develop sites for economic projects;
  • $64 million to K-12 education for purchasing new buses and classroom materials;
  • $59 million to PEEHIP to cover Covid-related expenditures;
  • $56 million to the Alabama Innovation Fund for various programs;
  • $35 million to establish the Alabama Centers for Rural Healthcare Opportunities;
  • $30 million to the Distressed Higher Education Schools loan program that is moving through the Legislature and designed to help schools like Birmingham Southern, which would be required to put up collateral to receive a loan from the State;
  • $23 million to the Executive Commission on Community Services Grants;
  • $21.7 million to the Alabama Commission on Higher Education, which includes $15 million for Outcomes-Based Funding;
  • $18.5 million to pay off bonds;
  • $10 million to the State Insurance Fund;
  • $8 million to the Alabama Institute for the Deaf and Blind;
  • $7 million to the Marine Environmental Science Consortium for capital expenditures;
  • $6 million each to the Alabama School of Math and Science and the Alabama School of Fine Arts;
  • $6 million to the Historical Commission for the Operating Grant Program;
  • $5 million to the Alabama Space Science Exhibit Commission;
  • $4.1 million to the Department of Early Childhood Education;
  • $2.5 million to the Educational Television Commission;
  • $2.3 million to the Department of Rehabilitation Services;
  • $500,000 to the Department of Examiners of Public Accounts for conducting a feasibility study regarding a residency program for rural healthcare needs;
  • $200,000 to the Alabama Fire Fighters Fire College for a training module; and
  • Funding for various projects at the State’s 4-year colleges.

ESG Bill Update

Sen. Dan Roberts’ SB261, a bill purported to combat national ESG (environmental, social, and governance) efforts, was originally set for a committee hearing last week, but the bill was pulled from the agenda as concerns were raised by Alabama businesses. The bill prohibits public entities from contracting with businesses that engage in “economic boycotts.”  Many have expressed concerns that the bill is too broad and vague and that, consequently, it could hurt the very businesses it is intended to help.  The bill is expected to be in committee this week.

Other Key Bills Moving

Rep. Steve Clouse’s HB254 requiring new municipal gas taxes and fuel levies to be used solely for infrastructure-related costs passed the House on Tuesday. Clouse’s bill, or some variation of it, has been filed repeatedly in the years since the State raised the gas tax in 2019. Clouse’s bill would not be retroactive, but any new tax imposed on motor fuel by municipalities would have to be dedicated to roads, bridges, and similar projects.

SB247 by Senator Will Barfoot related to “divisive concepts” passed the Senate State Governmental Affairs committee last week. This bill, and its companion by Rep. Ed Oliver in the House, would prohibit schools, state agencies, and universities from directing students and employees to assign fault, blame or bias, to someone’s race, color, religion, sex, ethnicity, or national origin.

By a vote of 26-4, the Senate gave final approval to HB261, which provides that only biological males may play male sports and that only biological females may play female sports at the collegiate level. The State has already banned transgender athletes in K-12 sports, and now the ban would extend to collegiate and university events as well. The bill now goes to Gov. Ivey for her approval.

The House and Senate versions of the PRICE Act, which establishes Education Savings Accounts, have now both had public hearings in their respective committees. Both bills are expected to return to their committees in the coming weeks for a vote. Also, Rep. Terri Collins’ bill to reform the State’s charter school law received a favorable report in the House Education Policy Committee last week.

State Cookie

A critically important bill, HB 421 by Rep. Reed Ingram, was introduced last week.  The bill would designate the Yellowhammer Cookie as the official state cookie. It has come to our attention that this cookie includes peanuts, the state’s official legume, and pecans, the state’s official nut, in its recipe.  Oliver Blades, son of Josh Blades, is working with classmates at Trinity Presbyterian School to advance this legislation. Some believe this legislation, if enacted, will result in a better (and maybe a little bigger) Alabama. We will be watching this one closely.

The Legislature will reconvene tomorrow.

The following bills are currently being tracked by our governmental relations team.

Bill Sponsors Title Last Action Latest Version
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. Senate • May 03, 2023: Enrolled Enrolled
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. House • May 03, 2023: Read Second Time in House of Origin 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). House • May 03, 2023: Read Second Time in House of Origin 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. House • May 02, 2023: Enrolled Enrolled
AL
2023rs
HB 408
Ben Harrison

 

Relating to the Uniform Commercial Code; to amend Section 7-1-201, to provide a definition for “central bank digital currency;” and to specify that the definition of “money” does not include central bank digital currency. (Financial Services) House • May 02, 2023: Introduced and Referred (Financial Services) Introduced
AL
2023rs
SB 273
Garlan Gudger

 

Relating to child care and workforce development; to establish the employer tax credit and child care provider tax credit; to make legislative findings. (Finance and Taxation Education) Senate • May 02, 2023: Introduced and Referred (Finance and Taxation Education) 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) 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
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
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 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