Lawmakers Prioritize Budgets for Final One-Third of Session
With two-thirds of the 2024 session complete, the Alabama Legislature is focusing on its most crucial task: passing the General Fund and the Education Trust Fund (ETF) budgets – along with supplemental funding bills for each.
General Fund Budget Takes Shape in the Senate
Sen. Greg Albritton, chair of the General Fund Committee, is leading the budget’s development in the Senate. His proposed version prioritizes several key areas:
- Increased prison spending: The plan allocates an additional $25 million for debt service related to prison construction bonds and raises prison construction funding from $100 million to $150 million.
- Mental health support: The budget includes nearly $30 million for the Alabama Department of Mental Health, with $18 million specifically dedicated to staffing at the Taylor Hardin Secure Medical Facility in Tuscaloosa.
- Cost-of-living adjustments: State employees will receive a 2% cost-of-living increase.
- Economic development adjustments: Funding for the State Industrial Development Authority’s site development program is reduced from $25 million to $15 million, while funding for electric vehicle infrastructure grants is eliminated.
Sen. Albritton’s proposal passed committee and is expected for a vote on the Senate floor next week.
Education Trust Fund Budget Under Review in the House
This year, the House of Representatives is starting the ETF budget process, with Rep. Danny Garrett chairing the Ways and Means Education Committee. The committee held a hearing yesterday to discuss Gov. Kay Ivey’s initial proposal, and Rep. Garrett anticipates minimal changes.
Key elements of the anticipated ETF budget include:
- $20 million allocation for the construction of the Alabama School of Healthcare Sciences in Demopolis.
- 2% raise for all education employees.
- Additional funding to support struggling readers beyond third grade.
The total ETF budget is expected to be around $9.3 billion. The House committee will consider the budget again early next week before it goes to the House floor for a vote.
Stay Tuned for Further Details
Expect more details and changes to both budgets as they progress through the legislative process. We’ll provide a comprehensive update in next week’s Legislative Report.
Workforce, Economic Development Package Bills
Proposals submitted two weeks ago under the “Working for Alabama” initiative aimed at enhancing Alabama’s workforce policies have started advancing through committee this week.
SB247, known as the Alabama Workforce Transformation Act, is poised to merge and streamline various workforce development agencies, programs, and mechanisms into a single state agency overseen by a cabinet-level official. Similarly, SB252, the Alabama Growth Alliance Act, seeks to establish a public-private partnership dedicated to the state’s long-term economic development goals. Both bills are slated for consideration on the Senate floor next week.
Meanwhile, two other significant workforce bills are still under discussion in committee. One proposes a childcare tax credit for businesses that support childcare services for their employees while the other establishes a state workforce housing tax credit to incentivize the private development of affordable workforce housing. Budget chairs are currently finalizing these bills, and it is anticipated that they will be considered along with the other Working for Alabama bills next week.
Gaming Bill Stalled in Legislative Tug-of-War
The House and Senate are locked in a stalemate over a gaming bill.
Here’s a breakdown for clarity:
- The House passed a robust gaming package that included a lottery, casino expansion, and sports betting.
- The Senate passed a slimmed-down gaming package.
- The House rejected the Senate’s version and wants a more expansive bill with wider gambling options and funding for specific programs like Medicaid expansion.
- To reach a compromise, both chambers need to agree to a conference committee. This committee would have three members from each chamber who would negotiate a new bill.
- The current issue: The Senate hasn’t responded to the House’s request for a conference committee.
Possible outcomes:
- The Senate can reject the request: This kills the bill altogether.
- The Senate can agree to a conference, but no compromise is reached: Again, the bill dies.
- The conference committee reaches a compromise: Both the House and Senate need to approve the new version separately. This could be difficult as the two chambers have very different starting points:
- The House wants a major expansion of gambling and program funding.
- The Senate wants no new casinos or sports betting, with revenue split between various programs.
In short, the gaming bill faces an uncertain future due to the disagreement between the House and Senate.
Alabama House Approves Ethics Reform Bill
The Alabama House of Representatives overwhelmingly passed a bill reforming the state’s ethics laws. The vote was 79-9, with strong support despite opposition from key figures.
The Bill: Streamlining and Toughening Ethics Laws
- Rep. Matt Simpson’s HB227 aims to simplify the current ethics code, which critics say is confusing and prone to misunderstandings.
- The bill would create new felony offenses for major ethics violations while downgrading some lesser offenses to misdemeanors.
- It also changes who prosecutes violations. Currently, the Ethics Commission handles them. HB227 would shift this responsibility to district attorneys.
Concerns and Next Steps
- The Alabama Attorney General and the Ethics Commission Director both oppose the bill. They worry it might weaken overall ethics enforcement.
- Rep. Simpson, however, argues the changes will give Alabamians a clearer understanding of the rules. He also proposes a buffer period until June 2025 to iron out any wrinkles before it takes effect.
- Now, the bill heads to the Alabama Senate for consideration.
Alabama Considers Occupational Licensing Overhaul: SB224 Up for Debate
A sweeping reform bill (SB224) designed to revamp Alabama’s occupational licensing system has cleared a key committee hurdle in the Senate. This legislation, championed by Sen. Elliott and backed by Gov. Ivey, aims to bring more oversight and consistency to the way the state regulates various professions.
What the Bill Does:
- Centralizes oversight: SB224 would consolidate dozens of independent occupational boards under a new Office of Occupational and Professional Licensing within the Department of Labor. These boards currently operate with limited oversight, similar to government agencies, but lack the same level of accountability.
- Streamlines process: The goal is to create a more efficient system for professionals seeking licenses to work in Alabama. This could benefit tens of thousands of workers across various fields.
- Addresses mismanagement concerns: The bill comes in response to concerns about potential mismanagement within certain existing boards.
Opposition and Debate:
- Government growth concerns: Critics argue that SB224 might lead to an expansion of government bureaucracy.
- Cost-effectiveness questions: Some suggest that existing boards, often run by private entities, can operate more efficiently than government agencies.
The Road Ahead:
- The bill’s passage through the Senate committee is a significant step, but it still needs approval from the full Senate and potentially the House before becoming law.
- Debate surrounding the potential impact on government size and cost-effectiveness is likely to continue.
The Alabama Legislature its 19th legislative day this week and will return on Tuesday for day 20 out of a maximum of 30 legislative days.
Our governmental relations team is currently tracking the following bills:
| Bill | Sponsors | Title | Last Action | Latest Version |
| AL 2024rs SB 243 |
Dan Roberts
|
Economic development; state law authorizing counties and municipalities to provide for innovation districts as public corporations authorized; innovation district use of public funds for public or private persons authorized; Constitutional Amendment
Senate Calendar: Regular Calendar (April 09, 2024) Position: 119 |
Senate • Apr 04, 2024: Read for the Second Time and placed on the Calendar (Fiscal Responsibility and Economic Development) | Introduced |
| AL 2024rs SB 242 |
Bobby D. Singleton
|
Innovation Districts; establishment of by counties and municipalities as public corporation authorized; provide for the powers of innovation districts
Senate Calendar: Regular Calendar (April 09, 2024) Position: 118 |
Senate • Apr 04, 2024: Read for the Second Time and placed on the Calendar (Fiscal Responsibility and Economic Development) | Introduced |
| AL 2024rs SB 253 |
Donnie Chesteen
|
Alabama Workforce Pathways Act, different pathways for high school diplomas based on future career plans
Companion bills: HB 373 Senate Calendar: Regular Calendar (April 09, 2024) Position: 109 |
Senate • Apr 04, 2024: Read for the Second Time and placed on the Calendar (Education Policy) | Introduced |
| AL 2024rs SB 247 |
Steve Livingston
|
Alabama Workforce Transformation Act FY24 Regular Session SENATE
Senate Calendar: Regular Calendar (April 09, 2024) Position: 112 |
Senate • Apr 04, 2024: Read for the Second Time and placed on the Calendar (Fiscal Responsibility and Economic Development) | Introduced |
| AL 2024rs SB 252 |
Greg J. Reed
|
Alabama Growth Alliance Bill
Companion bills: HB 372 Senate Calendar: Regular Calendar (April 09, 2024) Position: 113 |
Senate • Apr 04, 2024: Read for the Second Time and placed on the Calendar (Fiscal Responsibility and Economic Development) | Introduced |
| AL 2024rs HB 349 |
James Lomax
|
Innovation Districts; establishment of by counties and municipalities as public corporation authorized; provide for the powers of innovation districts. | House • Apr 04, 2024: Read for the Second Time and placed on the Calendar (Economic Development and Tourism) | Introduced |
| AL 2024rs HB 372 |
Randall Shedd
|
Alabama Growth Alliance Bill
Companion bills: SB 252 |
House • Apr 04, 2024: Read for the Second Time and placed on the Calendar (Economic Development and Tourism) | Introduced |
| AL 2024rs HB 368 |
Neil Rafferty
|
Economic development; state law authorizing counties and municipalities to provide for innovation districts as public corporations authorized; innovation district use of public funds for public or private persons authorized; constitutional amendment | House • Apr 04, 2024: Read for the Second Time and placed on the Calendar (Economic Development and Tourism) | Introduced |
| AL 2024rs HB 344 |
Danny Garrett
|
Alabama Workforce Transformation Act FY24 Regular Session | House • Apr 04, 2024: Read for the Second Time and placed on the Calendar (Economic Development and Tourism) | Introduced |
| AL 2024rs SB 281 |
Tim Melson
|
Financial Institutions; to prohibit financial institutions from using a merchant category code to identify firearms transactions; to prohibit disclosure of financial information regarding firearms transactions (Banking and Insurance (Senate)) | Senate • Apr 04, 2024: Pending Committee Action in House of Origin (Banking and Insurance) | Introduced |
| AL 2024rs HB 227 |
Matt Simpson
|
Ethics; laws pertaining to public officials and public employees revised | House • Apr 03, 2024: Engrossed | Engrossed |
| AL 2024rs HB 389 |
Shane Stringer
|
Financial Institutions; to prohibit financial institutions from using a merchant category code to identify firearms transactions; to prohibit disclosure of financial information regarding firearms transactions (Public Safety and Homeland Security (House)) | House • Apr 02, 2024: Pending Committee Action in House of Origin (Public Safety and Homeland Security) | Introduced |
| AL 2024rs HB 358 |
Anthony Daniels
|
Relating to child care and workforce development; to establish the employer tax credit and child care provider tax credit; to make legislative findings. (Ways and Means Education (House)) | House • Mar 21, 2024: Pending Committee Action in House of Origin (Ways and Means Education) | Introduced |
| AL 2024rs HB 366 |
Chris Sells
|
Consumer protection, further provides for data breaches (Judiciary (House)) | House • Mar 21, 2024: Pending Committee Action in House of Origin (Judiciary) | Introduced |
| AL 2024rs HB 346 |
Cynthia Almond
|
Establishes the Alabama Workforce Housing Tax Credit Act; creates the Alabama Workforce Housing Tax Credit (Ways and Means Education (House)) | House • Mar 21, 2024: Pending Committee Action in House of Origin (Ways and Means Education) | Introduced |
| AL 2024rs HB 373 |
Kelvin Lawrence
|
Alabama Workforce Pathways Act, different pathways for high school diplomas based on future career plans (Education Policy (House))
Companion bills: SB 253 |
House • Mar 21, 2024: Pending Committee Action in House of Origin (Education Policy) | Introduced |
| AL 2024rs SB 250 |
Chris Elliott
|
Establishes the Alabama Workforce Housing Tax Credit Act; creates the Alabama Workforce Housing Tax Credit (Finance and Taxation Education (Senate)) | Senate • Mar 21, 2024: Pending Committee Action in House of Origin (Finance and Taxation Education) | Introduced |
| AL 2024rs SB 187 |
Merika Coleman
|
Digital assets, regulates digital asset operations (Banking and Insurance (Senate))
Companion bills: HB 214 |
Senate • Feb 29, 2024: Pending Committee Action in House of Origin (Banking and Insurance) | Introduced |
| AL 2024rs SB 151 |
Arthur Orr
|
State Investments and Public Contracts; to prohibit State Treasurer and Board of Control of RSA and TRSA from using ESG factors in investment decisions; may consider pecuniary factors; to prohibit state entities from considering ESG factors when awarding public contracts
Senate Calendar: Regular Calendar (April 09, 2024) Position: 20 |
Senate • Feb 28, 2024: Read for the Second Time and placed on the Calendar (Finance and Taxation Education) | Introduced |
| AL 2024rs HB 242 |
Ben Harrison
|
Anti-discrimination against military. (Judiciary (House)) | House • Feb 27, 2024: Pending Committee Action in House of Origin (Judiciary) | Introduced |
| AL 2024rs HB 214 |
Mike Shaw
|
Digital assets, regulates digital asset operations (State Government (House))
Companion bills: SB 187 |
House • Feb 21, 2024: Pending Committee Action in House of Origin (State Government) | Introduced |
| AL 2024rs HB 205 |
Prince Chestnut
|
Retail establishments; banning cash as payment source prohibited, exceptions provided (Commerce and Small Business (House)) | House • Feb 20, 2024: Pending Committee Action in House of Origin (Commerce and Small Business) | Introduced |
| AL 2024rs HB 61 |
Chip Brown
|
Public contracts; ESG criteria prohibited in public contract. (State Government (House)) | House • Feb 06, 2024: Pending Committee Action in House of Origin (State Government) | Introduced |
