Public Hearing Held on Harmful Debanking Bill
ABA Chairman Macke Mauldin and ABA President & CEO Scott Latham testified last Thursday before the Senate Banking Committee on SB228 which is the Equality in Financial Services Act. Expressing industry opposition to the bill, Mauldin highlighted nine federal acts and regulations governing banks already, pointing out this bill would create unnecessary additional burden while also encroaching on banks’ decisions on who to and not to bank. Latham reiterated that banks are in the risk business and must be able to make ordinary business decisions without the government’s hand on the scale as to which accounts are opened or closed.
The committee took no action on the bill.
Alabama House Passes General Fund Budget, Sending it to Senate
The Alabama House of Representatives on Thursday approved the state’s General Fund budget and related legislation, forwarding the spending plan to the Senate for consideration.
The House-passed General Fund budget totals $3.67 billion, representing a $309 million increase compared to the current fiscal year (FY25). This significant rise in spending is primarily attributed to substantial increases in funding for Medicaid, the Department of Corrections, and the Department of Public Health. The budget also includes $40 million in conditional appropriations allocated to the Department of Corrections’ capital improvement fund for construction-related expenses.
Several differences exist between the funding levels recommended by Gov. Kay Ivey and those approved by the House:
- Port of Mobile: Increased to $3 million from the recommended $1 million.
- ADECA Airport Development Grant Program: Increased to $15 million from the recommended $7.5 million.
- Office of Primary Care and Rural Health: Decreased to $500,000 from the recommended $2 million.
- Mental Health (Community Provider Rate Increase under the ID Program): Increased to $11.07 million from the recommended $8.57 million.
In addition to the General Fund budget, the House also passed a FY25 supplemental budget. This supplemental spending plan is notably smaller than in previous years due to slower revenue growth and allows for immediate allocation of funds, including:
- $100,000 to the Alabama State Board of Public Accountancy.
- $8 million to the Unified Judicial System from the Court Automation Fund.
- $4.6 million to the Unified Judicial System from the Advanced Technology and Data Exchange Fund.
- An increase in the amount the Alabama Department of Transportation (ALDOT) can pay on outstanding bond obligations, rising from $113 million to $126 million.
The Senate is expected to take up the Education Trust Fund budget next week.
Senate Leader Takes Gaming Legislation Off Table for 2025 Session
Senate Pro Tem President Garlan Gudger has announced that the Senate will not consider any gambling or lottery legislation during the remainder of the 2025 legislative session.
This decision follows the release of Sen. Greg Albritton’s proposal for a referendum on a lottery and expanded gambling. However, Sen. Gudger stated that with only 12 legislative days left and critical budget matters still pending, there is insufficient time to properly address such a complex issue. He also indicated that the votes needed for passage in the Senate are currently lacking.
Sen. Gudger’s statement effectively halts any potential movement on gambling legislation in the Alabama Senate for the rest of the 2025 session.
House Committee Approves Prescription Fee Bill
A bill requiring pharmacy benefit managers (PBMs) and health plans to reimburse independent pharmacies at a minimum rate set by the Alabama Medicaid Agency has cleared the House Insurance Committee this week. Senate Bill 252 (SB252) includes a mandatory $10.64 dispensing fee per prescription.
The bill has faced opposition from groups such as the Business Council of Alabama and Manufacture Alabama, who argue that the mandated fee will likely increase the cost of employer-sponsored health care plans, ultimately leading to higher costs for businesses and consumers.
During the committee meeting, members adopted an amendment that removed language providing for a private right of action against a PBM or its affiliate for alleged violations of the bill’s new requirements.
SB252 will now proceed to the House floor for a full vote. If the bill passes the House, it will return to the Senate. At that point, the Senate can either approve the changes made by the House with a subsequent vote, or it can request a conference committee. A conference committee would involve a group of House and Senate members working to resolve any differences before holding another vote.
Alabama Lawmakers Consider Bills to Regulate Hemp Products
Two recently introduced bills in the Alabama Legislature aim to establish regulations for products derived from hemp, including delta-8 gummies and delta-9 drinks. The proposals, sponsored by Sen. Rodger Smitherman and Rep. Andy Whitt, seek to strike a balance between allowing responsible adult consumption and ensuring product safety while mitigating the potential for abuse and consumption by minors.
While these two bills saw committee action this week, there are also five other proposals related to the regulation of hemp products.
Senate Bill 255 (SB255), sponsored by Sen. Smitherman, proposes that these hemp-derived products be exclusively sold in establishments dedicated solely to their sale. This would prohibit their availability in locations such as bars, grocery stores, or any other businesses that also sell alcohol. The bill also mandates product testing and would impose an additional 6% sales tax on these items. SB255 has successfully passed out of committee and is now ready for consideration on the Senate floor.
House Bill 445 (HB445), sponsored by Rep. Whitt, outlines a regulatory framework where the Alabama Alcoholic Beverage Control Board (ABC) would oversee all hemp products. The bill would restrict retail sales to establishments inaccessible to minors and would levy an additional 7% sales tax, among other regulations. During committee discussion, opponents raised concerns about the potential impact on the thousands of jobs currently supported by the sale of these products in Alabama and allowing responsible adults access to low-dose drinks. The House committee did not hold a vote on HB445.
Bill Expanding Bond Authority for New State Prison Heads to Governor
The Alabama House of Representatives passed Sen. Greg Albritton’s Senate Bill 60 (SB60) on Tuesday by a vote of 74-16. The legislation provides the state with an additional $500 million in bonding authority to fund the construction of the planned 4,000-bed mega-prison in Escambia County.
While approximately 60% of the funding for the project is currently identified and construction remains several years away, Sen. Albritton and other supporters emphasized that the bill serves as a crucial security measure in the event that other anticipated funding sources do not materialize. The state has experienced substantial cost overruns during the construction of the first mega-prison in Elmore County, with the final cost exceeding $1 billion, significantly higher than the initial estimate of $623 million before construction began.
Having passed both chambers of the legislature, SB60 now goes to Gov. Ivey for her signature to become law.
“Prison to Employment” Bill Advances Towards Final Passage
Sen. Rodger Smitherman’s Senate Bill 138 (SB138), aimed at easing the transition from incarceration to employment, unanimously passed the House Judiciary Committee on Wednesday.
The bill would prevent occupational licensing boards from automatically denying professional licenses – such as those for electricians, massage therapists, or landscape architects – based solely on an applicant’s criminal history. Under SB138, a license could only be denied if the prior crime directly relates to the specific profession in question. The goal of the legislation is to facilitate quicker and easier access to gainful employment for individuals re-entering society after serving time in prison.
SB138 will now move to the House floor for a vote by the full chamber.
Alabama Lawmakers to Reconvene Next Week with 12 Legislative Days Remaining
Alabama lawmakers are scheduled to return to Montgomery tomorrow to continue the 2025 Regular Legislative Session. They will have 12 legislative days remaining to address pending legislation, including the state budgets and any other proposed bills.
Bills currently being tracked by our legislative team include:
| Bill | Sponsors | Title | Last Action | Latest Version |
| AL 2025rs SB 281 |
Shelnutt | Consumer Protection; platforms providing services allowing employees to access earned income prior to paycheck not considered a lender or debt collector; standards on platforms imposed
Senate Calendar: Regular Calendar (April 08, 2025) Position: 144 |
Senate, Apr 3, 2025: Read for the Second Time and placed on the Calendar (Banking and Insurance) | Introduced |
| AL 2025rs SB 130 |
Melson | Financial Institutions and Businesses; authorizes gold and silver bullion and coins as legal tender | House, Apr 3, 2025: Signature Requested | Enrolled |
| AL 2025rs SB 284 |
Barfoot | Public Blockchain, creation of; inclusion of certain state expenditures. (Banking and Insurance (Senate)) | Senate, Apr 1, 2025: Pending Committee Action in House of Origin (Banking and Insurance) | Introduced |
| AL 2025rs SB 283 |
Barfoot | State Treasurer, investment of funds in digital assets (Banking and Insurance (Senate)) | Senate, Apr 1, 2025: Pending Committee Action in House of Origin (Banking and Insurance) | Introduced |
| AL 2025rs SB 282 |
Barfoot | Virtual currency, declares preemption of virtual currency or cryptocurrency regulation by the Legislature and exempts virtual currency from ad valorem tax (Finance and Taxation General Fund (Senate)) | Senate, Apr 1, 2025: Pending Committee Action in House of Origin (Finance and Taxation General Fund) | Introduced |
| AL 2025rs HB 484 |
Shaw | Public Blockchain, creation of; inclusion of certain state expenditures. (Financial Services (House)) | House, Apr 1, 2025: Pending Committee Action in House of Origin (Financial Services) | Introduced |
| AL 2025rs HB 483 |
Shaw | Virtual currency, declares preemption of virtual currency or cryptocurrency regulation by the Legislature and exempts virtual currency from ad valorem tax (Ways and Means General Fund (House))
On the agenda – House Ways and Means General Fund Standing Meeting Apr 09, 2025 01:30pm Room 617 |
House, Apr 1, 2025: Pending Committee Action in House of Origin (Ways and Means General Fund) | Introduced |
| AL 2025rs HB 482 |
Shaw | State Treasurer, investment of funds in digital assets (Ways and Means General Fund (House))
On the agenda – House Ways and Means General Fund Standing Meeting Apr 09, 2025 01:30pm Room 617 |
House, Apr 1, 2025: Pending Committee Action in House of Origin (Ways and Means General Fund) | Introduced |
| AL 2025rs HB 297 |
Fidler | International wire transfers; fee imposed on transfers; fee proceeds distributed to counties for specified purposes; income tax credit for paid wire transfer fees authorized (Financial Services (House)) | House, Mar 20, 2025: Re-referred to Committee in House of Origin (Financial Services) | Introduced |
| AL 2025rs HB 396 |
Paschal | Taxation and Revenue; Homestead ad valorum taxes of certain veterans prohibited from inclusion in debt-to-income ratio
House Calendar: Regular Calendar (April 08, 2025) Position: 66 |
House, Mar 19, 2025: Read for the Second Time and placed on the Calendar (Ways and Means General Fund) | Introduced |
| AL 2025rs HB 418 |
Kiel | Financial Institutions and Insurers; using social credit score to discriminate prohibited; violations of insurers an unfair trade practice; fines, penalties and remedies authorized (Financial Services (House))
Companion Bills: SB 228 |
House, Mar 6, 2025: Pending Committee Action in House of Origin (Financial Services) | Introduced |
| AL 2025rs SB 228 |
Jones (A) | Financial Institutions and Insurers; using social credit score to discriminate prohibited; violations of insurers an unfair trade practice; fines, penalties and remedies authorized (Banking and Insurance (Senate))
Companion Bills: HB 418 |
Senate, Mar 5, 2025: Pending Committee Action in House of Origin (Banking and Insurance) | Introduced |
| AL 2025rs SB 77 |
Weaver | International wire transfers; fee on wire transfers imposed; income tax credit for wire transfer fees paid, authorized; Securities Commission and Revenue Department to administer
Senate Calendar: Regular Calendar (April 08, 2025) Position: 2 |
Senate, Feb 13, 2025: Carried Over to the Call of the Chair | Introduced |
| AL 2025rs SB 141 |
Butler (T) | Financial Institutions; prohibit fee for periodic paper billing statements (State Governmental Affairs (Senate)) | Senate, Feb 11, 2025: Pending Committee Action in House of Origin (State Governmental Affairs) | Introduced |
| AL 2025rs SB 29 |
Elliott | Government issued licenses, permits, and certifications; time frame imposed for issuing licenses etc.; exceptions provided
Senate Calendar: Regular Calendar (April 08, 2025) Position: 4 |
Senate, Feb 11, 2025: Read for the Second Time and placed on the Calendar (County and Municipal Government) | Introduced |
| AL 2025rs HB 192 |
Shirey | International wire transfers; fee on wire transfers imposed with proceeds for ELL instructors; income tax credit for wire transfer fees paid, authorized; Securities Commission and Revenue Department to administer (Ways and Means Education (House)) | House, Feb 5, 2025: Pending Committee Action in House of Origin (Ways and Means Education) | Introduced |
| AL 2025rs SB 17 |
Coleman (M) | Digital assets, prohibits the state from certain actions related to digital assets and exempts certain actions from classification as a security or money transfer (Banking and Insurance (Senate)) | Senate, Feb 4, 2025: Pending Committee Action in House of Origin (Banking and Insurance) | Introduced |
