Cryptocurrency Bills Introduced in the Alabama Legislature
Last week, three cryptocurrency bills were introduced in the Alabama Legislature, one of which could impact Alabama banks. Senate Bill 283, introduced by Sen. Will Barfoot, R-Pike Road, authorizes the State Treasurer to invest up to 10 percent of available funds in digital assets.
ABA’s Scott Latham spoke with State Treasurer Young Boozer about the bill, voicing industry concerns regarding its potential impact, including safety and soundness issues and possible losses that taxpayers might incur.
Senate Bill 282, also introduced by Sen. Barfoot, exempts digital assets from ad valorem tax. Senate Bill 284, also introduced by Barfoot, requires the publication of certain state expenditures on a public blockchain by 2030.
Each bill was referred to the Senate Banking and Insurance Committee. SB283 and SB284 were on this week’s committee agenda during its Wednesday meeting and were carried over with no action taken.
Rep. Mike Shaw, R—Hoover, introduced several companion bills in the House of Representatives: House Bills 482, 483, and 484. These bills were referred to the Ways and Means General Fund Committee, appeared on this week’s committee agenda, and were also carried over with no action taken.
Senate Passes Education Budget, Sending it to the House
The Alabama Senate has approved the Education Trust Fund (ETF) budget, totaling $9.909 billion for FY26. This represents a $561 million increase from the current fiscal year and now moves to the House for consideration.
Key drivers of this increase include:
- $166 million for weighted funding through the RAISE Act, aimed at better supporting special needs students, students in poverty, and English learners.
- $143 million increase to the Foundation Program, the primary funding source for Alabama’s public schools.
- $101 million for the CHOOSE Act, the state’s new universal school choice program set to begin in the fall of 2025.
- Over $110 million in additional funding for Alabama’s colleges and universities.
In addition to the ETF budget, the Senate also passed a $525 million FY25 supplemental budget to authorize immediate spending. Highlights of this supplemental include:
- $15 million for school safety initiatives under the Alabama School Security Act.
- $30 million for summer and afterschool programs.
- $10 million for college and career readiness grants.
- $56.6 million for deferred maintenance and programming within the Alabama Community College System.
- $37.5 million for construction expenses related to the new Alabama State House.
- $8.8 million for the Department of Veterans Affairs’ Veterans Education Benefits Program.
Furthermore, the Senate advanced a $1.25 billion supplemental appropriation from the Education Trust Fund Advancement and Technology Fund, which is funded by excess revenues. This funding is allocated as follows:
- $342 million for public institutions of higher education.
- $808 million for K-12 schools.
- $100 million to the Department of Education to develop regional career technology centers.
While the Senate’s education funding package does not include a cost-of-living raise, it fully funds the increases requested by the RSA for a higher retirement match and an increased monthly allotment for insurance costs, preventing a rise in premiums for education employees. All of these bills are now awaiting consideration in the House.
Prescription Fee Bill Heads to Gov. Kay Ivey After House Passage
A bill (SB252), sponsored by Sen. Billy Beasley, requiring pharmacy benefit managers (PBMs) to pay independent pharmacies a dispensing fee at or above the Alabama Medicaid Agency rate of $10.64 per prescription, has passed the House. Following the House’s approval, the Senate quickly concurred, sending the bill to Gov. Kay Ivey for her consideration.
During the House proceedings, an amendment was added allowing PBMs to pass on 100% of received rebates. This provision has an exception if the health benefit plan instructs the PBM to apply rebates to individuals at the point of sale or to retain a portion as an administrative fee.
Concerns have been raised by multiple business groups, who have cautioned legislators that the increased fees mandated by SB252 could lead to higher insurance premiums and costs for employers and their employees.
House Approves Hemp Regulation Bill, Sending it to Senate
A bill (HB445), sponsored by Rep. Andy Whitt, which would task the Alabama ABC Board with regulating all hemp products, has passed the House. The legislation includes several key provisions:
- Restricting the sale of hemp products to retail establishments inaccessible to minors.
- Imposing an additional 7% tax on hemp manufacturers and wholesalers.
- Directing the generated tax revenue with 50% going to the General Fund, 25% allocated to counties based on population, and 25% to cities based on population.
- Requiring the ABC Board to license hemp manufacturers, wholesalers, and retailers of consumable products.
The House passed the bill 76-15, with 11 abstentions. It now moves to the Senate, which advanced three related bills out of committee this week. Senators are expected to negotiate a compromise version from these different proposals.
Alfa Health Plan Bill Clears House After Extensive Debate
The Alabama Farmers Federation’s proposal to offer health plans to its members secured House approval on Thursday. The approval followed a lengthy floor debate, much of which centered on the removal of Department of Insurance oversight amendment that had been added in committee earlier in the week.
House Bill 477, sponsored by Rep. David Faulkner (R-Mountain Brook), has undergone several amendments in recent days to incorporate more required coverage and consumer protections. These include provisions preventing the plan from dropping customers due to serious illness.
Opponents of the bill have contended that while the proposed plans resemble insurance, they cannot be legally classified as such because they would not be subject to all the state and federal regulations that govern traditional insurance companies.
The bill now moves to the Senate for further consideration.
Phone Filter and App Protection Bills Face Senate Roadblock
Two bills sponsored by Sen. Clyde Chambliss encountered a setback in the Senate on Wednesday due to a Democrat-led filibuster.
- SB186 would mandate that smartphones and tablets sold to minors come equipped with an activated filter to block sexually explicit content, starting in 2027.
- SB187 would require app store providers, such as Apple’s App Store and Google’s Play Store, to verify user ages and link minors’ accounts to their parents’ accounts, effectively requiring parental consent for app downloads. 1
While both bills were carried over, they could potentially be placed back on the Senate calendar for further consideration during the remainder of the legislative session.
Cell Phone Ban in Alabama Schools Moves Forward
Sen. Donnie Chesteen’s SB92, which would mandate a ban on cell phone use during school hours for K-12 students, has passed the Senate with a unanimous 27-0 vote. The bill includes exceptions for students with special needs, use under staff supervision, and life-threatening emergencies.
This bill now heads to the House, where a similar version of the legislation was passed last week. For the ban to become law, both chambers must approve the exact same bill before it can be sent to Gov. Ivey for her signature.
Lawmakers to on Tuesday with Nine Legislative Days Remaining
Lawmakers are scheduled to return to Montgomery on Tuesday with only nine legislative days left in the 2025 Regular Session. This limited timeframe suggests a potentially busy and decisive period as they aim to finalize pending legislation before the session concludes.
The following bills are currently being tracked by our governmental relations team:
| Bill | Sponsors | Title | Last Action | Latest Version |
| AL 2025rs HB 484 |
Shaw | Public Blockchain, creation of; inclusion of certain state expenditures. (Ways and Means General Fund (House)) | House, Apr 8, 2025: Re-referred to Committee in House of Origin (Ways and Means General Fund) | Introduced |
| AL 2025rs HB 396 |
Paschal | Taxation and Revenue; Homestead ad valorum taxes of certain veterans prohibited from inclusion in debt-to-income ratio (Finance and Taxation General Fund (Senate)) | Senate, Apr 8, 2025: Pending Committee Action in Second House (Finance and Taxation General Fund) | Introduced |
| 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 15, 2025) Position: 121 |
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 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)) | 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)) | 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 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 15, 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 15, 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 |
