Following the Senate’s recent approval of the Education Trust Fund (ETF) appropriation bills, the Alabama House of Representatives has now passed its version of the crucial budget.
The main ETF budget bill, SB112, saw minimal changes in the House. This budget allocates $9.9 billion to Alabama’s education system. A key component includes a $104 per month, per employee increase to help educators cover rising premium costs for the state’s health insurance plan.
The House also passed three related appropriation bills – SB111, SB113, and SB114 – totaling nearly $2.3 billion. Notably, SB111 marks the first instance of the Legislature drawing funds from the Educational Opportunities Reserve Fund for two significant programs:
- Renewing Alabama’s Investment in Student Excellence (RAISE) Act: $375 million has been allocated as initial funding for this act (passed separately as SB305 by the House and now headed to the governor). The RAISE Act aims to provide supplemental funding to local schools for students with additional needs, such as those who are gifted, have special needs, or are non-native English speakers.
- CHOOSE Act (Education Savings Accounts): An additional $80 million (increased from an earlier amount) from the Educational Opportunities Reserve Fund will address the high demand (36,000 applicants) for educational school choice options under the CHOOSE Act. This education savings account bill is set to take effect for the 2025-2026 school year.
Across the ETF and the three additional funding bills, the proposed funding breakdown is as follows:
- K-12 Education: $8.3 billion
- Higher Education: $3.08 billion
- Other Agencies: Approximately $792 million
Now, the Senate has two options: concur with the House’s amendments to these funding bills which would then send them to Gov. Kay Ivey for her consideration, or request a conference committee to resolve any differences. House ETF Budget Chair Representative Danny Garrett, however, expressed optimism to reporters, stating his belief that the Senate will concur with the House’s changes next week.
In separate legislative activity, the Senate’s version of the state’s General Fund budget for non-education spending was passed out of committee this week. The Senate is now poised for its final votes on this budget. A detailed analysis of the Senate’s changes to the General Fund will be provided in next week’s update.
Senate Greenlights Energy Infrastructure Bank Bill, Heads to House
The Senate has unanimously passed SB304, sponsored by Sen. Arthur Orr, which establishes a state energy infrastructure bank. This bill, now moving to the House for consideration, proposes the issuance of up to $1 billion in bonds. These funds would be used to provide loans and other financial assistance for qualifying infrastructure projects, specifically defined as:
- Projects identified by the Department of Commerce that are eligible for economic development incentives.
- Energy infrastructure projects deemed necessary for the development of potential project sites approved by the State Industrial Development Authority.
- Projects that enhance existing energy infrastructure in areas where such infrastructure is needed to support future economic development.
Senate Passes Bill to Reform Birmingham Water Works Board, Sending it to House
The Alabama Senate unanimously passed SB330, a bill aimed at reforming and reconstituting the Birmingham Water Works Board (BWWB). Sen. Dan Roberts, Sen. Jabo Waggoner, and Sen. Shay Shelnutt sponsored the legislation, which advanced after productive negotiations during the legislative workweek.
While the bill’s language is applicable statewide, its specific criteria – targeting municipal water works boards serving customers in four or more counties – currently applies only to the BWWB.
The initial version of SB330 proposed reducing the BWWB from a nine-member board to a five-member board. However, through negotiations, the bill was amended to include two additional appointed positions. These new seats will be filled by appointees of the governor and the Birmingham City Council.
Furthermore, the reformed board will be subject to several accountability changes, including a requirement that each new member possess experience in finance, engineering, or business. If the bill successfully passes the House and receives the Governor’s signature, these changes to the BWWB would take effect immediately.
Senate Committee Approves Alfa Health Plan Proposal, Amendment on Pre-existing Conditions Tabled
The Alabama Farmers Federation’s initiative to provide health plans to its members is one step closer to reality. HB477, sponsored by Rep. David Faulkner, received approval from the Senate Committee on Banking and Insurance on Tuesday. This vote positions the bill for consideration by the full Senate, the final hurdle before potential passage.
Alfa aims to offer its membership, predominantly farmers and their families, more affordable health insurance options compared to those currently available. During the committee meeting, members chose to table an amendment proposed by Sen. Bobby Singleton. This amendment would have mandated that the Alfa health plans cover individuals with pre-existing medical conditions. Alfa has stated that it requires flexibility in defining coverage details to guarantee cost savings for its members.
Vaping Bill Advances Towards Final Senate Vote
HB8, sponsored by Rep. Barbara Drummond, has successfully passed through the Senate Committee on Healthcare on Wednesday. This clears the way for a vote by the full Senate, the final step before the bill can potentially become law.
The proposed legislation includes several key provisions aimed at curbing youth vaping and enhancing enforcement:
- Vending Machine Ban: The bill prohibits the sale and distribution of tobacco and vaping alternatives through vending machines.
- Vaping Awareness Program: It mandates the State Board of Education to develop a model vaping awareness and prevention program for local school boards to implement.
- Distributor Permitting Fees: The bill establishes permitting fees for tobacco and vaping product distributors, creating a dedicated fund for enforcement efforts.
- Increased Penalties: Fines for the unlawful sale of tobacco and vaping products to minors will be increased under this legislation.
Senate Unanimously Passes Administrative Procedure Act Reform
The Alabama Senate has unanimously approved SB248, sponsored by Sen. Arthur Orr. This legislative action aims to align state administrative procedures with recent federal changes stemming from Supreme Court rulings. These rulings have shifted power dynamics, granting individuals and businesses greater leverage when challenging what they perceive as overreaching agency actions.
Current Alabama law mandates that reviewing courts consider agency rulings in contested cases as “just and reasonable” regarding factual matters and the agency’s interpretation of laws. SB248 introduces a significant revision to this standard. Under the proposed change, courts will be permitted to independently consider an agency’s legal interpretations, rather than deferring to them. Furthermore, the revised standard encourages courts to favor interpretations that limit agency power and maximize individual liberty. The bill will now be considered by the House of Representatives.
Alabama Legislature Nears Conclusion of 2025 Legislative Session
The Alabama Legislature concluded its 25th legislative day this week, marking the approach of the end of the 2025 Regular Session. With a maximum of 30 legislative days, lawmakers will reconvene tomorrow for its 26th day. This leaves only five legislative days remaining to finalize pending legislation.
The following bills are being tracked by our governmental relations team.
| Bill | Sponsors | Title | Last Action | Latest Version |
| AL 2025rs HB 610 |
Harrison | Constitutional Amendment; authorizing Legislature to establish a state bank; create a commission to operate bank or designate a state agency to oversee its operations (Financial Services (House)) | House, Apr 24, 2025: Pending Committee Action in House of Origin (Financial Services) | 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
House Calendar: Special Order Calendar (April 29, 2025) Position: 16 |
House, Apr 24, 2025: Read for the Second Time and placed on the Calendar (Financial Services) | 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
Senate Calendar: Regular Calendar (April 29, 2025) Position: 162 |
Senate, Apr 17, 2025: Read for the Second Time and placed on the Calendar (Finance and Taxation General Fund) | Introduced |
| AL 2025rs HB 587 |
Shaw | Information Technology Auditors, qualifications for being hired to perform audits on state chartered financial institutions specified (Financial Services (House)) | House, Apr 17, 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
House Calendar: Regular Calendar (April 29, 2025) Position: 81 |
House, Apr 17, 2025: Read for the Second Time and placed on the Calendar (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
Senate Calendar: Regular Calendar (April 29, 2025) Position: 165 |
Senate, Apr 17, 2025: Read for the Second Time and placed on the Calendar (Finance and Taxation General Fund) | Introduced |
| AL 2025rs SB 130 |
Melson | Financial Institutions and Businesses; authorizes gold and silver bullion and coins as legal tender | Senate, Apr 14, 2025: Enacted | Act Number 2025-123 |
| 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 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 29, 2025) Position: 103 |
Senate, Apr 3, 2025: Read for the Second Time and placed on the Calendar (Banking and Insurance) | Introduced |
| 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 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 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 29, 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 29, 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 |
