Legislative Session One-Third Complete
The Alabama Legislature convened for two legislative days and one committee day this past week, completing 10 days—one-third—of the 2026 Regular Session. Lawmakers will return on Tuesday to begin their 11th legislative day, out of a maximum of 30.
Education Trust Fund Budget Hearings Continue
Appropriations committee members from both chambers continued their review of Governor Ivey’s proposed budgets this week, turning attention to the Education Trust Fund (ETF). Governor Ivey has recommended a $570 million increase for the ETF, with the majority of additional funding allocated to a 2% salary increase for educators and to address substantial increases in health insurance costs. ETF revenue is currently down 2.3% for the fiscal year.
The Public Education Employees’ Health Insurance Program (PEEHIP) is funded in part by $904 per member per month and faces a $380 million shortfall for Fiscal Year 2027. PEEHIP has requested $1,209 per member per month to close the gap, while Governor Ivey has proposed $1,073 per member per month—effectively requiring PEEHIP to draw from reserves or raise revenue through increased premiums, copays, and/or prescription drug costs. Legislators noted that educators have not seen a premium increase in ten consecutive years.
Other notable funding highlights include:
- $755.9 million for the Department of Education, a $23 million increase from the current fiscal year.
- $658 million to the Alabama Community College System, a $36 million increase from the current fiscal year.
- $87.6 million from the ETF to the Alabama Commission on Higher Education, which oversees multiple programs affecting Alabama’s public colleges and universities, including various student aid programs.
Bipartisan “Alabama Affordability Protection Plan” Targets Data Centers
Lawmakers in both chambers filed three bills this week dubbed the “Alabama Affordability Protection Plan,” aimed primarily at the growing data center construction boom and its impact on utility ratepayers and tax incentives.
Public Service Commission Reform: SB268/HB392
Senate Minority Leader Bobby Singleton and Rep. Chip Brown filed SB268 and HB392, respectively. The bills would:
- Restructure the PSC: Eliminate elections for the three-member Public Service Commission, making them appointed by the Governor, Speaker of the House, and President Pro Tempore of the Senate, subject to Senate confirmation.
- Professional Qualifications: Require appointees to have relevant experience in utility regulation, energy, economics, law, engineering, or similar fields.
- Conflicts of Interest: Extend conflict-of-interest prohibitions to include working for any nonutility entity that participates in matters before the commission.
Data Center Ratepayer Protections: SB270/HB403
Senator Lance Bell and Rep. Neil Rafferty filed SB270 and HB403, respectively. These bills would:
- Cost Recovery: When the Public Service Commission determines that a contract between an electric utility and a large-load data center (at least 150 megawatts) is in the public interest, the commission must ensure the contract provides for recovery of incremental infrastructure costs from the data center.
- Ratepayer Benefit: Require the commission to determine that the contract promotes positive benefits to all other retail electric customers and does not shift costs to existing ratepayers.
- Pricing Review: Require the commission to evaluate whether the pricing, terms, and conditions of the contract could lower costs for other utility customers.
Data Center Tax Abatement Limits: SB265/HB399
SB265, filed by Senator Andrew Jones and co-sponsored by Pro Tem Garlan Gudger and 15 other senators, and HB399 by Rep. Leigh Hulsey, would:
- Shorten Abatement Period: Beginning January 1, 2027, limit the maximum data center tax abatement from 30 years to 20 years.
- Restrict Sales Tax Abatement: Prohibit the abatement of the state’s 4% sales and use tax beyond the date the project is placed into service for data centers with a total peak demand of 100 megawatts or greater; provided, however, the Governor may still abate such taxes if the data center is in one of the state’s “targeted” counties.
All Senate bills are pending in the Senate Fiscal Responsibility and Economic Development Committee. All House bills are pending in the House Transportation, Utilities and Infrastructure Committee.
Age Verification for App Stores One Vote Away from Governor’s Desk
HB161 — Sponsored by Rep. Chris Sells
Rep. Chris Sells’ HB161, requiring age verification and enhanced parental oversight for app downloads, is one step away from reaching the Governor. The bill passed the Senate on Thursday by a vote of 35-0, but a technical amendment requires it to return to the House for a concurrence vote before being sent to Governor Ivey for her signature. Senator Clyde Chambliss handled the bill in the Senate.
Key Provisions:
- Age Verification: Requires app store providers to request age information from users and verify it using “commercially available methods.”
- Parental Oversight: Requires parental consent before a minor can download an app or when an app makes significant changes to its features or data usage.
- Enforcement: Authorizes the Attorney General to prosecute violations as deceptive trade practices, with civil penalties of up to $7,500 per violation.
Environmental Regulatory Reform Bill Passes Senate
SB71 — Sponsored by Sen. Donnie Chesteen
The Senate passed Senator Donnie Chesteen’s SB71 on Tuesday by a vote of 27-7, following the first significant floor debate of the 2026 session. The bill would:
- Federal Floor Standard: Prohibit the Alabama Department of Environmental Management (ADEM) from adopting or enforcing rules more stringent than corresponding federal standards when a federal regulation exists.
- Science-Based Standard: In the absence of federal law or regulations, require any new state environmental rule to be based on the “best available science” and the weight of scientific evidence.
Senate Democrats opposed the bill, arguing it could weaken environmental protections, particularly for communities facing pollution concerns. The bill is now pending in the House Agriculture and Forestry Committee.
Mobile Bay Dredging Bill Sent to Governor
HB181 — Sponsored by Rep. Rhett Marques
The Senate passed HB181 on Tuesday, sending the bill to Governor Ivey for her signature. The legislation largely prohibits the dumping of dredged material by the Army Corps of Engineers in Mobile Bay. To maintain a deeper channel for larger container ships accessing the Port of Mobile, the Corps will need to put dredged material to beneficial use going forward, including marsh creation, shoreline protection, habitat restoration, and industrial applications.
Child Predator Death Penalty Act Sent to Governor
HB41 — Sponsored by Rep. Matt Simpson / Sen. April Weaver
The Senate passed the “Child Predator Death Penalty Act” (HB41) on Thursday by a vote of 33-1, sending it to Governor Ivey for her signature. The bill makes the rape, sodomy, or sexual torture of children younger than 12 a capital crime punishable by death. Governor Ivey has strongly advocated for the bill’s passage and has indicated she will sign it into law. Senator April Weaver carried the legislation in the Senate.
The bill faces constitutional questions, as the U.S. Supreme Court ruled in Kennedy v. Louisiana (2008) that the death penalty is unconstitutional for non-murder offenses. Supporters hope a more conservative Supreme Court bench will revisit that precedent. Alabama joins Florida, Oklahoma, Idaho, Tennessee, and Arkansas in passing similar legislation.
SNAP Reform Bill Advances to Senate Floor
SB57 — Sponsored by Sen. Arthur Orr
Senator Arthur Orr’s SNAP reform bill passed out of the Senate Finance and Taxation General Fund Committee on Wednesday by a vote of 11-5 with two amendments. The bill would:
- Federal Waiver Request: Require the Alabama Department of Human Resources to request a federal waiver from the USDA to exclude candy and soda from SNAP-eligible purchases.
- Enforcement: If the waiver is granted, require the Department to prohibit the use of SNAP benefits for the purchase of candy and soda.
Senator Orr cited the state’s approximately 39% obesity rate, stating that “taxpayers shouldn’t be funding sugar-type drinks” and other unhealthy purchases. If enacted, Alabama would join 18 other states that have sought similar restrictions on SNAP purchases. The bill now moves to the full Senate for consideration.
Voter Data Protection Bill Passes House
HB67 — Sponsored by Rep. Jamie Kiel
Rep. Jamie Kiel’s HB67 passed the House on Thursday. The bill addresses the sale and use of voter registration data for commercial purposes.
Key Provisions:
- Phone Number Protection: Removes phone numbers from automatically being included in voter rolls sold to the public and prohibits their sale for commercial purposes.
- Campaign Exemption: Clarifies that campaign activities do not constitute the commercial use prohibited by the bill.
- Cost Reduction: Lowers the maximum cost of obtaining voter rolls to $1,000, down from the current cost of approximately $38,000 for the full statewide list.
The bill is supported by Secretary of State Wes Allen and now heads to the Senate for committee assignment.
Our legislative team is tracking the following bills:
|
Bill |
Sponsors |
Title |
Last Action |
Latest Version |
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AL 2026rs |
Local land bank authorities; shorten tax sale redemption period; restrictions on geographic scope; creation of multijurisdictional land banks by agreement; Governor’s emergency authorization to create land bank (Fiscal Responsibility (House)) |
House, Feb 5, 2026: Pending Committee Action in House of Origin (Fiscal Responsibility) |
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AL 2026rs |
Cryptocurrency; measures to prevent fraud imposed, penalties established, Alabama Securities Commission authorized to enforce House Calendar: Regular Calendar (February 10, 2026) Position: 82 |
House, Feb 5, 2026: Read for the Second Time and placed on the Calendar (State Government) |
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AL 2026rs |
Uniform Disposition of Unclaimed Property; allow finders to contract and locate State Treasurer property, account for digital assets Senate Calendar: Regular Calendar (February 10, 2026) Position: 49 |
Senate, Feb 5, 2026: Read for the Second Time and placed on the Calendar (Finance and Taxation General Fund) |
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AL 2026rs |
Taxation and Revenue; disabled veterans’ homestead taxes inclusion in debt-to-income ratio under certain circumstances prohibited Senate Calendar: Regular Calendar (February 10, 2026) Position: 48 |
Senate, Feb 5, 2026: Read for the Second Time and placed on the Calendar (Finance and Taxation General Fund) |
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AL 2026rs |
Volunteer fire departments; authorized to deposit funds with financial institutions (Banking and Insurance (Senate)) |
Senate, Jan 29, 2026: Pending Committee Action in House of Origin (Banking and Insurance) |
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AL 2026rs |
Taxation; to exclude credit card transaction fees from sales and use tax calculations (Finance and Taxation Education (Senate)) |
Senate, Jan 29, 2026: Pending Committee Action in House of Origin (Finance and Taxation Education) |
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AL 2026rs |
Data privacy; processing of data regulated, consumer actions related to data authorized (Commerce and Small Business (House)) |
House, Jan 29, 2026: Pending Committee Action in House of Origin (Commerce and Small Business) |
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AL 2026rs |
Volunteer fire departments; authorized to deposit funds with financial institutions (County and Municipal Government (House)) |
House, Jan 29, 2026: Pending Committee Action in House of Origin (County and Municipal Government) |
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AL 2026rs |
Alabama Uniform Trust Code; amended to conform with Alabama Qualified Dispositions in Trust Act, limit property subject to creditors’ claims House Calendar: Regular Calendar (February 10, 2026) Position: 52 Companion Bills: SB 179 |
House, Jan 29, 2026: Read for the Second Time and placed on the Calendar (Financial Services) |
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AL 2026rs |
Trusts; amend Alabama Principal and Income Act, permit trustee to adjust between principal and income House Calendar: Regular Calendar (February 10, 2026) Position: 51 Companion Bills: SB 178 |
House, Jan 29, 2026: Read for the Second Time and placed on the Calendar (Financial Services) |
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AL 2026rs |
Debtors homestead exemption; in bankruptcy cases; increase homestead exemption for seniors and disabled (Finance and Taxation Education (Senate)) |
Senate, Jan 20, 2026: Pending Committee Action in Second House (Finance and Taxation Education) |
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AL 2026rs |
Stablecoin; license required for issuance or sale of stablecoins, payment, authorize use of payment stablecoin by governmental entities for contracting, Alabama Securities Commission to enforce and authorize, penalties provided (Financial Services (House)) |
House, Jan 15, 2026: Pending Committee Action in House of Origin (Financial Services) |
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AL 2026rs |
Campaign finance; campaign contributions required to be held in federally insured institution (Ethics and Campaign Finance (House)) |
House, Jan 15, 2026: Pending Committee Action in House of Origin (Ethics and Campaign Finance) |
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AL 2026rs |
Taxation and Revenue; Homestead ad valorum taxes of certain veterans prohibited from inclusion in debt-to-income ratio under certain circumstances (Finance and Taxation General Fund (Senate)) |
Senate, Jan 13, 2026: Pending Committee Action in House of Origin (Finance and Taxation General Fund) |
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AL 2026rs |
Mortgages; require lenders to all mortgagors to make additional mortgage payments (Financial Services (House)) |
House, Jan 13, 2026: Pending Committee Action in House of Origin (Financial Services) |
15 bills
