The Alabama Legislature convened for a busy and productive two legislative days, and one committee day, this past week, completing now 12 days, or 40 percent of the 2026 Regular Session. Lawmakers will return on Tuesday to begin their 13th legislative day, out of a maximum of 30.
Bipartisan Utility Reform Package Advances
After urging by Governor Ivey and Senator Tuberville to support the “Alabama Affordability Protection Plan” earlier this week, the House Transportation, Utilities and Infrastructure Committee advanced each bill on Tuesday. The two data center-related bills (HB403/SB270 and HB399/SB265), but not the PSC restructuring bills (HB392/SB268), also passed out of Senate committee earlier in the week.
Public Service Commission Reform: SB268/HB392
Senate Minority Leader Bobby Singleton and Rep. Chip Brown filed SB268 and HB392, respectively. The legislation would:
Key Provisions:
- Restructure the PSC: Eliminate elections for the three-member Public Service Commission after the 2026 general election, with full transition by 2030. The Governor would appoint the PSC President, while the Speaker of the House and President Pro Tempore of the Senate would each appoint one associate commissioner, all subject to Senate confirmation.
- Professional Qualifications: Require appointees to have relevant experience in utility regulation, energy, economics, law, engineering, or similar fields.
- Expanded Conflicts of Interest Protections: Extend conflict-of-interest prohibitions to include working for any non-utility entity that participates in matters before the commission.
- Public Accountability Measures: Mandate annual public meetings where regulated utilities present information on rates and costs; prohibit ratepayer funds from being used for lobbying or political activity.
HB392 passed the House Transportation, Utilities and Infrastructure Committee on Tuesday but was pulled from the House floor calendar on Thursday. SB268 remains pending in the Senate Fiscal Responsibility and Economic Development Committee.
Alabama is one of only 10 states that still elect Public Service Commission members.
Data Center Ratepayer Protections: SB270/HB403
Senator Lance Bell and Rep. Neil Rafferty filed SB270 and HB403, respectively. These bills would:
Key Provisions:
- 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.
Both bills passed the respective House and Senate Committees this week and are in position for a floor vote.
Data Center Tax Abatement Limits: SB265/HB399
SB265, filed by Senator Andrew Jones and co-sponsored by Senate President Pro Tem Garlan Gudger and 15 other senators, and HB399 by Rep. Leigh Hulsey, would:
Key Provisions:
- Shorten Abatement Period: Beginning January 1, 2027, limit the maximum data center tax abatement period 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. The Governor may still abate such taxes if the data center is in one of the state’s “targeted” counties.
- Equipment Refresh Exception: Bills were amended in committee to allow the “refreshment” of new computer-related equipment for current data centers to still receive an abatement of equipment sales and use taxes during their abatement periods.
Both bills passed the respective House and Senate Committees this week and are in position for a floor vote.
Environmental Regulation Bill Clears Committee, Heads to House Floor
SB71 – Sponsored by Senator Donnie Chesteen
After passing the Senate on February 3 by a vote of 25-7, Senator Donnie Chesteen’s bill passed the House Agriculture and Forestry Committee in a Thursday morning meeting, expediting it toward a House floor vote.
Key Provisions:
- 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, with a requirement to establish a “direct causal link” between exposure to a harmful chemical or pollutant and bodily harm in humans.
Background: The bill drew criticism from Senate Democrats during nearly two hours of floor debate last week. Critics argue the “direct causal link” standard is scientifically impossible to meet and would prevent ADEM from addressing emerging environmental threats like PFAS (“forever chemicals”). The Southern Environmental sent a letter opposing the legislation. Supporters, including the Business Council of Alabama, argue the bill provides regulatory certainty and aligns Alabama with neighboring states.
The bill now awaits a House floor vote.
Cities Dismiss Online Sales Tax Lawsuit, Seek Legislative Solution
A collection of larger cities across Alabama voluntarily dismissed their lawsuit against the state’s Simplified Sellers Use Tax (SSUT) framework this week, choosing instead to pursue a legislative resolution during the current session.
Background:
- The Lawsuit: Initially filed by the City of Tuscaloosa in August 2025, the lawsuit argued that the flat 8% SSUT rate paid on online purchases is less than what citizens would otherwise pay for purchases made at local retailers. Cities claimed they deserve a higher percentage of the distribution, which is currently based on population.
- Plaintiffs: Cities of Tuscaloosa, Hoover, Montgomery, Mobile, Madison, Mountain Brook, and others, along with the Alabama Education Association and several school systems, joined the lawsuit.
Response:
- Senate General Fund Budget Chair Greg Albritton filed retaliatory bills (SB36, SB37, SB150) that would allow citizens to claim rebates for taxes paid to municipalities in which they do not live and prevent municipalities from collecting sales taxes from non-residents.
- The Association of County Commissions of Alabama strongly opposed the lawsuit, warning that changes to SSUT could cost counties millions in critical revenue. All 67 counties and over 150 municipalities joined ACCA in opposing the lawsuit.
Dismissal: All plaintiff cities and school systems voluntarily dismissed their claims without prejudice this week, preserving their ability to refile if legislative negotiations fail. The dismissal was made at the request of legislative leadership to allow time for a potential remedy during the 2026 Regular Session, which must conclude by April 27.
Next Steps: While legislation addressing the SSUT distribution is unlikely to be settled with the Session nearly halfway over, stakeholders may now be able to work in good faith to potentially reach a compromise. Cities have stated they will revive their suit if negotiations fail.
Elimination of Deference to State Agencies Nears Final Passage
SB167 – Senator Arthur Orr
Senator Arthur Orr’s SB167 passed the Senate on February 5 (34-0) and cleared the House Judiciary Committee on Wednesday, February 11, positioning it for a final House floor vote.
Key Provisions: The bill removes the deference courts grant to state agencies regarding their interpretation of statutes and rules, instead requiring courts to review such rules and interpretations without any presumption as to correctness.
Background: This reform aligns Alabama’s court rules with federal rules after the United States Supreme Court struck down the Chevron deference standard in Loper Bright Enterprises v. Raimondo in 2024. Under the new standard, courts—not agencies—will be the ultimate arbiters of statutory meaning. A similar bill nearly passed last year.
The bill now awaits a full House floor vote for final passage.
Board Removal Authority Passes House
HB220 – Representative Chris Pringle
Representative Chris Pringle’s HB220 passed the House on Tuesday, clarifying and standardizing removal authority for state boards and commissions.
Key Provisions:
- Current Law: Many statutory boards and commissions have members appointed by the Governor, the Speaker of the House of Representatives, or the President Pro Tempore of the Senate. The statutes are generally silent as to the ability of the appointing authority to remove members, either for cause or at-will.
- Bill’s Effects: HB220 provides that any individual appointed to such a board or commission shall serve at their appointing authority’s pleasure, allowing for their removal at any time. The bill does not apply to the governing board of any two-year or four-year public institution of higher education.
Background: House leadership cited the recent International Motorsports Hall of Fame scandal, in which the Examiners of Public Accounts discovered widespread misuse of state money and property by board members. Governor Ivey was able to discharge and replace that board, and HB220 seeks to ensure the same removal authority applies to all state boards and commissions.
The bill now moves to the Senate Fiscal Responsibility and Economic Development Committee for consideration.
Contract Review Committee Recommendations Bill Advances
SB40 – Senator Sam Givhan
A bill to empower the Legislative Contract Review Committee to formally recommend that the Governor not sign a pending contract unanimously passed the Senate on Thursday, February 5 (34-0). The bill passed the House State Government Committee on Wednesday, February 11, positioning it for final passage by the full House next week.
Key Provisions: The bill allows the Contract Review Permanent Legislative Oversight Committee to recommend that the Governor not sign contracts brought before the committee, strengthening legislative oversight of state contracts.
Emergency Rules Reform Passes House Unanimously
HB136 – Rep. Chris Pringle
Representative Chris Pringle’s HB136 passed the House unanimously on Tuesday, reforming the process by which state agencies may adopt emergency rules.
Key Provisions:
- Current Law: When an agency adopts an emergency rule, it certifies that an immediate danger to the public health, safety, or welfare requires its adoption, circumventing the usual review process.
- Bill’s Effects: HB136 would require the Governor to certify the immediate danger, justifying the need for the emergency rule before the rule may become effective. The bill requires the Governor to take ownership of agency emergency rules.
The bill now moves to the Senate for consideration.
Background: The issue of emergency powers received renewed attention during the COVID-19 pandemic. Americans for Prosperity-Alabama praised the bill’s passage, stating “emergency rules should be the exception, not the norm.”
Library Board Reform Passes Senate
SB26 – Senator Chris Elliott
Senator Chris Elliott’s bill to allow local governments to remove library board members passed the Senate on Tuesday by a vote of 25-6, with one abstention. This is Elliott’s third attempt to pass the legislation; similar bills passed committees or chambers in previous sessions but did not become law.
Key Provisions:
- Current Law: Currently, local appointing authorities, such as city councils and county commissioners, cannot remove members of library boards at will under state statute.
- Bill’s Effects: SB26 would allow the local appointing authority to remove a library board member with a two-thirds majority vote. Board members would “serve at the pleasure of his or her respective appointing authority.”
- Committee Amendment: The Senate removed a provision requiring library boards to file annual reports with the Governor, Speaker, and Senate President Pro Tempore detailing the “review or removal of items in their collection.”
Background: The bill has generated controversy amid ongoing debates over “gender ideology” content in library collections. Opponents, including Read Freely Alabama and the Alabama Library Association, argue the bill would politicize libraries and allow board members to be removed without cause. The bill does not require a governing authority to provide a reason for removal.
The bill now moves to the House County and Municipal Government Committee.
Our governmental relations team is tracking the following bills.
| Bill | Sponsors | Title | Last Action | Latest Version |
| AL 2026rs SB 221 |
Orr | Taxation; to exclude credit card transaction fees from sales and use tax calculations | Senate, Feb 12, 2026: Read for the Second Time and placed on the Calendar (Finance and Taxation Education) | Introduced |
| AL 2026rs HB 351 |
Shaw | Data privacy; processing of data regulated, consumer actions related to data authorized
House Calendar: Regular Calendar (February 17, 2026) Position: 73 |
House, Feb 10, 2026: Read for the Second Time and placed on the Calendar (Commerce and Small Business) | Introduced |
| AL 2026rs HB 402 |
Datcher | 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) | Introduced |
| AL 2026rs HB 303 |
Bedsole | Cryptocurrency; measures to prevent fraud imposed, penalties established, Alabama Securities Commission authorized to enforce
House Calendar: Special Order Calendar (February 17, 2026) Position: 8 |
House, Feb 5, 2026: Read for the Second Time and placed on the Calendar (State Government) | Introduced |
| AL 2026rs HB 104 |
Blackshear | Uniform Disposition of Unclaimed Property; allow finders to contract and locate State Treasurer property, account for digital assets
Senate Calendar: Regular Calendar (February 12, 2026) Position: 33 |
Senate, Feb 5, 2026: Read for the Second Time and placed on the Calendar (Finance and Taxation General Fund) | Introduced |
| AL 2026rs HB 77 |
Paschal | Taxation and Revenue; disabled veterans’ homestead taxes inclusion in debt-to-income ratio under certain circumstances prohibited
Senate Calendar: Regular Calendar (February 12, 2026) Position: 32 |
Senate, Feb 5, 2026: Read for the Second Time and placed on the Calendar (Finance and Taxation General Fund) | Introduced |
| AL 2026rs SB 232 |
Stewart | 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) | Introduced |
| AL 2026rs HB 344 |
Lipscomb | 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) | Introduced |
| AL 2026rs HB 207 |
Wadsworth | 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 17, 2026) Position: 40 Companion Bills: SB 179 |
House, Jan 29, 2026: Read for the Second Time and placed on the Calendar (Financial Services) | Introduced |
| AL 2026rs HB 206 |
Wadsworth | Trusts; amend Alabama Principal and Income Act, permit trustee to adjust between principal and income
House Calendar: Regular Calendar (February 17, 2026) Position: 39 Companion Bills: SB 178 |
House, Jan 29, 2026: Read for the Second Time and placed on the Calendar (Financial Services) | Introduced |
| AL 2026rs HB 324 |
Moore (P) | Artificial intelligence; age verification systems required for chatbots, safeguard protocols required, therapy chatbot requirements established, private right of action and enforcement provided for (Judiciary (House)) | House, Jan 22, 2026: Pending Committee Action in House of Origin (Judiciary) | Introduced |
| AL 2026rs HB 96 |
Pringle | 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) | Introduced |
| AL 2026rs HB 259 |
Shaw | 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) | Introduced |
| AL 2026rs HB 252 |
Shaw | 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) | Introduced |
| AL 2026rs SB 130 |
Elliott | 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) | Introduced |
| AL 2026rs HB 55 |
Hollis | 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) | Introduced |
