The Alabama Legislature completed its 24th legislative day last week, out of a maximum of 30. This week, the Legislature will take off for Spring Break and return on March 31st, for the 25th Legislative Day.
PSC Reform Bill Unanimously Passes House
HB475 – Representative Mack Butler
HB475, a bill by Rep. Mack Butler requiring public utility rate hearings unanimously passed the House on Tuesday.
Key Provisions:
- Mandatory Hearings: Requires the PSC to have a formal rate case hearing once every three years
- Profit Caps: Caps profits of a regulated electric utility by making the utility’s return on equity not greater than the regional average in the determination of a schedule for rates or service regulation.
Status: Passed House unanimously on Tuesday; pending in the Senate Fiscal Responsibility and Economic Development Committee.
Alabama’s Laken Riley Act Passes House
HB13 – Representative Ernie Yarbrough
Representative Ernie Yarbrough’s Alabama version of the Laken Riley Act, a bill focused on illegal immigration enforcement, passed the House this week.
Key Provisions:
- New Authorization: Law enforcement agencies may enter into Memoranda of Understanding (MOUs) with federal agencies to enforce federal immigration laws, such as detaining and transporting people who are in the country illegally
- Requirement to Honor Detainer Requests: County and municipal jails would be required to honor immigration detainer requests issued by the Department of Homeland Security
- Data Tracking: Information on foreign nationals in custody must be reported quarterly, including information on detainees’ visas and immigration status
Status: Passed the House by a vote of 76-1 with 23 abstentions; now pending in the Senate.
Senate Democrats Delay Floor Votes on Multiple Bills
Multiple bills were stymied by sustained Democratic opposition in the Senate this week. Democrats raised concerns primarily about their bills not being placed on the calendar for debate. Three bills in particular faced opposition:
SB354: One-Year Solar Moratorium
Senator Greg Albritton
Senator Greg Albritton’s bill to halt any new solar facility construction across the state for one year. The bill passed committee but has been delayed on the Senate floor due to concerns of members on both sides of the aisle.
Status: Passed Senate Transportation and Energy Committee.
HB2: Renaming Gulf of Mexico to Gulf of America
Representative David Standridge
Representative David Standridge’s bill would require public entities in Alabama to refer to the Gulf of Mexico as the Gulf of America. It would also require all newly created maps, images, and other documents to reflect the name change.
Status: Delayed by Democratic opposition; pending Senate floor vote for final passage.
SB99: Ten Commandments Display
Senator Keith Kelley
This bill by Senator Keith Kelley would require public schools to display a poster of the Ten Commandments in fifth through 12th-grade classrooms and within the common areas in every school within the district.
Status: Delayed by Democratic opposition; pending Senate floor vote.
Legislative Outlook: Senate President Pro Tem Garlan Gudger indicated he expects a number of bills previously carried over or initially stopped by Democratic filibusters to return when the Legislature reconvenes after Spring Break with only six legislative days remaining.
Bill to Require Party Registration for Primary Elections Passes House
HB541 – Representative Ernie Yarbrough
Currently in Alabama, primary elections are open to any voter wishing to vote in either the Democrat or Republican primaries, while runoff elections are limited to voters who either voted in that party’s primary or voters who did not vote at all. HB541 would fundamentally change this system.
Key Provisions:
- Requires Party Registration: Voters must register with a political party to vote in the party’s primary election or primary runoff
- Impose a 60-Day Blackout Period: Voters who have selected one party may not change their affiliation beginning 60 days prior to a primary election through the day of the general election
Status: Passed the House; now pending in the Senate where it faces more uncertain prospects over the long-term effects on Alabama’s election process.
Overtime Income Tax Deduction Passes House Committee
HB527 – Representative James Lomax
A targeted approach to overtime tax deductions has been approved by the House Ways and Means Education Committee. After an uncapped bill’s cost ballooned in previous years, costing hundreds of millions of dollars and ultimately expiring last year, Rep. James Lomax’s bill is designed to match federal benefits under the One Big Beautiful Bill Act.
Key Provisions:
- Match Federal Law: The bill will provide up to a $1,000 state income tax deduction each year when taxes are filed for state income taxes related to overtime pay
- Cost to ETF: The fiscal note on the bill estimates a cost of approximately $37.4 million annually for qualified overtime compensation
- Sunset Date: The bill will provide for three years of deductions, with a sunset date expiring at the end of the 2028 tax year
Status: Passed House Ways and Means Education Committee; now pending on the House floor for consideration.
Elimination of Deference to State Agencies Nears Final Passage
SB167 – Senator Arthur Orr
Senator Arthur Orr’s SB167 to reform the process by which agency rules are litigated nearly passed last year. This year it has been brought back and is positioned for final passage.
Key Provisions:
The bill removes the deference courts grant to state agencies on their interpretation of statutes and rules and instead requires courts to review such rules and interpretations without any presumption as to their correctness. This reform will align Alabama’s court rules with federal rules after the United States Supreme Court in 2024 struck down the deference standard in the Loper Bright Enterprises v. Raimondo case (commonly known as overturning the Chevron doctrine).
Status: Pending House floor vote for final passage.
Contract Review Recommendation Changes Head to Governor
SB40 – Senator Sam Givhan
Senator Sam Givhan’s bill to expand the authority of the Legislative Contract Review Committee passed the House unanimously on Tuesday.
Key Provisions:
Under current law, the committee can delay professional services contracts but cannot formally weigh in on whether the Governor should approve them. SB40 would empower the committee to formally recommend that the Governor not sign a pending contract. The recommendation is non-binding but elevates the committee’s oversight role in executive branch contracting.
Status: Passed House unanimously on Tuesday; heading to Governor Ivey for signature.
Mandatory Reimbursement Rate for Ambulance Services Nears Final Passage
SB269 – Senator Bobby Singleton
The House Insurance Committee approved a bill by Senator Bobby Singleton that supporters say will help financially struggling emergency medical services throughout the state, specifically in rural areas.
Key Provisions:
- Standardize Reimbursements: Health insurers would be required to contract with any willing licensed EMS provider for in-network coverage under terms similar to other comparable providers. For in-network providers, 200% of the Medicare rate would be the minimum reimbursement rate provided for emergency ground transport and treat-in-place care. For out-of-network providers, 180% of the Medicare rate would be reimbursed.
- Require Certain Reporting: Ambulance providers will be required to annually report to the Alabama Department of Public Health operational details such as their vehicle and employee counts, transport volumes, income, and net profits. Similarly, health insurers will be required to report the number of denied claims and their value, as well as out-of-pocket charges and total payments for ambulance services compared to all other health claims. A study, provided by a business school that is an expert in risk management and insurance, must evaluate the bill’s effects and issue a report by December 1, 2028.
- Effective Date and Sunset: The bill would go into effect on October 1, 2026, and would stand repealed as of June 1, 2029.
Status: Passed Senate 27-2 with 1 abstention; passed House Insurance Committee; now pending on the full House floor. If the House passes with no changes, the bill will head to Governor Ivey’s desk.
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 (Ways and Means Education (House))
Senate Calendar: Special Order Calendar (March 19, 2026) Position: 1 |
House, Mar 19, 2026: Pending Committee Action in Second House (Ways and Means Education) | Introduced |
| AL 2026rs HB 303 |
Bedsole | Cryptocurrency; measures to prevent fraud by cryptocurrency kiosk operators imposed, penalties established, Alabama Securities Commission authorized to enforce | Senate, Mar 17, 2026: Motion to Read a Third Time and Pass as Amended – Adopted Roll Call 922 | Engrossed |
| AL 2026rs HB 259 |
Shaw | Stablecoin; license required for issuance or sale of stablecoins, Alabama Securities Commission to enforce and authorize, penalties provided
Senate Calendar: Regular Calendar (March 19, 2026) Position: 126 |
Senate, Mar 17, 2026: Read for the Second Time and placed on the Calendar (Fiscal Responsibility and Economic Development) | Engrossed |
| AL 2026rs HB 104 |
Blackshear | Uniform Disposition of Unclaimed Property; allow finders to contract and locate State Treasurer property, account for digital assets | Senate, Mar 17, 2026: Signature Requested | Enrolled |
| AL 2026rs HB 77 |
Paschal | Taxation and Revenue; disabled veterans’ homestead taxes inclusion in debt-to-income ratio under certain circumstances prohibited | House, Mar 17, 2026: Enacted | Act Number 2026-268 |
| AL 2026rs HB 55 |
Hollis | Mortgages; authorize lenders to mortgagors to make additional mortgage payments
Senate Calendar: Regular Calendar (March 19, 2026) Position: 116 |
Senate, Mar 17, 2026: Read for the Second Time and placed on the Calendar (Banking and Insurance) | Engrossed |
| AL 2026rs HB 615 |
Robbins | Catastrophe savings accounts, required to be held in Alabama banks, credit unions, or veterans financial institutions and approved by the Commissioner of Insurance (Financial Services (House)) | House, Mar 12, 2026: Pending Committee Action in House of Origin (Financial Services) | Introduced |
| AL 2026rs HB 351 |
Shaw | Data privacy; processing of data regulated, consumer actions related to data authorized
Senate Calendar: Regular Calendar (March 19, 2026) Position: 87 |
Senate, Mar 10, 2026: Read for the Second Time and placed on the Calendar (County and Municipal Government) | Engrossed |
| 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
Senate Calendar: Regular Calendar (March 19, 2026) Position: 84 |
Senate, Mar 5, 2026: Read for the Second Time and placed on the Calendar (Finance and Taxation General Fund) | Introduced |
| AL 2026rs HB 585 |
Fidler | Money transmissions, transaction fee imposed for certain outgoing international wire transfers, income tax credit established to offset transaction fees imposed on taxpayer, reporting of certain suspicious cash transactions required, Securities Commission to enforce (Financial Services (House)) | House, Mar 5, 2026: Pending Committee Action in House of Origin (Financial Services) | Introduced |
| AL 2026rs HB 96 |
Pringle | Debtors homestead exemption; in bankruptcy cases; increase homestead exemption for seniors and disabled | House, Mar 5, 2026: Enacted | Act Number 2026-203 |
| AL 2026rs HB 544 |
Shaw | Cryptocurrency; governmental entities authorized to use stablecoins as payment to vendors and contractors (Financial Services (House)) | House, Mar 3, 2026: Pending Committee Action in House of Origin (Financial Services) | 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 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 (March 31, 2026) Position: 23 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 (March 31, 2026) Position: 22 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 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 |
