Governor, Legislative Leadership Announce Working for Alabama Legislative Package

Aiming to combat one of the lowest labor participation rates in the U.S. and acknowledging critical areas requiring workforce development, Gov. Kay Ivey and legislative leaders have introduced a series of bills designed to equip the state with tools to enhance its workforce and economic development capacities. These bills include:

Alabama Growth Alliance Act
This bill creates a public-private partnership (PPP) to focus on Alabama’s long-term economic development. The PPP will regularly assess the state’s key economic development incentives. This ensures that Alabama’s limited resources are used effectively to achieve the state’s growth strategies.

Alabama Workforce Transformation Act
This bill aims to merge and consolidate various workforce development agencies, programs, and mechanisms under a single state agency umbrella. A cabinet-level official will lead this agency to oversee the state’s workforce development activities. Additionally, it will establish the Alabama Workforce Board, which will provide key funding and programmatic recommendations tailored to the needs of Alabama businesses.

Alabama Career Pathway Act
The bill creates a new Workforce Pathways diploma for grades 10-12 at certain Career & Technical Education centers. This allows non-college bound students to meet existing math and science requirements. The bill also expands grants for the Alabama Short-Term Credential Program at community colleges. This provides quick credentialing for certain in-demand careers.

Childcare Tax Credit
This bill creates a childcare tax credit for employers, starting at $15 million initially and increasing to $35 million by 2029. This credit aims to incentivize childcare providers, both for-profit and non-profit, to expand access to childcare options. Employers can benefit from the credit by providing on-site childcare or offering stipends to employees for their childcare expenses.

Workforce Housing Tax Credit
This bill creates a workforce housing tax credit program that complements the existing federal program. It uses a formula to award tax credits to developers who build affordable housing for workers.  In exchange for capping rental rates, developers earn tax credits. The project must be functioning before the state grants any credits.

Innovation District Act and Constitutional Amendment
This bill, along with a supporting change to the state constitution, empowers local governments to establish a new local entity. This entity can initiate and encourage economic development projects in specific business sectors chosen by the Department of Commerce. It would function similarly to a cooperative district or industrial development board, with the authority to issue bonds to raise funds for projects within its boundaries.

The Working for Alabama plan also includes significant funding in Alabama’s two budgets for site development, rural broadband, and workforce training.

Alabama Cracks Down on DEI Programs in Public Institutions
Last Tuesday, the Senate approved changes made by the House to Senate Bill 129 (SB129). This bill prohibits state agencies, local school boards, and public colleges from offering or funding DEI initiatives. Additionally, it aligns bathroom policies in higher education with K-12 schools, requiring individuals to use restrooms corresponding to their biological sex at birth.

Gov. Ivey signed the bill into law on Wednesday. However, some exceptions exist. Accreditation requirements, medical and mental health care, and research are exempt. The law also permits teaching topics and historical events accurately within a historical context.

Ballot Harvesting Ban Signed into Law
The Ballot Harvesting Ban, also known as SB1 and sponsored by Sen. Garlan Gudger, received concurrence from the Senate on Tuesday before being signed into law by the governor on Wednesday.

This law prohibits ballot harvesting, defined as the mass distribution or collection of absentee ballot applications or ballots by an individual or group. It also imposes penalties on individuals who receive payment or pay others for assistance with absentee ballot applications, such as prefilling or requesting them on behalf of someone else. However, the law includes exemptions for individuals aiding persons with disabilities, such as those with visual impairments or reading difficulties.

The law will take effect starting with the general election in November.

Gaming, Lottery Proposal Stalled
The gaming and lottery package is on hold as the House continues to evaluate its options after the Senate made significant changes to the proposal.

Here are the House’s options:

Concurrence: The House can simply agree (concur) with the Senate’s changes. This would put the constitutional amendment on the ballot for voters and send the enforcement and regulatory bill to Gov. Ivey for her signature.

Conference Committee: The House can choose to negotiate the differences with the Senate in a conference committee. However, key senators have threatened to reject any major changes, potentially killing the entire package.

House to Debate Ethics Reform Proposal on April 2
A proposal to substantially rewrite much of the current ethics law is set to be debated by House on April 2. Sponsored by Rep. Matt Simpson, the bill specifies that violations of criminal provisions would be under the jurisdiction of the attorney general and district attorneys. The Ethics Commission’s role would be limited to handling civil, non-criminal matters.

Birmingham Southern Loan Faces Uncertain Future
Sen. Jabo Waggoner’s
bill to aid Birmingham Southern College (BSC) cleared a House committee last week. To safeguard taxpayer dollars, supporters added stricter requirements.

A House Committee included new provisions:

Enrollment Benchmarks: BSC must achieve specific enrollment targets based on a formula aiming for a 10% increase in full-time students.

Debt Reduction: The college must demonstrate progress in paying down its debt to maintain the loan’s good standing.

Missing either benchmark could trigger a loan default.

However, the bill faces an uphill battle. Rep. Juandalynn Givan, representing BSC’s district, expressed doubt about its passage on the House floor.

Public Health Reform in Alabama Senate: Bills Target Committee Structure and Appointment Process
Two bills aiming to reform Alabama’s public health system cleared a committee hurdle last week. Both address concerns about the current structure and accountability, particularly in light of the state’s COVID-19 response.

  • SB128 (Sen. Tim Melson): This bill restructures the State Committee of Public Health, which currently consists entirely of members from the Medical Association for the State of Alabama (MASA). SB128 proposes a new composition:
    • Two members appointed by the governor and the agriculture commissioner.
    • 10 members appointed by various medical groups, ensuring representation from specialists like general surgeons, radiologists, and pediatricians.
  • SB74 (Senator Sam Givhan): This bill shifts the authority to appoint the Alabama State Health Officer from the Alabama State Committee of Public Health to the governor.

The bills stem from concerns that the unelected Alabama State Committee of Public Health, lacking direct accountability to the Legislature, could make crucial decisions impacting public health without sufficient oversight.

Both bills now await a vote by the full Senate.

Last week, the Legislature completed its 17th legislative day out of 30 and will reconvene on April 2 following a scheduled recess this week.

The following bills are currently being tracked by our governmental relations team:

Bill Sponsors Title Last Action Latest Version
AL Dan Roberts Economic development; state law authorizing counties and municipalities to provide for innovation districts as public corporations authorized; innovation district use of public funds for public or private persons authorized (Fiscal Responsibility and Economic Development (Senate)) Senate • Mar 21, 2024: Pending Committee Action In House Of Origin (Fiscal Responsibility and Economic Development) Introduced
2024rs
SB 243
AL Bobby D. Singleton Innovation Districts; establishment of by counties and municipalities as public corporation authorized; provide for the powers of innovation districts. (Fiscal Responsibility and Economic Development (Senate)) Senate • Mar 21, 2024: Pending Committee Action In House Of Origin (Fiscal Responsibility and Economic Development) Introduced
2024rs
SB 242
AL Donnie Chesteen Alabama Workforce Pathways Act, different pathways for high school diplomas based on future career plans (Education Policy (Senate)) Senate • Mar 21, 2024: Pending Committee Action In House Of Origin (Education Policy) Introduced
2024rs Companion bills: HB 373
SB 253
AL Steve Livingston Alabama Workforce Transformation Act FY24 Regular Session SENATE (Fiscal Responsibility and Economic Development (Senate)) Senate • Mar 21, 2024: Pending Committee Action In House Of Origin (Fiscal Responsibility and Economic Development) Introduced
2024rs
SB 247
AL Greg J. Reed Alabama Growth Alliance Bill (Fiscal Responsibility and Economic Development (Senate)) Senate • Mar 21, 2024: Pending Committee Action In House Of Origin (Fiscal Responsibility and Economic Development) Introduced
2024rs Companion bills: HB 372
SB 252
AL Anthony Daniels Relating to child care and workforce development; to establish the employer tax credit and child care provider tax credit; to make legislative findings. (Ways and Means Education (House)) House • Mar 21, 2024: Pending Committee Action In House Of Origin (Ways and Means Education) Introduced
2024rs
HB 358
AL James Lomax Innovation Districts; establishment of by counties and municipalities as public corporation authorized; provide for the powers of innovation districts. (Economic Development and Tourism (House)) House • Mar 21, 2024: Pending Committee Action In House Of Origin (Economic Development and Tourism) Introduced
2024rs
HB 349
AL Chris Sells Consumer protection, further provides for data breaches (Judiciary (House)) House • Mar 21, 2024: Pending Committee Action In House Of Origin (Judiciary) Introduced
2024rs
HB 366
AL Cynthia Almond Establishes the Alabama Workforce Housing Tax Credit Act; creates the Alabama Workforce Housing Tax Credit (Ways and Means Education (House)) House • Mar 21, 2024: Pending Committee Action In House Of Origin (Ways and Means Education) Introduced
2024rs
HB 346
AL Kelvin Lawrence Alabama Workforce Pathways Act, different pathways for high school diplomas based on future career plans (Education Policy (House)) House • Mar 21, 2024: Pending Committee Action In House Of Origin (Education Policy) Introduced
2024rs Companion bills: SB 253
HB 373
AL Randall Shedd Alabama Growth Alliance Bill (Economic Development and Tourism (House)) House • Mar 21, 2024: Pending Committee Action In House Of Origin (Economic Development and Tourism) Introduced
2024rs Companion bills: SB 252
HB 372
AL Neil Rafferty Economic development; state law authorizing counties and municipalities to provide for innovation districts as public corporations authorized; innovation district use of public funds for public or private persons authorized (Economic Development and Tourism (House)) House • Mar 21, 2024: Pending Committee Action In House Of Origin (Economic Development and Tourism) Introduced
2024rs
HB 368
AL Danny Garrett Alabama Workforce Transformation Act FY24 Regular Session (Economic Development and Tourism (House)) House • Mar 21, 2024: Pending Committee Action In House Of Origin (Economic Development and Tourism) Introduced
2024rs
HB 344
AL Chris Elliott Establishes the Alabama Workforce Housing Tax Credit Act; creates the Alabama Workforce Housing Tax Credit (Finance and Taxation Education (Senate)) Senate • Mar 21, 2024: Pending Committee Action In House Of Origin (Finance and Taxation Education) Introduced
2024rs
SB 250
AL Matt Simpson Ethics; laws pertaining to public officials and public employees revised House • Mar 06, 2024: Instrument Change Adopted FYEG555-1 (Ethics and Campaign Finance) Introduced
2024rs House Calendar: Regular Calendar (April 02, 2024)
HB 227 Position: 21
AL Merika Coleman Digital assets, regulates digital asset operations (Banking and Insurance (Senate)) Senate • Feb 29, 2024: Pending Committee Action In House Of Origin (Banking and Insurance) Introduced
2024rs Companion bills: HB 214
SB 187
AL Arthur Orr State Investments and Public Contracts; to prohibit State Treasurer and Board of Control of RSA and TRSA from using ESG factors in investment decisions; may consider pecuniary factors; to prohibit state entities from considering ESG factors when awarding public contracts Senate • Feb 28, 2024: Read Second Time In House of Origin (Finance and Taxation Education) Introduced
2024rs Senate Calendar: Regular Calendar (March 21, 2024)
SB 151 Position: 28
AL Ben Harrison Anti-discrimination against military. (Judiciary (House)) House • Feb 27, 2024: Pending Committee Action In House Of Origin (Judiciary) Introduced
2024rs
HB 242
AL Mike Shaw Digital assets, regulates digital asset operations (State Government (House)) House • Feb 21, 2024: Pending Committee Action in House of Origin (State Government) Introduced
2024rs Companion bills: SB 187
HB 214
AL Prince Chestnut Retail establishments; banning cash as payment source prohibited, exceptions provided (Commerce and Small Business (House)) House • Feb 20, 2024: Pending Committee Action In House Of Origin (Commerce and Small Business) Introduced
2024rs
HB 205
AL Chip Brown Public contracts; ESG criteria prohibited in public contract. (State Government (House)) House • Feb 06, 2024: Pending Committee Action In House Of Origin (State Government) Introduced
2024rs
HB 61