Senate Passes Record General Fund Budget
The Alabama Senate approved a hefty $3.3 billion General Fund budget for fiscal year 2025 (FY2025) as well as a General Fund supplemental appropriations bill on Thursday. This marks the largest budget in state history, according to Sen. Greg Albritton, chair of the General Fund Committee. Now, the focus shifts to the House where the budget will be reviewed by a committee before heading to a full House vote.
The budget bills include significant allocations for various projects, such as:
- $400 million for prison construction
- $15 million for site development by the State Industrial Development Authority
- $20 million for a new parking deck near the new State House (under construction by the Retirement Systems of Alabama)
- $955 million for Medicaid-related services
- A 2% raise for state employees
While the state maintains a positive cash flow, Sen. Albritton cautioned that the recent growth has stagnated in recent months. Notably, all appropriations in the budget were either increased or remained the same compared to FY2024.
Education Budget Bills Awaits House Vote on Tuesday
Meanwhile, the House Education Trust Fund (ETF) budget and associated bills have cleared the committee stage and await a vote on the House floor on Tuesday.
Alabama Senate Advances Workforce and Economic Development Bills
The Alabama Senate took significant strides towards improving the state’s workforce and economic development on Tuesday by passing several bills in the “Working for Alabama” package, which is supported by the governor and legislative leadership.
Here’s a breakdown of the key bills:
Boosting Economic Development:
- Alabama Growth Alliance (SB252): Sponsored by Senate President Pro Tem Greg Reed, this bill establishes a public board, the Alabama Growth Alliance, comprised of 11 public and private sector appointees. This group will identify economic development opportunities and make recommendations to the Governor. The Alliance can also partner with private entities and government agencies through agreements and contracts.
Streamlining Workforce Development:
- Department of Workforce Revamp (SB248): This bill proposes renaming the Department of Labor to the Department of Workforce. It also aims to streamline workforce efforts by consolidating duplicate workforce development agencies under this new department. Additionally, SB247 by Senate Majority Leader Steve Livingston would centralize oversight of all state and federal workforce development programs, currently managed by the Department of Commerce.
Alternative Pathway to High School Diploma (SB253):
- Sen. Donnie Chesteen’s SB253 offers students a “Workforce Pathway” for earning their diploma. This allows them to focus on career and technical education classes instead of traditional math and science requirements.
House Takes Action on Workforce Housing:
- Workforce Housing Credit (HB346): Sponsored by Rep. Cynthia Almond, this bill passed a House committee and awaits a vote on the House floor. It provides tax credits to incentivize the private development of qualifying workforce housing. Administered by the Alabama Housing Finance Authority, the credit can be claimed against various taxes for up to 10 years. Notably, 20-25% of the annual credit allocation must be directed towards rural areas.
Other Pending Bills:
- Childcare Tax Credit (HB358): Awaiting further action, this bill would provide a tax credit for childcare expenses.
- Innovation Districts: Legislation creating special innovation districts within local jurisdictions is also pending consideration.
Senate Committee Advances Two Bills to Change Medical Marijuana Licensing Process
Reset Button on Medical Marijuana Licenses (SB306)
Sen. Tim Melson, the architect of Alabama’s medical marijuana law, has introduced SB306 to essentially start the licensing process over for integrated facilities. These facilities handle the entire production cycle, from growing and processing cannabis to transporting and selling it to patients.
New Application Process
Under SB306, companies interested in obtaining a license for an integrated facility would need to reapply. However, the Alabama Securities Commission (ASC) would take over the responsibility of reviewing applications and ensuring they meet specific requirements. Once the ASC approves qualified applicants, they’ll send a list of top contenders to the Alabama Medical Cannabis Commission for the final decision.
Final Selection Based on Set Criteria
The Medical Cannabis Commission will then evaluate the top applicants based on predefined factors to determine who receives the five available licenses.
SB306 Advances, Floor Vote Pending
The bill successfully passed out of committee on Wednesday and now awaits a vote by the full Alabama Senate.
Increase in Licenses (SB276)
The same committee also approved a separate measure, SB276, sponsored by Sen. David Sessions. This bill proposes significant changes to expand access to medical marijuana in Alabama:
- More Dispensaries: SB276 would increase the maximum number of dispensary licenses from four to seven, potentially making it easier for patients to obtain medical marijuana.
- More Integrated Facilities: The bill calls for the Alabama Medical Cannabis Commission (AMCC) to issue 10 licenses for integrated facilities. These one-stop shops can cultivate, process, and distribute medical marijuana, potentially creating a more streamlined system for patients.
- More Processors: SB276 would also raise the maximum number of processor licenses from four to six. Processors prepare raw marijuana for use in various medical cannabis products.
House Approves Property Tax Increase Cap (HB73)
The Alabama House of Representatives overwhelmingly passed a bill (HB73) on Tuesday that would limit annual property tax increases tied to property value assessments. Here’s a breakdown of the key points:
- Capping Increases: Sponsored by Rep. Pettus, HB73 aims to prevent significant jumps in property taxes by capping the annual increase in a property’s assessed value to 7%. This applies to both residential and commercial properties.
- Addressing Funding Concerns: Initially, the bill proposed separate caps for residential and commercial properties. However, to address concerns from local governments about potential funding shortfalls, the House adopted an amendment setting a single 7% cap for both categories.
- Sunset Provision: Another amendment added a sunset provision, meaning the cap would automatically expire at the end of Fiscal Year 2028, allowing for future reevaluation.
- Next Step: Senate Consideration
HB73 now heads to the Senate for further consideration. If passed there and signed by the governor, it would bring significant changes to property tax assessments in Alabama.
The Alabama Legislature completed its 21st day on Thursday. Lawmakers will return on April 16. The can meet for a total of 30 legislative days.
Below is a list of bills currently being tracked by our legislative team.
| Bill | Sponsors | Title | Last Action | Latest Version |
| AL 2024rs SB 253 |
Donnie Chesteen
|
Alabama Workforce Pathways Act, different pathways for high school diplomas based on future career plans (Economic Development and Tourism (House))
Companion bills: HB 373 |
House • Apr 11, 2024: Pending Committee Action in Second House (Economic Development and Tourism) | Engrossed |
| AL 2024rs SB 247 |
Steve Livingston
|
Alabama Workforce Transformation Act FY24 Regular Session SENATE (Fiscal Responsibility (House)) | House • Apr 11, 2024: Pending Committee Action in Second House (Fiscal Responsibility) | Engrossed |
| AL 2024rs SB 252 |
Greg J. Reed
|
Alabama Growth Alliance Bill (Fiscal Responsibility (House))
Companion bills: HB 372 |
House • Apr 11, 2024: Pending Committee Action in Second House (Fiscal Responsibility) | Engrossed |
| AL 2024rs HB 346 |
Cynthia Almond
|
Establishes the Alabama Workforce Housing Tax Credit Act; creates the Alabama Workforce Housing Tax Credit | House • Apr 11, 2024: Read for the Second Time and placed on the Calendar (Ways and Means Education) | Introduced |
| AL 2024rs HB 373 |
Kelvin Lawrence
|
Alabama Workforce Pathways Act, different pathways for high school diplomas based on future career plans
Companion bills: SB 253 |
House • Apr 11, 2024: Read for the Second Time and placed on the Calendar (Education Policy) | Introduced |
| AL 2024rs HB 389 |
Shane Stringer
|
Financial Institutions; to prohibit financial institutions from using a merchant category code to identify firearms transactions; to prohibit disclosure of financial information regarding firearms transactions (Financial Services (House)) | House • Apr 11, 2024: Re-referred to Committee in House of Origin (Financial Services) | Introduced |
| AL 2024rs SB 281 |
Tim Melson
|
Financial Institutions; to prohibit financial institutions from using a merchant category code to identify firearms transactions; to prohibit disclosure of financial information regarding firearms transactions
Senate Calendar: Regular Calendar (April 16, 2024) Position: 123 |
Senate • Apr 11, 2024: Read for the Second Time and placed on the Calendar (Banking and Insurance) | Introduced |
| AL 2024rs SB 243 |
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; Constitutional Amendment
Senate Calendar: Regular Calendar (April 16, 2024) Position: 73 |
Senate • Apr 09, 2024: Carried Over | Introduced |
| AL 2024rs SB 242 |
Bobby D. Singleton
|
Innovation Districts; establishment of by counties and municipalities as public corporation authorized; provide for the powers of innovation districts
Senate Calendar: Regular Calendar (April 16, 2024) Position: 72 |
Senate • Apr 09, 2024: Carried Over | Introduced |
| AL 2024rs HB 349 |
James Lomax
|
Innovation Districts; establishment of by counties and municipalities as public corporation authorized; provide for the powers of innovation districts.
House Calendar: Regular Calendar (April 11, 2024) Position: 62 |
House • Apr 04, 2024: Read for the Second Time and placed on the Calendar (Economic Development and Tourism) | Introduced |
| AL 2024rs HB 372 |
Randall Shedd
|
Alabama Growth Alliance Bill
Companion bills: SB 252 House Calendar: Regular Calendar (April 11, 2024) Position: 49 |
House • Apr 04, 2024: Read for the Second Time and placed on the Calendar (Economic Development and Tourism) | Introduced |
| AL 2024rs HB 368 |
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; constitutional amendment
House Calendar: Regular Calendar (April 11, 2024) Position: 61 |
House • Apr 04, 2024: Read for the Second Time and placed on the Calendar (Economic Development and Tourism) | Introduced |
| AL 2024rs HB 344 |
Danny Garrett
|
Alabama Workforce Transformation Act FY24 Regular Session
House Calendar: Regular Calendar (April 11, 2024) Position: 50 |
House • Apr 04, 2024: Read for the Second Time and placed on the Calendar (Economic Development and Tourism) | Introduced |
| AL 2024rs HB 227 |
Matt Simpson
|
Ethics; laws pertaining to public officials and public employees revised | House • Apr 03, 2024: Engrossed | Engrossed |
| AL 2024rs HB 358 |
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 |
| AL 2024rs HB 366 |
Chris Sells
|
Consumer protection, further provides for data breaches (Judiciary (House)) | House • Mar 21, 2024: Pending Committee Action in House of Origin (Judiciary) | Introduced |
| AL 2024rs SB 250 |
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 |
| AL 2024rs SB 187 |
Merika Coleman
|
Digital assets, regulates digital asset operations (Banking and Insurance (Senate))
Companion bills: HB 214 |
Senate • Feb 29, 2024: Pending Committee Action in House of Origin (Banking and Insurance) | Introduced |
| AL 2024rs SB 151 |
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 Calendar: Regular Calendar (April 16, 2024) Position: 12 |
Senate • Feb 28, 2024: Read for the Second Time and placed on the Calendar (Finance and Taxation Education) | Introduced |
| AL 2024rs HB 242 |
Ben Harrison
|
Anti-discrimination against military. (Judiciary (House)) | House • Feb 27, 2024: Pending Committee Action in House of Origin (Judiciary) | Introduced |
| AL 2024rs HB 214 |
Mike Shaw
|
Digital assets, regulates digital asset operations (State Government (House))
Companion bills: SB 187 |
House • Feb 21, 2024: Pending Committee Action in House of Origin (State Government) | Introduced |
| AL 2024rs HB 205 |
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 |
| AL 2024rs HB 61 |
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 |
