2023 Legislative Update: Regular Session Week Eight

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Education Trust Fund Budget

The Senate approved the $8.8 billion Education Trust Fund Budget (ETF), the state’s mechanism for education-related funding after being modified by the Senate Ways and Means Education Committee, chaired by Senator Arthur Orr. The ETF Budget includes 2% raises for education employees and a $100 tax rebate to taxpayers. Notably, there was $5.9 billion appropriated for K-12 education and $2.4 billion appropriated to four-year higher education institutions.

Overtime Tax Exemption

The Alabama House of Representatives unanimously passed a bill proposed by House Minority Leader Anthony Daniels, allowing hourly workers to avoid paying state income tax on overtime pay beyond 40 hours of work in a week.

This change would enable employees to keep more of their wages while also providing benefits to companies with regard to employee retention and incentives. Alabama is the first state to pass such legislation, and Leader Daniels received bipartisan praise for “thinking outside the box.” This bill has been sent to the Senate for their review, where it will likely pass.

Divisive Concepts

A bill sponsored by Representative Ed Oliver and Senator Will Barfoot, which has already received a favorable report in the House, received a favorable report from the Senate Committee on State Government. This bill would forbid some public organizations, like state agencies, local education boards, and universities, from promoting, endorsing, or mandating agreement with divisive concepts related to religion, sex, or race.

Removing the Security Deposit Limit on Residential Leases

A bill, sponsored by Senator Keith Kelley, that proposes the elimination of the cap on security deposits that residential landlords in Alabama can charge received a favorable report from the Senate’s Fiscal Responsibility and Economic Development Committee on Wednesday. Currently, the Alabama Residential Landlord and Tenant Act limits the amount of a security deposit to one month's rent for a property.

Transgender Athletes

The Women’s Sports Protection Bill, sponsored by Representative Susan Dubose and Senator April Weaver, has now passed both chambers. As mentioned in previous legislative updates, this bill broadens a 2021 law that already applies to K-12 sports teams to also apply to higher education sports teams.

The bill would prevent transgender athletes from participating in intercollegiate sports teams that correspond with their gender identity. This bill has been sent to the Governor for her signature.

Adoption

On Wednesday, Governor Ivey signed a bill, sponsored by Representative Ginny Shaver, into law that will streamline the state’s adoption process.

This bill simplifies the adoption process by separating the procedures for adults and children. In addition, the bill allows case handlers to communicate with each other regarding adoption matters while still protecting the adoptee's and biological parents' privacy. It also makes it clear which court has jurisdiction over adoption issues. This bill has been in the works for multiple years, and the Alabama Law Institute played a critical role in crafting this legislation.

Education Bills

There remains intense discussion in Montgomery regarding school choice. This week there was a public hearing in the House Education Policy Committee regarding the PRICE Act where five proponents and five opponents spoke on the bill. As mentioned in previous legislative updates, this bill aims to establish a universal education savings account program to allow parents more control over their children's educational options. The bill remains in committee in both the House and the Senate.

There have been other education-related bills filed that have not received as much coverage as the PRICE Act. These bills include the Students with Unique Needs (SUN) Education Scholarship Account Act, sponsored by Representative Danny Garrett, and a charter school bill sponsored by Representative Terri Collins. Both these bills have received favorable reports from their respective committees.

Status of the Legislature 

The Legislature used three legislative working days this week and has now used eighteen of its allotted thirty legislative working days. As of May 4th, there have been 440 bills filed in the House and 298 bills filed in the Senate during the regular session. The House will reconvene on Tuesday, May 9th, at 1:00 p.m., and the Senate will reconvene on the same day at 2:30 p.m. Next week the legislature is expected to use two legislative working days.