2024 Alabama Legislative Update: Regular Session - Week Nine

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Budgets 

On Tuesday, the House passed the $9.3 billion 2025 Education Trust Fund (ETF) Budget and two supplemental ETF appropriations. As mentioned in previous legislative updates, the ETF is the state’s mechanism for education-related funding. The ETF and Supplemental ETF appropriations have been sent to the Senate Finance and Taxation Education Committee, chaired by Senator Arthur Orr, for review before a full Senate vote. The General Fund legislation is pending committee action in the House and has passed the Senate.   

Unions 

Legislation related to unions, sponsored by Senator Arthur Orr, passed the Senate this week. This legislation would make companies’ eligibility for economic incentives contingent upon refraining from specific practices related to employee representation by a labor organization. It would also require companies to repay the state for economic incentives received for the duration of the given incentivized project for violation of the law. Specifically, this legislation prohibits companies from recognizing unions without conducting a formal secret ballot election, commonly referred to as a “card check.” Orr said he likes the bill  “because it keeps the coercion from the company side or the union side. It keeps it down to a minimum.”  

Economic Development 

Legislation focusing on economic development, sponsored by Senator April Weaver, passed this week and was signed by Governor Ivey. Currently, a municipality can create a commercial development authority to acquire, own, and lease projects. This legislation seeks to refine the definition of an eligible “project” to include a single commercial enterprise specifically. This legislation also further defined eligibility requirements and authorizes the authority, a public corporation organized under current law, to allocate funds for site development to finance or cover “project costs.”  

Rural Hospital Tax Credit 

This week, legislation sponsored by Representative Terri Collins that would provide a tax credit program for rural hospitals stalled in committee. This legislation would provide tax credits against income tax liability for individuals and businesses. During the Education Trust Fund Committee discussion on the bill, it was noted that this legislation would likely have a greater effect on the General Fund and thus was carried over.   

Gaming 

This week, the comprehensive gaming package was sent to a conference committee.  The committee will attempt to rectify differences between the two chamber’s versions of the bills and produce compromise legislation for both chambers to vote on.  

Working for Alabama 

Various pieces of the “Working for Alabama” plan, mentioned in previous legislative updates, were taken up in both the House and Senate this week. This plan aims to increase Alabama’s workforce participation, strengthen economic development in the state, and encourage community and rural development in Alabama. These various legislation pieces will continue to progress in both chambers during the next legislative week as the legislature moves toward passing this legislative priority. This legislative package includes the following:    

1. Alabama Growth Alliance: The Senate version of this legislation has passed both chambers as amended and will be sent to the Governor after the Senate concurs with the House's changes. It establishes the Alabama Growth Alliance, a public corporation to support economic development. Its focus includes increasing private investment within the state and creating opportunities for minority-owned businesses.  
2. Workforce Development Expansion: This legislation has passed both Chambers and was sent to the Governor for her signature. As mentioned in previous legislative updates, it will rename the Secretary of Labor and the Department of Workforce to the Secretary of Workforce and the Department of Workforce and alter the Department’s duties.  
3. Alternative Diploma Program:  The Senate version of this legislation has passed both chambers as amended and will be sent to the Governor after the Senate concurs with the House's changes.  
4. Child Care Tax Credits: On Thursday, the House passed this legislation to create childcare tax credits for both employees and employers. This legislation will now go to the Senate for its review. 
5. Housing Tax Credit: As mentioned in previous legislative updates, this legislation would establish a tax credit for eligible taxpayers with a stake in qualifying workforce housing projects in Alabama. This legislation has passed the House and will now go to the Senate for its review. 
6. Innovation Districts: This legislation has been reported out of committee in both chambers. As mentioned in previous legislative updates, it would establish “innovation districts” as public corporations and provide details for how these districts would operate.  
7. Local Government Authority: This legislation would amend the Alabama Constitution, granting the Legislature the authority to allow counties and municipalities to establish “innovation districts” as public corporations. Both the House and Senate versions of this bill have reported out of committee.  

Geologic Storage 

This week, the Senate passed legislation related to the storage of carbon dioxide in the state. This legislation provides the process and guidelines for the storage of excess carbon dioxide in underground areas and specifies that this practice will be regulated by the State Oil and Gas Board. During the discussion of the bill, Senator Greg Albritton, the bill’s sponsor, noted that this would allow landowners to utilize empty caverns below their land that resulted from the extraction of oil. This legislation will now go to the House for its consideration.   

Status of the Legislature  

The Legislature used two legislative working days this week, bringing its current total to 23 of its allotted 30 legislative working days.   

As of April 19th, 473 bills have been filed in the House, and 336 bills have been filed in the Senate.   

The House and Senate will reconvene on Tuesday, April 23rd, with the House session beginning at 1:00 P.M. and the Senate session beginning at 2:00 P.M. Next week, the legislature is expected to use two legislative working days.