2025 Alabama Legislative Update: Regular Session - Week Eight

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Farm Bureau Health Plan

On Thursday, comprehensive legislation, sponsored by Representative David Faulkner, proposing the creation of a new type of "health plan" that would be exempt from most state and federal laws and regulations, passed the House of Representatives. The Alabama Farmers Federation (ALFA), the primary supporter of the bill, would be authorized to market and sell these plans. During a lengthy floor debate, an amendment was added to the legislation that addressed concerns regarding coverage limits. Another amendment removed the enforcement authority of the Alabama Department of Insurance from the legislation. Proponents argued that the plan offers a small group of farmers an alternative to traditional health insurance.

Pharmacy Legislation

This week, the House passed legislation, sponsored by Senator Billy Beasley and carried in the House by Representative Phillip Rigsby, concerning Pharmacy Benefit Managers (PBMs) and altering the mechanism by which independent pharmacists are reimbursed. Specifically, this legislation prohibits pharmacists from being reimbursed at a rate lower than the Medicaid reimbursement rate. The legislation also includes various provisions regulating PBMs and eliminates gag clauses between pharmacists and consumers. The version passed by the House removed the sunset provision and the private cause of action from the legislation. A floor amendment was also adopted regarding rebates. This legislation has been concurred by the Senate and sent to the Governor for her signature.

Religious Released Time

This week, the Alabama Senate Education Policy Committee held a hearing on a religious liberty and parental rights bill sponsored by Senator Shay Shelnutt, with strong support from Lt. Governor Will Ainsworth. The bill requires local school boards to create policies for off-campus religious instruction with parental consent, funded privately. Private sponsors would assume liability and provide transportation. Additionally, strict attendance records must be kept and made available to the school.

The bill aims to ensure equal access to religious instruction and educational opportunities. Currently, only 12 districts in the state offer these programs despite strong parental demand. The bill is constitutional, according to the Supreme Court, and over a dozen states have similar policies. Under this legislation, local districts have broad local control to create their own policies and are not required to accept programs that don’t fit within their local conditions and schedules. Parents must sign off on these programs. Opponents have not provided valid reasons to oppose the legislation, according to the Lt. Governor. “During public hearings held on this bill, no school official or superintendent opposing its passage has offered a single valid argument against it,” Ainsworth said.

Education Trust Fund Budget

The Alabama Senate has approved a nearly $10 billion education budget. The budget allocates funds, roughly 68% of which are designated for elementary and secondary education and roughly 26% for higher education. Senator Arthur Orr emphasized the importance of this investment in ensuring equal educational opportunities for all students across Alabama. 

Raise Act

This week, legislation, sponsored by Senator Arthur Orr and Representative Danny Garrett, regarding education funding in the state passed the Senate. This bill aims to improve student outcomes through a new K-12 funding and accountability system. The bill proposes the allocation of state dollars to provide additional funding based on specific student needs. This includes extra support for students in poverty, special education, English learners, gifted students, and those in charter schools.

This legislation also includes certain accountability measures, requiring school districts to submit annual plans on how the RAISE funds will be used and to report on student progress. There would be state oversight provided by a review committee and an accountability board to ensure effective implementation. The bill has been sent to the House for consideration.

Cannabinoid Legislation

This week, the House swiftly passed legislation, sponsored by Representative Andy Whitt, to regulate cannabinoid products. The bill authorizes the Alabama Alcoholic Beverage Control Board to oversee the licensing of manufacturers, distributors, and retailers. This bill also prohibits the sale of hemp products to individuals under 21 and restricts sales to specific retail locations, such as liquor stores and standalone hemp product shops.

The legislation also bans inhalable hemp products, limits THC content, and imposes a 7% excise tax on manufacturers and wholesalers. Additionally, it establishes labeling and testing requirements, mandates strict attendance records, and provides for civil and criminal penalties for violations. The bill aims to ensure safe and regulated access to hemp products while addressing public health concerns.

Alabama Personal Data Protection Act

This week, legislation, sponsored by Representative Mike Shaw, regarding personal data received a favorable report from the Commerce and Small Business Committee. This bill, titled the Alabama Personal Data Protection Act, is designed to allow consumers greater control over their personal data while providing minimal disruption to businesses. This legislation applies to businesses operating in Alabama or targeting Alabama residents, with specific criteria and exemptions included in the bill.

Representative Shaw has considered feedback from numerous groups in crafting this legislation and emphasizes that the bill strikes a balance between protecting consumer rights and maintaining a business-friendly environment, ensuring that Alabama remains an attractive place for businesses to operate.

Workforce Transparency Act

This week, the Workforce Transparency Act, sponsored by Representative Ben Robbins, received a favorable report from the Senate FRED Committee after a minor amendment. The bill aims to increase transparency and accountability in employing temporary foreign workers in Alabama and recoup funds for public benefits used by non-U.S. citizens.

The legislation regulates "labor brokers," requiring them to report specific information to the Department of Workforce. It also establishes a framework for the state to be reimbursed for public benefits used by non-U.S. citizens authorized to be in the U.S. Additionally, the bill updates new hire reporting to include USCIS numbers for non-U.S. citizens alongside Social Security numbers. Enforcement mechanisms include fines, loss of economic incentives, and criminal penalties.

Key terms are defined, such as "labor broker," which refers to entities recruiting six or more foreign workers within certain immigration categories for job placement. Bona fide employment services providers are excluded if they meet specific criteria. Several other pieces of immigration-related legislation were discussed in committees by legislators this week as well. This bill now moves to the full Senate for consideration.

Ban on School Gender Instruction

The House Education Policy Committee has given a favorable report to legislation, sponsored by Representative Mack Butler, that expands the existing state law to prohibit classroom instruction or discussion related to gender identity or sexual orientation in public schools.

The bill reinstates language requiring instruction to be “age appropriate or developmentally appropriate for students in accordance with state standards.” It also prohibits public school employees from displaying flags or insignia related to sexual orientation or gender identity in classrooms. A previous provision that would have barred school employees from using pronouns inconsistent with a student’s sex assigned at birth was removed. This bill now moves to the full House for consideration.

Status of the Legislature

The legislature used three working days this week, bringing its current total to 21 of its allotted 30 legislative working days. 

As of April 10, 566 bills have been filed in the House, and 325 bills have been filed in the Senate.

The House will reconvene on Tuesday, April 15 at 1:00 PM, and the Senate will reconvene on the same day at 2:00 PM. Upon return, the legislature is expected to use two legislative working days.