2025 Alabama Legislative Update: Regular Session - Week Seven

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Pharmacy Legislation

This week, the House Insurance Committee gave a favorable report to legislation, sponsored by Senator Billy Beasley, 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. This rate includes a $10.64 dispensing fee. The legislation also includes various provisions regulating PBMs and eliminates gag clauses between pharmacists and consumers. The committee removed the sunset provision as well as the private cause of action from the legislation. This legislation now moves to the full House for consideration, where it is expected to pass.

ALFA Health Plan

A public hearing was held this week on comprehensive legislation proposing the creation of a new type of "health plan" that would be exempt from most state and federal laws and regulations, under the oversight of the State Department of Insurance. The Alabama Farmers Federation (ALFA), the primary supporter of the bill, would be authorized to market and sell these plans. Opponents at the hearing acknowledged that some version of this legislation is likely to pass this session, but raised concerns about the bill's lack of consumer protections, potential denial of coverage for preexisting conditions, and the creation of an unregulated health plan product. Committee members advised ALFA to include more details in the bill. Proponents argued that the plan offers an alternative to traditional health insurance for a small group of farmers.

Cannabinoid Legislation

This week, there was a public hearing held on a bill sponsored by Representative Andy Whitt that would more strictly regulate psychoactive cannabinoids like Delta-8 and Delta-10. The bill proposes that the Alabama Alcoholic Beverage Control (ABC) Board oversee the licensure of manufacturers and retailers, bans all hemp-derived inhalable products, and restricts sales of these products to individuals over 21 years old. It also includes requirements for labeling and testing, imposes a THC content cap, and imposes an excise tax. Proponents argued that this would hurt businesses, while opponents emphasized the dangers of certain unregulated cannabinoid products during the public hearing. Some members of the committee noted that these substances should be banned outright. The bill is awaiting a vote by the House Health Committee.

General Fund

On Thursday, the House of Representatives approved a $3.7 billion General Fund budget for the 2026 fiscal year. The budget includes increases in funding for various state agencies, including the Alabama Department of Corrections, which will receive $737 million, and the Alabama Department of Mental Health, which will see an increase to $238 million. The budget also allocates $955 million to the State Medicaid Agency. House Ways and Means General Fund Chairman Rex Reynolds said when discussing the bill: “Sustainability is always my priority when developing the budget. We must make decisions that the state can afford not only now but, in the future, as well . . . While high interest rates are driving revenue growth in state accounts, that will not always be the case, which is why we must continue to approach this process from a fiscally conservative standpoint.”

Gaming

There was significant chatter regarding the possibility of gaming legislation in Montgomery this week. A newly unveiled plan that proposes legalizing a state lottery, sports betting, and electronic games at six sites across Alabama was the primary topic of conversation. The mentioned sites in this plan include racetracks in Greene, Jefferson, Macon, and Mobile counties as well as bingo hall locations in Greene, Houston, and Lowndes counties. However, Senate Pro Tempore Garland Gudger shut down rumors of a comprehensive gaming package passing this session due to a lack of consensus among lawmakers and a lack of time to work through a piece of comprehensive gaming legislation. 

Truck Weight Restrictions

This Tuesday, the Alabama Senate passed legislation, sponsored by Senator Jack Williams, related to improving roadside log truck weighing efficiency. The initial version of the bill included a section increasing the tandem axle weight limit for logging trucks from 34,000 pounds to 44,000 pounds, but this was removed due to concerns regarding potential damage to roads and bridges. The bill now limits the number of trucks that can be pulled over at once to five and addresses long wait times that have cost drivers work hours. The bill also outlines immediate actions a driver can take if they believe they were wrongfully ticketed for an overweight truck. Both Senator Williams and Senator Chambliss received praise from their colleagues for addressing stakeholders’ concerns and crafting a compromise bill. This legislation passed 32-0 and will now move to the House for consideration.

Vaccination Exemption

On Thursday, the Alabama Senate passed legislation, sponsored by Senator Arthur Orr, that expands the current law regarding vaccine exemptions for students in public schools and colleges. The legislation simplifies the process for parents and students to opt out of vaccinations for religious reasons by only requiring parental written declaration to exempt their child from vaccination requirements. It also extends these exemptions to students enrolled in public institutions of higher education. On the Senate floor, proponents argued that the bill protects individual freedoms and parental rights, while opponents expressed concerns about public health and the potential for increased outbreaks of vaccine-preventable diseases. The bill now moves to the House for further consideration.

School Cellphone Ban

On Thursday, the House passed legislation sponsored by Representative Leigh Hulsey, which bans the use of cell phones and other wireless communication devices in public K-12 schools during the instructional day. The stated goal of this legislation is to reduce distractions during the school day and improve the learning environment for students. It requires local boards of education to establish an Internet safety policy and mandates that students complete a social media safety course before beginning the eighth grade. This legislation will now move to the Senate with a companion bill carried by Senator Donnie Chesteen.

Baldwin County Tax Debate 

This week, there was heated debate regarding the distribution of Baldwin County's sales tax revenue. The controversy centers around what share of tax dollars schools in the county are receiving. Some have described the debate as a "civil war", highlighting the disagreements between lawmakers from the county on the issue. Some lawmakers have urged their colleagues to resolve the issue locally rather than litigating the issue before the state legislature, but this clash is likely to continue in the coming weeks. The debate reflects broader tensions over resource allocation and local governance in Baldwin County, and there have even been suggestions of attempting to split the county into two new counties.

Status of the Legislature

The legislature used two working days this week, bringing its current total to 18 of its allotted 30 legislative working days. 

As of April 3, 530 bills have been filed in the House, and 299 bills have been filed in the Senate.

The legislature will not convene next week. The House will reconvene on Tuesday, April 8, 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.