2025 Alabama Legislative Update: Regular Session - Week Three

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Pharmacy Benefit Managers (PBMs)

This week, there were public hearings held on two pieces of legislation concerning PBMs, but they did not advance as there were no votes on the bills. SB93, sponsored by Senator Andrew Jones, would require PBMs and private health plans to reimburse pharmacies using the state Medicaid Agency’s pricing index, with a $10.64 dispensing fee per prescription. SB99, sponsored by Senator Larry Stutts, mandates reimbursement using the NADAC index plus 2% or $25, whichever is less, in addition to a $10.64 dispensing fee.

During the public hearings, splintered pharmacist groups highlighted the strains imposed by PBMs, emphasizing the challenges faced by independent pharmacies. However, these bills have faced significant opposition from the state’s business and manufacturing communities. Business and manufacturing groups emphasize that both pieces of legislation would place a financial burden on employers and consumers by imposing a significant dispensing fee on every filled prescription. While opponents of the proposed legislation expressed understanding of the pharmacists' concerns, they highlighted that adding the fees to every prescription is not the solution and will be harmful to the very businesses the state has worked so hard to attract.

Immigration

While several pieces of legislation related to immigration were filed in the legislature this week, two pieces of immigration-related legislation in particular have caught the attention of various trade associations and the business community in Montgomery. 

Workforce Transparency Act
This week, Representative Ben Robbins filed the Workforce Transparency Act. This legislation is aimed at creating greater transparency and accountability in the employment of temporary foreign workers in Alabama and recouping funds for the use of public benefits in Alabama by non-U.S. citizens. 

Specifically, this legislation regulates “labor brokers,” a new legal term discussed in the following paragraph, and mandates the reporting of specific information to the Department of Workforce. It also creates a framework for the state to be reimbursed for public benefits used by non-US citizens authorized to be in the U.S. Additionally, the bill updates existing code regarding new hire reporting to now require the inclusion of U.S. Citizenship and Immigration Services (USCIS) numbers for non-U.S. citizens authorized to be in the U.S., whereas currently only Social Security numbers are included in the reporting. The legislation also establishes several enforcement mechanisms, including fines and criminal penalties.

The bill narrowly defines key terms crucial for understanding its function. It specifies that a "labor broker" is any person or entity that recruits or hires six or more foreign workers within certain temporary immigration categories, such as asylum status, parole status, or humanitarian grounds, within a calendar year to supply to a third-party client for job placement in the state. Bona fide employment services providers, such as temporary staffing agencies and licensed employment agencies, are excluded from this definition if they satisfy certain criteria. A “third-party client” is defined as any entity that contracts with or compensates a labor broker to obtain specific categories of temporary foreign workers for job placement.

This legislation has been referred to the House Judiciary Committee and could be debated and voted on in that committee as early as next week.

International Wire Fee
This week, Representative Jennifer Fidler introduced a bill, similar to Senate legislation that was carried over in the Senate for procedural reasons, that would impose a 4% fee on international money wire transfers originating from Alabama. Importantly, this fee is not imposed when the money debited is from an account held by the requester at a banking institution or credit union authorized to do business in this state or any business entity authorized by law to operate in this state, other than a money transmission business.

In its current form, this legislation would generate revenue to support county sheriffs and to fund English language learner programs in public schools. Additionally, Alabama residents would be eligible for a tax credit to offset the transfer fees. Conservative estimates indicate that this legislation would annually generate well over twelve million dollars in fees for the state.

This legislation has been referred to the Ways and Means Education Committee and could be debated and voted on in that committee as early as next week.

Veterans Resource Center

This week, the Alabama Legislature passed legislation, sponsored by Senator Andrew Jones, to support veterans and their families. The legislation establishes the Alabama Veterans Resource Center, a comprehensive facility dedicated to assisting veterans, military personnel, and their families with a wide range of services. The center will focus on mental and physical health, employment opportunities, social connections, and overall well-being. This initiative has received strong backing from the business community. Senate Pro Tempore Garlan Gudger emphasized the importance of this legislation, stating, "There is not a greater priority that we, as elected officials, should have than making sure that each and every one of them is given the support that they need." The bill has been sent to the governor for her signature.

Business and Nonprofit Entity Code

This week, the House passed legislation, sponsored by Representative Cynthia Almond, that updates the Alabama Business and Nonprofit Entity Code. Specifically, this legislation clarifies how to approve and authorize agreements like conversions, mergers, and exchanges. It also introduces a process to correct improperly approved documents and explains rules for termination fees and naming merger agreements. The bill also simplifies the process to buy out a stockholder or member of a professional corporation, LLC, or partnership if they die or are disqualified. This legislation passed the House unanimously on Thursday and has been sent to the Senate for consideration.

Veterans Board Legislation

This Tuesday, the Alabama Senate passed a revised bill, sponsored by Senator Andrew Jones, to restructure the Alabama Department of Veterans Affairs (ADVA) after being previously carried over. The original bill reduced the ADVA board from 17 to 9 members and changed the appointment process to give the governor more authority. However, the substituted version of the legislation keeps the current board structure and selection process but makes the ADVA Commissioner a cabinet-level position, allowing the governor to hire and fire the commissioner.

When discussing this legislation, Senator Jones stated, “We want to elevate the commissioner of the Department of Veterans Affairs to a cabinet-level position, someone that’s fully in state government, an agency that’s fully in state government, that has the full resources to bear state government.” This legislation passed the Senate with a vote count of 21-9 and has been sent to the House for consideration.

Other Topics to Watch

• Critical Infrastructure Protection: On Thursday, the Senate passed legislation, sponsored by Senator Dan Roberts, that protects critical infrastructure and critical infrastructure facilities in Alabama. The bill introduces criminal penalties for unauthorized entry and tampering with infrastructure and facilities as defined in the legislation. This legislation has been sent to the House for consideration, where Representative Arnold Mooney has filed similar legislation.
• Age of Medical Consent:  Legislation, sponsored by Representative Susan DuBose, HB256, proposes to raise the age of medical consent in Alabama to 18. Under existing law, minors aged 14 and older can consent to medical, dental, and mental health services. This legislation also gives parents greater ability to review the medical records of their children, and thus, this legislation is being discussed as a parental rights bill. Senator Sam Givhan has sponsored similar legislation in the Senate. Representative Chip Brown is carrying legislation, which has already passed in the House, that specifically raises the age of consent to receive a vaccine.
• Cannabis/Cannabinoid Beverages: Legislation sponsored by Senator Shay Shelnutt was filed this week that would ban drinks with cannabinoids like delta-8, delta-9, and delta-10 THC. There would be exceptions for Alabama's medical marijuana program. Other legislation regarding the legality of cannabinoids has been filed by Senator Tim Melson this session.
• Safe Alabama Package: This week, several bills from the "Safe Alabama" package made progress in the Alabama Legislature. Notably, two pieces of legislation in the package passed the House unanimously this week and have been sent to the Senate for consideration. One of these bills establishes a scholarship program for the families of law enforcement officers, and the other enhances the state's ability to electronically monitor criminal juvenile offenders. 
• Pharmacy Board Legislation: Legislation, sponsored by Representative Kerry Underwood, passed the House this week that alters the makeup of the Board of Pharmacy, sets member qualifications, and makes other changes to the functioning of the board.

Status of the Legislature

The legislature used two working days this week, bringing its current total to 8 of its allotted 30 legislative working days. 

As of February 21, 325 bills have been filed in the House, and 193 bills have been filed in the Senate.

The House will reconvene on Tuesday, February 25, at 1:00 PM, and the Senate will reconvene on the same day at 2:00 PM. Next week, the legislature is expected to use two legislative working days.