2025 Alabama Legislative Update: Regular Session - Week Two

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VA Leadership 

This week, the Senate carried over legislation sponsored by Senator Andrew Jones that aims to restructure the leadership of the Alabama Department of Veterans Affairs. Specifically, the bill proposes significant changes, including granting the Governor the authority to appoint and remove the Alabama Department of Veterans Affairs commissioner and shifting the State Board of Veterans Affairs to an advisory role. 

Republicans are divided on this legislation. Some believe it will streamline operations and improve accountability within the department. Governor Kay Ivey, who supports the bill, stated that it would "bring the department fully into the fold of state government and make the head of the Department of Veterans Affairs a cabinet-level position." However, others, including Lt. Governor Will Ainsworth, oppose the changes. Lt. Governor Ainsworth argues that the current system has operated well for many years and that "men and women who have actually worn a uniform should remain in charge." 

The bill being carried over, which delays a vote, will allow more time for veterans' organizations and stakeholders to review amendments made on the Senate floor during this week’s debate. These amendments primarily aim to increase veteran representation on the board and expand its membership. The legislation will be revisited by the Senate as early as next week.

The Alabama Development Fund

On Thursday, the House passed legislation sponsored by Representative Andy Whitt that proposes changes to the Tax Incentive Reform Act of 1992. The bill aims to modify existing abatement laws for a portion of the state's noneducational ad valorem taxes and construction-related transaction taxes for abatements granted on or after June 1, 2026. The collected taxes will be deposited into the newly created Alabama Development Fund, which will support economic development, particularly in rural areas. This fund will be administered by the Department of Commerce. The taxation changes will take effect on June 1, 2026, while the fund will be established on October 1, 2025. The legislation passed the House with a vote of 100-2 and now moves to the Senate for consideration.

Unemployment Benefits

On Tuesday, the House passed a bill sponsored by Representative Ed Oliver that imposes increased requirements for Alabamians receiving unemployment benefits. Specifically, the bill increases the number of required weekly employer contacts from three to five. This legislation builds upon 2021 legislation that raised the requirement from one to three. Despite some partisan opposition, the bill passed the House with a vote count of 76-25 and now moves to the Senate for consideration.

Recapture of Jobs Act Incentives

This week, legislation sponsored by Senator Merika Coleman which mandates the recapture of economic incentives in certain circumstances, passed the full Senate. Specifically, this bill updates the requirements for project agreements under the Jobs Act. The legislation adds a specific provision to these agreements, mandating the recapture of incentives if a company is found guilty of violating human trafficking laws or federal child labor provisions under the Fair Labor Standards Act.

Aviation Operations Tax Exemption 

This week, legislation sponsored by Representative Brock Colvin was introduced that aims to exempt the gross receipts from the sale of certain aircraft and aircraft parts from state sales and use tax. Additionally, it would exempt the gross receipts from the leasing or rental of these aircraft parts from state lease or rental tax. Municipalities and counties would also have the option to exempt these purchases from local sales, use, and rental or lease taxes. This bill is pending committee action.

Feminine Hygiene Products Tax Elimination

Legislation sponsored by Senator Arthur Orr and Representative Neil Rafferty that would eliminate sales and use taxes on certain feminine hygiene products received a favorable report from the Senate Finance and Education Committee this Wednesday. This legislation would remove sales and use taxes on some baby products, including baby formula, diapers, wipes, and bottles. Additionally, the bill would eliminate sales and use taxes on feminine hygiene products, including menstrual hygiene products, maternity clothing, and breast milk pumping equipment. This legislation now moves to the Senate for consideration.

Mandatory Dual Enrollment Access 

On Thursday, the House passed a bill sponsored by Representative Jeana Ross to expand dual enrollment access for high school students. Specifically, the bill requires local education agencies to allow students to enroll in dual enrollment courses at community colleges upon parental request. The bill unanimously passed the House and now moves to the Senate for consideration.

What is A Woman? Act

On Tuesday, the Alabama Legislature passed the "What is a Woman?" Act. This legislation, sponsored by Senator April Weaver and Representative Susan DuBose, adds definitions for terms such as "man," "woman," "boy," "girl," "father," "mother," "male," "female," and "sex" to the state code. The bill’s sponsors said that it provides definitional clarity to the state code. This legislation has been signed into law by Governor Kay Ivey, a vocal proponent of the legislation.

Death Penalty For Child Rapists

This week the House passed a bill sponsored by Representative Matt Simpson that permits child rapists to be sentenced to death. Specifically, the bill targets adults convicted of first-degree rape or sodomy of a child under 12. The legislation is positioned to prompt a challenge to a 2008 U.S. Supreme Court ruling that deemed the death penalty for child rape unconstitutional. Representative Simpson believes that if more states adopt similar laws, the Supreme Court could revisit its decision. This legislation passed the House with a vote of 86-5 and now moves to the Senate for consideration. 

Other Topics to Watch

Immigration 

• Several pieces of immigration-related legislation were passed in the Senate this week and have been sent to the House for consideration. These bills include legislation by Senator Lance Bell concerning fingerprinting and DNA collection from non-citizens in custody, legislation sponsored by Senator Wes Kitchens addressing the concealing and smuggling of illegal aliens, and legislation sponsored by Senator Chris Elliott that invalidates driver's licenses issued by other states that do not require proof of citizenship. The international wire transfer tax bill sponsored by Senator April Weaver was carried over as it must constitutionally be first passed in the House because it is a tax.

Presumptive Medicaid Eligibility for Pregnant Women

• On Thursday, the House passed a bill, sponsored by Representative Marilyn Lands, to provide presumptive Medicaid coverage for pregnant women until sundowning in 2028, when adequate data will have been collected.  Specifically, the bill aims to ensure immediate prenatal care by extending Medicaid eligibility for up to 60 days while applications are processed.  Representative Lands received bipartisan support for this legislation during discussion on the House floor. The bill unanimously passed the House and now moves to the Senate for consideration.

Pharmacy Benefit Managers (PBMs)

• This week, the two pieces of legislation concerning Pharmacy Benefit Managers (PBMs) did not advance. The fragmented pharmacist groups advocating for these bills are currently working to unify their support behind a single piece of legislation. SB 93 requires PBMs and private health plans to reimburse pharmacies using the Medicaid Agency’s pricing index with a $10.64 dispensing fee per prescription, while SB 99 mandates reimbursement using the NADAC index plus 2% or $25, whichever is less, in addition to a $10.64 dispensing fee. There will be public hearings held on both bills next week in the Senate Banking and Insurance Committee meeting.

Crime - Safe Alabama

• This week, Governor Ivey, alongside state officials and mayors, advocated for the "Safe Alabama" public safety package. Several pieces of legislation in the package, which includes state measures to ban Glock switches, expanded funding to the Metro Crime Suppression Unit, and enhanced legal protections for police, moved in the legislature this week.

Status of the Legislature

The legislature used three working days this week, bringing its current total to 6 of its allotted 30 legislative working days. 

As of February 14, 290 bills have been filed in the House, and 173 bills have been filed in the Senate.

The House will reconvene on Tuesday, February 11 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.