Goat Hill Report- Week Ending May 2, 2025
This week the Alabama legislature completed Days 26 and 27 of the 2025 session. The legislature now has three days remaining of the (maximum) 30-day session. The legislature is now expected to meet for two days next week, and then return on Wednesday, May 14 for the final day (Sine Die). Details of this week’s notable action and news items are provided below.
Both Budgets Sent to Governor
On Tuesday, both the General Fund and Education budgets passed the legislature and were sent to the Governor’s desk for her signature, amendment or veto. The Senate approved a record-high $3.8 billion General Fund budget for 2026, which represents an increase over this year’s budget by about $348 million and some $14 million more than what Gov. Kay Ivey had initially proposed. Most of the increase was attributable to increases for law enforcement, airport development grants and public health. A floor amendment from Sen. Clyde Chambliss (R-Prattville) also made part of the funding for the Board of Pardons and Paroles conditional, contingent on the board revising its parole guidelines as required by state law, which the board is currently two years delayed in doing.
The record $12.2 billion Education Trust Fund budget was sent to Gov. Ivey earlier on Tuesday when the Senate quickly concurred with House changes made last week. The ETF budget includes an additional $80 million for students to attend private schools through the state’s new school choice program – the CHOOSE Act – that begins in the upcoming school year. The legislature is also implementing a new funding formula where schools receive additional money based on their student-population needs. The new formula will operate on top of Alabama’s 30-year-old Foundation Program, which remains in place as a base layer. The RAISE Act formula adds targeted dollars for students who face greater challenges, including poverty, disabilities and language barriers. The budget does not include a raise for teachers in 2026, but there are other benefit increases including the newly-adopted paid parental leave for new parents. Governor Ivey is expected to sign both budgets.
ALFA Health Plan Bill Passes
State senators on Thursday approved legislation that will allow the Alabama Farmers Federation to sell health care plans to their members that can bypass federal requirements and turn people away for preexisting conditions. HB477 by Rep. David Faulkner (R- Mountain Brook) authorizes nonprofit agricultural organizations to provide health benefits to their members and families, defining “health benefits” as non-insurance products that include essential services such as ambulatory care, hospitalization, emergency services, and mental health support. To qualify, these organizations must be exempt from federal income tax, established prior to 1940, and have a membership covering at least 98% of Alabama counties. The bill mandates that health benefits be sold by licensed insurance producers who are either employees or affiliated agents of the organization. Additionally, it establishes a complaint system requiring the appointment of an ombudsman to address member concerns and ensures that health benefits contracts are not subject to post-claim medical underwriting. The bill would allow the Alabama Farmers Federation (ALFA) to sell health plans to farmers and anyone else who joins the organization.
Battle Over Police Immunity Bill Looms
A bill to expand immunity for police was approved by the Senate Judiciary Committee on Wednesday, but Democrats warned of their intent to fight it on the Senate floor. HB202 by Rep. Rex Reynolds (R-Hazel Green), would impose higher legal thresholds to prosecute or sue members of law enforcement, entitle officers facing charges or lawsuits to a pre-trial hearing to determine immunity, and facilitate the early dismissal of charges that fail to reach the higher legal threshold. Two members on the Judiciary Committee, Sen. Bobby Singleton (D-Greensboro) and Sen. Rodger Smitherman (D-Birmingham), both voiced their opposition to the bill. Rep. Reynolds and the bill’s supporters, which include Gov. Kay Ivey, have argued the bill is supportive of law enforcement, emphasizing provisions in the bill that ensure officers are not granted immunity for conduct that violates a person’s constitutional rights. Singleton offered three amendments to HB202, the first of which would establish a study commission to study the effect of the bill on police recruitment and retention, which was adopted. Singleton’s second amendment, which would require law enforcement agencies to adopt an updated written policy on conduct, failed to pass. Singleton’s third amendment would require law enforcement agencies to collect and archive data related to use of excessive force allegations, an amendment that Reynolds was amenable to, and was ultimately adopted. The bill went on to pass the committee as amended.
Bills of Interest to the Concrete Industry
House Bill 387 by Representative Danny Garrett would lower the manufacturing sales tax rate from 1.5% to 1.25%. ACIA member companies should be paying the lower manufacturing rate on the plant, truck and any parts used on the plant or truck as they are part of the manufacturing process of concrete. While only a marginal cut, the change would save producers money. The bill is awaiting final passage in the Senate.
Click here for a full list of bills we are following.
The legislature is scheduled to return on Tuesday, May 6, 2025.