Goat Hill Report- Week Ending May 9, 2025

This week the Alabama legislature completed Days 28 and 29 of the 2025 session, and they will return next Wednesday, May 14, for the final Day 30 (Sine Die). The legislature left a seven-day gap between the 29th and 30th days in case they want to override Governor Ivey’s veto on any bills passed on or before the 29th day. Under Alabama law, the governor must sign or veto legislation within 6 days of transmittal (excluding Sunday), or it becomes law without her signature. If legislation is passed on the final day, the governor must sign or veto it within 10 days of session adjournment, or the legislation is “pocket vetoed” (a veto by virtue of no signature). Details of this week’s notable action and news items are provided below.

Notable Bills Signed into Law by the Governor

• ALFA Health Plan Legislation – Governor Ivey officially signed a HB477 by Rep. David Faulkner (R-Mountain Brook) that will permit the Alabama Farmers Federation (ALFA) to offer and provide health care plans for its members that do not have to follow the same laws and regulations as health insurance programs. Supporters said the plan would provide an affordable alternative for farmers and self-employed people who are ALFA members and who struggle to pay for health insurance. However, members who have employer-sponsored plans cannot buy the plans. Opponents such as Blue Cross and Blue Shield of Alabama said the plan will create an unlevel playing field because it would not have to comply with the Affordable Care Act and could deny coverage to people with expensive, preexisting medical conditions, which insurance plans cannot do. Eleven other states, including Tennessee, have farm bureau health insurance plans, according to the Senate sponsor of the bill, Sen. Arthur Orr, (R-Decatur). The legislation passed the House 98-1, and it passed the Senate 30-2.
• Both Budgets Signed – On Monday, Gov. Kay Ivey signed Alabama’s budgets for the 2026 fiscal year, which begins October 1.
• The Education Trust Fund (ETF) will provide nearly $10 billion in funding for the state’s various education programs and agencies and is a 6% increase over the previous year. Although it includes no pay raises for education employees, the ETF does include a $99.2 million increase for the Public Education Employees’ Health Insurance Plan. It also includes $9.6 million to support a newly enacted parental leave policy for state and education staff and $15.6 million designated for a new workers comp-like employee injury compensation program. The budget also provides $180 million for the CHOOSE Act, a voucher-like program that provides tax credits for nonpublic education expenses, including private school tuition.
• The General Fund (GF) budget totals $3.7 billion for the 2026 fiscal year, a 10% increase ($347 million) over the current budget. The GF includes a $223.8 million (19%) increase over the current year for the Medicaid Agency, totaling $1.18 billion; a $90.1 million (11%) increase for the Alabama Department of Corrections, for a total of $826.7 million; a $4.7 million (3%) increase for the Alabama Department of Human Resources, totaling $148.9 million; and a $4.7 million (2%) increase for the Alabama Department of Mental Health, totaling $244 million.

Key Legislation Awaiting the Governor’s Signature

Several other notable bills passed this Legislature this week and are awaiting Governor Ivey’s signature as of this writing. Those include:

• Ban on Cell Phones in Schools – HB166 by Rep. Leigh Hulsey (R-Helena), also known as the FOCUS Act, will prohibit student use of cell phone in classrooms. Educators and school leaders around the state have widely praised the proposal. There are defined exceptions in HB166 to cover emergency situations or approved student learning needs (i.e., an individualized education plan). Attempts to further amend the bill on the Senate floor were rejected by Sen. Donnie Chesteen (R-Geneva), the chairman of the Education Policy committee who worked with Rep. Hulsey closely throughout the legislative process. A less noticed but important provision in the bill requires school districts to develop internet safety/social media policies on approved school devices.
• Regulation of THC/Hemp Products – HB445 by Rep. Andy Whitt (R-Harvest) will establish statewide control of hemp derived products (through the Alabama Alcoholic Beverage Control Board – “ABC”) and ban a wide range of existing products which contain certain cannabinoids. The proposal had strong support from the law enforcement community as well as many concerned about broader effects of the products on public health outcomes – particular amongst children. Small business owners in the THC/CBD industry were successful in fighting attempts to ban all products but are concerned about the ABC’s new licensing process for retailers, which will take months to fully develop. It is rumored that litigation will be filed in response to HB445 in the coming weeks.

Preview of the Final Legislative Day

The Legislature will return for its final meeting day next Wednesday, but a battle between the chambers that emerged on the 29th day may not let up and threatens remaining items to be considered. The stand-off on the next-to-last legislative day began with Sen. Rodger Smitherman (D-Birmingham) using a filibuster to stall a bill that would change the governance of the Alabama Department of Archives and History. The bill is a response to recent LGBTQ programming at the ADAH which has drawn the ire of Republicans. After the situation was defused when the bill was sent to conference committee, both chambers then ground to a halt amid a dispute between the Alabama House and Sen. Bobby Singleton (D-Greensboro) over the senator’s local bill (SB90) re gaming in Greene County. House Democrats attempted to bring up SB90 for a vote, but House Republicans – many of whom supported last session’s comprehensive gambling bill which failed in the Senate by one vote – blocked the procedural move and made it clear that they would not approve gaming through local legislation. Legislators traditionally defer to local legislators on their local bills. Speaker Nathaniel Ledbetter publicly announced that Singleton’s bill will not be on the calendar when the House returns next Wednesday, but Singleton responded he still wants his bill passed like other local bills. Singleton added that the Senate still had to pass about 50 House local bills and also approve confirmations, but he threatened that he was willing to filibuster most if not all of them. The gridlock could also jeopardize other notable legislation, including the “Back the Blue” bill that would expand police immunity – HB202 by Rep. Rex Reynolds (R-Hazel Green). HB202 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. Gov. Ivey specifically advocated for the bill in her State of the State address in February, but it’s fate on the final date is very much in doubt along with other bills awaiting final action.

Bills of Interest to the Concrete Industry

HB 387 by Danny Garrett that would reduce the manufacturing tax rate from 1.5% to 1.25% is awaiting final passage in the Senate.

The legislature will reconvene on May 14, 2025.