Alabama Bills

SB 165 sets fixed qualification fees for municipal elections in Alabama's Class 4 municipalities (those with mayor-council government): $500 for mayoral candidates and $250 for council or school board candidates. It requires low-income candidates seeking fee exemptions to submit proof of income below 130% of the federal poverty level, replacing the prior system where they only needed three neighbor attestations. This directly affects candidates running for local office in these municipalities, changing both the fee structure and the documentation needed to qualify for fee waivers. The bill does not alter election procedures or voting rules, focusing solely on candidate filing requirements.

SB 63 prohibits Alabama health insurers from using artificial intelligence (AI) exclusively to decide coverage for medical services. It requires final decisions to deny or reduce coverage to be made by a licensed physician or qualified health care professional, not AI alone. Insurers must disclose to enrollees when AI is used in coverage determinations and annually certify their AI tools comply with fairness and transparency standards. The Alabama Department of Insurance can investigate and impose penalties for violations of these requirements.

HB 247 would extend the existing line-of-duty death benefit to survivors of volunteer firefighters who die from cancer, currently only available to paid firefighters. To qualify, the firefighter must have served at least six years, passed a pre-certification physical with no cancer, been active during symptom onset, and their department must document exposure to a known carcinogen during fire suppression. The bill presumes cancer arose from service if linked to a carcinogen (shifting the burden to the state to prove otherwise), aligning with Alabama’s existing death benefit framework under Title 36. This change directly affects volunteer firefighter families by creating a new eligibility path for compensation under current state law.

SB 179 amends Alabama's trust law to limit creditors' access to trust assets. It aligns creditor claims against irrevocable trusts with the Alabama Qualified Dispositions in Trust Act, reducing how much creditors can claim. The bill also clarifies when a trust beneficiary with a withdrawal power is treated as the trust creator (only if the property value exceeds specific IRS thresholds). Additionally, it allows trustees to reimburse trust creators for income taxes paid on trust assets without those payments being subject to the creator's creditors. The bill includes minor technical updates to modernize the legal language.

SB 190 exempts Advancing Sight Network from paying state, county, and municipal sales and use taxes for five years, from October 1, 2026, through September 30, 2031. The bill directly affects Advancing Sight Network, a specific organization, by removing its obligation to pay these taxes during the exemption period. Key provisions include a clear five-year timeframe, exemption from all local tax levels (state, county, municipal), and an effective date of June 1, 2026. This is a targeted tax exemption, not a broad policy change, and applies only to the named organization. The bill is currently pending in the House Finance and Taxation Committee.

SB 93 would require mayors in municipalities with an even number of council members to break tie votes only if the city council first adopts a resolution specifically authorizing the mayor to do so. This bill directly affects mayors and city councils in communities where council membership is evenly divided. The key provision replaces current procedure with a requirement that a council resolution must precede any mayoral tie-breaking vote. The bill does not change existing tie-breaking authority but adds a new procedural step for authorization. (Note: This bill is pending legislative action and not yet law.)

HB 250 amends Alabama's tax code to exclude employer contributions to "Trump Accounts" from an individual's gross income and makes permanent the existing exclusion for employer-paid qualified education loan payments. The bill directly affects Alabama taxpayers who receive these employer benefits, as it prevents these amounts from being counted as taxable income. Key provisions include updating Section 40-18-14 to add Trump Account contributions to the list of excluded items and removing the temporary nature of the education loan exclusion. This creates a permanent tax advantage for workers receiving these specific employer benefits under Alabama law.

HB 307 adds hiring preferences for military spouses in Alabama state employment by granting them five additional points on employment test scores. Specifically, spouses of active duty service members and spouses of veterans (honorably discharged) each receive five points, while surviving spouses of service members who died in action or spouses of veterans with service-connected disabilities receive ten points. The bill also allows Alabama counties, municipalities, and private employers to voluntarily adopt similar hiring preferences for military spouses and veterans. These changes apply to employment tests and promotions within the state’s classified service, aiming to support military-connected individuals in job applications.

HB 351, the Alabama Personal Data Protection Act, grants Alabama residents specific rights over their personal data. It allows consumers to confirm if their data is being processed, correct inaccuracies, request deletion, obtain copies of their data, and opt out of data processing. Businesses (referred to as "controllers") must establish secure methods for consumers to exercise these rights and create appeal processes for denied requests. The bill also regulates how businesses handle deidentified data and authorizes the Attorney General to enforce these rules.

HB 341 exempts the first $5,000 of drill pay earned by Alabama National Guard members from state income tax. This directly affects part-time service members who receive compensation for training exercises (drill pay) but not active-duty military pay. The bill amends Alabama's tax code by adding a new exemption under Section 40-18-19 for this specific income, aligning with existing exemptions for other public safety personnel. It also includes minor technical updates to the tax code language for clarity, without changing other tax provisions.

SB 206 is a procedural bill that updates Alabama's legal code by incorporating all general and permanent laws passed during the 2025 legislative session into the Code of Alabama 1975. It adopts the 2025 cumulative supplements for volumes 3-22A (general laws) and volumes 22B-22N (local laws), while making six minor technical corrections to existing code sections (e.g., fixing age references, typographical errors, or agency names). This update ensures the legal code remains current and organized, with no effect on laws passed in future sessions like 2026. The bill also specifies that the Secretary of State must maintain custody of the updated reference volumes.

HB 361, the Alabama Living Donor Protection Act, prohibits insurers from denying or limiting disability, life, or long-term care insurance coverage to living organ donors. It requires public employers (state/local government) to provide up to 80 hours of paid medical leave for employees donating organs, with no retaliation allowed. Private employers offering similar paid leave (minimum 80 hours or 15 days) qualify for a 25% tax credit (capped at $2,000 annually) for tax years starting in 2027. The bill directly affects organ donors, insurers, public employees, and private sector employers. It aims to remove financial barriers to donation through concrete protections and incentives.