SB 147 appropriates $36.6 million from Alabama's Children First Trust Fund for the fiscal year ending September 30, 2026, to fund specific child and family services agencies like the Alabama Medicaid Agency, Department of Human Resources, and juvenile probation programs. It requires all tobacco settlement revenues designated for the Trust Fund to be deposited within 30 days of receipt and mandates quarterly allocations to agencies based on available tobacco revenue, with written notifications from the State Director of Finance. The bill also transfers funds currently allocated to the State Board of Education from the Trust Fund to the State General Fund during FY2026 and appropriates an additional $44.2 million from other tobacco settlement funds for agencies like Medicaid and early childhood education. All allocations are conditioned on receipt of tobacco revenues, and unused funds remain in the Trust Fund rather than reverting to the general fund.
SB 144 appropriates $169,633 from Alabama's State General Fund to the Coalition Against Domestic Violence for fiscal year 2026 (ending September 30, 2026). The bill requires the Coalition to submit an operations plan and an audited financial report for 2024 before receiving funds, along with quarterly spending updates and an annual performance report detailing services provided and program effectiveness. These reports must be submitted to Alabama's Director of Finance, who will forward them to the Legislative Council. The funding becomes effective October 1, 2025.
HB 259 creates a state income tax credit for recruited workers (like nurses, teachers, or law enforcement officers) and remote workers who move to specific Alabama counties. The credit amount depends on the county's population size: $30,000 for Tier 1 counties (<25,000 people), $20,000 for Tier 2 counties (25,000-50,000), and $10,000 for Tier 3 counties (50,000-100,000). Remote workers must earn at least $55,000 annually and live in the target county for six months during the tax year. The credit is limited to three years per person, capped at $2 million annually statewide, and applies to tax years 2026-2030.
This bill requires Alabama Medicaid to cover rapid whole genome sequencing for children and young adults (age 21 or younger) hospitalized in intensive care units with unexplained, complex, or acute illnesses that haven't been diagnosed through standard medical testing. It applies only when the illness isn't caused by environmental exposure, infection, toxins, or trauma. The testing must deliver preliminary results within five days and final results within 14 days to determine if a genetic condition is the cause. This policy change directly affects Medicaid-covered patients in critical care settings who need faster genetic diagnosis for undiagnosed conditions.
HB 219 would expand Alabama's existing tax exemption for military personnel to include civilian employees of the U.S. Department of Defense and Armed Forces. It exempts their compensation from state income tax when earned while in a combat zone, deployed outside the U.S., or activated by Alabama’s governor or the president for emergency response. This change directly affects civilian defense workers meeting these deployment conditions, extending an existing exemption currently limited to active-duty military. The bill modifies Alabama Code §40-18-3 and applies to tax years beginning January 1, 2026. It is currently pending in the House Ways and Means Education Committee.
HB 229 creates a rebuttable presumption that joint custody is in the best interest of the child for all divorce cases, requiring courts to document reasons if they deviate from this presumption. It defines "joint physical custody" as the child spending equal or approximately equal time with both parents and mandates that all divorcing parents submit a parenting plan following a joint custody model - unless one parent files a motion for temporary relief (with penalties for unfounded filings). The bill removes outdated language allowing automatic custody transfer to a father after a child turns seven in abandonment cases and requires courts to expedite valid temporary relief motions. This affects parents navigating custody disputes in Alabama, aiming to standardize custody determinations around child-centered outcomes.
SB 135 allows Baldwin County municipalities with their own school boards to opt into sharing in a portion of the county's special privilege license tax revenue. If a municipality passes a resolution, it will receive a share of funds distributed to Baldwin County schools based on its average daily student enrollment compared to the county's total. This directly affects participating municipalities and their school systems by providing a new revenue source tied to student population. The bill takes effect October 1, 2025, and does not change existing tax collection or distribution rules.
SB 125 extends the existing tax exemption for the Alabama Wildlife Center, which currently allows the center to avoid paying state, county, and municipal sales and use taxes until September 30, 2024. The bill changes this expiration date to September 30, 2030, and applies the extension retroactively from October 1, 2024. This means the center will continue to receive tax relief for qualifying purchases made since October 2024 and through 2030. The change directly affects the Alabama Wildlife Center, a nonprofit organization operating in Alabama.
HB 204 modifies Alabama's truck weight and size regulations by adding specific truck types to existing exemptions from weight limits. It updates enforcement procedures for portable scales by requiring operators to verify scale accuracy and removing authority for certain officials to direct drivers to stationary weigh stations. The bill directly affects commercial truck operators and enforcement personnel by clarifying scale use and reducing administrative requirements. These changes aim to streamline compliance while maintaining safety standards, with no substantive policy shifts beyond the specified procedural updates. The bill is pending committee review as of February 6, 2025.
SB 136 allows Baldwin County municipalities with school boards to opt into receiving a share of the county's special privilege license tax proceeds. If a municipality passes a resolution, it will receive a pro rata portion of the tax funds allocated to the Baldwin County Board of Education, based on tax collected within its city limits. The bill directly affects participating Baldwin County cities and their school systems by changing how existing tax revenue is distributed. It becomes effective October 1, 2025, and does not create new taxes or spending.
HB 228 would exempt the first $5,000 of annual drill pay earned by Alabama National Guard members from state income tax. This policy change directly affects part-time military personnel serving in the Alabama National Guard, specifically covering income from inactive duty training. The bill amends Alabama’s tax code (Section 40-18-19) to add a new exemption for this income, mirroring existing exemptions for firefighters and police officers but setting a $5,000 limit instead of the $8,000 used for other groups. The bill is currently pending committee review in the Alabama House of Representatives.
SB 126 would exempt the Alabama Audubon organization from paying state, county, and municipal sales and use taxes for five years, from October 1, 2025, through September 30, 2030. This tax exemption applies to all sales and use taxes levied by Alabama's state, county, and municipal governments. The bill becomes effective June 1, 2025, and requires legislative action to extend the exemption beyond 2030. The legislation directly affects Alabama Audubon's operational costs related to purchasing goods and services subject to these taxes.
