Alabama Bills

SB 138 prohibits franchisors from requiring franchisees to operate on religious days if the franchisee has a sincerely held religious belief, unless specific exceptions apply. These exceptions cover cases where the original franchise agreement already required operation on a religious day, the franchisee later agrees to such a requirement, or the requirement is part of expanding franchise locations. The bill provides remedies for violations, including actual damages, attorney fees, and civil penalties up to $50,000 for repeated offenses. It directly affects franchisees with religious objections and franchisors managing franchise agreements, while excluding motor vehicle and other regulated franchise types.

SB 221 would change Alabama's sales tax rules by excluding credit card transaction fees from the taxable amount when customers pay by card. Specifically, merchants would no longer include fees charged by credit/debit card networks (e.g., interchange fees) when calculating sales or use tax on purchases. This directly affects merchants who currently pay tax on the total amount charged to customers, including these fees. The bill requires the Department of Revenue to create implementation rules and takes effect September 1, 2026.

This bill establishes an Alabama Charter School Finance Authority and grants it bonding authority to manage financial operations for charter schools. It creates a board with specific powers to enter contracts and make investments on behalf of the authority. The legislation also provides immunity from lawsuits for the authority's members, officers, and employees when acting within their official duties, except in cases of intentional, willful, or wanton misconduct. This protection applies to claims involving property damage, personal injury, or other civil liabilities arising from their official actions.

SB 42 revises Alabama's municipal election rules to require runoff elections whenever no candidate receives a majority of votes cast in any municipal election - including races with only two candidates. The bill mandates that if no candidate achieves over 50% of the total votes, the municipal governing body must hold a runoff between the top two candidates. This change applies to all Alabama cities and towns holding elections where a majority winner is not determined in the first round. The law, effective June 1, 2026, updates existing procedures to ensure runoffs occur in all such cases, eliminating the previous exception for two-candidate races.

HB 239 would increase salaries for Alabama public education employees by 2% starting in the 2026-2027 fiscal year. It applies to K-12 teachers, support staff (including bus drivers), and employees at the Alabama Institute for Deaf and Blind (AIDB), as well as two-year postsecondary education staff. The bill requires all affected employees to receive this automatic increase regardless of experience level, with local salary schedules adjusted to reflect the change. The pay increase is mandated to be applied in addition to any existing step increases or local adjustments.

SB 158 requires Alabama public high schools to set aside one school day each fall for military recruiters to administer the ASVAB (Armed Services Vocational Aptitude Battery) test to students on campus. Participation in the test is voluntary, and schools must provide appropriate testing accommodations. This bill amends existing law - which already mandates schools grant military recruiters access similar to employers - by adding this specific annual requirement for the ASVAB. The policy becomes effective October 1, 2026.

SB 137 creates the Alabama Resilience Council, an advisory group within the executive branch, to coordinate state resilience efforts and develop a statewide resilience plan. The council, composed of state agency heads and diverse stakeholders, must conduct risk assessments, prioritize resilience strategies, and engage private sector partners to strengthen community and infrastructure preparedness for disasters. It establishes a Chief Resilience Officer (appointed by the Governor) to lead these efforts and requires a comprehensive plan addressing natural/manmade threats like floods or infrastructure damage. Funding for the council will come from revised insurance license fee distributions, directly affecting state agencies, local governments, and businesses through coordinated risk management and planning.

HB 235 provides $419.7 million in supplemental funding from Alabama's Education Trust Fund for the 2026 fiscal year, primarily supporting education and workforce programs. The bill allocates funds to school systems for fleet renewal ($66.5M), school safety initiatives ($50M), college and career readiness programs, specialized schools (like cyber and healthcare academies), public libraries, and universities for facility maintenance and research. Additional funding includes $3 million for Alzheimer's prevention research through Hudson Alpha and $100 million from the CHOOSE Act Fund to the Department of Revenue. These funds directly affect Alabama's public schools, colleges, libraries, and healthcare facilities by addressing infrastructure, safety, and educational program needs.

SB 226 allocates supplemental funding for Alabama's fiscal year ending September 30, 2026, primarily providing $387.5 million from the Public Road and Bridge Fund and $200 million from the Rebuild Alabama Fund to the Alabama Department of Transportation for highway and bridge projects. It also allocates $50 million for energy infrastructure development through the Strategic Energy Infrastructure Development Fund and $11 million to the Unified Judicial System for court operations. Additional funds support Medicaid, the Alabama Alcoholic Beverage Control Board, and geological surveys. The bill amends the main transportation appropriation to include the Alabama Highway Authority in debt service payments for highway bonds.

HB 75 requires Alabama public high schools to excuse students from class during instructional time for organized National Signing Day events related to athletic scholarships, college commitments, apprenticeships, or military enlistment. The bill directly affects high school students participating in these specific opportunities, ensuring they can attend without academic penalties. Schools must provide reasonable accommodations like meeting spaces with internet access for these activities. The law would take effect on October 1, 2026, if passed.

SB 15 creates a voluntary state-level process called the Uniform Assignment for Benefit of Creditors Act, allowing distressed businesses (organizations, not individuals) to liquidate assets and pay creditors without filing for federal bankruptcy. The bill establishes a clear procedure where a business (the "assignor") transfers all assets to a third party (the "assignee"), who then distributes proceeds to creditors with valid claims. Key provisions include standardized definitions for assets and claims, requirements for filing assignments, notifying creditors, handling disputed claims, and ensuring fair distribution while avoiding federal bankruptcy court proceedings. This process directly affects struggling businesses seeking a streamlined, state-managed solution for debt resolution.

HB 60 requires Alabama courts to delay both criminal and civil cases when a party, their lead attorney, or a key witness is on active military duty. In criminal cases, the court must set bail for the defendant if the state gets a continuance for military absence, except for violent offenses (with court discretion) or capital crimes. The bill also mandates that Alabama’s Supreme Court update its rules to match these requirements. The law takes effect on October 1, 2026.