2024 Alabama Legislative Update: Regular Session - Week Eleven

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Gaming
This week, a conference committee produced compromise legislation after the House and Senate passed different versions of gaming legislation. The Alabama House of Representatives advanced this compromise legislation, which would allow for a lottery and slot machines in seven locations in the state. However, late Tuesday night, this legislation failed to pass in the Senate after it became apparent that the Senate would be one vote short of the 21-vote threshold to pass the legislation because it is a constitutional amendment. Negotiations continue behind closed doors to flip no votes to yes votes. If those attempts are successful, the Senate will vote on this legislation in the coming week.  

Budgets 
On Thursday, the Senate passed the $9.3 billion 2025 Education Trust Fund (ETF) Budget and two supplemental ETF appropriations. As mentioned in previous legislative updates, the ETF has already passed the House and is the state’s mechanism for education-related funding. This bill will now go to a conference committee to review the differences in the House and Senate versions.   

The $3.4 billion General Fund Budget and supplemental appropriations, the mechanism for funding non-education related expenses, passed the House as amended and has already passed the Senate. This bill will now also go to a conference committee to address the differences in the House and Senate versions.  

Child Protection Act
This week, legislation combating AI-generated materials sponsored by Representative Matt Woods and Senator April Weaver was signed into law. This legislation expands the state’s law against child pornography by extending its scope to include images generated by artificial intelligence. Attorney General Steve Marshall stated, “It is great to see Alabama lead the nation on the important issue of AI-generated child sex abuse material. This is an unequivocal declaration that the State of Alabama has zero tolerance for the possession and production of child sex abuse material, regardless of how it was created.”  

Working for Alabama
Various pieces of the “Working for Alabama” plan, mentioned in previous legislative updates, were taken up this week. This plan aims to increase Alabama’s workforce participation, strengthen economic development in the state, and encourage community and rural development across the state. These various pieces of legislation will progress in both chambers during the next legislative week as the Legislature moves toward passing this legislative priority.  

1. Alabama Growth Alliance: The Senate version of this legislation has passed both chambers as amended and will be sent to the Governor. It establishes the Alabama Growth Alliance, a public corporation to support economic development. Its focus includes increasing private investment within the state and creating opportunities for minority-owned businesses.  
2. Workforce Development Expansion: This piece of legislation has been signed into law. As mentioned in previous legislative updates, it renames the Secretary of Labor and the Department of Workforce to the Secretary of Workforce and the Department of Workforce and alters the Department’s duties.  
3. Alternative Diploma Program:  The Senate concurred with the House’s changes in this legislation, and the bill has been sent to Governor Ivey for her signature. 
4. Child Care Tax Credits: This legislation, creating childcare tax credits for employees and employers, was approved in committee this week after a public hearing and will now go to the full Senate for consideration. 
5. Housing Tax Credit: As mentioned in previous legislative updates, this legislation would establish a tax credit for eligible taxpayers with a stake in qualifying workforce housing projects in Alabama. This legislation was approved in committee this week after some debate on the cap. This legislation will now go to the full Senate for consideration. 
6. Research Corridors: This week, legislation related to research corridors passed the House. This legislation authorizes municipalities to create research and development corridors and details the corridors' governance structure, competitive bidding process, and taxation. This bill is moving instead of the “Innovation District” legislation. Due to the House amending the legislation, it will now be sent back to the Senate for concurrence.  

Other Tax Credits  

• Aircraft and Replacement Parts: This bill, sponsored by Representative Brock Colvin and Senator Wes Kitchens, would remove the requirement that air carriers have a hub operation in this state to be exempt from sales, use, and lease taxes on the sale and lease of aircraft and replacement parts. This legislation also alters the requirements for being considered permanently domiciled in Alabama. This legislation will now go to the full Senate for consideration.  
• Feminine Hygiene Products: Legislation sponsored by Senator Arthur Orr and Representative Neil Rafferty that would eliminate sales and use taxes on certain feminine hygiene products received a favorable report from the Senate Finance and Education Committee this Wednesday. This legislation would remove sales and use taxes on some baby products, including baby formula, diapers, wipes, and bottles. This bill would also eliminate sales and use taxes on feminine hygiene products, including menstrual hygiene products, maternity clothing, and breast milk pumping equipment. This legislation will now go to the full Senate for consideration.  

Alabama Tourism Protection Act 
Legislation sponsored by Senator Garlan Gundger and Representative Corley Ellis relating to the collection of short-term rental taxes passed the House on Thursday. The primary effect of this legislation is requiring accommodation intermediaries, such as online booking platforms or travel agencies, to collect taxes related to rentals. This legislation has been sent to the Governor for her signature.   

Child Labor Penalties 
On Thursday, legislation sponsored by Senator Rob Stewart and Representative Cynthia Almond that increases both civil and criminal penalties for employers who violate child labor law passed the House this week and has been sent to the Governor for her signature. This legislation comes in response to increasing violations throughout the state. Senator Stewart stated, “We are seeing a rise in hazardous meat packing, in construction jobs, manufacturing jobs.” 

Alabama Farm Center
This week, legislation authorizing the creation of the Agriculture Exhibition Center Corporation to operate the Alabama Farm Center was sent to a conference committee to address the makeup of its board of directors. The Agriculture Exhibition Center Corporation will be deemed an economic development organization. The Alabama Farm Center would be located at Hallmark Farm in Jefferson County. Senator Shay Shellnut, the bill’s Senate sponsor, said this center is “going to bring in rodeos, all kinds of events, educational events for kids and forming, hopefully, a big economic development project for the area.”  

Alabama School of Healthcare Sciences
After some discussion, legislation creating the Alabama School of Healthcare Sciences passed the Senate on Thursday. The school will be a statewide residential school located in Demopolis, with a specialized healthcare curriculum to prepare students for work in the healthcare field. Students will have the ability to receive healthcare-related credentials in addition to their traditional high school diploma. This legislation will now be sent to Governor Ivey, a vocal supporter of the legislation, for her signature.  

Governor Ivey praised the passage of the legislation, saying, “Students from all over Alabama will soon benefit from an education at this specialty high school and then go on to bolster our healthcare workforce. The Alabama School of Healthcare Sciences is yet another way our state is leading the nation in innovative education solutions.”  

Status of the Legislature
The Legislature used two legislative working days this week, bringing its current total to 27 of its allotted 30 legislative working days.  

As of May 3, 494 bills have been filed in the House, and 349 bills have been filed in the Senate.  

The House and Senate will reconvene on Tuesday, May 7, with the House session beginning at 1:00 PM and the Senate session beginning at 10:00 AM. Next week, the Legislature is expected to use its final three legislative working days and adjourn sine die.