The legislature returned for its fifth week of session with a productive three-day work week. Several of Governor Kay Ivey’s key legislative priorities moved forward, including a Senate bill that would provide up to eight weeks of paid parental leave for eligible educators and state employees. In the House, lawmakers are still actively engaged in debate on the floor and are planning to address several key issues, including Governor Ivey’s ‘Safe Alabama’ initiative to strengthen public safety, a measure to restructure the Veterans Affairs Department, and legislation related to immigration.
BCA is closely monitoring the developments, especially Representative Ben Robbins’ bill addressing illegal immigration, to ensure Alabama businesses and employers are protected from any unintended consequences.
We will provide updates as needed to keep you informed on these important issues.
The legislature will observe a district work week next week and return to Montgomery on March 18 for the sixth week of session.
This week, BCA hosted a webinar discussing ongoing PBM-related legislation in the Alabama Senate. The proposal would implement a $10.64 dispensing fee on every prescription filled in Alabama. This proposed fee would directly increase costs, which will ultimately be passed on to businesses — resulting in higher premiums for both employers and employees.
With over 2.75 million Alabamians receiving employer-sponsored benefits, this fee could lead to hundreds of millions of dollars in added annual expenses for local employers. Despite common misconceptions, even self-insured businesses are at risk under this proposal, as it includes ERISA plans.
At BCA, we are actively working toward a solution that supports independent pharmacists without putting undue financial strain on Alabama’s employers.
House Senate Minority Leader Bobby Singleton joined BCA to share his insights on the current legislative session and the priorities of his Democratic Caucus. Senator Singleton highlighted the critical need to continue expanding rural broadband and enhancing workforce development. He emphasized that these initiatives are essential to ensuring Alabama’s growing workforce can effectively support and train a highly skilled labor force in our rural communities, positioning the state for long-term success.
Please note that BCA will not be hosting a Tuesday Morning Issues Briefing during the legislature’s district work week. Our next briefing will take place on Tuesday, March 18 at 9:00 AM, featuring House Minority Leader Anthony Daniels.
Bill: SB22
Sponsor: Sen. Merika Coleman
BCA Position: Monitor
Status: Passed Senate; pending action in House Ways and Means Education Committee
Additional Information: This bill as amended further provides for the recapture of incentives for a company who is found guilty of human trafficking.
Bill: SB84
Sponsor: Sen. Arthur Orr
BCA Position: Opposed as introduced*
Status: Pending action in Senate Banking and Insurance Committee
Additional Information: This bill would allow a nonprofit agricultural organization to provide health benefits to its members and their families. Under current law, all health plans are regulated under the Department of Insurance. This legislation would exempt this plan from all insurance laws and regulations without any oversight. The proposed bill explicitly authorizes a nonprofit agricultural organization to provide such benefits while maintaining that they are not in the business of health insurance.
BCA Concerns: BCA has concerns that because this product would be unregulated, healthy individuals could be pulled from employer-sponsored health plans, potentially driving up premiums.
Bill: SB93
Sponsor: Sen. Andrew Jones
BCA Position: Opposed as Introduced*
Status: Pending action in Senate Banking and Insurance Committee
Additional Information: This bill would prohibit pharmacy benefit managers from reimbursing a pharmacy less than the actual acquisition cost paid by the pharmacy and would prohibit pharmacy benefits managers from charging pharmacies or pharmacists miscellaneous fees related to network participation and claims processing.
Bill: SB99
Sponsor: Sen. Larry Stutts
BCA Position: Opposed as Introduced*
Status: Pending action in Senate Banking and Insurance Committee
Additional Information: This bill would expand oversight by the Department of Insurance by setting benchmarks for the amounts that pharmacy benefits managers reimburse pharmacies, and by regulating how they process claims, determine payment amounts, and use manufacturer rebates.
Bill: SB187/HB317
Sponsor: Sen. Clyde Chambliss/Rep. Chris Sells
BCA Position: Monitor
Status: Amended and reported out of Senate Children and Youth Health Committee/pending action in House Children and Senior Advocacy Committee
Additional Information: This bill would require app store providers to verify user ages, link minor accounts to parent accounts with consent, and notify users of significant app changes. It would mandate protection of age verification data and prevent enforcing contracts with minors or sharing personal data. Developers would be required to verify ages, notify users of app changes, and comply with age data regulations. The Attorney General would adopt rules and could take action for violations as deceptive trade practices.
Bill: HB283
Sponsor: Rep. Mike Shaw
BCA Position: Monitor
Status: Pending action is House Commerce and Small Business Committee
Additional Information: This bill would allow consumers to confirm, correct, delete, or obtain a copy of their personal data and opt out of its processing. It would require controllers to provide a secure method for consumers to exercise their rights and establish an appeals process. Consumers could designate an authorized agent to act on their behalf. The bill would also regulate how controllers process personal and deidentified data.
Bill: HB291
Sponsor: Rep. Neil Rafferty
BCA Position: Opposed
Status: Pending action in House Committee on Commerce and Small Business
Additional Information: This bill would repeal the Alabama Uniform Minimum Wage and Right-to-Work Act.
Bill: SB228/HB418
Sponsor: Sen. Andrew Jones/Rep. Jamie Kiel
BCA Position: Opposed
Status: Pending action in Senate Banking and Insurance Committee; pending action in House Financial Services Committee
Additional Information: This bill would create a new private right of action that individuals and corporations can use to claim discrimination on a wide variety of subjective ideological grounds. The bill represents a significant government encroachment into how certain financial institutions, insurers, credit card companies, and payment processors assess risk and make business decisions, determinations that are already subject to numerous federal laws and regulations. Importantly, even if the Alabama Banking Department or Alabama Insurance Department investigates a discrimination complaint and finds no violation, this bill still would give a complainant the ability to seek and recover treble damages, attorneys’ fees, and injunctive relief in civil court.
* BCA has concerns with these bills as introduced, as they would lead to increased costs for employers and their employees.
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