2026 Alabama Legislative Update: Regular Session - Week Five

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Alabama Affordability Protection Plan

This week saw significant movement on several major components of the Alabama Affordability Protection Plan, with lawmakers in both chambers focusing heavily on the growing impact of large‑load data centers on the state’s energy system. As data‑center development accelerates nationwide, driven largely by artificial intelligence and expanded cloud‑computing needs, legislators said Alabama must put clear guardrails in place to protect ratepayers and preserve long‑term affordability.

Data Center Incentive Reform 

The companion incentive‑reform bills moved forward again this week, with the Senate Fiscal Responsibility and Economic Development Committee advancing Senator Andrew Jones’ version. Representative Leigh Hulsey’s House companion also received a favorable report in committee on Wednesday. The legislation reduces the maximum abatement period for datacenter projects and requires the largest facilities to begin paying state sales and use taxes on designated purchases after the data center is placed in service. Lawmakers reiterated that the goal is to bring Alabama’s incentive structure in line with contemporary economic development standards and to ensure that the rules governing long‑term projects are consistent and predictable for both the state and industry.

Several members also noted that technology infrastructure is evolving quickly, and that many next‑generation datacenter projects are being designed around more efficient power‑usage models. Supporters argued that aligning incentives with current industry practices positions Alabama to compete for projects that generate long‑term economic value while minimizing grid strain. The updated incentive framework is being described as a way to provide clarity and stability for future investment decisions.

Data Center Cost Allocation

The data center cost allocation bills, sponsored by Representative Neil Rafferty in the House and Senator Lance Bell in the Senate, also saw movement this week. The most notable feature of these bills is a requirement that any grid or infrastructure upgrades needed to serve a major datacenter facility must be funded by the project developer rather than by existing utility customers. Lawmakers stressed that clear cost allocation rules protect ratepayers while giving project developers certainty upfront about how energy related expenses will be handled.

Members pointed out that clarifying these allocation standards benefits both sides: families and small businesses avoid footing the bill for large private facilities, and project developers gain a more transparent regulatory environment with fewer last‑minute surprises in the planning process. Some legislators also acknowledged the broader economic benefits associated with datacenter development, particularly construction activity and long‑term technology sector diversification, while emphasizing that these advantages need to be paired with responsible cost controls.

Public Service Commission Legislation

The legislation, sponsored by Senator Bobby Singleton and Representative Chip Brown, restructuring the Public Service Commission would shift the three‑member body from statewide elections to an appointment process and add new qualification, confirmation, and public‑hearing requirements. The goal of this legislation is to modernize a structure that has changed little in more than a century despite growing demands on the state’s utility system.

The PSC bills took different paths this week. In the House, the house version of the legislation moved out of committee earlier before being temporarily pulled from the floor calendar as members continued to review the legislation. Lawmakers argued that updated experience standards and a more stable appointment structure could help ensure that commissioners are focused on rate stability, and not political cycles.

The Senate did not take up its companion bill this week. Senators indicated they wanted to move the data center bills first, but acknowledged that the PSC piece remains central to the broader conversation. 

While the House and Senate are moving on different timelines, the PSC restructuring proposal remains in circulation. Lawmakers noted that continued industrial growth and increasing pressure on the grid underscore the need for long‑range planning and a commission equipped to manage that work with steadiness and transparency. Supporters said most states already rely on an appointment model and argued that placing qualified commissioners in these roles, rather than candidates navigating election‑year politics, could provide more consistent oversight. As the session continues, the PSC bill remains a central part of broader discussions about rate stability and the state’s long‑term utility framework.

Dark Money 

This week, the Senate Committee on Fiscal Responsibility and Economic Development gave a favorable report to legislation, sponsored by Senator Arthur Orr, closing a nonprofit loophole in Alabama’s campaign finance laws. Senator Orr said the bill is meant to bring nonprofit political spending under the same transparency expectations applied to other political committees. He noted that the measure does not prohibit contributions, but simply requires disclosure. “(Contributions) would be allowed — we just need to know who is giving the money, and that’s what this bill does,” Orr said. “It doesn’t prevent it; it just says, who are the donors? The public has the right to know.”

Under the proposal, nonprofits spending above established thresholds on election‑related communications would be required to report their contributors, bringing them under the same disclosure rules as PACs. The bill now moves to the full Senate for consideration.

Library Boards 

This week, the Senate passed legislation, sponsored by Senator Chris Elliott, allowing city and county governments to remove members of local library boards by a two‑thirds vote. The bill updates current law, which provides no mechanism to remove board members before their terms expire. Supporters said the change simply brings library boards in line with other appointed bodies, allowing local officials to reclaim oversight when needed. 

The debate on the Senate floor lasted more than an hour, with opponents of the legislation expressing concern that library board members could be removed without cause. Senator Elliott countered that library board positions are volunteer roles and that removal authority should rest with the elected bodies that appoint them. The bill now moves to the House for consideration. 

Gambling 

Two House Democrats have renewed efforts to advance lottery and gambling legislation as the session approaches its halfway point. This week, Representative Phillip Ensler introduced the “Clean Lottery Act,” a lottery‑only constitutional amendment that would give voters their first opportunity in nearly three decades to decide the issue. Ensler said the proposal would allow Alabama to recoup money currently spent in neighboring states and direct new revenue toward public education, rural health care, and rebate checks for Alabamians.  Last week, Ensler previewed the bill at a press conference, calling it a straightforward option after broader gambling packages stalled in previous sessions. He argued that separating the lottery from larger gaming expansions may give the measure a better chance of advancing this year. 

In addition to Ensler’s bill, Representative Kelvin Lawrence is sponsoring legislation to authorize pari‑mutuel betting and historical racing in six counties. In the Senate, a more expansive gambling proposal was recently filed by Senator Merika Coleman that would allow citizens to vote on allowing casinos, sports wagering, and a gaming compact. These pieces of legislation are not expected to move in the near future. 

Trey’s Law

This week, the legislature passed Trey’s Law, a law that would prohibit the usage of nondisclosure agreements (NDAs) in civil settlements in cases of sexual abuse or human trafficking. This legislation, sponsored by Representative David Faulkner and Senator Matto Woods, is part of a national effort to ban these NDAs. This legislation comes in response to Trey Carlock, a Texas native, who was sexually abused at a boys' camp in Missouri and subsequently forced into signing a restrictive NDA. The traumatizing process led to Trey eventually taking his own life in his late twenties. This legislation is expected to pass and be sent to the Governor for her signature in the coming weeks.

Breast Cancer Screening Coverage Bill

This week, the Senate approved legislation requiring all health benefit plans in Alabama to cover breast cancer screenings for women age 40 and older. The bill, sponsored by Senator Linda Coleman‑Madison and Frances Holk-Jones, aligns state coverage requirements with federal standards and seeks to ensure that women have access to regular mammograms without additional financial barriers. 

Supporters said the measure reflects current best practice guidance and aims to promote early detection by making screening more accessible across insurers. The bill now moves to the House for further consideration.

Status of the Legislature

The legislature used two working days this week, bringing its current total to twelve of its allotted 30 legislative working days. 

As of February 13, 454 bills have been filed in the House, and 308 bills have been filed in the Senate.

The House will reconvene on Tuesday, February 17, at 1:00 PM, and the Senate will reconvene on the same day at 3:00 PM. Upon return, the legislature is expected to use three working days.