2026 Alabama Legislative Update: Regular Session - Week Nine

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Public Service Commission 

The Alabama Senate on Thursday unanimously passed its priority legislation to overhaul the Public Service Commission (PSC). The bill, sponsored by Senator Clyde Chambliss, would expand the PSC from three statewide elected members to seven commissioners elected from each congressional district, with Governor Kay Ivey appointing four members this summer to begin the transition. The proposal also creates a Governor‑appointed Secretary of Energy to manage administrative operations and set PSC agendas. 

The bill freezes electric rate increases until 2029 and bars utilities from passing lobbying or advertising expenses to customers. Supporters say the restructuring aims to increase accountability amid rising electricity costs. The legislation now moves to the House for consideration.

Closed Primaries

The House Ethics and Campaign Finance committee held a public hearing on legislation to close the state’s primary elections but ultimately did not vote on the bill. The bill, sponsored by Representative Ernie Yarbrough, would require voters to register with a political party in order to participate in that party’s primary beginning in 2027, with changes to party affiliation restricted during a 60‑day blackout period before an election. Supporters argue that the bill would prevent crossover voting and ensure nominees more accurately reflect party preferences, while opponents warn that the change would bar independent voters from participating in the electoral process. 

During Wednesday’s public hearing, critics noted that Alabama is one of just eight states without party registration and cautioned that the change would significantly narrow voter access. GOP officials, however, urged lawmakers to act, insisting the move is necessary to stop Democrats from influencing GOP primaries. The committee is expected to take up the bill again next week.

Budgets

This week, both chambers advanced budgets for the upcoming fiscal year. On Thursday, the House approved the $10.4 billion FY 2027 Education Trust Fund (ETF) budget. The ETF serves as Alabama’s primary mechanism for education‑related appropriations and will now move to the Senate.

Separately, the Senate passed the $3.7 billion General Fund budget for the upcoming fiscal year. The General Fund supports non‑education agencies. Like the ETF, the General Fund budget now awaits action in the opposite chamber as lawmakers work toward final passage.

Alabama Department of Corrections Reform

Legislative action on prison oversight shifted this week after Senator Larry Stutts announced a new agreement with the Alabama Department of Corrections (ADOC) to launch a pilot oversight program, delaying a planned committee vote on his reform bill. Under the arrangement, the Department of Examiners of Public Accounts will conduct direct oversight in three to four facilities over the next year, including the Julia Tutwiler Prison for Women and several men’s prisons. Stutts said the pilot incorporates core elements of his original legislation and will allow reforms to begin more quickly without waiting for full statutory changes.

The agreement follows testimony from formerly incarcerated individuals and family members who described persistent violence and unsafe conditions inside state prisons. Stutts’ bill would have created an oversight coordinator and a Corrections Oversight Board to monitor safety, staffing, and systemic problems within ADOC. Lawmakers may revisit broader legislation next session after evaluating the pilot’s results.

Data Privacy 

On Wednesday, the Senate County and Municipal Government Committee gave a favorable report to the Alabama Personal Data Protection Act, sponsored by Representative Mike Shaw, creating a statewide framework for consumer data privacy after amendments were added. Generally speaking, the bill grants individuals rights over their personal data. It also places new requirements on data controllers and processors. Representative Shaw has been a leading voice in the legislature on this topic and other technology-related issues this session. The bill now moves to the full Senate for consideration.

Data Center Abatement Reform Bill

Both chambers advanced amended versions of the data center abatement reform bills this week. The legislation, sponsored by Representative Leigh Hulsey and Senator Andrew Jones, would tighten the duration and qualifications of certain state-abated taxes. The changes apply only to future agreements, aiming to narrow state incentives while protecting existing commitments. The House and Senate versions have now swapped chambers and will continue to move through the legislative process in both.

Large‑Load Data Center PSC Review Bill

On Thursday, the Senate passed the Large‑Load Data Center PSC Review Bill, sponsored by Senator Lance Bell and Representative Neil Rafferty. The current version of the legislation would require the Public Service Commission to review and approve utility contracts serving datacenter loads of 150 megawatts or more. The legislation will move in the House in the near future.

Religious Released Time 

On Wednesday, the House Education Policy Committee gave a favorable report to a piece of parental rights and religious liberty legislation, sponsored by Senator Shay Shelnutt and Susan DuBose, that updates the existing Released Time Credit Act after adding a technical amendment. With the input of education groups, the bill adds definitions, spells out the responsibilities of the sponsoring entities that run these programs, and tightens language around how released-time activities are handled during the school day. It also specifies requirements for recordkeeping, background checks, and liability coverage by the sponsoring entities, along with existing limits on instructional time and the use of public funds. The legislation does not require any district to adopt a policy. The bill, which is strongly supported by Lt. Governor Will Ainsworth, now moves to the full House for consideration.

Status of the Legislature

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

As of March 6, 621 bills have been filed in the House, and 368 bills have been filed in the Senate.

The House will reconvene on Tuesday, March 17, at 1:00 PM, and the Senate will reconvene on the same day at 2:30 PM. Upon return, the legislature is expected to use two working days.