The 2025 legislative session is officially more than two-thirds complete. After three legislative days were used last week, only nine days remain. New bill filings continue to trickle in, albeit at a slower pace as the session draws near its end. Almost 900 bills have been filed so far – 566 in the House and 325 in the Senate. Two REALTOR®-supported bills progressed last week with legislation combatting squatters receiving approval from a House committee and a business license reform measure passing the Senate. Continue reading for more information on these bills and highlights from the week!

Remember that HB 230, which was signed into law by Gov. Kay Ivey a month ago, goes into effect this Friday, April 18. In general, the law reaffirms Alabama's existing Real Estate Consumers Agency and Disclosure Act (RECAD) framework, emphasizes early discussions of brokerage services and compensation, and protects consumers from premature binding contracts. 

It also clarifies that consumers in Alabama cannot be required to sign a binding contract simply to view a property, but the bill does not require an agent to show a property to a buyer without an agreement. Under its provisions a written buyer agreement will be required before an offer to purchase is submitted, which ensures clear terms of representation. This balanced approach urged by AAR aims to provide greater transparency and consistency for both real estate professionals and consumers.

You can find more resources on the bill and practice changes on our HB 230 webpage here.  

The Alabama Senate passed a REALTOR®-priority bill last week that would require local governments to report business license schedules to the Alabama Department of Revenue, providing a one-stop-shop for owners to determine how much cumulative tax they owe. In an effort to ease costs for license taxes charged, SB 174 would also allow taxpayers to appeal business license charges to the Alabama Tax Tribunal in Montgomery.

Another provision of the bill would cut down on mass letters from third party collection firms. SB 174 creates a cause of action against firms for sending collection letters when they knew or should have known the charges are not lawfully due. It also requires that any letter sent to businesses must be accompanied by an official letter from the local government explaining that the collection firm is working on their behalf. An agreed-upon amendment added on the Senate floor expands the notices related to the collection firms.

Sponsored by Sen. Clyde Chambliss (R-Prattville), the bill now moves to the House where it will be carried by Rep. Paul Lee (R-Dothan).

The REALTOR®-supported bill to update and broaden last year’s law on squatters passed out of a House committee last week. In 2024, AAR advocated for a new law that allows property owners to fill out an affidavit when a squatter occupies a home rather than being forced to engage in a lengthy and costly court case.

HB 474 strengthens the 2024 law by setting a timeline for removal by law enforcement, clarifying that municipal law enforcement has jurisdiction within city limits, expanding the process to include any building and real property, prohibiting law enforcement from turning away a property owner with a completed affidavit, and requiring law enforcement agencies to have a clear process for handling squatter removal affidavits, among other things.   

SB 206, which is sponsored by Sen. Josh Carnley (R-Enterprise), was passed by the Senate last week and seeks to protect veterans from being defrauded by businesses and individuals that assist them in applying for disability benefits. The legislation requires specific disclosures about provided services, mandates that terms be outlined in a written agreement, prohibits referrals, and guarantees the receipt of benefits.

• K-12 Cell Phone Ban – Both chambers have passed companion bills to ban students from having cell phones and electronic devices in schools during instructional hours. Called the FOCUS Act, the bills are meant to decrease classroom distractions but has exceptions for medical reasons, special needs, and educational uses.
• Education Budget and Revamped Funding Formula Advances – After the House advanced the General Fund budget and related bills two weeks ago, the Senate returned the favor and passed the almost $10 billion Education Trust Fund budget last week. Accompanying the budget is a bill that would revamp the per student allocation formula and allow schools to receive additional funding when teaching students with special education needs.
• Pharmacy Reimbursement Bill Passes – Pharmacy Benefit Managers, or PBMs, may soon have additional requirements when negotiating drug prices with independent pharmacies. Sent to Gov. Ivey last week for her signature, SB 252 will require reimbursement of independent pharmacies for drugs at a an amount equal or above what is paid by the Alabama Medicaid Agency, which includes a $10.64 dispensing fee. The bill was touted as a way to save independent and rural pharmacies from going out of business.

The House and Senate reconvened today at 1 p.m. and 2 p.m. respectively. Both budgets have been transmitted and await consideration by the second chamber. The Senate has addressed all of its sunset bills, which determine if certain boards, commissions, and agencies may continue operations or will be abolished, but a number of confirmations of appointments to various public posts remain.