Retail Report | Alabama Retail Association

The countdown is on. Only 9 legislative meeting days remain in this session. Lawmakers have begun moving the budgets and other key legislation. Catch up on the latest below.

PBM Bill Awaits the Governor’s Signature
This week, the House approved SB252, a bill requiring pharmacy benefit managers (PBMs) to reimburse independent pharmacies the amount paid by the Alabama Medicaid Agency, which is a $10.64 dispensing fee per prescription, in addition to the acquisition cost of the drug. The bill was amended in committee to remove the private right of action against a PBM or its affiliates, as well as the two-year sunset provision. After its passage, the Senate quickly agreed to the changes made by the House, and the bill is now awaiting Governor Kay Ivey’s signature.

Various Bills to Address Illegal Immigration Receive Committee Consideration
State lawmakers have introduced many bills aimed at curbing illegal immigration during this legislative session. Several of these bills received public hearings and committee action this week.

Rep. Ben Robbins, R-Sylacauga, has introduced HB302 that establishes regulations for labor brokers and staffing agencies, requiring them to register with the Department of Workforce and comply with E-Verify protocols. The bill offers protection to business entities and employers who unknowingly hire employees who are not properly verified by labor brokers. The Senate Fiscal Responsibility and Economic Development Committee gave the bill a favorable report.

SB53, sponsored by Sen. Wes Kitchens, R-Arab, would require law enforcement to determine the citizenship status of individuals who are arrested and would criminalize the act of transporting an undocumented immigrant into the state. That bill received a public hearing, and no vote was taken by the House Judiciary Committee.

Rep. Jennifer Fiddler, R-Fairhope, has introduced HB297 to impose a 4% fee on international wire transfers originating from Alabama. This bill was initially assigned and approved by the House Ways and Means Education Committee but was re-referred to the Financial Services Committee for further consideration. The Committee provided an additional public hearing on Wednesday, but did not take a vote on the legislation.

Lawmakers Considers Tobacco and Nicotine Legislation
Rep. Barbara Drummond’s, D-Mobile, bill to expand the regulation of tobacco and electronic nicotine systems by the Alcoholic Beverage Control (ABC) Board was amended and approved by the House Judiciary Committee.

HB8 establishes new fees for the filing and permitting of the distribution of tobacco, tobacco products, electronic nicotine delivery systems, or alternative nicotine products. These fees include a one-time application filing fee of $50, an annual permit fee of $150, and a $50 transfer fee for a permitted location that is sold or transferred. Additionally, the bill increase penalties for violation of tobacco retail laws and require retailers of electronic delivery systems to display new signage warning of the dangers of vaping devices. The definition of “electronic nicotine delivery systems” is revised to include battery power devices that deliver substances other than tobacco through vapor inhalation. The bill is scheduled to be voted on by the full House next week

Following lengthy floor debate, HB357 sponsored by Rep. Rolanda Hollis, D- Birmingham, was approved. The legislation expands the definition of “cigarette” to include heated tobacco products. If enacted, a tax rate of $0.017 per single-use consumable unit will go into effect on October 1, 2025.

Update on Legislation to Regulate Hemp-Derived Products
As previously reported, several bills have been introduced this session to rein in enforcement of psychoactive cannabinoid products and beverages. HB445, sponsored by Rep. Andy Whitt R-Admore, was amended and passed by the House Health Committee and approved by the full House. The bill authorizes the Alabama Alcoholic Beverage Control Board to regulate all consumable hemp products, limits the amount of THC allowed, and prohibits the sale of any consumable hemp product to individuals under 21.

Two bills introduced last week, SB273, sponsored by Senator April Weaver, R-Alabaster, and SB274, sponsored by Sen. Dan Roberts, R-Birmingham, received committee consideration and approval this week. Sen. Weavers’ bill would classify all psychoactive hemp products as Schedule 1 drugs and would require CBD and non-psychoactive drugs to be sold in pharmacies. Sen. Roberts’ bill would prohibit any possession and sale of psychoactive cannabinoids.

Senator Tim Melson, R-Florence, has revived his previously rejected bill, SB237. After failing to garner enough support earlier in the session, Sen. Melson requested reconsideration of his bill, which aims to regulate consumable hemp products similarly to alcohol and tobacco. The bill would also ban smokable hemp products and restrict sales to individuals 21 and older.

Data Privacy Bill Receives Committee Vote
HB283 by Representative Mike Shaw, R-Vestavia Hills, was amended and passed by the House Commerce and Small Business Committee. The bill grants consumers several rights regarding their personal data, including the ability to confirm if their data is being processed, correct inaccuracies, delete their data, obtain a copy of their data, and opt out of data processing for targeted advertising, data sales and profiling.

The bill defines key terms such as personal data, sensitive data, biometric data, and deidentified data. Certain entities and types of data are exempt from the bill’s provisions, such as nonprofit organizations, higher education institutions and data regulated by specific federal laws such as HIPAA and the Fair Credit Reporting Act.

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