Alabama Retail Report | Alabama Retail Association

The legislature was back in action this week. Several bills tracked by the Alabama Retail Association advanced out of committee and house of origin. Catch up on the latest happenings below.

The Senate Approves Portable Benefits Program for Independent Contractors
Sponsored by Sen. Arthur Orr, R-Decatur, SB86 aims to facilitate the provision of health insurance and retirement benefits to independent contractors. Unlike traditional retirement or health care benefits, portable benefits are not tied to a specific job. Instead, they are attached to workers who may work for multiple businesses as contract employees.

We want to thank Sen. Orr for amending the bill to ensure companies who contribute to independent benefit plans are not exposed to liability under the Alabama Workers’ Compensation Act.

Rep. Neil Rafferty, D-Birmingham, is sponsoring similar legislation in the House.

Bills to Streamline Licensing and Permitting Advance with Amendment and Substitution
Sen. Chris Elliott’s, R-Josephine, legislation to streamline licensing and permitting received a favorable report from the Senate County and Municipal Government Committee this week.

The committee held a public hearing for SB12 and SB29. In discussing the bills, Sen. Elliott referenced the Institute for Justice’s report, Barriers to Business, which outlines the complexities involved in starting various types of businesses in Birmingham.

An amendment was adopted to SB12 to exempt specified provisions of federal law or regulation. Additionally, a substitute for SB29 was offered by Sen. Elliott to require government entities to notify applicants of any deficiencies within 15 calendar days and includes an exception for public comment periods.

Bill to Remove Sales Tax on Menstrual, Baby Products, and Maternity Clothing Advances
Sen. Arthur Orr, R-Decatur, and Rep. Neil Rafferty, D-Birmingham, are sponsoring bills to eliminate the state’s sales tax on menstrual hygiene products, baby formula, maternity clothing, and certain baby care items.

SB159 was approved unanimously on Wednesday by the Senate Education Budget Committee. A similar bill nearly passed in the previous legislative session.

Update on Pharmacy-Related Bills
A bill introduced to provide for the continuance of the Board of Pharmacy and to revise the board’s composition and functions was carried over by the House Boards, Agencies and Commissions committee this week. HB123, sponsored by Rep. Kerry (Bubba) Underwood, R-Tuscumbia, is scheduled to be reconsidered by the committee on Feb. 18.

HB79 sponsored by Rep. Chip Brown R-Mobile, to prohibit punitive action against pharmacists that recommend or dispense drugs for off-label use, passed the House Health Committee and House unanimously. The bill will move to the Senate for further consideration.

Rep. Phillip Rigsby, R-Huntsville, has introduced HB278 which would permit a physician, a physician assistant, or a nurse practitioner to give a pharmacist a standing order that has been approved by the State Board of Pharmacy to dispense Ivermectin to individuals without a prescription.

Legislation relating to pharmacy benefit managers, SB93 and SB99, is slated for a public hearing on Feb. 19, 2025, in the Senate Banking and Insurance Committee.

Wire Transfer Bill Carried Over in the Senate
A bill introduced by Sen. April Weaver, R-Alabaster, would impose a fee on outgoing international wire transfers. SB77 would require money transfer businesses to collect a fee of $7.50, along with an additional charge of 1.5% on amounts exceeding $500. The proceeds would go to a newly established Sheriffs’ Immigration Enforcement and Detainer Fund. Taxpayers would get a tax credit against income taxes in the amount of all international electronic wire transfer fees paid by the customer. However, the Senate carried over the bill because any legislation that raises revenue must originate in the House of Representatives.

2A Sales Tax Holiday Introduced
HB277 introduced by Rep. Ernie Yarbrough, R-Trinity, proposes the establishment of a 2A Sales Tax Holiday. This holiday would take place annually from Memorial Day to the Fourth of July. During this period, the gross proceeds from the sale of ammunition, firearms, and hunting supplies would be exempt from state sales and use tax.

Legislation to Regulate Data Privacy Introduced
HB283 by Representative Mike Shaw, R-Vestavia Hills, 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.

Data controllers are defined as “an individual or legal entity that, alone or jointly with others, determines the purposes and means of processing personal data.” It requires them to establish secure methods for consumers to exercise the rights established in the bill and to set up an appeals process. Consumers can also designate authorized agents to act on their behalf.

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. The bill also specifies that the Attorney General has exclusive authority to enforce its provisions, with a process for issuing notices of violation and allowing controllers time to correct violations before legal action is taken.