One final day remains in the 2025 legislative session as Senate action in the twelfth week alternated between extremely productive and agonizingly slow. On Tuesday, two bills making changes to real estate license laws received final passage as both chambers moved quickly through their calendars, but, by Wednesday, the Senate crawled to a near stop over a bill restructuring the Alabama Department of Archives and History board and a local measure dealing with gambling in Greene County.

Continue reading for highlights from the week including cell phone bans in schools, energy infrastructure bills, and more.

Noted earlier this year as AAR's Real Estate Bill 2 (see here), HB 382 passed the Senate unanimously last week and heads to the governor for her review and signature. Carried by Sen. Josh Carnley (R-Enterprise), the bill makes changes to real estate license law on some key issues affecting the industry and the commission. 

The bill does the following:

1. RECAD/Dual Agency Changes: In line with many other states, the bill changes the definition of a dual agent, limiting it to when one agent represents both sides of a transaction and not when two independent agents in one company represent opposite sides. Real estate agents are predominantly independent contractors, and the change will ensure that each agent owes the full fiduciary duties exclusively to their respective client, rather than the more limited responsibilities of dual agency. The bill also tweaks the definition of “agency agreement” to reflect the designation by the qualifying broker. 
2. Reasonable Regulation for Teams: Recent years have seen more widespread use of real estate teams or groups, in which real estate agents work together under a specific name that is a sub-group within a real estate company. The bill sets a basic definition for teams, creates reasonable rules on advertising, and clarifies broker responsibilities for teams to promote transparency to consumers and ensure professionalism by the team or group. The bill expressly prohibits additional licensing or registration by teams or team members.
3. Sets Parameters for Co-Brokerage Agreements with Out-of-State Brokers: Adds specific requirements and limitations on out-of-state co-brokerage agreements for Alabama transactions, including setting the max number at three transactions per year, with a portfolio of properties equaling one transaction, a $50,000,000 maximum in transaction volume per year, and requiring the Alabama broker to supervise the actions of the out-of-state broker.
4. Use of Branch Offices: Current law has an antiquated prohibition on real estate agents using any branch office to meet clients other than the physical office where their license is held. The bill lifts that prohibition to allow agents to use any office of their brokerage.   
5. Failed Payments to AREC - Bad Checks/Incorrect E-payment Numbers: The bill allows failed payments to be handled administratively rather than requiring a full hearing by AREC. With the extensive use of electronic payments for license fees and other charges, licensees who inadvertently input the wrong account or routing numbers find themselves in violation of current law and subject to a hearing before the full Alabama Real Estate Commission. The bill will keep these administrative oversights from requiring a full hearing. 
6. Increases the Maximum Fine from $2,500 to $5,000: Current law has set the maximum amount a licensee can be fined at $2,500 per violation. Through the years, the maximum fine has become less of a deterrent for bad conduct and license law violations. The bill increases maximum fines imposed by the Alabama Real Estate Commission from $2,500 to $5,000.  

Alabama REALTORS® sincerely appreciates the efforts of Sen. Josh Carnley and Rep. Jamie Kiel (R-Russellville) for carrying the bill, Senate Pres. Pro Tem. Garlan Gudger (R-Cullman) and Sen. Jabo Waggoner (R-Vestavia Hills) for placing the bill on the Senate calendar, and all the senators voting unanimously in favor of the bill. When signed by the governor, the legislation will take effect October 1, 2025. 

A third real estate bill, HB 225 sponsored by the Alabama Real Estate Commission, also received final passage last week. Carried by Sen. Josh Carnley, the bill passed unanimously after Alabama REALTORS®, the bill sponsors and, AREC reached a compromise agreement on its provisions. AAR's government affairs team work to pass HB 225 following the compromise agreement. 

As passed, HB 225 makes changes to real estate education and licensure requirements focusing on four broad categories:  

1. Enhanced Licensure Requirements: The bill increases the requirements to obtain a real estate salesperson (i.e. agent), broker, and qualifying broker license. The increased requirements are mainly a higher number of hours necessary to obtain each license, and increasing the years a person must be in the business before being able to fill the supervisory role of qualifying broker. The bill also requires a licensee on inactive status (i.e. not working as a licensee) to retake certain courses if inactive for a long period of time to ensure they remain up-to-date on legal requirements.
2. Education Updates: The bill updates definitions; allows for greater delivery of online education and one hour CE to increase education accessibility; inserts accountability measures for pre-license schools if their students fail taking license examinations; codifies continuing education for instructors; codifies a renewal and inactive process for educators and schools; and creates a process for the commission to approve distance education for pre-license and continuing education; and increases the fine for license law violations by schools, administrators and instructors from $2,500 to $5,000.
3. Operational Clarifications: The bill updates the code in several areas to make it easier for licensees to do business, such as updating the process for a company to have a temporary qualifying broker when the permanent qualifying broker is unable to perform his or her duties.
4. Streamlines Statutory Language and Processes: Because real estate license laws are extremely confusing and often overlap, the bill updates definitions, deletes redundant language, and moves language between sections to improve readability and flow.

The bill awaits review and signature by the governor. If signed as expected, the bill will be effective October 2028. 

SB 233, sponsored by Sen. David Sessions (R-Grand Bay), passed the House and is headed to the governor. The bill will add two consumer members to the Ad Valorem Advisory Committee, a committee established several years ago and comprised of local tax collecting officials and the Department of Revenue. While the committee is strictly advisory and has no authority, two consumer members will ensure taxpayer interests and concerns are represented in its work and recommendations.

SB 206, sponsored by Sen. Josh Carnley (R-Enterprise), received final passage by the House last week. The bill seeks to protect veterans from being defrauded by businesses and individuals that assist them in applying for disability benefits. The legislation requires benefit providers to be accredited by the U.S. Dept. of Veterans Affairs and give specific disclosures about provided services, mandates that terms be outlined in a written agreement, and prohibits referrals and guaranteeing the receipt of benefits.

A bill criminalizing mail theft received final passage. SB 108, sponsored by Sen. April Weaver (R-Brierfield), makes stealing mail a Class A misdemeanor, but also includes stepped up penalties based on the number of addresses from which the thief steals mail and whether the person is trying to obtain personally identifiable information. 

The bill now heads to the governor for her consideration.

A bill creating a process for ownership of abandoned roads to revert back to the original owner passed the Legislature last week. SB 42, by Sen. Tim Melson (R-Florence), allows the original owner to apply to the state, county, or city for the return of the right-of-way. A provision requested by Alabama REALTORS® was included in the final bill to protect property owners who could not otherwise access their property if the roadway is closed. 

The bill has been sent to the governor for her review. 

Tax Cuts Pass – Several bills providing various tax cuts for individuals, families, business owners, and others passed last week. Quickly signed into law by Gov. Kay Ivey, HB. 386 cuts the state sales tax on groceries to 2%, which is now half of the original 4% levy . Another measure, HB 152, removes the state’s 4% sales tax on maternity, baby care, and feminine hygiene products. Lawmakers also awarded final approval to legislation that raises the state tax exemption on business personal property, which is targeted to benefit small business owners across Alabama.

Juneteenth Official State Holiday -  A bill codifying June 19^th as a state holiday received final passage and was signed by the governor. Declared a holiday by Governor Kay Ivey by executive order for several years, HB 165 codifies the holiday into state law. Unlike previous proposals, it does not remove or replace already existing state holiday.

Cell Phone Ban in Classrooms – The legislature passed a bill banning 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.

Hemp Regulation Bill – The legislature passed a bill regulating hemp and CBD products, such as edibles, drinks, and vapes containing Delta 8, Delta 9, and Delta 10. HB 445 allows the state to tax, regulate, and restrict the sale of these products, placing oversight responsibility with the Alabama Alcoholic Beverage and Control Board. The bill went to the governor for her review.

The legislature will adjourn Sine Die — a latin phrase meaning “Without Day” — tomorrow, May 14. The House and Senate will reconvene for their final day at 1 p.m. and 2 p.m. respectively. Several of the bills in the governor’s “Back the Blue” law enforcement agenda remain unpassed, including a bill providing legal immunity for officers who act in accordance with department guidelines while on duty.