The past week was a busy one in the Alabama Legislature as both the House and Senate approved state spending plans for Fiscal Year 2027, and high-profile legislation, including bills being championed by the Alabama Association of REALTORS®, commanded lawmakers’ attention.

Today is the 23rd day of the 30-day regular session, and legislators are meeting in their chambers for two days this week before leaving for their traditional Spring Break recess from March 23 to 27. Legislative leaders are still targeting a final adjournment date sometime around April 8.

Only seven days remain in the session, and the fastest a bill can pass through the legislative process is five days, so we will see a flurry of activity this week as legislators try to push their bills along while the window for success narrows.

Both chambers focused much of their efforts on passing budgets last week, with the Senate approving the General Fund (GF) budget for non-education state agencies on Wednesday and the House passing an Education Trust Fund (ETF) budget for K-12 public schools, community colleges, and public universities on Thursday.

The proposed $3.72 billion General Fund budget for Fiscal Year 2027 is a mere 0.2% higher than the previous year and essentially provides level funding to most state agencies. State employees are slated to receive a 2% cost-of-living pay raise.

The $10.4 billion Education Trust Fund version approved by the House, which is roughly $570 million, or 5.7%, higher than the FY2026 spending plan, also includes a 2% cost-of-living pay raise for teachers, administrators, and support personnel.

The CHOOSE Act, Alabama’s new and expanding school choice program, will receive a 38% increase rising from $180 million to $251.2 million as participation in the program expands to include more students.

Public colleges and universities would receive $107 million, or 5.8%, increase, taking them to $1.8 billion overall.

The Legislature will assume the operational costs and monthly purchase payments on the new Alabama State House which was built and funded by the Retirement Systems of Alabama and is scheduled to open for business in the next few months. The ETF and GF budgets will each contribute $10 million to the $20 million annual costs of the building.

Passage of balanced state budgets is the only task that the Alabama Constitution mandates the Legislature must complete each year.

Both budgets now travel to the other chamber for review, amendment, and passage.

The Senate County and Municipal Government Committee approved on Wednesday a REALTOR®-priority bill sponsored by State Sen. Arthur Orr (R - Decatur) and designed to protect Alabamians from property title fraud.

Senate Bill 292 updates Alabama’s property title and real estate transaction systems by modernizing them to better address 21st-century criminal threats and safeguarding the public from them.

Orr told the committee members that scammers often file and record forged deeds and fraudulent documents with probate judges to essentially “steal” real estate from owners without their knowledge.

Under its provisions, the bill creates new criminal penalties related to fraudulent property transfers, establishes an Alabama Title Fraud Recovery Fund for victims, and establishes an expedited court process to restore ownership of property obtained through fraud.

Orr’s legislation reclassifies the existing crime of “fraudulent sale of real property” to a Class D felony, which is punishable by one to five years in prison and a fine of up to $7,500, and establishes the crime of “aggravated sale of real property” and classifies it as a Class C felony punishable by one to 10 years in prison and a fine of up to $15,000.

Probate judges are authorized to set up systems under the legislation that automatically notify property owners when conveyances containing their names or addresses of property they own are filed with the judges’ offices.

Other safeguards, including best practices for REALTORS®, notaries, and others, are included in the bill.

A recent study found that known cases of title fraud were more common in urban and suburban areas compared to small towns, and unoccupied properties or mortgage-free properties are the most commonly targeted by property title fraudsters.

Orr’s bill now proceeds to the full Senate for consideration.

The Alabama Legislature gave final passage on Wednesday to a bill sponsored by Sen. Gerald Allen (R - Cottondale) that allows the Alabama Emergency Management Agency (EMA) to use its funds for promotional campaigns and educational materials that better inform the public about how to prepare for natural disasters and other emergencies.

Current state law limits the EMA to spending its funding only on emergency response and preparedness activities.

The EMA pushed for the change in order to increase awareness about communication plans, go-kits, and preparedness seminars, which can help homeowners be ready when they are facing an emergency.
 
The bill now proceeds to Gov. Kay Ivey for signature.

The Alabama Senate awarded final passage on Tuesday to legislation by State Rep. Kenneth Paschal (R-Pelham) that allows veterans with full disabilities to exempt ad valorem taxes from debt-to-income ratios when purchasing a home.

Veterans with 100% permanent disabilities are currently provided with a full exemption from property taxes on their homes, and this legislation allows them to claim the exemption when a home is under contract but before they have taken ownership.

Allowing the preliminary application ensures that potential ad valorem taxes due will not be included in debt-to-income ratio calculations when applying for a loan or home mortgage.

Paschal, who serves as vice chair of the House Military & Veterans Affairs Committee, praised his colleague, Rep. Jennifer Fidler (R - Silverhill), who approached him about the issue on behalf of a constituent and worked with Paschal to pass the legislation.

The bill has been sent to Gov. Kay Ivey for signature.