The Alabama Legislature’s 2026 regular session was active with lawmakers filing 1,046 bills, an 8% increase from 2025 (968 bills). Of those, 666 bills were filed in the House and 380 in the Senate. A total of 402 passed both chambers and were sent to Governor Ivey for signature into law. Another 158 bills passed out of one chamber but did not reach final passage.

Throughout the session, Capitol News and Notes primarily covered legislation impacting the real estate industry, but this recap highlights other major bills and key events from the past three months2026 Legislative Session

General Highlights

Surprise Public Service Commission Legislation Appears

A legislative session expected to be routine quickly shifted after surprise proposals to overhaul the Alabama Public Service Commission (PSC). An initial House bill, sponsored by Rep. Chip Brown (R - Hollinger’s Island), would have shifted the PSC from an elected body to one appointed by state leaders. The proposal drew strong public backlash over voting rights concerns and was quickly abandoned.

The Alabama Senate then introduced an alternative, the “Power To The People Act,” led by Sen. Clyde Chambliss (R - Prattville). This version expanded the PSC to seven members elected by congressional district, added new oversight tools like subpoena power and annual rate hearings, and temporarily banned utility rate increases. A compromise bill ultimately passed and was signed into law. To create staggered terms on the newly expanded PSC, Gov. Ivey will soon appoint four new commissioners, two serving two-year terms and two serving four-year terms, who will face election by voters in 2028 and 2030.

Behind The Scenes Caucus Intrigue

A separate set of controversies occurred within the Alabama House Republican Caucus. House Majority Leader Scott Stadthagen (R - Hartselle), announced his campaign for state GOP chairman. Some caucus members believed it was a conflict of interest between the two positions. Stadthagen resigned as Majority Leader. During internal caucus debate, a secretly recorded audio conversation was publicly released. Many members considered the recording a breach of trust of caucus rules and protocols.  The caucus elected Rep. Paul Lee (R - Dothan) as House Majority Leader. Stadthagen was subsequently elected state GOP chairman.

Weeks later, Rep. Arnold Mooney (R - Indian Springs) was escorted out of a closed-door caucus meeting and expelled as a caucus member following allegations that he took a photo during caucus debate with his iPhone. Mooney denied the allegations.

State Budgets Secure Passage

• Education Budget: Lawmakers awarded final approval to a record $10.5 billion Education Trust Fund (EFT) budget for Fiscal Year 2027 that allocates funding for the state’s K-12 public schools, community colleges, and four-year universities. Sponsored by House Ways and Means Education Chairman Danny Garrett (R - Trussville) and Senate Finance and Taxation Education Chairman Arthur Orr (R - Decatur), the ETF budget is roughly $570 million, or 5.7%, higher than the FY2026 spending plan, and it includes a 2% cost-of-living pay raise for public school teachers, support staff, and administrators, representing their first salary increase in three years. The CHOOSE Act, Alabama’s school choice program, will receive a 38% increase as participation expands. Its current $180 million appropriation will increase to $251.2 million when the new budget goes into effect on October 1.
• General Fund Budget: Senate Finance and Taxation General Fund Chairman Greg Albritton (R - Range) and House Ways and Means General Fund Chairman Rex Reynolds (R - Huntsville) secured final passage for a $3.74 billion budget for non-education state agencies, which grew by 1% over the previous fiscal year’s budget and reflects largely level spending across most areas. Like the ETF, the General Fund budget also includes a 2% cost-of-living pay raise for state employees.

Other Bills And Issues Of Note

A Measure Of Relief For Alabama Taxpayers

The Alabama Legislature gave final approval to legislation by Rep. James Lomax (R - Huntsville) that provides a full state income tax exemption for up to $1,000 of qualified overtime pay per taxpayer.  An amendment added by Rep. Mike Shaw (R - Hoover) creates a Grocery Tax Holiday period, which exempts groceries from state sales taxes from May 1 to June 30. The income tax reduction for overtime compensation will apply for tax years 2026 through 2028, while the grocery tax suspension will occur May 1, 2026 through June 30, 2026.

Emphasizing Career Tech Instruction In Public Education

Two bills passed this session are intended to enhance career tech education and workforce (CTE) development:

• HB517 by Rep. James Lomax (R - Huntsville) created the Talent Readiness and Industry Needs Act, known as the TRAIN Act, allowing businesses to collaborate with educational institutions to provide hands-on training opportunities for students.
• HB520 by Rep. Marcus Paramore (R - Troy) creates a faster pathway for experienced workers in high-skill industries, such as welding, cybersecurity, agriculture, and manufacturing, to receive teaching certificates in public schools and community colleges. Both bills are intended to address shortages in career tech educators and support workforce development needs across the state. Lawmakers also awarded $150 million in supplemental education funding for the expansion of CTE programs across the state.

Other Bills Of Note

• “Save Our Bay” Mobile Bay Mud Dumping Ban Signed by Governor Ivey
  HB181 by Rep. Rhett Marques (R – Enterprise) and Sen. Chris Elliott (R – Josephine), the “Save Our Bay” bill, received final passage and will prohibit the U.S. Army Corps of Engineers, or any other entity, from “mud dumping” in Mobile Bay. The bill also specifies that mud dumping may not be treated as a “beneficial use” of dredged sediment, aligning Alabama law with similar measures adopted in other coastal states.
• App Store Age Verification and Parental Approval for Minors
  HB161 by Rep. Chris Sells (R – Greenville) and Sen. Clyde Chambliss (R – Prattville) received final passage and will require app stores to verify users’ ages and link minors’ accounts to a parent or guardian for download approvals. The bill authorizes enforcement by the attorney general and allows civil actions for noncompliance. This will become effective January 1, 2027.
• Appointments Bill – Removal of Board and Commission Appointees
  HB220 by Speaker Pro Tem Chris Pringle (R – Mobile) and Speaker Nathaniel Ledbetter (R – Rainsville) received final passage and will grant the Governor, the Speaker of the House, and the President Pro Tempore of the Senate authority to remove and replace board and commission members they appoint.The legislation applies to any board, authority, or commission comprised of individual members, of which some or all members are appointed, as established under state law and specifies that all appointees “serve at the pleasure” of their appointing authority. This will become effective October 1, 2026.

Alabama REALTORS® Efforts

Out of the 1,046 bills filed this session, AAR’s Public Policy Team tracked 250, which was approximately 25% of the total bills filed, along with numerous amendments. Among those tracked bills, AAR supported 25 and opposed 29, while also securing five REALTOR®- or business-friendly amendments. Of the 25 bills AAR supported, 10 were successfully passed into law.

Real Estate Bills

Alabama Property Protection Act Of 2026

Among AAR’s highlights of the session was passage of SB292, the Alabama Property Protection Act of 2026, which was sponsored by Sen. Arthur Orr (R - Decatur) and Rep. Paul Lee (R - Dothan) and combats scammers who falsely represent themselves as property owners and list, sell, or encumber real estate they do not own while the actual owners often remain unaware of the actions. Passed on the final day of the 2026 regular session, Governor Ivey signed the bill into law as Act Number 2026-536. 

The Alabama Property Protection Act of 2026 was supported by the Alabama Bankers Association, Southeast Land Title Association, Alabama Land Title Association, and Alabama REALTORS®.

The law:

• Requires identity verification in transactions
• Establishes a statewide property alert system
• Creates a consumer complaint and recovery process
• Enhances criminal penalties
• Provides a fast-track process to restore ownership and quiet title. 

Condominium Governance: Consents & Waivers, Arbitration & Mediation

SB121 by Sen. Arthur Orr (R - Decatur)  would have made significant changes to Alabama’s condominium law, including prohibiting the use of consents, waivers, and powers of attorney to obtain unit-owner authorization to amend a condominium declaration, expanding an condominium association’s ability to intervene in arbitration and mediation, and broadening the remedies courts may apply in declaration disputes. 

The legislation went against the Alabama Supreme Court’s recent interpretation of the Alabama Condominium Act. The primary concern is allowing courts to rewrite development documents and destabilize developments and communities, undermining existing developments and deterring future developments across the state.  AAR worked with stakeholders to oppose this legislation.

Competing Wholesaling Bills Fail to Pass

Three separate bills to address wholesaling failed to pass amid significant confusion among legislators, members, licensees, and stakeholders.

Early in the session, Sen. Arthur Orr (R - Decatur) filed SB246 to address wholesaling, and the legislation was supported by AAR. Rep. Rolanda Hollis (D - Birmingham) also filed HB 315 to address wholesaling. That legislation was supported by the Alabama Real Estate Commission (AREC). The two bills took different approaches to addressing issues surrounding wholesaling. Following discussions between AAR and AREC’s leadership, AREC indicated it would not further advance wholesaling legislation in 2026. AAR also slowed progress on SB246 to allow additional time to work through concerns about potential unintended consequences. Both bills were effectively dead for the year.

Later in the session, Rep. Margi Wilcox (R - Mobile) combined SB246 and HB315 into a new bill and filed HB586. The resulting bill raised concerns due to drafting issues and potential unintended consequences for property owners, consumers, investors, builders, and real estate professionals. Differences in perspective emerged among stakeholders regarding HB586’s development and support, and confusion surrounding the bill contributed to mixed messaging among legislators and members.

HB586 passed the House but did not pass the Senate. AAR did not support HB586 as drafted. While AAR has been supportive of efforts to address wholesaling, HB586 included several provisions that warranted additional review and could not be fully resolved in the final days of the session. Further work on these issues is expected during the offseason.

Property Management/ Landlord Tenant Legislation

• Special Reserve Deputies: The Alabama Senate awarded final passage to legislation by Rep. Allen Treadaway (R - Morris) that creates a program for “special reserve deputies” to address a backlog of unexecuted writs. The law allows the Jefferson County sheriff to appoint certified, non-employee deputies to assist with seizing and securing real property during declared "emergency writ conditions.

• Notice and Liability Protections Related to Abandoned Property After Eviction: HB80 by Rep. Mack Butler (R – Rainbow City), also passed the House but died in the Senate. While current Alabama law does not require notice to tenants regarding personal property left behind after an eviction, this bill would require the district court to include notice that any abandoned property may be disposed of by the landlord and that the landlord has no obligation to preserve the property once it is removed. The legislation also provides civil immunity for landlords and officers for damage to a tenant’s personal property during execution of a writ of possession.

Storm and Severe Weather Preparation Effective October 1, 2026

• Catastrophic Savings Accounts: HB27 by Rep. Chip Brown (R - Hollinger’s Island) expands the list of expenses that can be covered using catastrophe savings accounts.Under current Alabama law, catastrophe savings accounts may be used to cover insurance deductibles and uninsured damage resulting from windstorm events.Brown’s bill extends the “qualified catastrophic expenses” to include measures that proactively fortify a property against damage from hurricanes, floodwaters, and other windstorm event damage, but those expenses are capped at $15,000.
• Preparing Homeowners For Emergencies: SB8 by Sen. Gerald Allen (R - Cottondale) received final passage and will allow 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. 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.

Veterans’ Homeownership Measures Signed by Governor Ivey

• Disabled Veterans Homestead Exemptions: HB155, by  Rep. Paul Lee (R - Dothan), removes the current requirement for permanently and totally disabled military veterans to reverify their disabled status each year to receive a full ad valorem tax exemption on their primary homes. Under the provisions of the bill, once a veteran has established their permanent disability, the property tax homestead exemption becomes permanent without need for renewal.
• Home Purchases For Disabled Veterans: HB77 by Rep. Kenneth Paschal (R - Pelham) received final passage and 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 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.

Homestead Exemption Bills

• Increase Homestead Exemption for Seniors and Disabled: Gov. Ivey signed into law a REALTOR®-supported bill by House Speaker Pro Tem Chris Pringle (R - Mobile) that increases the homestead exemption from $15,000 to $56,400 for seniors older than 62 and individuals with disabilities if they are involved in bankruptcy or debt collection cases. The new law also makes other technical changes to better assist seniors and those with disabilities in keeping their primary homes during debt collection legal proceedings

• Local Bills to Increase Senior Property Tax Exemption: 18 of 19 local bills passed to increase the senior property tax exemption and freeze the tax assessed value for homes owned by individuals 65 years of age or older. Only SB371 related to Madison County failed to pass. The bills are constitutional amendments and must be approved by voters before becoming law.
  • The following bills passed:  Blount County, HB313; Chilton County, HB488; Clarke County, HB485; Colbert County, HB64; Covington County, HB507; Cullman County, HB436; Franklin County, HB65; Henry County, HB460; Lamar County, SB213; Lawrence County, HB421; Limestone County, HB310; Mobile County, HB308; Monroe County, HB537; Morgan County, HB457; Perry County, HB573; Fayette County, HB210; Walker County, SB56; Wilcox County, HB538.

Birmingham Land Bills

Birmingham area legislators filed several land-related bills this session. As originally filed, the bills contained several provisions that made it easier for local government to seize private property through direct and indirect takings. Alabama REALTORS® opposed the bills as written and worked to amend the legislation to help the city address its goals and protect the private property rights of property owners in the process.

• HB404 by Rep. Neil Rafferty (D - Birmingham) allowed Class 1 municipalities in Alabama to form community land trusts to provide and lease low-to-moderate income housing to individuals. Birmingham is the only qualifying city in Alabama, as cities must have populations exceeding 300,000 to be considered a Class 1 municipality. AAR supports solutions to create workforce housing and worked with stakeholders to create amendments to this bill and aid its final passage. The bill will assist in helping Birmingham create targeted work force housing. 
• HB315 by Rep. Mary Moore (D - Birmingham) allowed Class 1 municipalities to enact a vacant land registry, require fees for vacant land, and enforcement provisions. AAR supports efforts to reduce blight and vacant/abandoned properties, but the bill contained a number of provisions that made it easier for local government to seize private property. AAR worked with stakeholders on friendly amendments and aided its final passage. The bill will aid Birmingham in reducing blight in their community.
• HB401 by Rep. Kelvin Datcher (D - Birmingham) would have doubled the recording fee for mortgages, deeds of trust, sales contracts, and similar instruments given to secure debt on real property. It would have also directed 25% of the proceeds to an Alabama Housing Trust Fund with the rest divided among the city, county, and state. Alabama REALTORS® opposed the bill for increasing the fees and costs on new home and property buyers. 
• HB402, also introduced by Datcher, expands the scope, power, and prevalence of local land banks, which are publicly-owned entities authorized to acquire vacant, abandoned, and tax-foreclosed properties. The measure makes it easier for land banks to acquire buildings and parcels, shortens the tax redemption period, and allows for multi-jurisdictional land banks. AAR supports land bank legislation, but this bill included several provisions that required additional consideration and could not be fully addressed during this session. Additional time during the offseason will be needed to continue refining the measure.

General Contractor Bills Signed into Law

• Business License Clarification: SB304 by Sen. Greg Albritton (R - Range), received final passage and will clarify local business licensing requirements for contractors in municipalities in which they perform work, even if they do not maintain a physical business presence within them. SB304 applies to general contractors, subcontractors, and homebuilders, and it includes those who specialize in areas such as electrical, plumbing, HVAC, natural gas, and refrigeration. Under the provisions of the measure, the cost of the business license may be either a flat fee or a percentage of gross receipts for work performed within the municipality. Work performed on behalf of a county government but located within a municipality would not require a business license.
• General Contractor Exemptions: SB279 by Sen. Clyde Chambliss (R - Prattville) that expands exemptions from general contracting licensure requirements secured final passage. State law already exempts numerous services, such as lawn and landscaping maintenance, from the requirement of securing a general contractors license, but SB279 adds additional exemptions, such as painting, janitorial work, pressure washing, floor waxing, routine maintenance, and basic upkeep of existing plumbing, electrical, lighting, and HVAC systems.

Real Estate Commission Appointments Delayed and Carried Over

In 2026, four of the nine seats on the Alabama Real Estate Commission are scheduled for appointments, including the First, Third, and Sixth Congressional Districts of Alabama and the Consumer At Large position. AAR submitted nominations to the Governor for consideration. On February 19, 2026, Governor Ivey appointed Shawn Reeves (First Congressional District), Jim Dye (Sixth Congressional District), and Vaughn Stough (Consumer At Large). No appointment was made for the Third Congressional District seat.

The appointments of Reeves, Dye, and Stough were carried over and not confirmed by the Alabama Senate. As a result, current commissioners will continue serving until appointees are confirmed in a future session. 

Bills That Ran Out Of Time

Real Estate Appraisal Bill

SB87 by Sen. Greg Albritton (R - Range) set clear time limits for actions related to real estate appraisals. The bill passed the Senate but died in the House. Under the provisions of SB87, a civil action based on a real estate appraisal conducted by a licensed, certified, or registered appraiser much be filed within three years of discovery of the act or omission prompting the action. It also limits civil actions to no more than five years after an appraisal was completed. Likewise, complaints made against an appraiser with the Alabama Real Estate Appraisers Board must be filed within five years of completion of the appraisal prompting the complaint.

Historic Properties Tax Credit

HB452 by House Speaker Pro Tem Chris Pringle (R - Mobile) that extends the state’s existing tax credit for restoring historic properties passed the House but died in the Senate. Originally passed in 2013 and extended in 2021, the tax credit is set to expire in 2027 unless lawmakers take action and pass legislation to stop it from sunsetting. The bill extended the tax credit to 2032, increases the annual limit on allowable credits, and provides additional credits to incentivize historic property rehabilitation in rural portions of Alabama.

Titling of Manufactured Housing

HB435 by Rep. Cindy Myrex (R - Cullman), passed the House and died in the Senate. The bill would have allowed previously untitled manufactured homes into the current titling system. House Bill 435 authorized the Alabama Department of Revenue to issue certificates of title for manufactured homes made in 1999 or earlier upon the owner’s application. 

Extend License Plate Design Cycle

HB256 by Rep. Russell Bedsole (R – Alabaster) passed the House and died in the Senate would extend the lifespan of Alabama license plate designs—including specialty plates like the Alabama REALTORS® plate—from five years to ten years. Alabama is among the few states that require a redesign every five years, and Bedsole said the change could cut production costs in half.

Added Requirements Before Municipal Taxes or Fees Take Effect

SB148 by Sen. Gerald Allen (R – Cottondale) would have limited the ability of municipalities to levy or raise taxes and license fees by requiring a public hearing with 30-day notice and passage of an ordinance before any new tax or fee could take effect.

Conclusion

Guided by our Public Policy Committee, Alabama REALTORS® advocated on behalf of real estate professionals and private property rights during the 2026 regular legislative session. Alabama REALTORS® public policy team is honored to work on your behalf and advocate for you, your businesses, and private property rights in Alabama. 

Thank you to all our members who participated this legislative session, whether at REALTOR® Day, reading Capitol News and Notes, or otherwise. Your support helps us to protect the real estate industry across Alabama.