As Alabama continues its state election cycle, Capitol News and Notes is reflecting on major legislative activity from the 2023-2026 quadrennium.  

The quadrennium began in 2023 with 35 new legislators and two special sessions. Over the next four years, several lawmakers retired or resigned leading to two special elections in the Senate and 10 in the House. Notably, Senate leadership changed following the resignation of Senate Majority Leader Clay Scofield who pursued an opportunity with the Business Council of Alabama, and Senate Pro Tem Greg Reed who pursued an opportunity to lead the newly created Alabama Department of Workforce. The Senate members elected Garlan Gudger as Pro Tem and Steve Livingston as Majority Leader. Senator Bobby Singleton returned as Senate Minority Leader.

House leadership largely remained steady at the top with Speaker Nathan Ledbetter and Minority Leader Anthony Daniels continuing in their roles. The House Republican Caucus elected Rep. Paul Lee as Majority Leader after Rep. Scott Stadthagen resigned to run for Chair of the Republican Party.

Legislation Filed from 2023-2026

Realtor Advocacy from 2023-2026

From 2023 to 2026, The Alabama REALTORS® public policy team tracked more than 1,151 bills in some capacity during those legislative sessions, which represented approximately 31% of the total bills filed, along with numerous amendments. AAR defeated 95 bills harmful to our members and worked to amend other bills that raised concerns for our members, their businesses, or property owners. Fifty-one REALTOR® supported bills received final passage.

Major Legislative Outcomes for Real Estate, Property Rights, Housing, and Economic Development

1. Real Estate Practice, Transactions, and License Law

• Buyer Agreements and Property Showings

Act 2025-59, carried by Rep. Randall Shedd, clarified Alabama’s existing RECAD framework, encourages early discussions about brokerage services and compensation, and protects consumers from being required to sign a binding agreement simply to view a property. The law requires a written buyer agreement before an offer to purchase is submitted, helping ensure clearer terms of representation and greater transparency for both consumers and real estate professionals.

• License Law Clarifications and RECAD Updates

Act 2025- 380, carried by Rep. Jamie Kiel and Sen. Josh Carnley updated several areas of Alabama real estate license law, including: clarifying the definition of dual agency; establishing reasonable rules for real estate teams; setting parameters for out-of-state co-brokerage agreements; allowing agents to use any branch office within their brokerage; allowing AREC to handle failed payments administratively; and increasing AREC’s maximum fine from $2,500 to $5,000 per violation.

2. Private Property Rights and Consumer Protection

• Alabama Property Protection Act of 2026

The Alabama Property Protection Act of 2026, sponsored by Sen. Arthur Orr and Rep. Paul Lee, was signed into law as Act 2026-536. The law addresses title fraud by targeting scammers who falsely claim ownership, list or sell property they do not own, or attempt to encumber real estate without the true owner’s knowledge. The law requires identity verification in real estate transactions; establishes a statewide property alert system; creates a consumer complaint and recovery process; enhances criminal penalties; and provides an expedited process to restore ownership and quiet title.

• Squatter Removal Law

Act 2024-237, sponsored by Rep. Craig Lipscomb and Sen. Chris Elliott, creates a non-judicial process for removing squatters. The law allows a homeowner to file an affidavit with law enforcement to remove an unlawful occupant without first pursuing a costly and time-consuming ejectment action. The law also increases penalties for property damage committed while squatting and for false claims involving a lease or ownership interest.

• Wholesaling and Long-Term Listing Agreements

Act 2023- 228, sponsored by Senators Dan Roberts, Sam Givhan, Shay Shelnutt, and Representative Joe Lovvorn, addressed long-term listing agreements and residential wholesaling. The law limits certain recorded or property-binding listing agreements to one year and requires greater transparency for residential wholesalers in disclosures to sellers and prospective buyers.

• Equity Theft from Tax Sales and Tax Liens

Act 2024-261, by Rep. Chris Sells, addresses excess funds generated through tax sales and tax lien sales. Following the U.S. Supreme Court’s 2023 decision in Tyler v. Hennepin, 598 U.S. 631 (2023), the law creates a process for property owners to claim available excess funds when a tax sale or tax lien sale produces proceeds beyond the taxes, interest, and fees owed. Additional litigation on this issue is pending before the U.S. Supreme Court.

3. Property Taxes and Taxpayer Protections

• Cap on Annual Property Tax Assessment Increases

Act 2024-344, by Rep. Phillip Pettus and Senator David Sessions, and championed by Lt. Governor Will Ainsworth, capped annual increases in property tax assessments at 7% for four years. The law was intended to limit sharp assessment increases on property that has not been sold, renovated, or expanded.

• Property Tax Valuation Notice Timeline

Act 2024-499, by Rep. David Faulkner establishes a July 1 deadline for county tax officials to mail revised property valuation notices. The bill also gives taxpayers additional time to pay when a valuation appeal is pending before the local Board of Equalization.

• Homestead Exemption Measures

Several homestead exemption bills passed, including legislation increasing the homestead exemption from $15,000 to $56,400 for seniors over 62 and individuals with disabilities involved in bankruptcy or debt collection proceedings. In addition, 18 of 19 local constitutional amendment bills passed to increase senior property tax exemptions and freeze assessed values for homes owned by individuals 65 or older. These local measures must be approved by voters before becoming law.

• Disabled Veterans Homestead Exemption

Act 2026-598, by Rep. Paul Lee and Senator Donnie Chesteen removes the annual re-verification requirement for permanently and totally disabled veterans receiving a full ad valorem tax exemption on their primary residence.

• Home Purchases for Disabled Veterans

Act 2026-268, by Rep. Kenneth Paschal and Senator Keith Kelley allows veterans with 100% permanent disabilities to account for their property tax exemption during the home-purchase process before taking ownership, helping prevent exempt property taxes from being included in debt-to-income calculations.

4. Housing Affordability and Workforce Development

• Workforce Housing Tax Credit

Act 2024-302, by Rep. Cynthia Almond, created the Workforce Housing Tax Credit which encourages the development of affordable multifamily housing for low- to moderate-income workers. The program is administered by the Alabama Housing Finance Authority in collaboration with the Alabama Department of Commerce. Developers receiving the credit agree to rent restrictions based on local median income. The program is intended to help workers in construction, retail, hospitality, entry-level healthcare, and other sectors access more affordable housing.

• Financial Literacy Course Requirement

Act 2023-179 by Rep. Andy Whitt, requires Alabama high school students to complete a course in financial literacy and money management before graduation. Financial education can help future homeowners better understand budgeting, credit, saving, and homeownership.

5. Economic Development and Community Revitalization

• Online Auction of State-Held Tax-Delinquent Property

Act 2024-83 by Rep. Reed Ingram establishes an online auction process for property held by the state because of unpaid property taxes. The goal is to return tax-delinquent properties to productive use, place them back on local tax rolls, and reduce blight in affected communities.

• Single Commercial Enterprise Economic Development Projects

Act 2024-99 by Sen. April Weaver and Rep. Kenneth Paschal allows “single commercial enterprises” to qualify as projects under Alabama’s economic development laws. The change may help smaller commercial projects, especially in areas where large-scale industrial recruitment is less feasible, access economic development tools.

• Economic Incentive Legislation

The Legislature passed a package renewing and expanding Alabama’s economic development incentives. The package includes renewal of the Alabama Jobs Act, site development grants through the SEEDS Act, increased transparency for incentive-related data, and support for innovation and rural small business growth.

• Brownfield Redevelopment

Act 2023-356, by Rep. Chip Brown and Sen. Rodger Smitherman, creates a brownfield remediation reserve fund, establishes brownfield redevelopment districts, and expands liability protections for parties who voluntarily participate in cleanup programs. The law creates an additional tool to return underused or contaminated properties to productive use.

• Asbestos Filing Requirements

Act 2024-234 by Rep. Troy Stubbs and Sen. Josh Carnley requires plaintiffs in asbestos exposure lawsuits to provide more specific information when filing a claim, including prior places of employment, individuals with knowledge of the alleged exposure, and other relevant details. The law is intended to reduce unsupported claims and limit unnecessary discovery costs.

6. Small Business, Regulatory Relief, and Government Transparency

• Business License Reporting and Appeals

Act 2025-408 by Sen. Clyde Chambliss addresses municipal business license administration. The law requires local governments to report business license schedules to the Alabama Department of Revenue, making it easier for businesses to determine what they owe. The law also allows taxpayers to appeal business license charges to the Alabama Tax Tribunal and creates protections against improper collection letters from third-party collection firms.

• Corporate Annual Filing Requirement Removed

Act 2024-213 by Rep. Kerry Underwood, Rep. Margie Wilcox and Sen. David Sessions removes the requirement for corporations to file an annual report with the Secretary of State. The bill reduced redundant regulatory obligations.

• Open Records Request Process

Act 2024-278 by Sen. Arthur Orr and Rep. Cynthia Almond created procedures and response timelines for public records requests submitted to governmental entities. The law improves transparency, consistency, and responsiveness in government.

7. Disaster Preparedness and Property Resiliency

• Catastrophic Savings Accounts

Act 2026-100 by Rep. Chip Brown expands the expenses that may be paid from catastrophe savings accounts. In addition to insurance deductibles and uninsured windstorm damage, account funds may now be used for qualifying property-fortification expenses related to hurricanes, floodwaters, and other windstorm damage, subject to a $15,000 cap.

• Emergency Preparedness Education

Act 2026-297 by Sen. Gerald Allen allows the Alabama Emergency Management Agency to use funds for public education and promotional campaigns on disaster preparedness, including communication plans, emergency kits, and preparedness seminars.

• Storm Shelter Tax Credit Renewal

Act 2024-223 by Rep. Joe Lovvorn renewed the state tax credit for storm shelter construction through 2028. The program provides a credit of up to $3,000 for qualifying storm shelter construction.

Looking Ahead: 2027–2030 Quadrennium

During the 2027–2030 quadrennium, lawmakers are expected to meet in the new legislative State House, and Alabama will begin a new gubernatorial administration. Likely issues include state government reorganization; consolidation of agencies and licensing boards; lottery and gambling proposals; infrastructure funding; lawsuit reform; tax credit renewals; and additional economic development measures.