A busy fifth week of the 2025 regular session concluded Thursday afternoon when the Alabama House of Representatives gaveled out after meeting for three legislative days. Lawmaker are currently taking their first scheduled spring break - known around the State House as a “district work week” -  with 17 legislative days remaining and over 650 bills filed. The major REALTOR® news was the final passage of HB 230 – an AAR-backed consumer bill regarding buyer agreements and agent disclosures. Continue reading for highlights from last week’s legislative action.

REALTOR® supported HB 230, sponsored by former Rep. Randall Shedd and carried by Sen. Josh Carnley (R-Enterprise), passed the Senate on Wednesday and heads to the governor’s desk for her signature. 

The legislation reaffirms Alabama's existing Real Estate Consumers Agency and Disclosure Act (RECAD) framework, emphasizes early discussions of brokerage services and compensation, and protects consumers from premature binding contracts. It clarifies that consumers in Alabama cannot be required to sign a binding contract simply to view a property, but the bill does not require an agent to show a property to a buyer without an agreement. Under its provisions a written buyer agreement will be required before an offer to purchase is submitted, which ensures clear terms of representation. This balanced approach urged by AAR aims to provide greater transparency and consistency for both real estate professionals and consumers.

Former Rep. Shedd was on hand to watch his last piece of substantive legislation cross the finish line, receiving well deserved accolades from senators. Shedd resigned from his House seat earlier in the session to accept a position on the staff of  Senate President Pro Tem Garlan Gudger (R-Cullman). After Sen. Carnley presented the bill to his colleagues, explaining why it was needed and what it does, the upper chamber passed it unanimously.

AAR offers many thanks to Rep. Shedd and Sen. Carnley for their time and efforts on behalf of  HB 230, and our heartfelt appreciation goes to Pro Tem Gudger, Senate Rules Chairman Jabo Waggoner (R-Vestavia Hills), House Rules Chairman Joe Lovvorn (R-Auburn), and House Speaker Nathaniel Ledbetter (R-Rainsville) for putting the bill on the calendar in their respective chambers.

Companion bills HB 382 and SB 212 passed out of their respective House and Senate committees last week. Sponsored by Rep. Jamie Kiel (R-Russellville) and Sen. Carnley, the REALTOR®-supported bills would address five substantive issues, as well as update some of the definitions in RECAD to better reflect current practices.

1. Bad Checks/Incorrect E-payment Numbers: The bill allows failed payments to be handled administratively rather than requiring a full hearing. 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 Alabama Real Estate Commission. The bill will keep these oversights from requiring a hearing. 
2. 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. 
3. Sets Residential Listing Term to One Year – The bill sets the maximum time period, absent written extension, for listing agreements of residential property to one year without a written extension. This protects the sellers from unreasonable lengths and is in line with legislation passed several years ago dealing with long-term service agreements for homes. Current law requires a set time period with no maximum. 
4. Reasonably Regulate Teams – Recent years have seen more widespread use of real estate teams or groups, where real estate agents work together under a specific name that is a sub-group within a real estate company. The bill sets reasonable rules on advertising and clarifies broker responsibilities for teams to promote clarity to consumers and ensure professionalism by the team or group. The bill does not require an extra license for teams. 
5. 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.   

A technical amendment was added in the House committee that will also be added to the Senate bill. Both bills await consideration on the floor of the chamber of origin. 

A bill allowing local governments to add a fee up to $20 to building permits is moving through the legislature. HB 335 sets aside any funds raised under the law by a local government to go to the Alabama Construction Trade Academy Fund. The ACTA Fund was established in the last several years to train skilled tradesmen for the homebuilding industry. The program is based on a pilot program in Huntsville from 2024. The fiscal note does not provide a cost estimate for the fee but states that 17,690 building permits for new privately owned housing units were issued in Alabama in 2024. 

The bill awaits review in a Senate committee. 

HB 385, sponsored by Rep. Ben Robbins (R-Sylacauga), was filed last week. The bill removes the power of occupational and professional licensing boards to use eminent domain to acquire property. The bill is very similar to a bill filed by Rep. Robbins last year. HB 385 awaits action in a House committee. 

• Tax Cut Package Filed – Four bills providing tax cuts were filed last week by House Ways & Means Education Chairman Rep. Danny Garrett (R-Trussville), focusing on grocery sales taxes, retirement income, and state income taxes. The proposals are estimated to save Alabamians $314.6 million annually.
  • HB 386 would decrease the state’s portion of the sales tax on food from 3% to 2%, a move that was passed several years ago but was contingent on a certain amount of tax growth that has not yet occurred. The bill deletes the contingency.
  • HB 387 would give local governments more flexibility in decreasing their food tax rates, allowing these governments to make more substantial cuts without growth targets.
  • HB 388 would double the $6,000 exemption for retirement income to $12,000, benefiting retirees who primarily rely on defined retirement plans, like 401(k)s and IRAs.
  • HB 389 increases the income floor for the standard deduction and expands the income threshold for the maximum dependent exemption. 
• Veterans Affairs Restructuring Bill – One of Gov. Ivey’s agenda items received final passage last week. SB 67, sponsored by Sen. Andrew Jones (R-Centre), will make the director of the department a member of the governor’s cabinet and reform the board.
• Glock Switch Bill – A bill prohibiting so-called “glock switches” passed the House last week. SB 116, sponsored by Sen. Will Barfoot (R-Pike Road), will restrict firearm modifications that convert semi-automatic handguns into fully automatic weapons. The bill mirrors current federal law. A change in the House requires the bill to go back to the Senate for concurrence or conference committee.
• Law Enforcement Immunity Bill – Another high priority bill of legislative leadership and the governor dealing with public safety passed the House last week. HB 202, sponsored by Rep. Rex Reynolds (R-Huntsville), would expand and clarify civil and criminal immunity for law enforcement officers. The bill now goes to the Senate.

This week, the legislature is taking the week off for a “district work week” – time they can utilize meeting with constituents in their districts. The House and Senate will reconvene next Tuesday, March 17, at 1 and 2 pm respectively for Week 6. While the Senate agenda for Week 6 is unknown, it is likely to handle certain house-keeping matters like sunset bills (i.e. bills renewing boards and agencies that would otherwise sunset). The tax cut measures detailed above are the first four bills on the House calendar when lawmaker return to Montgomery.

Stay tuned on March 25^th for the next edition of Capitol News and Notes!