April 25, 2025 Capitol Connection

April 25, 2025

Alfa Health Plans Legislation Positioned for Final Passage

Above: Alabama farmers filled the State House once more Tuesday to support passage of Alfa Health Plans legislation in the Senate Banking & Insurance Committee. Below: Sen. Arthur Orr, R-Decatur, is championing Alfa Health Plans legislation in the Senate after bringing the idea for affordable health coverage for farmers to the Alabama Farmers Federation.

Legislation to grant the Alabama Farmers Federation authority to offer Alfa Health Plans as a member-benefit option is expected to be up for a final vote Tuesday, April 29.

HB 477 by Rep. David Faulkner, R-Mountain Brook, was reported favorably out of the Senate Banking & Insurance Committee Tuesday by a 12-2-1 vote. Faulkner introduced the legislation to the committee and visited with farmers following the meeting. An attempt to add an amendment to the legislation was made by Sen. Bobby Singleton, D-Greensboro, but was tabled on a motion by Sen. Jack Williams, R-Wilmer, with a second by Sen. Will Barfoot, R-Pike Road.

Voting in favor of the bill were Chairman Shay Shelnutt, R-Trussville; Vice Chairman Williams; Sen. Barfoot; Sen. Josh Carnley, R-Ino; Sen. Chris Elliott, R-Josephine; Sen. Jay Hovey, R-Auburn; Sen. Andrew Jones, R-Centre; Sen. Wes Kitchens, R-Arab; Sen. Steve Livingston, R-Scottsboro; Sen. Randy Price, R-Opelika; Sen. Dan Roberts, R-Mountain Brook; and Sen. Jabo Waggoner, R-Vestavia Hills.

Sen. Merika Coleman, D-Pleasant Grove, and Sen. Bobby Singleton, D-Greensboro, opposed the bill while Sen. Kirk Hatcher, D-Montgomery, abstained. The motion to give the bill a favorable report was made by Carnley and seconded by Elliott. The bill awaits final approval by the full Senate.

Federation External Affairs Department Director Brian Hardin said strong legislative leadership was key in advancing the bill.

“Chairman Shelnutt’s strong support of HB 477 was appreciated by Federation members who observed the proceedings," Hardin said. "We also want to thank committee members who did not support bringing other unfriendly amendments and who advanced the bill with their 'yes' vote.”

Hardin said grassroots member engagement has been essential to the success of HB 477. That support was on display again Tuesday with farmers showing up in person at a critical juncture to beat back hurtful amendments.

“The momentum propelling HB 477 forward has been the calls, texts and personal visits asking lawmakers to support Alabama farmers,” Hardin said. “However, the work is not done. We need everyone to reach out to their state senators and share why Alfa Health Plans legislation is important for you, your family and your farm. Please encourage them to vote ‘yes’ for final passage and ‘no’ for any additional amendments.”

HB 477 has been championed in the upper chamber by Sen. Arthur Orr, R-Decatur, who originally shared the idea of Alfa Health Plans with the Federation and carried companion bill SB 84.

The Alfa Health Plans concept is based on Farm Bureau health plans offered in 10 other states. Alabama’s current bill is the most comprehensive with added protections and assurances to address questions and concerns from lawmakers.

“We’ve listened to the issues other organizations and legislators had with HB 477, and we made 18 distinct changes to answer those questions,” Hardin said. “The bill includes language ensuring enhanced coverage, protection and oversight for Federation members who choose to enroll in the plans. Our goal is to help farmers who are struggling with burdensome costs and unaffordable health care. HB 477 does that while also providing peace of mind.”

Similar plans have reduced costs by 30-60% in other states, Hardin said.

The Senate is expected to vote on HB 477 when it convenes Tuesday, April 29 at 2 p.m. Hardin urged Federation members to attend and show why passing the legislation is necessary. It's a great time to thank lawmakers for standing with farmers during this time of need, he added.

A livestream of the vote begins at 2 p.m. and is linked below.

Click here to contact your legislator.

Click here to view the legislative livestream.

Click hear to listen to Rep. Faulkner discuss Alfa Health Plans on "Alabama Politics with Steve Flowers."

Bills in Brief:

Poultry Utility Tax Exemption: SB 213 by Sen. Jack Williams, R-Wilmer, would update how utility tax is applied for poultry houses to reflect modern production practices. Under current law, “the furnishing of natural gas or electricity for use of consumption as fuel or energy in and for the heating of poultry houses” is specifically excluded from utility tax. When this exemption passed the Legislature, poultry houses were cooled naturally through open sidewalls with “curtains,” which could be raised or lowered to regulate the temperature within the house. Since then, advancements have changed the way chickens are grown and poultry houses are built. Now, most poultry houses are cooled by fans and cool cells powered by electricity. This bill would update the law by making all natural gas, propane and electricity used in poultry houses tax exempt. Williams said he's met with poultry farmers across the state, and one of the biggest burdens they face are gas and electricity taxes. SB 213 was reported favorably out of the Senate Finance & Taxation Education Committee, with the motion to favorably report the bill made by Sen. Rodger Smitherman, D-Birmingham, and seconded by Sen. Gerald Allen, R-Tuscaloosa. The bill awaits a Senate vote. This legislation is supported by the Alabama Farmers Federation.

Agriculture Inputs and Machinery Tax Exemption: HB 605 by Rep. Chad Robertson, R-Heflin, would exempt certain agriculture production input costs from state sales and use tax with oversight by the Alabama Department of Agriculture & Industries. The bill was referred to the House Ways & Means Education Committee. The Federation is monitoring this legislation.

International Wire Transfer Tax: HB 297 by Rep. Jennifer Fidler, R-Fairhope, would place increased reporting and maintenance requirements on money transmission businesses used for wire transfers from Alabama to other countries. The legislation was created to discourage tax evasion by illegal immigrants. HB 297 passed the House Financial Services Committee Wednesday after it was referred there following passage in the House Ways & Means Education Committee in March. The bill awaits a full House vote.

General Fund Budget: The Senate Finance & Taxation General Fund Committee approved the 2026 General Fund budget Thursday after it passed the House earlier this month. The budget now awaits a final Senate vote before being sent back to the House for concurrence. The record $3.7 billion budget, a 10% increase from 2025, contains level or increased funding for Federation agriculture and forestry priorities, except Concentrated Animal Feeding Operation (CAFO) fees, which decreased $200,000. Alabama’s CAFO funding supports the Alabama Department of Environmental Management in regulating and permitting certain poultry and livestock operations. Without full state funding, farmers covered by this program could be forced to pay permitting fees, making continued funding essential to protect them from added costs.

Education Trust Fund Budget: The Alabama House of Representatives approved a record $9.9 billion Education Trust Fund budget Thursday. The budget provides education funding for Fiscal Year 2026 with a 6% increase from 2025. The budget was amended by the House Ways & Means Education Committee Wednesday after being passed by the Senate earlier this month. The bill carrying the budget now goes back to the Senate for concurrence. All Federation agriculture and forestry priorities received level or increased funding. The Federation thanks Senate Finance & Taxation Education Committee Chairman Sen. Arthur Orr, R-Decatur, and House Ways & Means Education Committee Chairman Rep. Danny Garrett, R-Trussville, plus members of both committees, for supporting those priorities.