Committee advances several bills, adopts vape product tax amendment; $5 million transfer to commerce approved

The House Ways and Means General Fund Committee on Monday advanced several bills across a range of topics, issuing favorable reports and adopting amendments on measures that would affect state finance, law enforcement benefits and tobacco and nicotine product regulation.

Tax and enforcement for vaping products

Representative Faulkner presented a bill to create a 10-cent-per-milliliter tax on certain alternative nicotine (vape) products, authorize the Alabama Alcoholic Beverage Control Board to collect fees for enforcement and create a state registry and reporting system. The measure, as amended by Representative Mooney, adds clarifying language to align Alabama—s registry rules with federal Food and Drug Administration filings and makes the state system automatically follow applicable federal decisions.

Under the amendment adopted by the committee, tax revenue distribution would be: 50% to the state general fund, 25% allocated to counties on a population basis and 25% to municipalities on a population basis; the sponsor said that if a county has no municipalities the municipal share would be distributed pro rata. The bill prohibits duplicate local vape taxes in favor of a uniform state rate but the sponsor said he would consider carve-outs for counties with existing constitutional amendments.

Sponsor Representative Faulkner said enforcement funding has been limited and the licensing and penalty structure in the bill mirrors existing wholesaler-to-retailer accountability systems. Committee members asked whether the tax is imposed in addition to local sales tax (it would be) and whether wholesalers would remit the tax (the sponsor said it would be a wholesaler-level collection). The committee adopted Representative Mooney—s amendment by voice vote and later gave the bill a favorable report as amended.

Transfers and procurement

House Bill 526, sponsored by Representative Brown, would transfer $5,000,000 from the Alabama 20 First Century Fund to the Department of Commerce for establishment of international trade offices and to support rural development strategies and related operating costs. The committee adopted an amendment that specified the fund-maintenance threshold and allowed a one-time transfer for fiscal year 2025; the bill received a favorable report.

Employee retirement and law enforcement leave payout (HB 255)

Representative Pettis presented legislation to extend a payout for unused vacation hours to more troopers and to standardize administration under the Alabama Law Enforcement Agency naming convention in the amendment. The measure would allow payment for up to an additional 80 hours of unused leave above the 480-hour cap, the sponsor said, with the aim of keeping more troopers on the road. The committee adopted the amendment and gave the bill a favorable report.

Emergency Management Authority materials

House Bill 465 would authorize state emergency management funds to be used for educational and promotional materials and limited items "reasonably necessary to promote" emergency management functions, the sponsor said. The committee gave the bill a favorable report.

Small administrative items

A small per diem increase for 6-to-12-hour travel meals (roughly a $2 increase to $14.88) was presented and received a favorable report. The committee also carried over HB 482, HB 483 and HB 484 to the end of the agenda for later consideration.

Votes and formal actions recorded in committee

- HB 255 (employees retirement / troopers): amendment adopted; bill received a favorable report. - HB 465 (emergency management promotional materials): bill received a favorable report. - HB 482/HB 483/HB 484: carried over to end of agenda, no final action at this meeting. - HB 526 (Alabama 20 First Century Fund transfer): amendment adopted; bill received a favorable report. - Vape product taxation bill: Representative Mooney amendment adopted to align state rules with federal filings; bill received a favorable report as amended. - Travel meal per diem increase: bill received a favorable report.

Why this matters

The session produced near-term funding and enforcement changes: the commerce transfer funds initial international offices and rural development strategies; the vape tax creates a new revenue stream earmarked partly for enforcement and distributes revenue to local governments on a population basis; the trooper leave-payout change and emergency management clarification adjust administrative and benefit rules that affect state operations.

What happens next

Bills reported favorably will proceed through the legislative process for consideration by the full House. Sponsors and committee members indicated willingness to refine language and to address local-government concerns prior to floor votes.