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Alabama SB 291 requires companies violating labor and trafficking laws to repay tax incentives

Original title: Tax incentives; reimbursement for violation of labor and trafficking laws provided for

Last action · February 10, 2026: Pending Committee Action in House of OriginSponsor: Merika Coleman

Introduced
Committee
Floor Vote
Passed
Law

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What This Bill Would Do

Senator Coleman introduced SB 291 to require any business entity violating human trafficking or federal child labor laws to reimburse state and local governments for s received under the Alabama Jobs Act. The bill amends existing state code to mandate that the Secretary of Commerce verify compliance with labor and trafficking laws before recommending tax incentives to the Governor. The measure is set to become effective on June 1, 2026.

Why it matters

Companies receiving state and local tax abatements, grants, or refunds face full financial repayment of those economic benefits if they are found liable or guilty of violating child labor or human trafficking regulations.

Who It Would Affect

Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.

Directly affected

business entities seeking economic development incentives

Companies must verify compliance with labor and trafficking laws to qualify for tax incentives and face incentive recapture if violations occur.

Directly affected

Secretary of Commerce

Must conduct additional compliance verifications regarding human trafficking and child labor before recommending companies as approved.

Directly affected

state and local government entities

Receive reimbursed funds from entities that violate human trafficking or child labor laws after receiving economic development incentives.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

What happens if a company receiving Alabama Jobs Act incentives violates child labor laws?
The entity must reimburse state and local governments for the cost of any s received, including tax abatements, grants, or tax refunds.
Who is responsible for verifying that a company complies with these labor and trafficking rules?
The Secretary of Commerce must verify that the company, any subsidiary, and company suppliers do not engage in acts violating human trafficking or federal child labor laws.
When does this legislation take effect?
The act is scheduled to become effective on June 1, 2026.

What else do you want to know?

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Where This Stands

Currently in committee. The next step in the legislative lifecycle is Floor Vote.

Procedural history

2 actions
  1. Feb 10, 2026SenateCommittee
    Pending Committee Action in House of Origin
  2. Feb 10, 2026SenateIntroduced
    Read for the first time and referred to the Senate Committee on Finance and Taxation General Fund

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Sponsors

Discoveries

1 pattern noticed across the record

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift95% confidence

Conditional Economic Development

The legislation shifts economic development policy from simple project viability and export checks to strict compliance with federal labor laws and human trafficking statutes.

Connected Entities

Secretary of Commerce, Governor, Merika Coleman and 2 more
OrganizationSecretary of Commerce“Required to verify that companies and suppliers do not violate human trafficking”Map →
PersonGovernor“Reviews findings from the Secretary of Commerce and executes project agreements ”Map →
PersonMerika Coleman“Senator who introduced SB 291”Map →
otherFair Labor Standards Act of 1938“Federal law containing child labor provisions referenced in the bill”Map →
otherAlabama Jobs Act“State framework governing economic development incentives, tax abatements, grant”Map →

Sources

Open source document

alison.legislature.state.al.us

Analysis Score

0–100
  • Significance65
    How much this matters to a regular citizen
  • Controversy40
    Intensity of disagreement among stakeholders
  • Entertainment10
    Compellingness for a non-policy-wonk reader
  • Buzz30
    Current news / social attention level

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