HB432 Alabama 2024 Session

Updated Feb 23, 2026

Notable

Summary

Primary Sponsor: Kenyatte HassellRepresentative
Democrat
Session: Regular Session 2024
Title: State employees, salary deductions further provided for
Summary: HB432 expands and tightens Alabama state employee salary deductions by allowing new deduction types (consumer goods or financial instruments), imposing a monthly cap and admin fee, with changes effective June 1, 2024.
What This Bill Does
The bill lets the State Comptroller set statewide policies to deduct from state employees’ salaries for groups with at least 200 participants, including membership dues, voluntary contributions, insurance premiums, and now consumer goods or financial instruments offered through associations. Deductions that were already being made as of April 23, 1985 can continue. Deductions must occur at least monthly and be remitted to the specified company or organization, and an employee can terminate deductions with two months’ written notice. Deductions cannot exceed $300 per month for post-tax withholdings, and the Comptroller may charge an administration fee up to 1% of the total deduction collected.

Who It Affects
State employees who participate in salary deductions (including existing and newly added deductions) and are subject to the $300 monthly cap and potential admin fee.
State Comptroller and payroll staff who implement the deductions, set policies, collect the administration fee, and ensure monthly remittance to the appropriate organizations.

Key Provisions
Expands allowable deductions from state employee salaries to include consumer goods or financial instruments offered through membership associations.
Deductions must be initiated by groups of at least 200 participating state employees and may continue existing deductions from April 23, 1985.
Deductions must occur at least monthly and be remitted to the specified company, association, or organization.
A state employee may terminate deductions with two months' written notice.
Deductions may not exceed $300 per month for post-tax withholdings.
The Comptroller may collect an administration fee not to exceed 1% of the total deduction.
Effective date: June 1, 2024.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Government Administration