HB615 • 2026

Catastrophe savings accounts, required to be held in Alabama banks, credit unions, or veterans financial institutions and approved by the Commissioner of Insurance

Labor Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Robbins
Last action: 2026-03-12
Official status: Pending Committee Action in House of Origin
Effective date: Not listed

Plain English Breakdown

The official bill metadata lists 'Passed Legislature' and a final enrollment status, yet also shows 'Pending Committee Action.' This contradiction suggests uncertainty about whether the law is currently active or still being debated.

Rules for Catastrophe Savings Accounts in Alabama

This bill requires that catastrophe savings accounts be held only at banks, credit unions, or veterans financial institutions located in Alabama.

What This Bill Does

Requires these special savings accounts to be kept at Alabama banks with a brick-and-mortar location, credit unions, or veteran-related financial institutions.
Defines a 'catastrophe savings account' as an account used for home insurance deductibles and costs from storms like hurricanes.
Allows funds in the account to pay for hurricane damage, rising floodwaters, windstorms, roof repairs, FORTIFIED endorsements, or other mitigation actions.
Limits each taxpayer to opening only one of these specific accounts.
Sets a rule that the account must be labeled as a 'catastrophe savings account' to qualify under this law.

Who It Names or Affects

Alabama residents who own residential property and pay state income tax
Banks with brick-and-mortar locations in Alabama, credit unions, or veterans financial institutions

Terms To Know

Catastrophe Savings Account: A special savings account for paying home insurance deductibles and costs from storms like hurricanes.
Windstorm Event: Storms such as cyclones, tornadoes, high winds, or hail that cause damage to property.

Limits and Unknowns

The bill does not specify how much money a person can put into these accounts.
It is unclear if the Commissioner of Insurance must approve each account before it is opened, as this detail appears in the title but not the provided text excerpt.

Bill History

2026-03-12 House
Pending Committee Action in House of Origin
2026-03-12 House
Read for the first time and referred to the House Committee on Financial Services

Official Summary Text

Catastrophe savings accounts, required to be held in Alabama banks, credit unions, or veterans financial institutions and approved by the Commissioner of Insurance

Current Bill Text

Read the full stored bill text

HB615 INTRODUCED
Page 0
HB615
KHI3LA5-1
By Representative Robbins
RFD: Financial Services
First Read: 12-Mar-26
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KHI3LA5-1 03/11/2026 KMS (L)cr 2026-1301
Page 1
First Read: 12-Mar-26
SYNOPSIS:
Under existing law, catastrophe savings accounts
cover insurance deductibles and other uninsured
portions of risks of loss from windstorm events to
owners of residential property.
This bill would require catastrophe savings
accounts to be held in Alabama banks, credit unions, or
veterans financial institutions.
A BILL
TO BE ENTITLED
AN ACT
Relating to catastrophe savings accounts; to amend
Section 40-18-310, as amended by Act 2026-100, 2026 Regular
Session, Code of Alabama 1975; to require accounts to be held
in Alabama banks, credit unions, or veterans financial
institutions.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Section 40-18-310, as amended by Act
2026-100, 2026 Regular Session, Code of Alabama 1975, is
amended to read as follows:
"§40-18-310
As used in this article, the following terms shall have
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HB615 INTRODUCED
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As used in this article, the following terms shall have
the following meanings:
(1) CATASTROPHE SAVINGS ACCOUNT. A regular savings
account or money market account , established in a bank or
credit union with a brick and mortar location in Alabama or a
veteran-related financial institution, by an insurance
policyholder who is a state income taxpayer for residential
property in this state to cover: (i) an insurance deductible
under an insurance policy for one residential property owned
by a taxpayer that covers hurricane, rising floodwaters, or
other catastrophic windstorm event damage or by an individual
to cover self-insured losses for the taxpayer's residential
property from a hurricane, rising floodwaters, or other
catastrophic windstorm event; (ii) the annual cost of a
FORTIFIED endorsement to supplement an insurance policy; or
(iii) the cost of mitigation actions that would reduce the
risk of hurricane, rising floodwaters, or other catastrophic
windstorm event damage, including, but not limited to, costs
associated with reroofing and obtaining evaluation services to
qualify for a FORTIFIED designation, collectively, "Qualified
Catastrophe Expenses." The account must be labeled as a
catastrophe savings account in order to qualify as a
catastrophe savings account as defined in this article. A
taxpayer may establish only one catastrophe savings account
and shall specify that the purpose of the account is to cover
the Qualified Catastrophe Expenses.
(2) WINDSTORM EVENT. Windstorms, cyclones, hurricanes,
tornadoes, high winds, and hail, and similar perils not
normally among those covered under most property casualty
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HB615 INTRODUCED
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normally among those covered under most property casualty
insurance policies but obtainable through the purchase of
wind, wind and hail, storm or windstorm coverage, or all."
Section 2. This act applies to tax years beginning on
or after January 1, 2027.
Section 3. This act shall become effective on October
1, 2026.
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