As we prepare for the 2026 Alabama Legislative Session, we want to provide an early look at the issues most likely to affect retailers. The session begins January 13, a slightly earlier start due to the 2026 election cycle. With elections on the horizon, we expect the political climate to influence both the tempo of the session and the topics lawmakers prioritize. Healthcare and education are already expected to lead early discussions.

Below are the policy areas our team is watching closely:

Board of Pharmacy
Following recent audit findings, lawmakers are expected to pursue reforms to the Alabama Board of Pharmacy. The Board will again appear before the Sunset Committee this year, as it received only a one-year extension during the 2025 session. There will be legislation introduced to define “chain pharmacy” after last year’s bill struck the term.

Simplified Sellers Use Tax (SSUT)
Litigation continues to create uncertainty around SSUT. More than 100 cities and all 67 counties have aligned with the State in defending the current system, while other large cities (including Tuscaloosa, Hoover, Mobile, and Mountain Brook) argue that the structure is unconstitutional and shortchanges local governments. Some lawmakers have expressed concern that the lawsuit threatens the fiscal stability of the state and have cautioned that policy consequences may follow. While no legislative fixes have been filed yet, past proposals by Rep. Chris England (D-Tuscaloosa) could reemerge and potentially reshape how online sales are taxed and distributed.

County/State Business Licenses
Legislation is expected to emerge to change business license enforcement by increasing the current delinquency penalty and raising the citation fee.

SNAP
SNAP policy is likely to see renewed debate. Rep. Reed Ingram (R-Matthews) has pre-filed a bill and Sen. Arthur Orr (R-Decatur) has expressed plans to propose limits on purchasing candy and soda with SNAP benefits. Many states around the country have requested and been granted waivers from USDA under the Trump administration. Rep. Donna Givens (R-Loxley) has also pre-filed a bill to allow hot rotisserie chicken as an eligible purchase. Foods that are hot at the point of sale are not eligible under current SNAP guidelines.

Alcohol
Following the Governor’s directive to strengthen alcohol-related regulations following a shooting in Montgomery, lawmakers may consider bills that adjust how alcohol is sold and regulated at retail and for public events. The Alabama ABC Board has already begun promulgating related rule changes in response to the directive.

Hemp Regulation
With new federal measures now released, the Legislature is expected to revisit Alabama’s hemp framework. Sen. April Weaver (R-Alabaster) has pre-filed legislation that would limit nonpsychoactive hemp sales to pharmacies and classify all psychoactive hemp derivatives as Schedule I substances.

Decommissioning of the Penny
Although a federal matter, the absence of clear national guidance has raised concerns about cash-rounding practices. Congress has introduced the Common Cents Act, legislation intended to establish uniform standards and help shield businesses from rounding-related litigation. Our team is monitoring federal developments closely.

As always, our team will keep you informed throughout the session and update you as bills progress. If there are specific issues you would like us to follow or if you need additional information on any topic, please reach out at any time.

Thank you for your continued partnership with the Alabama Retail Association. We look forward to advocating for Alabama retailers in the 2026 session.