Retail Report: Week 3 Legislative Recap | Alabama Retail Association

Despite a weekend of severe weather across much of the state, the Legislature was back to work this week.

This week’s Capitol Retail Report highlights several measures with potential impacts for retailers, ranging from franchise protections and alcohol regulation to data privacy, tax policy, and workplace requirements. As always, ARA is closely monitoring these developments and engaging where retail interests are affected.

Religious Observance Protections for Franchisees Advances Senate Committee
The Senate Fiscal Responsibility and Economic Development Committee unanimously approved SB138 that would prohibit a franchisor from requiring a franchisee to operate on a day that conflicts with the franchisee’s sincerely held religious beliefs, except under limited circumstances.

The sponsor, Sen. Dan Roberts, R-Birmingham, said he worked with a range of stakeholders in drafting the legislation and introduced the bill in response to an issue that has arisen in his district. During committee discussion, members noted concerns about private equity firms purchasing franchise locations and, in some cases, attempting to compel franchise owners to operate on days or holidays that conflict with their sincerely held religious beliefs.

Legislation Introduced to Allow Retail Sale of Ready-to-Drink Beverages
Sen. Bobby Singleton, D-Greensboro, has introduced SB217 to authorize the retail sale of ready-to-drink mixed spirit beverages containing no more than 7 percent alcohol by volume by creating a new product category and license. Under current law, these products are regulated as liquor and are only available for purchase through ABC stores and licensed liquor stores.

The bill would allow retailers that currently hold beer and/or table wine licenses to sell these products, for on-premise and off-premise consumption, by obtaining a limited mixed spirit beverage expanded retail license. The cost of the license is $500 annually. Retailers would be required to purchase mixed spirit beverages exclusively through licensed wholesalers, consistent with the state’s three-tier alcohol distribution system.

The bill also imposes compliance requirements on retailers, including mandatory electronic age verification for purchases and establishes product display/labeling standards to ensure mixed spirit beverages are clearly distinguished from nonalcoholic products.

Bill Introduced to Require Age Verification Technology for Age-Restricted Products
Sen. Tim Melson, R-Florence, has introduced legislation that would require retailers selling alcoholic beverages, tobacco, vape, or consumable hemp products to use a digital age-verification system or card-swipe technology at the point of sale after a violation for failing to verify a customer’s age.

Bill Banning Vaping in Public Places Passes the Senate
Sen. Gerald Allen’s, R-Cottondale, bill to prohibit vaping in public places under the same framework as the Alabama Clean Indoor Act passed the Senate. SB9 bans vaping in most enclosed public spaces, including retail stores, restaurants, shopping malls, elevators, banks, and other locations. The bill will now move to the House for further consideration.

Bill Introduced to Remove Swipe Fees from Sales and Use Tax Calculations
Sen. Arthur Orr, R-Decatur, introduced SB221 to exempt credit and debit card transaction fees from the amount subject to state sales and use tax. Under the bill, when a retailer passes along a credit card transaction fee to a customer, that fee would not be included in the taxable sales price. If enacted, the bill would take effect September 1, 2026.

Bill Introduced to Remove Sales Tax on Groceries
Representative Penni McClammy, D-Montgomery, and members of the House Democratic Caucus have introduced HB336, which would eliminate the state sales and use tax on food. Alabama currently taxes food at a reduced rate of two percent, and the bill would also allow local governments to adopt similar exemptions. If enacted, the exemption would take effect on September 1, 2026.

Second Amendment Sales Tax Holiday Proposed by Lawmakers
Rep. Chris Sells, R-Greenville, along with more than 50 cosponsors, has filed HB360 to establish a Second Amendment Sales Tax Holiday. If enacted, the annual holiday would take place the last weekend in August and would exempt ammunition, firearms, and firearm accessories from the state sales and use tax. The bill also allows local governments to opt in and provide corresponding local tax relief.

Nursing Mothers Act Amended and Approved by House Committee
Rep. Juandalynn Givan, D-Birmingham, has introduced HB290, the “Nursing Mothers Act,” to require certain employers to provide reasonable break time and a private location for employees to express breast milk. The bill was considered by the House Health Committee and advanced with a substitute that narrows its scope to align with existing federal law.

As amended, HB290 would apply only to employers with more than 50 employees and would limit the requirement to a period of up to one year following the child’s birth. The substitute also requires employers to make reasonable efforts to provide a private, reasonably accessible space that is not a bathroom.

App Store Consumer Protection Bill Advances Through Senate Committee
Legislation establishing new consumer protection requirements for mobile app stores and app developers related to age verification and parental consent for minors, was considered this week by the Senate Children and Youth Health Committee. Sen. Clyde Chambliss, R-Prattville, is carrying HB161 in the Senate and has sponsored similar measures in previous sessions.

The committee heard public testimony from both proponents and one opponent of the legislation before taking action on the bill. During the meeting, members assured Sen. Vivian Figures, D-Mobile, that conversations will continue as the bill moves forward, particularly regarding the enforcement mechanisms contained in the legislation. Following discussion, the committee voted to approve the bill.

Legislation Introduced to Expand Consumer Data Privacy
HB351, introduced by Rep. Mike Shaw, R-Vestavia Hills, would establish a comprehensive consumer data privacy framework. The bill grants consumers the right to know whether their personal data is being collected, to access and correct that data, to request deletion, and to opt out of the sale of personal data, targeted advertising, and certain automated profiling. It applies to businesses that conduct business in Alabama and meet specific data-processing thresholds, while exempting small businesses with fewer than 500 employees that do not sell personal data.

For retailers, the bill could require meaningful operational and compliance changes, particularly for those that collect customer data through loyalty programs, e-commerce platforms, or digital marketing. The bill will be considered by the House Commerce and Small Business Committee on Tuesday. If enacted, the law would take effect October 1, 2026.

No Action Taken on Ivermectin Legislation Following Public Hearing
The House Health Committee provided a public hearing on HB146, sponsored by Rep. Phillip Rigsby, R-Huntsville. The bill would permit a physician, physician assistant, or nurse practitioner to give a pharmacist a standing order to dispense Ivermectin to individuals without an individual prescription. Rep. Rigsby noted that this legislation does not make ivermectin available over the counter but serves more as a mechanism and access bill. Following testimony from both proponents and opponents, and lengthy discussion among members, the committee did not vote on the measure.

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