Lawmakers will return next week and move into the final third of the 2026 legislative session. With time growing short, bills that are just now being introduced will need to move quickly through the committee and floor process to have a chance of reaching the governor’s desk before adjournment.

Penny Rounding Bill Introduced
Rep. Norman Crow, R-Tuscaloosa, has introduced legislation to authorize the rounding of in-person cash transactions to the nearest five cents. HB545 would establish a uniform method for rounding the final total of a cash purchase while leaving the underlying sales price and tax calculation unchanged.

The legislation is being introduced as the availability of pennies continues to decline nationwide. For years, the U.S. Mint produced pennies at a cost exceeding their one-cent face value, and in February 2025 the U.S. Treasury halted production. As circulation has tightened, many banks and Federal Reserve facilities have reduced or stopped handling pennies, creating challenges for retailers attempting to make exact change in cash transactions.

HB545 would provide a clear, consistent framework for handling these situations by allowing totals to be rounded to the nearest five cents for cash payments only. Electronic payments, including credit and debit card transactions, would not be affected. The Alabama Retail Association, working in coalition with the Alabama Grocers Association, Alabama Restaurant and Hospitality Association, National Federation of Independent Business, Petroleum and Convenience Marketers of Alabama, and the Alabama Automobile Dealers Association, is pushing the legislation as a practical step to provide certainty for retailers and consumers as penny circulation continues to decline.

The bill is scheduled to be considered by the House Financial Services Committee on Tuesday.

SNAP Waiver Bill Passes Senate
SB57, sponsored by Sen. Arthur Orr, R-Decatur, which would require the Alabama Department of Human Resources to seek a federal waiver prohibiting the purchase of certain candy and soda products with SNAP benefits, passed the Senate this week by a vote of 27-2.

During committee consideration, the bill was amended to more narrowly define the affected products. “Candy” is defined as a food product listing sugar, cane sugar, corn syrup, or high fructose corn syrup as a primary ingredient and includes confectionery items primarily composed of sweeteners. The definition excludes baked goods, prepared desserts, bakery items, baking ingredients and mixes, dessert toppings, frosting, jellies, jams, marshmallows, and items intended for cooking or meal preparation. “Soda” is defined as beverages containing carbonated water and sugar, cane sugar, corn syrup, or high fructose corn syrup among the first two ingredients, while excluding drinks containing low- or non-caloric sweeteners.

The committee amendment also places the Alabama Department of Revenue in charge of coordinating implementation with SNAP-authorized retailers, including providing guidance on eligible and ineligible purchases. On the Senate floor, lawmakers adopted an additional amendment protecting retailers from penalties for accidental noncompliance, specifying that retailers may not be fined or otherwise penalized for inadvertent acceptance of SNAP benefits for these items unless the retailer exceeds three accidental violations within a fiscal year.

The bill now moves to the House, where several similar measures have already been introduced this session.

Local Tax and License Fee Notice Bill Introduced
Rep. Jim Carns, R-Birmingham, has introduced HB561 to increase transparency around local tax and license fee changes. The proposal would require local governments to provide at least 30 days’ notice and hold a public hearing before considering the imposition of a new tax or license fee or increasing an existing one.

The measure is a companion to SB148 sponsored by Sen. Gerald Allen, R-Cottondale, and is intended to ensure businesses and residents have advance notice and an opportunity to weigh in before local tax or fee changes are adopted.

SSUT Distribution Bill Introduced
Sen. Greg Albritton, R-Atmore, has introduced legislation aimed at addressing ongoing disputes concerning how Simplified Sellers Use Tax (SSUT) revenues are distributed among Alabama’s counties and municipalities.

Under current law, distributions are based on population figures from the most recent federal decennial census. SB347 would instead rely on population projections from the U.S. Census Bureau’s Population and Housing Estimates Program, updated every five years, in an effort to better reflect population changes across the state.

The legislation follows ongoing conversations between state lawmakers, county and municipal officials, and other stakeholders regarding SSUT allocations. Sen. Albritton acknowledged that a comprehensive solution is unlikely to be finalized this session but described the measure as a first step toward establishing what he called a “fairer system.”

Ready-to-Drink Legislation Stalls This Session
SB217, sponsored by Sen. Bobby Singleton, D-Greensboro, would have allowed ready-to-drink mixed spirit beverages containing no more than 7 percent alcohol by volume to be sold by retailers holding beer and/or table wine licenses. Under current law, these products are regulated as liquor and may only be sold through ABC stores and licensed liquor stores.

However, according to reports, the Senate Republican Caucus has decided not to take up legislation addressing ready-to-drink beverages during the 2026 legislative session, effectively halting movement on the proposal this year.

Liquor Markup Clarification Bill Carried Over in Committee
Legislation sponsored by Rep. Andy Whitt, R-Ardmore, addressing the Alcoholic Beverage Control Board’s wholesale liquor markup was carried over this week by the House Economic Development and Tourism Committee to allow for additional discussions with the ABC Board.

Under current law, the ABC Board may apply a markup of up to 16.99 percent on wholesale case lot sales of liquor, calculated based on the cost of merchandise plus freight. HB395 would clarify that the “cost of merchandise” used in that calculation includes only the amount the board pays for case lots of liquor.

Rep. Whitt said the legislation was prompted by a rule adopted by the ABC Board last summer imposing a credit card transaction fee on wholesalers/retailers. He expressed concern that the additional charge could exceed the statutory markup limit.

Restitution Priority Bill Advances from House Committee
Legislation sponsored by Rep. Chris England, D-Tuscaloosa, that would prioritize restitution payments to crime victims passed the House Judiciary Committee following lengthy debate. The proposal, HB481, would require courts to ensure restitution is paid before any other fines, court costs, or fees associated with a case.

Under current law, courts must order restitution when a criminal conviction results in pecuniary loss to a victim, but payments are not prioritized. In the retail context, the change would apply to shoplifting cases, helping ensure businesses are reimbursed for stolen merchandise or related losses before other financial penalties are satisfied. During committee discussion, some lawmakers raised concerns that prioritizing restitution could result in court costs going unpaid in certain cases.

Arson and Theft Bill Advances in Senate Committee
Legislation sponsored by Rep. David Faulkner, R-Birmingham, expanding the definition of first-degree arson received a favorable report from the Senate Judiciary Committee this week. HB328 would apply the charge to fires or explosions committed in conjunction with, or to facilitate, a theft.

Rep. Faulkner has pointed to a December 2025 arson at the Homewood Walmart in his district, which caused more than $5 million in damage and forced an extended closure, as highlighting the issue addressed by the legislation. The measure previously passed the House unanimously and now awaits further consideration in the Senate.

Board of Pharmacy Sunset Extension Signed into Law
Sponsored by Sen. Keith Kelley, R-Anniston, and Rep. Kerry Underwood, R-Tuscumbia, legislation extending the Alabama State Board of Pharmacy until October 1, 2027, was signed into law by Gov. Kay Ivey this week. The measure also revises the appointing authority for one at-large member of the board.

Changes to PBM Law Introduced
Sen. Larry Stutts, R-Tuscumbia, has introduced SB345 to update terminology in Alabama’s pharmacy benefit manager (PBM) law by replacing the term “independent pharmacy” with “unaffiliated pharmacy.” The term “unaffiliated pharmacy” is defined as a pharmacy that is not a PBM affiliate.

Alabama lawmakers passed PBM reforms during the 2025 legislative session to require PBMs to reimburse independent pharmacies the amount paid by the Alabama Medicaid Agency, which is $10.64 per prescription, in addition to the acquisition cost of the drug. If enacted, SB345 would apply that reimbursement requirement to any pharmacy that is not affiliated with a PBM.

Wire Transfer Fee Legislation Introduced
Rep. Jennifer Fidler, R-Fairhope, has introduced HB585, to impose a fee on international electronic wire transfers and require additional reporting by money transmission businesses.

The bill requires money transmission businesses to collect a fee equal to 1.5 percent of the amount of any outgoing international wire transfer originating in Alabama. The proceeds would be deposited into a fund and distributed to county sheriffs to offset costs associated with enforcing immigration laws.

The bill also includes new reporting requirements for large or suspicious cash transactions and establishes civil and criminal penalties for attempts to evade those requirements.

The legislation would allow taxpayers to claim an income tax credit equal to the amount of wire transfer fees paid through 2030, up to $5,000. Rep. Fidler introduced similar legislation during the 2025 legislative session, but the proposal ultimately did not pass.