With the session entering its final stretch, lawmakers are balancing budget work with a full slate of policy proposals. Both the General Fund and Education Trust Fund budgets advanced this week alongside several bills affecting retailers and consumers.

Cash Rounding Bill Advances
HB545 by Rep. Norman Crow, R-Tuscaloosa, received a favorable report from the House Financial Services Committee this week after the adoption of a friendly amendment clarifying that the bill’s provisions would not apply to payments made to governmental entities. The legislation would authorize the rounding of in-person cash transactions to the nearest five cents, establishing a uniform method for adjusting the final total of a purchase while leaving the underlying product prices and sales tax calculations unchanged. Electronic payments, including credit and debit card transactions, would not be affected.

The proposal comes as the availability of pennies continues to decline nationwide following the U.S. Treasury’s decision to halt production in 2025. The Alabama Retail Association is supporting the legislation as a practical solution to provide clarity and consistency for retailers and consumers handling cash transactions as penny circulation becomes increasingly limited. A companion measure, SB365, has also been introduced in the Senate by Sen. Jay Hovey, R-Auburn.

Employee Restroom Access Bill Stalls
Legislation that would require certain retail establishments to allow customers with qualifying medical conditions to use employee-only restroom facilities was considered this week by the House Small Business and Commerce Committee. During discussion of HB478 by Rep. Reed Ingram, R-Matthews, several committee members raised concerns about the proposal’s impact on businesses. Following the discussion, Rep. Ingram agreed to carry the bill over and indicated he plans to continue working on the legislation, with the possibility of bringing it back in a future session.

SSUT Distribution Bill Carried Over for Public Hearing
SB347 by Sen. Greg Albritton, R-Atmore, which would change how often population data is updated for purposes of calculating distributions of Simplified Sellers Use Tax (SSUT) revenues among Alabama’s counties and municipalities, was on the Senate Finance and Taxation General Fund Committee calendar this week. The bill proposes using updated population estimates from the U.S. Census Bureau’s Population and Housing Estimates Program every five years instead of the most recent decennial census.

During discussion, Sen. Albritton noted that while there had previously been consensus around the concept, several stakeholders have since raised concerns about potential revenue losses in the projected estimates. As a result, the bill was carried over, and Sen. Albritton indicated he plans to hold a public hearing next week to allow additional input.

Local Tax and Fee Notice Bill Considered in Committee
HB561 by Rep. Jim Carns, R-Birmingham, would require local governments to provide at least 30 days’ notice and hold a public hearing before adopting a new tax or license fee or increasing an existing one. A public hearing was held in the House County and Municipal Government Committee, prompting the chairman to delay a vote on the bill. The measure is expected to be considered at next week’s committee meeting.

SNAP Bills Move in Both Chambers
Legislation requiring the Alabama Department of Human Resources to seek a federal waiver restricting the purchase of certain candy and soda products with SNAP benefits received a public hearing in the House Ways and Means General Fund Committee. SB57 by Sen. Arthur Orr, R-Decatur, is being carried in the House by Rep. Chris Sells, R-Greenville. The committee adopted an amendment shifting implementation responsibilities from the Department of Revenue to the Department of Human Resources. The bill will be considered by the Committee next week.

Lawmakers are also moving forward with legislation aimed at addressing the state’s share of SNAP administrative costs. This week, the Senate Finance and Taxation General Fund Committee gave a favorable report to SB152 by Sen. Greg Albritton, R–Atmore. The bill would increase the amount of tax revenue directed to the Alabama Department of Human Resources for SNAP administration from 5 percent to 7.5 percent of the value of benefits issued statewide. The measure appears to be moving alongside the Senate General Fund budget as lawmakers prepare for increased program costs in future fiscal years following passage of the One Big Beautiful Bill.

Bill Introduced to Expand Small Craft Alcohol Production
Rep. Andy Whitt, R-Ardmore, has introduced HB593 to expand Alabama’s current Brewpub Act and rename it the Alabama Small Craft Alcoholic Beverages Act. The bill would create new license categories for small craft distilleries and small craft wineries, while also establishing a small craft alcoholic beverage manufacturer license that would allow a brewpub, distillery, winery, or any combination of the three to operate within a contiguous area. The legislation would permit these manufacturers to offer tours and tasting samples, sell their products for off-premises consumption at certain public events, and maintain off-site storage extensions separate from their manufacturing premises. The Alabama Alcoholic Beverage Control (ABC) Board would oversee licensure and enforcement under the proposed changes.

Bill Introduced to Exempt Pharmacies from ABC Oversight for Hemp Products
Rep. Phillip Rigsby, R-Huntsville, has introduced HB590 to modify how pharmacies may sell consumable hemp products in Alabama. Under current law, retailers of consumable hemp products must be licensed and regulated by the Alabama Alcoholic Beverage Control (ABC) Board, and pharmacies may only sell certain topical or sublingual hemp products. HB590 would exempt pharmacies from ABC Board licensing and oversight and instead allow pharmacies permitted by the Alabama Board of Pharmacy to sell consumable hemp products at retail, provided the products meet existing safety standards related to testing, labeling, and packaging. The bill would also authorize the Alabama Board of Pharmacy to enforce these requirements and adopt rules for compliance.

Consumer Data Privacy Bill Amended in Senate Committee
Legislation establishing a framework for consumer data privacy rights in Alabama advanced this week in the Senate County and Municipal Government Committee. The committee adopted three amendments to HB351 by Rep. Mike Shaw, R-Vestavia Hills, before giving the bill a favorable report. The amendments clarify the opt-out provisions, exempt political action committees (PACs), and exclude boards and authorities already regulated under other chapters of state law.

As previously reported, the bill would establish several consumer data rights, including the ability to access, correct, delete, and obtain a copy of personal data, while placing enforcement authority solely with the Attorney General.

Automatic Renewal Disclosure Bill Introduced
Rep. Chris Sells, R-Greenville, has introduced HB610 to establish new disclosure requirements for businesses that offer automatic renewal or continuous service agreements. The legislation would require companies to clearly inform consumers of key terms before enrollment, provide advance notice before renewal charges occur, and allow customers to cancel using the same method by which they originally signed up. Violations would be treated as deceptive trade practices enforceable by the Alabama Attorney General.

Legislation to Expand Public Service Commission Advances Swiftly
Legislation that would restructure the Alabama Public Service Commission (PSC) moved quickly through the Senate this week. SB360 by Sen. Clyde Chambliss, R-Prattville, and co-sponsored by the remaining members of the Senate, would expand the commission from three members to seven and create a Secretary of Energy cabinet position. Supporters say the change would improve regional representation and oversight of utilities across the state.

Following a public hearing and favorable committee report earlier in the week, the Senate gave final passage to the bill. The legislation now moves to the House for consideration.