Retail Report | Alabama Retail Association

The Alabama Legislature is officially off to the races, with lawmakers reconvening this week and wasting no time filing a wide range of bills – 449 to be exact. As is typical in the opening days of session, proposals span taxes, employment policies, consumer protections, and regulatory issues that could have meaningful implications for retailers. Below is a snapshot of key legislation introduced and debated this week.

Sales & Use Tax Exemption Bills Filed
Several bills have been introduced this session that would expand state sales and use tax exemptions for specific products.

HB3 and SB123 would exempt the retail sale of fish or other seafood from state sales and use taxes when the product is sold in its original or unmanufactured state by the producer.
HB15 would exempt optical aids, including eyeglasses and contact lenses prescribed by a licensed physician or optometrist, from state sales and use taxes.
HB87, as substituted, would exempt the sale of corn for deer feed from state sales and use taxes by adding it to the list of existing agricultural-related exemptions. The bills received favorable reports from committees in both chambers.

Each bill allows counties and municipalities to adopt corresponding local exemptions through resolution or ordinance. If enacted, the bills would take effect September 1, 2026.

Employment Bills Targeting Workplace Policies and Leave Requirements Introduced
Lawmakers have introduced several employment-related bills that could affect workplace policies, employee leave requirements, and employer compliance obligations.

HB12, sponsored by Rep. Ernie Yarbrough, R-Trinity would prohibit employers from making employment decisions or restricting customer access based on an individual’s refusal of certain vaccines, drugs, biologics, or facial coverings for reasons of conscience, including religious convictions.
HB21, sponsored by Rep. Patrick Sellers, D-Birmingham, would establish a new employee leave requirement allowing parents or guardians of school-age children to take up to 48 hours of leave annually to attend school-related activities, using unpaid time or existing paid leave. The bill creates new compliance and workforce management considerations, particularly for businesses with hourly employees, small staff, or peak operating periods. It also requires posting a state-issued workplace notice with fines for noncompliance. Enforcement would be handled by the Alabama Department of Workforce, and the act would take effect October 1, 2026.
HB49, sponsored by Rep. Juandalynn Givan, D-Birmingham, would codify federal requirements into state law for expressing breast milk while on the job. Under existing federal law, employers are required to provide a location and reasonable break time for employees to express breast milk for a period of two years after the need arises.

Renewed Push to Increase Minimum Wage
Sen. Robert Stewart, D-Selma, has introduced a bill to establish a state minimum wage of $10.00 per hour for businesses with 51 or more employees. If passed, the law would go into effect on January 1, 2027.

Religious Observance Protections Introduced for Franchisees
Sen. Dan Roberts, R-Birmingham, has introduced a measure 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 specified circumstances.

The exceptions include:

The original franchise agreement required operation on a religious day,
The franchisee agrees to the operation on a religious day, or
The franchise locations are expanded and the agreement setting forth the expansion requires the operation on a religious day.

SNAP Policy Changes and Funding Pressures Emerge
A bill sponsored by Rep. Reed Ingram, R–Matthews, would require the Alabama Department of Human Resources (DHR) to seek federal approval to prohibit the use of SNAP benefits for the purchase of soda, energy drinks, candy, and prepared desserts. The bill was carried over by the House Health Standing Committee on Wednesday as details continue to be discussed. Several states have sought and received similar waivers under the Trump administration. A similar proposal is also expected to be introduced by Sen. Arthur Orr, R–Decatur.

While some proposals would restrict SNAP-eligible purchases, other legislation would expand them. HB44, sponsored by Rep. Donna Givens, R–Loxley, would require DHR to seek federal approval to allow SNAP benefits to be used to purchase hot rotisserie chickens—an item currently excluded under federal rules.

Both measures, if adopted, would take effect on October 1, 2026, and would require DHR to annually resubmit waiver requests if initially denied.

In addition to changes affecting SNAP eligibility, lawmakers are also considering legislation related to program funding following passage of the One Big Beautiful Bill. SB152, sponsored by Sen. Greg Albritton, R–Atmore, and HB224, sponsored by Rep. A.J. McCampbell, D–Gallion, would increase the amount of sales and use tax revenue directed to DHR for SNAP administration from 5 percent to 7.5 percent of the value of benefits issued statewide. Alabama is expected to spend about $40 million in new costs to support SNAP in fiscal year 2027, however budget officials warn that under current calculations, the state could ultimately be responsible for between $174 million to $200 million annually.

Bills Filed in Response to SSUT Litigation
The introduction of SB36 and SB37 follows the filing of a lawsuit by several of Alabama’s largest municipalities challenging the state’s Simplified Sellers Use Tax (SSUT) structure and its distribution of online sales tax revenue. Senate Finance and Taxation General Fund Chairman Greg Albritton, R-Atmore, has described the lawsuit as a political challenge to legislative authority and warned that such actions carry repercussions, positioning the bills as a statement of legislative control over tax policy rather than measures expected to advance.

SB36 would allow Alabama residents to seek annual refunds of municipal sales and use taxes paid on purchases made outside their city of residence, with taxes still collected at the point of sale.
SB37 would exempt Alabama residents from municipal sales and use taxes at the point of sale for purchases made outside their city of residence, shifting compliance and residency verification to retailers.

Ad Valorem Tax Reappraisal Proposal Introduced
Rep. Curtis Travis, D-Tuscaloosa, has introduced HB85 to provide for periodic reappraisal of all property in Alabama for the purpose of assessing ad valorem taxes. This bill would require that Class II, which includes business personal property, and Class III real property to be reappraised no more than every three years. The bill also stipulates that any increase in value over the previous assessment would be phased in over the subsequent three years.

Bill to Provide Procedures for Establishing and Increasing Local Taxes and Fees Introduced
SB148, sponsored by Sen. Gerald Allen, R-Cottondale, requires local governments that wish to impose a new tax or license fee, or to increase an existing tax or license fee, to provide at least a 30 days’ notice and hold a public hearing prior to consideration.

Consumer Protection Proposals Introduced and Debated
Rep. Chris Sells, R-Greenville, has introduced HB161 to establish new consumer protection requirements for mobile app stores and app developers related to age verification and parental consent for minors. The bill would require verification of user age categories, link minor accounts to verified parental accounts, and obtain parental consent before minors could download apps or make in-app purchases. The House State Government Committee held a public hearing on the legislation and voted to approve the bill. ARA is working closely with the bill sponsor and affected parties to reduce potential impacts on retailers.

HB219, sponsored by Rep. Mike Shaw, R-Vestavia Hills, similarly focuses on age-based safeguards in digital marketplaces by requiring app store operators to generate and share age signals with app developers to determine a user’s age category of covered applications.

Vaping Restrictions Expanded to Mirror Smoking Bans
Sen. Gerald Allen, R-Cottondale, has introduced SB9 to prohibit the smoking of electronic nicotine delivery systems in the same locations that the smoking of tobacco products is currently prohibited.

Board of Pharmacy Sunset Extension Advances and Other Pharmacy Related Bills Introduced
SB100, sponsored by Sen. Keith Kelley, R-Anniston, would extend the Alabama State Board of Pharmacy until October 1, 2027, and make changes to revise the appointing authority for one at-large board member. The board’s reauthorization comes amid a history of legislative scrutiny, including past audit findings and contentious sunset reviews. While this legislation largely maintains the status quo, it reflects lawmakers’ continued interest in closely monitoring the Board’s operations. The bill received a favorable report from the Senate Fiscal Responsibility and Economic Development Committee and unanimous approval by the Senate. The bill will now travel to the House for further consideration.

Other pharmacy-related bills introduced include:

HB127, sponsored by Rep. Chip Brown, R-Mobile, would prohibit punitive action against pharmacists that recommend or dispense drugs for off-label use. The bill also would permit over-the-counter sale of both Ivermectin and Hydroxychloroquine.

HB146, sponsored by Rep. Phillip Rigsby, R-Huntsville, 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.
SB1, sponsored by Sen. April Weaver, R-Alabaster, would provide that only nonpsychoactive cannabinoids are exempt from the Schedule I controlled substances list, while all psychoactive cannabinoids would be classified as controlled substances. It further restricts the sale of ingestible or topical products containing cannabidiol (CBD) or other nonpsychoactive cannabinoids found in or derived from hemp to licensed pharmacies that have obtained certification from the Alabama State Board of Pharmacy.

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