Legal Tender; to require certain persons who sell or offer goods and services to accept cash as payment, exceptions provided

Housing Labor

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Harrison
Last action: 2026-02-26
Official status: Pending Committee Action in House of Origin
Effective date: Not listed

Plain English Breakdown

The bill text does not define 'regular business hours' for colleges or airports beyond general operation times.

HB526: Cash Payment Requirements for Businesses

This bill requires businesses with six or more employees to accept cash for in-person purchases, while listing specific exceptions where this rule does not apply.

What This Bill Does

Requires entities employing at least six people to accept cash as payment for goods and services sold in person.
Prohibits these entities from forcing buyers to use credit cards or banning the use of cash entirely.
Exempts businesses located inside airports, though terminals with more than two vendors must ensure that two of them still take cash.
Allows car rental companies to refuse cash if they accept cashier's checks or certified checks instead.
Permits retail stores and colleges to skip direct cash acceptance if they offer free devices on-site that turn cash into prepaid cards without fees and with a maximum $5 minimum deposit.

Who It Names or Affects

Businesses in Alabama that employ six or more individuals
Buyers making purchases face-to-face at these businesses
Airport terminals, parking facilities, car rental agencies, retail stores, and colleges listed as exceptions

Terms To Know

In-person transaction: A purchase where the buyer meets physically with the seller to exchange goods or services.
Cashier's check: A payment guaranteed by a bank, which car rental companies must accept if they do not take cash.

Limits and Unknowns

The law does not take effect until October 1, 2026.
It is unclear how the state will enforce these rules or what penalties exist for breaking them based on this text alone.
The bill does not specify if it applies to online sales that are picked up in person.

Bill History

2026-02-26 House
Pending Committee Action in House of Origin
2026-02-26 House
Read for the first time and referred to the House Committee on Commerce and Small Business

Official Summary Text

Legal Tender; to require certain persons who sell or offer goods and services to accept cash as payment, exceptions provided

Current Bill Text

Read the full stored bill text

HB526 INTRODUCED
Page 0
HB526
KH62W5A-1
By Representatives Harrison, Butler, Robertson, Whorton,
Hurst, Stringer, Brinyark, Kirkland, Colvin, Chestnut,
England, Gray, McClammy, Fincher, Bolton, Travis, DuBose,
Barnes, Crawford, Sellers, Smith
RFD: Commerce and Small Business
First Read: 26-Feb-26
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KH62W5A-1 01/29/2026 JWB (L)JWB 2026-236
Page 1
First Read: 26-Feb-26
SYNOPSIS:
This bill would require any entity that employs
at least six individuals to accept cash as payment for
in-person purchases, subject to certain exceptions.
A BILL
TO BE ENTITLED
AN ACT
Relating to legal tender; to require any entity that
employs at least six individuals to accept cash as payment for
in-person purchases; and to provide exceptions.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. (a) An entity that employs at least six
individuals and sells or offers for sale goods or services may
not require a buyer to pay using credit, or prohibit cash as
payment, in order to purchase the goods or services through an
in-person transaction. The entity shall accept cash when
offered by the buyer as payment.
(b) Subsection (a) does not apply to the following
entities:
(1) Any entity selling or offering for sale goods or
services at an airport. If a terminal of an airport has more
than two entities selling or offering for sale goods or
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HB526 INTRODUCED
Page 2
than two entities selling or offering for sale goods or
services, then the airport shall require two of the entities
to accept cash as payment.
(2) Any parking facility owned by a municipality,
regardless of whether the facility is operated by the
municipality, a parking authority, or an independent third
party.
(3) Any parking facility that only accepts mobile
payment.
(4) Any entity in the business of renting motor
vehicles. If an entity does not accept cash under this
subdivision, the entity shall accept a cashier's check or a
certified check if offered by a buyer as payment.
(5) Any retail entity that provides a device on the
entity's premises which converts cash into a prepaid credit
card and allows a buyer to complete a transaction with the
entity using the prepaid credit card. The device may not
charge a fee or require a minimum deposit amount greater than
five dollars ($5). Upon request of the buyer, the device shall
provide the buyer with a paper or electronic receipt
indicating the amount of cash the buyer deposited onto the
prepaid credit card.
(6) Any public institution of higher education that
provides a location, on campus and during regular business
hours, which converts cash into a prepaid credit card and
allows a buyer to complete a transaction on campus using the
prepaid credit card. The device may not charge a fee or
require a minimum deposit amount greater than five dollars
($5). Upon request of the buyer, the device shall provide the
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HB526 INTRODUCED
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($5). Upon request of the buyer, the device shall provide the
buyer with a paper or electronic receipt indicating the amount
of cash the buyer deposited onto the prepaid credit card.
Section 2. This act shall become effective on October
1, 2026.
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