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HB526 • 2026

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

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 official source material does not provide specific details on enforcement or penalties for non-compliance by businesses.

Cash Payment Requirement for Businesses

This bill requires businesses with at least six employees to accept cash as payment for in-person purchases, but allows certain exceptions.

What This Bill Does

  • Requires businesses that employ at least six people to take cash when someone buys something from them in person.
  • Does not apply to airport stores if there are more than two such stores and only one of them takes cash.
  • Exempts parking facilities owned by cities, even if they're run by others.
  • Allows car rental companies to refuse cash but must accept cashier's or certified checks instead.
  • Permits certain retail businesses and universities to convert cash into prepaid credit cards for transactions.

Who It Names or Affects

  • Businesses with at least six employees
  • Customers who want to pay in cash

Terms To Know

Legal Tender
Money that can be used to pay for goods and services or to settle debts.
In-person transaction
A purchase made face-to-face, not online or over the phone.

Limits and Unknowns

  • The bill does not specify what happens if a business breaks this rule.
  • It is unclear how strictly airports with more than two stores selling goods will enforce cash acceptance rules.
  • Some businesses are exempt from accepting cash, which might confuse customers.

Bill History

  1. 2026-02-26 House

    Pending Committee Action in House of Origin

  2. 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
Page 3
($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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