Senate Bill 365 Alabama 2026 Session

Updated Mar 19, 2026

Notable

Summary

Primary Sponsor: Jay HoveySenator
Republican
Session: 2026 Regular Session
Title: Legal tender; authorizing the rounding of in-person cash transactions to the nearest five cents
Summary: SB365 would authorize rounding in-person cash transactions to the nearest five cents in Alabama.
What This Bill Does
If enacted, the bill would let merchants round the total amount of an in-person cash transaction to the nearest five cents using a rule set based on the final cents digit. The rules are: 1-2 round down to 0; 3-4 round up to 5; 6-7 round down to 5; 8-9 round up to 0; 0 or 5 stay the same. The rounding does not change prices, taxes, or other charges, and applies only to cash payments. If a transaction uses both cash and another payment method, rounding applies only to the cash portion, and non-cash payments are not affected. The Department of Revenue must post notice on its website about when rounding can begin, and the act would take effect immediately.

Who It Affects
Cash-paying customers in Alabama would have their in-person cash transactions rounded to the nearest five cents.
Retailers and other in-person merchants handling cash would implement the rounding rules for the cash portion of transactions.

Key Provisions
Rounding of in-person cash transactions to the nearest five cents using a specified cents-digit rule.
Rounding rules: 1-2 -> down to 0; 3-4 -> up to 5; 6-7 -> down to 5; 8-9 -> up to 0; 0 or 5 -> no rounding.
Rounding does not alter sale price, sales tax, or any surcharges/fees, and does not apply to non-cash payments.
If a transaction uses both cash and another payment method, only the cash portion is rounded.
Government payments are not affected by the rounding.
The Department of Revenue must post a notice on its website about when rounding can begin.
The act becomes effective immediately.

AI-generated summary using openai/gpt-5-nano-2025-08-07 on Mar 11, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Consumer Protection