SB 138 Alabama Senate · 2026 Regular Session

Franchises; prohibit franchisor from requiring franchisee to operate on a religious day, exceptions provided

SB 138 prohibits franchisors from requiring franchisees to operate on religious days if the franchisee has a sincerely held religious belief, unless specific exceptions apply. These exceptions cover cases where the original franchise agreement already required operation on a religious day, the franchisee later agrees to such a requirement, or the requirement is part of expanding franchise locations. The bill provides remedies for violations, including actual damages, attorney fees, and civil penalties up to $50,000 for repeated offenses. It directly affects franchisees with religious objections and franchisors managing franchise agreements, while excluding motor vehicle and other regulated franchise types.
Bill status signed all 5 stages cleared
Introduction
Jan 2026
Committee Review
Feb 2026
Senate Passage
Feb 2026
House Passage
Apr 2026
Signed into Law
Apr 2026
Introduced Jan 14, 2026 Signed Apr 17, 2026
Maddy AI version diff · 1 comparison

What changed between versions

Introduced Enrolled · 3 edits · Apr 17, 2026
MINOR
The bill transitioned from an introduced draft to an enrolled, final version, incorporating substantive amendments to its definitions and enforcement penalties. The most significant policy change involves the addition of a new exemption category, allowing franchisors to enforce religious day requirements when the franchise is expanded to include new locations. Additionally, the penalties for violations were clarified to include a tiered structure based on the number of violations within specific timeframes.
Scope change
The scope of applicability was expanded to include new types of regulated entities (agents, officers, and field representatives) under the definition of a 'franchisor' and added a specific exemption for franchise expansions.
DEFINITION

The definition of 'FRANCHISOR' was modified to explicitly include agents, officers, and field or area representatives, broadening who can be held liable under the act.

REQUIREMENT

A new exemption was added stating that the prohibition on enforcing religious day operations does not apply if the franchisor and franchisee enter an agreement expanding the number of franchise locations that includes such a requirement.

ENFORCEMENT

The civil penalty structure for violations was modified to specify exact dollar amounts ($10,000 for a first violation, $25,000 for a second within five years, and $50,000 for a third within seven years).

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).
Full legislative history

Actions timeline

Total actions
22
Key actions
9
Committee
4
Amendments
5
Apr 8, 2026
Upper · Passed
Gudger Motion to Concur In and Adopt House Amendment - Adopted Roll Call 1260
upper
Apr 8, 2026
Lower · Passed
Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 1306
lower
Apr 8, 2026
Lower · Passed
Motion to Adopt - Adopted Roll Call 1305
lower
Apr 8, 2026
Introduced
Blackshear 1st Amendment Offered
lower
Apr 8, 2026
Lower · Passed
Motion to Adopt - Adopted Roll Call 1304
lower
Apr 8, 2026
Introduced
Commerce and Small Business Engrossed Substitute Offered (Commerce and Small Business)
lower
Feb 18, 2026
Lower · Passed
Reported Out of Committee Second House (Commerce and Small Business)
lower
Feb 12, 2026
Lower · Passed
Pending Committee Action in Second House (Commerce and Small Business)
lower
Feb 12, 2026
Upper · Passed
Motion to Read a Third Time and Pass - Adopted Roll Call 388
upper
Jan 28, 2026
Upper · Passed
Reported Out of Committee House of Origin
upper
Jan 14, 2026
Upper · Passed
Pending Committee Action in House of Origin (Fiscal Responsibility and Economic Development)
upper
1 primary · 0 co-sponsors

Sponsors

Role
Legislator
Party
State
District
P
Photo of Dan Roberts
Dan Roberts
RRepublican
AL
15