Banking and Insurance

This bill allows cash transactions in Alabama to be rounded to the nearest five cents, affecting businesses and consumers who use physical currency for purchases. The rounding follows specific rules based on the final digit of the transaction amount, with no changes to sales prices, taxes, or fees. It applies only to in-person cash payments and excludes electronic payments, checks, and transactions with government entities. The Department of Revenue must post a notice on its website about this new authorization, which takes effect immediately upon passage.

HB 361, the Alabama Living Donor Protection Act, prohibits insurers from denying or limiting disability, life, or long-term care insurance coverage to living organ donors. It requires public employers (state/local government) to provide up to 80 hours of paid medical leave for employees donating organs, with no retaliation allowed. Private employers offering similar paid leave (minimum 80 hours or 15 days) qualify for a 25% tax credit (capped at $2,000 annually) for tax years starting in 2027. The bill directly affects organ donors, insurers, public employees, and private sector employers. It aims to remove financial barriers to donation through concrete protections and incentives.

HB 372 authorizes the Alabama Department of Insurance to create two new exempt personnel positions within its Pharmacy Benefits Manager Division. These positions would be exempt from the state Merit System (meaning they wouldn't follow standard civil service hiring rules) and their compensation would be set by the Insurance Commissioner. The bill does not change existing insurance regulations but adds these specific roles to the division's staffing structure, effective June 1, 2026.

HB 55 requires Alabama financial institutions (like banks and credit unions) to allow homeowners with mortgages to choose biweekly or semi-monthly payment schedules. Homeowners could also make extra payments directly to their mortgage principal without penalties. The bill specifies that any additional payments beyond the regular amount would first cover escrow shortages (for taxes/insurance) before reducing the principal. This policy directly affects homeowners seeking more flexible payment options and lenders operating in Alabama.

SB 219 changes where service contract provider registration fees are deposited. Currently, these fees ($200 annually) go into the Service Contract Revolving Fund, but the bill redirects them to the Special Examination Revolving Fund instead. The bill also requires any unspent balance in the old fund to transfer to the new fund and clarifies that fee adjustments will follow the Consumer Price Index as currently required. This affects service contract providers - businesses that sell contracts covering repair, maintenance, or replacement of purchased goods - by altering fund management without changing fees or registration requirements.