SB406 Alabama 2011 Session

Summary

Primary Sponsor

Phillip W. Williams

Republican

Session

Regular Session 2011

Title

Public contracts, competitive bids, potential conflict of interest, members and officers of public entities may have financial interest in public contract if contract existed before public service begins or member or officer does not participate in decision process, Sec. 41-16-60 am'd.

Summary

SB406 would allow certain public officials to have a financial interest in publicly bid contracts if the contract existed before they took office or if they do not participate in the decision-making process.

What This Bill Does

The bill adds two exceptions to the rule against officials having a financial interest in public contracts: if the contract was created before the official began serving, or if the official does not participate in, by discussion or vote, the decision-making process. It applies to a wide range of public bodies, including state and local education boards, county commissions, city and county governing bodies, and various utility boards. Violations remain misdemeanors with potential penalties, and willful violations can lead to removal from office.

Who It Affects

• Public officials listed in the statute (e.g., members and officers of state education bodies, state colleges/universities under the State Board of Education, city and county boards of education, district boards of education of independent school districts, county commissions, municipal governing bodies, and instrumentalities such as waterworks, sewer, and gas boards) who participate in the public bidding process.
• The public procurement process and contractors bidding on publicly bid contracts, since the bill creates authorized circumstances under which officials with a financial interest may participate in bidding.

Key Provisions

• Amends Section 41-16-60 to allow financial interest in a publicly bid contract if either (a) the contract or agreement was created prior to the individual's election/appointment, or (b) the individual does not participate in the discussion or vote that creates the financial interest.
• Covers a broad set of public bodies, including state and local education boards, county/city governing bodies, and instrumentalities like water/sewer/gas boards.
• Violations remain a misdemeanor, with penalties up to 12 months in jail and/or a $500 fine, and removal from office for willful violations.
• Effective date: law takes effect immediately after passage and governor's approval.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Public Contracts