SB197 Alabama 2023 Session

Updated Feb 22, 2026

Summary

Primary Sponsor: Arthur OrrSenator
Republican
Session: Regular Session 2023
Title: Relating to state agencies; to require state agencies to take certain measures to prevent fraud before paying benefits to recipients.
Summary: SB197 requires Alabama state agencies that process and pay benefits to consult with the Department of Public Examiners of Public Accounts and adopt fraud-prevention systems before starting a new benefit.
What This Bill Does
Before an agency starts processing or paying benefits for a new program, it must consult with the Department of Public Examiners of Public Accounts to see if there is a system or service that can help detect or prevent fraud. If such a system exists, the agency must decide whether it can be integrated with, modified for, or replace its current systems and use it to the fullest extent practicable. The requirement does not apply to group health benefits.

Who It Affects
State agencies, departments, boards, or commissions that process and pay benefits, who must consult with the Department of Public Examiners of Public Accounts and consider fraud-prevention systems before starting new benefits
Benefit recipients, who may be protected from fraudulent payments through stronger fraud-prevention measures

Key Provisions
Definition of 'benefit' clarifies covered payments and excludes tax credits, tax rebates, tax refunds, and grants that require highly specialized expertise or qualifications
Before processing a new program or newly instituted benefit, agencies must consult with the Department of Public Examiners of Public Accounts to determine if a fraud-detection/prevention system exists
If such a system exists, agencies must assess whether it can be integrated with, modified for, or replace current systems and use it to the fullest extent practicable
Group health benefits are not covered by these requirements
Effective date: the act becomes law on the first day of the third month after its passage and approval

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Public benefits, agencies required to consult with Department of Examiners of Public Accounts before processing claims