HB514 Alabama 2025 Session

Summary

Primary Sponsor

Kelvin DatcherRepresentative

Democrat

Session

2025 Regular Session

Title

Municipal employees; eligible to receive grant funds paid through municipal treasury in certain circumstances

Summary

HB514 would let a municipal employee (not an elected official) receive certain grant funds through the city treasury under specific safeguards, while keeping the general ban on conflicts of interest in place.

What This Bill Does

The bill amends Section 11-43-12 to maintain the general prohibition on municipal officers and employees having financial interests in treasury-funded work or contracts. It creates an exception allowing an employee to receive funds from a grant program that flows through the municipal treasury if the employee’s benefit is similar to other recipients and the employee does not participate in deciding eligibility. The exception does not apply to municipal elected officials. Violations remain a misdemeanor with fines and the possibility of hard labor, and the act would take effect October 1, 2025; the language also updates style.

Who It Affects

• Municipal employees (non-elected) who may receive grant funds through the municipal treasury if conditions are met
• Municipal elected officials who are not eligible for the grant-fund exception
• The municipality and grant programs (e.g., community development block grants) that pass funds through the treasury
• Any individual who violates these provisions (subject to misdemeanor penalties)

Key Provisions

• Keeps existing prohibition on aldermen, officers, and employees having a financial interest in treasury‑funded work, contracts, or surety arrangements
• Creates an exception for employees to receive funds from a grant program flowing through the municipal treasury if: (a) the employee’s benefit is similar to other recipients, and (b) the employee has no decision-making role in grant eligibility
• Specifies the exception is not available to any municipal elected official
• Maintains misdemeanor penalties: fine between $50 and $1,000 and possible hard labor for up to six months
• Effective date: October 1, 2025
• Updates language to current drafting style

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Counties & Municipalities