House Bill 273 Alabama 2026 Session

Updated Feb 17, 2026

Summary

Primary Sponsor: Kelvin DatcherRepresentative
Democrat
Session: 2026 Regular Session
Title: Municipal employees; eligible to receive grant funds paid through municipal treasury in certain circumstances
Summary: HB273 would allow certain municipal employees to receive grant funds that pass through the municipal treasury if specific safeguards are met, while keeping elected officials subject to the existing prohibition.
What This Bill Does
Under current law, municipal officers and employees may not have a financial interest in contracts paid from the treasury. HB273 creates an exception that lets an employee receive funds from a grant program when the funds flow through the treasury, as long as the employee’s benefit mirrors that of other recipients and the employee does not participate in deciding eligibility. The exception does not apply to any municipal elected official. If enacted, the law would take effect October 1, 2026, and violations would be misdemeanors with fines of $50 to $1,000 and up to six months of hard labor.

Who It Affects
Municipal employees who are otherwise qualified, and who do not influence grant eligibility, may receive grant funds flowing through the municipal treasury.
Municipal elected officials remain barred from receiving such funds or from acting as a surety for contracts with the municipality.

Key Provisions
Adds an exception to allow eligible municipal employees to receive funds from grant programs flowing through the municipal treasury.
Conditions for the exception: (1) the employee's benefit is similar to other grant recipients; and (2) the employee does not participate in granting eligibility decisions.
Excludes municipal elected officials from the exception.
Effective date set for October 1, 2026.
Violations remain a misdemeanor with fines from $50 to $1,000 and up to six months of hard labor.
Updates language to current drafting style.

AI-generated summary using openai/gpt-5-nano on Feb 11, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Counties & Municipalities