Senate Bill 40 Alabama 2026 Session

Summary

Primary Sponsor

Sam GivhanSenator

Republican

Session

2026 Regular Session

Title

Contract review committee; recommendation that the Governor not sign contracts under review provided

Summary

SB40 would empower Alabama's Contract Review Committee to review private-service contracts and, if warranted, recommend that the Governor not sign them.

What This Bill Does

It amends Section 29-2-41 to let the committee review contracts and to issue a recommendation that the Governor not sign a contract under review. It requires state departments to submit proposed contracts (or a letter of intent in lieu of a contract) and cost estimates to the committee, and allows hearings to be held within 45 days with a possible extension. If a contract is made in violation without prior review, it is void ab initio. The act also provides the committee with subpoena power and establishes regular monthly meetings and organizational procedures, along with updating language for current style.

Who It Affects

• State departments and agencies: must submit proposed contracts (or letters of intent) and cost estimates to the Contract Review Committee for review.
• Governor: may receive a formal recommendation from the committee not to sign a contract under review.
• Contract Review Permanent Legislative Oversight Committee: gains authority to review contracts, hold hearings, issue subpoenas, and oversee contract compliance.
• Department of Examiners of Public Accounts: must provide assistance and relevant information to the committee.
• State government and taxpayers: potential increased oversight and protection against unreviewed contracts.

Key Provisions

• The committee may recommend that the Governor not sign a contract under review.
• Departments must submit proposed contracts and cost estimates to the committee; a letter of intent can be submitted in lieu of a contract, with the actual contract described to the committee upon execution.
• Any contract made in violation of this section without prior review shall be void ab initio.
• The committee may hold hearings and review contracts within 45 days after submission, with up to 45 days allowed for extended review after a meeting.
• The committee has subpoena power to obtain witnesses and documents needed for its review.
• The act becomes effective on October 1, 2026 and includes nonsubstantive technical revisions to update language.

AI-generated summary using openai/gpt-5-nano-2025-08-07 on Mar 18, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Legislature