HB273 • 2026

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

Labor

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Datcher
Last action: 2026-03-10
Official status: Read Second Time in Second House
Effective date: Not listed

Plain English Breakdown

The official source material did not provide details on penalties or distribution methods, so these points were removed or noted as unknowns.

Municipal Employees Can Receive Grant Money

This bill allows municipal employees, especially first responders, to receive grant funds from community development block grants if the money goes through the city's treasury under certain conditions.

What This Bill Does

Changes a law so that municipal employees can get grant money from community programs if specific conditions are met.
Requires that the benefit for the employee must be similar to other people getting the same grant.
Does not allow public officials or their family members to receive these grants.

Who It Names or Affects

Municipal employees, especially first responders
Public officials and their families

Terms To Know

First responder: A person who is the first to arrive at an emergency situation, such as a firefighter or police officer.
Community development block grant: Money given by the government to help improve communities and support local projects.

Limits and Unknowns

The bill does not explain how the grants will be distributed.
It is unclear what happens if an employee breaks this new rule.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

6Y5DB31-1

R 762

Adopted

Plain English: 6Y5DB31-1 01/21/2026 PMG (H) HSE 2025-3644 House County and Municipal Government Reported Substitute for HB273 Page 1 A BILL TO BE ENTITLED AN ACT Relating to municipal employees; to amend Section 11-43-12, Code of Alabama 1975, to provide that a municipal employee may be the recipient of a grant program, even though funds flow through the municipal treasury, if certain conditions are met.

6Y5DB31-1 01/21/2026 PMG (H) HSE 2025-3644 House County and Municipal Government Reported Substitute for HB273 Page 1 A BILL TO BE ENTITLED AN ACT Relating to municipal employees; to amend Section 11-43-12, Code of Alabama 1975, to provide that a municipal employee may be the recipient of a grant program, even though funds flow through the municipal treasury, if certain conditions are met.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA: Section 1.
Section 11-43-12, Code of Alabama 1975, is amended to read as follows: "§11-43-12 (a) No alderman or officer or employee of the municipality shall be have, directly or indirectly , interested a financial interest in any work, business , or contract, the expense, price , or consideration of which is paid from the treasury, nor shall any member of the council or officer of the municipality be surety for any person having a contract, work , or business with such the municipality for the performance of which a surety may be required.
(b) Notwithstanding subsection (a), an employee, if otherwise qualified, is not prohibited from accepting or receiving funds from a community development block grant where 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 6Y5DB31-1 01/21/2026 PMG (H) HSE 2025-3644 House County and Municipal Government Reported Substitute for HB273 Page 2 receiving funds from a community development block grant where the funds flow through the municipal treasury, provided: (1) The benefit to the employee is similar and in a like manner to other recipients of the grant program; and (2) The employee does not play any decision-making role in eligibility for receiving funds from the grant program.

This amendment summary is using official source text because generated interpretation was skipped for this run.

RBR8QYY-1

R 763

Adopted

Plain English: RBR8QYY-1 : 3/5/2026 : THR 1ST JONES AMENDMENT TO HB273 OFFERED BY REPRESENTATIVE JONES Page 1 Replace line 26 on page 1 with the following: (b) Notwithstanding subsection (a), a first responder employed by the municipality, if Replace line 30 on page 2 with the following: (1) The benefit to the first responder is similar and in a Replace line 32 on page 2 with the following: (2) The first responder does not play any decision-making role Replace line 35 on page 2 with the following: any public official, as defined in Section 36-25-1, or any family member of the public official, as defined in Section 36-25-1.

RBR8QYY-1 : 3/5/2026 : THR 1ST JONES AMENDMENT TO HB273 OFFERED BY REPRESENTATIVE JONES Page 1 Replace line 26 on page 1 with the following: (b) Notwithstanding subsection (a), a first responder employed by the municipality, if Replace line 30 on page 2 with the following: (1) The benefit to the first responder is similar and in a Replace line 32 on page 2 with the following: (2) The first responder does not play any decision-making role Replace line 35 on page 2 with the following: any public official, as defined in Section 36-25-1, or any family member of the public official, as defined in Section 36-25-1.
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This amendment summary is using official source text because generated interpretation was skipped for this run.

Bill History

2026-03-10 Senate
Read for the Second Time and placed on the Calendar
2026-03-10 Senate
Reported Out of Committee Second House
2026-03-05 House
Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 764 (Yeas 83, Nays 15)
2026-03-05 House
Motion to Adopt - Adopted Roll Call 763 (Yeas 96, Nays 0)
2026-03-05 House
Motion to Adopt - Adopted Roll Call 762 (Yeas 92, Nays 5)
2026-03-05 House
Third Reading in House of Origin (Yeas 84, Nays 7)
2026-03-05 Senate
Pending Committee Action in Second House
2026-03-05 Senate
Read for the first time and referred to the Senate Committee on County and Municipal Government
2026-03-05 House
Engrossed
2026-03-05 House
Jones 1st Amendment Offered
2026-03-05 House
County and Municipal Government Engrossed Substitute Offered
2026-01-21 House
Read for the Second Time and placed on the Calendar
2026-01-21 House
Reported Out of Committee House of Origin
2026-01-15 House
Pending Committee Action in House of Origin
2026-01-15 House
Read for the first time and referred to the House Committee on County and Municipal Government

Official Summary Text

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

Current Bill Text

Read the full stored bill text

HB273 ENGROSSED
Page 0
HB273
6Y5DB31-2
By Representative Datcher
RFD: County and Municipal Government
First Read: 15-Jan-26
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HB273 Engrossed
Page 1
First Read: 15-Jan-26
A BILL
TO BE ENTITLED
AN ACT
Relating to municipal employees; to amend Section
11-43-12, Code of Alabama 1975, to provide that a municipal
employee may be the recipient of a grant program, even though
funds flow through the municipal treasury, if certain
conditions are met.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Section 11-43-12, Code of Alabama 1975, is
amended to read as follows:
"§11-43-12
(a) No alderman or officer or employee of the
municipality shall be have, directly or indirectly ,
interested a financial interest in any work, business , or
contract, the expense, price , or consideration of which is
paid from the treasury, nor shall any member of the council or
officer of the municipality be surety for any person having a
contract, work , or business with such the municipality for the
performance of which a surety may be required.
(b) Notwithstanding subsection (a), a first responder
employed by the municipality, if otherwise qualified, is not
prohibited from accepting or receiving funds from a community
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HB273 Engrossed
Page 2
prohibited from accepting or receiving funds from a community
development block grant where the funds flow through the
municipal treasury, provided:
(1) The benefit to the first responder is similar and
in a like manner to other recipients of the grant program; and
(2) The first responder does not play any
decision-making role in eligibility for receiving funds from
the grant program.
(c) The exception in subsection (b) is not available to
any public official, as defined in Section 36-25-1, or any
family member of the public official, as defined in Section
36-25-1.
(b)(d) Any person individual who violates any of the
provisions of this section shall be guilty of a misdemeanor
and, on conviction thereof , shall be fined not less than
$50.00 fifty dollars ($50) nor more than $1,000.00 one thousand
dollars ($1,000) , and may also be sentenced to hard labor for
the county for not more than six months."
Section 2. This act shall become effective on October
1, 2026.
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HB273 Engrossed
Page 3
1, 2026.
House of Representatives
Read for the first time and referred
to the House of Representatives
committee on County and Municipal
Government
................15-Jan-26
Read for the second time and placed
on the calendar:
1 amendment
................21-Jan-26
Read for the third time and passed
as amended
Yeas 83
Nays 15
Abs 7
................5-Mar-26
John Treadwell
Clerk
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