SB193 Contract Review Permanent Legislative Oversight Committee…

Plain English Breakdown

The bill text confirms an effective date of October 1, 2026, but the provided metadata lists 'Pending Committee Action' and a future last action date. The summary reflects the content of the enacted text as written in Section 2.

SB193: Expanding Contract Review for State Agencies and Licensing Boards

This bill expands the review power of a legislative committee to include contracts from occupational licensing boards and removes limits on which types of state funds must be reviewed.

What This Bill Does

Requires all occupational and professional licensing board or commission funds used for personal or professional services contracts to undergo contract review.
Removes the rule that only contracts paid with specific 'state warrant' funds need committee review, expanding it to other appropriated state or federal funds.
Allows departments to submit a letter of intent instead of a full proposed contract for initial review.
Sets a 45-day limit for the committee to hold hearings on submitted contracts or letters of intent; if no hearing is held in that time, the contract is deemed reviewed.
Declares any state contract void from the beginning if it is signed without prior committee review.

Who It Names or Affects

The Contract Review Permanent Legislative Oversight Committee
State departments and agencies entering into service contracts
Occupational and professional licensing boards or commissions

Terms To Know

Contract Review Permanent Legislative Oversight Committee: A group of lawmakers responsible for reviewing state spending on personal or professional services.
State warrant: An official order to pay money from the state treasury, which previously limited what contracts could be reviewed under this law.
Void ab initio: A legal term meaning a contract is considered invalid from the very beginning if rules are not followed.

Limits and Unknowns

The bill does not specify how much money will be spent on these new reviews.
It is unclear which specific licensing boards exist until they submit contracts for review, though all such boards are included in the definition of state departments.

Official Summary Text

Contract Review Permanent Legislative Oversight Committee, review of personal or professional services contracts, limitation that funds be issued on a state warrant removed, occupational and professional licensing boards included as state entities

Current Bill Text

Read the full stored bill text

SB193 INTRODUCED
Page 0
SB193
G3UKK26-1
By Senators Roberts, Elliott, Albritton, Beasley
RFD: Fiscal Responsibility and Economic Development
First Read: 21-Jan-26
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G3UKK26-1 09/15/2025 KMS (L)cr 2025-2705
Page 1
First Read: 21-Jan-26
SYNOPSIS:
Under existing law, the Contract Review
Permanent Legislative Oversight Committee is
responsible for reviewing state contracts for personal
or professional services with private entities or
individuals to be paid out of appropriated state or
federal funds.
This bill would require all occupational and
professional licensing board or commission funds to be
subject to review.
This bill would also remove the requirement that
the review of personal or professional services
contracts be limited to those contracts paid out of
appropriated funds issued on a state warrant.
A BILL
TO BE ENTITLED
AN ACT
Relating to the Contract Review Permanent Legislative
Oversight Committee; to amend Section 29-2-41, Code of Alabama
1975, to require all occupational and professional licensing
board, commission, and agency funds to be subject to review;
and to remove the requirement that the review of personal or
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SB193 INTRODUCED
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and to remove the requirement that the review of personal or
professional services contracts be limited to those contracts
paid out of appropriated funds issued on a state warrant.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Section 29-2-41 of the Code of Alabama 1975,
is amended to read as follows:
"§29-2-41
(a) Each member of the committee shall be entitled to
regular legislative compensation, per diem, and travel
expenses for each day he or she attends a meeting of the
committee, which shall be paid out of the funds appropriated
to the use of the Legislature, on warrants drawn on the state
Comptroller upon requisition signed by the committee's chair.
Members shall not receive additional compensation or per diem
when the Legislature is in session. The Department of
Examiners of Public Accounts shall furnish assistance and any
relevant information to the committee.
(b)(1) The committee shall have the responsibility of
reviewing contracts for personal or professional services with
private entities or individuals to be paid out of appropriated
funds, federal or state, on a state warrant issued as
recompense for those services.
(2) Each state department entering into a contract to
be paid out of appropriated funds, federal or state, on a
state warrant which is notified by the committee, shall submit
to the committee any proposed contract for personal or
professional services. Each contract shall be accompanied by
an itemization of the total cost estimate of the contract.
(c) A department, in lieu of the proposed contract, may
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SB193 INTRODUCED
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(c) A department, in lieu of the proposed contract, may
submit to the committee a letter of intent to contract. A
letter of intent to contract shall indicate the contracting
parties, the services to be performed, an itemization of the
total cost estimate of the contract, and such other
information as the department may deem pertinent to the
committee review of the contract. If a department elects to
submit a letter of intent to contract in lieu of a proposed
contract, the department shall be required to submit to the
committee for its information the contract described in the
letter of intent upon the execution of the contract.
(d) The committee shall hold a hearing to review and
comment where necessary on any contract or letter of intent to
contract within a reasonable time not to exceed 45 days after
a department has submitted the contract or letter of intent to
contract to the committee. If the committee fails to hold a
hearing to review a contract or letter of intent to contract
within the 45-day time period, the contract shall be deemed to
have been reviewed in compliance with this section. The
committee may hold a contract considered at a meeting for up
to 45 days following the meeting to review and comment on the
contract.
(e) Any contract made by the state or any of its
agencies or departments in violation of this section and
without prior review by the committee of either the contract
or the letter of intent to contract shall be void ab initio.
(f) The committee may issue subpoenas for any witnesses
and require the production of any documents or contracts the
committee deems necessary to examine in order to conduct its
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SB193 INTRODUCED
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committee deems necessary to examine in order to conduct its
duties.
(g) The committee shall organize itself at the first
meeting following a new quadrennium and elect from among its
membership a chair and a vice-chair vice chair . Any committee
member reelected to a new quadrennium shall continue to serve
on the committee until such time the committee reorganizes
itself.
(h) The committee shall hold regular meetings at least
once each month, the regular meetings to be held during the
first week of each month.
(i) For purposes of this section, the term "state
department" or "department" includes, but is not limited to,
each occupational or professional licensing board, commission,
or agency. "
Section 2. This act shall become effective on October
1, 2026.
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