HB 338 — Relating to public contracts; to provide circumstances under which a conflict of interest exists in the procurement of a public contract; to provide criminal penalties for a violation; and in connection therewith would have as its purpose or effect the requirement of a new or increased expenditure of local funds within the meaning of Section 111.05 of the Constitution of Alabama of 2022.

HB338 INTRODUCEDENGROSSED Y19X26-1Y19X26-2 By Representatives Lipscomb, Paschal, Marques, Sorrells, 3 Brown, Smith, Stringer, Colvin, Woods, Faulkner, Kitchens, Wadsworth, Underwood, Pettus, Rehm, Oliver, Shaw, Robertson, Hulsey, Butler, Harrison, Hammett, DuBose, Wood (D), Yarbrough, Sellers, Ingram, Shirey, Holk-Jones, Givens, Gidley, Lomax, Kirkland, Fincher, Stubbs, Bolton, Easterbrook, Starnes, Mooney, Reynolds, Paramore, Carns, Standridge, Crawford, Kiel, Collins, Stadthagen, Shedd RFD:

18-Apr-23 Page2023 0Regular Y19X26-1Session 04/18/2023Page CMH0 (L)bmHB338 2023-1082Engrossed 2 4 SYNOPSIS:6 A BILL TO BE ENTITLED AN ACT Relating to public contracts;

Under existing law, the Code of Ethics prohibits certain public employees and officials engaging in certain unethical acts and practices.

Specifically, public officials and public employees may not enter into any contract to provide goods or services when the contract is to be paid out of public funds, unless certain requirements are satisfied.

This bill would provide that when an individual, through a public contract, provides services as a design professional to a state agency, whether as an employee or a contractor, a conflict of interest exists if the individual is also employed by, or contractor to, a vendor for any materials, products, or other tangible property used for or to be incorporated into the design of that public contract.

This bill would also provide that a violation would be a violation of the state Ethics Law.

Section 111.05 of the Constitution of Alabama of 2022, prohibits a general law whose purpose or effect would be to require a new or increased expenditure of local funds from becoming effective with regard to a local governmental entity without enactment by a 2/3 vote unless:

it comes within one of a number of specified exceptions;

it is approved by the affected Page 1 HB338 INTRODUCED entity;

or the Legislature appropriates funds, or provides a local source of revenue, to the entity for the purpose.

The purpose or effect of this bill would be to require a new or increased expenditure of local funds within the meaning of the amendment.

However, the bill does not require approval of a local governmental entity or enactment by a 2/3 vote to become effective because it comes within one of the specified exceptions contained in the amendment.

A BILL TO BE ENTITLED AN ACT Relating to public contracts;

(a) When an individual, through a public contract, provides services as a building construction design professional, as defined under Section 41-9A-3, Code of Alabama 1975, or anyone assembling bid documents, whether as an employee or a contractor,contractor or consultant, a conflict of interest exists Page 2 HB338 INTRODUCED if the individual is also employed by, or contractor to, a vendor for any materials, products, or other tangible property used for or to be incorporated into the design of that public contract.contract for building construction.

Page 1 HB338 Engrossed Section 2.

Page 32 HB338 Engrossed House of Representatives Read for the first time and referred ................18-Apr-23 to the House of Representatives committee on Ethics and Campaign Finance Read for the second time and placed ................03-May-23 on the calendar:

amendment Read for the third time and passed ................23-May-23 as amended Yeas 102 Nays 0 Abstains 0 John Treadwell Clerk Page 3