115302-1:g:11/18/2009:GOV-JR/ebo-pa
| SYNOPSIS: | This bill provides for legislative findings; prohibits public funds from being passed through from one entity to another at the direction of a member of the Legislature; defines "pass-through" appropriations; expressly protects the right of a legislator to lobby for or offer support for a legal and valid program of an agency; provides for reporting of grants; and provides penalties for violations. |
| Amendment 621 of the Constitution of Alabama of 1901, now appearing as Section 111.05 of the Official Recompilation of the Constitution of Alabama of 1901, as amended, 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 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. |
To provide for legislative findings; to prohibit public funds from being passed through from one entity to another at the direction of a member of the Legislature; to define "pass-through" appropriations; to expressly protect the right of a legislator to lobby for or offer support for a legal and valid program of an agency; to provide for reporting of grants; to provide penalties for violations; 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 Amendment 621 of the Constitution of Alabama of 1901, now appearing as Section 111.05 of the Official Recompilation of the Constitution of Alabama of 1901, as amended.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. This act shall be known and may be cited as the Budget Accountability Act.
Section 2. The Legislature recognizes that Alabama citizens demand and deserve accountability for the expenditure of taxpayer funds. The Legislature further recognizes that any member of the Alabama Legislature, as well as any other citizen, can lobby for or offer support for a program administered by an entity that receives public funds. The Legislature further recognizes that while at least two Executive Orders have banned pass-through appropriations, not all entities are effectively included under these Executive Orders.
Section 3. For the purposes of this act, the following terms shall have the following meanings:
(1) AGENCY. Any recipient of State funds.
(2) DIRECTED, DIRECTIVE, or DIRECTION. As used in this act refers to the exercise of control over the selection of projects or grants for which the expenditure of funds are made.
(3) LINE-ITEM APPROPRIATION. A separate reference in an appropriation bill to a proposed expenditure, which is certain as to the recipient(s), the amount, and the purpose of the expenditure.
(4) PASS-THROUGH APPROPRIATIONS. The expenditure of State funds by an agency at the explicit direction of a member of the Legislature, or a person acting on behalf of such member, if such expenditure is not for a purpose specified in a line-item appropriation. The expenditure of funds pursuant to Chapter 24 of Title 41, any federal or state grants or contracts awarded under federal or state guidelines or regulations, and any expenditures under Article 8 of Chapter 2 of Title 29 shall not be considered pass-through appropriations. State Funds transferred between state entities for the same program shall not be considered pass-through appropriations.
Section 4. (a) Pass-through appropriations are prohibited. An agency director, assistant director, executive assistant or any similar direct subordinate performing or permitting a pass-through appropriation shall be subject to disciplinary action and/or dismissal by the appropriate appointing authority.
(b) An agency director, assistant director, executive assistant or any similar direct subordinate who violates this section shall be guilty of a Class C misdemeanor unless the agency director, assistant director, executive assistant or any similar direct subordinate did not know and did not have reason to know of the pass-through appropriation. Acts constituting a violation of this act shall not be the basis for a violation of any other criminal law by the agency director, assistant director, executive assistant or any similar direct subordinate or any other person.
Section 5. The director, assistant director, executive assistant or any similar direct subordinate of any agency shall have an affirmative duty to report to his superior or in the case of an agency director, the Governor of Alabama and the Alabama Ethics Commission any explicit directives regarding a pass-through appropriation and the agency director shall submit a copy of the report to the legislator involved and the presiding officer of each house.
Section 6. Appropriations and expenditures pursuant to line-item appropriations are hereby authorized and permitted and funds appropriated as line-items shall not be rescinded or withheld and may not be modified except in the event of proration.
Section 7. Nothing in this act shall be deemed to prohibit or discourage a member of the Legislature from performing his or her duties. Those duties include the right to protect and promote activities and projects with agency personnel that constitute legal and valid functions of the agency or department. Therefore, any member of the Legislature or any citizen may lobby for or offer support for a program administered by the agency without violating the provisions of this act.
Section 8. Although this bill would have as its purpose or effect the requirement of a new or increased expenditure of local funds, the bill is excluded from further requirements and application under Amendment 621, now appearing as Section 111.05 of the Official Recompilation of the Constitution of Alabama of 1901, as amended, because the bill defines a new crime or amends the definition of an existing crime.
Section 9. This act shall become effective upon its passage and approval by the Governor or upon its otherwise becoming a law.