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AlabamaSB582026 Regular SessionSenateWALLET

Public Corruption; convicted public servant's retirement contributions forfeited to pay restitution; convicted public servant's compensation while on leave with pay forfeited

Sponsored By: Arthur Orr (Republican)

Enacted

Government Administration

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 2 costs, 0 mixed.

Public servants face retirement benefit losses

Beginning October 1, 2026, covered Alabama public servants face retirement benefit forfeiture after a guilty plea, no-contest plea, or final trial-court judgment. This covers active or inactive members with earned benefits in the Employees' Retirement System, Teachers' Retirement System, Judicial Retirement Fund, and other Retirement Systems of Alabama plans. Qualifying crimes include public-service-related felonies and offenses listed in Alabama Code Title 13A, Chapter 6, Article 4A or Chapter 12, Article 4, Division 4. Covered retirees' benefit payments are suspended. Forfeited contributions and interest pay restitution to harmed public agencies, institutions, or other entities; any balance is refunded. For retirees, this uses remaining contributions and interest not already paid out in benefits. Prosecutors must promptly notify the retirement boards in writing, or the state or county for someone holding a supernumerary position. Missing notice does not delay forfeiture or restitution. Retirement system officers and employees have immunity for actions under this section, and other legal remedies remain available.

Convicted public employees must repay compensation

Beginning October 1, 2026, Alabama public officials and employees face a compensation repayment rule tied to paid leave. It applies when they are placed on paid leave during an investigation for a felony connected with their public service. Upon conviction for that felony, they must repay all compensation received since the offense was committed. The repayment period starts with the offense, not the start of paid leave. The law sets no dollar cap.

Publicly funded defense stops after indictment

Beginning October 1, 2026, Alabama limits publicly funded legal defense for public officials and employees investigated for public-service-related felonies. Before indictment, public funds can pay for the defense only when another law authorizes it. After indictment for that felony, public funds cannot pay for the defense.

Sponsors & Cosponsors

Sponsor

  • Arthur Orr

    Republican • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 299 • No: 0

House vote • 3/19/2026

Third Reading in Second House

Yes: 100 • No: 0

House vote • 3/19/2026

Motion to Read a Third Time and Pass - Adopted Roll Call 1004

Yes: 100 • No: 0

Senate vote • 2/3/2026

Orr motion to Adopt - Adopted Roll Call 217

Yes: 33 • No: 0

Senate vote • 2/3/2026

Third Reading in House of Origin

Yes: 33 • No: 0

Senate vote • 2/3/2026

Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 218

Yes: 33 • No: 0

Actions Timeline

  1. Enacted

    4/2/2026Senate

  2. Third Reading in Second House

    3/19/2026House

  3. Motion to Read a Third Time and Pass - Adopted Roll Call 1004

    3/19/2026House

  4. Ready to Enroll

    3/19/2026Senate

  5. Enrolled

    3/19/2026Senate

  6. Signature Requested

    3/19/2026House

  7. Delivered to Governor

    3/19/2026Senate

  8. Reported Out of Committee Second House

    2/25/2026House

  9. Read for the Second Time and placed on the Calendar

    2/25/2026House

  10. Third Reading in House of Origin

    2/3/2026Senate

  11. Orr 1st Amendment Offered

    2/3/2026Senate

  12. Orr motion to Adopt - Adopted Roll Call 217

    2/3/2026Senate

  13. Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 218

    2/3/2026Senate

  14. Engrossed

    2/3/2026Senate

  15. Read for the first time and referred to the House Committee on Ways and Means General Fund

    2/3/2026House

  16. Pending Committee Action in Second House

    2/3/2026House

  17. Reported Out of Committee House of Origin

    1/21/2026Senate

  18. Read for the Second Time and placed on the Calendar

    1/21/2026Senate

  19. Read for the first time and referred to the Senate Committee on Finance and Taxation General Fund

    1/13/2026Senate

  20. Pending Committee Action in House of Origin

    1/13/2026Senate

Bill Text

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