The Alabama Legislative Contract Review Committee delayed a series of state contracts at its monthly meeting last week.
On Thursday, lawmakers placed separate holds on legal services agreements and on administrative contracts involving several occupational licensing boards. While the committee’s authority is limited to placing 45-day holds, its actions often reflect concerns about transparency and cost justification.
One set of delays involved four legal contracts, three proposed by the Legislative Services Agency and one proposed by the Alabama Board of Pharmacy.
Senator Greg Albritton, chairman of the Senate General Fund budget committee, who held the contracts, said he was reluctant to advance agreements tied to litigation that could carry significant fiscal consequences.
The hesitation reflected his frustration with the ongoing litigation over simplified sales use taxes. In August, the cities of Tuscaloosa and Mountain Brook and the Tuscaloosa City School System filed a lawsuit claiming the SSUT violates the state’s constitution.
“My perception, personally, is that this lawsuit is dangerous. It threatens the fiscal viability of the state that we, in the legislature, have worked hard to achieve
The online sales-tax lawsuit has created uncertainty around a revenue formula used by both the state and local governments. Albritton’s concern was not with the legal providers themselves, but with judicial bodies deciding the state’s tax policy.
A separate round of holds targeted roughly $550,000 in contracts between multiple licensing boards and a private management services firm.
Smith Warren Management Services has maintained longstanding relationships with several boards, but the committee questioned whether the current arrangement remains the most effective way to manage these responsibilities.
Smith Warren, headed by Keith Warren and Kevin Smith, handles administrative functions for several Alabama occupational licensing boards, which are established in state law but often operate without dedicated staff and depend on outside vendors to manage their day-to-day work.
Senator Chris Elliott cited issues with the short duration of the contracts, the administrative friction created by annual renewals and past disputes between the vendor and boards.
Elliott questioned whether some boards had become overly dependent on a single contractor whose work not only shapes their operations but also influences the experience of license holders. While there was no indication of wrongdoing, the concerns centered on whether the state should expect greater stability and efficiency in its agreements.
“This is not the most efficient way to administer these boards. I’m going to question, there’s a representative of the governor’s office in here, whether or not this vendor should still be a qualified vendor, given the history. I’m going to hold these contracts until we can have further conversations with the Department of Finance, Comptroller, and the governor’s office,” said Elliott.
