Alabama Attorney General Opinion 1979-0049

# THE ATTORNEY GENERAL STATE OF ALABAMA · MONTGOMERY, ALABAMA 36 [LOGO] 79-00049 CHARLES A. GRADDICK ATTORNEY GENERAL February 1, 1979 Mr. James L. Sparks City Clerk - Treasurer City of Sheffield P. O. Drawer Q Sheffield, Alabama 35660 This opinion has been modified by an opinion issued to Valerie Bullard, Internal Auditor, City of Dothan, dated 12-4-2000, A.G. No. 2001-042. Municipalities - Conflicts of Interest - Offices and Officers City may not do business with a corporation in which council member owns controlling stock. Dear Mr. Sparks: The Attorney General received your request for an opinion from this office on the following question: My question is, can the City of Sheffield purchase goods and services from a corporation when a council member owns controlling interest in said corporation? Your letter is to be answered in the negative. Code of Alabama 1975, Section 11-43-12 prohibits an office or employee of a municipality from having a direct or indirect interest in a contract, work or business, the price or cost of which is paid from the municipality treasury. This office has ruled in prior opinions to the Honorable James Arrington of Jacksonville, Alabama, dated December 18, 1968 and the Honorable Andrew J. Gentry of Auburn, Alabama, dated March 8, 1974 that the above section prohibits a city from legally doing business with a corporation when a controlling interest of the stock in the corporation is held by a member of the council. Mr. James L. Sparks February 1, 1979 Page 2 Therefore, the City of Sheffield cannot purchase goods and services from a corporation when the controlling interest is owned by a council member. If our office can be of further assistance, please do not hesitate to contact us. Very truly yours, CHARLES A. GRADDICK Attorney General By LYNDA F. KNIGHT Assistant Attorney General LFK/sg