Ala. Code § 31-5-5
The department, through the commissioner, with the approval of the board, may contract with any organization of veterans which , for a period of five years next preceding the date of the contract, has maintained an established committee or agency rendering services to veterans, similar to the services referred to in Section 31-5-4 , to perform the services for veterans and to process any claims or matters of veterans who apply to the department for assistance when the veterans have executed a power of attorney to the veterans' organization. The department, through the contract, shall compensate the veterans' organizations on the basis of service rendered, which compensation shall be paid from sums appropriated to the department. No contract shall be made unless the board determines , owing to the confidential relationships involved and the necessity of operating through agencies which the veterans involved will feel to be sympathetic towards their problems, that the services cannot satisfactorily be rendered other than through the agency of the veterans' organization and that the best interests of the veterans involved will be served if the contract is made.
Ala. Code § 31-5-5 (1975)