HB284 Alabama 2010 Session

Summary

Primary Sponsor

Thad McClammy

Democrat

Session

Regular Session 2010

Title

Small businesses certified under federal HUBZone program given preferred vendor status under competitive bid law, Sec. 41-16-20 am'd.; Act 2009-763, 2009 Reg. Sess. am'd.

Summary

HB284 would grant HUBZone-certified small businesses preferred vendor status in Alabama's state bidding process and require the state to offer them the same benefits as other businesses when such benefits are available.

What This Bill Does

It amends the state bidding law to treat HUBZone-certified small businesses as preferred vendors with priority status on state contracts, for contracts valued at $7,500 or more (with certain exceptions). It also allows HUBZone firms to win awards if their bid is within 5% of the lowest bid when a preferred vendor is involved. Additionally, if the state grants a benefit to other businesses, it must extend the same benefit to HUBZone-certified small businesses. The changes apply to contracts awarded by state agencies and departments, and the act becomes effective on the first day of the third month after passage and governor approval.

Who It Affects

• HUBZone-certified small businesses would gain priority and preferred vendor status in state contracts and could receive state benefits on par with other firms when such benefits are offered.
• State agencies and departments that award contracts would need to apply HUBZone preferences and provide parity in benefits when offering those benefits to other businesses.

Key Provisions

• Adds HUBZone-certified small businesses as preferred vendors with Priority #1 status on all state contracts awarded by state agencies and departments.
• Extends HUBZone status to competitive bidding for contracts (excluding public works under Title 39) valued at $7,500 or more, allowing a preferred HUBZone vendor to win if their bid is within 5% of the lowest bid.
• Requires the state to provide, to HUBZone-certified small businesses, any state benefits offered to other businesses if the state grants such benefits to those other businesses.
• Effective date: the act takes effect on the first day of the third month after passage and governor approval.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Competitive Bids