HB436 Alabama 2010 Session

Summary

Primary Sponsor

Yusuf Salaam

Co-Sponsor

Thad McClammy

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

HB436 would grant HUBZone-certified small businesses top-priority preferred vendor status on Alabama state contracts and require the state to provide federal-like benefits to these firms.

What This Bill Does

The bill amends Alabama's competitive bidding law to add HUBZone-certified small businesses as preferred vendors with Priority #1 on state contracts. It allows awarding authorities to award contracts to a HUBZone preferred vendor if that vendor's bid is within 5% of the lowest bid. It requires the state to provide HUBZone-certified businesses the same benefits the federal government offers to them, when the state grants those benefits to other businesses. It expands the pool of entities that receive preference in bidding to include HUBZone firms.

Who It Affects

• HUBZone-certified small businesses would gain top-priority status as preferred vendors on state contracts and become eligible for state-provided benefits that mirror federal benefits.
• State agencies and departments (and the state government) would need to implement the new preference rules and ensure HUBZone firms receive the associated benefits when the state grants those benefits to other businesses.

Key Provisions

• Adds HUBZone-certified small businesses to the list of preferred vendors with Priority #1 status on contracts awarded by state agencies and departments.
• Allows an awarding authority to award a contract to a HUBZone preferred vendor if the bid is no more than 5% higher than the lowest bid from the lowest responsible bidder.
• Requires the state to provide HUBZone-certified small businesses the same benefits that the federal government offers to them, when the state grants those benefits to other businesses.
• Amends Section 41-16-20 to implement these changes in the competitive bidding framework for state contracts.
• States that the act becomes effective on the first day of the third month after passage and governor approval.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Competitive Bids