HB96 Alabama 2011 Session

Summary

Primary Sponsor

Thad McClammy

Democrat

Session

Regular Session 2011

Title

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

Summary

HB96 would give HUBZone-certified small businesses the top priority as preferred vendors in state competitive bids and require the state to mirror federal HUBZone benefits when it grants similar benefits.

What This Bill Does

It amends Alabama's competitive bid law to designate HUBZone-certified small businesses as preferred vendors with top (priority #1) status on state contracts awarded by state agencies and departments. It preserves the existing preferred-vendor framework and allows contracts to be awarded to a preferred vendor if their bid is within 5% of the lowest bid. It also requires the state to provide HUBZone-related benefits to these businesses if the federal government offers such benefits and the state grants similar benefits to other businesses. The changes take effect on the first day of the third month after passage.

Who It Affects

• HUBZone-certified small businesses would gain top priority for state contracts and become eligible for state benefits similar to federal HUBZone benefits.
• State agencies and departments would apply the new top-priority rule when awarding bids and administer HUBZone-related benefits to eligible businesses.

Key Provisions

• Adds HUBZone-certified small businesses as preferred vendors with priority #1 on all contracts awarded by state agencies and departments.
• Requires the state to provide HUBZone-related benefits to HUBZone-certified small businesses if the state grants such benefits to other businesses.
• Maintains existing preferred-vendor framework (in-state production, in-state assembly/distribution, and in-state business presence) and the 5% rule for awarding to a preferred vendor.
• Effective date: first day of the third month following passage and 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