SB106 Alabama 2011 Session

Summary

Primary Sponsor

William “Bill” M. BeasleySenator

Democrat

Co-Sponsors

Del MarshLinda Coleman-MadisonPriscilla Dunn

Session

Regular Session 2011

Title

Public contracts, awarded contractor required to utilize certain subcontractors certified under federal HUBZone Program or small business enterprise fulfilling percentage of original contract award, Sec. 39-2-2 am'd.

Summary

SB106 would require awarded contractors on Alabama public works contracts to subcontract at least 20% of the original contract value to HUBZone-certified firms or Alabama-based small businesses.

What This Bill Does

It amends Section 39-2-2 to add a requirement that the awarded contractor must use HUBZone-certified subcontractors or small businesses located in Alabama for at least 20% of the original contract award. Eligible subcontractors include HUBZone-certified firms or small businesses located in the state, including businesses owned by socially or economically disadvantaged individuals. The change is intended to promote local business growth and job creation.

Who It Affects

• Awarded prime contractors on Alabama public works projects: must ensure at least 20% of the contract value is subcontracted to HUBZone-certified or Alabama-based small businesses.
• Small, HUBZone-certified, or socially/economically disadvantaged-owned businesses located in Alabama: gain subcontracting opportunities and potential revenue as part of public works contracts.

Key Provisions

• Amends Section 39-2-2 to require the awarded contractor to subcontract at least 20% of the original contract award to HUBZone-certified firms or Alabama-based small businesses.
• Eligible subcontractors are HUBZone-certified entities, socially and economically disadvantaged businesses, or any small business located within Alabama.
• The act states the purpose as fostering state businesses, growing the economy, and creating jobs.
• Effective date: the act takes effect on the first day of the third month after the Governor signs or it otherwise becomes law.

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

Subjects

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