HB320 Alabama 2012 Session

Summary

Primary Sponsor

Thad McClammy

Democrat

Session

Regular Session 2012

Title

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

Summary

HB320 would give HUBZone-certified small businesses top priority in Alabama’s state contracts and require the state to mirror federal HUBZone benefits it grants to other firms.

What This Bill Does

The bill adds HUBZone-certified small businesses as preferred vendors with priority #1 on state contracts that are competitively bid, excluding public works contracts under Title 39. If a HUBZone bidder is within 5% of the lowest bid, the contract may be awarded to the HUBZone business. It also requires the state to provide HUBZone benefits to these firms if the state grants similar benefits to other businesses. These changes apply to Section 41-16-20 of the Alabama Code and take effect on the first day of the third month after the bill becomes law.

Who It Affects

• HUBZone-certified small businesses would receive top priority in state bidding and could win more state contracts.
• Non-HUBZone bidders and other vendors may face greater competition or have reduced chances for contracts due to the HUBZone preference.
• State agencies and departments that award contracts would implement the HUBZone priority and ensure benefits parity with federal HUBZone programs.

Key Provisions

• Adds HUBZone-certified small businesses as preferred vendors with priority #1 status on all state contracts (excluding public works contracts governed by Title 39) and allows award to HUBZone bidders within 5% of the lowest bid.
• Requires the state to provide to HUBZone-certified firms any state-level benefits that the federal government offers to such firms if the state grants those benefits to other businesses.
• Amends Section 41-16-20 of the Alabama Code to implement these HUBZone preferences and benefits; effective date is the first day of the third month after passage.

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