SB79 Alabama 2014 Session

Updated Feb 25, 2026

Summary

Primary Sponsor: Dick Brewbaker
Republican
Co-Sponsor: Del Marsh
Session: Regular Session 2014
Title: Public contracts, 5 percent preference for resident businesses under certain conditions, verification of satisfaction of criteria by Finance Department, Sec. 41-16-20 am'd.
Summary: SB79 requires awarding authorities to give a five percent preference to resident businesses meeting criteria in public contracting.
What This Bill Does
It amends Section 41-16-20 to require awarding authorities accepting competitive bids to apply a five percent preference to resident business entities that meet listed criteria. A 'preferred vendor' is defined by four priorities: in-state production, in-state assembly or distribution facilities, in-state business organization with a retail outlet or service center in the state for at least one year, and a history of fulfilling previous bids. The rule applies to contracts for labor, services, work, or purchase/lease of materials and other property valued at $15,000 or more, with exceptions for certain public works and standard bidding rules. For contracts up to $100,000 involving state higher education institutions, the contract would be awarded to a preferred vendor if their bid is within five percent of the lowest bid.

Who It Affects
Resident business entities that produce or manufacture in-state, or have in-state facilities and meet the criteria, will receive a five percent bidding advantage.
State departments, boards, and state higher education awarding authorities will implement and be bound by the five percent preference when evaluating bids.

Key Provisions
Establishes a mandatory five percent preference for resident vendors meeting the specified criteria.
Defines 'preferred vendor' using four priorities: Priority 1 in-state production; Priority 2 in-state assembly/distribution facilities; Priority 3 in-state business organization with a retail outlet or service center in-state for at least one year; Priority 4 no prior bid default or failure to fulfill bid requirements in Alabama.
Applies to contracts for labor, services, work, or purchase/lease of materials and other property valued at $15,000 or more let by state entities, with exceptions for certain public works.
For contracts of $100,000 or less awarded by state higher education institutions, the contract shall be awarded to a preferred vendor if their bid is within five percent of the lowest bid.
Effective date: becomes law on the first day of the third month following passage and Governor’s 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: Contracts