HB264 Alabama 2015 Session

Updated Feb 24, 2026

Summary

Primary Sponsor: Steve McMillan
Republican
Session: Regular Session 2015
Title: Competitive bids, award to responsible bidder in preference zone if bid is no more than 10 percent of lowest bid of foreign entity, Sec. 41-16-50 am'd.
Summary: HB264 lets counties and municipalities give a bidding edge to local or certain in-state and minority-/woman-owned bidders if their bid is within a small percentage of the lowest bid.
What This Bill Does
The bill creates a local preference zone for bidding and allows awards to a resident bidder within that zone if their bid is within 5% of the lowest bid. It also permits awarding to a responsible bidder from within the local preference zone or an in-state woman-owned, small-business, minority-owned, veteran-owned, or disadvantaged-owned firm if their bid is within 10% of a foreign entity's lowest bid, under certain conditions. Expenditures covered are those over $15,000 for labor, services, or goods, with some exceptions for public works governed by Title 39.

Who It Affects
Local residents and local businesses located within the local preference zone, who may win bids even if slightly higher than the absolute lowest bid
Alabama-based women-owned, small-business, minority-owned, veteran-owned, and disadvantaged-owned enterprises, who may qualify for favored consideration if within 10% of the lowest bid and the lowest bid is from a foreign/non-state entity
Bid applicants that are foreign entities (no Alabama place of business), who may be offset by the 10% rule in favor of local or in-state firms

Key Provisions
Establishes a local preference zone defined by the awarding authority's boundaries or county area for bidding
Allow awarding to a resident local bidder within 5% of the lowest responsible bid
Allow awarding to a local/in-state bidder (including several types of minority-/women-owned businesses) within 10% of the lowest bid if the lowest bid is from a foreign entity or non-state entity
Defines 'foreign entity' as a business without a place of business in Alabama
Applies to expenditures of $15,000 or more for labor, services, or materials, with certain exceptions for Title 39 public works
Effective date: becomes law on the first day of the third month after passage and governor's 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