HB153 Alabama 2016 Session

Summary

Primary Sponsor

Craig Ford

Independent

Session

Regular Session 2016

Title

Public contracts, 5 percent preference for resident businesses under certain conditions, verification of satisfaction of criteria by Finance Department, Made in America Act of 2016, Sec. 41-16-20 am'd.

Summary

HB153 would make a five percent preference for resident Alabama businesses mandatory in state public contracting when they meet certain criteria.

What This Bill Does

It amends the state bidding law to require awarding authorities to give a five percent preference to resident businesses that meet defined criteria when awarding contracts for labor, services, or purchase of goods above $15,000 (with some exceptions for certain public works). It defines “preferred vendor” through three priorities: (1) produces or manufactures the product in-state, (2) has an assembly plant or distribution facility in-state, and (3) is organized under Alabama law and has maintained a retail outlet or service center in-state for at least one year prior to the bid deadline. If a bid from a responsible bidder includes a preferred vendor and is within five percent of the lowest bid, the awarding authority must award the contract to that preferred vendor. The act takes effect on the first day of the third month after passage.

Who It Affects

• Resident Alabama businesses that meet the defined criteria (in-state production, in-state assembly/distribution facility, or established in-state presence) gain a mandatory five percent bid preference on qualifying state contracts.
• State and other awarding authorities that award contracts to suppliers must apply the five percent preference to qualifying resident vendors, influencing which bids are accepted.

Key Provisions

• The act is named the Made in Alabama Act of 2016 and amends Section 41-16-20 to require awarding authorities to provide a five percent preference to resident business entities that meet criteria.
• A 'preferred vendor' is defined by three priorities: (1) produces or manufactures the product within the state, (2) has an in-state assembly plant or distribution facility, (3) is organized under Alabama law and has maintained at least one retail outlet or service center in the state for at least one year prior to the bid deadline.
• For contracts (except certain public works contracts governed by Title 39) involving fifteen thousand dollars or more, the awarding authority must grant the five percent preference to qualifying resident vendors if the bid is within five percent of the lowest bid and the bidder is deemed responsible.
• The act becomes effective on the first day of the third month after it is passed and approved.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Contracts