HB239 Alabama 2016 Session

Summary

Primary Sponsor

Victor Gaston

Republican

Session

Regular Session 2016

Title

Public contracts, governmental entities precluded from entering into contracts with entities that boycott certain persons or entities with whom this state enjoys open trade

Summary

HB239 would prohibit Alabama governmental entities from awarding contracts to businesses that boycott people or entities in open-trade jurisdictions unless the business signs a non-boycott representation and agrees not to boycott.

What This Bill Does

The bill requires contracts with business entities to include a statement that the business is not currently engaged in a boycott and an agreement that it will not engage in such a boycott, directed at jurisdictions Alabama can trade with. It defines open-trade jurisdictions to include WTO members and US trade partners. There are exceptions: if a bidder offers goods or services at least 20% less than the lowest certifying bidder, the requirement does not apply, and contracts under $15,000 are exempt. The bill also provides definitions for key terms used in the law.

Who It Affects

• Public governmental entities in Alabama (state and subdivisions) which would have to require non-boycott certification and promises from bidders when awarding contracts.
• Businesses bidding on public contracts in Alabama, including corporations, partnerships, LLCs, organizations, and certain tax-exempt entities, which must certify they are not boycotting and will not boycott open-trade jurisdictions.
• Businesses that offer goods or services at least 20% cheaper than the lowest certifying bidder may be exempt from the boycott certification requirement.
• Contracts with total value under $15,000 are exempt from these requirements.

Key Provisions

• Section requiring a contract with a business entity to include a representation that the entity is not currently engaged in, and an agreement that the entity will not engage in, a boycott of a person or entity in an open-trade jurisdiction.
• Section providing exceptions: (a) if a bid offers goods/services at least 20% less than the lowest certifying bidder, the boycott requirement does not apply; (b) contracts with total value under $15,000 are exempt.
• Definitions of key terms: boycott, business entity, governmental entity, and jurisdiction with which this state can enjoy open trade (including WTO members and US free-trade partners).
• Effective date: the first day of the third month after passage and 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

Public Contracts