SB81 Alabama 2016 Session

Summary

Primary Sponsor

Arthur OrrSenator

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

SB81 would bar Alabama government entities from contracting with vendors that boycott people or entities in open-trade jurisdictions unless the vendor certifies no current boycott and commits not to boycott.

What This Bill Does

The bill prevents public contracts with a business entity unless the contract includes a statement that the business is not currently boycotting, and an agreement that it will not boycott those tied to jurisdictions with which Alabama has open trade. It defines what a boycott is, who counts as a business entity, what counts as a governmental entity, and which jurisdictions are considered open for trade. There are two exceptions: if a bidder offers at least 20% less than the lowest certifying bidder, or if the contract total is under $15,000. The act becomes effective on the first day of the third month after it is enacted.

Who It Affects

• Governmental entities in Alabama (state and local governments and their departments/agencies) must ensure contracts include the required certification and non-boycott commitment when bidding for goods or services.
• Business entities seeking public contracts in Alabama (including corporations, partnerships, LLCs, and some tax-exempt organizations) must certify they are not currently boycotting and will not boycott related to open-trade jurisdictions; they may still bid if they meet the price exception or if the contract is very small.

Key Provisions

• Defines boycott as blacklisting or refusing to deal based on race, color, religion, gender, national origin, or based on a jurisdiction with which Alabama has open trade.
• Defines who is a business entity (including tax-exempt groups) and who is a governmental entity (state, subdivisions, and their agencies).
• Defines jurisdictions with open trade as WTO members or places with US free trade agreements or similar open-trade provisions.
• Public contracts may not be awarded unless the bidder provides a representation that it is not currently boycotting and will not engage in a boycott of persons or entities tied to open-trade jurisdictions.
• Exceptions: (1) if a bidder cannot meet the certification but offers to provide goods/services at least 20% less than the lowest certifying bidder; (2) contracts with total value under $15,000 are exempt.
• Effective date: the act takes effect on 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

Public Contracts