HB43 Alabama 2018 Session

Summary

Primary Sponsor

Rolanda HollisRepresentative

Democrat

Session

Regular Session 2018

Title

Contracts, public, competitive bid law, minority-owned business and minority group, terms defined, Sec. 41-16-50 am'd.

Summary

HB 43 would define minority-owned business and minority group for Alabama's public contracting and adjust bidding rules to include local and minority-based preferences.

What This Bill Does

It adds formal definitions for minority-owned business and minority group within the competitive bidding framework. A minority-owned business must be at least 51% owned and managed/controlled by minority group members, and the minority group includes African American, Native American, Asian, and Hispanic descent. It also allows local preference zones and gives awarding authorities the option to favor resident or minority-owned bidders within 5% of the lowest bid, with special rules for sole bids and joint purchases, plus a provision addressing foreign bids and eligibility for domestic minority-owned or other preferred bidders within 10% of a foreign bid.

Who It Affects

• Public agencies and educational institutions (state entities, counties, municipalities, and their boards) that spend funds for labor, services, or materials, by potentially applying the new definitions and local preference rules in their bidding processes.
• Businesses and individuals defined as minority-owned or belonging to a minority group (African American, Native American, Asian, Hispanic) who may be eligible for bidding preferences and local protections when competing for contracts.

Key Provisions

• Definition of minority-owned business enterprise and minority group for purposes of the competitive bidding law, including 51% ownership/control by minority members and the minority groups identified (African American, Native American, Asian, Hispanic).
• Introduction of local preference zones and related bidding rules, including awarding within 5% of the lowest bid to resident or minority-owned bidders, provisions for joint purchasing, and a mechanism for handling foreign bids (allowing a domestic minority-owned or other eligible bidder to win within 10% of a foreign bid).

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