HB27 Alabama 2019 Session

Summary

Primary Sponsor

Rolanda HollisRepresentative

Democrat

Session

Regular Session 2019

Title

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

Summary

HB27 defines minority-owned business and minority group for Alabama's competitive bidding and updates local preference and foreign-bid rules for public contracts.

What This Bill Does

The bill adds definitions for minority-owned business enterprise and minority group within the competitive bidding law, including that minority-owned firms are at least 51% owned and run by minority members and that minority group includes African American, Native American, Asian, and Hispanic people. It also defines a foreign entity as a business with no Alabama place of business. It allows local preference zones to favor resident or minority-owned bidders within 5% of the lowest bid and lets authorities negotiate if only one bid is received. It permits joint purchasing among agencies and, if the lowest bid is from a foreign entity, allows awarding to a domestic bidder within 10% of the foreign bid if they are within the local zone and are minority-, woman-, veteran-, or disadvantaged-owned.

Who It Affects

• Minority-owned businesses would be defined and could gain eligibility for local preferences in public contract bidding within the local preference zone.
• Public contracting authorities and bidders would be affected by new definitions, local preference rules, joint purchasing provisions, and rules related to foreign bids.

Key Provisions

• Defines minority-owned business enterprise as at least 51% owned by members of a minority group and managed and controlled by them, and defines minority group as African American, Native American, Asian, or Hispanic descent.
• Defines foreign entity as a business that does not have a place of business within Alabama.
• Allows local preference zones in bidding and permits awarding to a resident responsible bidder within 5% of the lowest bid if they are within the zone and meet responsibility criteria.
• If only one bid is received, awarding authority may reject the bid and negotiate a lower price.
• Authorizes joint purchasing or bidding agreements among two or more contracting agencies and requires adherence to the bidding rules.
• If the lowest bid comes from a foreign entity, allows awarding to a domestic bidder within 10% of the foreign bid if the domestic bidder is within the local zone and is minority-owned, woman-owned, small business, veteran-owned, or disadvantaged-owned.

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