HB97 Alabama 2019 Session

Summary

Primary Sponsor

Laura HallRepresentative

Democrat

Session

Regular Session 2019

Title

Public contracts, preference to certain bidders

Summary

HB97 would give bidding preference to geographically disadvantaged business enterprises on Alabama public contracts funded by state or local funds if their bid is within 3% of the lowest bid, and would require agencies to promote, track, and report on this program.

What This Bill Does

The bill creates a preference for geographically disadvantaged business enterprises (GDBEs) in letting public contracts funded by state, county, or municipal funds (not federal funds) if a GDBE bid is within 3% of the lowest bid. It requires the Department of Finance to adopt policies to increase GDBE contracting, including a goal of at least 3% of annual expenditures to GDBEs by the 2022-2023 fiscal year. It also requires contract provisions to allow subcontracts and joint ventures with GDBEs and to measure the GDBE participation. The Department must certify GDBEs, monitor compliance, enforce violations through the Attorney General, and report annually to the Governor with contract details and public availability.

Who It Affects

• Geographically disadvantaged business enterprises (GDBEs) — would have a bid preference on state/local contracts if their bid is within 3% of the lowest bid and would be counted for participation goals.
• State and local government agencies and bidders — must identify eligible GDBEs, adopt procurement policies, monitor compliance, enforce rules, and include subcontract/joint venture provisions to meet participation goals.

Key Provisions

• Preference on public contracts: lowest responsible bidder who is a GDBE and whose bid is within 3% of the lowest bid (excluding federal-funded contracts).
• Department of Finance duties: adopt policies to promote GDBE participation, identify eligible GDBEs, and set goals for the share of expenditures to GDBEs.
• Participation goal: aim for three percent or more of annual expenditures to GDBEs in each fiscal year, with a target deadline by 2022-2023.
• Contract provisions: require subcontracts and joint ventures with GDBEs and consider only the GDBE-participated portion for meeting goals.
• Certification process: GDBEs must file a sworn affidavit proving eligibility and comply with standard bidder requirements, including insurance.
• Enforcement and reporting: Director enforces rules, reports violations to the Attorney General, and submits an annual public report to the Governor detailing contracts and GDBE participation.
• Effective date: law takes effect on 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