SB394 Alabama 2019 Session

Under existing law, all expenditures of public funds for labor, services, work, or for the purchase of materials, equipment, supplies, or other personal property involving $15,000 or more and the lease of such materials, equipment, supplies, or other personal property are required to be made under contractual agreement entered into by free and open competitive bidding, on sealed bids, to the lowest responsible bidder.

This bill would increase the minimum threshold to require competitive bidding on such contracts involving $25,000 or more.

Also under existing law, when an awarding authority is a county, municipality, or an instrumentality of a county or municipality, the awarding authority may establish a local preference zone for the awarding of contracts under the competitive bid law.

This bill would provide that if such an awarding authority is located in multiple counties, the awarding authority may establish a local preference zone in the municipality in which the awarding authority's headquarters is located.

Amendment 621 of the Constitution of Alabama of 1901, now appearing as Section 111.05 of the Official Recompilation of the Constitution of Alabama of 1901, as amended, prohibits a general law whose purpose or effect would be to require a new or increased expenditure of local funds from becoming effective with regard to a local governmental entity without enactment by a 2/3 vote unless: it comes within one of a number of specified exceptions; it is approved by the affected entity; or the Legislature appropriates funds, or provides a local source of revenue, to the entity for the purpose.

The purpose or effect of this bill would be to require a new or increased expenditure of local funds within the meaning of the amendment. However, the bill does not require approval of a local governmental entity or enactment by a 2/3 vote to become effective because it comes within one of the specified exceptions contained in the amendment.

Relating to public contracts; to amend Section 41-16-50, Code of Alabama 1975, to further provide for the total amount of funds the expenditure of which requires competitive bidding; to further provide for the location of local preference zones for certain awarding authorities located in multiple counties; and in connection therewith would have as its purpose or effect the requirement of a new or increased expenditure of local funds within the meaning of Amendment 621 of the Constitution of Alabama of 1901, now appearing as Section 111.05 of the Official Recompilation of the Constitution of Alabama of 1901, as amended.