HB51 Alabama 2020 Session

Summary

Primary Sponsor

Laura HallRepresentative

Democrat

Session

Regular Session 2020

Title

Public contracts, preference to certain bidders

Summary

HB51 would give state contracts a preference to geographically disadvantaged business enterprises (GDBEs) if their bid is within 3% of the lowest bid, and it directs the Department of Finance to implement rules to boost GDBE participation.

What This Bill Does

For contracts funded with state or local funds (not federally funded), the award would go to the lowest responsible GDBE bidder within 3% of the lowest bid. The Department of Finance would adopt policies to increase GDBE participation and require contracts to include subcontracts or joint ventures with GDBEs, counting only the GDBE portion toward the goal. A certification process would be created for GDBEs, requiring sworn affidavits and ongoing compliance requirements, including insurance where applicable. There would be annual reporting to the Governor and public disclosure of contract details and GDBE participation on the department's website.

Who It Affects

• Geographically disadvantaged business enterprises (GDBEs) would be eligible for bid preferences and must certify their status and participate in subcontracts or joint ventures as needed.
• Other bidders and contractors would face a potentially changed competitive landscape and might need to partner with GDBEs to qualify for the 3% preference.
• State agencies and the Department of Finance would identify eligible GDBEs, set procurement goals, monitor compliance, and enforce the rules.
• The general public would gain access to annual reports showing GDBE participation and contract details.

Key Provisions

• Preference in letting of public contracts for the lowest responsible GDBE bidder within three percent of the lowest bid, excluding federal-funded contracts.
• The Department of Finance must adopt policies to increase GDBE participation and require subcontracts and joint ventures with GDBEs; only the GDBE portion counts toward meeting the goal.
• Definitions of geographically disadvantaged business enterprise, including HUBZone status, Alabama qualified opportunity zones, and employee/residence criteria.
• A certification process for GDBEs involving sworn affidavits and compliance with standard bid requirements (including insurance).
• A requirement for the GDBE to notify the department if it no longer qualifies.
• The director must adopt and enforce rules, monitor compliance, and report violations to the Attorney General for enforcement.
• An annual Governor's report detailing GDBE participation and contract results, with public access on the department's website.
• Effective date: the act becomes law on the first day of the third month after passage.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Public Contracts