SB257 Alabama 2020 Session

Summary

Primary Sponsor

Bobby D. SingletonSenator

Democrat

Session

Regular Session 2020

Title

State contracts, for goods and services, to create a statewide disadvantaged business enterprise program, to establish a study commission on disadvantaged business enterprises

Summary

SB257 would create a statewide disadvantaged business enterprise program to promote women- and minority-owned firms in Alabama state contracts for goods and services and to study participation through a dedicated commission.

What This Bill Does

It would establish a certification process for disadvantaged business enterprises and identify programs to help them compete for state contracts. It would aim to award 15% of state contracts for goods and services to DBEs and implement a bidding system that gives DBEs priority, including a 'preferred vendor' framework where a DBE can win if its bid is within 5% of the lowest bid. It would also create a Study Commission on Disadvantaged Business Enterprises to examine actions that could boost DBE participation and report back to the Legislature, after which the commission would be dissolved.

Who It Affects

• Disadvantaged business enterprises (businesses owned by women or minorities): could qualify for DBE certification and gain bidding priority and potential contract awards under the new program.
• State agencies, boards, and other entities that award contracts: would need to follow the new certification requirements, bidding priorities, and the amended preferred-vendor rules when awarding contracts.

Key Provisions

• Creates a statewide disadvantaged business enterprise program and a certification process for DBEs overseen by the Chief Procurement Officer, plus identification of programs to assist small and disadvantaged businesses.
• Imposes a 15% target for state contracts for goods and services to be awarded to DBEs; authorizes the Chief Procurement Officer to provide programs and, if needed, progress payments to encourage DBE procurement.
• Amends bidding rules to establish a five-tier 'preferred vendor' system, with DBEs as Priority #5; allows awarding to a DBE or other preferred vendor if their bid is within 5% of the lowest bid.
• Establishes the Study Commission on Disadvantaged Business Enterprises, including its composition, duties, meeting requirements, reporting timeline, and dissolution after completing its findings.
• Specifies effective dates: general provisions become law October 1, 2020, and the Section 5 provisions (DBE preferences) take effect October 1, 2022; the Division of Purchasing may adopt implementing rules.

AI-generated summary using openai/gpt-5-nano on Feb 23, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

State Contracts