HB334 Alabama 2021 Session

Summary

Primary Sponsor

Connie C. Rowe

Republican

Co-Sponsor

Allen Treadaway

Session

Regular Session 2021

Title

Competitive bidding, awarding authority allowed to negotiate lowest bidder when all bids exceed available funding, Sec. 39-2-6 am'd.

Summary

HB334 would let local boards of education and public colleges/universities negotiate with the lowest responsible bidder when all bids exceed available funding.

What This Bill Does

If two or more bids are received and none fit the budget, the awarding authority may negotiate with the lowest responsible and responsive bidder. This applies to local boards of education and public two-year or four-year institutions. The negotiation must be documented as a funding shortage, must be time-sensitive, and the negotiated changes must not materially alter the project’s scope. If the bidder won’t sign or meet requirements, the authority can move to the next lowest bidder as allowed under current law.

Who It Affects

• Local boards of education and public two-year or four-year higher education institutions awarding authorities, who gain authority to negotiate with the lowest bidder under funding-shortage circumstances.
• Bidders/contractors participating in public works bids, who may have their price or terms adjusted through negotiation if they are the lowest responsible and responsive bidder when funding is insufficient.

Key Provisions

• Amends Section 39-2-6 to allow negotiation with the lowest responsible and responsive bidder when two or more bids are received and all exceed the available funding, provided that funding shortage is documented, time is of the essence, and negotiated changes do not materially alter the project.
• Effective date: the act becomes law on the first day of the third month after its passage and approval by the Governor.

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

Subjects

Competitive Bids