HB524 Alabama 2021 Session

Summary

Primary Sponsor

Rolanda HollisRepresentative

Democrat

Co-Sponsor

Juandalynn Givan

Session

Regular Session 2021

Title

Public works contracts, local preference zones authorized, local preference to certain bidders authorized, Sec. 39-2-6 am'd.

Summary

HB524 allows local Alabama governments to apply local bidding preferences to public works contracts over $50,000, extending the existing preferences used for contracts over $15,000 to higher-value projects and to specific categories of bidders.

What This Bill Does

It authorizes local awarding authorities to grant the same local preferences for public works contracts over $50,000 as those already allowed for contracts over $15,000. It preserves the local preference zone framework, defining zones by the awarding authority’s boundaries (or related regional boundaries) with a default to the authority’s boundaries if no zone is set. It provides two threshold-based opportunities: (a) a resident bidder within the local zone can win if their bid is no more than 5% higher than the lowest bid, and (b) if the lowest bid is from a foreign entity, a qualified local bidder or a woman-owned, small, minority-owned, veteran-owned, or disadvantaged-owned business may win if their bid is no more than 10% higher than the foreign bid. The standard rule remains that contracts go to the lowest responsible and responsive bidder, subject to these exceptions.

Who It Affects

• Local awarding authorities (counties, municipalities, or their instrumentalities) — can apply local preferences to public works contracts exceeding $50,000.
• Local businesses with a place of business within the local preference zone — may receive preferences when their bids are within the specified thresholds.
• Foreign-entity bidders on public works contracts — may be disadvantaged relative to local or category bidders when the lowest bid is foreign, under the 10% threshold provision.
• Women-owned, small business, minority-owned, veteran-owned, and disadvantaged-owned businesses — may receive preference under the 10% threshold if the lowest bid is from a foreign entity and they meet eligibility.

Key Provisions

• Extend the existing preferences to public works contracts exceeding $50,000, aligning with the current rules for contracts over $15,000.
• Authorize local authorities to establish or use local preference zones, with boundaries defined by the authority, the county, multiple counties, or Core Based Statistical Area; if no action is taken, the zone defaults to the authority's boundaries.
• In local preference zones, a resident bidder may win if their bid is within 5% of the lowest bid (for the same local zone).
• If the lowest bid is from a foreign entity, allow a responsible bidder within the local zone or a qualifying woman-owned, small, minority-owned, veteran-owned, or disadvantaged-owned business to win if their bid is within 10% of the foreign bid.
• The act maintains the standard requirement that contracts go to the lowest responsible and responsive bidder, with procedures for handling multiple bids and nonresponsiveness.
• Effective date: the act becomes law on the first day of the third month after it passes and is approved 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

Public Works Contracts