HB51 Alabama 2023 Session

Summary

Primary Sponsor

Corley EllisRepresentative

Republican

Session

Regular Session 2023

Title

Relating to public contracts; to amend Sections 41-16-50, 41-16-51, 41-16-52, 41-16-53, 41-16-54, and 41-16-55, Code of Alabama 1975, to increase the threshold dollar amount for which competitive bidding is generally required for certain state and local public awarding authorities, with exceptions; to provide a legislative method for the increase of the threshold dollar amount; 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 Section 111.05 of the Constitution of Alabama of 2022.

Summary

HB51 would raise the general bidding threshold for many state and local public contracts to $30,000 (from $15,000), set up CPI-based automatic increases, and modify bidding rules and exceptions under Alabama law.

What This Bill Does

It increases the dollar amount that requires competitive bidding for most expenditures by state and local authorities and creates a CPI-based mechanism to periodically raise those amounts. It adds details on bidding methods (including sealed bids and reverse auctions), allows joint purchasing among agencies, and preserves a list of bidding exemptions. It also introduces local preferences, anti-collusion penalties, and emergency procurement provisions, while clarifying that the change is treated as a local expenditure under the constitution and can take effect under existing constitutional exceptions.

Who It Affects

• State and local public awarding authorities (such as state agencies, county commissions, municipal governments, and school districts) by raising bidding thresholds and expanding procurement methods.
• Bidders and suppliers (including local, women-owned, minority-owned, veteran-owned, and small businesses) who participate in the bidding process under the new thresholds, local preference rules, and bid procedures.

Key Provisions

• Thresholds increased: competitive bidding generally required for expenditures of $30,000 or more (instead of $15,000) for many entities listed in 41-16-50(a).
• Cost adjustment: starting October 1, 2027 and every three years thereafter, dollar amounts in this article may be adjusted for CPI, with Legislative Council approval required for the change.
• Bidding procedures: purchases above the new threshold must be advertised and bid (sealed bids or reverse auctions); open market and joint purchasing options remain, with specific rules for advertising, bid opening, and retention of bids.
• Exemptions: existing bidding exemptions remain in place (e.g., certain professional services, elections-related purchases, civil service employment, and other listed categories).
• Local preferences: authorities may establish local preference zones to favor local bidders under defined conditions, including price thresholds relative to the lowest bid.
• Joint purchasing: allows two or more contracting agencies to join in purchasing or bidding, with shared procedures and funding arrangements.
• Anti-collusion: strengthens penalties for bid collusion (Class A misdemeanor for smaller bid ranges; Class C felony for larger ranges) and voids offending bids.
• Emergency procurements: permits non-advertised contracting in emergencies with specific documentation and justification requirements.
• No split-bidding: prohibits splitting expenditures to stay under the threshold; if total costs rise above the threshold later, a bid is required for the added amount.
• Effective date: the act becomes law upon governor approval (with Section 3 specifying the general effective timing); Section 2 notes it is exempt from some Section 111.05 constraints due to defined exceptions.

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