HB65 Alabama 2023 Session

Summary

Primary Sponsor

Terri CollinsRepresentative

Republican

Session

Regular Session 2023

Title

To amend Sections 16-13B-1, 16-13B-4, and 16-13B-5, Code of Alabama 1975, relating to competitive bidding on contracts of city and county boards of education; to increase the minimum amount for contracts subject to competitive bid from $15,000 to $40,000; to provide a legislative process for increasing the threshold dollar amount in the future based on increases in the Consumer Price Index; 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

HB65 raises the competitive bidding threshold for Alabama city and county boards of education to $40,000 and adds a CPI-based mechanism for future increases, plus local preference and updated bidding rules.

What This Bill Does

If enacted, the minimum bid threshold for contracts and leases by boards of education would move from $15,000 to $40,000. The bill starts a process to adjust this threshold every three years using the Consumer Price Index, with approval by the Legislative Council and a cap of 3%. It allows local preference zones to favor resident bidders within 3% of the lowest bid, enables joint purchasing among boards, and introduces bid advertising, bid bonds, and reverse auctions under certain conditions. It also includes anti-collusion penalties and requires records to be kept for audits; the effective date is a defined date after passage and approval, with a constitutional exemption related to local funding requirements due to a crime-related provision.

Who It Affects

• City and county boards of education in Alabama and their suppliers/vendors, who would see the bidding threshold rise and new bidding rules, local preference options, and potential joint purchasing arrangements.
• Local residents and local businesses within the boards' jurisdictions, who could benefit from local preference provisions when bids are close to the lowest bid.

Key Provisions

• Raise the minimum competitive bidding threshold from $15,000 to $40,000 for expenditures by city/county boards of education and implement a CPI-based mechanism to adjust the amounts every three years, with a 3% cap and a defined approval process.
• Add local preference zones that can favor resident bidders within 3% of the lowest bid, authorize joint purchasing agreements among participating agencies, require bid advertising and the use of bid bonds in some cases, allow reverse auctions, prohibit splitting contracts to evade bidding, establish anti-collusion penalties, and specify that the act is exempt from certain local-funding requirements due to a crime-related provision.

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 Bidding, minimum amount of contracts subject to for local boards of education increased