SB36 Alabama 2023 Session

Summary

Primary Sponsor

Chris ElliottSenator

Republican

Session

Regular Session 2023

Title

To amend Sections 16-13B-1, Section 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 $25,000; 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

SB36 raises the competitive bidding threshold for Alabama city and county boards of education from $15,000 to $25,000 and adds expanded bidding rules and anti-collusion provisions.

What This Bill Does

It increases the minimum contract amount that must go through competitive bidding from $15,000 to $25,000 for labor, services, materials, equipment, and leases. It allows local preference zones and potential preference for resident bidders within 3% of the lowest bid, permits joint purchasing among multiple boards, and requires advertised bids with options for sealed bids or reverse auctions. It also includes anti-splitting protections to prevent breaking contracts into smaller pieces to avoid bidding, requires bid bonds and audits, and introduces a CPI-based cost adjustment mechanism for thresholds starting in 2027, while noting the act is exempt from a certain constitutional vote requirement.

Who It Affects

• City and county boards of education in Alabama and their suppliers; contracts and purchases that are $25,000 or more must follow competitive bidding rules (sealed bids or reverse auctions) with potential local preferences and audit requirements.
• Local businesses and residents within the boards' jurisdictions; they may have a chance to receive bids preferentially if they are within 3% of the lowest bid and meet other local criteria.

Key Provisions

• Increase the minimum bid threshold for competitive bidding from $15,000 to $25,000 for expenditures by city and county boards of education on labor, services, materials, equipment, and leases totaling $25,000 or more.
• Create and apply local preference zones, allow reverse auctions, enable joint purchasing among multiple boards, require bid bonds and public advertisements, prohibit splitting contracts to avoid bidding, and include anti-collusion penalties along with a CPI-based cost adjustment mechanism.

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.