Skip to main content

HB67 Alabama 2024 Session

Updated Feb 23, 2026

Summary

Session
Regular Session 2024
Title
Contracts, competitive bidding, information technology contracts, further provided
Summary

HB67 would change Alabama’s competitive bidding rules for information technology by removing part of the IT exemption and requiring bids for servers and related storage tech, while creating a presumption against sole-source IT contracts.

What This Bill Does

The bill changes when IT purchases must follow bidding: purchases of computer programs and software remain exempt, but purchases of computer servers, redundant servers, hyperconverged infrastructure, data storage, and related technologies would no longer be exempt and would require competitive bidding. It adds a rebuttable presumption that information technology supply or service contracts are not subject to sole-source exemptions, which can only be overcome with an in-state attestation after a detailed search showing no other acceptable options. The bill retains penalties for contracts entered into in violation and specifies an October 1, 2024, effective date.

Who It Affects
  • State and local government procurement offices and agencies that purchase information technology equipment or services, who would need to bid for servers, data storage, and related IT tech rather than rely on blanket exemptions.
  • Information technology vendors and suppliers, who would face more competition for IT hardware, data storage, and related services and would need to participate in competitive bidding processes.
Key Provisions
  • Amends Section 41-16-51 to remove the blanket exemption for certain computer-related purchases and explicitly exclude from that exemption computer servers, redundant servers, hyperconverged infrastructure, data storage, and related equipment/services from being exempt from competitive bidding.
  • Keeps a general exemption for purchases like computer programs and software applications, but clarifies that the specified IT hardware and storage items are not covered by this exemption and must follow bidding requirements.
  • Adds a rebuttable presumption that information technology supply or service contracts are not subject to the sole-source exemption; this presumption can be overcome only with an attestation by the Chief Procurement Officer and the procuring authority that a detailed state-based search found no acceptable in-state options.
  • Amends Section 41-4-135 to reflect the IT-specific presumption and outlines the process to justify any potential sole-source IT award.
  • Maintains penalties for contracts entered into in violation of competitive bidding rules (void contracts and Class C felony for violators).
  • Effective date set for October 1, 2024.
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

Bill Actions

H

Pending House State Government

H

Read for the first time and referred to the House Committee on State Government

H

Prefiled

Bill Text

Documents

Source: Alabama Legislature