Alabama 2023 Regular Session

Alabama House Bill HB65 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	~~HB65ENROLLED~~
	1	+	HB65INTRODUCED
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3		-	XQ607E-3
	3	+	XQ607E-1
4	4		By Representative Collins
5	5		RFD: Ways and Means Education
6	6		First Read: 07-Mar-23
7	7		PFD: 06-Mar-23
8		-	2023 Regular Session
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14		-	6 HB65 EnrolledHB65 Enrolled
	12	+	5 XQ607E-1 02/24/2023 KMS (L)cr 2023-496
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16		-	Enrolled, An Act,
17		-	To amend Sections 16-13B-1, 16-13B-4, and 16-13B-5,
18		-	Code of Alabama 1975, relating to competitive bidding on
19		-	contracts of city and county boards of education; to increase
20		-	the minimum amount for contracts subject to competitive bid
21		-	from $15,000 to $40,000; to provide a legislative process for
22		-	increasing the threshold dollar amount in the future based on
23		-	increases in the Consumer Price Index; and in connection
24		-	therewith would have as its purpose or effect the requirement
25		-	of a new or increased expenditure of local funds within the
26		-	meaning of Section 111.05 of the Constitution of Alabama of
27		-	2022.
28		-	BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
29		-	Section 1. Sections 16-13B-1, 16-13B-4, and 16-13B-5 of
30		-	the Code of Alabama 1975, are amended to read as follows:
31		-	"§16-13B-1
32		-	(a)(1) This chapter shall apply to county boards of
33		-	education and city boards of education, or any combination of
34		-	city and county boards of education as herein provided for the
35		-	competitive bidding of certain contracts. With the exception
36		-	of contracts for public works whose competitive bidding
37		-	requirements are governed exclusively by Title 39, all
38		-	expenditure of funds of whatever nature for labor, services,
39		-	work, or for the purchase of materials, equipment, supplies,
40		-	or other personal property involving fifteen thousand dollars
41		-	($15,000) forty thousand dollars ($40,000) or more, and the
	14	+	SYNOPSIS:
	15	+	Under existing law, the minimum amount for
	16	+	contracts subject to competitive bid for city and
	17	+	county boards of education is $15,000.
	18	+	This bill would increase the minimum amount to
	19	+	$25,000.
	20	+	Section 111.05 of the Constitution of Alabama of
	21	+	2022, prohibits a general law whose purpose or effect
	22	+	would be to require a new or increased expenditure of
	23	+	local funds from becoming effective with regard to a
	24	+	local governmental entity without enactment by a 2/3
	25	+	vote unless: it comes within one of a number of
	26	+	specified exceptions; it is approved by the affected
	27	+	entity; or the Legislature appropriates funds, or
	28	+	provides a local source of revenue, to the entity for
	29	+	the purpose.
	30	+	The purpose or effect of this bill would be to
	31	+	require a new or increased expenditure of local funds
	32	+	within the meaning of the amendment. However, the bill
	33	+	does not require approval of a local governmental
	34	+	entity or enactment by a 2/3 vote to become effective
	35	+	because it comes within one of the specified exceptions
	36	+	contained in the amendment.
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69		-	28 HB65 ~~EnrolledHB65 Enrolled~~
	64	+	28 HB65 INTRODUCEDHB65 INTRODUCED
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71		-	lease of materials, equipment, supplies, or other personal
72		-	property where the lessee is, or becomes legally and
73		-	contractually, bound under the terms of the lease, to pay a
74		-	total amount of fifteen thousand dollars ($15,000) forty
75		-	thousand dollars ($40,000) or more, made by or on behalf of
76		-	any city or county board of education, except as hereinafter
77		-	provided, shall be made under contractual agreement entered
78		-	into by free and open competitive bidding, on sealed bids, to
79		-	the lowest responsible bidder.
80		-	(2) Beginning October 1, 2027, and every three years
81		-	thereafter, all minimum dollar amounts used in this chapter
82		-	shall be subject to a cost adjustment based on the following
83		-	procedure: The Chief Examiner of the Department of Examiners
84		-	of Public Accounts may submit to the Chair of the Legislative
85		-	Council a recommendation that the amount be increased based on
86		-	the percentage increase in the Consumer Price Index for the
87		-	immediately preceding three-year period, rounded down to the
88		-	nearest thousand dollars. The recommendation shall be subject
89		-	to the approval of the Legislative Council. In the event the
90		-	recommendation is not disapproved by the Legislative Council
91		-	by the end of April following the submission of the
92		-	recommendation, the recommendation shall be deemed to be
93		-	approved. Upon approval, the Chief Examiner shall notify the
94		-	public of the adjusted dollar amounts by July 1 before the
95		-	fiscal year in which the changes are to take effect. The
96		-	increase may not exceed three percent.
97		-	(b) Prior to advertising for bids for an item of
98		-	personal property, where a city or county board of education,
	66	+	A BILL
	67	+	TO BE ENTITLED
	68	+	AN ACT
	69	+	To amend Sections 16-13B-1, Section 16-13B-4, and
	70	+	16-13B-5, Code of Alabama 1975, relating to competitive
	71	+	bidding on contracts of city and county boards of education;
	72	+	to increase the minimum amount for contracts subject to
	73	+	competitive bid from $15,000 to $25,000; and in connection
	74	+	therewith would have as its purpose or effect the requirement
	75	+	of a new or increased expenditure of local funds within the
	76	+	meaning of Section 111.05 of the Constitution of Alabama of
	77	+	2022.
	78	+	BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
	79	+	Section 1. Sections 16-13B-1, 16-13B-4, and 16-13B-5 of
	80	+	the Code of Alabama 1975, are amended to read as follows:
	81	+	"§16-13B-1
	82	+	(a) This chapter shall apply to county boards of
	83	+	education and city boards of education, or any combination of
	84	+	city and county boards of education as herein provided for the
	85	+	competitive bidding of certain contracts. With the exception
	86	+	of contracts for public works whose competitive bidding
	87	+	requirements are governed exclusively by Title 39, all
	88	+	expenditure of funds of whatever nature for labor, services,
	89	+	work, or for the purchase of materials, equipment, supplies,
	90	+	or other personal property involving fifteen thousand dollars
	91	+	($15,000) twenty-five thousand dollars ($25,000) or more, and
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126		-	56 HB65 ~~EnrolledHB65 Enrolled~~
	119	+	56 HB65 INTRODUCEDHB65 INTRODUCED
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	121	+	the lease of materials, equipment, supplies, or other personal
	122	+	property where the lessee is, or becomes legally and
	123	+	contractually, bound under the terms of the lease, to pay a
	124	+	total amount of fifteen thousand dollars ($15,000) twenty-five
	125	+	thousand dollars ($25,000) or more, made by or on behalf of
	126	+	any city or county board of education, except as hereinafter
	127	+	provided, shall be made under contractual agreement entered
	128	+	into by free and open competitive bidding, on sealed bids, to
	129	+	the lowest responsible bidder.
	130	+	(b) Prior to advertising for bids for an item of
	131	+	personal property, where a city or county board of education,
128	132		thereof is the awarding authority, the awarding authority may
129	133		establish a local preference zone consisting of either the
130	134		legal boundaries or jurisdiction of the awarding authority, or
131	135		the boundaries of the county in which the awarding authority
132	136		is located, or the boundaries of the core based statistical
133	137		area (CBSA) in which the awarding authority is located. If no
134	138		such action is taken by the awarding authority, the boundaries
135	139		of the local preference zone shall be deemed to be the same as
136	140		the legal boundaries or jurisdiction of the awarding
137	141		authority. In the event a bid is received for an item of
138	142		personal property to be purchased or contracted for from a
139	143		person, firm, or corporation deemed to be a responsible
140	144		bidder, having a place of business within the local preference
141	145		zone where a city or county board of education, thereof is the
142	146		awarding authority, and the bid is no more than three percent
143	147		greater than the bid of the lowest responsible bidder, the
144	148		awarding authority may award the contract to the resident
145		-	responsible bidder. In the event only one bidder responds to
146		-	the invitation to bid, the awarding authority may reject the
147		-	bid and negotiate the purchase or contract, providing the
148		-	negotiated price is lower than the bid price.
149		-	(c) The governing bodies of two or more city or county
150		-	boards of education, or any combination of two or more city or
151		-	county boards of education, counties, municipalities, or
152		-	instrumentalities thereof, may provide, by joint agreement,
153		-	for the purchase of labor, services, or work, or for the
154		-	purchase or lease of materials, equipment, supplies, or other
155		-	personal property for use by their respective agencies. The
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183		-	84 HB65 ~~EnrolledHB65 Enrolled~~
	176	+	84 HB65 INTRODUCEDHB65 INTRODUCED
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	178	+	responsible bidder. In the event only one bidder responds to
	179	+	the invitation to bid, the awarding authority may reject the
	180	+	bid and negotiate the purchase or contract, providing the
	181	+	negotiated price is lower than the bid price.
	182	+	(c) The governing bodies of two or more city or county
	183	+	boards of education, or any combination of two or more city or
	184	+	county boards of education, counties, municipalities, or
	185	+	instrumentalities thereof, may provide, by joint agreement,
	186	+	for the purchase of labor, services, or work, or for the
	187	+	purchase or lease of materials, equipment, supplies, or other
	188	+	personal property for use by their respective agencies. The
185	189		agreement shall be entered into by official actions of the
186	190		contracting agencies adopted by each of the participating
187	191		governing bodies which shall set forth the categories of
188	192		labor, services, or work, or for the purchase or lease of
189	193		materials, equipment, supplies, or other personal property to
190	194		be purchased, the manner of advertising for bids and the
191	195		awarding of contracts, the method of payment by each
192	196		participating contracting agency, and other matters deemed
193	197		necessary to carry out the purposes of the agreement. Each
194	198		contracting agency's share of expenditures for purchases under
195	199		any agreement shall be appropriated and paid in the manner set
196	200		forth in the agreement and in the same manner as for other
197	201		expenses of the contracting agency. The contracting agencies
198	202		entering into a joint agreement, as herein permitted, may
199	203		designate a joint purchasing or bidding agent, and the agent
200	204		shall comply with this chapter. Purchases, contracts, or
201	205		agreements made pursuant to a joint purchasing or bidding
202		-	agreement shall be subject to all terms and conditions of this
203		-	chapter. Any participation by counties and municipalities
204		-	authorized in this section shall be subject to the provisions
205		-	of subsection (b) of Section 41-16-50. In the event that
206		-	utility services are no longer exempt from competitive bidding
207		-	under this chapter, non-adjoining boards of education may not
208		-	purchase utility services by joint agreement under authority
209		-	granted by this subsection.
210		-	(d) The awarding authority may require bidders to
211		-	furnish a bid bond for a particular bid solicitation if the
212		-	bonding requirement applies to all bidders, is included in the
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240		-	112 HB65 ~~EnrolledHB65 Enrolled~~
	233	+	112 HB65 INTRODUCEDHB65 INTRODUCED
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	235	+	agreement shall be subject to all terms and conditions of this
	236	+	chapter. Any participation by counties and municipalities
	237	+	authorized in this section shall be subject to the provisions
	238	+	of subsection (b) of Section 41-16-50. In the event that
	239	+	utility services are no longer exempt from competitive bidding
	240	+	under this chapter, non-adjoining boards of education may not
	241	+	purchase utility services by joint agreement under authority
	242	+	granted by this subsection.
	243	+	(d) The awarding authority may require bidders to
	244	+	furnish a bid bond for a particular bid solicitation if the
	245	+	bonding requirement applies to all bidders, is included in the
242	246		written bid specifications, and if bonding is available for
243	247		the services, equipment, or materials."
244	248		"§16-13B-4
245	249		(a) All proposed purchases in excess of fifteen
246		-	thousand dollars ($15,000) forty thousand dollars ($40,000)
247		-	shall be advertised by posting notice thereof on a bulletin
248		-	board maintained outside the purchasing office and in any
249		-	other manner and for any length of time as may be determined.
250		-	Sealed bids or bids to be submitted by a reverse auction
251		-	procedure shall also be solicited by sending notice by mail or
252		-	other electronic means to all persons, firms, or corporations
253		-	who have filed a request in writing that they be listed for
254		-	solicitation on bids for the particular items that are set
255		-	forth in the request. If any person, firm, or corporation
256		-	whose name is listed fails to respond to any solicitation for
257		-	bids after the receipt of three solicitations, the listing may
258		-	be cancelled.
259		-	(b) Except as provided in subsection (c), all bids
260		-	shall be sealed when received and shall be opened in public at
261		-	the hour stated in the notice.
262		-	(c) The awarding authority may make purchases or
263		-	contracts through a reverse auction procedure; provided,
264		-	however, that a reverse auction shall only be allowed where
265		-	the item to be purchased at a reverse auction is either not at
266		-	the time available on the state purchasing program under the
267		-	same terms and conditions or, if available, the lowest price
268		-	offered in the reverse auction is equal to or less than the
269		-	price for which the item is available on the state purchasing
	250	+	thousand dollars ($15,000) twenty-five thousand dollars
	251	+	($25,000) shall be advertised by posting notice thereof on a
	252	+	bulletin board maintained outside the purchasing office and in
	253	+	any other manner and for any length of time as may be
	254	+	determined. Sealed bids or bids to be submitted by a reverse
	255	+	auction procedure shall also be solicited by sending notice by
	256	+	mail or other electronic means to all persons, firms, or
	257	+	corporations who have filed a request in writing that they be
	258	+	listed for solicitation on bids for the particular items that
	259	+	are set forth in the request. If any person, firm, or
	260	+	corporation whose name is listed fails to respond to any
	261	+	solicitation for bids after the receipt of three
	262	+	solicitations, the listing may be cancelled.
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297		-	140 HB65 ~~EnrolledHB65 Enrolled~~
	290	+	140 HB65 INTRODUCEDHB65 INTRODUCED
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	292	+	(b) Except as provided in subsection (c), all bids
	293	+	shall be sealed when received and shall be opened in public at
	294	+	the hour stated in the notice.
	295	+	(c) The awarding authority may make purchases or
	296	+	contracts through a reverse auction procedure; provided,
	297	+	however, that a reverse auction shall only be allowed where
	298	+	the item to be purchased at a reverse auction is either not at
	299	+	the time available on the state purchasing program under the
	300	+	same terms and conditions or, if available, the lowest price
	301	+	offered in the reverse auction is equal to or less than the
	302	+	price for which the item is available on the state purchasing
299	303		program under the same terms and conditions. All of the
300	304		purchases shall be subject to audit by the Department of
301	305		Examiners of Public Accounts. For purposes of this chapter, a
302	306		reverse auction procedure includes either of the following:
303	307		(1) A real-time bidding process usually lasting less
304	308		than one hour and taking place at a previously scheduled time
305	309		and Internet location, in which multiple anonymous suppliers
306	310		submit bids to provide the designated goods or services.
307	311		(2) a. A bidding process usually lasting less than two
308	312		weeks and taking place during a previously scheduled period
309	313		and at a previously scheduled Internet location, in which
310	314		multiple anonymous suppliers submit bids to provide the
311	315		designated goods or services.
312	316		b. The Department of Examiners of Public Accounts shall
313	317		establish procedures for the use of reverse auction, which
314	318		shall be distributed to all contracting agencies and shall be
315	319		used in conducting any audits of the purchasing agency.
316		-	(d) All original bids together with all documents
317		-	pertaining to the award of the contract shall be retained in
318		-	accordance with a retention period of at least seven years
319		-	established by the Local Government Records Commission and
320		-	shall be open to public inspection.
321		-	(e) No purchase or contract involving professional
322		-	services shall be subject to the requirements of this chapter
323		-	and no purchase or contract involving an amount in excess of
324		-	fifteen thousand dollars ($15,000) forty thousand dollars
325		-	($40,000) shall be divided into parts involving amounts of
326		-	fifteen thousand dollars ($15,000) forty thousand dollars
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354		-	168 HB65 ~~EnrolledHB65 Enrolled~~
	347	+	168 HB65 INTRODUCEDHB65 INTRODUCED
355	348		Page 7
356		-	($40,000) or less for the purpose of avoiding the requirements
357		-	of this chapter. All such partial contracts involving fifteen
358		-	thousand dollars ($15,000) forty thousand dollars ($40,000) or
359		-	less shall be void."
	349	+	(d) All original bids together with all documents
	350	+	pertaining to the award of the contract shall be retained in
	351	+	accordance with a retention period of at least seven years
	352	+	established by the Local Government Records Commission and
	353	+	shall be open to public inspection.
	354	+	(e) No purchase or contract involving professional
	355	+	services shall be subject to the requirements of this chapter
	356	+	and no purchase or contract involving an amount in excess of
	357	+	fifteen thousand dollars ($15,000) twenty-five thousand
	358	+	dollars ($25,000) shall be divided into parts involving
	359	+	amounts of fifteen thousand dollars ($15,000) twenty-five
	360	+	thousand dollars ($25,000) or less for the purpose of avoiding
	361	+	the requirements of this chapter. All such partial contracts
	362	+	involving fifteen thousand dollars ($15,000) twenty-five
	363	+	thousand dollars ($25,000) or less shall be void."
360	364		"§16-13B-5
361	365		(a) Any agreement or collusion among bidders or
362	366		prospective bidders in restraint of freedom of competition, by
363	367		agreement, to bid at a fixed price or to refrain from bidding
364	368		or otherwise shall render the bids of such bidders void and
365	369		shall cause such bidders to be disqualified from submitting
366	370		further bids to the awarding authority on future purchases.
367	371		(b) Whoever knowingly participates in a collusive
368	372		agreement in violation of this section involving a bid or bids
369		-	of fifteen thousand dollars ($15,000) forty thousand dollars
370		-	($40,000) and under shall be guilty of a Class A misdemeanor
371		-	and, upon conviction, shall be punished as prescribed by law.
372		-	(c) Whoever knowingly and intentionally participates in
373		-	a collusive agreement in violation of this section involving a
374		-	bid or bids of over fifteen thousand dollars ($15,000) forty
375		-	thousand dollars ($40,000) shall be guilty of a Class C
376		-	felony, and upon conviction shall be punished as prescribed by
377		-	law."
378		-	Section 2. Although this bill would have as its purpose
379		-	or effect the requirement of a new or increased expenditure of
380		-	local funds, the bill is excluded from further requirements
381		-	and application under Section 111.05 of the Constitution of
382		-	Alabama of 2022, because the bill defines a new crime or
383		-	amends the definition of an existing crime.
	373	+	of fifteen thousand dollars ($15,000) twenty-five thousand
	374	+	dollars ($25,000) and under shall be guilty of a Class A
	375	+	misdemeanor and, upon conviction, shall be punished as
	376	+	prescribed by law.
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411		-	196 HB65 ~~EnrolledHB65 Enrolled~~
	404	+	196 HB65 INTRODUCEDHB65 INTRODUCED
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	406	+	(c) Whoever knowingly and intentionally participates in
	407	+	a collusive agreement in violation of this section involving a
	408	+	bid or bids of over fifteen thousand dollars ($15,000)
	409	+	twenty-five thousand dollars ($25,000) shall be guilty of a
	410	+	Class C felony, and upon conviction shall be punished as
	411	+	prescribed by law."
	412	+	Section 2. Although this bill would have as its purpose
	413	+	or effect the requirement of a new or increased expenditure of
	414	+	local funds, the bill is excluded from further requirements
	415	+	and application under Section 111.05 of the Constitution of
	416	+	Alabama of 2022, because the bill defines a new crime or
	417	+	amends the definition of an existing crime.
413	418		Section 3. This act shall become effective on the first
414	419		day of the third month following its passage and approval by
415	420		the Governor, or its otherwise becoming law.
416	421		197
417	422		198
418		-	199 HB65 EnrolledHB65 Enrolled
419		-	Page 9
420		-	________________________________________________
421		-	Speaker of the House of Representatives
422		-	________________________________________________
423		-	President and Presiding Officer of the Senate
424		-	House of Representatives
425		-	I hereby certify that the within Act originated in and
426		-	was passed by the House 11-Apr-23 as amended.
427		-	John Treadwell
428		-	Clerk
429		-	Senate 02-May-23 Passed
	423	+	199
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