SB36INTRODUCED
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SBKC58-1
By Senator Elliott
RFD: Finance and Taxation Education
First Read: 07-Mar-23
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SYNOPSIS:
Under existing law, the minimum amount for
contracts subject to competitive bid for city and
county boards of education is $15,000.
This bill would increase the minimum amount to
$25,000.
Section 111.05 of the Constitution of Alabama of
2022, prohibits a general law whose purpose or effect
would be to require a new or increased expenditure of
local funds from becoming effective with regard to a
local governmental entity without enactment by a 2/3
vote unless: it comes within one of a number of
specified exceptions; it is approved by the affected
entity; or the Legislature appropriates funds, or
provides a local source of revenue, to the entity for
the purpose.
The purpose or effect of this bill would be to
require a new or increased expenditure of local funds
within the meaning of the amendment. However, the bill
does not require approval of a local governmental
entity or enactment by a 2/3 vote to become effective
because it comes within one of the specified exceptions
contained in the amendment.
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A BILL
TO BE ENTITLED
AN ACT
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.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Sections 16-13B-1, 16-13B-4, and 16-13B-5 of
the Code of Alabama 1975, are amended to read as follows:
"§16-13B-1
(a) This chapter shall apply to county boards of
education and city boards of education, or any combination of
city and county boards of education as herein provided for the
competitive bidding of certain contracts. With the exception
of contracts for public works whose competitive bidding
requirements are governed exclusively by Title 39, all
expenditure of funds of whatever nature for labor, services,
work, or for the purchase of materials, equipment, supplies,
or other personal property involving fifteen thousand dollars
($15,000) twenty-five thousand dollars ($25,000) or more, and
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the lease of materials, equipment, supplies, or other personal
property where the lessee is, or becomes legally and
contractually, bound under the terms of the lease, to pay a
total amount of fifteen thousand dollars ($15,000) twenty-five
thousand dollars ($25,000) or more, made by or on behalf of
any city or county board of education, except as hereinafter
provided, shall be made under contractual agreement entered
into by free and open competitive bidding, on sealed bids, to
the lowest responsible bidder.
(b) Prior to advertising for bids for an item of
personal property, where a city or county board of education,
thereof is the awarding authority, the awarding authority may
establish a local preference zone consisting of either the
legal boundaries or jurisdiction of the awarding authority, or
the boundaries of the county in which the awarding authority
is located, or the boundaries of the core based statistical
area (CBSA) in which the awarding authority is located. If no
such action is taken by the awarding authority, the boundaries
of the local preference zone shall be deemed to be the same as
the legal boundaries or jurisdiction of the awarding
authority. In the event a bid is received for an item of
personal property to be purchased or contracted for from a
person, firm, or corporation deemed to be a responsible
bidder, having a place of business within the local preference
zone where a city or county board of education, thereof is the
awarding authority, and the bid is no more than three percent
greater than the bid of the lowest responsible bidder, the
awarding authority may award the contract to the resident
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responsible bidder. In the event only one bidder responds to
the invitation to bid, the awarding authority may reject the
bid and negotiate the purchase or contract, providing the
negotiated price is lower than the bid price.
(c) The governing bodies of two or more city or county
boards of education, or any combination of two or more city or
county boards of education, counties, municipalities, or
instrumentalities thereof, may provide, by joint agreement,
for the purchase of labor, services, or work, or for the
purchase or lease of materials, equipment, supplies, or other
personal property for use by their respective agencies. The
agreement shall be entered into by official actions of the
contracting agencies adopted by each of the participating
governing bodies which shall set forth the categories of
labor, services, or work, or for the purchase or lease of
materials, equipment, supplies, or other personal property to
be purchased, the manner of advertising for bids and the
awarding of contracts, the method of payment by each
participating contracting agency, and other matters deemed
necessary to carry out the purposes of the agreement. Each
contracting agency's share of expenditures for purchases under
any agreement shall be appropriated and paid in the manner set
forth in the agreement and in the same manner as for other
expenses of the contracting agency. The contracting agencies
entering into a joint agreement, as herein permitted, may
designate a joint purchasing or bidding agent, and the agent
shall comply with this chapter. Purchases, contracts, or
agreements made pursuant to a joint purchasing or bidding
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agreement shall be subject to all terms and conditions of this
chapter. Any participation by counties and municipalities
authorized in this section shall be subject to the provisions
of subsection (b) of Section 41-16-50. In the event that
utility services are no longer exempt from competitive bidding
under this chapter, non-adjoining boards of education may not
purchase utility services by joint agreement under authority
granted by this subsection.
(d) The awarding authority may require bidders to
furnish a bid bond for a particular bid solicitation if the
bonding requirement applies to all bidders, is included in the
written bid specifications, and if bonding is available for
the services, equipment, or materials."
"§16-13B-4
(a) All proposed purchases in excess of fifteen
thousand dollars ($15,000) twenty-five thousand dollars
($25,000) shall be advertised by posting notice thereof on a
bulletin board maintained outside the purchasing office and in
any other manner and for any length of time as may be
determined. Sealed bids or bids to be submitted by a reverse
auction procedure shall also be solicited by sending notice by
mail or other electronic means to all persons, firms, or
corporations who have filed a request in writing that they be
listed for solicitation on bids for the particular items that
are set forth in the request. If any person, firm, or
corporation whose name is listed fails to respond to any
solicitation for bids after the receipt of three
solicitations, the listing may be cancelled.
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(b) Except as provided in subsection (c), all bids
shall be sealed when received and shall be opened in public at
the hour stated in the notice.
(c) The awarding authority may make purchases or
contracts through a reverse auction procedure; provided,
however, that a reverse auction shall only be allowed where
the item to be purchased at a reverse auction is either not at
the time available on the state purchasing program under the
same terms and conditions or, if available, the lowest price
offered in the reverse auction is equal to or less than the
price for which the item is available on the state purchasing
program under the same terms and conditions. All of the
purchases shall be subject to audit by the Department of
Examiners of Public Accounts. For purposes of this chapter, a
reverse auction procedure includes either of the following:
(1) A real-time bidding process usually lasting less
than one hour and taking place at a previously scheduled time
and Internet location, in which multiple anonymous suppliers
submit bids to provide the designated goods or services.
(2) a. A bidding process usually lasting less than two
weeks and taking place during a previously scheduled period
and at a previously scheduled Internet location, in which
multiple anonymous suppliers submit bids to provide the
designated goods or services.
b. The Department of Examiners of Public Accounts shall
establish procedures for the use of reverse auction, which
shall be distributed to all contracting agencies and shall be
used in conducting any audits of the purchasing agency.
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(d) All original bids together with all documents
pertaining to the award of the contract shall be retained in
accordance with a retention period of at least seven years
established by the Local Government Records Commission and
shall be open to public inspection.
(e) No purchase or contract involving professional
services shall be subject to the requirements of this chapter
and no purchase or contract involving an amount in excess of
fifteen thousand dollars ($15,000) twenty-five thousand
dollars ($25,000) shall be divided into parts involving
amounts of fifteen thousand dollars ($15,000) twenty-five
thousand dollars ($25,000) or less for the purpose of avoiding
the requirements of this chapter. All such partial contracts
involving fifteen thousand dollars ($15,000) twenty-five
thousand dollars ($25,000) or less shall be void."
"§16-13B-5
(a) Any agreement or collusion among bidders or
prospective bidders in restraint of freedom of competition, by
agreement, to bid at a fixed price or to refrain from bidding
or otherwise shall render the bids of such bidders void and
shall cause such bidders to be disqualified from submitting
further bids to the awarding authority on future purchases.
(b) Whoever knowingly participates in a collusive
agreement in violation of this section involving a bid or bids
of fifteen thousand dollars ($15,000) twenty-five thousand
dollars ($25,000) and under shall be guilty of a Class A
misdemeanor and, upon conviction, shall be punished as
prescribed by law.
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(c) Whoever knowingly and intentionally participates in
a collusive agreement in violation of this section involving a
bid or bids of over fifteen thousand dollars ($15,000)
twenty-five thousand dollars ($25,000) shall be guilty of a
Class C felony, and upon conviction shall be punished as
prescribed by law."
Section 2. Although this bill would have as its purpose
or effect the requirement of a new or increased expenditure of
local funds, the bill is excluded from further requirements
and application under Section 111.05 of the Constitution of
Alabama of 2022, because the bill defines a new crime or
amends the definition of an existing crime.
Section 3. This act shall become effective on the first
day of the third month following its passage and approval by
the Governor, or its otherwise becoming law.
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