SB277INTRODUCED
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SB277
E6UP222-1
By Senator Kitchens
RFD: Finance and Taxation Education
First Read: 02-Apr-24
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5 E6UP222-1 04/01/2024 SLU (L)bm 2024-969
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First Read: 02-Apr-24
SYNOPSIS:
Under existing law, a prospective bidder or
offeror who is protesting a competitive bid contract
must follow certain time periods and deadlines
throughout the process.
Under existing law, any person that submits to a
a contract, a contract proposal, a bid, or a grant
proposal to the state for an amount equal to or greater
than a certain amount, and for the purpose of financial
gain, is required to include a disclosure statement for
each contract, contract proposal, bid, or grant
proposal that it submits, subject to certain
exceptions.
Under existing law a disclosure statement must
provide certain information about individuals who may
gain financial benefit from their relationships with
the person submitting the contract, contract proposal,
bid, or grant proposal.
This bill would revise the procedures to protest
a contract to be let by competitive bid to the Chief
Procurement Officer by providing a certain number of
days for filing a notice of intent to protest and an
additional number of days to file a formal written
protest.
This bill would provide that the protest
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This bill would provide that the protest
procedures are not subject to the Administrative
Procedures Act.
This bill would increase the minimum amount of a
proposed contract for which a disclosure statement is
required, allow the use of alternative disclosure
statement forms, and allow the submission of a single
annual disclosure statement for multiple proposals with
the same state agency, department, or division.
This bill would allow for an alternative method
of certifying the authenticity of a disclosure
statement.Under existing law, a prospective bidder or
offeror who is protesting a competitive bid contract
must follow certain time periods and deadlines
throughout the process.
Under existing law, any person that submits to a
a contract, a contract proposal, a bid, or a grant
proposal to the state for an amount equal to or greater
than a certain amount, and for the purpose of financial
gain, is required to include a disclosure statement for
each contract, contract proposal, bid, or grant
proposal that it submits, subject to certain
exceptions.
Under existing law a disclosure statement must
provide certain information about individuals who may
gain financial benefit from their relationships with
the person submitting the contract, contract proposal,
bid, or grant proposal.
This bill would revise the procedures to protest
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This bill would revise the procedures to protest
a contract to be let by competitive bid to the Chief
Procurement Officer by providing a certain number of
days for filing a notice of intent to protest and an
additional number of days to file a formal written
protest.
This bill would provide that the protest
procedures are not subject to the Administrative
Procedures Act.
This bill would increase the minimum amount of a
proposed contract for which a disclosure statement is
required, allow the use of alternative disclosure
statement forms, and allow the submission of a single
annual disclosure statement for multiple proposals with
the same state agency, department, or division.
This bill would allow for an alternative method
of certifying the authenticity of a disclosure
statement.
A BILL
TO BE ENTITLED
AN ACT
To amend Sections 41-4-161, 41-4-164, 41-16-82,
41-16-83, 41-16-85, and 41-16-87, Code of Alabama 1975; to
provide further for the procedures for protesting certain
competitive bid contracts.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
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BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Sections 41-4-161, 41-4-164, 41-16-82,
41-16-83, 41-16-85, and 41-16-87, Code of Alabama 1975, are
amended to read as follows:
"§41-4-161
(a)(1) A bona fide prospective bidder or offeror who is
aggrieved in connection with the solicitation of a contract
may file a notice of intent to protest towith the Chief
Procurement Officer within 14five calendar days of the date of
issuance of after the date the solicitation , or any amendment
to it is issued, if the amendment is at issue. Upon filing the
notice, a bona fide prospective bidder or offeror shall have
seven calendar days to submit a formal written protest.
(2)a. Except as provided in paragraph b., a bona fide
actual bidder or offeror who is aggrieved in connection with
the intended award or the award of a contract may file a
notice of intent to protest towith the Chief Procurement
Officer within 14five calendar days of after the earlier of:
(i) the date of the award; or (ii) noticenotification of
intent to award, whichever is earlier, is posted in accordance
with this article. Upon filing a notice of intent to protest,
a bona fide actual bidder or offeror may submit a formal
protest within seven calendar days. The Chief Procurement
Officer may make an award if he or she does not receive the
notice of intent to protest within five days after it is
timely filed.
b. A matter that could have been raised under
subdivision (1) as a protest of the solicitation may not be
raised as a protest of the award or intended award of a
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raised as a protest of the award or intended award of a
contract.
(3) A notice of intent to protest filed under
subdivision (1) or (2) shall be in writing, be filed with the
Chief Procurement Officer, and set forth the intent to
protest, and state the grounds of the protest and the relief
requested with enough particularity to give notice of the
issues to be decided.
(b) The Chief Procurement Officer, or his or her
designee, may settle and resolve the protest of a bona fide
actual or prospective bidder or offeror concerning the
solicitation or award of a contract in accordance with rules
adopted under this article.
(c) If the protest is not resolved by mutual agreement
within 10 days after the protest is filed, the Chief
Procurement Officer shall commence an administrative review of
the protest and issue a decision in writing within 14 days
ofafter the review.
(d) A copy of the decision under subsection (c) shall
be mailed or otherwise furnished immediately to the protestor
and any other party intervening.
(e) A decision under subsection (c) shall be final and
conclusive, unless fraudulent , or unless a party adversely
affected by the decision appeals administratively to the
Director of Finance in accordance with Section 41-4-164.
(f) In the event of a timely protest under subsection
(a) or an appeal under Section 41-4-164, the state may not
proceed further with the solicitation or with the award of the
contract until five days after notice of the final decision is
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contract until five days after notice of the final decision is
provided to the protestor , ; however, aexcept that
solicitation or award of a protested contract is not stayedmay
proceed without delay if the Chief Procurement Officer, after
consultation with the head of the using agency or the head of
a purchasing agency, makes a written determination that the
solicitation or award of the contract without further delay is
necessary to protect the best interests of the state."
"§41-4-164
(a) A party that receives an adverse decision from the
Chief Procurement Officer under subsection (c) of Section
41-4-161(c) or subsection (c) of Section 41-4-162 (c) may
appeal the decision to the Director of Finance.
(b) AnAny appeal to the Director of Finance shall be
made in writing within five days ofafter receipt of the
adverse decision fromby the Chief Procurement Officer.
(c) The Director of Finance shall hold unlawful and set
aside any decision issued by the Chief Procurement Officer
that the director finds to be arbitrary, capricious, an abuse
of discretion, or otherwise not in accordance inconsistent with
law.
(d) The Director of Finance shall issue a written
decision within 14 days ofafter receipt of the appeal.
(e) A copy of the decision under subsection (d) shall
be mailed or otherwise furnished immediately to the parties.
(f) A decision under subsection (d) shall be final and
conclusive unless fraudulent.
(g) The administrative procedures and remedies provided
in this division shall not be construed as a contested case
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in this division shall not be construed as a contested case
under the Alabama Administrative Procedures Act. "
"§41-16-82
(a) This article shall only apply in cases where the to
either of the following:
(1) A proposed grant that exceeds twenty-five thousand
dollars ($25,000).
(2) A or proposed contract at issue exceeds five
thousand dollars ($5,000) that meets or exceeds the threshold
for bid or other formal solicitations under Title 39, Article
5 of Chapter 4 of Title 41, or any other law that requires
formal solicitation procedures for awarding public contracts .
(b)(1) All persons whothat, for the purpose of direct
financial gain, submit a proposal, bid, contract, or grant
proposal to the State of Alabama, shall include a disclosure
statement identical to, or provide the same required
disclosures as, the disclosure statement developed by the
Attorney General and approved by the Legislative Council. The
disclosure statement shall not be required for any of the
following:contracts
a. Contracts with publicly traded companies.
b. Contracts for gas, water, and electric services
where no competition exists, or where rates are fixed by law
or ordinance.
c. The award of economic development incentives .
(2) In circumstances where a contract is awarded by
competitive bid or other formal solicitation procedure , the
disclosure statement shall be required only from the person
receivingawarded the contract and shall be submitted by that
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receivingawarded the contract and shall be submitted by that
person within 1030 days of the award.
(c) Notwithstanding any provision of this article to
the contrary, a person entering into contracts or receiving
multiple grants during the same calendar year with multiple
state agencies may submit a single comprehensive annual
disclosure statement to each agency, department, or division
from which the person has been awarded, contracts, or grants.
(d)(1) State agencies, departments, or divisions are
authorized to establish electronic systems for submission of
annual disclosure statements, and submission to the shared
electronic systems shall satisfy the requirements for
submitting a disclosure statement to the agency, department,
or division.
(2) Agencies, departments, and divisions are further
authorized to establish shared electronic systems to satisfy
the requirements of this article. "
"§41-16-83
(a) The information required on the disclosure
statement shall be made under oath and penalty as prescribed
herein and shall include, but not be limited to, the
following:
(1) A list of the names and addresses of any public
official, and public employee, andor family members of the
public official andor public employee , who may have a family
relationship with the submitting person or his or her
immediate family members , or his or her employees, and who may
directly personally benefit financially from the contract,
proposal, request for proposal, invitation to bid, or grant
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proposal, request for proposal, invitation to bid, or grant
proposal.
(2) A description of any financial benefit that may be
knowingly gained by any public official, public employee,
andor family membersmember of the public official andor public
employee that may result either directly or indirectly from
the person or his or her immediate family members, or his or
her employees.
(3) The names and addresses of any paid consultant or
lobbyist for the contract, proposal, request for proposal,
invitation to bid, or grant proposal.
(b) The State of Alabama shall not enter into any
contract or appropriate any public funds with any person
whothat refuses to provide information required by this
section.
(c) The information required on the disclosure
statement shall be certified by the vendor or the grant
recipient. The certification may be performed by electronic
methods and must include all of the following:
(1) A representation that the individual who signs the
document is authorized to sign on behalf of the vendor, if
applicable.
(2) A declaration that the disclosure statement is
given under the penalty of perjury in the jurisdiction in
which it is executed.
(3) The date and place of execution. "
"§41-16-85
A copy of the disclosure statement shall be filed with
the awarding entity and as required by this article, retained
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the awarding entity and as required by this article, retained
as required by the State Records Commission, and made
available for review for audit purposes by the Department of
Examiners of Public Accounts and if it pertains to a state
contract,or other auditing authority. If the disclosure
pertains to a state contract that must be submitted to the
Contract Review Permanent Legislative Oversight Committee
pursuant to Article 3 of Chapter 2 of Title 29, a copy
shallmust be submitted to the Contract Review Permanent
Legislative Oversight Committee committee. Any disclosure
statement filed pursuant to this article shall be a public
record."
"§41-16-87
This article shall not apply to either of the
following:
(a) Any person who any entity which does not receive
state funds under a grant or a contract .
(b) Any grants or contracts between public procurement
units as defined in Section 41-4-170. "
Section 2. This act shall become effective on June 1,
2024.
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