AL
Alabama House Bill HB286

Alabama 2025 Regular Session

Alabama House Bill HB286 Compare Versions

Only one version of the bill is available at this time.
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11 HB286INTRODUCED
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33 HB286
44 EAPL29C-1
55 By Representatives Paramore, Sorrells, Marques, Clouse, Lee
66 RFD: County and Municipal Government
77 First Read: 13-Feb-25
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1212 5 EAPL29C-1 12/31/2024 PMG (L)lg 2024-3299
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1414 First Read: 13-Feb-25
1515 SYNOPSIS:
1616 Under existing law, the state procurement code
1717 governs all purchases made by government entities,
1818 except district attorneys and sheriffs, whose purchases
1919 are governed by local competitive bid laws.
2020 This bill would provide that volunteer fire
2121 departments and rescue squads are also governed by
2222 local competitive bid laws.
2323 Under existing law, a prospective bidder or
2424 offeror may protest the offering of a competitive bid
2525 contract by submitting a notice of protest within 14
2626 days of the offering.
2727 This bill would revise the deadline for filing a
2828 notice of protest from 14 to 5 days.
2929 This bill would provide that the protest
3030 procedures are not subject to the Administrative
3131 Procedure Act.
3232 Under existing law, any person that submits a
3333 contract, a contract proposal, a bid, or a grant
3434 proposal to the state in an amount equal to or greater
3535 than $5,000 and for the purpose of financial gain is
3636 required to include a disclosure statement for each
3737 contract, contract proposal, bid, or grant proposal
3838 that it submits, subject to certain exceptions. A
3939 disclosure statement must provide certain information
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6969 disclosure statement must provide certain information
7070 about individuals who may gain financial benefit from
7171 their relationships with the person submitting the
7272 contract, contract proposal, bid, or grant proposal.
7373 This bill would revise the threshold for which a
7474 disclosure statement is required, would allow the use
7575 of alternative disclosure statement forms, and would
7676 allow the submission of a single annual disclosure
7777 statement for multiple proposals with the same state
7878 agency, department, or division.
7979 This bill would allow for an alternative method
8080 of certifying the authenticity of a disclosure
8181 statement.
8282 Also, under existing law, public contracts for
8383 gas, water, or electric services are exempt from the
8484 requirement to submit a disclosure statement.
8585 This bill would also exempt from having to
8686 submit a disclosure statement those public contracts
8787 with publicly traded companies and awards of economic
8888 development incentives.
8989 A BILL
9090 TO BE ENTITLED
9191 AN ACT
9292 Relating to public contracts; to amend Sections
9393 41-4-124, 41-4-132, 41-4-136, 41-4-161, 41-4-164, 41-16-82,
9494 41-16-83, 41-16-85, and 41-16-87, Code of Alabama 1975; to
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124124 41-16-83, 41-16-85, and 41-16-87, Code of Alabama 1975; to
125125 provide further for who is subject to state competitive bid
126126 laws; to provide further for electronic bid submissions; to
127127 provide further for the procedures for protesting certain
128128 competitive bid contracts; and to revise requirements for
129129 disclosure statement forms.
130130 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
131131 Section 1. Sections 41-4-124, 41-4-132, 41-4-136,
132132 41-4-161, 41-4-164, 41-16-82, 41-16-83, 41-16-85, and
133133 41-16-87, Code of Alabama 1975, are amended to read as
134134 follows:
135135 "§41-4-124
136136 (a) Except as otherwise provided in this article, all
137137 rights, powers, duties, and authority relating to the
138138 procurement of supplies and services now vested in, or
139139 exercised by, any governmental body under existing law are
140140 transferred to the Chief Procurement Officer.
141141 (b) The following governmental bodies are subject to
142142 this article except as it relates to the purchase of
143143 professional services and the oversight and authority of the
144144 Chief Procurement Officer, and shall establish and maintain
145145 procurement offices and personnel and adopt rules as may be
146146 necessary to comply with this article:
147147 (1) All educational and eleemosynary institutions
148148 governed by a board of trustees or other similar governing
149149 body.
150150 (2) The Retirement Systems of Alabama.
151151 (3) The Department of Mental Health.
152152 (c) The Alabama Department of Transportation is subject
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182182 (c) The Alabama Department of Transportation is subject
183183 to this article except as it relates to the purchase of
184184 professional services , and the Department of Transportation
185185 shall adopt rules governing the purchase of professional
186186 services by the department which are consistent with the
187187 principles contained in this article and promote fairness,
188188 competition, transparency, integrity, and value in the
189189 procurement process.
190190 (d) The procurement of any supplies, services, or
191191 professional services by a district attorney ,or sheriff,
192192 volunteer fire department, or rescue squad shall be solely
193193 governed by Article 3, commencing with Section 41-16-50 of
194194 Chapter 16.
195195 (e) The procurement of any supplies or services by a
196196 legislative agency or judicial agency shall be solely governed
197197 by procedures adopted by the Legislative Council for all
198198 legislative agencies and by rules adopted by the Supreme Court
199199 of Alabama for all judicial agencies. The procedures adopted
200200 shall be consistent with any applicable requirements of the
201201 Constitution of Alabama of 2022, and shall be established in
202202 accordance with the underlying purposes and policies of
203203 promoting responsible and efficient use of public funds
204204 dedicated and appropriated to the agencies for their use,
205205 providing consistency of application of rules and requirements
206206 across all agencies within the applicable branch of state
207207 government, and promoting fairness, competition, transparency,
208208 integrity, and value in the procurement process. In no case
209209 may the legislative and judicial departments of the state
210210 adopt procedures that conflict with the laws of this state
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240240 adopt procedures that conflict with the laws of this state
241241 regarding the public disclosure of the use of public funds and
242242 the transparency of public expenditures, or that otherwise
243243 conflict with state law regarding public records and public
244244 access to those records. Except for the requirement to act in
245245 good faith, no other provision of this article shall apply to
246246 legislative or judicial agencies; provided, that the
247247 legislative and judicial departments may adopt all or any part
248248 of this article and its accompanying rules.
249249 (f)(1) The procurement of any supplies or services by
250250 the Alabama State Port Authority shall be solely governed by
251251 procedures adopted by the Board of Directors of the Alabama
252252 State Port Authority. The procedures adopted shall be
253253 consistent with any applicable requirements of the
254254 Constitution of Alabama of 2022, and shall be established in
255255 accordance with the underlying purposes and policies of
256256 promoting responsible and efficient use of the funds of the
257257 Alabama State Port Authority, providing consistency of
258258 application of rules and requirements across all agencies
259259 within the applicable branch of state government, and
260260 promoting fairness, competition, transparency, integrity, and
261261 value in the procurement process.
262262 (2) Except for the protection of information otherwise
263263 legally considered commercially confidential, sensitive, or of
264264 a nature that upon release would harm the competitive
265265 advantage of itself or its customers, concessionaires,
266266 lessees, or suppliers, the Alabama State Port Authority may
267267 not adopt procedures that conflict with the laws of this state
268268 regarding the public disclosure of the use of its funds and
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298298 regarding the public disclosure of the use of its funds and
299299 the transparency of its expenditures, or that otherwise
300300 conflict with state law regarding public records and public
301301 access to those records.
302302 (3) Except as provided in this subsection and the
303303 requirement to act in good faith, no other provision of this
304304 article shall apply to the Alabama State Port Authority;
305305 provided, however, that the Alabama State Port Authority may
306306 adopt all or any part of this article and its accompanying
307307 rules."
308308 "§41-4-132
309309 (a) Except as otherwise provided in this division,
310310 contracts shall be awarded by competitive sealed bidding.
311311 (b) An invitation to bid shall be issued and shall
312312 include a purchase description and all contractual terms and
313313 conditions applicable to the procurement.
314314 (c) Adequate public notice of the invitation to bid
315315 shall be given a reasonable time prior to the date set forth
316316 in the invitation for the opening of bids, in accordance with
317317 rules adopted under this article.
318318 (d) Bids shall be opened publicly in the presence of
319319 one or more witnesses at the time and place designated in the
320320 invitation to bid. Alternatively, bids may be opened in an
321321 electronic system at a time specified in the invitation to bid
322322 and in a manner that records the time of opening. The amount
323323 of each bid, the name of each bidder, and any other
324324 information required by rule shall be recorded. The record and
325325 each bid shall be open to public inspection to the extent
326326 required by Section 41-4-115.
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356356 required by Section 41-4-115.
357357 (e) Bids shall be unconditionally accepted without
358358 alteration or correction, except as authorized in this
359359 article. Bids shall be evaluated based on the requirements set
360360 forth in the invitation to bid, which may include criteria to
361361 determine acceptability, such as inspection, testing, quality,
362362 workmanship, delivery, and suitability for a particular
363363 purpose. Any criteria that will affect the bid price and will
364364 be considered in evaluation for award shall be objectively
365365 measurable, such as discounts, transportation costs, and total
366366 or life cycle costs. The invitation to bid shall set forth the
367367 evaluation criteria to be used. No criteria may be used in bid
368368 evaluations that are not set forth in the invitation to bid.
369369 (f)(1) When a bid is submitted that contains an error,
370370 the Chief Procurement Officer or head of a purchasing agency
371371 may authorize the correction or withdrawal of the bid or may
372372 cancel the award of the contract. The authorization of the
373373 correction or withdrawal shall be done in accordance with
374374 rules adopted by the Chief Procurement Officer.
375375 (2) After a bid has been opened, with the exception of
376376 price negotiations with the lowest responsible bidder, no
377377 changes in bid prices or other provisions of bids prejudicial
378378 to the interest of the state or fair competition shall be
379379 permitted.
380380 (g)(1) Unless there is a compelling reason to reject
381381 bids, as prescribed by rules, notice of intent to award to the
382382 lowest responsive and responsible bidder whose bid meets the
383383 requirements set forth in the invitation to bid shall be given
384384 by posting the notice at a location specified in the
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414414 by posting the notice at a location specified in the
415415 invitation to bid. Before posting the notice of intent to
416416 award, the Chief Procurement Officer or head of the purchasing
417417 agency may negotiate with the lowest responsive and
418418 responsible bidder to lower the bid price within the scope of
419419 the invitation to bid. The invitation to bid and notice of
420420 intent to award shall contain a statement of the bidder's
421421 right to protest.
422422 (2) The Chief Procurement Officer may award multiple
423423 purchase contracts resulting from a single invitation to bid
424424 where the specifications of the items of supplies or services
425425 intended to be purchased by a requisitioning agency or
426426 agencies are determined, in whole or in part, by technical
427427 compatibility and operational requirements. In order to make
428428 multiple awards under this subdivision, the awarding authority
429429 shall include in the invitation to bid a notice that multiple
430430 awards may be made and the specific technical compatibility or
431431 operational requirements necessitating multiple awards.
432432 Multiple awards of purchase contracts with unique technical
433433 compatibility or operational specifications shall be made to
434434 the lowest responsible bidder complying with the unique
435435 technical compatibility or operational specifications. The
436436 requisitioning agency shall provide the awarding authority
437437 with the information necessary for it to determine the
438438 necessity for the award of multiple purchase contracts under
439439 this subdivision.
440440 (h) When it is considered impractical by the Chief
441441 Procurement Officer to initially prepare a purchase
442442 description to support an award based on price, an invitation
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472472 description to support an award based on price, an invitation
473473 to bid may be issued requesting the submission of unpriced
474474 offers to be followed by an invitation to bid limited to those
475475 bidders whose offers have been qualified under the criteria
476476 set forth in the first solicitation.
477477 (i)(1) Before soliciting bids, the Chief Procurement
478478 Officer may authorize issuance of a request for qualifications
479479 from prospective bidders. The request shall contain, at a
480480 minimum, a description of the scope of work to be solicited by
481481 the invitation for bids, the deadline for submission of
482482 information, and how prospective bidders may apply for
483483 consideration. The request shall require information
484484 concerning the prospective bidders' product specifications,
485485 qualifications, experience, and ability to perform the
486486 requirements of the contract. Adequate public notice of the
487487 request for qualifications shall be given in the manner
488488 provided in subsection (c).
489489 (2) After receipt of the responses to the request for
490490 qualifications from prospective bidders, all qualified
491491 bidders, as determined by the Chief Procurement Officer, shall
492492 have an opportunity to bid. The determination regarding which
493493 bidders are qualified is not subject to review."
494494 "§41-4-136
495495 (a) Notwithstanding any other provision of this
496496 article, the Chief Procurement Officer or the head of a
497497 purchasing agency may make emergency procurements when there
498498 is a threat to public health, welfare, or safety under
499499 emergency conditions, as defined by rule. Emergency
500500 procurements made under this section shall be made with as
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530530 procurements made under this section shall be made with as
531531 much competition as is practicable under the circumstances.
532532 (b) The authority to make emergency procurements may
533533 not be delegated except to the Chief Procurement Officer's
534534 staff in the Division of Procurement at his or her direction.
535535 Supplies and services that are exempt from the oversight and
536536 authority of the Chief Procurement Officer, including, but not
537537 limited to, those listed in Sections 41-4-125, 41-4-125.01,
538538 and 41-4-126, shall not be required to be procured under the
539539 emergency procurement authority of the Chief Procurement
540540 Officer. A purchasing agency not otherwise under the oversight
541541 and authority of the Chief Procurement Officer shall not be
542542 required to make emergency procurements under the authority of
543543 the Chief Procurement Officer .
544544 (c) A written determination of the basis for the
545545 emergency and for the selection of the particular contractor
546546 shall be included in the contract file."
547547 "§41-4-161
548548 (a)(1) A bona fide prospective bidder or offeror who is
549549 aggrieved in connection with the solicitation of a contract
550550 may file a notice of intent to protest towith the Chief
551551 Procurement Officer within 14five calendar days of the date of
552552 issuance ofafter the date the solicitation or any amendment to
553553 itthe solicitation is issued , if the amendment is at issue.
554554 After filing a notice of intent to protest, the bona fide
555555 prospective bidder or offeror shall have seven calendar days
556556 to submit a formal written protest.
557557 (2)a. Except as provided in paragraph b., a bona fide
558558 actual bidder or offeror who is aggrieved in connection with
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588588 actual bidder or offeror who is aggrieved in connection with
589589 the intended award or the award of a contract may file a
590590 notice of intent to protest towith the Chief Procurement
591591 Officer within 14five calendar days ofafter the date of the
592592 award or the date of the notice notification of intent to
593593 award, whichever is earlier, is posted in accordance with this
594594 article. After filing a notice of intent to protest, the bona
595595 fide actual bidder or offeror shall have seven calendar days
596596 to submit a formal written protest. The Chief Procurement
597597 Officer may award the contract at issue if he or she does not
598598 receive the notice of intent to protest within the five-day
599599 period.
600600 b. A matter that could have been raised under
601601 subdivision (1) as a protest of the solicitation may not be
602602 raised as a protest of the award or intended award of a
603603 contract.
604604 (3) A notice of intent to protest filed under
605605 subdivision (1) or (2) shall be in writing, be filed with the
606606 Chief Procurement Officer, and set forthstate the intent to
607607 protest, and state the grounds of the protest and the relief
608608 requested with enough particularity to give notice of the
609609 issues to be decided.
610610 (b) The Chief Procurement Officer , or his or her
611611 designee, may settle and resolve the protest of a bona fide
612612 actual or prospective bidder or offeror concerning the
613613 solicitation or award of a contract in accordance with rules
614614 adopted under this article.
615615 (c) If the protest is not resolved by mutual agreement
616616 within 10 days after the protest is filed, the Chief
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646646 within 10 days after the protest is filed, the Chief
647647 Procurement Officer shall commence an administrative review of
648648 the protest and issue a decision in writing within 14 days
649649 ofafter the review.
650650 (d) A copy of the decision under subsection (c) shall
651651 be mailed or otherwise furnished immediately to the protestor
652652 and any other party intervening.
653653 (e) A decision under subsection (c) shall be final and
654654 conclusive, unless fraudulent , or unless a party adversely
655655 affected by the decision appeals administratively to the
656656 Director of Finance in accordance with Section 41-4-164.
657657 (f)(1) Except as provided in subdivision (2), in In the
658658 event of a timely protest under subsection (a) or an appeal
659659 under Section 41-4-164, the state may not proceed further with
660660 the solicitation or with the award of the contract until five
661661 days after notice of the final decision is provided to the
662662 protestor, except that.
663663 (2) Notwithstanding subdivision (1), a solicitation or
664664 award of a protested contract is not stayedmay proceed without
665665 delay if the Chief Procurement Officer, after consultation
666666 with the head of the using agency or the head of a purchasing
667667 agency, makes a written determination that the solicitation or
668668 award of the contract without further delay is necessary to
669669 protect the best interests of the state."
670670 "§41-4-164
671671 (a) A party that receives an adverse decision from the
672672 Chief Procurement Officer under subsection (c) of Section
673673 41-4-161(c) or subsection (c) of Section 41-4-162 (c) may
674674 appeal the decision to the Director of Finance.
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704704 appeal the decision to the Director of Finance.
705705 (b) AnAny appeal to the Director of Finance shall be
706706 made in writing within five days ofafter receipt of the
707707 adverse decision fromby the Chief Procurement Officer.
708708 (c) The Director of Finance shall hold unlawful and set
709709 aside any decision issued by the Chief Procurement Officer
710710 that the director finds to be arbitrary, capricious, an abuse
711711 of discretion, or otherwise not in accordance inconsistent with
712712 law.
713713 (d) The Director of Finance shall issue a written
714714 decision within 14 days ofafter receipt of the appeal.
715715 (e) A copy of the decision under subsection (d) shall
716716 be mailed or otherwise furnished immediately to the parties.
717717 (f) A decision under subsection (d) shall be final and
718718 conclusive unless fraudulent.
719719 (g) The administrative procedures and remedies provided
720720 in this division shall not be construed as a contested case
721721 under the Alabama Administrative Procedure Act. "
722722 "§41-16-82
723723 (a) This article shall only apply in cases where the to
724724 either of the following:
725725 (1) A proposed grant that exceeds twenty-five thousand
726726 dollars ($25,000).
727727 (2) Aor proposed contract at issue exceeds five
728728 thousand dollars ($5,000) that meets or exceeds the threshold
729729 for bid or other formal solicitations under Article 5 of
730730 Chapter 4 of Title 41 or any other law that requires formal
731731 solicitation procedures for awarding public contracts .
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762762 (b)(1) All persons whothat, for the purpose of direct
763763 financial gain, submit a proposal, bid, contract, or grant
764764 proposal to the State of Alabama , shall include a disclosure
765765 statement identical to, or provide the same required
766766 disclosures as, the disclosure statement developed by the
767767 Attorney General and approved by the Legislative Council. The
768768 disclosure statement shall not be required for contractsany of
769769 the following:
770770 a. Contracts with publicly traded companies.
771771 b. Contracts for gas, water, and electric services
772772 where no competition exists, or where rates are fixed by law
773773 or ordinance.
774774 c. Awards of economic development incentives.
775775 (2) In circumstances where a contract is awarded by
776776 competitive bid or other formal solicitation procedure , the
777777 disclosure statement shall be required only from the person
778778 receivingawarded the contract and shall be submitted by that
779779 person within 1030 days of the award.
780780 (c)(1) State agencies, departments, or divisions may
781781 establish electronic systems for submission of annual
782782 disclosure statements, and submission to the shared electronic
783783 systems shall satisfy the requirements for submitting a
784784 disclosure statement to the agency, department, or division.
785785 (2) Agencies, departments, and divisions may establish
786786 shared electronic systems to satisfy the requirements of this
787787 article."
788788 "§41-16-83
789789 (a) The information required on the disclosure
790790 statement shall be made under oath and penalty as prescribed
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820820 statement shall be made under oath and penalty as prescribed
821821 herein and shall include, but not be limited to, the
822822 following:
823823 (1) A list of the names and addresses of any public
824824 official, and public employee, and family members of the
825825 public official andor public employee , who may have a family
826826 relationship with the submitting person or his or her
827827 immediate family members , or his or her employees,and who may
828828 directly personally benefit financially from the contract,
829829 proposal, request for proposal, invitation to bid, or grant
830830 proposal.
831831 (2) A description of any financial benefit that may be
832832 knowingly gained by any public official, public employee,
833833 andor family membersmember of the public official andor public
834834 employee that may result either directly or indirectly from
835835 the person or his or her immediate family members, or his or
836836 her employees.
837837 (3) The names and addresses of any paid consultant or
838838 lobbyist for the contract, proposal, request for proposal,
839839 invitation to bid, or grant proposal.
840840 (b) The State of Alabama shall not enter into any
841841 contract or appropriate any public funds with any person
842842 whothat refuses to provide information required by this
843843 section.
844844 (c) The information required on the disclosure
845845 statement shall be certified by the vendor or the grant
846846 recipient. The certification may be performed by electronic
847847 methods and must include all of the following:
848848 (1) A representation that the individual who signs the
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878878 (1) A representation that the individual who signs the
879879 document is authorized to sign on behalf of the vendor, if
880880 applicable.
881881 (2) A declaration that the disclosure statement is
882882 given under the penalty of perjury in the jurisdiction in
883883 which it is executed.
884884 (3) The date and place of execution. "
885885 "§41-16-85
886886 (a) A copy of the disclosure statement shall be filed
887887 with the awarding entity and as required by this article,
888888 retained as required by the State Records Commission, and made
889889 available for review for audit purposes by the Department of
890890 Examiners of Public Accounts and if it pertains to a state
891891 contract,or other auditing authority. If the disclosure
892892 pertains to a state contract that must be submitted to the
893893 Contract Review Permanent Legislative Oversight Committee
894894 pursuant to Article 3 of Chapter 2 of Title 29, a copy
895895 shallmust be submitted to the Contract Review Permanent
896896 Legislative Oversight Committee committee.
897897 (b) Any disclosure statement filed pursuant to this
898898 article shall be a public record."
899899 "§41-16-87
900900 This article shall not apply to either of the
901901 following:
902902 (1) Any person that any entity which does not receive
903903 state funds under a grant or a contract.
904904 (2) Any grants or contracts between public procurement
905905 units."
906906 Section 2. This act shall become effective on June 1,
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936936 Section 2. This act shall become effective on June 1,
937937 2025.449