AL
Alabama House Bill HB320

Alabama 2025 Regular Session

Alabama House Bill HB320 Compare Versions

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1-HB320ENGROSSED
1+HB320INTRODUCED
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33 HB320
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55 By Representative Pringle
66 RFD: State Government
77 First Read: 20-Feb-25
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12-5 HB320 Engrossed
12+5 CXGUCQW-1 02/19/2025 CMH (L)bm 2025-596
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1414 First Read: 20-Feb-25
15+SYNOPSIS:
16+Under existing law, before entering into any
17+contract for a public works involving an amount in
18+excess of $100,000, an awarding authority must
19+advertise for sealed bids in a specified manner, which
20+generally includes advertisement by newspaper once a
21+week for three consecutive weeks.
22+This bill would provide certain additional
23+methods of publication that would serve as a safe
24+harbor for the award of a contract for public works in
25+the event a publication by newspaper fails to be
26+completed.
1527 A BILL
1628 TO BE ENTITLED
1729 AN ACT
1830 Relating to contracts for public works; to amend
1931 Section 39-2-2, Code of Alabama 1975, to further provide for
2032 the requirement to publish public notice of the contract.
2133 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
2234 Section 1. Section 39-2-2, Code of Alabama 1975, is
2335 amended to read as follows:
2436 "§39-2-2
25-(a)(1) Before entering into any contract for a public
26-works involving an amount in excess of one hundred thousand
27-dollars ($100,000), the awarding authority shall advertise for
28-sealed bids, except as provided in subsection (j).
29-(2)a. If the awarding authority is the state, a county,
30-or an instrumentality thereof, it shall advertise for sealed
31-bids at least once each week for three consecutive weeks in a
32-newspaper of general circulation in the county or counties in
33-which the improvement, or some part thereof, is to be made.
34-The Department of Finance may adopt rules to provide for the
35-advertisement for the sealed bids on the website or digital
36-version of the printed newspaper described in this paragraph.
37-b.1. If the awarding authority is a municipality, or an
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66+"§39-2-2
67+(a)(1) Before entering into any contract for a public
68+works involving an amount in excess of one hundred thousand
69+dollars ($100,000), the awarding authority shall advertise for
70+sealed bids, except as provided in subsection (j).
71+(2)a. If the awarding authority is the state, a county,
72+or an instrumentality thereof, it shall advertise for sealed
73+bids at least once each week for three consecutive weeks in a
74+newspaper of general circulation in the county or counties in
75+which the improvement, or some part thereof, is to be made.
76+The Department of Finance may adopt rules to provide for the
77+advertisement for the sealed bids on the website or digital
78+version of the printed newspaper described in this paragraph.
6779 b.1. If the awarding authority is a municipality, or an
6880 instrumentality thereof, it shall advertise for sealed bids at
6981 least once in a newspaper of general circulation published in
7082 the municipality where the awarding authority is located. The
7183 Department of Finance may adopt rules to provide for the
7284 advertisement for the sealed bids on the website or digital
7385 version of the printed newspaper described in this paragraph.
7486 2. If no newspaper is published in the municipality,
7587 the awarding authority shall advertise by posting notice
7688 thereof on a bulletin board maintained outside the purchasing
7789 office and in any other manner and for the length of time as
7890 may be determined. In addition to bulletin board notice,
7991 sealed bids shall also be solicited by sending notice by U.S.
8092 mail or electronic mail to all persons who have filed a
8193 request in writing with the official designated by the
8294 awarding authority that they be listed for solicitation on
83-bids for the public works contracts indicated in the request.
84-If any person whose name is listed fails to respond to any
85-solicitation for bids after the receipt of three such
86-solicitations, the listing may be canceled.
87-(3) The advertisements shall briefly describe the
88-improvement, state that plans and specifications for the
89-improvement are on file for examination in a designated office
90-of the awarding authority, state the procedure for obtaining
91-plans and specifications, state the time and place in which
92-bids shall be received and opened, and identify whether
93-prequalification is required and where all written
94-prequalification information is available for review.
95-(4) All bids shall be opened publicly at the advertised
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124+awarding authority that they be listed for solicitation on
125+bids for the public works contracts indicated in the request.
126+If any person whose name is listed fails to respond to any
127+solicitation for bids after the receipt of three such
128+solicitations, the listing may be canceled.
129+(3) The advertisements shall briefly describe the
130+improvement, state that plans and specifications for the
131+improvement are on file for examination in a designated office
132+of the awarding authority, state the procedure for obtaining
133+plans and specifications, state the time and place in which
134+bids shall be received and opened, and identify whether
135+prequalification is required and where all written
136+prequalification information is available for review.
125137 (4) All bids shall be opened publicly at the advertised
126138 time and place.
127139 (5) No public work, as defined in this chapter,
128140 involving a sum in excess of one hundred thousand dollars
129141 ($100,000) shall be split into parts involving sums of one
130142 hundred thousand dollars ($100,000) or less for the purpose of
131143 evading the requirements of this section.
132144 (b)(1) An awarding authority may let contracts for
133145 public works involving one hundred thousand dollars ($100,000)
134146 or less with or without advertising or sealed bids.
135147 (2) AnNotwithstanding subdivision (a)(2), an awarding
136148 authority may enter into a contract for public works if : (i)
137149 an advertisement for sealed bids for the contract was
138-submitted by the awarding authority to a newspaper in
139-accordance with this section and; (ii) the newspaper only
140-publishedfailed to publish the advertisement for two weeks if
141-the authority can provide proof that it, in good faith,
142-submitted the advertisement to the newspaper with instructions
143-to publish the notice in accordance with the provisions of
144-this section.in accordance with this section; and (iii) any of
145-the following occurred:
146-a. The advertisement was published for at least three
147-consecutive weeks on a centralized website maintained by the
148-Department of Finance as authorized by rule; provided, if the
149-awarding authority is a municipality, the publication shall be
150-for a minimum of seven consecutive calendar days.
151-b. The awarding authority did both of the following:
152-1. Thirty or more days prior to the bid submission
153-deadline, mailed by first class U.S. mail or electronic mail
150+submitted by the awarding authority to a newspaper and; (ii)
151+the newspaper only publishedfailed to publish the
152+advertisement for two weeks if the authority can provide proof
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182+advertisement for two weeks if the authority can provide proof
183+that it, in good faith, submitted the advertisement to the
184+newspaper with instructions to publish the notice in
185+accordance with the provisions of this section. in accordance
186+with this section; and (iii) any of the following occurred:
187+a. The advertisement was published for at least three
188+consecutive weeks on a centralized website maintained by the
189+awarding authority or by the Department of Finance as
190+authorized by rule; provided, if the awarding authority is a
191+municipality, the publication shall be for a minimum of seven
192+consecutive calendar days.
193+b. The awarding authority did both of the following:
194+1. Thirty or more days prior to the bid submission
183195 deadline, mailed by first class U.S. mail or electronic mail
184196 the advertisement to all persons who registered with the
185197 awarding authority to receive a solicitation on bids for the
186198 public works contract.
187-2. Posted the advertisement on the centralized website
188-of the Department of Finance as described in paragraph a. and
189-included in the advertisement instructions on how to register
190-with the awarding authority to receive future bid
191-solicitations by U.S. mail or electronic mail.
199+2. Posted the advertisement on either the centralized
200+website of the awarding authority or of the Department of
201+Finance as described in paragraph a. and included in the
202+advertisement instructions on how to register with the
203+awarding authority to receive future bid solicitations by U.S.
204+mail or electronic mail.
192205 c. If the awarding authority is the Department of
193206 Transportation, the department published the advertisement on
194207 its publicly accessible website for a minimum of three weeks.
195208 (c) All contracts for public works entered into in
196209 violation of this title shall be void and violative of public
197210 policy. Anyone who willfully violates this article concerning
198-public works shall be guilty of a Class C felony.
199-(d)(1) Excluded from the operation of this title shall
200-be contracts with persons who shall perform only
201-architectural, engineering, construction management, program
202-management, or project management services in support of the
203-public works and who shall not engage in actual construction,
204-repair, renovation, or maintenance of the public works with
205-their own forces, by contract, subcontract, purchase order,
206-lease, or otherwise.
207-(2)a. Excluded from operation of the bidding
208-requirements in this title are contracts for the purchase of
209-any heating or air conditioning units or systems by any
210-awarding authority subject to Chapter 13B of Title 16, Article
211-3, commencing with Section 41-16-50, of Chapter 16 of Title
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240+policy. Anyone who willfully violates this article concerning
241+public works shall be guilty of a Class C felony.
242+(d)(1) Excluded from the operation of this title shall
243+be contracts with persons who shall perform only
244+architectural, engineering, construction management, program
245+management, or project management services in support of the
246+public works and who shall not engage in actual construction,
247+repair, renovation, or maintenance of the public works with
248+their own forces, by contract, subcontract, purchase order,
249+lease, or otherwise.
250+(2)a. Excluded from operation of the bidding
251+requirements in this title are contracts for the purchase of
252+any heating or air conditioning units or systems by any
253+awarding authority subject to Chapter 13B of Title 16, Article
241254 3, commencing with Section 41-16-50, of Chapter 16 of Title
242255 41, or Article 5, commencing with Section 41-4-110, of Chapter
243256 4 of Title 41, provided the contract is entered into with an
244257 Alabama vendor who has been granted approved vendor status for
245258 the sale of heating or air conditioning units or systems as a
246259 part of a purchasing cooperative, and each of the following
247260 occur:
248261 a.1. The heating or air conditioning unit or system
249262 being purchased is available as a result of a competitive bid
250263 process conducted by a governmental entity which has been
251264 approved by the Department of Examiners of Public Accounts.
252265 b.2. The purchase of the heating or air conditioning
253266 unit or system is not available on the state purchasing
254267 program at the time or the purchase under the purchasing
255268 cooperative is available at a price that is equal to or less
256-than that available through the state purchasing program.
257-c.3. The entity entering into the contract for the
258-purchase of the heating or air conditioning unit or system has
259-been notified by the Department of Examiners of Public
260-Accounts that the competitive bid process utilized by the
261-cooperative program offering the goods complies with this
262-subdivision.
263-d.4. Upon request, the vendor has provided the
264-purchasing entity with a report of sales made under this
265-subdivision during the previous 12-month period, to include a
266-general description of the heating or air conditioning units
267-and systems sold, the number of units sold per entity, and the
268-purchase price of the units.
269-e.b. The exemption from the requirement to utilize use
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298+cooperative is available at a price that is equal to or less
299+than that available through the state purchasing program.
300+c.3. The entity entering into the contract for the
301+purchase of the heating or air conditioning unit or system has
302+been notified by the Department of Examiners of Public
303+Accounts that the competitive bid process utilized by the
304+cooperative program offering the goods complies with this
305+subdivision.
306+d.4. Upon request, the vendor has provided the
307+purchasing entity with a report of sales made under this
308+subdivision during the previous 12-month period, to include a
309+general description of the heating or air conditioning units
310+and systems sold, the number of units sold per entity, and the
311+purchase price of the units.
299312 e.b. The exemption from the requirement to utilize use
300313 sealed bids for the purchase of heating or air conditioning
301314 units or systems authorized by this section shall not serve to
302315 exempt any public works project from the remaining provisions
303316 of this article, including, but not limited to, design,
304317 installation, and review requirements, compliance with all
305318 applicable codes, laws, specifications, and standards, and the
306319 compensation of engineers, architects, or others as mandated
307320 by state law or rule.
308321 (e)(1) In case of an emergency for which a delay in
309322 remedying would cause immediate harm to a person or public
310323 property, contracts may be let to the extent necessary to meet
311324 the emergency without public advertisement or bidding.
312325 (2) In case of an emergency affecting public health,
313326 safety, or convenience, as declared in writing by the awarding
314-authority, setting forth the nature of the danger to the
315-public health, safety, or convenience which would result from
316-delay, contracts may be let to the extent necessary to meet
317-the emergency without public advertisement.
318-(3) Any action taken under subdivision (1) or (2), and
319-the reasons for the action taken, shall immediately be made
320-public by the awarding authority and published in writing.
321-(f) No awarding authority may specify in the plans and
322-specifications for the improvement the use of materials,
323-products, systems, or services by a sole source unless all of
324-the following requirements are met:
325-(1) Except for contracts involving the construction,
326-reconstruction, renovation, or replacement of public roads,
327-bridges, and water and sewer facilities, the awarding
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356+safety, or convenience, as declared in writing by the awarding
357+authority, setting forth the nature of the danger to the
358+public health, safety, or convenience which would result from
359+delay, contracts may be let to the extent necessary to meet
360+the emergency without public advertisement.
361+(3) Any action taken under subdivision (1) or (2), and
362+the reasons for the action taken, shall immediately be made
363+public by the awarding authority and published in writing.
364+(f) No awarding authority may specify in the plans and
365+specifications for the improvement the use of materials,
366+products, systems, or services by a sole source unless all of
367+the following requirements are met:
368+(1) Except for contracts involving the construction,
369+reconstruction, renovation, or replacement of public roads,
357370 bridges, and water and sewer facilities, the awarding
358371 authority can document to the satisfaction of the Division of
359372 Real Property Management of the Department of Finance, or in
360373 the case of an educational institution or state educational
361374 institution as provided pursuant to Sections 41-4-353 and
362375 41-4-400, to the satisfaction of its governing board, that the
363376 sole source product, material, system, or service is of an
364377 indispensable nature for the improvement, that there are no
365378 other viable alternatives, and that only this particular
366379 product, material, system, or service fulfills the function
367380 for which it is needed.
368381 (2) The sole source specification has been recommended
369382 by the architect or engineer of record as an indispensable
370383 item for which there is no other viable alternative.
371384 (3) All information substantiating the use of a sole
372-source specification, including the recommendation of the
373-architect or engineer of record, shall be documented and made
374-available for examination in the office of the awarding
375-authority at the time of advertisement for sealed bids.
376-(g) In the event ofIf a proposed public works project ,
377-is acknowledged in writing by the Alabama Homeland Security
378-Department as: (1)(i) having a direct impact on the security
379-or safety of persons or facilities; and (2)(ii) requiring
380-confidential handling for the protection of such persons or
381-facilities, contracts may be let without public advertisement
382-but with the taking of informal bids otherwise consistent with
383-the requirements of this title and the requirements of
384-maintaining confidentiality. Records of bidding and award
385-shall not be disclosed to the public and shall remain
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414+(3) All information substantiating the use of a sole
415+source specification, including the recommendation of the
416+architect or engineer of record, shall be documented and made
417+available for examination in the office of the awarding
418+authority at the time of advertisement for sealed bids.
419+(g) In the event ofIf a proposed public works project ,
420+is acknowledged in writing by the Alabama Homeland Security
421+Department as: (1)(i) having a direct impact on the security
422+or safety of persons or facilities; and (2)(ii) requiring
423+confidential handling for the protection of such persons or
424+facilities, contracts may be let without public advertisement
425+but with the taking of informal bids otherwise consistent with
426+the requirements of this title and the requirements of
427+maintaining confidentiality. Records of bidding and award
415428 shall not be disclosed to the public and shall remain
416429 confidential.
417430 (h) If a pre-bid meeting is held, the pre-bid meeting
418431 shall be held at least seven days prior to the bid opening
419432 except when the project has been declared an emergency in
420433 accordance with subsection (e).
421434 (i) The awarding authority may not offer a contract for
422435 bidding unless confirmation of any applicable grant has been
423436 received and any required matching funds have been secured by
424437 or are available to the awarding authority.
425438 (j) Notwithstanding subsection (a), the Department of
426439 Transportation may enter into contracts for road construction
427440 or road maintenance projects that do not involve more than two
428441 hundred fifty thousand dollars ($250,000) without advertising
429442 for sealed bids, provided the project is listed on the
430-department publicly accessible website of the department for
431-at least seven calendar days before entering into the
432-contract. The total cost of all projects not subject to
433-advertising and sealed bids pursuant to this subsection may
434-not exceed one million dollars ($1,000,000) in the aggregate
435-per year.
436-(k) For the purposes of this chapter, sealed bids may
437-also be solicited and submitted through electronic means
438-including, but not limited to, electrical, digital, magnetic,
439-optical, electromagnetic, or any other similar technology,
440-provided that the awarding authority adopts rules and policies
441-to ensure that all electronic submissions are transmitted
442-securely and bids remained sealed until bid opening.
443-(l)(1) Notwithstanding any other provision of law, any
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472+for sealed bids, provided the project is listed on the
473+department publicly accessible website of the department for
474+at least seven calendar days before entering into the
475+contract. The total cost of all projects not subject to
476+advertising and sealed bids pursuant to this subsection may
477+not exceed one million dollars ($1,000,000) in the aggregate
478+per year.
479+(k) For the purposes of this chapter, sealed bids may
480+also be solicited and submitted through electronic means
481+including, but not limited to, electrical, digital, magnetic,
482+optical, electromagnetic, or any other similar technology,
483+provided that the awarding authority adopts rules and policies
484+to ensure that all electronic submissions are transmitted
485+securely and bids remained sealed until bid opening.
473486 (l)(1) Notwithstanding any other provision of law, any
474487 entity subject to this chapter that is an awarding authority
475488 of a contract for public works, by resolution or board action,
476489 may purchase materials or equipment pursuant to subdivisions
477490 (14), (16), (17), (18), or (19) of Section 41-16-51(a) (14),
478491 (16), (17), (18), or (19) , even when those materials or
479492 equipment are otherwise part of the contract for public works
480493 subject to the requirements of this title.
481494 (2) Except for those materials or equipment described
482495 in subdivision (1), the remaining portion of the public works
483496 project shall be subject to the requirements of this title,
484497 even if the remaining portion would involve an amount less
485498 than one hundred thousand dollars ($100,000) as a result of
486499 the exclusion of the purchase of the materials or equipment as
487500 described in subdivision (1)."
488-Section 2. This act shall become effective on October
489-1, 2025.
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507-1, 2025.
508-House of Representatives
509-Read for the first time and referred
510-to the House of Representatives
511-committee on State Government
512-................20-Feb-25
513-Read for the second time and placed
514-on the calendar:
515- 1 amendment
516-................27-Feb-25
517-Read for the third time and passed
518-as amended
519-................ 18-Mar-25
520-Yeas 100
521-Nays 0
522-Abstains 3
523-John Treadwell
524-Clerk
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530+described in subdivision (1)."
531+Section 2. This act shall become effective on October
532+1, 2025.
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