AL
Alabama House Bill HB481

Alabama 2025 Regular Session

Alabama House Bill HB481 Compare Versions

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33 HB481
44 W1WGH99-1
55 By Representative Shaw
66 RFD: State Government
77 First Read: 01-Apr-25
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1212 5 W1WGH99-1 03/25/2025 GP (L)lg 2025-1182
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1414 First Read: 01-Apr-25
1515 SYNOPSIS:
1616 Existing law provides procedures that awarding
1717 authorities must follow when entering into contracts
1818 for public works.
1919 This bill would exempt the purchase and
2020 installation of certain material and equipment by local
2121 boards of education and certain public procurement
2222 units from those procedures.
2323 A BILL
2424 TO BE ENTITLED
2525 AN ACT
2626 Relating to contracts for public works; to amend
2727 Section 39-2-2, Code of Alabama 1975; to provide exemptions
2828 from certain requirements relating to contracting for public
2929 works.
3030 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
3131 Section 1. Section 39-2-2, Code of Alabama 1975, is
3232 amended to read as follows:
3333 "ยง39-2-2
3434 (a)(1) Before entering into any contract for a public
3535 works involving an amount in excess of one hundred thousand
3636 dollars ($100,000), the awarding authority shall advertise for
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6666 dollars ($100,000), the awarding authority shall advertise for
6767 sealed bids, except as provided in subsection (j).
6868 (2)a. If the awarding authority is the state, a county,
6969 or an instrumentality thereof, it shall advertise for sealed
7070 bids at least once each week for three consecutive weeks in a
7171 newspaper of general circulation in the county or counties in
7272 which the improvement, or some part thereof, is to be made.
7373 b. If the awarding authority is a municipality , or an
7474 instrumentality thereof, it shall advertise for sealed bids at
7575 least once in a newspaper of general circulation published in
7676 the municipality where the awarding authority is located. If
7777 no newspaper is published in the municipality, the awarding
7878 authority shall advertise by posting notice thereof on a
7979 bulletin board maintained outside the purchasing office and in
8080 any other manner and for the length of time as may be
8181 determined. In addition to bulletin board notice, sealed bids
8282 shall also be solicited by sending notice by mail to all
8383 persons who have filed a request in writing with the official
8484 designated by the awarding authority that they be listed for
8585 solicitation on bids for the public works contracts indicated
8686 in the request. If any person whose name is listed fails to
8787 respond to any solicitation for bids after the receipt of
8888 three such solicitations, the listing may be canceled.
8989 (3) The advertisements shall briefly describe the
9090 improvement, state that plans and specifications for the
9191 improvement are on file for examination in a designated office
9292 of the awarding authority, state the procedure for obtaining
9393 plans and specifications, state the time and place in which
9494 bids shall be received and opened, and identify whether
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124124 bids shall be received and opened, and identify whether
125125 prequalification is required and where all written
126126 prequalification information is available for review.
127127 (4) All bids shall be opened publicly at the advertised
128128 time and place.
129129 (5) No public work , as defined in this chapter,
130130 involving a sum in excess of one hundred thousand dollars
131131 ($100,000) shall be split into parts involving sums of one
132132 hundred thousand dollars ($100,000) or less for the purpose of
133133 evading the requirements of this section.
134134 (b)(1) An awarding authority may let contracts for
135135 public works involving one hundred thousand dollars ($100,000)
136136 or less with or without advertising or sealed bids.
137137 (2) An awarding authority may enter into a contract for
138138 public works if an advertisement for sealed bids for the
139139 contract was submitted by the awarding authority to a
140140 newspaper and the newspaper only published the advertisement
141141 for two weeks if the authority can provide proof that it, in
142142 good faith, submitted the advertisement to the newspaper with
143143 instructions to publish the notice in accordance with the
144144 provisions of this section.
145145 (c) All contracts for public works entered into in
146146 violation of this title shall be void and violative of public
147147 policy. Anyone who willfully violates this article concerning
148148 public works shall be guilty of a Class C felony.
149149 (d)(1) Excluded from the operation of this title shall
150150 be contracts Contracts with persons who shall perform only
151151 architectural, engineering, construction management, program
152152 management, or project management services in support of the
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182182 management, or project management services in support of the
183183 public works and who shall do not engage in actual
184184 construction, repair, renovation, or maintenance of the public
185185 works with their own forces, by contract, subcontract,
186186 purchase order, lease, or otherwise are excluded from the
187187 operation of this title .
188188 (2) Excluded from operation of the bidding requirements
189189 in this title are contracts Contracts for the purchase of any
190190 heating or air conditioning units or systems by any awarding
191191 authority subject to Chapter 13B of Title 16 ;, Article 3,
192192 commencing with Section 41-16-50, of Chapter 16 of Title 41 ;,
193193 or Article 5, commencing with Section 41-4-110, of Chapter 4
194194 of Title 41, are excluded from operation of the bidding
195195 requirements of this title; provided, the contract is entered
196196 into with an Alabama vendor who has been granted approved
197197 vendor status for the sale of heating or air conditioning
198198 units or systems as a part of a purchasing cooperative, and
199199 each of the following occur:
200200 a. The heating or air conditioning unit or system being
201201 purchased is available as a result of a competitive bid
202202 process conducted by a governmental entity which has been
203203 approved by the Department of Examiners of Public Accounts.
204204 b. The purchase of the heating or air conditioning unit
205205 or system is not available on the state purchasing program at
206206 the time or the purchase under the purchasing cooperative is
207207 available at a price that is equal to or less than that
208208 available through the state purchasing program.
209209 c. The entity entering into the contract for the
210210 purchase of the heating or air conditioning unit or system has
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240240 purchase of the heating or air conditioning unit or system has
241241 been notified by the Department of Examiners of Public
242242 Accounts that the competitive bid process utilized by the
243243 cooperative program offering the goods complies with this
244244 subdivision.
245245 d. Upon request, the vendor has provided the purchasing
246246 entity with a report of sales made under this subdivision
247247 during the previous 12-month period, to include a general
248248 description of the heating or air conditioning units and
249249 systems sold, the number of units sold per entity, and the
250250 purchase price of the units.
251251 e. The exemption from the requirement to utilize sealed
252252 bids for the purchase of heating or air conditioning units or
253253 systems authorized by this section shall not serve to exempt
254254 any public works project from the remaining provisions of this
255255 article, including, but not limited to, design, installation,
256256 and review requirements, compliance with all applicable codes,
257257 laws, specifications, and standards, and the compensation of
258258 engineers, architects, or others as mandated by state law or
259259 rule.
260260 (e)(1) In case of an emergency for which a delay in
261261 remedying would cause immediate harm to a person or public
262262 property, contracts may be let to the extent necessary to meet
263263 the emergency without public advertisement or bidding.
264264 (2) In case of an emergency affecting public health,
265265 safety, or convenience, as declared in writing by the awarding
266266 authority, setting forth the nature of the danger to the
267267 public health, safety, or convenience which would result from
268268 delay, contracts may be let to the extent necessary to meet
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298298 delay, contracts may be let to the extent necessary to meet
299299 the emergency without public advertisement.
300300 (3) Any action taken under subdivision (1) or (2), and
301301 the reasons for the action taken, shall immediately be made
302302 public by the awarding authority and published in writing.
303303 (f) No awarding authority may specify in the plans and
304304 specifications for the improvement the use of materials,
305305 products, systems, or services by a sole source unless all of
306306 the following requirements are met:
307307 (1) Except for contracts involving the construction,
308308 reconstruction, renovation, or replacement of public roads,
309309 bridges, and water and sewer facilities, the awarding
310310 authority can document to the satisfaction of the Division of
311311 Real Property Management of the Department of Finance, or in
312312 the case of an educational institution or state educational
313313 institution as provided pursuant to Sections 41-4-353 and
314314 41-4-400, to the satisfaction of its governing board, that the
315315 sole source product, material, system, or service is of an
316316 indispensable nature for the improvement, that there are no
317317 other viable alternatives, and that only this particular
318318 product, material, system, or service fulfills the function
319319 for which it is needed.
320320 (2) The sole source specification has been recommended
321321 by the architect or engineer of record as an indispensable
322322 item for which there is no other viable alternative.
323323 (3) All information substantiating the use of a sole
324324 source specification, including the recommendation of the
325325 architect or engineer of record, shall be documented and made
326326 available for examination in the office of the awarding
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356356 available for examination in the office of the awarding
357357 authority at the time of advertisement for sealed bids.
358358 (g) In the event of a proposed public works project,
359359 acknowledged in writing by the Alabama Homeland Security
360360 Department as: (1) (i) having a direct impact on the security
361361 or safety of persons or facilities; and (2) (ii) requiring
362362 confidential handling for the protection of such persons or
363363 facilities, contracts may be let without public advertisement
364364 but with the taking of informal bids otherwise consistent with
365365 the requirements of this title and the requirements of
366366 maintaining confidentiality. Records of bidding and award
367367 shall not be disclosed to the public and shall remain
368368 confidential.
369369 (h) If a pre-bid meeting is held, the pre-bid meeting
370370 shall be held at least seven days prior to the bid opening
371371 except when the project has been declared an emergency in
372372 accordance with subsection (e).
373373 (i) The awarding authority may not offer a contract for
374374 bidding unless confirmation of any applicable grant has been
375375 received and any required matching funds have been secured by
376376 or are available to the awarding authority.
377377 (j) Notwithstanding subsection (a), the Department of
378378 Transportation may enter into contracts for road construction
379379 or road maintenance projects that do not involve more than two
380380 hundred fifty thousand dollars ($250,000) without advertising
381381 for sealed bids, provided the project is listed on the
382382 department website for at least seven calendar days before
383383 entering into the contract. The total cost of all projects not
384384 subject to advertising and sealed bids pursuant to this
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414414 subject to advertising and sealed bids pursuant to this
415415 subsection may not exceed one million dollars ($1,000,000) in
416416 the aggregate per year.
417417 (k) For the purposes of this chapter, sealed bids may
418418 also be solicited and submitted through electronic means
419419 including, but not limited to, electrical, digital, magnetic,
420420 optical, electromagnetic, or any other similar technology,
421421 provided that the awarding authority adopts rules and policies
422422 to ensure that all electronic submissions are transmitted
423423 securely and bids remained sealed until bid opening.
424424 (l)(1)a. Notwithstanding any other provision of law,
425425 any entity subject to this chapter that which is an awarding
426426 authority of a contract for public works, by resolution or
427427 board action, may purchase materials or equipment and may
428428 install those materials or equipment, pursuant to: (i) Section
429429 41-4-170, et seq.; (ii) subdivisions (14), (16), (17), (18),
430430 or (19) of Section 41-16-51(a) (14), (16), (17), (18), or (19);
431431 or (iii) Section 16-13B-2(a)(13) or (15) , even when those
432432 materials or equipment are otherwise part of the contract for
433433 public works subject to the requirements of this title.
434434 b. The installation of materials or equipment pursuant
435435 to Section 16-13B-2(a)(13) or (15) are subject to each of the
436436 following requirements:
437437 1. The installation must require a design professional
438438 for plans when the services of a professional architect are
439439 required pursuant to Section 34-2-32 or the services of a
440440 professional engineer are required pursuant to Section
441441 34-11-2.
442442 2. The installation must meet the requirements for code
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472472 2. The installation must meet the requirements for code
473473 compliance in Section 16-1-2.4(b).
474474 3. The installation is subject to the bond requirements
475475 of Section 39-1-1(a).
476476 4. The contract is competitively awarded as a result of
477477 a competitive bid process approved by the Department of
478478 Examiners of Public Accounts.
479479 5. The subcontractor performing the installation is an
480480 Alabama licensed contractor.
481481 (2) Except for the purchase and installation of those
482482 materials or equipment described in subdivision (1), the
483483 remaining portion of the public works project shall be subject
484484 to the requirements of this title, even if the remaining
485485 portion would involve an amount less than one hundred thousand
486486 dollars ($100,000) as a result of the exclusion of the
487487 purchase of the materials or equipment as described in
488488 subdivision (1)."
489489 Section 2. This act shall become effective on October
490490 1, 2025.
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