SB36ENROLLED
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SB36
NZ2E8TJ-2
By Senator Kitchens
RFD: County and Municipal Government
First Read: 04-Feb-25
PFD: 31-Dec-24
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PFD: 31-Dec-24
Enrolled, An Act,
Relating to public contracts; to amend Sections
41-4-124, 41-4-132, 41-4-136, 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 who is subject to state competitive bid
laws; to provide further for electronic bid submissions; to
provide further for the procedures for protesting certain
competitive bid contracts; and to revise requirements for
disclosure statement forms.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Sections 41-4-124, 41-4-132, 41-4-136,
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:
"§41-4-124
(a) Except as otherwise provided in this article, all
rights, powers, duties, and authority relating to the
procurement of supplies and services now vested in, or
exercised by, any governmental body under existing law are
transferred to the Chief Procurement Officer.
(b) The following governmental bodies are subject to
this article except as it relates to the purchase of
professional services and the oversight and authority of the
Chief Procurement Officer, and shall establish and maintain
procurement offices and personnel and adopt rules as may be
necessary to comply with this article:
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necessary to comply with this article:
(1) All educational and eleemosynary institutions
governed by a board of trustees or other similar governing
body.
(2) The Retirement Systems of Alabama.
(3) The Department of Mental Health.
(c) The Alabama Department of Transportation is subject
to this article except as it relates to the purchase of
professional services , and the Department of Transportation
shall adopt rules governing the purchase of professional
services by the department which are consistent with the
principles contained in this article and promote fairness,
competition, transparency, integrity, and value in the
procurement process.
(d) The procurement of any supplies, services, or
professional services by a district attorney ,or sheriff,
volunteer fire department, or rescue squad shall be solely
governed by Article 3, commencing with Section 41-16-50 of
Chapter 16.
(e) The procurement of any supplies or services by a
legislative agency or judicial agency shall be solely governed
by procedures adopted by the Legislative Council for all
legislative agencies and by rules adopted by the Supreme Court
of Alabama for all judicial agencies. The procedures adopted
shall be consistent with any applicable requirements of the
Constitution of Alabama of 2022, and shall be established in
accordance with the underlying purposes and policies of
promoting responsible and efficient use of public funds
dedicated and appropriated to the agencies for their use,
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dedicated and appropriated to the agencies for their use,
providing consistency of application of rules and requirements
across all agencies within the applicable branch of state
government, and promoting fairness, competition, transparency,
integrity, and value in the procurement process. In no case
may the legislative and judicial departments of the state
adopt procedures that conflict with the laws of this state
regarding the public disclosure of the use of public funds and
the transparency of public expenditures, or that otherwise
conflict with state law regarding public records and public
access to those records. Except for the requirement to act in
good faith, no other provision of this article shall apply to
legislative or judicial agencies; provided, that the
legislative and judicial departments may adopt all or any part
of this article and its accompanying rules.
(f)(1) The procurement of any supplies or services by
the Alabama State Port Authority shall be solely governed by
procedures adopted by the Board of Directors of the Alabama
State Port Authority. The procedures adopted shall be
consistent with any applicable requirements of the
Constitution of Alabama of 2022, and shall be established in
accordance with the underlying purposes and policies of
promoting responsible and efficient use of the funds of the
Alabama State Port Authority, providing consistency of
application of rules and requirements across all agencies
within the applicable branch of state government, and
promoting fairness, competition, transparency, integrity, and
value in the procurement process.
(2) Except for the protection of information otherwise
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(2) Except for the protection of information otherwise
legally considered commercially confidential, sensitive, or of
a nature that upon release would harm the competitive
advantage of itself or its customers, concessionaires,
lessees, or suppliers, the Alabama State Port Authority may
not adopt procedures that conflict with the laws of this state
regarding the public disclosure of the use of its funds and
the transparency of its expenditures, or that otherwise
conflict with state law regarding public records and public
access to those records.
(3) Except as provided in this subsection and the
requirement to act in good faith, no other provision of this
article shall apply to the Alabama State Port Authority;
provided, however, that the Alabama State Port Authority may
adopt all or any part of this article and its accompanying
rules."
"§41-4-132
(a) Except as otherwise provided in this division,
contracts shall be awarded by competitive sealed bidding.
(b) An invitation to bid shall be issued and shall
include a purchase description and all contractual terms and
conditions applicable to the procurement.
(c) Adequate public notice of the invitation to bid
shall be given a reasonable time prior to the date set forth
in the invitation for the opening of bids, in accordance with
rules adopted under this article.
(d) Bids shall be opened publicly in the presence of
one or more witnesses at the time and place designated in the
invitation to bid. Alternatively, bids may be opened in an
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invitation to bid. Alternatively, bids may be opened in an
electronic system at a time specified in the invitation to bid
and in a manner that records the time of opening. The amount
of each bid, the name of each bidder, and any other
information required by rule shall be recorded. The record and
each bid shall be open to public inspection to the extent
required by Section 41-4-115.
(e) Bids shall be unconditionally accepted without
alteration or correction, except as authorized in this
article. Bids shall be evaluated based on the requirements set
forth in the invitation to bid, which may include criteria to
determine acceptability, such as inspection, testing, quality,
workmanship, delivery, and suitability for a particular
purpose. Any criteria that will affect the bid price and will
be considered in evaluation for award shall be objectively
measurable, such as discounts, transportation costs, and total
or life cycle costs. The invitation to bid shall set forth the
evaluation criteria to be used. No criteria may be used in bid
evaluations that are not set forth in the invitation to bid.
(f)(1) When a bid is submitted that contains an error,
the Chief Procurement Officer or head of a purchasing agency
may authorize the correction or withdrawal of the bid or may
cancel the award of the contract. The authorization of the
correction or withdrawal shall be done in accordance with
rules adopted by the Chief Procurement Officer.
(2) After a bid has been opened, with the exception of
price negotiations with the lowest responsible bidder, no
changes in bid prices or other provisions of bids prejudicial
to the interest of the state or fair competition shall be
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to the interest of the state or fair competition shall be
permitted.
(g)(1) Unless there is a compelling reason to reject
bids, as prescribed by rules, notice of intent to award to the
lowest responsive and responsible bidder whose bid meets the
requirements set forth in the invitation to bid shall be given
by posting the notice at a location specified in the
invitation to bid. Before posting the notice of intent to
award, the Chief Procurement Officer or head of the purchasing
agency may negotiate with the lowest responsive and
responsible bidder to lower the bid price within the scope of
the invitation to bid. The invitation to bid and notice of
intent to award shall contain a statement of the bidder's
right to protest.
(2) The Chief Procurement Officer may award multiple
purchase contracts resulting from a single invitation to bid
where the specifications of the items of supplies or services
intended to be purchased by a requisitioning agency or
agencies are determined, in whole or in part, by technical
compatibility and operational requirements. In order to make
multiple awards under this subdivision, the awarding authority
shall include in the invitation to bid a notice that multiple
awards may be made and the specific technical compatibility or
operational requirements necessitating multiple awards.
Multiple awards of purchase contracts with unique technical
compatibility or operational specifications shall be made to
the lowest responsible bidder complying with the unique
technical compatibility or operational specifications. The
requisitioning agency shall provide the awarding authority
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requisitioning agency shall provide the awarding authority
with the information necessary for it to determine the
necessity for the award of multiple purchase contracts under
this subdivision.
(h) When it is considered impractical by the Chief
Procurement Officer to initially prepare a purchase
description to support an award based on price, an invitation
to bid may be issued requesting the submission of unpriced
offers to be followed by an invitation to bid limited to those
bidders whose offers have been qualified under the criteria
set forth in the first solicitation.
(i)(1) Before soliciting bids, the Chief Procurement
Officer may authorize issuance of a request for qualifications
from prospective bidders. The request shall contain, at a
minimum, a description of the scope of work to be solicited by
the invitation for bids, the deadline for submission of
information, and how prospective bidders may apply for
consideration. The request shall require information
concerning the prospective bidders' product specifications,
qualifications, experience, and ability to perform the
requirements of the contract. Adequate public notice of the
request for qualifications shall be given in the manner
provided in subsection (c).
(2) After receipt of the responses to the request for
qualifications from prospective bidders, all qualified
bidders, as determined by the Chief Procurement Officer, shall
have an opportunity to bid. The determination regarding which
bidders are qualified is not subject to review."
"§41-4-136
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"§41-4-136
(a) Notwithstanding any other provision of this
article, the Chief Procurement Officer or the head of a
purchasing agency may make emergency procurements when there
is a threat to public health, welfare, or safety under
emergency conditions, as defined by rule. Emergency
procurements made under this section shall be made with as
much competition as is practicable under the circumstances.
(b) The authority to make emergency procurements may
not be delegated except to the Chief Procurement Officer's
staff in the Division of Procurement at his or her direction.
Supplies and services that are exempt from the oversight and
authority of the Chief Procurement Officer, including, but not
limited to, those listed in Sections 41-4-125, 41-4-125.01,
and 41-4-126, shall not be required to be procured under the
emergency procurement authority of the Chief Procurement
Officer. A purchasing agency not otherwise under the oversight
and authority of the Chief Procurement Officer shall not be
required to make emergency procurements under the authority of
the Chief Procurement Officer .
(c) A written determination of the basis for the
emergency and for the selection of the particular contractor
shall be included in the contract file."
"§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 ofafter the date the solicitation or any amendment to
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issuance ofafter the date the solicitation or any amendment to
itthe solicitation is issued , if the amendment is at issue.
After filing a notice of intent to protest, the 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 ofafter the date of the
award or the date of the notice notification of intent to
award, whichever is earlier, is posted in accordance with this
article. After filing a notice of intent to protest, the bona
fide actual bidder or offeror shall have seven calendar days
to submit a formal written protest. The Chief Procurement
Officer may award the contract at issue if he or she does not
receive the notice of intent to protest within the five-day
period.
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
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 forthstate 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
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(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)(1) Except as provided in subdivision (2), in 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 provided to the
protestor, except that.
(2) Notwithstanding subdivision (1), a 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
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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
under the Alabama Administrative Procedure 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).
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dollars ($25,000).
(2) Aor proposed contract at issue exceeds five
thousand dollars ($5,000) that meets or exceeds the threshold
for bid or other formal solicitations under 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 contractsany of
the following:
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. Awards 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
person within 1030 days of the award.
(c)(1) State agencies, departments, or divisions may
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.
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disclosure statement to the agency, department, or division.
(2) Agencies, departments, and divisions may 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, and 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
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
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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) A copy of the disclosure statement shall be filed
with 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.
(b) 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
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This article shall not apply to either of the
following:
(1) Any person that any entity which does not receive
state funds under a grant or a contract.
(2) Any grants or contracts between public procurement
units."
Section 2. This act shall become effective on June 1,
2025.
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2025.
________________________________________________
President and Presiding Officer of the Senate
________________________________________________
Speaker of the House of Representatives
SB36
Senate 12-Feb-25
I hereby certify that the within Act originated in and passed
the Senate.
Patrick Harris,
Secretary.
House of Representatives
Passed: 27-Feb-25
By: Senator Kitchens
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