HB168 Alabama 2023 Session

Under existing law, with the exception of contracts for public works, all expenditure of funds of whatever nature for labor, services, work, or for the purchase or lease of materials, equipment, supplies, or other personal property involving $15,000 or more made by or on behalf of certain state and local public awarding authorities are required to be made by contractual agreement entered into by free and open competitive bidding, on sealed bids, to the lowest responsible bidder

Also under existing law, before an awarding authority may enter into any contract for a public works involving an amount in excess of $50,000, the awarding authority is required to advertise the contract and award the contract to the lowest responsible bidder

This bill would increase various threshold dollar amounts for which competitive bidding is generally required and would authorize those dollar amounts to be further increased based on increases in the Consumer Price Index

Section 111.05 of the Constitution of Alabama of 2022, prohibits a general law whose purpose or effect would be to require a new or increased expenditure of HB168 INTRODUCED local funds from becoming effective with regard to a local governmental entity without enactment by a 2/3 vote unless: it comes within one of a number of specified exceptions; it is approved by the affected entity; or the Legislature appropriates funds, or provides a local source of revenue, to the entity for the purpose

The purpose or effect of this bill would be to require a new or increased expenditure of local funds within the meaning of the amendment. However, the bill does not require approval of a local governmental entity or enactment by a 2/3 vote to become effective because it comes within one of the specified exceptions contained in the amendment

Relating to public contracts; to amend Sections 41-16-50, 41-16-51, 41-16-52, 41-16-53, 41-16-54, and 41-16-55, Code of Alabama 1975, to increase the threshold dollar amount for which competitive bidding is generally required for certain state and local public awarding authorities, with exceptions; to amend Sections 39-2-2 and 39-2-4, Code of Alabama 1975, to increase the threshold dollar amount for which competitive bidding is generally required for HB168 INTRODUCED public works contracts; to provide a legislative method for the increase of the threshold dollar amounts; and in connection therewith would have as its purpose or effect the requirement of a new or increased expenditure of local funds within the meaning of Section 111.05 of the Constitution of Alabama of 2022.