SB34 By Senator Beasley RFD Governmental Affairs Rd 1 07-FEB-17

SYNOPSIS: Under existing law, any expenditures for labor or services or the purchase of materials, equipment, or supplies by certain governmental entities, including, a county or municipality or an instrumentality of a county or municipality such as a waterworks board, are subject to the competitive bid law if the amount of the expenditures is $15,000 or more.

Under existing law, notwithstanding the competitive bid requirements, Section 41-16-52, Code of Alabama 1975, authorizes an exclusion from the competitive bid law for repair parts and repair of heavy duty off-highway construction equipment and all vehicles with a gross vehicle weight rating of 25,000 pounds or greater for expenditures of not more than $15,000 for each incident of repair by a county or municipality or instrumentalities of a county or municipality such as a water works board.

This bill would add an exemption from the competitive bid law for the expenditure of funds for repair parts or repair of heavy duty equipment or vehicles exceeding a gross weight of 25,000 pounds for parts or repairs obtained from a dealer or service center authorized by the manufacturer to sell the parts or make the repairs.

A BILL TO BE ENTITLED AN ACT

To amend Section 41-16-52, Code of Alabama 1975, providing an exemption from the competitive bid process for the expenditure of funds by a county or municipality or certain instrumentalities of a county or municipality for repair parts or repair of heavy duty off-highway construction equipment or vehicles exceeding a gross weight of 25,000 pounds; to provide an additional exemption for expenditures paid to a dealer or service center authorized by the manufacturer to sell the parts or make the repairs.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:Section 1. Section 41-16-52, Code of Alabama 1975, is amended to read as follows:

§41-16-52.

"(a) All expenditures of funds of whatever nature for repair parts and the repair of heavy duty off-highway construction equipment and of all or of any vehicles with a gross vehicle weight rating of 25,000 pounds or greater, including machinery used for grading, drainage, road construction, and compaction for the exclusive use of county and municipal, highway, street, and sanitation departments, involving not more than $15,000 or expenditures to a dealer or service center authorized by the manufacturer of the equipment or vehicle to sell the parts or make the repairs, made by or on behalf of any county commissions and the governing bodies of the municipalities of the state, and the governing bodies of instrumentalities, including waterworks boards, sewer boards, gas boards, and other like utility boards and commissions, shall be made, at the option of said the governing boards, bodies, instrumentalities, and commissions, without regard to the provisions of this article. The foregoing This exemption from the provisions of this article shall apply to each incident of repair as to any such repair parts, equipment, vehicles, or machinery. The amount of such the exempted expenditure shall not be construed to be an aggregate of all such the expenditures per fiscal year as to any individual vehicle or piece of equipment or machinery.

"(b) The option options provided by subsection (a) of this section may be exercised by said the governing boards, bodies, instrumentalities, and commissions by specific reference to this section on any and all purchase orders and purchase commitments executed by said the governing boards, bodies, instrumentalities, and commissions; provided, however said the option shall not be exercised by any employee, agent, or servant unless done so after having received official prior approval of the respective governing board, body, instrumentality, or commission or unless exercised pursuant to a formal policy adopted by such the governing board, body, instrumentality, or commission setting out conditions and restrictions under which such the option shall be exercised.

"(c) All expenditures of funds of whatever nature for the leasing of heavy duty off-highway construction equipment and all vehicles with a gross vehicle weight rating of 25,000 pounds or greater, including machinery for grading, drainage, road construction, and compaction for exclusive use of county and municipalities, highway, street, and sanitation departments, involving a monthly rental of not more than $5,000.00 five thousand dollars ($5,000) per month per vehicle or piece of equipment or machinery but not to exceed $15,000.00 fifteen thousand dollars ($15,000) per month for all such vehicles and pieces of equipment made by or on behalf of any county commissions and the governing boards of municipalities of the state and the governing bodies of instrumentalities, including waterworks boards, sewer boards, gas boards, and other like utility boards and commissions shall be made, at the option of the said the governing boards, bodies, instrumentalities, and commissions, without regard to the provisions of this article."

Section 2. This act shall become effective immediately following its passage and approval by the Governor, or its otherwise becoming law.

Counties

Municipalities

Water and Sewer Systems

Competitive Bids

Motor Vehicles

Code Amended