HB153 By Representatives Ford, Lindsey, Melton, Clarke, Drummond, Warren and Lawrence RFD State Government Rd 1 09-FEB-16

SYNOPSIS: Under existing law, a preferred vendor that produces or manufactures products in this state, has an assembly plant or distribution facility in this state, or, in addition to other requirements, is organized for business under the laws of this state may be awarded the competitively bid public contract if the bid is no more than five percent greater than the bid of the lowest responsible bidder.

This bill would make the five-percent preference for preferred vendors mandatory.

A BILL TO BE ENTITLED AN ACT

To amend Section 41-16-20, Code of Alabama 1975, relating to public contracts, to require awarding authorities accepting competitive bids or proposals to provide a preference of five percent to resident business entities meeting certain criteria.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:

Section 1. This act shall be known and may be cited as the Made in Alabama Act of 2016.Section 2. Section 41-16-20, Code of Alabama 1975, is amended to read as follows:

§41-16-20.

"(a) With the exception of contracts for public works whose competitive bidding requirements are governed exclusively by Title 39, all contracts of whatever nature for labor, services, work, or for the purchase or lease of materials, equipment, supplies, other personal property or other nonprofessional services, involving fifteen thousand dollars ($15,000) or more, made by or on behalf of any state department, board, bureau, commission, committee, institution, corporation, authority, or office shall, except as otherwise provided in this article, be let by free and open competitive bidding, on sealed bids, to the lowest responsible bidder.

"(b) A "preferred vendor" shall be a person, firm, or corporation which is granted preference priority according to the following:

"(1) PRIORITY #1. Produces or manufactures the product within the state.

"(2) PRIORITY #2. Has an assembly plant or distribution facility for the product within the state.

"(3) PRIORITY #3. Is organized for business under the applicable laws of the state as a corporation, partnership, or professional association and has maintained at least one retail outlet or service center for the product or service within the state for not less than one year prior to the deadline date for the competitive bid.

"(c) In the event a bid is received for the product or service from a person, firm, or corporation deemed to be a responsible bidder and a preferred vendor where any state higher education institution, department, board, bureau, commission, committee, institution, corporation, authority, or office is the awarding authority and the bid is no more than five percent greater than the bid of the lowest responsible bidder, the awarding authority may shall award the contract to the preferred vendor."

Section 3. This act shall become effective on the first day of the third month following its passage and approval by the Governor, or its otherwise becoming law.

Contracts

Public Contracts

State Agencies

Business and Commerce

Finance Department

Popular Names

Code Amended