SB161

SYNOPSIS: Under existing law, preferred vendors are given preference in the awarding of public contracts required to be competitively bid.

This bill would give preferred vendor status under the competitive bid laws to those businesses located in the state that are owned by veterans who were deployed to Afghanistan or Iraq as a part of Operation Enduring Freedom or Operation Iraqi Freedom.

A BILL TO BE ENTITLED AN ACT

To amend Section 41-16-20, Code of Alabama 1975, relating to preferred vendors under the state competitive bid law; to grant preferred vendor status to any business located in the state that is owned by a veteran deployed to Afghanistan or Iraq as a part of Operation Enduring Freedom or Operation Iraqi Freedom.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:Section 1. Section 41-16-20 of the 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.

"(4) PRIORITY #4. A business that is physically located in this state and is owned by a veteran who was deployed at least once to Afghanistan or Iraq as part of Operation Enduring Freedom or Operation Iraqi Freedom. For the purposes of this section, a veteran is a person who served in the army, air force, navy, marine corps, or coast guard and who was discharged or released from his or her service with an honorable or general discharge.

"(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 award the contract to the preferred vendor."

Section 2. 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

Preferred Vendor

Competitive Bids

Veterans

Code Amended