SB36 is a legislative bill that aims to amend the competitive bidding process for contracts of city and county boards of education in Alabama. The bill proposes to increase the threshold for contracts requiring competitive bidding from the current $15,000 to $25,000. This change affects contracts for labor, services, work, or the purchase or lease of materials, equipment, supplies, or other personal property. It also introduces the concept of a local preference zone, allowing local bidders to be given preference under certain conditions. The bill adds a new subsection that outlines a procedure for adjusting the dollar amounts every three years based on the Consumer Price Index, with the first adjustment scheduled for October 1, 2027, pending approval by the Legislative Council.

The bill also addresses the division of contracts into parts to circumvent the bidding requirements, setting the new limit at $25,000, and it outlines the consequences for collusive bidding agreements at or below this amount, including voiding bids and disqualifying bidders from future opportunities, as well as criminal penalties for those knowingly involved. Despite potentially requiring new or increased local funds, the bill is exempt from additional requirements under Section 111.05 of the Alabama Constitution of 2022 because it defines or amends the definition of a crime. The act will become effective on the first day of the third month after its passage and approval by the Governor, or upon becoming law without such approval. The bill was passed with 32 yeas, 0 nays, and 0 abstentions.

Statutes affected:
Introduced: 16-13B-1, 16-13B-4, 16-13B-5
Engrossed: 16-13B-1, 16-13B-4, 16-13B-5