HB269 • 2026

Competitive bidding; repairs of vehicles under $15,000 for certain awarding authorities exempt

Energy

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Underwood
Last action: 2026-02-10
Official status: Indefinitely Postponed in House of Origin
Effective date: Not listed

Plain English Breakdown

The bill has passed the legislature but its final status shows it was 'Indefinitely Postponed' on February 10, 2026. This means the law may not actually take effect despite having an effective date listed in the text.

Exemption for Small Vehicle Repairs from Competitive Bidding

This bill allows certain local government groups to skip the standard competitive bidding process when repairing vehicles that cost less than $15,000 and weigh 12,000 pounds or less.

What This Bill Does

Creates a new rule in state law for vehicle repairs under specific conditions.
Allows awarding authorities to choose not to use sealed bids if the repair costs are under $15,000 and the vehicle weighs 12,000 pounds or less.
Requires officials to get price estimates from at least two different vendors before hiring one.
States that each vehicle repair is counted separately and cannot be combined with other repairs.

Who It Names or Affects

County commissions
Governing bodies of municipalities (cities)
Utility boards such as waterworks, sewer, and gas boards

Terms To Know

Awarding authority: A county commission, city government, or a local utility board like those for water or gas.
Competitive bidding: The current rule requiring governments to ask many companies for sealed bids and pick the lowest price.

Limits and Unknowns

This exemption only applies if a single repair costs $15,000 or less.
Officials must get official approval from their governing body before using this option unless there is an existing policy allowing it.
The new rule will not take effect until October 1, 2026.

Bill History

2026-02-10 House
Currently Indefinitely Postponed
2026-02-10 House
Third Reading in House of Origin
2026-01-21 House
Read for the Second Time and placed on the Calendar
2026-01-21 House
Reported Out of Committee House of Origin
2026-01-15 House
Pending Committee Action in House of Origin
2026-01-15 House
Read for the first time and referred to the House Committee on County and Municipal Government

Official Summary Text

Competitive bidding; repairs of vehicles under $15,000 for certain awarding authorities exempt

Current Bill Text

Read the full stored bill text

HB269 INTRODUCED
Page 0
HB269
84IDKHF-1
By Representative Underwood
RFD: County and Municipal Government
First Read: 15-Jan-26
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84IDKHF-1 01/12/2026 GED (L)ma 2026-156
Page 1
First Read: 15-Jan-26
SYNOPSIS:
Under existing law, governing authorities of
municipalities, counties, and instrumentalities in the
state, prior to expending $30,000 or more for any
labor, services, work, or for the purchase of
materials, equipment, supplies, or other personal
property, must enter into the contractual agreement by
free and open competitive bidding, on sealed bids, to
the lowest responsible bidder.
This bill would establish a limited exemption
from the competitive bidding requirements for
expenditures of less than $15,000 for the repair of
vehicles by local awarding authorities in the state.
A BILL
TO BE ENTITLED
AN ACT
Relating to competitive bidding; adding Section
41-16-52.1 to the Code of Alabama 1975, to exempt certain
awarding authorities from competitive bidding requirements for
repairs of vehicles under certain circumstances.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Section 41-16-52.1 is added to the Code of
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HB269 INTRODUCED
Page 2
Section 1. Section 41-16-52.1 is added to the Code of
Alabama 1975, to read as follows:
§41-16-52.1
(a) For purposes of this section, the term "awarding
authority" means any county commission, governing body of a
municipality, or an instrumentality of a county or
municipality, including a waterworks board, a sewer board, a
gas board, and other like utility boards and commissions.
(b) All expenditures of funds, made by or on the behalf
of any awarding authority, for repair parts and the repair of
vehicles shall be made at the option of the awarding authority
without regard to this article when the following conditions
are met:
(1) The vehicle has a gross vehicle weight rating of
12,000 pounds or less.
(2) The incident of repair does not involve more than
fifteen thousand dollars ($15,000).
(3) The awarding authority solicits and documents price
estimates from at least two different vendors prior to
awarding the contract.
(c) The exemption provided under this section shall
apply to each vehicle repaired, and the exempted expenditure
shall not be aggregated with the expenditures of any other
incidents of repair.
(d)(1) The option provided by subsection (b) may be
exercised by the awarding authority by specific reference to
this section on any purchase orders and purchase commitments
executed by the awarding authority.
(2) The option shall not be exercised by any employee,
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HB269 INTRODUCED
Page 3
(2) The option shall not be exercised by any employee,
agent, or servant unless done so after having received
official prior approval of the respective awarding authority
or unless exercised pursuant to a formal policy adopted by the
awarding authority setting out conditions and restrictions
under which the option shall be exercised.
Section 2. This act shall become effective on October
1, 2026.
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