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HB513 ENGROSSED
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HB513
YMSKW26-2
By Representative Whitt
RFD: Economic Development and Tourism
First Read: 26-Feb-26
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First Read: 26-Feb-26
A BILL
TO BE ENTITLED
AN ACT
Relating to the Department of Commerce; to amend
Sections 41-29-282 and 41-4-126, Code of Alabama 1975, to
provide that the Alabama Industrial Development Training
Institute (AIDT) within the department is exempt from the
state procurement law and review by the Contract Review
Permanent Legislative Oversight Committee.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Sections 41-29-282 and 41-4-126, Code of
Alabama 1975, are amended to read as follows:
"§41-29-282
(a) AIDT shall operate as a division of the Department
of Commerce. All of the powers, authority, duties, functions,
policies, and funds of, and appropriations to AIDT previously
conferred upon or granted to AIDT reporting to the State Board
of Education through the Division of Vocational-Technical
Education or by Alabama Executive Order No. 2012-31 are
confirmed, ratified, continued, transferred to, and vested in
AIDT.
(b) All contracts, leases, grants, and agreements
previously entered by AIDT shall continue in full force and
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previously entered by AIDT shall continue in full force and
effect without modification or interruption by this
restructuring. AIDT may enter into new contracts, agreements,
and other instruments necessary to procure goods, services,
training, and related resources in furtherance of its purpose,
as set forth in Section 41-29-280, and shall be exempt from
Chapter 2 of Title 29, relating to permanent legislative
committees, including the Contract Review Permanent
Legislative Oversight Committee.
(c) All property currently owned by AIDT shall continue
to be the property of AIDT. If AIDT plans to construct any new
building, retrofit or renovate any of its existing buildings,
or request or receive any state or federal funding to
construct, retrofit, or renovate any of its buildings, the
AIDT director shall first certify to a the Governor that the
proposal is consistent with the Strategic Workforce Plan.
(d) AIDT shall continue to be headed by a director, who
shall be appointed by the Secretary of Commerce and shall
serve at his or her pleasure. The powers, duties, and
qualifications required of the director shall be as set forth
in the AIDT Policy Manual, as amended from time to time and
approved by the Secretary of Commerce."
"§41-4-126
(a) Unless otherwise ordered by rule, with approval of
the Governor, the following supplies and services need not be
procured through the Division of Procurement and are exempt
from the competitive requirements of this article:
(1) Works of art for museum and public display.
(2) Published books in any format such as digital,
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(2) Published books in any format such as digital,
audio, or hardcopy; maps; periodicals; and technical
pamphlets.
(3) Utility services where no competition exists or
where rates are fixed by law.
(4) Purchases of alcoholic beverages by the Alcoholic
Beverage Control Board.
(5) Purchases of products made or manufactured by the
blind or visually handicapped under the direction or
supervision of the Alabama Institute for Deaf and Blind in
accordance with Chapter 2 of Title 21.
(6) Photographs purchased from a federal agency.
(7) Barter transactions by the Department of
Corrections.
(8) The purchase of insurance and supplies or services
related to the purchase of insurance.
(9) Supplies and services that by their very nature are
impossible to award by competitive process, as determined by
the Chief Procurement Officer.
(10) The procurement of goods, services, training, and
other related resources that are directly related to or for
the benefit of a company with which the Department of Commerce
or the Alabama Industrial Development Training Institute
(AIDT) has executed an economic development project agreement.
The Chief Procurement Officer, on request, may determine in
writing whether a procurement is eligible for this exemption.
AIDT shall make annual written reports to the Chief
Procurement Officer of all procurements performed under this
subdivision. In addition, the Chief Procurement Officer may
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subdivision. In addition, the Chief Procurement Officer may
request periodic reports on all procurements performed under
this subdivision at any time.
(b) Any state department or agency whose principal
business is honorariums is exempted from this chapter on
purchases and contracts for services made by that department
or agency.
(c) Nothing in this article is intended to repeal or
limit any provision of Section 23-1-40 or Article 5 or Article
6 of Chapter 2 of Title 23, commencing with Section 23-2-140,
relating to the procurement authority of the State Department
of Transportation and the Alabama Toll Road, Bridge and Tunnel
Authority. To the extent any provision contained in this
article conflicts with Section 23-1-40 or Article 5 or Article
6 of Chapter 2 of Title 23, the latter governs.
(d) Nothing in this article repeals or limits any
provision of Section 41-4-400, relating to the procurement
authority of the Division of Construction Management. To the
extent any provision contained in this article conflicts with
Section 41-4-400, the latter governs.
(e) Nothing in this article repeals or limits any
provision of Section 14-7-8, relating to the procurement
authority of Alabama Correctional Industries. To the extent
any provision contained in this article conflicts with Section
14-7-8, the latter governs.
(f) This article does not apply to any state authority,
board, or other entity with respect to contracts relating to
the issuance of debt that is required to be repaid from
sources other than state funds.
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sources other than state funds.
(g) This article does not apply to direct health care
services provided by the Alabama Department of Public Health.
(h) Nothing in this article applies to the
administration of health benefit plans by a governmental body
and supplies or services related thereto.
(i) Except for capital equipment, this article does not
apply to the purchase by a public hospital of medical
products, medical supplies, medical devices, services,
implants, pharmaceuticals, fluids, gases, or any other medical
products which are used in the course of treating patients, or
to support the treatment of patients.
(j)(1) Except as provided in subdivision (2), the
purchase of supplies or services negotiated on behalf of
two-year and four-year colleges and universities may be
awarded without competitive bidding, provided that no state
revenues, appropriations, or other state funds are expended or
committed and when it is determined by the respective board
that financial benefits will accrue to the institution.
(2) When an Alabama business entity organized under the
laws of this state is available to supply the product or
service purchased or negotiated under subdivision (1), the
Alabama business entity shall have preference unless the
product or service supplied by a foreign corporation is
substantially different or superior to the product or service
supplied by the Alabama business entity.
(3) Public notice shall be provided by the purchasing
agency within 10 days of the execution of a contract under
this subsection. The public notice shall include, at a
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this subsection. The public notice shall include, at a
minimum, the terms and conditions of any of the supplies or
services that are contracted through negotiation without being
competitively bid and the name and address of the recipient of
the contract.
(k) This article does not apply to purchases and
contracts for the repair of equipment used in the construction
and maintenance of highways by the Department of
Transportation.
(l) This article does not apply to public works
projects governed by Title 39.
(m) This article does not apply to the purchase by the
Department of Transportation of road building materials for
transportation infrastructure in the state. Road building
materials may be purchased from private land owners or
commercial providers from the nearest or most cost-effective
source available for the particular application. Road building
materials include dirt, gravel, stone, slag, or borrow
materials, in natural state or processed by crushing, grading,
or screening processes.
(n) This article does not apply to purchases of
supplies and services for the maintenance and operation of
highway infrastructure and right-of-way by the Department of
Transportation.
(o) Nothing in this article is intended to repeal or
limit any provision of Article 2, Chapter 1, Title 23,
relating to the powers and authority of the Department of
Transportation. To the extent any provision contained in this
article conflicts with Article 2, Chapter 1, Title 23, the
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article conflicts with Article 2, Chapter 1, Title 23, the
latter governs.
(p) Governmental bodies may purchase supplies from any
vendor that offers the item at a price at least ten10 percent
below the price established on a statewide contract by the
Division of Procurement for the same item, provided that each
purchase, whether for a single item or multiple items, does
not exceed an amount established by rules of the Chief
Procurement Officer. The Division of Procurement shall confirm
that the terms and conditions of the purchases are
substantially similar to those of the statewide contract for
the same item prior to the approval of any purchase under this
subsection. Any purchase that would be directly connected to
any information technology network used by the state shall
require prior approval by the Secretary of Information
Technology. If the purchaser is to take possession of the
purchased supplies at the vendor's physical location, any
acquisition of supplies under this subsection may be purchased
only from vendors physically located within the state. The
price of any supplies purchased under this subsection shall be
the market price readily available to the public at large. The
acquisition of supplies under this subsection is subject to
the supervision and administration of the Division of
Procurement.
(q) Nothing in this article is intended to repeal or
limit any provision of Chapter 61E of Title 16, relating to
the powers and authority of the Department of Education to
enter into joint purchasing agreements on behalf of
educational institutions. To the extent any provision
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educational institutions. To the extent any provision
contained in this article conflicts with Chapter 61E of Title
16, the latter governs.
(r) Nothing in this article shall be construed as
repealing Section 9-2-106 or Section 9-2-107.
(s) This article does not apply to purchases by the
Alabama Department of Rehabilitation Services of supplies and
services for the Alabama Department of Rehabilitation Services
consumers.
(t) This article does not apply to the Alabama Medicaid
Agency for purposes of the selection of professional service
providers for contracts with physicians, pharmacists,
dentists, optometrists, opticians, nurses, and other health
professionals which involve only service on agency task
forces, boards, or committees."
Section 2. This act shall become effective on October
1, 2026.
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1, 2026.
House of Representatives
Read for the first time and referred
to the House of Representatives
committee on Economic Development
and Tourism
................26-Feb-26
Read for the second time and placed
on the calendar:
0 amendments
................05-Mar-26
Read for the third time and passed
as amended
Yeas 84
Nays 7
Abstains 10
................31-Mar-26
John Treadwell
Clerk
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