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SB75 ENGROSSED
Page 0
SB75
YMXV422-2
By Senator Chesteen
RFD: Education Policy
First Read: 13-Jan-26
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SB75 Engrossed
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First Read: 13-Jan-26
A BILL
TO BE ENTITLED
AN ACT
Relating to public works contracts; to amend Section
39-2-2, Code of Alabama 1975, as last amended by Act 2025-383,
2025 Regular Session, to provide an exception to the public
works law for the purchase of certain materials and equipment
made pursuant to a cooperative purchasing agreement; and to
amend Sections 41-16-51, 16-13B-2, and 41-4-171, Code of
Alabama 1975, to provide requirements for certain public
contracts to be awarded in a manner that complies with the
applicable state or local competitive bid laws.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Sections 39-2-2, Code of Alabama 1975, as
last amended by Act 2025-383, 2025 Regular Session, is amended
to read as follows:
"§39-2-2
(a)(1) Before entering into any contract for a public
works involving an amount in excess of one hundred thousand
dollars ($100,000), the awarding authority shall advertise for
sealed bids, except as provided in subsection (k).
(2)a. If the awarding authority is the state, a county,
or an instrumentality thereof, it shall advertise for sealed
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or an instrumentality thereof, it shall advertise for sealed
bids at least once each week for three consecutive weeks in a
newspaper of general circulation in the county or counties in
which the improvement, or some part thereof, is to be made.
b.1. If the awarding authority is a municipality, or an
instrumentality thereof, it shall advertise for sealed bids at
least once in a newspaper of general circulation published in
the municipality where the awarding authority is located.
2. If no newspaper is published in the municipality,
the awarding authority shall advertise by posting notice
thereof on a bulletin board maintained outside the purchasing
office and in any other manner and for the length of time as
may be determined. In addition to bulletin board notice, the
awarding authority shall also send the notice by U.S. mail or
electronic mail to the Department of Finance for publication
of the advertisement on the centralized website maintained by
the department as further described in subsection (c).
(3) The advertisements shall briefly describe the
improvement, state that plans and specifications for the
improvement are on file for examination in a designated office
of the awarding authority, state the procedure for obtaining
plans and specifications, state the time and place in which
bids shall be received and opened, and identify whether
prequalification is required and where all written
prequalification information is available for review.
(4) All bids shall be opened publicly at the advertised
time and place.
(5) No public work involving a sum in excess of one
hundred thousand dollars ($100,000) shall be split into parts
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hundred thousand dollars ($100,000) shall be split into parts
involving sums of one hundred thousand dollars ($100,000) or
less for the purpose of evading the requirements of this
section.
(b)(1) An awarding authority may let contracts for
public works involving one hundred thousand dollars ($100,000)
or less with or without advertising or sealed bids.
(2) Notwithstanding the advertising requirements of
subdivision (a)(2), an awarding authority may enter into a
contract for public works if: (i) the awarding authority
submitted the advertisement for sealed bids for the contract
in accordance with subdivision (a)(2); and (ii) the
advertisement was published for at least three weeks, or if
the awarding authority is a municipality or instrumentality
thereof for at least seven consecutive calendar days, on a
centralized website maintained by the Department of Finance as
further described in subsection (c).
(3) If the awarding authority under subdivision (2) is
the Department of Transportation, the Department of Finance
may alternatively satisfy the requirements of subdivision
(2)(ii) by publishing the advertisement on its publicly
accessible website for at least three weeks.
(4) If the awarding authority under subdivision (2) is
a county or instrumentality thereof, the county or
instrumentality may alternatively satisfy the requirements of
subdivision (2)(ii) by publishing the advertisement in
accordance with the procedures submitted by the Association of
County Engineers of Alabama and approved by the Department of
Examiners of Public Accounts as authorized by general law.
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Examiners of Public Accounts as authorized by general law.
(c) The Department of Finance shall establish and
maintain a centralized website or digital platform to provide
publicly accessible notice of advertisements for sealed bids
pursuant to this section. The department may further provide
for the administration and operations related thereto by the
adoption of administrative rules, including, but not limited
to, the assessment of fees to awarding authorities for the
posting of advertisements to cover the implementation and
maintenance cost of the website or digital platform.
(d) All contracts for public works entered into in
violation of this title shall be void and violative of public
policy. Anyone who willfully violates this chapter concerning
public works shall be guilty of a Class C felony.
(e)(1) Excluded from the operation of this title shall
be contracts with persons who shall perform only
architectural, engineering, construction management, program
management, or project management services in support of the
public works and who shall not engage in actual construction,
repair, renovation, or maintenance of the public works with
their own forces, by contract, subcontract, purchase order,
lease, or otherwise.
(2)a. Excluded from operation of the bidding
requirements in this title are contracts for the purchase of
any heating or air conditioning units or systems by any
awarding authority subject to Chapter 13B of Title 16, Article
3, commencing with Section 41-16-50 of Chapter 16 of Title 41,
or Article 5, commencing with Section 41-4-110 of Chapter 4 of
Title 41, provided the contract is entered into with an
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Title 41, provided the contract is entered into with an
Alabama vendor who has been granted approved vendor status for
the sale of heating or air conditioning units or systems as a
part of a purchasing cooperative, and each of the following
occur:
1. The heating or air conditioning unit or system being
purchased is available as a result of a competitive bid
process conducted by a governmental entity which has been that
complies with the Alabama competitive bid law applicable to
the awarding authority and is approved by the Department of
Examiners of Public Accounts.
2. The purchase of the heating or air conditioning unit
or system is not available on the state purchasing program at
the time or the purchase under the purchasing cooperative is
available at a price that is equal to or less than that
available through the state purchasing program.
3. The entity entering into the contract for the
purchase of the heating or air conditioning unit or system has
been notified by the Department of Examiners of Public
Accounts that the competitive bid process utilized by the
cooperative program offering the goods complies with this
subdivision.
4. Upon request, the vendor has provided the purchasing
entity with a report of sales made under this subdivision
during the previous 12-month period, to include a general
description of the heating or air conditioning units and
systems sold, the number of units sold per entity, and the
purchase price of the units.
b. The exemption from the requirement to use sealed
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b. The exemption from the requirement to use sealed
bids for the purchase of heating or air conditioning units or
systems authorized by this section shall not serve to exempt
any public works project from the remaining provisions of this
chapter, including, but not limited to, design, installation,
and review requirements, compliance with all applicable codes,
laws, specifications, and standards, and the compensation of
engineers, architects, or others as mandated by state law or
rule.
(f)(1) In case of an emergency for which a delay in
remedying would cause immediate harm to a person or public
property, contracts may be let to the extent necessary to meet
the emergency without public advertisement or bidding.
(2) In case of an emergency affecting public health,
safety, or convenience, as declared in writing by the awarding
authority, setting forth the nature of the danger to the
public health, safety, or convenience which would result from
delay, contracts may be let to the extent necessary to meet
the emergency without public advertisement.
(3) Any action taken under subdivision (1) or (2), and
the reasons for the action taken, shall immediately be made
public by the awarding authority and published in writing.
(g) No awarding authority may specify in the plans and
specifications for the improvement the use of materials,
products, systems, or services by a sole source unless all of
the following requirements are met:
(1) Except for contracts involving the construction,
reconstruction, renovation, or replacement of public roads,
bridges, and water and sewer facilities, the awarding
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bridges, and water and sewer facilities, the awarding
authority can document to the satisfaction of the Division of
Real Property Management of the Department of Finance, or in
the case of an educational institution or state educational
institution as provided pursuant to Sections 41-4-353 and
41-4-400, to the satisfaction of its governing board, that the
sole source product, material, system, or service is of an
indispensable nature for the improvement, that there are no
other viable alternatives, and that only this particular
product, material, system, or service fulfills the function
for which it is needed.
(2) The sole source specification has been recommended
by the architect or engineer of record as an indispensable
item for which there is no other viable alternative.
(3) All information substantiating the use of a sole
source specification, including the recommendation of the
architect or engineer of record, shall be documented and made
available for examination in the office of the awarding
authority at the time of advertisement for sealed bids.
(h) If a proposed public works project is acknowledged
in writing by the Alabama Homeland Security Department as: (i)
having a direct impact on the security or safety of persons or
facilities; and (ii) requiring confidential handling for the
protection of such persons or facilities, contracts may be let
without public advertisement but with the taking of informal
bids otherwise consistent with the requirements of this title
and the requirements of maintaining confidentiality. Records
of bidding and award shall not be disclosed to the public and
shall remain confidential.
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shall remain confidential.
(i) If a pre-bid meeting is held, the pre-bid meeting
shall be held at least seven days prior to the bid opening
except when the project has been declared an emergency in
accordance with subsection (f).
(j) The awarding authority may not offer a contract for
bidding unless confirmation of any applicable grant has been
received and any required matching funds have been secured by
or are available to the awarding authority.
(k) Notwithstanding subsection (a), the Department of
Transportation may enter into contracts for road construction
or road maintenance projects that do not involve more than two
hundred fifty thousand dollars ($250,000) without advertising
for sealed bids, provided the project is listed on the
publicly accessible website of the department for at least
seven calendar days before entering into the contract. The
total cost of all projects not subject to advertising and
sealed bids pursuant to this subsection may not exceed one
million dollars ($1,000,000) in the aggregate per year.
(l) For the purposes of this chapter, sealed bids may
also be solicited and submitted through electronic means
including, but not limited to, electrical, digital, magnetic,
optical, electromagnetic, or any other similar technology,
provided that the awarding authority adopts rules and policies
to ensure that all electronic submissions are transmitted
securely and bids remained remain sealed until bid opening.
(m)(1) Notwithstanding any other provision of law, any
entity subject to this chapter thatwhich is an awarding
authority of a contract for public works, by resolution or
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authority of a contract for public works, by resolution or
board action, may purchase materials or equipment pursuant to
a cooperative purchasing agreement under Division 7 of Article
5 of Chapter 4 of Title 41, or pursuant to the requirements of
Section 41-16-51(a)(14), (16), (17), (18), or (19), as
applicable, even when those materials or equipment are
otherwise part of the contract for public works subject to the
requirements of this title. The materials or equipment being
purchased pursuant to this section shall have been awarded
through a competitive bid process that complies with the
Alabama competitive bid law applicable to that awarding
authority.
(2) Except for those materials or equipment described
in subdivision (1), the remaining portion of the public works
project shall be subject to the requirements of this title,
even if the remaining portion would involve an amount less
than one hundred thousand dollars ($100,000) as a result of
the exclusion of the purchase of the materials or equipment as
described in subdivision (1)."
Section 2. Section 41-16-51, Code of Alabama 1975, is
amended to read as follows:
"§41-16-51
(a) Competitive bids for entities subject to this
article shall not be required for utility services, the rates
for which are fixed by law, regulation, or ordinance, and the
competitive bidding requirements of this article shall not
apply to any of the following:
(1) The purchase of insurance.
(2) The purchase of ballots and supplies for conducting
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(2) The purchase of ballots and supplies for conducting
any primary, general, special, or municipal election.
(3) Contracts for securing services of attorneys,
physicians, architects, teachers, superintendents of
construction, artists, appraisers, engineers, consultants,
certified public accountants, public accountants, or other
individuals possessing a high degree of professional skill
where the personality of the individual plays a decisive part.
(4) Contracts of employment in the regular civil
service.
(5) Contracts for fiscal or financial advice or
services.
(6) Purchases of products made or manufactured by blind
or visually impaired individuals under the direction or
supervision of the Alabama Institute for Deaf and Blind in
accordance with Chapter 2 of Title 21.
(7) Purchases of maps or photographs from any federal
agency.
(8) Purchases of computer programs, software
applications, manuscripts, books, maps, pamphlets,
periodicals, and library or research electronic databases of
manuscripts, books, maps, pamphlets, or periodicals.
(9) The selection of paying agents and trustees for any
security issued by a public body.
(10) Existing contracts up for renewal for sanitation
or solid waste collection, recycling, and disposal between
municipalities or counties, or both, and those providing the
service.
(11) Purchases of computer and word processing hardware
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(11) Purchases of computer and word processing hardware
when the hardware is the only type that is compatible with
hardware already owned by the entity taking bids and custom
software.
(12) Professional services contracts for codification
and publication of the laws and ordinances of municipalities
and counties.
(13) Contractual services and purchases of commodities
for which there is only one vendor or supplier and contractual
services and purchases of personal property which by their
very nature are impossible to award by competitive bidding.
(14) Purchases of dirt, sand, or gravel by a county
governing body from in-county property owners in order to
supply a county project in which the materials will be used.
The material shall be delivered to the project site by county
employees and equipment used only on project components
conducted exclusively by county employees.
(15) Contractual services and purchases of products
related to, or having an impact upon, security plans,
procedures, assessments, measures, or systems, or the security
or safety of individuals, structures, facilities, or
infrastructures.
(16) Subject to the limitations in this subdivision,
purchases, leases, or lease/purchases of goods or services,
other than voice or data wireless communication services, made
as a part of the purchasing cooperative sponsored by the
National Association of Counties, its successor organization,
or any other national or regional governmental cooperative
purchasing program. The purchases, leases, or lease/purchases
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purchasing program. The purchases, leases, or lease/purchases
may only be made if all of the following occur:
a. The goods or services being purchased, including
those purchased through a lease/purchase agreement, or leased
are available as a result of a competitive bid process
conducted by a governmental entity whose award complies with
Section 41-16-50(a) and is approved by the Department of
Examiners of Public Accounts for each bid.
b. The goods or services are either not at the time
available to counties on the state purchasing program or are
available at a price equal to or less than that on the state
purchasing program.
c. The purchase, lease, or lease/purchase is made
through a participating Alabama vendor holding an Alabama
business license if such a vendor exists.
d. The entity purchasing, leasing, or lease/purchasing
goods or services under this subdivision has been notified by
the Department of Examiners of Public Accounts that the
competitive bid process utilized by the cooperative program
offering the goods complies with this subdivision. In
addition, upon request, a vendor shall provide the entity
purchasing, leasing, or lease/purchasing goods or services
equaling thirty thousand dollars ($30,000) or more which are
made under this subdivision during the previous 12 months a
report of the sales, leases, and lease/purchases. The report
shall include a general description of the goods or services;
the number of units sold, leased, and leased/purchased per
entity; and the price of units purchased, leased, or
leased/purchased.
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leased/purchased.
(17) Purchases of goods or services, other than
wireless communication services, whether voice or data, from
vendors that have been awarded a current and valid Government
Services Administration contract. Any purchase made pursuant
to this subdivision shall be under the same terms and
conditions as provided in the Government Services
Administration contract. Prices paid for the goods and
services, other than wireless communication services, whether
voice or data, may not exceed the amount provided in the
Government Services Administration contract.
(18) Purchases of goods or services from vendors that
have been awarded a current and valid statewide contract
listed on the Alabama Buys e-procurement system. Any purchase
made pursuant to this subdivision shall be under the same
terms and conditions as provided in the statewide contract.
Prices paid for the goods and services may not exceed the
amount provided in the statewide contract.
(19) Purchases of goods or services between
governmental entities of the state, as authorized by Section
11-1-10.
(20) Purchases of goods or services between a
municipality and a governmental entity, as defined in Section
8-38-2.
(b) This article shall not apply to:
(1) Any purchases of products where the price of the
products is already regulated and established by state law.
(2) Purchases made by individual schools of the county
or municipal public school systems from monies other than
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or municipal public school systems from monies other than
those raised by taxation or received through appropriations
from state or county sources.
(3) The purchase, lease, sale, construction,
installation, acquisition, improvement, enlargement, or
expansion of any building or structure or other facility
designed or intended for lease or sale by a medical clinic
board organized under Chapter 58 of Title 11.
(4) The purchase, lease, or other acquisition of
machinery, equipment, supplies, and other personal property or
services by a medical clinic board organized under Chapter 58
of Title 11.
(5) Purchases for public hospitals and nursing homes
operated by the governing boards of instrumentalities of the
state, counties, and municipalities.
(6) Contracts for the purchase, lease, sale,
construction, installation, acquisition, improvement,
enlargement, or extension of any plant, building, structure,
or other facility or any machinery, equipment, furniture, or
furnishings therefor designed or intended for lease or sale
for industrial development, other than public utilities, under
Division 1 of Article 4 of Chapter 54 of Title 11, or Article
2 of Chapter 54 of Title 11, or any other law or amendment to
the Constitution of Alabama of 2022, authorizing the
construction of plants or other facilities for industrial
development or for the construction and equipment of buildings
for public building authorities under Chapter 15 of Title 11
or Chapter 56 of Title 11.
(7) The purchase of equipment, supplies, or materials
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(7) The purchase of equipment, supplies, or materials
needed, used, and consumed in the normal and routine operation
of any waterworks system, sanitary sewer system, gas system,
or electric system, or any two or more thereof, that are owned
by municipalities, counties, or public corporations, boards,
or authorities that are agencies, departments, or
instrumentalities of municipalities or counties and no part of
the operating expenses of which system or systems, during the
then current fiscal year, have been paid from revenues derived
from taxes or from appropriations of the state, a county, or a
municipality.
(8) Purchases made by local housing authorities,
organized and existing under Chapter 1 of Title 24, from
monies other than those raised by state, county, or city
taxation or received through appropriations from state,
county, or city sources.
(9) The purchase of services to aid in the prevention
and detection of criminal activity by law enforcement agencies
and community-oriented policing programs.
(c) The state trade schools, state junior colleges,
state colleges, and universities under the supervision and
control of the State Board of Education, the district boards
of education of independent school districts two-year and
four-year institutions of higher education , the county
commissions, and the governing bodies of the municipalities of
the state shall establish and maintain purchasing facilities
and procedures as may be necessary to carry out the intent and
purpose of this article by complying with the requirements for
competitive bidding in the operation and management of each
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competitive bidding in the operation and management of each
state trade school, state junior college, state college, or
university under the supervision and control of the State
Board of Education, the district boards of education of
independent school districts two-year and four-year
institution of higher education , the county commissions, and
the governing bodies of the municipalities of the state and
the governing boards of instrumentalities of counties and
municipalities, including waterworks boards, sewer boards, gas
boards, and other like utility boards and commissions.
(d) Contracts entered into in violation of this article
shall be void and any individual who violates this article
shall be guilty of a Class C felony."
Section 3. Section 16-13B-2, Code of Alabama 1975, is
amended to read as follows:
"§16-13B-2
(a) Competitive bids shall not be required for utility
services for county or city boards of education, the rates for
which are fixed by law, regulation, or ordinance, and the
competitive bidding requirements of this chapter shall not
apply to:
(1) The purchase of insurance.
(2) Contracts for securing services of attorneys,
physicians, architects, teachers, superintendents of
construction, artists, appraisers, engineers, consultants,
certified public accountants, public accountants, or other
individuals possessing a high degree of professional skill
where the personality of the individual plays a decisive part.
(3) Contracts of employment in the regular civil
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(3) Contracts of employment in the regular civil
service.
(4) Contracts for fiscal or financial advice or
services.
(5) Purchases of products made or manufactured by blind
or visually impaired individuals under the direction or
supervision of the Alabama Institute for Deaf and Blind in
accordance with Sections 21-2-1 to 21-2-4, inclusive.
(6) Purchases of maps or photographs from any federal
agency.
(7) Purchases of manuscripts, books, instructional
materials, maps, pamphlets, or periodicals, or the electronic
version thereof. The exemption for the purchase of
instructional materials shall only include those purchases
from a current vetted and approved list published by the State
Department of Education.
(8) The selection of paying agents and trustees for any
security issued by a public body.
(9) Existing contracts up for renewal for sanitation or
solid waste collection, recycling, or disposal and those
providing the service.
(10) Purchases of computer and word processing hardware
when the hardware is the only type that is compatible with
hardware already owned by the entity taking bids and custom
software.
(11) Contractual services and purchases of commodities
for which there is only one vendor or supplier and contractual
services and purchases of personal property which by their
very nature are impossible to award by competitive bidding.
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very nature are impossible to award by competitive bidding.
(12) Contractual services and purchases of products
related to, or having an impact upon, security plans,
procedures, assessments, measures, or systems, or the security
or safety of persons, structures, facilities, or
infrastructures.
(13) Purchases, leases, or lease/purchases of goods or
services, other than voice or data wireless communication
services, made as a part of any purchasing cooperative
sponsored by the National Association of Counties, its
successor organization, or any other national or regional
governmental cooperative purchasing program. The purchases,
leases, or lease/purchases may only be made if all of the
following occur:
a. The goods or services being purchased, including
those purchased through a lease/purchase agreement, or leased
are available as a result of a competitive bid process
conducted by a governmental entity whose award complies with
Section 16-13B-1(a) and is approved by the Department of
Examiners of Public Accounts for each bid.
b. The goods or services are either not at the time
available to local boards of education on the state purchasing
program or are available at a price equal to or less than that
on the state purchasing program.
c. The purchase, lease, or lease/purchase is made
through a participating Alabama vendor holding an Alabama
business license if such a vendor exists.
(14) Purchases of unprocessed agricultural products as
defined in subsection (b) of Section 16-1-46 and the cost of
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defined in subsection (b) of Section 16-1-46 and the cost of
the food purchased is equal to or less than the federal
simplified acquisition threshold set in 2 C.F.R. § 200.88.
(15) Purchase of goods or services, other than voice or
data wireless communication services, from vendors that have
been awarded a current and valid general services
administration contract. Prices paid for the goods or services
may not exceed the lowest competitively bid price for these
goods or services, other than voice or data wireless
communication services, and may not exceed the price on an
existing state purchasing program.
(b) This chapter shall not apply to:
(1) Any purchases of products where the price of the
products is already regulated and established by state law.
(2) Purchases made by individual schools of the county
or municipal public school systems from monies other than
those raised by taxation or received through appropriations
from state or county sources.
(c) The city and county boards of education shall
establish and maintain the purchasing facilities and
procedures as may be necessary to carry out the intent and
purpose of this chapter by complying with the requirements for
competitive bidding in the operation and management of each
city and county board of education.
(d) Contracts entered into in violation of this chapter
shall be void, and any person who violates this chapter shall
be guilty of a Class C felony."
Section 4. Section 41-4-171, Code of Alabama 1975, is
amended to read as follows:
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amended to read as follows:
"§41-4-171
(a) A public procurement unit that is governed by this
article may either participate in, sponsor, conduct, or
administer a cooperative purchasing agreement for the
procurement of any supplies or services with one or more
public procurement units in accordance with an agreement
entered into between the participants. The cooperative
purchasing agreement may include joint or multi-party
contracts between public procurement units and open-ended
public procurement unit contracts that are made available to
other public procurement units.
(b) All cooperative purchasing conducted under this
division shall be through contracts awarded using source
selection methods substantially equivalent to those specified
in Division 3."
Section 5. This act shall become effective on October
1, 2026.
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1, 2026.
Senate
Read for the first time and referred
to the Senate committee on Education
Policy
................13-Jan-26
Read for the second time and placed
on the calendar:
1 amendment
................05-Feb-26
Read for the third time and passed
as amended
Yeas 31
Nays 0
Abstains 0
................17-Mar-26
Patrick Harris,
Secretary.
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