AL HB324

Amends Section 41-16-20 of the Code of Alabama 1975 to modify competitive bidding requirements for state contracts valued at $15,000 or more.

Changes requirement from discretionary ("may") to mandatory ("shall") that awarding authorities award contracts to preferred vendors when their bids are no more than 5 percent greater than the lowest responsible bidder's bid.

Defines "preferred vendor" as entities that produce/manufacture products in-state, operate assembly plants or distribution facilities in-state, or are organized under state law with at least one retail outlet or service center maintained for one year prior to bid deadline.

Establishes that if multiple preferred vendors submit bids within 5 percent of the lowest responsible bidder, the contract must be awarded to the preferred vendor with the lowest bid among them.

Becomes effective on the first day of the third month following passage and gubernatorial approval, or when otherwise becoming law.