HB264 Summary

• Amends Section 41-16-50 of the Alabama Code to modify competitive bidding requirements for counties and municipalities purchasing personal property or services.

• Increases local preference threshold from 3% to 5% above the lowest responsible bidder's bid for contracts awarded to bidders with a place of business within the established local preference zone.

• Allows awarding authorities to award contracts to qualified in-state bidders (woman-owned enterprises, small businesses, minority-owned businesses, veteran-owned businesses, or disadvantaged-owned businesses) if their bid is no more than 10% greater than a foreign entity's lowest bid.

• Defines "foreign entity" as a business entity without a place of business within the state, establishing separate bidding preferences when the lowest bid comes from out-of-state sources.

• Effective on the first day of the third month following passage and gubernatorial approval.