HB 65 — To amend Sections 16-13B-1, 16-13B-4, and 16-13B-5, Code of Alabama 1975, relating to competitive bidding on contracts of city and county boards of education; to increase the minimum amount for contracts subject to competitive bid from $15,000 to $40,000; to provide a legislative process for increasing the threshold dollar amount in the future based on increases in the Consumer Price Index; and in connection therewith would have as its purpose or effect the requirement of a new or increased expenditure of local funds within the meaning of Section 111.05 of the Constitution of Alabama of 2022.

HB65 ENGROSSEDENROLLED XQ607E-2XQ607E-3 By Representative Collins RFD:

06-Mar-23 2023 Regular Session Page 0 HB65 EngrossedEnrolled 2Enrolled, 4An AAct, BILL3 TO BE ENTITLED AN ACT 9 To amend Sections 16-13B-1, 16-13B-4, and 16-13B-5, Code of Alabama 1975, relating to competitive bidding on contracts of city and county boards of education;

With the exception of contracts for public works whose competitive bidding Page 1 HB65 Engrossed requirements are governed exclusively by Title 39, all expenditure of funds of whatever nature for labor, services, work, or for the purchase of materials, equipment, supplies, or other personal property involving fifteen thousand dollars ($15,000) forty thousand dollars ($40,000) or more, and the Page 1 HB65 Enrolled lease of materials, equipment, supplies, or other personal property where the lessee is, or becomes legally and contractually, bound under the terms of the lease, to pay a total amount of fifteen thousand dollars ($15,000) forty thousand dollars ($40,000) or more, made by or on behalf of any city or county board of education, except as hereinafter provided, shall be made under contractual agreement entered into by free and open competitive bidding, on sealed bids, to the lowest responsible bidder.

Upon approval, the Chief Examiner shall notify the Page 2 HB65 Engrossed public of the adjusted dollar amounts by July 1 before the fiscal year in which the changes are to take effect.

(b) Prior to advertising for bids for an item of personal property, where a city or county board of education, Page 2 HB65 Enrolled thereof is the awarding authority, the awarding authority may establish a local preference zone consisting of either the legal boundaries or jurisdiction of the awarding authority, or the boundaries of the county in which the awarding authority is located, or the boundaries of the core based statistical area (CBSA) in which the awarding authority is located.

(c) The governing bodies of two or more city or county boards of education, or any combination of two or more city or Page 3 HB65 Engrossed county boards of education, counties, municipalities, or instrumentalities thereof, may provide, by joint agreement, for the purchase of labor, services, or work, or for the purchase or lease of materials, equipment, supplies, or other personal property for use by their respective agencies.

The Page 3 HB65 Enrolled agreement shall be entered into by official actions of the contracting agencies adopted by each of the participating governing bodies which shall set forth the categories of labor, services, or work, or for the purchase or lease of materials, equipment, supplies, or other personal property to 95 be purchased, the manner of advertising for bids and the awarding of contracts, the method of payment by each participating contracting agency, and other matters deemed necessary to carry out the purposes of the agreement.

Each contracting agency's share of expenditures for purchases under 95 any agreement shall be appropriated and paid in the manner set forth in the agreement and in the same manner as for other expenses of the contracting agency.

In the event that utility services are no longer exempt from competitive bidding under this chapter, non-adjoining boards of education may not Page 4 HB65 Engrossed purchase utility services by joint agreement under authority granted by this subsection.

(d) The awarding authority may require bidders to furnish a bid bond for a particular bid solicitation if the bonding requirement applies to all bidders, is included in the Page 4 HB65 Enrolled written bid specifications, and if bonding is available for the services, equipment, or materials." "§16-13B-4 (a) All proposed purchases in excess of fifteen thousand dollars ($15,000) forty thousand dollars ($40,000) shall be advertised by posting notice thereof on a bulletin board maintained outside the purchasing office and in any other manner and for any length of time as may be determined.

provided, however, that a reverse auction shall only be allowed where Page 5 HB65 Engrossed the item to be purchased at a reverse auction is either not at the time available on the state purchasing program under the same terms and conditions or, if available, the lowest price offered in the reverse auction is equal to or less than the price for which the item is available on the state purchasing Page 5 HB65 Enrolled program under the same terms and conditions.

(e) No purchase or contract involving professional Page 6 HB65 Engrossed services shall be subject to the requirements of this chapter and no purchase or contract involving an amount in excess of fifteen thousand dollars ($15,000) forty thousand dollars ($40,000) shall be divided into parts involving amounts of fifteen thousand dollars ($15,000) forty thousand dollars Page 6 HB65 Enrolled ($40,000) or less for the purpose of avoiding the requirements of this chapter.

Although this bill would have as its purpose Page 7 HB65 Engrossed or effect the requirement of a new or increased expenditure of local funds, the bill is excluded from further requirements and application under Section 111.05 of the Constitution of Alabama of 2022, because the bill defines a new crime or amends the definition of an existing crime.

Page 7 HB65 Enrolled Section 3.

Page 8 HB65 EngrossedEnrolled House________________________________________________ Speaker of Representativesthe ReadHouse forof theRepresentatives first________________________________________________ timePresident and referredPresiding ................06-Mar-23Officer toof the Senate House of Representatives committeeI onhereby Wayscertify andthat Meansthe Educationwithin ReadAct fororiginated thein second time and placedwas ................22-Mar-23passed onby the calendar:House 11-Apr-23 as amended.

amendments Read for the third time and passed ................11-Apr-23 as amended Yeas 101 Nays 0 Abstains 2 John Treadwell Clerk Senate 02-May-23 Passed Page 9