Amendment vs bill Amendment ZS33WK-1 vs Engrossed

Struck = removed from the bill · added = the amendment's new text.

Previous
Latest
SB290 ENGROSSED 4S0M3I-2 By Senator Givhan RFD:
ZS33WK-1 05/08/2023 CMH (L)bm 2023-2002 SUB SB290 FISCAL RESPONSIBILITY AND ECONOMIC DEVELOPMENT SUBSTITUTE TO SB290 OFFERED BY SENATOR GIVHAN 2 4 SYNOPSIS:
Fiscal Responsibility and Economic Development First Read:
Under existing law, contracts for public works involving an amount in excess of $50,000 are subject to the public works competitive bid procedures.
03-May-23 2023 Regular Session Page 0 SB290 Engrossed 2 4 6 A BILL TO BE ENTITLED AN ACT Relating to public works contracts;
This bill would increase the threshold amount to $100,000 and would authorize an additional increase to the amount based on increases in the Consumer Price Index.
This bill would authorize the use of electronic means to provide certain required notices.
This bill would also authorize the use of electronic sealed bids.
Section 111.05 of the Constitution of Alabama of 2022, prohibits a general law whose purpose or effect would be to require a new or increased expenditure of local funds from becoming effective with regard to a local governmental entity without enactment by a 2/3 vote unless:
it comes within one of a number of specified exceptions;
it is approved by the affected entity;
or the Legislature appropriates funds, or provides a local source of revenue, to the entity for the purpose.
The purpose or effect of this bill would be to require a new or increased expenditure of local funds within the meaning of the amendment.
However, the bill Page 1 does not require approval of a local governmental entity or enactment by a 2/3 vote to become effective because it comes within one of the specified exceptions contained in the amendment.
A BILL TO BE ENTITLED AN ACT Relating to public works contracts;
"§39-1-1 (a) Any person entering into a contract with an awarding authority in this state for the prosecution of any public works shall, before commencing the work, shall execute Page 1 SB290 Engrossed a performance bond, with penalty equal to 100 percent of the amount of the contract price.
"§39-1-1 (a) Any person entering into a contract with an awarding authority in this state for the prosecution of any Page 2 public works shall, before commencing the work, shall execute a performance bond, with penalty equal to 100 percent of the amount of the contract price.
In the event the surety or contractor fails to pay the claim in full within 45 days from the mailing of the notice, then the person or persons may recover from the contractor and surety, in addition to the amount of the claim, Page 2 SB290 Engrossed a reasonable attorney'sattorney fee based on the result, together with interest on the claim from the date of the notice.
In the event the surety or contractor fails to pay the claim in full within 45 days from the mailing of the notice, then the person or persons may recover from the Page 3 contractor and surety, in addition to the amount of the claim, a reasonable attorney'sattorney fee based on the result, together with interest on the claim from the date of the notice.
If the judgment finally obtained by the offeree is less favorable than the offer, the offeree Page 3 SB290 Engrossed shall pay the reasonable attorney'sattorney fees and costs incurred by the offeror after the making of the offer.
If the judgment finally obtained by Page 4 the offeree is less favorable than the offer, the offeree shall pay the reasonable attorney'sattorney fees and costs incurred by the offeror after the making of the offer.
When the liability of one party to another party has been determined by verdict, order, or judgment, but the amount or extent of the liability remains to be determined by further proceedings, any party may make an offer of judgment, which shall have the same effect as an offer made before trial if the offer is made no less than 10 days prior to the commencement of hearings to determine the amount or 95 extent of liability.
When the liability of one party to another party has been determined by verdict, order, or judgment, but the amount or extent of the liability remains to be determined by further proceedings, any party may make an offer of judgment, which shall have the same effect as an offer made before trial if the offer is made no less than 10 days prior to the commencement of hearings to determine the amount or extent of liability.
c.
Page 5 c.
On a website utilized by the awarding authority for Page 4 SB290 Engrossed publishing notices.
On a website utilized by the awarding authority for publishing notices.
(g) Subsection (f) shall not apply to contractors performing contracts of less than fifty thousand dollars ($50,000)one hundred thousand dollars ($100,000) in amount.
(g) Subsection (f) shall not apply to contractors performing contracts of less than fifty thousand dollars Page 6 ($50,000)one hundred thousand dollars ($100,000) in amount.
In Page 5 SB290 Engrossed such cases, the governing body of the contracting agency, to expedite final payment, shall cause notice of final completion of the contract to be published one time in a newspaper of general circulation, published in the county of the contracting agency and shall post notice of final completion on the agency's bulletin board for one week, and shall require the contractor to certify under oath that all bills have been paid in full.
In such cases, the governing body of the contracting agency, to expedite final payment, shall cause notice of final completion of the contract to be published one time in a newspaper of general circulation, published in the county of the contracting agency and shall post notice of final completion on the agency's bulletin board for one week, and shall require the contractor to certify under oath that all bills have been paid in full.
Work paid for by reimbursing for the actual costs for labor, materials, and equipment usage incurred in the performance of the work, as directed, including a percentage for overhead and profit, where appropriate.
Work paid for by reimbursing for the actual costs for labor, materials, and equipment usage incurred in the performance of the work, as directed, including a percentage for overhead and profit, where Page 7 appropriate.
Page 6 SB290 Engrossed (3) LIFE CYCLE COSTS.
(3) LIFE CYCLE COSTS.
The construction, installation, repair, renovation, or maintenance of public buildings, structures, sewers, waterworks, roads, curbs, gutters, side walls, bridges, docks, underpasses, and viaducts as well as any other improvement to be constructed, installed, repaired, renovated, or maintained on public property and to be paid, in whole or in part, with public funds or with financing to be retired with public funds in the form of lease payments or otherwise." "§39-2-2 (a)(1) Before entering into any contract for a public Page 7 SB290 Engrossed works involving an amount in excess of fifty thousand dollars ($50,000) one hundred thousand dollars ($100,000), the awarding authority shall advertise for sealed bids, except as provided in subsection (j).
The construction, installation, repair, renovation, or maintenance of public buildings, structures, sewers, waterworks, roads, curbs, gutters, side walls, bridges, docks, underpasses, and viaducts as well as any other improvement to be constructed, installed, repaired, renovated, or maintained on public property and to be paid, in whole or in part, with public funds or with financing to be retired with public funds in the form of lease payments or otherwise." "§39-2-2 Page 8 (a)(1) Before entering into any contract for a public works involving an amount in excess of fifty thousand dollars ($50,000) one hundred thousand dollars ($100,000), the awarding authority shall advertise for sealed bids, except as provided in subsection (j).
(3) With the exception of the Department of Transportation, for all public works contracts involving an Page 8 SB290 Engrossed estimated amount in excess of five hundred thousand dollars ($500,000), awarding authorities shall also advertise for sealed bids at least once in three newspapers of general circulation throughout the state.
(3) With the exception of the Department of Page 9 Transportation, for all public works contracts involving an estimated amount in excess of five hundred thousand dollars ($500,000), awarding authorities shall also advertise for sealed bids at least once in three newspapers of general circulation throughout the state.
(2) An awarding authority may enter into a contract for public works if an advertisement for sealed bids for the contract was submitted by the awarding authority to a newspaper and the newspaper only published the advertisement Page 9 SB290 Engrossed for two weeks if the authority can provide proof that it, in good faith, submitted the advertisement to the newspaper with instructions to publish the notice in accordance with the provisions of this section.
(2) An awarding authority may enter into a contract for public works if an advertisement for sealed bids for the contract was submitted by the awarding authority to a Page 10 newspaper and the newspaper only published the advertisement for two weeks if the authority can provide proof that it, in good faith, submitted the advertisement to the newspaper with instructions to publish the notice in accordance with the provisions of this section.
The heating or air conditioning unit or system being purchased is available as a result of a competitive bid Page 10 SB290 Engrossed process conducted by a governmental entity which has been approved by the Department of Examiners of Public Accounts.
The heating or air conditioning unit or system being Page 11 purchased is available as a result of a competitive bid process conducted by a governmental entity which has been approved by the Department of Examiners of Public Accounts.
The exemption from the requirement to utilize 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 article, 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.
The exemption from the requirement to utilize 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 article, 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 Page 12 rule.
Page 11 SB290 Engrossed (e)(1) 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.
(e)(1) 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.
(1) Except for contracts involving the construction, reconstruction, renovation, or replacement of public roads, bridges, and water and sewer facilities, the awarding Page 12 SB290 Engrossed authority can document to the satisfaction of the Division of Construction Management 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.
(1) Except for contracts involving the construction, reconstruction, renovation, or replacement of public roads, Page 13 bridges, and water and sewer facilities, the awarding authority can document to the satisfaction of the Division of Construction Management 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.
and (2) 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.
and (2) 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 Page 14 maintaining confidentiality.
Records of bidding and award Page 13 SB290 Engrossed shall not be disclosed to the public and shall remain confidential.
Records of bidding and award shall not be disclosed to the public and shall remain confidential.
(l)(1) Notwithstanding any other provision of law, any Page 14 SB290 Engrossed entity subject to this chapter that is an awarding authority of a contract for public works, by resolution or board action, may purchase materials or equipment pursuant to subdivisions (14), (16), 17), (18), or (19) of Section 41-16-51(a), even when those materials or equipment are otherwise part of the contract for public works subject to the requirements of this title.
Page 15 (l)(1) Notwithstanding any other provision of law, any entity subject to this chapter that is an awarding authority of a contract for public works, by resolution or board action, may purchase materials or equipment pursuant to subdivisions (14), (16), 17), (18), or (19) of Section 41-16-51(a), even when those materials or equipment are otherwise part of the contract for public works subject to the requirements of this title.
(m) Beginning October 1, 2027, and every five years thereafter, all dollar amounts used in this article shall be subject to a cost adjustment based on the following procedure:
(m) The dollar amounts specified in this chapter shall be adjusted beginning October 1, 2027, and every three years thereafter.
The Chief Examiner of the Department of Examiners of Public Accounts may submit to the Chair of the Legislative Council a recommendation that the amount be increased based on the percentage increase in the Consumer Price Index for the immediately preceding five-year period, rounded to the nearest thousand dollars.
The adjustment to the dollar amounts shall be made based on the percentage increase in the Consumer Price Index for all urban consumers, as published by the U.S.
The recommendation shall be subject to the approval of the Legislative Council.
Department of Labor, Bureau of Labor Statistics, and then rounded to the nearest thousand dollars.
In the event the recommendation is not disapproved by the Legislative Council by the end of April following the submission of the recommendation, the recommendation shall be deemed to be approved.
The Department of Examiners of Public Accounts shall notify the public of the adjusted dollar amounts by July 1 before the fiscal year in which the changes shall take effect." "§39-2-6 (a) The contract shall be awarded to the lowest responsible and responsive bidder, unless the awarding Page 16 authority finds that all the bids are unreasonable or that it is not toin the interest of the awarding authority to accept any of the bids.
Upon approval, the Department of Examiners of Public Page 15 SB290 Engrossed Accounts shall notify the public of the adjusted dollar amounts by July 1 before the fiscal year in which the changes will take effect." "§39-2-6 (a) The contract shall be awarded to the lowest responsible and responsive bidder, unless the awarding authority finds that all the bids are unreasonable or that it is not toin the interest of the awarding authority to accept any of the bids.
(b) If no bids or only one bid is received at the time stated in the advertisement for bids, the awarding authority Page 16 SB290 Engrossed may advertise for and seek other competitive bids, or the awarding authority may direct that the work shall be done by force account under its direction and control or, with the exception of the Department of Transportation, the awarding authority may negotiate for the work through the receipt of informal bids not subject to the requirements of this section.
(b) If no bids or only one bid is received at the time stated in the advertisement for bids, the awarding authority may advertise for and seek other competitive bids, or the awarding authority may direct that the work shall be done by force account under its direction and control or, with the exception of the Department of Transportation, the awarding authority may negotiate for the work through the receipt of informal bids not subject to the requirements of this section.
Where only one responsible and responsive bid has been received, any negotiation for the work shall be for a price lower than that bid.
Page 17 Where only one responsible and responsive bid has been received, any negotiation for the work shall be for a price lower than that bid.
(e) On any construction project on which the awarding authority has prepared plans and specifications, has received Page 17 SB290 Engrossed bids, and has determined to do by force account or by negotiation, the awarding authority shall make available the plans and specifications, an itemized estimate of cost, and any informal bids for review by the Department of Examiners of Public Accounts and, upon completion of the project by an awarding authority, the final total costs together with an itemized list of cost of any and all changes made in the original plans and specifications shall also be made available for review by the Department of Examiners of Public Accounts.
(e) On any construction project on which the awarding authority has prepared plans and specifications, has received bids, and has determined to do by force account or by negotiation, the awarding authority shall make available the plans and specifications, an itemized estimate of cost, and any informal bids for review by the Department of Examiners of Public Accounts and, upon completion of the project by an awarding authority, the final total costs together with an Page 18 itemized list of cost of any and all changes made in the original plans and specifications shall also be made available for review by the Department of Examiners of Public Accounts.
Show all 46 changed rows (6 more)
Previous
Latest
Page 18 SB290 Engrossed (h) Any agreement or collusion among bidders or prospective bidders in restraint of freedom of competition to bid at a fixed price or to refrain from bidding or otherwise shall render the bids void and shall cause the bidders or prospective bidders to be disqualified from submitting further bids to the awarding authority on future lettings.
(h) Any agreement or collusion among bidders or prospective bidders in restraint of freedom of competition to bid at a fixed price or to refrain from bidding or otherwise shall render the bids void and shall cause the bidders or prospective bidders to be disqualified from submitting further bids to the awarding authority on future lettings.
Any bidder or prospective bidder who willfully participates in any agreement or collusion in restraint of freedom of competition shall be guilty of a felony and, on conviction thereof, shall be fined not less than five thousand dollars ($5,000) nor more than fifty thousand dollars ($50,000) or, at the discretion of the jury, shall be imprisoned in the penitentiary for not less than one nor more than three years.
Any bidder Page 19 or prospective bidder who willfully participates in any agreement or collusion in restraint of freedom of competition shall be guilty of a felony and, on conviction thereof, shall be fined not less than five thousand dollars ($5,000) nor more than fifty thousand dollars ($50,000) or, at the discretion of the jury, shall be imprisoned in the penitentiary for not less than one nor more than three years.
To utilize this provision to determine the lowest responsible and responsive bidder, the awarding Page 19 SB290 Engrossed authority must include a notice in the invitation to bid that the lowest responsible and responsive bidder may be determined by using life cycle costs, and must also include in the invitation to bid the criteria under which it shall evaluate the life cycle costs." Section 2.
To utilize this provision to determine the lowest responsible and responsive bidder, the awarding authority must include a notice in the invitation to bid that the lowest responsible and responsive bidder may be determined by using life cycle costs, and must also include in the invitation to bid the criteria under which it shall evaluate the life cycle costs." Section 2.
Although this bill would have as its purpose 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.
Although this bill would have as its purpose Page 20 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 20 SB290 Engrossed Senate Read for the first time and referred ................03-May-23 to the Senate committee on Fiscal Responsibility and Economic Development Read for the second time and placed ................11-May-23 on the calendar:
amendments Read for the third time and passed ................18-May-23 as amended Yeas 31 Nays 0 Abstains 0 Patrick Harris, Secretary.