SB 291 — Relating to public contracts; to amend Section 41-16-51, Code of Alabama 1975, to further provide for contracts for which competitive bidding is not required; 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.

SB291 ENGROSSEDENROLLED 2B4VKS-22B4VKS-3 By Senator Coleman RFD:

03-May-23 2023 Regular Session Page 0 SB291 EngrossedEnrolled 2Enrolled, SectionAn 111.05Act, of3 theRelating Constitution of Alabama of 2022, prohibits a general law whose purpose or effect would be to requirepublic acontracts; 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 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 contracts;

and Page 1 SB291 Engrossed 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.

(4) Contracts of employment in the regular civil Page 1 SB291 Enrolled service.

(6) Purchases of products made or manufactured by blind or visually impaired individuals under the direction or Page 2 SB291 Engrossed supervision of the Alabama Institute for Deaf and Blind in accordance with Sections 21-2-1 to 21-2-4, inclusive.

(13) Contractual services and purchases of commodities Page 2 SB291 Enrolled 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 Page 3 SB291 Engrossed supply a county road or bridge project in which the materials will be used.

(16) Subject to the limitations in this subdivision, 95 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 goods or services are either not at the time Page 3 SB291 Enrolled 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.

The purchase, lease, or lease/purchase is made through a participating Alabama vendor holding an Alabama Page 4 SB291 Engrossed business license if such a vendor exists.

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 95 offering the goods complies with this subdivision.

Prices paid for such goods and services, other than wireless communication services, whether voice or data, may not exceed the amount provided in the Page 4 SB291 Enrolled Government Services Administration contract.

(2) Purchases made by individual schools of the county Page 5 SB291 Engrossed or municipal public school systems from monies other than those raised by taxation or received through appropriations from state or county sources.

(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 Sections 11-54-80 to 11-54-99, inclusive, or Sections 11-54-20 to 11-54-28, inclusive, or any other law or amendment to the Page 5 SB291 Enrolled 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 Sections 11-56-1 to 11-56-22, inclusive.

Page 6 SB291 Engrossed (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.

(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, the county Page 6 SB291 Enrolled commissions, and the governing bodies of the municipalities of the state shall establish and maintain such 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 Page 7 SB291 Engrossed 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, 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.

Page 87 SB291 EngrossedEnrolled Senate________________________________________________ ReadPresident forand thePresiding firstOfficer timeof andthe referredSenate ................03-May-23________________________________________________ toSpeaker of the SenateHouse committeeof onRepresentatives FiscalSB291 ResponsibilitySenate and24-May-23 EconomicI Developmenthereby Readcertify forthat the secondwithin timeAct andoriginated placedin ................10-May-23and onpassed the calendar:Senate, as amended.

amendments Read for the third time and passed ................24-May-23 as amended Yeas 33 Nays 0 Abstains 0 Patrick Harris, Secretary.

PageHouse 9of Representatives Amended and passed:

06-Jun-23 By:

Senator Coleman Page 8