Alabama Senate Bill SB36

Alabama 2023 Regular Session

• Introduced: 3/7/23
• Refer: 3/7/23
• Report Pass: 4/11/23
• Engrossed: 4/27/23
• Refer: 4/27/23

Caption

To amend Sections 16-13B-1, Section 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 $25,000; 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.

Impact

By increasing the competitive bidding threshold, SB36 may lead to fewer contracts being subjected to the competitive bid process. Proponents argue that raising this limit will streamline operations for city and county boards of education, enabling them to make quicker decisions regarding smaller contracts that do not warrant extensive bidding procedures. However, the potential downside is that this could reduce competitive pricing and limit the opportunities for smaller vendors, who may not have the capacity to engage in larger contracts, thus impacting local economies.

Summary

SB36 is a legislative bill proposed in Alabama that aims to amend specific sections of the Code of Alabama, particularly those that govern competitive bidding for contracts related to city and county boards of education. The primary goal of the bill is to raise the minimum threshold for contracts that require competitive bidding from $15,000 to $25,000. This change is significant as it adjusts the financial bar for what constitutes a 'large' contract in the educational sector, potentially impacting how school boards handle their procurement processes.

Contention

The bill also notates that it would incur a 'new or increased expenditure of local funds', which typically necessitates approval from affected local governmental entities or a two-thirds vote in the legislature for such financial impacts to take effect. However, it claims an exception under the Constitution of Alabama, allowing SB36 to bypass these requirements. This aspect has raised concerns among some lawmakers who believe it undermines the checks and balances typically associated with financial decisions that affect local jurisdictions.