SB 325

SB325 ENROLLED
1 SB325
2 MS2QZ1H-3
3 By Senator Singleton
4 RFD: Fiscal Responsibility and Economic Development
5 First Read: 25-Feb-26
  Page 0
  SB325 Enrolled
1 Enrolled, An Act,
2
3
4Relating to the Department of Commerce; to amend
5 Sections 41-29-282 and 41-4-126, Code of Alabama 1975, to
6 provide that the Alabama Industrial Development Training
7 Institute (AIDT) within the Department of Commerce is exempt
8 from the state procurement law and review by the Contract
9 Review Permanent Legislative Oversight Committee.
10 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
11Section 1. Sections 41-29-282 and 41-4-126, Code of
12 Alabama 1975, are amended to read as follows:
13"§41-29-282
14(a) AIDT shall operate as a division of the Department
15 of Commerce. All of the powers, authority, duties, functions,
16 policies, and funds of, and appropriations to AIDT previously
17 conferred upon or granted to AIDT reporting to the State Board
18 of Education through the Division of Vocational-Technical
19 Education or by Alabama Executive Order No. 2012-31 are
20 confirmed, ratified, continued, transferred to, and vested in
21 AIDT.
22(b) All contracts, leases, grants, and agreements
23 previously entered by AIDT shall continue in full force and
24 effect without modification or interruption by this
25 restructuring. AIDT may enter into new contracts, agreements,
26 and other instruments necessary to procure goods, services,
27 training, and related resources in furtherance of its purpose,
28 as set forth in Section 41-29-280, and shall be exempt from
  Page 1
  SB325 Enrolled
29 Chapter 2 of Title 29, relating to Permanent Legislative
30 Committees, including the Contract Review Legislative
31 Oversight Committee.
32(c) All property currently owned by AIDT shall continue
33 to be the property of AIDT. If AIDT plans to construct any new
34 building, retrofit or renovate any of its existing buildings,
35 or request or receive any state or federal funding to
36 construct, retrofit, or renovate any of its buildings, the
37 AIDT director shall first certify to a the Governor that the
38 proposal is consistent with the Strategic Workforce Plan.
39(d) AIDT shall continue to be headed by a director, who
40 shall be appointed by the Secretary of Commerce and shall
41 serve at his or her pleasure. The powers, duties, and
42 qualifications required of the director shall be as set forth
43 in the AIDT Policy Manual, as amended from time to time and
44 approved by the Secretary of Commerce."
45"§41-4-126
46(a) Unless otherwise ordered by rule, with approval of
47 the Governor, the following supplies and services need not be
48 procured through the Division of Procurement and are exempt
49 from the competitive requirements of this article:
50(1) Works of art for museum and public display.
51(2) Published books in any format such as digital,
52 audio, or hardcopy; maps; periodicals; and technical
53 pamphlets.
54(3) Utility services where no competition exists or
55 where rates are fixed by law.
56(4) Purchases of alcoholic beverages by the Alcoholic
  Page 2
  SB325 Enrolled
57 Beverage Control Board.
58(5) Purchases of products made or manufactured by the
59 blind or visually handicapped under the direction or
60 supervision of the Alabama Institute for Deaf and Blind in
61 accordance with Chapter 2 of Title 21.
62(6) Photographs purchased from a federal agency.
63(7) Barter transactions by the Department of
64 Corrections.
65(8) The purchase of insurance and supplies or services
66 related to the purchase of insurance.
67(9) Supplies and services that by their very nature are
68 impossible to award by competitive process, as determined by
69 the Chief Procurement Officer.
70(10) The procurement of goods, services, training, and
71 other related resources that are directly related to or for
72 the benefit of a company with which the Department of Commerce
73 or the Alabama Industrial Development Training Institute
74 (AIDT) has executed an economic development project agreement.
75 The Chief Procurement Officer, on request, may determine in
76 writing whether a procurement is eligible for this exemption.
77 AIDT shall make annual written reports to the Chief
78 Procurement Officer of all procurements performed under this
79 subdivision. In addition, the Chief Procurement Officer may
80 request periodic reports on all procurements performed under
81 this subdivision at any time.
82(b) Any state department or agency whose principal
83 business is honorariums is exempted from this chapter on
84 purchases and contracts for services made by that department
  Page 3
  SB325 Enrolled
85 or agency.
86(c) Nothing in this article is intended to repeal or
87 limit any provision of Section 23-1-40 or Article 5 or Article
88 6 of Chapter 2 of Title 23, commencing with Section 23-2-140,
89 relating to the procurement authority of the State Department
90 of Transportation and the Alabama Toll Road, Bridge and Tunnel
91 Authority. To the extent any provision contained in this
92 article conflicts with Section 23-1-40 or Article 5 or Article
93 6 of Chapter 2 of Title 23, the latter governs.
94(d) Nothing in this article repeals or limits any
95 provision of Section 41-4-400, relating to the procurement
96 authority of the Division of Construction Management. To the
97 extent any provision contained in this article conflicts with
98 Section 41-4-400, the latter governs.
99(e) Nothing in this article repeals or limits any
100 provision of Section 14-7-8, relating to the procurement
101 authority of Alabama Correctional Industries. To the extent
102 any provision contained in this article conflicts with Section
103 14-7-8, the latter governs.
104(f) This article does not apply to any state authority,
105 board, or other entity with respect to contracts relating to
106 the issuance of debt that is required to be repaid from
107 sources other than state funds.
108(g) This article does not apply to direct health care
109 services provided by the Alabama Department of Public Health.
110(h) Nothing in this article applies to the
111 administration of health benefit plans by a governmental body
112 and supplies or services related thereto.
  Page 4
  SB325 Enrolled
113(i) Except for capital equipment, this article does not
114 apply to the purchase by a public hospital of medical
115 products, medical supplies, medical devices, services,
116 implants, pharmaceuticals, fluids, gases, or any other medical
117 products which are used in the course of treating patients, or
118 to support the treatment of patients.
119(j)(1) Except as provided in subdivision (2), the
120 purchase of supplies or services negotiated on behalf of
121 two-year and four-year colleges and universities may be
122 awarded without competitive bidding, provided that no state
123 revenues, appropriations, or other state funds are expended or
124 committed and when it is determined by the respective board
125 that financial benefits will accrue to the institution.
126(2) When an Alabama business entity organized under the
127 laws of this state is available to supply the product or
128 service purchased or negotiated under subdivision (1), the
129 Alabama business entity shall have preference unless the
130 product or service supplied by a foreign corporation is
131 substantially different or superior to the product or service
132 supplied by the Alabama business entity.
133(3) Public notice shall be provided by the purchasing
134 agency within 10 days of the execution of a contract under
135 this subsection. The public notice shall include, at a
136 minimum, the terms and conditions of any of the supplies or
137 services that are contracted through negotiation without being
138 competitively bid and the name and address of the recipient of
139 the contract.
140(k) This article does not apply to purchases and
  Page 5
  SB325 Enrolled
141 contracts for the repair of equipment used in the construction
142 and maintenance of highways by the Department of
143 Transportation.
144(l) This article does not apply to public works
145 projects governed by Title 39.
146(m) This article does not apply to the purchase by the
147 Department of Transportation of road building materials for
148 transportation infrastructure in the state. Road building
149 materials may be purchased from private land owners or
150 commercial providers from the nearest or most cost-effective
151 source available for the particular application. Road building
152 materials include dirt, gravel, stone, slag, or borrow
153 materials, in natural state or processed by crushing, grading,
154 or screening processes.
155(n) This article does not apply to purchases of
156 supplies and services for the maintenance and operation of
157 highway infrastructure and right-of-way by the Department of
158 Transportation.
159(o) Nothing in this article is intended to repeal or
160 limit any provision of Article 2, Chapter 1, Title 23,
161 relating to the powers and authority of the Department of
162 Transportation. To the extent any provision contained in this
163 article conflicts with Article 2, Chapter 1, Title 23, the
164 latter governs.
165(p) Governmental bodies may purchase supplies from any
166 vendor that offers the item at a price at least ten percent
167 below the price established on a statewide contract by the
168 Division of Procurement for the same item, provided that each
  Page 6
  SB325 Enrolled
169 purchase, whether for a single item or multiple items, does
170 not exceed an amount established by rules of the Chief
171 Procurement Officer. The Division of Procurement shall confirm
172 that the terms and conditions of the purchases are
173 substantially similar to those of the statewide contract for
174 the same item prior to the approval of any purchase under this
175 subsection. Any purchase that would be directly connected to
176 any information technology network used by the state shall
177 require prior approval by the Secretary of Information
178 Technology. If the purchaser is to take possession of the
179 purchased supplies at the vendor's physical location, any
180 acquisition of supplies under this subsection may be purchased
181 only from vendors physically located within the state. The
182 price of any supplies purchased under this subsection shall be
183 the market price readily available to the public at large. The
184 acquisition of supplies under this subsection is subject to
185 the supervision and administration of the Division of
186 Procurement.
187(q) Nothing in this article is intended to repeal or
188 limit any provision of Chapter 61E of Title 16, relating to
189 the powers and authority of the Department of Education to
190 enter into joint purchasing agreements on behalf of
191 educational institutions. To the extent any provision
192 contained in this article conflicts with Chapter 61E of Title
193 16, the latter governs.
194(r) Nothing in this article shall be construed as
195 repealing Section 9-2-106 or Section 9-2-107.
196(s) This article does not apply to purchases by the
  Page 7
  SB325 Enrolled
197 Alabama Department of Rehabilitation Services of supplies and
198 services for the Alabama Department of Rehabilitation Services
199 consumers.
200(t) This article does not apply to the Alabama Medicaid
201 Agency for purposes of the selection of professional service
202 providers for contracts with physicians, pharmacists,
203 dentists, optometrists, opticians, nurses, and other health
204 professionals which involve only service on agency task
205 forces, boards, or committees."
206Section 2. This act shall become effective on October
207 1, 2026.
  Page 8
  SB325 Enrolled
208
209
210
211
212
213
214________________________________________________
215President and Presiding Officer of the Senate
216
217
218
219________________________________________________
220Speaker of the House of Representatives
221
222
223 SB325
224 Senate 17-Mar-26
225 I hereby certify that the within Act originated in and passed
226 the Senate, as amended.
227
228Patrick Harris,
229Secretary.
230
231
232
233
234 House of Representatives
235 Passed: 08-Apr-26
236
237
238
239
240 By: Senator Singleton
  Page 9