SB 2672

For local government contracts procured on or after July 1, 2026 , this bill requires a local government w ith centralized purchasing and a full-time purchasing agent to provide a 30 -day local bidding period during which only local businesses may bid for any contract exceeding $25,000 . For a local government w ithout centralized purchasing or a full-time purchasing agent , such local government must provide a 30 -day local bidding period during which only local businesses may bid for any contract exceeding $50,000. As used in this bill, a "local business"" means a business, either for-profit or nonprofit, that meets all of the following criteria:  Has a physical office in the county in which the local government has made a request for bids on a contract for at least 12 months prior to bidding on the contract .  Employs residents of such county .  Is registered to do business in this state . AWARDING A CONTRACT If, during the local bidding period as described above, two or more local businesses submit bids, then this bill authorizes the local government to tentatively award the contract to the lowest responsible and responsive local bidder upon a written determination that the bidder is qualified to execute the contract and that the bid is fair and reasonable in price and quality. Further, if, during the local bidding period as described above, only one local business submits a bid, the local government is not r equired to award the contract at that time and must open the procurement to bids from any responsive bidder after the local bidding period . The local business that submitted a bid during the local bidding period remains eligible for award and must be evaluated on the same terms and conditions as all other bidders qualified to execute the contract. As used in this paragraph, "" q ualified to execute the contract"" means a determination by the local government that the local business meets all of the following criteria:  Is properly licensed, bonded, and insured as required by law .  Demonstrates the financial capacity, technical ability, and experience necessary to perform the contract .  Has not been suspended by another governmental entity from public contracting .  Has a satisfactory record of integrity, compliance, and past performance, if applicable. OUT-OF-COUNTY BIDDERS If an out-of-county bidder submits a bid after the local bidding period that is lower than the local bid, then this bill authorizes a local business that was tentatively awarded the contract under this bill, if any, to submit a bid, within 10 days of the award, to match the out-of-county bidder's bid, and the local government must award the contract to the local business upon matching the bid. Further, a n out-of-county bidder does not qualify as a local business by (i) c reating a shell office in the count y, ( ii ) t emporarily relocating to the county, or (iii ) u sing a front company located in the county. COMPLIANCE WITH FEDERAL AND CONSTITUTIONAL LAW This bill clarifies that a local government must apply the requirements of this bill in a manner consistent with federal grant requirements, f ederal procurement law, and i nterstate commerce protections. Contracts funded by federal dollars must follow federal rules but must include local participation to the maximum extent permitted. ANNUAL REPORT This bill requires e ach local government to annually report to the department of labor and workforce development t he percentage of contracts awarded to local businesses, the total dollars retained in-county, and j ob creation impacts."