Court Rules Bid Preference Law is Unconstitutional

An Arizona court has ruled that a City of Tucson ordinance granting local businesses a 5% bid preference is unconstitutional. 

Unconstitutional:  In response to a lawsuit filed against the program, on November 25, 2014, Pima County Superior Court Judge Gus Aragon struck down the City's ordinance as a violation of the Arizona Constitution (Gifts clause and the Equal Privileges and Immunities clause) and the United States Constitution (Federal Equal Protection clause and the Privileges and Immunities clause). 

Appeal by City?  At their meeting of December 9, 2014, the Tucson City Council will consider whether to file an appeal to the decision, or to modify the ordinance.

Additional information:  

• Judge rules Tucson's bid-preference policy unconstitutional, by Darren DaRonco, November 25, 2014, Arizona Daily Star 

• Judge Strikes Down City of Tucson's Local Business Bid Preference Ordinance, November 25, 2014, Press Release from the Goldwater Institute 

• Hirshman v. Rothschild (Bid Preference Suit), February 6, 2014, from the Goldwater Institute

Popularity of bid preference laws:  Many state and local jurisdictions across the county have adopted local bid preference laws.  The ruling in Arizona points out some of the constitutional problems associated with such programs. Click here to read some of the other blogs I've written about local bid preferences.

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