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HB312 Alabama 2012 Session

Updated Feb 27, 2026
Notable

Summary

Session
Regular Session 2012
Title
State contracts, performance of work outside the United States, prohibited
Summary

HB312 would bar state contracts from outsourcing work overseas and require bids to be performed in the United States, with enforcement and penalties for violations.

What This Bill Does

If passed, the bill would prevent state agencies and certain local governments that receive state funding from awarding contracts to anyone who performs the work outside the United States (Alabama State Docks are exempt). Vendors would have to certify that the services will be performed in the United States. If a contractor shifts work overseas during a contract, the agency could demand damages equal to what it paid for the outsourced portion, terminate the contract, and pursue enforcement in court, with the possibility of recovering attorney's fees. The act would take effect on the first day of the third month after passage and governor approval.

Who It Affects
  • State agencies and departments (and counties/cities receiving state funding) would be restricted from awarding contracts to vendors that perform work outside the United States and would be responsible for enforcing the rule.
  • Contractors and subcontractors that provide services under these state contracts would be required to perform the work in the United States, certify where the work will be performed, and face damages, contract termination, and potential civil enforcement if they move work overseas.
Key Provisions
  • Provision 1: Prohibits awarding state contracts and contracts for cities/counties receiving state funding to contractors or subcontractors that perform work outside the United States; Alabama State Docks are exempt.
  • Provision 2: Requires bidders to certify that services will be performed in the United States; allows damages and contract termination if outsourced work occurs, and authorizes civil enforcement with attorney's fees; establishes the act's effective date.
AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects
Contracts

Bill Actions

Read for the first time and referred to the House of Representatives committee on Commerce and Small Business

Bill Text

Documents

Source: Alabama Legislature