HB48 Alabama 2012 Session

Summary

Primary Sponsor

Juandalynn GivanRepresentative

Democrat

Session

Regular Session 2012

Title

Public contracts, employment, certain percentage preference given to state residents for work performed under construction contract funded by state

Summary

HB48 would require state construction contractors to hire at least 50% Alabama residents for labor on funded projects, with residency language in bid specs and contracts and state approval.

What This Bill Does

It applies to construction contracts funded by state or federal funds, with exceptions when the project is partially funded by USDOT or when federal law forbids residency preferences. Bids and contracts must include language implementing the residency requirement and receive approval from the Director of the Department of Finance; contracts are not valid without this language. If a contractor cannot guarantee 50% Alabama residents due to lack of qualified personnel, the contract must state the percentage the Director believes is possible. The Department of Finance enforces the rule and may adopt implementing regulations. The act becomes effective on the first day of the third month after passage.

Who It Affects

• Contractors performing work on state construction projects funded by state or federal funds (must ensure 50% Alabama resident labor and include residency language in bids/contracts).
• Alabama resident workers on these projects (expected to comprise at least 50% of labor, where possible).
• State agencies issuing construction contracts and the Department of Finance (responsible for approval, enforcement, and rulemaking).
• Bidders/contractors bidding on state construction contracts (must include residency provisions in bid specs or bids may be invalid).

Key Provisions

• Any contractor on a state construction project funded by state or federal funds must ensure at least 50% of labor on the project are bona fide Alabama residents, with exceptions for projects partially funded by USDOT or where federal law prohibits residency preferences.
• State construction contracts must include language implementing the residency requirements in both the bid specification and the contract, and this must be approved by the Director of the Department of Finance; contracts are not valid without this language.
• If a contractor cannot guarantee 50% Alabama resident labor due to a lack of qualified personnel, the contract must specify the percentage that the Director of Finance believes is possible to achieve.
• The Department of Finance will enforce the residency rule, investigate complaints, and may adopt rules to implement the section.
• The act becomes effective on the first day of the third month after its passage and approval by the Governor (or otherwise becoming law).

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