HB157 Alabama 2023 Session

Summary

Primary Sponsor

David FaulknerRepresentative

Republican

Session

Regular Session 2023

Title

Relating to public contracts; to amend Section 39-3-4, Code of Alabama 1975, to provide requirements for the use of iron produced within the United States for certain public works projects under certain conditions.

Summary

HB157 requires iron or steel used in certain Alabama public works projects to be produced in the United States, with a waiver option for emergencies and a price adjustment if the rule is not followed.

What This Bill Does

It requires that public works contracts financed entirely by the State or a political subdivision use iron or steel produced in the United States when the contract specs call for iron or steel and the supply is not limited to a sole source. The awarding authority can waive this requirement if procurement becomes impractical due to national emergencies, strikes, or other causes. If a contractor does not comply with the domestic material requirement, the contract price must be reduced by any realized savings or benefits to the contractor. The act becomes effective on the first day of the third month after it is approved by the Governor.

Who It Affects

• Contractors performing public works projects financed entirely by the State of Alabama or a political subdivision, who must use U.S.-produced iron/steel when required by the contract (unless a sole-source supply is specified).
• Awarding authorities (state or local) responsible for these contracts, who may grant a waiver if domestic procurement is impractical due to emergencies or strikes.

Key Provisions

• Requires iron or steel produced within the United States to be used when specifications require iron or steel and do not limit supply to a sole source under 39-2-2(f).
• Allows the awarding authority to waive the domestic material requirement if procurement becomes impractical due to national emergency, national strike, or other cause.
• Imposes a downward adjustment to the contract price equal to any realized savings or benefits to the contractor if the contractor does not use domestic iron or steel.
• Adds the domestic iron/steel requirement and related waivers/price adjustments to Section 39-3-4 of the Code of Alabama 1975; specifies scope (contracts financed entirely by the State or a subdivision) and effective date (first day of the third month after Governor approval).

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Public works contracts; use of iron made in the United States, required