HB61 Alabama 2024 Session

Summary

Primary Sponsor

Chip BrownRepresentative

Republican

Session

Regular Session 2024

Title

Public contracts; ESG criteria prohibited in public contract.

Summary

HB61 would ban the use of ESG criteria and ESG ratings in awarding Alabama public contracts and require bidders to certify their employees will not be subject to personal ESG ratings, effective January 1, 2025.

What This Bill Does

The bill prohibits state or local governments from considering ESG criteria or ESG ratings when awarding public contracts worth $100,000 or more. It also requires the 'responsible bidder' to certify under penalty of perjury that its employees will not be subject to a personal ESG rating as a hiring, firing, or evaluation basis. It provides definitions for terms like Environmental, ESG Criteria, ESG Rating, Personal ESG Rating, Social, and Governance. The act becomes effective January 1, 2025.

Who It Affects

• State or local government awarding authorities: cannot use ESG criteria or ESG ratings in awarding public contracts of $100,000 or more.
• Bidders and their employees: bidders must certify under penalty of perjury that employees will not be subject to personal ESG ratings for hiring/firing/evaluation.

Key Provisions

• Prohibits consideration of ESG criteria or ESG ratings in awarding public contracts valued at $100,000 or more.
• Requires a responsible bidder to certify under penalty of perjury that its employees will not be subject to a personal ESG rating as a basis for hiring, firing, or evaluation.
• Provides definitions for Environmental, ESG Criteria, ESG Rating, Personal ESG Rating, Governance, and Social to clarify terms.
• Establishes the effective date of January 1, 2025.

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

Subjects

State Government