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AL HB188
Bill
Status
3/22/2023
Primary Sponsor
Chip Brown
Click for details
AI Summary
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Prohibits state and local governmental agencies from considering environmental, social, and governance (ESG) criteria when awarding public contracts valued at $100,000 or more.
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Defines ESG criteria to include environmental standards (energy efficiency, carbon footprint, waste management), social standards (diversity, racial justice, pay equity), and governance standards (board diversity, executive compensation, political contributions).
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Requires bidders to certify under penalty of perjury that employees will not be subject to personal ESG ratings based on lifestyle choices including dietary choices, energy usage, transportation habits, recycling habits, and personal contributions to social justice issues.
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Becomes effective on the first day of the third month following passage and approval by the Governor, or upon otherwise becoming law.
Legislative Description
Relating to public contracts; to prohibit the consideration of environmental, social, and governance (ESG) criteria when awarding a public contract; and to require a responsible bidder, as a condition of being awarded a public contract, to certify, under penalty of perjury, that its employees will not be subject to a personal ESG rating as a basis of hiring, firing, or evaluation.
Public contracts; ESG criteria prohibited in public contract.
Last Action
Indefinitely Postpone
5/31/2023