The HBAA is proud to report that HB 179 (Williams, Birmingham) passed the Senate on Thursday and is now awaiting the Governor's signature.  The passage of this bill, which puts an end to the "inventory tax" on new homes and lots, marks the end of a multi-year effort. 

Below are the significant changes the bill makes:

• Reduces the tax rate on new homes by 50% for two years from the point construction begins.
• Reduces the tax rate on lots (fully developed at the time of passage) by 50% for the next two tax years only.
• Allows a homeowner whose house has been destroyed or damaged to maintain his homestead exemption for up to two years during reconstruction with an additional two year extension if necessary.

Senator Roger Bedford (Russellville) selected HB 179 as his pick to be placed on Thursday's Senate calendar.  The Senate had agreed to "play ball" and allow every Senator one bill for the special order calendar.  The HBAA would like to thank Senator Bedford for his efforts to pass this major legislation and for his ongoing support for the housing industry.

Representative Jack Williams has introduced this legislation on behalf of the HBAA for the past seven years and until this year, the bill never got out of committee.  Despite this fact, Rep. Williams never gave up and never gave in.  This week, all of his efforts finally paid off.  The HBAA would like to thank Representative Williams for his constant support for the home building industry and of the HBAA.  Without all of his hard work and leadership, this issue would not yet be resolved.

Bills that would reduce the right of redemption period on property died this week without coming before either chamber.  Although modified by the HBAA, the bill would have reduced the redemption period on owner-occupied homes and commercial property from one year to ninety days.  Many legislators expressed concern with such a drastic reduction in the time for redemption.  Others expressed to the HBAA that such an effort would have been exceedingly unfair to homeowners who had lost their homes in the recent storms.  All of the concerns helped prevent the bills from receiving a vote. 

Despite the fact that the issue is dead for this session, it is understood that the banking industry will make bold efforts to push the bills again in next year's session.  The HBAA will continue to oppose any effort that would reduce the redemptive period.

Senate Bill 395 (Brooks, Mobile) passed the House on Thursday and is awaiting signature by the Governor.  The bill creates a tax deduction for individuals who install wind resistant features into their homes.   

 Originally drafted to cover windstorm areas in Baldwin and Mobile Counties, the bill drafted by Senator Brooks was the culmination of more than five years of research and work in trying to find ways to improve the insurance situation in coastal Alabama.  The bill was expanded to apply statewide following the devastating tornadoes that ripped across northern Alabama.  Senator Gerald Allen of Tuscaloosa offered the substitute at the request of Senator Brooks after working with the HBAA on the language.

 The HBAA would like to thank Senator Brooks for his continuing leadership in addressing the insurance issues along the Gulf and for his willingness to expand his bill to the entire state.  The HBAA would also like to thank Senator Allen for his efforts to promote this above-code incentive bill.  Finally, the HBAA would like to thank Representative Steve McMillan of Bay Minette for getting SB 395 onto the House calendar and serving as floor leader for the bill.

House Speaker Mike Hubbard made good on his promise to pass Tort Reform Tuesday when he directed the House through the fourth tort bill.  House members endured a long afternoon in getting the Product Liability bill and the Expert Witness bill through the Alabama House of Representatives.  Both bills drew opposition, but in the end we prevailed.

The Alabama Civil Justice Reform Committee (ACJRC), of which the HBAA is a founding member and serves on its executive committee, released the following statement from its Chairman, Tom Dart:

 "The Alabama Legislature is to be commended for passing a four-bill tort reform package today that will help protect jobs and foster future economic development in Alabama," said Tom Dart, Chairman of the Alabama Civil Justice Reform Committee.  The bills await Governor Robert Bentley's signature.  

The package includes legislation to reduce the interest rate on money judgments from 12 percent to 7.5 percent, protect Alabama retailers and small businesses from being sued in product liability cases when they were not involved in the manufacture of the defective product, stop forum shopping in wrongful death cases, and stop the use of junk science in Alabama courts by requiring expert witnesses to be held to a higher standard.

"In particular, ACJRC thanks Senate President Pro Tem Del Marsh (R-Anniston) and House Speaker Mike Hubbard (R- Auburn) for their leadership, as well as Judiciary Chairmen Senator Ben Brooks (R- Mobile), Senator Cam Ward (R-Alabaster), and Representative Paul DeMarco (R-Homewood) for their dedication in working with all parties to craft and pass a fair, comprehensive overhaul of the state's civil justice system," Dart said.

"We also want to thank the bills' sponsors for their hard work in explaining and moving the measures through the legislative process, including Senator Clay Scofield (R-Guntersville), Representative Greg Canfield (R-Vestavia Hills), Representative Wes Long (R-Guntersville) and Representative Steve McMillan (R- Bay Minette)," said Dart.

The Legislature approved the immigration bill on Thursday.  The business community was successful in having some of its concerns addressed, but some problems remain.  Although it remains to be seen as to what changes the Governor may seek, the HBAA will continue to work with its business allies to attempt to reduce the negative impacts on HBAA members.