The debate over whether or not a deal had been struck on a two-percent pay raise for teachers raged on in the final days of session. In the end, the Legislature passed the budget without the raise. This set up a show-down between Governor Bentley and the Legislature. The Governor had already made it known that he had an executive amendment drafted and ready to attach to the budgets. This would mean that the budget would return to the Legislature for consideration. To avoid that scenario, as soon as the budget was transmitted to the Governor, both chambers adjourned sine die.

This sudden adjournment caught most people off guard and doomed many bills that were on the calendar for consideration. Among those were the HBAA's HVAC and plumber licensing legislation. Despite the loss of these two bills, the HBAA had tremendous success in passing a number of meaningful legislative measures that will benefit the home building industry.

The HBAA appreciates all the hard work of the sponsors of the HBAA's legislative agenda. Their work was crucial to the success of the bills. If you know any of the legislators who sponsored our agenda this year (see below), be sure to thank them for their support of the home building industry. The HBAA would also like to thank Speaker of the House Mike Hubbard and Speaker Pro Tem Del Marsh for all their support and leadership this session.   

Alabama Homebuyers Initiative - Act # 2014-88

This bill freed up $6 million to be used to offset the cost of private mortgage insurance (PMI) associated with a new home buyer finance program run by the Alabama Housing Finance Authority. It is expected that the new program will generate $300 million in home sales with the first $100 million dedicated to new construction.

Legislative Sponsors: Rep. Mike Hill/Senator Cam Ward

Lot Take-Down Agreements - Awaiting the Governor's Signature

Making lot take-down agreements enforceable is the first step to bringing development financing back to Alabama. With a court ruling that effectively nullified previous agreements, lenders expressed great hesitation to finance land development. This legislation makes these agreements once again enforceable.

Legislative Sponsors: Rep. Chris England / Senator Gerald Allen

Landlord Tenant Revisions - Act # 2014-279

Enactment of this legislation increases the length of time that landlords have to return deposits from 35 days to 60 days. This will allow more time for landlords to process cost of damages a tenant may have caused and to pay back any remaining deposit. This is especially important in college towns where thousands of students are moving out at one time. The bill also gives the courts the ability to consider electric service termination as evidence that a tenant has abandoned the property.

Legislative Sponsors: Rep. Paul Beckman / Senator Del Marsh

Business License Tax / Apartments - Act # 2014-15

This legislation prohibits local governments from charging a business license on each apartment unit in a complex. This forces local governments to return to the fair practice of charging a business license fee on gross receipts or flat fee. This year's effort was streamlined from the previous attempt to get a constitutional amendment.

Sponsors: Rep. Jim Patterson / Senator Vivian Figures

Tax Payers Bill of Rights - Act # 2014-146

The "Tax Payer Bill of Rights" creates an independent tax tribunal to hear appeals of tax assessments issued by the Department of Revenue. Currently, appeals of tax assessments are handled by the department's internal affairs division which tends to be less objective than an independent tribunal.

Sponsors: Rep. Paul DeMarco / Senator Bryan Taylor

Less than a week since the legislature adjourned, the HBAA is already looking ahead to the 2015 session. Here are a few of the items that are expected to be issues next year:

Home Owners Association Legislation

In the final days of the session, HB 137 by Rep. Mack McCutcheon was passed by the House and brought before the Senate Judiciary Committee for a public hearing. Although the bill has been modified significantly, there are a few issues that remain to be addressed. To give the industry time to review the bill and make the appropriate changes, the HBAA committed to work with the sponsor over the summer to develop a consensus bill that will be in position to be introduced in 2015. Other industry groups have taken an interest in the bill as well. Rep. McCutcheon has asked that the HBAA take the lead to bring the groups together and work out the remaining issues.

Coastal Code / Above Code Incentives

The HBAA has been approached about working on possible incentive legislation for wind resistant construction. This is not a new area for the HBAA. In 2011, the HBAA worked closely with Senator Gerald Allen on a tax deduction measure for wind resistance following the tornado outbreak that spring.

Having been sworn into office roughly 30 hours before the Legislature adjourned sine die, Rep. Anthony Johnson holds the title of newest member of the Alabama House of Representatives. Unfortunately, he is also about to be a legislator without a district.

Rep. Johnson was elected to fill the remaining term of long-time house member Rep. Demetrius Newton who passed away last September. After redistricting, the House District 53, which Rep. Johnson now represents, is to be absorbed by two other house districts in the Birmingham-area districts. The House District 53 designation will become a new house seat in Madison County.

Unless a special session is called, Rep. Johnson may be remembered as having served the shortest tenure ever in Alabama's Legislature.