HBAA Legislative Alert
McMillan/Livingston Sponsor HBLB Bills
Representative Steve McMillan (R-Bay Minette) and Senator Steve Livingston (R-Scottsboro) introduced companion versions of the HBAA-backed legislation that revises the home builders licensure law in Alabama on Thursday.  House Bill 341 is scheduled to be in the House Boards, Agencies, and Commissions Committee next Wednesday.  Senate Bill 268 has been assigned to the Senate Committee on Fiscal Responsibility and Economic Development. 

Under the provisions of the legislation, the threshold for licensure will be reduced from $10,000 to $1,000.  By making the reduction, the board can provide additional consumer protections on smaller home improvement jobs and, in particular, roofing contractors.   There has been a push by the insurance industry over the past several years to increase regulatory oversight on roofers due to frequent storm related issues that are often attributed to improper installation.  By lowering the threshold the board will be able to exert some regulatory influence, while not exposing the roofing community to undue burdens associated with licensing.

Under the HBLB plan, individuals licensed for those jobs under $10,000 will apply to the board and provide a bond rather than having access to the recovery fund.  No testing will be required for these individuals who obtain this limited license, but they will be held to the same professional standards of those contractors working in the area over $10,000.  Further, the measure will allow the board to propose alternative paths to licensure such as required course work and maintaining a clear record for a period of time.  These requirements will be set forth in rules to be determined by the board at a later date. 

The bill also requires disclosure if the structure is certified to an above code program.  This allows the builder and consumer to take advantage of state-recognized above code programs that offer insurance discounts and, in some cases, grant funding for upgrades.  Compliance with programs such as the IBHS Fortified Homes program lead to greatly reduced insurance rates for consumers.

Further, the bill will allow the board to require proof of insurance as a part of licensure.  By adopting this permissive language, the board may require proof, but may also roll back those requirements in times when the insurance is exorbitantly expensive or is difficult to obtain.   This measure helps to level the playing field among contractors while expanding consumer protections for which the board was established.

The HBAA would like to thank Rep. McMillan and Sen. Livingston for their leadership in helping to advance this legislation.  The HBAA will be working closely with Rep. McMillan over the next few days to gain committee support and a favorable report from its members.
Ledbetter Elected Majority Leader in the House
The Republican Caucus this week elected Rep. Nathaniel Ledbetter (R-Rainsville) House Majority Leader.  As majority leader, Rep. Ledbetter holds an honored title seldom entrusted to a first-term legislator.  The fact that the caucus extended this opportunity to him shows their belief in his leadership skills and his ability to pull together the various factions within the group.  The HBAA is proud for the mayor turned legislator and wishes him the best in his new position.
Land Surveyors Wary of E&LS Board Actions
The Alabama Society of Professional Land Surveyors' have raised a red flag over recent actions by the Alabama Board of Engineers and Land Surveyors actions to avoid potential anti-trust lawsuits by having the legislature deem any action they take as being inherently non-anti-trust.  Although the board is taking action it feels is necessary to avoid potential issues and Federal Trade Commission (FTC) concerns, many in the land surveying industry feel that rules such as one that requires surveyors to provide prospective clients with a list of qualifications prior to being able to discuss pricing is outside the boards' statutory authority.   Administrative code section 330-X-14-.05 reads:
 
"(f) The engineer or land surveyor shall not participate in or implement procurement practices (bid submittals) which do not first determine the qualifications of the engineer or land surveyor prior to entering into fee negotiations for services being sought. An engineer or land surveyor having submitted a statement of qualification and performance data, and having first been judged as the qualified individual or firm to provide the services required for the proposed project, may proceed to negotiate a contract with a client and establish compensation or fees for the required services.

Should the engineer or land surveyor be unable to negotiate a satisfactory contract with the client for any reason, the engineer or land surveyor shall withdraw from further consideration for the engineering or land surveying services. Another engineer or land surveyor may then be selected for negotiations of a contract for the services on the stated project.

Examples include but are not limited to, simultaneous negotiations or solicitation of fee proposals by the client from two or more engineers or land surveyors constitutes "bidding" and participation by a licensee is prohibited."

Many in the surveying industry feel that this section alone may rise to the level meriting review by the FTC and that passing a law that provides blanket protections to the board is unwise.

This issue is continuing to develop.  The HBAA will be meeting with surveyors to determine how best to move forward without sacrificing consumer protections or needlessly invading the business practices of industry participants. 
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