HBAA Legislative Alert

House Boards and Commissions Committee Approves Home Builders Licensure Bill
The House Committee on Boards, Commissions and Agencies, chaired by Rep. Howard Sanderford (R-Huntsville), gave a favorable report to HB 341 on Tuesday.   Although the measure was approved, there were a number of questions from Rep. David Standridge (R-Hayden) about the scope of the bill and its effect on smaller contractors.  Rep. Steve McMillan (R-Bay Minette), sponsor of the bill, explained that reducing the threshold would not be burdensome to smaller contractors because those working below $10K would not be required to take a test.  McMillan added that contractors would have a regulatory framework that would give them protection from unreasonable homeowners who might seek to abuse contractors with threats of lawsuits and legal actions.  On the flip-side, he went on to state that consumers who have been taken advantage of by these unregulated contractors would have some protections and access to bonds to help offset costs associated with poor workmanship.  Chip Carden and Seth Gowan, both representing the Home Builders Licensure Board, were on hand to speak to those points as well.


Another point made was that this would address a long standing issue insurance companies had with unlicensed roofers.  Passage of this bill would allow the board to provide consumer protection from those fly-by-night contractors who descend on Alabama during times of natural disasters.


The HBAA will be addressing members of the House Black Caucus and Republican Caucus next week to further explain how this bill will expand professionalism within the industry and further the cause of consumer protection. 


Rep. Victor Gaston (R-Mobile) has agreed to add the bill to the House Special Order Calendar when the bill is ready to move forward.  The HBAA hopes to get the bill on the calendar when the House returns from its Spring Break in April.  
 
Transient Tax Bill A Result of HBAA/Revenue Dept. Negotiations
Senate Bill 125 by Senator Tim Melson (R-Florence) represents the results of the HBAA's efforts on behalf of multifamily property owners and the willingness of the Alabama Department of Revenue to compromise.


During the 2016 Regular Session of the Alabama Legislature, the Alabama Department of Revenue came forward with legislation to target transient rentals.  This has become a significant issue with the advent of such services as Airbnb that have traditionally skirted the lodging taxes imposed by the state. 


Last year's definition of transient appeared to grab multifamily housing rentals that fell below 180 days of continuous occupancy.  Although that was not the intent of the Dept. of Revenue, the HBAA asked that they clarify the change.  Working with Attorney Jesse Evans, the HBAA and the Dept. of Revenue were able to reach a compromise over the language by adding a new exemption.  That exemption, which is contained in this year's bill, reads:


"(b) The tax shall not apply to rooms, lodgings, or accommodations supplied: ... ;(iv) pursuant to a residential real estate agreement that creates a leasehold in real property as covered under Chapter 9A of Title 35."
 
The HBAA would like to thank the Alabama Department of Revenue for their efforts to clarify the exemption for multifamily property.  The HBAA would also like to thank Senator Melson for his leadership in bringing this bill forward.  We look forward to working with Senator Melson as this bill moves forward.
NAHB Applauds WOTUS Rollback
As NAHB Chairman Granger MacDonald looked on, President Donald Trump today honored a campaign promise made to home builders and signed an executive order directing EPA and U.S. Army Corps of Engineers to begin the process of rescinding or revising the controversial "Waters of the United States" (WOTUS) rule.


"NAHB commends President Trump for listening to our serious concerns about the flawed WOTUS rule that goes so far as to regulate man-made ditches and isolated ponds on private property," said MacDonald before the signing ceremony. "This is an important first step towards fixing the flawed regulation and working towards a more sensible WOTUS rulemaking."


Speaking at the NAHB Board of Directors meeting in Miami last August, Trump vowed to cut burdensome regulations, including the new WOTUS definitions, that drive up the cost of homes for hard-working Americans.


"No one other than the energy industry is regulated more than the home building industry," Trump said during the Miami meeting. "Twenty-five percent of the cost of a home is due to regulation," he noted, quoting a 2016 NAHB study.


NAHB has led the effort to address industry concerns with the 2015 rule on the regulatory, legislative and judicial fronts. The rule also has been legally challenged by more than 30 states and environmentalists on both procedural and substantive grounds.


The executive order provides EPA and the Corps direction to rework the rule that dramatically extended the areas in which home builders are required to get permits, blatantly usurping state and local regulatory authority. Two courts have already ruled that there is a likelihood that the rule is illegal and have issued a temporary halt.


"NAHB looks forward to working with the Administration, EPA Administrator Scott Pruitt and the Assistant Secretary of the Army for Civil Works, when approved, to develop a common-sense solution to protecting our nation's waterways while taking into account the interests of local businesses and communities nationwide," MacDonald said.
 
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