On Tuesday afternoon, the Alabama Legislature will consider HB 341 on the floor of the Alabama House of Representatives. Sponsored by Rep. Steve McMillan (R-Bay Minette), this legislation will fix a long standing issue that has allowed unlicensed, uninsured contractors to take advantage of unsuspecting Alabamians for years and created an uneven playing field for professional tradespeople.
Each year, the Home Builders Licensure Board (HBLB) receives over 400 consumer complaints for jobs below $10,000. Because those jobs fall below the current $10,000 threshold, those consumers are left with no recourse outside of the courts and no consumer protections from the state. If you extrapolate that out over the 25 years that the HBLB has existed, more than 10,000 consumers in Alabama have been left holding the bag when abused by unlicensed contractors. That number would pale in comparison to the number of issues that are never reported because the consumer knows that their problems exist in the no man's land that is void of consumer protections.
Under the provisions of HB 341, these consumers will be afforded the protections that have long been absent. Whether the job is renovating a kitchen or replacing a roof, consumers will have their investments protected by requiring that the contractor hold a limited home builder license and a bond. By requiring the contractor to be licensed, the state will be able to discipline a contractor for incompetence and call the bond to make the consumer whole. This is key to the long-term goal of expanding consumer protection in our great state.
What of those smaller contractors? They will benefit as well. Although they will be required to obtain a license, they will not be required to take a test. Instead, they will register with the board and pay a minimal annual fee of $130-$150. They will be required to obtain a $10,000 bond that will cost around $100 annually. That's the most painful part of this act. How will they benefit? They will have a level, fair playing field where the unscrupulous contractors will be ferreted out. Further, the HBLB will create an alternative path to licensure for those contracts as well. Under their plan, if these contractors keep a clean record and complete a prescribed series of courses, they will be deemed to have shown competency and will be able to apply for a full license without having to take the exam. This will allow more trade people to expand their opportunities and grow their businesses.
Looking forward, this legislation will permit Alabama to protect consumers from fraud during times of natural disaster. Many times we have seen natural disasters followed by the arrival of unqualified, ill-intentioned individuals seeking to take advantage of people in emotionally charged times. This law will stop this second wave of disaster from befalling Alabama's consumers. Alabama families should know that roofers and remodelers dealing with water damage, structural deficiencies, and general repairs aimed at helping those families return to normal after a disaster are qualified and licensed.
This is the primary focus of this legislation. Although there are other changes that deal with the daily operation of the board, the focus has always been on helping Alabama's consumers without beating up on small business owners working in construction. All efforts have been made to ensure that all parts of the industry are on board with these changes. Special care was taken to ensure that realtors doing property management are unaffected by these changes, as is the owner/occupant of a home. The insurance industry has long sought these changes in an effort to promote better repairs after disaster, which in turn will help with insurance rates. That's why the insurance industry are actively supporting and promoting this legislation.
We call on the members of the Alabama House of Representatives to stand with us in standing up for Alabama's consumers and contractors on Tuesday. We ask that they VOTE YES on HB 341. | 
