The 2013 Session of the Georgia General Assembly ended just before midnight on March 28. This session brought a lot of challenges, mainly due to the heavy turnover in the House and Senate that occurred during the 2012 elections. HBAG and its' Government Affairs Committee worked diligently and weekly during the session to assure that the many bills affecting the industry were addressed. The following is a wrap-up of the major bills HBAG followed. Since there were a number of issues, this report will only include the most pertinent. Please contact Suzanne Williams at swilliams@hbag.org or by cell phone at (404) 216-4495.

HB 188 - On April 8, Governor Nathan Deal signed HB 188, known as the Veterans Licensure Bill, into law. In an effort to facilitate the transition back to the civilian workforce, this legislation aims to expedite the licensure process for select in-demand occupations for Georgia's returning veterans. The new law creates a working committee that will determine whether or not waivers should be provided for veterans based on their military skills, training, and testing for the following licenses: Electrical Contractor Class I, Journeyman Plumber, Condition Air Contractor Class I, Residential-Light Commercial Contractor, and Utility Foreman. The working group will be comprised of the division director of the Licensing Boards, members of the relevant boards, and members of the Governor's Workforce Development. The committee will also determine whether veterans' spouses will be able to obtain a license in these five areas if they currently hold a license from another state. This bill allows contractor members of the various boards to serve on working groups to determine if the veteran's experience and testing are comparable with our states requirements for issuance of a license. The bill does not change requirements for certification; including testing and applying to the board for a license.

HB 434 - This bill deals with Georgia's Lien Law. HB 434 was introduced to address a recent court decision that dealt a very negative blow to the construction industry. The Georgia Court of Appeals ruled that a contractor/subcontractor's general condition costs were not lienable items. The court stated the only lienable items are those actually affixed or attached to the improved piece of real estate. HB 434 levels the playing field for construction providers by stating that contractors/subcontractors have lien rights for the full amount of the contract for work successfully completed that is owed and due. While the Associated General Contractors Georgia Branch took the lead on this legislation, HBAG had a major part in moving the bill to the governor's desk.

HB 301 - This is the Roofing Contractors Licensure Bill. The goal of this legislation is to create the Division of Roofing Contractors within the State Construction industry Licensing Board. In turn, it would provide for the licensure and regulation of roofing contractors. It would also change the requirements of licensure, and in doing so would prohibit unlicensed performance of roofing contracting. This bill was introduced on behalf of the Georgia Roofing Contractors Association. This bill was withdrawn on the 40th and final day of the session and recommitted.

HB 142 - This is "The Ethics Bill" introduced by Speaker David Ralston and signed into law by Governor Nathan Deal. After several years of discussions and many hours of negotiations, the legislature finally came to an agreement on ethics reform. The main points that were agreed to were; an individual does not have to register as a lobbyist (currently $300) if he or she communicates personal views, interests, or personal opinions to any public officer and an individual does not have to register if they are not paid to lobby and do it no more than 5 days in a year. If an individual is invited to appear before a committee and clearly identifies the interested party on whose behalf he or she is testifying, they do not have to register. This bill, as written and signed into law, has brought up many questions and concerns. Expect to see changes addressed and made during the 2014 Session.

HB 160 - This bill dealing with foreclosure registry expands the scope of property that a city may include in its vacant property or foreclosure registry. This bill allows a city to require registration of unimproved real property, in addition to improved real property. The bill also aims to prohibit a transfer fee for a future conveyance except under limited circumstances through a new code section. The current fee must be paid by the developer each time a piece of that property is sold. HB 160 also amends the current vacant and foreclosed property registry by requiring the deed under power (foreclosure deed), or about to be foreclosed on, be filed within 60 days of the foreclosure sale or transfer of the deed in lieu of.

HB 175 - The intent of this bill related to land covenants was to put into state law what is common practice based on case law. It seeks to codify existing case law by establishing public policy which states that a covenant runs with the land for no more than 20 years when consideration arises to transfer ownership between the property owner and a third party. This Act shall become effective on July 1, 2013, and shall apply to covenants recorded on or after that date.

Thank you to the members of HBAG's Government Affairs Committee who took time out of their busy days on a weekly basis to meet and review a huge amount of legislation. Without the committee's involvement and HBAG's tremendous grass roots efforts, HBAG would not be successful under the Gold Dome.

The National Association of Home Builders (NAHB) applauded Sens. Robert Menendez (D- N.J.) and Johnny Isakson (R- Ga.) for introducing bipartisan legislation to encourage residential construction lending, spur job growth and keep the housing and economic recovery on track.

"Sens. Menendez and Isakson know that a robust housing market is vital to generate jobs and maintain a vibrant economy," said NAHB Chairman Rick Judson, a home builder and developer from Charlotte, N.C. "This bill will help builders access the credit they need to construct new homes in a growing number of markets that need and want them."

S. 1002, the Home Building Lending Improvement Act of 2013, would discourage lenders from calling construction loans where payments are current and establish regulatory guidelines to allow the banking industry to restore lending for viable home building projects. 

The legislation to resolve the ongoing credit problems for home builders is similar to House bill H.R. 1255, the Home Construction Lending Regulatory Improvement Act of 2013, which was introduced earlier this year by Reps. Gary Miller (R- Calif.) and Carolyn McCarthy (D-N.Y.).

The nationwide inventory of completed newly built homes is extremely low due to the limited amount of new home construction that took place during the economic recession. During this time, college graduates were forced to move back in with their parents and others doubled or tripled up in residences rather than renting separate apartments. 

It is estimated that roughly 2 million household formations were delayed as a result of recent economic conditions. 

Housing stands ready to serve as an engine of economic job, Judson said, noting that whenever new homes are built, new jobs are created and a permanent source of ongoing revenue for local, state and federal government spring to life.

NAHB estimates that constructing 100 new single-family homes generates more than 300 full-time jobs and $8.9 million in federal, state and local tax revenues.

"With housing and the economy now on the mend, there is pent up demand for homes in many parts of the country," said Judson. "By helping to restore the flow of credit to home builders, S. 1002 will help meet this growing demand, put Americans back to work and strengthen our communities by increasing the property tax base that supports local schools, teachers, police, firefighters and public services."

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