HB442 By Representative McMillan RFD Boards, Agencies and Commissions Rd 1 12-MAR-20

SYNOPSIS: Existing law provides the Home Builders Licensure Board with authority to adopt residential building codes and standards of practices for residential home builders within this state and allows county commissions and municipalities to adopt building laws and codes within their respective jurisdictions.

This bill would create the Alabama Residential Building Code Advisory Council to recommend an Alabama Residential Building Code to be based upon the International Residential Code to be adopted by the Home Builders Licensure Board.

This bill would require counties and municipalities that enforce residential building laws or codes to comply with the minimum standards set by the Alabama Residential Building Code.

This bill would require residential home builders in this state to build, renovate, and repair residences in accordance with the minimum standards set by the Alabama Residential Building Code.

This bill would establish the Alabama Residential Building Code Division within the Home Builders Licensure Board and provide the division would enforce the Alabama Residential Building Code in those areas where a municipality or county does not enforce the code or a local building code.

This bill would establish the Alabama Residential Building Code Fund for use by the Alabama Residential Building Code Division for purposes of administrative operations and implementation of the Alabama Residential Building Code and assisting local governments in the implementation and enforcement of a local building code.

This bill would also allow the Alabama Residential Building Code Division to provide matching funds for grants designed to promote residential building code enforcement operations among local jurisdictions.

A BILL TO BE ENTITLED AN ACT

Relating to home building and home improvement; to amend Section 27-2-39, Code of Alabama 1975, Sections 34-14A-1, 34-14A-2, and 34-14A-12, Code of Alabama 1975, as last amended by Act 2019-482, 2019 Regular Session, and Sections 34-14A-7 and 34-14A-13, Code of Alabama 1975, and Section 2 of Act 2019-482, now appearing as Section 34-14A-20, Code of Alabama 1975; to provide for the adoption of the Alabama Residential Building Code for use in construction, renovation, or repair of residences; to establish the Alabama Residential Building Code Division within the Home Builders Licensure Board; to establish and appropriate funds to the Alabama Residential Building Code Fund for certain uses; and to provide for the issuance of grant funds in certain cases.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:Section 1. Sections 27-2-39, 34-14A-1, 34-14A-2, 34-14A-12, as last amended by Act 2019-482, 2019 Regular Session, 34-14A-7, and 34-14A-13, Code of Alabama 1975, and Section 2 of Act 2019-482, now appearing as Section 34-14A-20, Code of Alabama 1975, are amended to read as follows:

§27-2-39.

"(a) There is created a fund in the State Treasury designated the "Insurance Department Fund" to be used for the operation of the Department of Insurance. Receipts deposited into this fund shall be disbursed only by warrants of the state Comptroller drawn upon the State Treasury on itemized vouchers approved by the Commissioner of Insurance. No funds shall be withdrawn or expended except as budgeted and allotted according to Sections 41-4-80 to 41-4-96, inclusive, and 41-19-1 to 41-19-12, inclusive, and only in amounts as stipulated in the general appropriations act, other appropriation acts, or this section. At the end of each fiscal year, any unencumbered and unexpended balance of up to 25 percent of the amount appropriated for that fiscal year shall not revert to the State General Fund under Section 41-4-93, but shall carry over to the next fiscal year.

"(b) Notwithstanding any other provision of law, the Commissioner of Insurance shall promptly pay all sums, fees, taxes, licenses, renewals, and other miscellaneous charges collected pursuant to Sections 10-4-111, 27-2-16, 27-3-29, 27-4-2, 27-7-7, 27-8-1, 27-8-5, 27-13-5, 27-13-24, 27-13-62, 27-21A-21, 27-34-6, 27-34-36, 27-34-47, and 27-39-6, and 27-39-7, other than those fines, penalties, and deposit requirements collected pursuant to Section 27-3-29, and other than those fees collected pursuant to Chapter 8A of Title 27 for deposit into the Insurance Agents and Brokers Continuing Education Fund, into the State Treasury with 50 45 percent credited to the State General Fund, five percent credited to the Alabama Residential Building Code Fund, and 50 percent credited to the Insurance Department Fund."

§34-14A-1.

"In the interest of the public health, safety, welfare, and consumer protection and to regulate the home building and private residence construction industry, the purpose of this chapter, and the intent of the Legislature in passing it, is to provide for the licensure of those persons who engage in home building, private residence construction, and home improvement industries, including remodeling, and to provide home building standards establish an Alabama Residential Building Code, and to provide guidance, assistance, and support to local jurisdictions in adopting residential building codes and establishing residential permitting and inspection programs, and to support education within the construction trades in the State of Alabama. The Legislature recognizes that the home building and home improvement construction industries are significant industries. Home builders may pose significant Significant harm to the public may result from the provision of when unqualified, incompetent, or dishonest home builders and remodelers provide inadequate, unsafe, or inferior building services by unqualified, incompetent, or dishonest home builders and remodelers. The Legislature finds it necessary to regulate the residential home building and home improvement industries.

§34-14A-2.

"As used in this chapter, the following terms shall have the following meanings, respectively, unless the context clearly indicates otherwise:

"(1) ADVERTISING. Engaging or offering to engage in any acts described in Section 34-14A-8 by the act or practice of offering for sale professional services by promoting those services through print, radio or television media, on billboards, through social media, through promotional sponsorships, on vehicles, by the placement of signs in front of ongoing or completed worksites, and by displaying credentials, including licensure, to perform residential homebuilding.

"(2) APPLICABLE RESIDENTIAL BUILDING CODE. The Alabama Residential Building Code or a local residential building code that meets the minimum standards of the Alabama Residential Building Code which is adopted by the county or municipality, as appropriate, where the construction, renovation, or repairs will take place.

"(1) ADVISORY COUNCIL. The Alabama Construction Trade Advisory Council.

"(2)(3) BOARD. The Home Builders Licensure Board.

"(3)(4) COST OF THE UNDERTAKING. The total cost of the materials, labor, supervision, overhead, and profit.

"(5) COUNCIL. The Alabama Residential Building Code Advisory Council.

"(6) DIVISION. The Alabama Residential Building Code Division.

"(4)(7) HOMEOWNER. A person who owns and resides in or intends to reside in a structure constructed or remodeled by a licensee of the board, or who contracts with a licensee for the purchase, construction, repair, improvement, or reimprovement of a structure to be used as a residence.

"(5)(8) IMPROVEMENT. Any site-built addition or enhancement attached to or detached from a residence or structure for use and enjoyment by the homeowner.

"(6)(9) INACTIVE LICENSE. A license issued at the request of a licensee, or a building official or a building inspector, that is renewable, but that is not currently valid.

"(7)(10) LICENSE. Any license issued by the board pursuant to this chapter.

"(8)(11) LICENSEE. A holder of any license issued pursuant to this chapter.

"(9)(12) PERSON. Any natural person, limited or general partnership, corporation, association, limited liability company, or other legal entity, or any combination thereof.

"(10)(13) QUALIFYING REPRESENTATIVE. The individual designated by a general partnership, limited partnership, corporation, limited liability company, or not-for-profit organization applying for a license who either holds a license individually or meets the experience and ability requirements for licensure, and who is one of the following:

"a. A general partner in the case of any partnership.

"b. An officer in the case of a corporation.

"c. A member in the case of a member-managed limited liability company.

"d. A manager in the case of a manager-managed limited liability company.

"(11)(14) RESIDENCE. A single unit providing complete independent residential living facilities for one or more persons, including permanent provisions for living, sleeping, eating, cooking, and sanitation.

"(12)(15) RESIDENTIAL HOME BUILDER. A person who constructs a residence or structure for sale or who, for a fixed price, commission, fee, or wage, undertakes or offers to undertake the construction or superintending of the construction, or who manages, supervises, assists, or provides consultation to a homeowner regarding the construction or superintending of the construction, of any residence or structure that is not over three floors in height and that does not have more than four residential units, or the repair, improvement, or reimprovement thereof, to be used by another as a residence when the cost of the undertaking exceeds ten thousand dollars ($10,000). Notwithstanding the foregoing, the term includes a residential roofer when the cost of the undertaking exceeds two thousand five hundred dollars ($2,500). Nothing herein shall prevent any person from performing these acts on his or her own residence or on his or her other real estate holdings. Anyone who engages or offers to engage in any acts described in this subdivision, through advertising or otherwise, shall be deemed to have engaged in the business of residential home building.

"(13)(16) RESIDENTIAL ROOFER. A person who installs products or repairs surfaces on the external upper covering of a residence or structure that seals, waterproofs, or weatherproofs the residence or structure.

"(14)(17) STRUCTURE. A residence on a single lot, including a site-built home, a condominium, a duplex or multi-unit residential building consisting of not more than four residential units, or any improvement thereto.

"(15)(18) TRANSACTION. The act of entering into a contract with a licensee to engage in the business of residential home building.

§34-14A-7.

"(a) Any residential home builder who desires to receive a new or renewal license under this chapter shall make and file with the board 30 days prior to the next meeting of the board a written application on a form prescribed by the board. Each applicant shall be a citizen of the United States or, if not a citizen of the United States, a person who is legally present in the United States with appropriate documentation from the federal government. Such application shall be accompanied by the payment of the annual license fee required by the board. After the board accepts the application, the applicant may be examined by the board at its next meeting. The board, in examining the applicant, shall consider the following qualifications of the applicant:

"(1) Experience.

"(2) Ability.

"(3) Character.

"(4) Business-related financial condition.

"a. The board may require a financial statement on a form prescribed by the board and a public records search directly from a credit reporting agency.

"b. The board may require a positive net worth or other evidence of business-related financial condition sufficient to reasonably satisfy the board of the applicant's financial responsibility.

"c. The board may require that business-related judgments, judgment liens, and other perfected liens must be satisfied and released.

"d. Any information obtained by the board pursuant to this subsection relating to the financial condition of an applicant shall not be public information.

"(5) Ability and willingness to serve the public and conserve the public health and safety.

"(6) Any other pertinent information the board may require.

"(b)(1) If the board finds the applicant qualified to engage in residential home building in Alabama, the applicant shall be issued a license. An applicant rejected by the board shall be given an opportunity to be reexamined after a new application has been filed and an additional application fee paid.

"(2) A record shall be made and preserved by the board of each examination and the findings of the board pertaining to the examination. A copy of the record shall be made available to any applicant requesting it upon the payment of a reasonable fee to the board.

"(c) The board, by rule, may require proof of and maintenance of insurance as a qualification for licensure.

"(d) The board, by rule, may establish or adopt, or both, education requirements and may approve, administer, or financially support the program or programs providing residential construction education.

"(e)(1) Each licensee shall notify the board within 10 days after notice of the institution of any criminal prosecution against him or her. The notification shall be in writing, by certified mail, and shall include a copy of the specific charge made together with a copy of the indictment, information, or complaint, affidavit, and warrant making the charges.

"(2) Each licensee shall notify the board in writing by certified mail within 10 days after he or she receives the notice that any criminal verdict has been rendered against him or her, or that a criminal action pending against him or her has been dismissed.

"(f) Each licensee shall utilize a valid written contract when engaging in the business of residential home building.

"(g) Each licensee shall include a valid license number issued by the board on all valid written contracts and in any advertising.

"(g)(h) When any residential home building to be performed will comply with a program designed to enhance the resiliency of the structure beyond the requirements of the applicable building codes, the licensee shall disclose this compliance to the homeowner in writing prior to the commencement of the residential home building.

"(h)(1)(i)(1) Any licensee who desires to receive an inactive license shall make and file with the board a written application for an inactive license on a form prescribed by the board prior to the expiration of his or her current license. The application shall be accompanied by the payment of the annual inactive license fee required by the board. No act for which a license is required may be performed under an inactive license. In the event a person holding a current inactive license applies for a license, he or she may rely upon his or her inactive license as evidence of the experience and ability requirements for licensure under subdivisions (1) and (2) of subsection (a).

"(2) A person holding an expired license who seeks to reactivate his or her license within three years of the date of expiration shall be deemed to have satisfied the experience and ability requirements for licensure if application is made within the three-year time period and all other licensing requirements pursuant to subsection (a) have been met.

"(3) Any building official or building inspector who desires to receive an inactive license shall make and file with the board 30 days prior to the next meeting of the board a written application for an inactive license on a form prescribed by the board. After the board accepts the application, the applicant may be examined by the board at its next board meeting. The board, in examining the applicant, shall consider the following qualifications of the applicant as satisfying the experience and ability requirements for licensure:

"a. That the building inspector is an employee of the United States, the State of Alabama, or any municipality, county, or other political subdivision and, by virtue of that employment, is exempted or prohibited by law from holding a license; and

"b. That the building inspector does any of the following:

"1. Maintains current certification from the Southern Building Code Congress International as one of the following:

"(i) Chief building official.

"(ii) Deputy building official.

"(iii) Building inspector.

"(iv) Housing inspector.

"(v) Design professional.

"(vi) Plan reviewer.

"2. Maintains current certification from the International Code Council as one of the following:

"(i) Certified building official.

"(ii) Building inspector.

"(iii) Residential building inspector.

"(iv) Property maintenance and housing inspector.

"(v) Building plans examiner.

"(vi) Design professional.

"3. Possesses sufficient building qualifications and experience to receive a license, as demonstrated by satisfactory evidence presented to the board.

"(4) In the event a building official or building inspector holding a current inactive license applies for a license, he or she may rely upon his or her inactive license as evidence of the experience and ability requirements for licensure under subdivisions (1) and (2) of subsection (a).

§34-14A-12.

"(a) The board may establish or adopt residential building codes and standards of practice for residential home builders within the state. A residential building code or standard of practice adopted or established by the board does not supersede or otherwise exempt residential home builders from a local building law or code adopted by the governing body of a county or municipality or from a local or general law.

"(a)(1) The board shall adopt the Alabama Residential Building Code based on the International Residential Building Code. The code shall be enforced by local jurisdictions that have permitting and inspection programs for residential construction, renovation, or repairs and adhered to by residential home builders. The code does not supersede or otherwise exempt residential home builders from a local building code adopted by the governing body of a county or municipality as long as the local building code meets the minimum standards of the Alabama Residential Building Code.

"(2) This section shall be the sole statewide statutory authority governing residential construction within this state.

"(3) The Alabama Residential Building Code shall not apply to any agricultural property except for a residence on the property.

"(b) Beginning January 1, 2025, all residences within this state that are constructed, renovated, or repaired, shall be constructed, renovated, or repaired in accordance with the minimum standards set forth in the applicable residential building code. For those residences subject to a mortgage, at time of completion, the mortgagor shall submit to the lender the permit, all inspection reports, and any required certificate of occupancy as proof that the inspections required by the applicable residential building code have been conducted. Nothing herein shall impose any duty or obligation upon a lender to obtain permits and inspection reports, impose liability of any type upon a lender who does or does not obtain permits or inspection reports, or limit the enforceability of the lender's mortgage.

"(b)(c) The county commissions of the several counties may adopt building laws and codes by ordinance which shall apply in the unincorporated areas of the county. The building laws and codes of the county commission shall not apply within any municipal police jurisdiction, in which that municipality is exercising its building laws or codes, without the express consent of the governing body of that municipality. The building laws and codes of the county commission may apply within the corporate limits of any municipality with the express consent of the governing body of the municipality. The county commission may employ building inspectors to see that its laws or codes are not violated and that the plans and specifications for buildings are not in conflict with the ordinances of the county and may exact fees to be paid by the owners of the property inspected.

"(c)(d) Utilizing the same authority and procedures as municipalities pursuant to Sections 11-53A-20 to 11-53A-26, inclusive, the county commission may condemn buildings, parts of buildings, or structures dangerous to the public and prohibit the use thereof and abate the same as a nuisance.

"(d)(e) The county commissions, municipalities, and other public entities may enter into mutual agreements, compacts, and contracts for the administration and enforcement of their respective building laws and codes.

"(f)(1) The Alabama Residential Building Code Division is established within the Home Builders Licensure Board.

"(2) The Alabama Residential Building Code Fund is established within the State Treasury for the use of the division. Receipts deposited into the fund shall be disbursed only by warrants of the state Comptroller drawn upon the State Treasury on itemized vouchers approved by the Executive Director of the board. No funds shall be withdrawn or expended except as budgeted and allotted according to Sections 41-4-80 to 41-4-96, inclusive, and 41-19-1 to 41-19-12, inclusive, and only in amounts as stipulated in the general appropriations act, other appropriation acts, or this section. At the end of each fiscal year, any unencumbered and unexpended balance shall be transferred to the Strengthen Alabama Homes Fund.

"(3)a. The Alabama Residential Building Code Advisory Council is established. The council shall submit a proposed minimum statewide residential building code to the board for adoption as the Alabama Residential Building Code.

"b. The proposed minimum statewide residential building code submitted for adoption shall be based upon a version of the International Residential Code (IRC) published within two code cycles preceding the most recently published version of the IRC and shall include the standards for sealed roof decks and related roof construction standards contained in either the Coastal Construction Code Supplement or the Inland Construction Code Supplement as well as standards related to energy efficiency pertaining to residential construction.

"(4) The council shall consist of 15 members appointed as provided in this section, plus the Commissioner of Insurance and the State Fire Marshal, or their designees. Thirteen members shall be appointed by the Governor, one member shall be selected by the Speaker of the House of Representatives, and one member shall be selected by the President Pro Tempore of the Senate. The 13 members appointed by the Governor shall be residents of the state, and shall be selected on the basis of their representation of the following organizations, industries, entities, and professions:

"a. One member shall represent the Home Builders Licensure Board.

"b. One member shall represent the State Board of Heating, Air Conditioning, and Refrigeration Contractors.

"c. One member shall represent the private, investor-owned, electric utility industry.

"d. One member shall represent the natural gas industry.

"e. One member shall be a licensed professional engineer.

"f. One member shall represent municipalities.

"g. One member shall represent county governments.

"h. One member shall represent the Alabama Council of the American Institute of Architects.

"i. One member shall represent the Home Builders Association of Alabama.

"j. One member shall represent the International Code Council Alabama Chapter, Code Officials of Alabama.

"k. One member shall represent the property and casualty insurance industry.

"l. One member shall represent the State of Alabama Plumbers and Gas Fitters Examining Board.

"m. One member shall represent the rural electric cooperative industry.

"(5) The 13 members appointed by the Governor shall be selected from a list of three candidates provided to the Governor from each entity listed in subdivision (4). Appointments shall be of such a nature as to aid the work of the council and to inspire the highest degree of coordination and cooperation. All members of the council shall be deemed members at-large charged with the responsibility of serving the best interests of the council, the division, the units of local government, and the state. No member shall act as the representative of any particular region, United States congressional district in Alabama, or state legislative district in Alabama.

"(6) The council shall make recommendations with respect to all matters pertaining to the implementation of the Alabama Residential Building Code. When adopted by the board, recommendations of the council shall be administered by the division.

"(7) The membership of the council shall be inclusive and reflect the racial, gender, geographic, cultural, and economic diversity of the state.

"(8) Each of the appointed members of the council shall be selected for a five-year term, the term to begin on the date of appointment of each member. Of the initial appointees, however, the terms of membership shall be as follows:

"a. Three members shall be appointed to serve for one year.

"b. Three members shall be appointed to serve for two years.

"c. Three members shall be appointed to serve for three years.

"d. Three members shall be appointed to serve for four years.

"e. Three members shall be appointed to serve for five years.

"(9) The members of the council shall continue to serve after the expiration of their terms until their successors have been appointed and qualified. Any member may be reappointed to serve on the council.

"(10) Vacancies on the council shall be filled by appointment by the original appointing authority for the unexpired term.

"(g)(1)The first meeting of the council shall be called by the executive director of the board as soon as is practicable after the effective date of the act adding this amendatory language. The executive director shall preside until a chair and a vice chair are selected by the council. The council shall elect annually from its own members a chair, a vice chair, and such other officers as it may deem desirable, and shall adopt rules for its organization in the conduct of its business.

"(2) The council shall hold a regular meeting at least once during each calendar year at a time and place as designated or specified in its rules. Special or additional meetings may be held on the call of the chair, upon the call signed by at least seven members, or upon the call by the board.

"(3) A majority of the members of the council shall constitute a quorum at all of its meetings, and adoption or resolution of any business shall require the concurrence of a majority of all the members of the council. An agenda for the meetings in sufficient detail to indicate the terms on which final action is contemplated shall be submitted by the administrator to the chair, vice chair, and council members prior to the meeting.

"(4) The administrator of the division shall serve as ex officio secretary of the council, shall keep a record of the proceedings of all council meetings, and perform such other duties as may be directed by the council.

"(5) The council may establish committees among its membership, as it deems necessary, to assist in the conduct of its business. Committees shall include representation from suppliers or others interested in the subject matter assigned to the committees, or both.

"(h) All meetings of the council shall be held in accordance with the Alabama Open Meetings Act, Chapter 25A of Title 36. The council shall do the following:

"(1) Propose the adoption of a Alabama Residential Building Code. The council shall consider updates and amendments to the code no less than two years after the date of publication of the most recent version of the code.

"(2) Evaluate, assess, advise, and counsel the division and the units of local government on the Alabama Residential Building Code and the impact of the code upon the economy and the environment.

"(3) Solicit and enlist the cooperation of all appropriate private-sector and community-based organizations to implement the purpose of this section.

"(4) Make recommendations to the division and the board for the enactment of additional legislation as it deems necessary which proposes to further enhance the capabilities of the state and the units of local government in accepting, adopting, implementing, and enforcing the Alabama Residential Building Code.

"(5) Make continuing studies, evaluations, and surveys, on its own initiative or upon the request of the board, of the needs and impacts of the Alabama Residential Building Code to the units of local government, industry, and consumers as may result from its studies.

"(6) Submit to the board, on an annual basis, a written report covering the activities of the council to include annual data of residential construction and permitting and inspection activity.

"(7) Adopt rules for the conduct of the council meetings, procedures, and execution of the purpose, functions, powers, and duties delegated to it by this section.

"(8) Conduct a program of public information in order to inform the units of local government, residential home builders, and the residents of the state on the importance of the residential building code.

"(9) Recommend qualifications and certification for third party fee-based code inspectors.

"(i) The division shall be responsible for taking action upon any and all recommendations made by the council and ratified by the board for the furtherance of its statutory purpose.

"(j) The funds allocated to the Alabama Residential Building Code Fund shall be used by the division for purposes of enforcement of the Alabama Residential Building Code in those areas where a municipality or county does not permit or license residential construction, renovation, or repair including, but not limited to, the following:

"(1) Hiring staff, including, but not limited to, the following:

"a. The division administrator.

"b. Programs support personnel.

"c. Administrative support personnel.

"d. Advisory personnel for purposes of advising the council, division, board staff, and local governments regarding implementation and enforcement of the Alabama Residential Building Code.

"(2) Providing incentives to encourage local residential building code adoption and enforcement including, but not limited to, assisting with the development of local government cooperatives for the permitting, inspection, and enforcement of a residential building code in the respective jurisdiction.

"(3) Providing standards and certification requirements for private fee-based code inspectors, who would perform the required inspections in those local jurisdictions that have not implemented a residential building permit and inspection program.

"(k) Nothing in this section shall be construed to restrict the power of any county or municipality to adopt and enforce local building laws or codes that either comply with or exceed the minimum standards set forth in the Alabama Residential Building Code.

"(l) Neither the council or any municipal, county, or state governing entity or agency may enact or adopt an ordinance, rule, bylaw, order, building code, or other legal device that restricts a consumer's ability to elect to install, by the consumer's choice and for a fee, a residential fire sprinkler system in any residence. The council, any municipal, county, or state governing entity or agency may not enact or adopt an ordinance, rule, bylaw, order, building code, or other legal device that would require the installation of a residential fire sprinkler system in any residence. A municipality that enacted or adopted any ordinance, rule, bylaw, order, building code, or other legal device on or before March 9, 2010, relating to the installation of a residential fire sprinkler system may continue to enforce or amend such ordinance, rule, bylaw, order, building code, or other legal device.

§34-14A-13.

"It is the duty of the building official, or other authority charged with the duty, of issuing building or similar permits, of any incorporated municipality or subdivision of the municipality or county, to refuse to issue a permit for any undertaking which would require a license hereunder unless the applicant has furnished evidence that he or she is either licensed as required by this chapter or is exempt from the requirements of this chapter. The building official, or other authority charged with the duty of issuing building or similar permits, shall report to the board the name and address of any person who, has violated this chapter. When the board becomes aware of residential construction, renovation, or repair that is not properly permitted, the board shall notify the building official of the local jurisdiction in which the residential construction, renovation, or repair was done. Residential construction, renovation, or repair that is not properly permitted shall cease until compliance with the Alabama Residential Building Code and any additional local requirements. Nothing contained herein shall require a builder to pay license fees for subcontractors who will be or were involved in the construction for which the permit is being obtained as a condition of the issuance of a building permit or the issuance of a certificate of occupancy. The builder shall submit to the issuing municipality if requested a list of the subcontractors with correct physical address and phone numbers involved in the construction project within 15 days of the issuance of the building permit. Should the builder add any other subcontractor to the project, the builder will submit the subcontractor's name, address, and phone number to the municipality within three working days of hiring. An updated list of subcontractors shall be furnished by the builder before the issuance of a certificate of occupancy by the municipality.

§34-14A-20.

"(a) The Alabama Construction Trade Academy Fund is established in the State Treasury. The fund shall be comprised of federal, state, and private funding through direct budgetary funding and grants for the expansion of construction trade education. To the extent practicable, monies in the fund shall be used to leverage other forms of funding from private sources. A percentage of matching funds, as established by the advisory council, must come from private, non-governmental sources. The board may not use more than 15 percent of the monies in the fund for administrative and operational costs incurred in the implementation and administration of this section.

"(b) The board, in cooperation with public and private sector partners, shall establish a program to provide funding mechanisms for tool grants, program incentives, supplies, mobile facilities, and other programs to support the development and continuation of construction trade education programs in the state.

"(c) The board shall administer the program and shall may apply for funds from federal grant programs and other applicable funding sources authorized by law.

"(d)(1) The Alabama Construction Trade Advisory Council is established. The advisory council shall consist of the following members:

"a. One member appointed by and currently serving on the Home Builders Licensure Board.

"b. One member appointed by and currently serving on the State of Alabama Plumbers and Gas Fitters Examining Board.

"c. One member appointed by and currently serving on the Licensing Board for General Contractors.

"d. One member appointed by and currently serving on the State Board of Heating, Air Conditioning, and Refrigeration Contractors.

"e. One member appointed by and currently serving on the Alabama Board of Electrical Contractors.

"f. One appointee of the State Department of Education who specializes in technical trade education.

"g. One appointee of the Alabama Community College System who specializes in technical trade education.

"(2) Members of the advisory council shall be appointed for a period of one year. Membership on the advisory council shall be without compensation, except for reimbursement of necessary travel expenses as is paid to state employees for attending meetings and other necessary events of the advisory council. Any expenses paid to a member of the advisory council shall be paid by the member's appointing authority.

"(e) The advisory council shall make recommendations to the board, and the board shall establish program guidelines, promote the program statewide, evaluate applications for funds, distribute funds, and monitor and report the effect of the funding on the availability of construction trade education. The board may adopt rules to implement and administer this section.

"(f) The advisory council shall recommend and the board shall establish monitoring and accountability mechanisms for projects receiving funding. Not later than the fifth legislative day of each regular legislative session, the board shall file a report to the Legislature on the projects funded, the geographic distribution of projects funded, the private sector participation rates in funded projects, the administrative costs of the program, and the outcomes of the program, including the number of students and adult learners trained by each project funded through the program.

"(g) The advisory council shall recommend and the board shall create eligibility guidelines and provide project funding through an application process. Projects eligible for funding include the following:

"(1) Mobile demonstration units that show the various systems of a structure and how they interconnect.

"(2) Tool and supply grants for public and private educational providers that provide construction trade education.

"(3) Incentives for newly established construction trade education courses, with priority given to carpentry courses.

"(4) Adult education initiatives that provide continued learning opportunities through mobile training facilities or distance learning opportunities with priority focus on those serving underserved areas and widely offered trainings.

"(5) Any other proposal that in the opinion of the board would address the need for construction trade education in the state.

"(h) An applicant may be a nonprofit organization, not-for-profit entity, public school system, two-year college, university, or other governmental entity. An applicant for funding shall do all of the following:

"(1) Demonstrate its capacity to successfully implement the proposal.

"(2) Demonstrate how the proposal shall positively impact construction trade education in the state.

"(3) Demonstrate private sector support through matching funding.

"(4) Establish an advisory council consisting of at least three active trade representatives from the construction trade being funded.

"(5) For a period of not less than five years, agree to comply with the following conditions:

"a. Offer the courses funded through this section for a period of not less than five years.

"b. Comply with all data collection and reporting requirements established by the board.

"(i) In determining which qualified projects to fund, the board shall consider all of the following factors:

"(1) The level of private sector support for the project.

"(2) The level of need in the area in which the funding is directed.

"(3) The projected number of students that will be served.

"(4) The degree to which the project will have a positive impact on the availability of construction trade education in the area to be served.

"(5) The degree to which the project will leverage public and private sector funds.

"(j) The board shall establish program guidelines that require matching funds on all funded projects. A minimum of 10 percent of matching funds shall be provided by private, non-governmental sources. Total matching funds required may not be required to exceed 25 percent of awarded state funds, although additional consideration may be provided to projects that exceed this amount.

"(k) In the event that a recipient of funding provided by this section fails to provide the proposed project in accordance with the guidelines set forth by the board, any equipment, supplies, or materials acquired with the funding shall be transferred to the Alabama Home Builders Foundation for redistribution to public or private programs that provide construction trade education to high school, postsecondary, or adult learners supported by this section.

"(l) Any and all proceeds from the sale of equipment, supplies, or materials acquired through academy funding shall go into the fund."

Section 2. There is appropriated to the Home Builders Licensure Board from the Alabama Residential Building Code Fund the sum of $1,600,000 for the fiscal year ending September 30, 2021.

Section 3. This act shall become effective on the first day of the third month following its passage and approval by the Governor, or its otherwise becoming law.

Residential Construction

Counties

Municipalities

Building and Construction

Building Codes

Code Amended