HB 418 — State Licensing Board for General Contractors; minimum cost of undertaking subject to licensure requirements, increased

HB418 INTRODUCEDENROLLED HB418 5SV5M33-15SV5M33-2 By Representatives Kirkland, Underwood RFD:

04-Apr-24 Page 0 5SV5M33-1HB418 04/03/2024Enrolled CMHEnrolled, (L)CMHAn 2024-1348Act, 2Relating 4to SYNOPSIS:the State Licensing Board for General Contractors;

Under existing law, a person who, for a fixed price, commission, fee, or wager, undertakes to construct, superintend, or engage in the construction, alteration, maintenance, repair, rehabilitation, remediation, reclamation, or demolition of any building, highway, sewer, structure, site work, grading, or paving is deemed to have engaged in the business of general contracting if the cost of the undertaking is $50,000 or more.

Also under existing law, a person who engages in the business of general contracting is required to be licensed by the State Licensing Board for General Contractors.

This bill would increase the threshold cost of the undertaking amount to $100,000.

This bill would also exempt from the requirements of obtaining a license from the board a labor broker or other temporary labor provider that provides temporary workers to a licensed contractor to perform work under that licensed contractor.

A BILL TO BE ENTITLED Page 1 HB418 INTRODUCED AN ACT Relating to the State Licensing Board for General Contractors;

(b) For the purpose of this chapter, a "general Page 2 HB418 INTRODUCED contractor" is defined to include one who, for a fixed price, Page 1 HB418 Enrolled commission, fee, or wage exceeding five thousand dollars ($5,000), undertakes to construct, superintend the construction of, repair, or renovate, any swimming pool, and anyone.

(1) The practice of general contracting, as defined in Section 34-8-1, by an authorized representative or representatives of the United States Government, State of Alabama, incorporated town, city, or county in this state, which is under the supervision of a licensed architect or Page 3 HB418 INTRODUCED engineer, provided any work contracted out by the authorized Page 2 HB418 Enrolled representative shall comply with the definition in this chapter for general contractor.

A municipal governing body or municipal regulatory 95 body may not enact any ordinance or law restricting or altering this exemption.

For purposes of this subdivision, the term "emergency" is defined as a situation whereby service to the consumer has been interrupted or may be interrupted if work to remedy the emergency is not performed and completed within 60 days, and Page 4 HB418 INTRODUCED such other situations that are determined to be an emergency Page 3 HB418 Enrolled in the discretion of the board.

(5) The repair, maintenance, replacement, reinstallation, or removal of facilities, equipment, or systems used in or substantially related to the generation, transmission, or distribution of electric power, natural gas, or telecommunications on a routine, regular, or recurring basis by a utility regulated by the Public Service Commission or any entity engaged in the generation, transmission, or distribution of electric power, natural gas, or telecommunications or any of their respective general 95 contractors or subcontractors, provided the work is performed under the supervision of a licensed architect or engineer.

For the purposes of licensing, temporary workers are deemed to fall under the Page 5 HB418 INTRODUCED license of the general contractor to whom they are provided.

Page 4 HB418 Enrolled This exemption does not allow labor brokers or other temporary labor providers to act as subcontractors or to assume a scope of work for a project as a subcontractor.

Page 6 HB418 INTRODUCED (5) A subcontractor is not required to be licensed at Page 5 HB418 Enrolled the time a project is bid, but must be licensed with the board prior to beginning work on the project.

Page 76 HB418 Enrolled ________________________________________________ Speaker of the House of Representatives ________________________________________________ President and Presiding Officer of the Senate House of Representatives I hereby certify that the within Act originated in and was passed by the House 18-Apr-24.

John Treadwell Clerk Senate 02-May-24 Passed Page 7